National Republican. (Washington City (D.C.)) 1872-1888, 1875-03-16

ney General on the status Of the Government as
regards the three-sixty.iv bonds was yesterday
transmitted, through the President, to the sink
ing-fund commissioners.
DEPARTMENT OF JUSTICE,
WASHINGTON, March ID, 1875. :
SIR: You referred to me on the sth instant at
the solicitation Of the Commissioners tor the Dis
trict Of Columbia, a communication addressed to
them by the sinking fund commissioners of the
District, wherein slluson is made to the District
365 bonds in connection with the recent act Of
February 20, 1875, and you also requested my
opinion upon the question presented In that COM
municatiop, namely, as to whether the pledge Of
the faith Of the United States for the payment Of
the principal and interest of these bonds may now
be considered complete, and whether the sinking
fund commissioners would DO justified in using
the words, principal and interest guaranteed
by the United States over the signature Of the
of1eer Of the United States Treasury, by whom
such bonds shall be registered In lieu Of printing
the words of the various laws relating thereto
upon the back of the bonds" ! have the honor to
su limit the following in answer to your request:
The act OF February 20, 1875, amends the seventh
section Of the act Of June 20, 1874 which provides
for the issue Of the bonds mentioned by Inserting
the words do SO" after the fOrteth word follow
ing the tiTst period in said section. This amend
ment supplies by legislative authority in the par
ticular clause to which it relates nothing more
than what was previously necessary to be sup
piled by construction IN order to give the clause
any meaning or effect whatever consistent with
the obvious purpose.
Viewed thus the amendment does not Iutrodues
any modification OF the former law, but simply
renders the meaning thereof more plain and ex-
Hence, the pledge Of the faith Of the United
States is not made any more complete" thereby,
but remains precisely as 1t was before, except
what was then left to be implied in the statute is
new formally expressed therein. Idoubt whether
the Of the words principal and interest guar
snteed by the United States, " in the manner
above suggested, would be justified by the terms
Of the law. The word guaranty" has technical
significance when employed in connection with
contracts and obligations importing "a engage
IN "a oF
debt or the performance Of some duty, In case of
the failure Of third party who, in the first IN
1t is clear that in this sense, the word would not
aptly describe the undertaking of the United
States, which is in the following language:
THE faith Of the United States is hereby
pledged that the United States will, by proper
proportional appropriations, as contemplated in
this act, and BY causing to be levied upon this
property within said District such taxes as will do
so, provide the revenues necessary to pay the in
terest on said bonds as the same may become due
and payable, and create q sinking fund for the
payment of the principal thereof at maturity"
Here the Governmental Of the United States itself
undertakes to provide the revenue necessary to
meet the interest as the same becomes due, and
to create a sinking fund for the payment Of the
principal at the maturity Of the bonds, without
regard to the failure Of any third party. Practl-
cally, however, the pledge given by the United
States, considered in the light of o security NAV
be equivalent to an unqualified guarantee since
the particular means and sources OF revenue BY
and from which the Government promises to pro-
vide for the payment of the interest and princj.
pal are unquestiOnably adequate for that pur
pose.
: But think 1t advisable, in representing the
undertaking Of the Government, to conform as
nearly as possible to the exact terms of the
statute II, then. for the sake of convenience, il
is desirable to set forth the face or back of the
bond the substance Of that undertaking instead
of the words Of the various laws relating there
to-" would suggest the following In place Of
what is proposed by the sinking funk commits
sioners. BY the acts of Congress OF June 20,
1874 and February 20, 1875 1.-THE faith OF the Uni.
ted States is pledged to pay the interest hereon
as the same may become due and payable, and to
provide for the payment Of the principal hereof
Mt maturity"
This form is sufficiently concise, and In nv
judgment describes the obligations Of the Gov
eminent with more accuracy than the form suR-
gested by the commissioners.
I'haye the honor to be, with great respect your
obedient servant, GEO. II. WILLIAMS
Attorney General.