Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1876-11-01
$40 BONDS OF 1862.

~ HAuSh mas pCSh saiu, diIu 50 Illcn
Claimed by many dishonest people,
and others, who are dcluded in refer
ence to the kind of money that the
principal Of the 6 per cent bonds, un-
der the Act Of Feb. 25th, 1862, was to
be paid in, that we are inclined to
give concise history of the issuance
of said bonds. We give below the
following section of the law proyid-
ing for the issue of these bonds:
And be 1t further enacted, That to
enable the Secretary Of the Treasury
to fund the Treasury notes and float
ing debt Of the United States. he is
hereby authorized to issue on the
credit of the United States coupon
bond or registered bonds, to an
amount not exceeding five hundred
million dollars, and redeemable at the
pleasure of the United States after
five years, and payable twenty years
from date, and bearing interest at the
rate OF six per centum per annum.
payable semi-annually i; and the bonds
herein authorized shall be of such
denomination, not less than fifty dol
lars, as may be determined upon by
the Secretary Of the Treasury; and
the Secretary Of the Treasury NAV
dispose of such bonds at any time at
the market value thereof, for lawful
money, the coin of the United States.
or for any of the Treasury notes that
have been, or may hereafter be, issued
under any former act of Congress or
for the United notes that may be is
sued under the provisions Of this
act; and all stocks, bonds. and other
securities of the United States held
by individuals, corporations or asso-
Citations within the United States,
shall be exempt from taxation by or
under State authority.
Section Five of this same Act of
Feb. 25th, 1862, declares that all duties
on imported goods 'sshall be paid in
coin. and the coin SO paid shall be
" set apart as special fund, and APP
spilled as follows: First, to the pay
"mcnt Of interest on bonds and notes
Second, to the purchase or payment
"of one per centum of the entire
"debt of the United States, to be
made within each fiscal year after
july l, 1862, which is to be set apart
"as sinking fund and the interest
cot which shall in like manner be APP
piled to the purchase on payment of
"fhe public debt
Now, it has been claimed that this
Act declared that the principal should
be paid in "lawful money" 1t is
false, no such provision is contained
in such Act,nor even limited at, but on
the contrary, rs above quoted, pro-
vision was made for the payment of
the principal IN coin, collected in
duties. This is clear, incontroverti-
BILE evidence as to what these bonds
were to be paid in. In further proof
of this already well established fact.
let us say that while these bonds were
being negotiated, some inquiry being
made upon this point, as TO how the
principal was to be paid, Secretary
Chase wrote the following letter
which was made public, bearing date
Of August 9Th, 1868:
"All coupon and registered bonds
forming part of the permanent loan
Of the United States, sctH he redeemed |
IN gold. The 500 skies being redeem
able at any time within twenty years
after the lapse of five years, belong 10
the permanent loan."
In the above, Salmon p. Chase,
then Secretary of the Treasury, fully |
explained to his purchasers what
kind of wares he was selling, and he
did not misrepresent them either.
Further, at the time the Secretary
made his ruling, the author of the
bill said:
1T is in exact accordance with my
at the time drew and in
PRODUCED the bill i'm the House. in
January, 1862, and rs / believe it was
FULLY understood by Congress when
~ b"5o''i.
Now, we add to this, this further
Information, that Of the S500,O00O00
issued under the Act Of 1862, there is
now less than 100000 Of them out
They have been either paid
Dr. refunded under other Acts, so that
Ill discussion as to the true meaning
,r Interpretation OF the Act of 1862,
10 really useless. At this time there
. not a bond of the United States,
lbout which it is not perfectly clear
hat it is, under the law and the con-
ract, to be paid in coin. If the ma
ion attempts to pay otherwise, then
t rcpudiates, it violates its plighted
aith.