The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-11-14
HISTORY OF THE $40 BONDS.
(From the N. Y. SIM of Oct. 18th. J

We are asked to cite the law and
the facts for the statement that
the 500 bonds were first made paya
BILE in greenbacks and were subse-
uuently. by act of congress, converted
in coin bonds, III contradiction of the
original contract. The task is simple.
and the subject ought to be fairly
understood. The act Of Feb. 25,
Tender act, authorized the issue OF
one hundred and fifty millions Of
United States notes, and declared as
follows:
''Such notes shall be receivable in
payment Of all taxes. internal duties,
excuses, debts. and demands of every
kind due to the United States, except
on imports, and Of all claims and de-
mands against the United States of
every kind whatsoever, except for
interest upon bonds and notes, which
shall be paid in coin, and shall also be
lawful money in payment of all debts.
public and private, within lie United
States, except duties on imports and
interest as aforesaid.
The function, range and power Of
the grtenhach are thus fully described
as 'lawfnl money" The second Sec
ton Of The same act declares:
THE Secretary of the Treasury IS
hereby authorized to issue, on the
credit of the United States, coupon
bonds. or registered bonds, to an
amount not exceeding five hundred
millions of dollars. redeemable at the
Measure Of the United States after
five years, and payable twenty years
from Gate. and bearing interest at the
rate of 6 per centum per annum' pay
able semi-annually.
Not word in the act refers to the
payment of the principal CT these
bonds, and the first section above
cited clearly shows they were pnr-
chasalle and redeemable in legal ten
ders. But if any doubt existed on
this point, which is no Logger IN dls-
plte, it would be removed by the fifth
section, as follows:
"That all duties on imported goods
shall be payable in coin. or In notes
payable on demand authorized to be
issued and by law receivable in pay
ment, of public dues. and the com 50
paid shall be set apart as special
fund, and shall be applied rs follows:
First, TO the payment OF com OF the
interest on the bonds and notes OF the
United States.
This coin payment Of interest was
the inducement which was offered to
the investor, though Thaddeus
Stevens declared it was the pound OF
flesh of the extortioner when the
country was suffering. 1t is certain
that coin was provided for interest on
these bonds, and for nothing else.
The act of June 80, 1854. authorized
the Secretary Of the Treasury TO DOT
row. from time to time, on the credit
of the United States, four hundred
millions of dollars, under the follow
ing provisions:
And the Secretary OF the treasury
NAV dispose of such bonds. or any
part thereof, or Of any bonds COM
monty known as five-twentieS remain
ing unsod, at any time, on such terms
as he may deem most advisable. tor
lawful money of the United StateS,or,
at his discretion. for Treasury notes,
certificates of Indebtedness, or certif-
icates of deposits issued under any
act of Congress.
The act of March 8, 1868. gave the
following authority to the Secretary
of the Treasury:
TO borrow from time to time, on
the credit of the United States, In all
dition to the amounts heretofore
authorized. any sums rot exceeding
in the aggregate six hundred miiilonS
of dollars. and to issue therefor bonus
or notes of the United States IN such
form as he may prescribe ma
50 much thereof rs may be issued IN
Treasury notes may be made convert
ible into any bonds authorized by this
act. and the principal, or interest, or
both. may be made payable IN com or
other lawful money.
.Sec. .. The Secretary of the Treas
urv NAV dispose of any of the bonds
or other Obligations under this act,
either in the United States or else
where, in such manner and at such
rates and under such conditions as he
NAV think advisable, for coin, or for
other lawful money of the United
States. or for any Treasury notes.
certificates of indebtedness, or certlh-
Gates of deposit. or other representa-
tives of value which have been or may
be issued under any such act OF Con-
gress.
All these bonds were known as five
twenties. the principal of which was
payable IN lawful money. and the IN
terest alone in coin. OF the three
classes, the following were outstaad'
ing on June %. 1868:
Act o: Feb .. 1862 -. S5i4, 80 ,5eJ
Act OF June So, 1904 -. 10, 9ot ,oe'
Act OF March 5, 1855 .....- $500. Sts ,Sc- sts
The Pacific Railroad bonds and the
navy pension fund bonds, amounting
together to seyenty-eight millic.-s OF
dollars. and expressly payable in legal
tenders. were also outstanding at that
time. Fourteen days after Gen. Grant
became President. on March Is. 1859,
he signed the ''act TO strengthen the
public credit OF the United States.
by which xl these different bonds,
anu other forms of public debt paya-
Die in legal tenders. We're advanced
enormously in value, for the exclusive
benefit of the hondholding class and 4,
the cost of the taxpayers. The shrewd