Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1878-03-23

Here Is the second prospectus
500, 900, 900 UNITED STATES GOV
ERNMENT Al PER CENT. FUNDED
LOAN.
(In bonds issued and payable,
and interest, in the United
States of America
These bonds are issued in accord
ance with the provisions OF an act
of Congress, entitled 3 An Act to au-
thorize the refunding of the Ma
tional Debt, approved July 14th,
1870, amended by an Act approved
January Doth, 1871" and are re-
deemable at the pleasure of the
United States after the 1st Septem-
Der, 1891, in coin of the standard
value of the United States, on said /
July 18th, 1870 (gold coin), with in
terest in such coin, from the day of |
their date at the rate of AZ per cent. /
per annum, payable quarterly on |
the 1st June, LIST September. LIST De- |
cember and LIST March in each year. |
The principal and interest are ex-
empt from the payment of all taxes
or dues of the United States, as well
as from taxation in any form, by or
under State, municipal, or local au
thOrity.
The proceeds of this operation are
to be applied to redeem and cancel
an equal amount of United States
five-twenty 6 per cent. bonds, as
provided in said acts.
This issue of $500, 00O, 900 is the en-
tire amount of the Al per cent.
funded loan authorized by theaboVe
mentioned acts of Congress.
Evidence is given in the Econo-
mist, and conclusive evidence, we
admit, that this prospectus was au-
thorized by the Secretary of the
Treasury, but the following letter is
signed by Mr.. Sherman himself:
TREASURY DEPARTMENT, WASH
INGToN, June 10, 1877.
Francis O. French, Esq, No. "a
/ BrOadlCdy, NetC Y0rk-SIR: Your
letter of the 18th instant, in which
you inquire whether the four per
centum bonds now being sold by
the Government. are payable, prin-
cipal and interest, in gold coin, is
received.
The subject, from its great impor-
! tance, has demanded and received
careful consideration. Under the
laws now in force, there is no coin
issued or issuable in which the prin-
cipal of the four per centum bonds
is redeemable, or the interest paya-
1 BILE, except the gold coin of the
United States of the standard value
fixed by the laws in force on the 18th
of July, 1870, when the new bonds
were authorized. The Government
eXacts in exchange for these bonds
l payment at their face in such gold
coin, and it is not to be anticipated
that any future legislation of Con-
greSs, or any action of any depart
ment of Government, would sane
ton or tolerate the redemption of
of the principal of these bonds, or
the payment of the interest thereon,
in coin of less value than the coins
authorized by law at the time of the
issue of the bonds, being the coin
eXacted by the Government in eX-
change for the same. The essential
element of good faith in preserving
the equality in value between the
coinage in which the Government
receives and that in which it pays
these bonds will be sacredly OBJ
served by the Government and the
people of the United States, what
ever may be the system of coinage
which the general policy of the ma
ton may at any time adopt. This
principle is impressed upon the text
of the law of July IA, 1870, under
which the four per centum bonds
are issued, and requires, in the
opinion of the Executive Depart
ment of the Government, the re-
demptiOn of these bonds, and the
payment of their interest, in coin of
equal value with that which the
Government receives upon their
issue. Very respectfully,
JOHN SHERMAN, Secretary.
The letter was submitted to the
Cabinet before it was sent.
At this time Mr.. Sherman knew
that there was a great probability OF
legislation restoring the silver dollar
to its legal tender rank, and he also
knew that the original terms of the
act authorizing the loans made them
redeemable in gold or silver, pro-
vided there was a silver coinage tC
pay them in, consequently he was
setting his single will against the
will of Congress and declaring that
Congress should only legislate as he
might please to contract, instead Of
making his contracts in accordance
with the will of Congress.
r We acknowledge that we had
neverseen thOse"prospectuses" until
we read them in this article of the
Economist. AS public Journalist
we admit this to have been a defect
of proper vigilance, but knowing
the terms in which the loan had
been authorized by Congress, we
took it for granted that precisely
those were the terms on which the
nations fiscal agents would negO,
tiate. They have done exactly the
reverse; they have negotiated or
terms never authorized by Congress
and two most important questions
at once arise out of it. How does
this unauthorized act place the ma.
f ton in regard to its creditors as
secured by these bonds, and how
does it place Mr.. Sherman before
! the nation ? We have already
t spoken in our last weeks issue o.
the anomaly of Cabinet officer re-
j manning in office whose aVOwed
, financial policy is opposed to that Of
, Congress; of an Executive officer
: entrusted with the carrying out o
measures which are to him an
abOmination; but here is an anom
ally which goes far beyond that
Here is an Executive officer repeal
, ing and cancelling by his individual
act the laws of Congress, which pre-
, scribed to him his course as financial
agent of the nation. To us it seems
altogether inadmissible that so fla,
, grant a violation of all constitutional