The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1878-10-19
1864 and those of 1865. At the close of
the fiscal year for 1865, viz, June so,
there were outstanding Of these several
issues ~ follows: 81 4 g

9
vi iSoS -.-..--..-... $1,000 .--.-.-. fp,.iV'soV
The different laws under which these
securities were issued are before US as we
write. The seven-thirties of 1861 were
not only not legal tender, but they
we're not receivable for public dues. The
seven.thirties of 1864 were issued under
the act of June 80 of that year. The law
provided that they might be issued, at
the discretion of the Secretary, either as
legal tenders or as not legal tenders. If
they were made payable principal and
interest at maturity, they were to be
legal tenders if the interest was made
payable semi-annually, they were not to
lie legal tenders. The Secretary of the
Treasury chose the latter form of issue,
and they were not legal tenders. See
the finance report of 1864, and discussion
in the House of Representatives during
the second session Of the thirty-eighth
Congress upon the bill authorizing the
third issue (pages $50 and 35l of the
Congressional Globe for that SESSION., as
we'll as late statements upon this point
from the present officers of the treasury.
The issue of 1865 was made under the act
of March 8, 1865. and the act not only
does not provide that they shall be legal
tenders, but expressly forbids it. So
that not a dollar of seven-thirty legal
tenders was ever issued under either of
the three acts. Hence, we must sub.
tract at one operation eight hundred and
thirty millions from Gov. Crawtord's
fancy sum of legal tenders in 1865. This
cuts his aggregate down more than one
half. We submit that an error of eight
hundred and thirty millions is rather a
bad beginning for financier who tOots
so loud horn.
But he has no business to include in
the currency even the compound inter-
est notes which were legal tender for
their face excluding the interest. These
notes wore made to bear interest for the
express purpose of keeping them out of
circulation. AS old Thad. Stevens said
in the debate on the legal tender bill,
Bonds or notes intended for investment
bear interest, but no one expects they ,ciW
be used as currency" Four months after
the issue of these notes they acquired
two per cent. interest. while they were
legal tender for only their face. In other
words 800 note would be worth one
hundred and two dollars, which would
pass for only 500. Two per cent. pre-
MUM drives gold and silver completely
out of circulation, though full legal
tender. 1t did the same by the COM
pound interest notes. At the time Gov.
Crawford speaks of, many of these notes
had accumulated from six to eight per
cent. interest, while they were a legal
tender for only their face. The five per
cent. legal tender notes were issued I'M
der the act Of 1868, and probably not
dollar of them was in circulation at the
time Gov. Crawford speaks Of In his
report for 1865 the Secretary of the
Treasury says: "The interest bearing
notes which were legal tender for their
face value were intended to be security
rather than circulating medium" The
onlv form in which tboao in 70 roc AZ hon RI mo-