The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1878-10-23

sold. at any time, on such terms az ne may deem
most advisable, for tasgfuI money OF the United
certincstss ar indebtsdness, or certificates Of de-
posit issued under any act Of Congress"
The act of March 8, 1865 gave the follow
ing authority to the Secretary Of the Treas
ury:
turo borrow from time TO time, on the credit OF
the United States in addition to the amounts here
tofore authorized any sums not exceenlng In the
AGGREGATE six hundred millions OF dollars, and to-
iss1e therefor bonds or Treasury notes OF the
United States in such form as he may prescribe =
and so much thereof as may be issued In treasury
notes NAV be made convertible into any bonds au-.
thorized by this act and the principle, or IN
1erest or both n ay be made payable in coin or IN
other IatgfuI money.
"sEo. Q. The Secretary Of the Treasury may
dispose of any of the bonds or other obligations
issued under this act, either in the United States
or elsewhere In such manner and at such rates and
uuder such conditions as be may think advisable.
for coin, or for other Ldtcus money Of the United
States for any Treasury notes. certificates OF in
debtedness certificates OF deposit or other rep
resentatives OF value which have been or may be
issued under any act of congress-"
AL these bonds were known as fve-
twenties, the principal of which was pay
able in lawful money, and the interest
alone in coin. Of the three classes, the
following were outstanding on June 80,
1868:
Act OF Feb 25 1862. ..... -..... $5l4,7s0 5OO
Act OF June 80 1s64................ 125, sol SO0
Act of March B. 1865 9I1,oUZoOO
Total. 81 ,557, s44, 900
The Pacific railroad bonds aud the navy
pension fund bonds, amounting together
to seyenty-eight millions of dollars, and
expressly payable 10 legal tenders, were
also outstanding at that time. Fourteen
DAYS after Gen, Grant became president,
on March Is, 1869, he signed the ''act to
strengthen the public credit of the United
States" by which all these different bonds
and other forms Of public debt payable in
legal tenders, were advanced enormously
lin value, for the exclusive benefit of che
bondholding class and at the cost OF thu
taxpayer. The shrewd language of tina
artful law is worthy of reproduction here
"Tbat I'm order TO remove any doubt as 10 thu
| purDoee OF the government to discharge all JUS
oblgations to the public creditors, and TO settl'
Icondctng questions and interpretations OF the lev
nv virtue Of which such obligations have been con
tracted 1t is HEREBY provided and declared that thu
faith OF the United States 10 solemnly pledged 7
the payment In or It's equivalent OF GE tbe 90
H1nfions of the United States not bearing inteFes
known as United States notes, and OF az mstHtsr
est bearing obligations Of the United states, excep
in cases where the Law authorizing the issue OF an
such obligation has expressly provided that In
| same may be paid in lawful money or other cur
rency than gold and silver"
The original bill was introduced in tn
house of representatives by Mr.. Schenck
of Emma Mine fame, on March IL, 1869
and was driven through without discussion
1t passed the senate March Is, 1869, afte
the republican majority voted down al
amendment of Mr.. Thurman IN thes
words:
"PrOUided, That nothing herein contained sha
Happily to the Obligations commonly called 81
bonds"
This sort of legislation has had much t
| do in fastening the downfall of the repub
! lican party.