The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-10-18

We are asked to cite the law and the facts
for the statement that the $50 bonds were
FIRST made payable In gyeenbacks and were
subsequently, by net ~ Congress. converted
into coin bonds, in contradiction Of the
terms OF tho original contract. Tho task il
simple, and the subject ought TO hc fairly
understood. The act OF Feb. % lsd2, COM
monty known ~ the Legal 1.ndor act. au-
thorized the issuc - ono hundred md fifty
millions % Cnl'cd States notes, and de-
clared as follows:
Such notes snail he receivable in payment Of al
taxes internal iu'e' eNcises debts. and demand, ~
svery kind due to fhr United states except lutc. OBI. n
ports and o. al rliins AMI demands r-as tie r'ed
STATES ~ every Kind wh-,soevcr eNe ~ f.r rj.
hsf ant no',s fich 81 t be- raG 10 ron. ah shall si.o
be tI ror-v ana lessl euler in rfyn' % all debts
public and private, ~Ithin the t.',i states except
duties on imports and il.sfest a. .l.elait'
The function. range. ami power of the
greenback are thus fully described as law
vi money" The second section Of tho same
act declares
The Secretary of'he Treasury is hereby authorized
sue Oh the c-ctit M ac Tinted states bonds
essvred bonds to an amount not exceeding ave hun
lred millions OF toiars. feiecuehl. tle ,n.ur, oftc
Uu!ud states alter i've yoar.. aal rt abe twenty ycar.
rom date, and teaur- utere.; the rate oi SIX Icr
ssn'um per Annum. payable SEM auunA.l'
Not q word in the act refers e. the pay
mont of the principal Of these bonds, and
tho first section above cited clearly shows
they were purchasable and leiccmahle in
legal tenders. Bat If any doubt existed on
this point, which Is no longer in dispute, it
would he removed hy the Nth section, as
follows:
That all iunrsou ported goods shall he re3n coin
or IN notes payable on demand heretofore authorized to
b. Issued and by law receivable ir PAYMENT u pah'c
dues. ana tie coin Iail sa le $50 alart special
find. and 81 al' hc ap- 20 o.. f...u fi.t % t't ivy
ment IN CON OF the r ~ oH Che BOMBS and ao..s OF the
Cniied states"
This coin payment Of interest was the in
ducement which was offered 20 the investor,
though THApDErs 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 borrow, from
time to time, on the credit Of the United
States, four hundred millions Of dollars, UNI
der the following provisions.
And the Secretary of the Treasury may dispose Of
such bond' my part ih,gco' or ot ANY bono, COM
monty kno~u ~ fvotvcuues reaain.u- uu.o,f at any
time. such he may drain most advisable, tor
tIEfI money Of the United state. az his discretion
Treasury notes. cert iritc, o Indebtedness or ccrtn
Gates OF deposit issued unier ans act 90 Congress
The act OF March 3, 1855, gave the follow
ing authority to the Secretary Of the
Treasury:
TO borrow from time to time the credit of the
Cnited states In addition TO the amounts heretofore
iuihoriIed any not exceeding IN Tho aggregate
hundred millions N dollars and to issue therefor bonds
Treasury notes Of the United States in such form he
may prescribe = AMI 80 much thereof as may he
issued in Treasury notes may he made convertible into
any bonds authorized hy this act and me I.mc1.d
mt'r,'f 'h. may be made payable in coin or IL ~hs
hsJui mon.D
Sac Tho Secretary ct the Treasury may dispose NJ
any Of the bonds other o1A.itous issued under TITS
act. either IN the United states or elsewhere IN such
manner and at such rate, mad unier such CONDITIONS
he may think advisable ior in or ofl,, ti roisy
Of the United states any Treasury notes certd
Gates ri Indebtedness OF ccrnacnes o deposit other
representatives, OF value vN.ch have been or may
bued under ans act 81 Congress
All these bonds We're known as iive-twcn-
ties the principal Of which was payable in
lawful money, and the interest alone in coin
OF the three classes, the following were ont
standing on June 30, 1888:
A't Of Feb y issl NEUTRALITY-SUSPICIOUS.. s5lt7so 80