The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1878-12-06

We are asked to cite the law and tho
facts for the statement that tho $50
bonds were first made payable in green.
backs and were subsequently, by an act
of Congress, converted into coin bonds,
in contradiction Of tho terms Of the
original contract. The task is simple
and the subject ought to be fairly un-
derstood. The act Of Fob. 20, 1862,
commonly known as tho Legal Tender
Act, authorized the issue OF one hun.
dred and fifty millions Of United States
notes, and declared as follows:
"Sucll notes shall be receivable ia
payment Of all taxes, internal duties,
excuses, debts and demands Of every
kind due the United States except du-
ties of imports, and Of all claims and
demands against the United States Of
every kind whatsoever, except for IN
terest on bonds and notes, which shall
be paid in coin and shall also be saieysfi
money and legal tender in payment Of
all debts, public and private, within
the United States, except duties on i'm.
ports and interest as aforesaid"
The function, range and po Ser of the
greenback are thus fully described as
"lawful money" The second section Of
the same act declares:
"Tls Secretary Of the Treasury is
hereby authorized to issue, ON the cred
it Of the United States, coupon bonds,
or registered bonds, to an amount not
exceeding five hundred millions Of dol
lars, redeemable at the pleasure Of the
United States, after years, aud payable
twenty years from date, and bearing in
terest ut the rate Of six per cent. per
annum, payable semi-annually."
Not word in the net refers 10 the
payment of the principal Of these bonds,
and the first section above cited clearly
shows that they were purchasable and
redeemable in legal tenders. But If
any doubt existed on this point il would
be removed by the fifth section, as fol-
lows:
THAT all duties on imported goods
shall be paid in coin, or by notes paya-
ble on demand heretofore authorized to
be issued and by law receivable in pay
ment of public dues, and the coin 80
paid shall be set apart as a special fund,
and shall be applied as follows First,
to payment in coin Of the interest on
the bonds and notes of the United
States"
This coin payment of interest was an
indueement which was offered 10 the in,
vestor, though Thaddous Stevens de.
clared il was tho pound Of flesh Of the
extortioner when the country was suf.
fering. IL is certain that coin was pro
Vided for interest on these bonds, and
for nothing else.
The act Of June 80, 1861, aathorizcd
the Secretary Of the Treasury to bor-
row from time to time, on the credit of
the United States, four hundred mill
ions Of dollars, ;.ndcr the following pro
visions:
"And the Secretary of the Treasury
may dispose Of such bonds, or any part
thereof, or of any bonds commonly
known as FIVE twenties remaining un-
sold, at any time, OH such terms as he
may deem advisable, for lawful money
Of the United States, or. at his discre-
tion, for Treasury notes, certificates Of
Indebtedness, or certificates of deposit,
issued under any act Of Congress"
The act Of March 3, 1865, gave the
following authority to the Secretary of
the Treasury:
''1o borrow from time to time on the
credit of the United States, in addition
TO the amount heretoforeauthorized, any
sums not exceeding in the aggregate
six hundred millions of dollars, and to
issue therefor bonds or Treasury notes
Of the United States in such form as he
may prescribe and so much there
of as may be issued in Treasury notes
may be convertible into any bonds au-
thorized by this act and tie pTil-
eipal or Interest, or both may be made
payable in coin or in other Ld,cfiit mon
ey.
SEC. 2. The Secretary of tho Treasu-
ry may dispose of any of the bonds or
other obligations issued under this act,
either in the United States or else
where, in such manner and at such rates
and under such conditions as he may
think advisable for coin, or for lawful
money of the United States, or for any
Treasury notes, certificates OF indebted
ness, or other Representatives Of value
which have been or may be issued un-
der any act of Congress.
All these bonds we're known as FIVE
twenties, the principal of which was
payable in lawful money, and the inter.
est alone in coin. OF the three classes,
the following were outstanding on june
80, 1868:
Act of Feb. 25, IS62...... $5l4,7S0,50O
Act of June 80, 1884,. l25,56l 800
Act Of March 3, 1861. 9l7,502,S00
Total..................$l, ,557 ,844 ,600
The Pacific Railroad bonds and the
Navy Pension Fund bonds, amounting
altogether to seventy-eight millions Of
dollars, and expressly payable in legal
tenders, were also outstanding at the
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 enormous
ly in value, for the exclusive benefit Of
the bond-holding class and at the cost
of the taxpayer. The shrewd language
of that artful law is worthy of repro
duction here:
"That in order to remove any doubt
as to the purpose Of the Government to
discharge all lust obligations to the pub