National Republican., 1888-01-20

we are ludb lue bbO-h
to Washington by the American Cotton
Cleaning Company OF New York Is being
rapidly placed.
To the President.
From the National Republican, Aug. 0, iss7.)
The act under which the Secretary of the
Treasury proposes to buy bonds was passed
In 1869, and declared as Its first substantive
proposition that the faith Of the United
States is solemnly pledged to the payment
In coin, or its equivalent, OF all the obliga-
tlons Of the United States, except where
the law authorizing their issue provided
that they might be paid In lawful money.
This law, based on this proposition, rs
declared In its title, was made to strengthen
the public credit. The obligations OF the
government were at that time worth on the
market only about eighty cents on the dol
lar. Two declarations by the government
seemed necessary to give these obligations
an Impetus toward par First, that they
should be paid In coin or Its equivalent (the
demand being then very strong In come
quarters that they should be paid in green
baeks), and second, that the public debt
sh uld he yearly reduced by meaus OF a
sinking fund. The law 10 question to ac
compl!sh the appreciation of the bonds to
par in coin provided for both. The law
making this pledge declares that the coin
paid FOR duties on imported goods shall be
set apart as special fund, and shall
be applied, first, to payment OF inter-
est on the bonds and notes OF the
United States; and, second, to the purchase
or payment Of ] per centum Of the en'ire
debt Of the United States, to be be made
within each fiscal year. 1t was expressed,
as hope, by members of the Senate when
the law passed later providing fJr bonis
Of lower rate of interest was enacted,
that within thirty days MI government
obligations would be at par ih coin. The
thought Of the nation at that time, as ex.
pressed In the pledge, was to reach the
maximum Of good credit, par in coin. The
degree Of strength sought to be given to
government credit by this pledge was to
bring the evidences OF the government
debt up to par In coin. This law was not
intended to increase the face value or
amount Of the government debt, as eX-
pressed on the face of its outstanding oh.
legations, nor to give authority to do so
under any circumstances. The public deOt
was fixed and determined by the law, and
| the face OF the bonds and notes outstand-
ing.
This debt has definite cuaracIer on the
| governments books. The supreme object
| OF the law was to distinguish that debt, as
| so defined and typressed. The iutent and
tion. This act was 0talng with langujsh.
| ing public credit. The intent and purpose
were to raise the obligations If tue govern =
| ment from the dependency then covering
| them to an equivalent value to their face Ia
| coin. When this was done the full force
and strength OF the law was spent. The
| secretary treats this law as authority to him
to add, by agreement with the bondholder,
one, two, three, four, or five hundred OF
more dollars in premiums to each 81 90.
entire debt, which he is yearly required tc
purchase or pay under the sinking fund
| law.
| The bonds run thirty years; per ctntu N
| ts to be purchased or paid each year. Thus
| II the secretary is right, when the law wa.
nacttd 30 per centum OF the entire debt
was subject to such increase. II this be the
correct construction OF the law, then 80 pei
cent Of the debt Is no longer fixed and Ger.
tain, as expressed on the government books
but is the face value of such 30 pei
centum In coin plus the amount to be added
thereto by agreement between the secretary
and the bondhodeIs each year. The la "
which sets aside coin to pay the prncipal
and interest of the bonds, If this theory be
true, also. oug BIT to have provided that suf
ilcient coin should be set aside to pay the
amount added to the face OF the bonds by
| agreement, as above stated.
| There is no express authority In the law
| 10 pay premiums on bonds; nor Is there any
| provision In the law TO provide coiu for the
payment or purchase Of more than the face
value Of the bonds. The assumption that
authority exists to pay more is built upon
| construction alone. A law whose control
ling and avowed object is to ex'inguish q
debt cannot rightiully be construed as au.
thority to increase the debt
| When the bonds were below par, as they
at one time were, and were expected to re-
main for long time, II would have worked
injustice to the great bulk of the bond.
holders to pay the face value of per centum
| OF the entire debt, with the privilege OF
the Secretary to select the holders of that
per centum. For this reason the law
gave power to purchase or pay, assuming
that the Secretary would do the one mos.
| advantageous TO the government, and most
| just to the holders of the whole debt. 1t
would work like Injustice, now, to pay the
present holders OF per centun Of the en-.
| tire debt, one hundred and twenty, thirty,
or fifty cents on the dollar each year for
their bonds, while the holders of the other
| bonds can get only par when the whole
issue fall due years hence.
That the Secretary is In error In his con-
| struction OF the law Is manifest from his
declaration that he cannot execute the law
unless the holders of the bonds cooperate
| with him. A construction OF the law which
makes its execution impossible by the OH.
Ger charged with It's execution is necessarily
| wrong. Where did the bondholders GET
| power to decide whether law should be
executed or not9 Where Is the authority
under our government to conflde any nnu-
ence or part In the execution Of law to
those to be affected by its execution?
This position is absurd. The President,
under the constitution, must see that the
laws are executed. His jurisdiction does
not eEteId to commanding or forbIiding
the bondholders to assent to or dissent from
the execution OF given law. lie has power
to command the Secretary to execute a
statute whose provisions make him the in.
stfument Of It's execution, and If be does not
execute 1t 10 dismiss him. IL O law cannot
he executed without the cooperation OF a
class Uf citizens over whom the President has
no Jurisdiction, then the law Is a dead /, tier
and practically law. IL the sinking fund
law has any efficiency 10 accomplish d re-
iucilun Of the debt, n ls because the Secre-
'ary ui the Treasury has power under il TO
ruiofUe u whether rs OItTa,l1n pl .ases or
llspleases those affected by "a, The Secre.
teTy's course is 70 order the payment Of
per cCnium Of the entire debt OF tue uuIted
states each year, aud TO stop the PAYMENT
Of interest on H..
IL Is fearful responsibility for the adj
minlsuatlOn 20 attempt 10 inaugurate the
policy OF Increasing the public debt by pay.
ing premium on bonds.
The NATIONAL REPUBLICAN,.