The times. [volume] (Richmond, Va.) 1890-1903, 1893-03-17
CAN BONDS BE SOLD
TO RESTORE ANY LOST REsERvE OF
TREASURY GOLD?
w. p. st. John Differs with EI-Attorney-
General Miller and Says Not Giving
Chapter and Verse for His Opinion.

lance for the issue OF these bonds Is
based upon the opinion OF the late Attor-
ney-GeneraI Miller, that the Secretary
Of the Treasury has the continuing power
TO issue bonds to redeem the legal ten
ders OF 1862 and 1863. and reissned under
the act Of May 81, 1873. A number Of New
York bankers recently made a visit TO
Washington TO see Secretary Carlisle and
| find out what would be done in the mat
! ter. MIR. Cleveland is reported TO have
said in this connection: II don't intend
| II issue bonds. though | would do 1t II
| IL were necessary"
| A representative Of The Times. learning
that Mr.. W. L. st. John. president Of
the Mercantile National Bank of New
York city. anl well-l;nown as an agrees
| sive and defiant champion Of free silver,
mad declared that neither the President nor
the Secretary had any such power 10 issue
| bonds, called upon him at his bank, on
Broadway, and asked him TO give the
grounds for his opinion that the readers
If The Times might have both sides.
Mr. st. John said:
"A careful research OF the AZ. ertalninS
statutes and the record OF the circum-
stances under which they Were sevcrdlly
eracted has convinced me ihat the Sec
powered by law to Issue in srestbearir5
bonds for the redemption of United Suites
notes"
"The United States legal tend r notes.
C llOquially termed 'greelbacks.' were IS
sued under acts of February 18th ard
July II, 1862, and Marcel 3, 1863. The sum
authorized being yiJo.0JJ,0J0. the utrfbs
amount outstanding at the end of any
fiscal year, SAT-. 0.909. and the .stimated
Of I. 4 riding bptnu fttt
cSl 900. They were authorized TO be issued
on the fahh II the United States and
as United States notes. not bearing in
terest, payable to bearer The early
series bore on their face the legend. The
United States promise to pay the bearer
dollars; no specified KIND OF dollars
not even coined dollars. All were to be
"A legal tender in payment OF all del u.s.
public ard private, except duties On I'M
ports and interest on the public debt.
and to be eXchangeable until July !, 1869
for per cent. United States bonds. Al
the outset and ever since, the gum or
these notes outstanding has been ac-
counted an item of the public debt
"While the Understanding debt in
creased, and varying with the prospects
of the outcome OF the war, the pubic
estimate OF the payment Of this non
interest bearing debt varied also. Subse-
quently. for years after the war had
ended. and Notwithstanding the evident
ability Of the United States 10 pay there
remained a question Of the fulhllment OF
these promises; as witness the discount
below par at which these notes continued
TO circulate, as expressed in the fuctua-
tions quoted in premium on gold. Hence
the act OF March, 1863. to strengthen
the public credit: wherein II was pro-
vided and declared that the faith or the
United States is solemnly pledged TO the
payment IN coin, or its equivalent, or all
the obligations OF the United states not
bearing interest. known as United states
notes. And the United States also
soemnly pledges its faith to make pro-
vision at the earliest practicable period
for the redemption OF the United States
notes in coin
at that date OS6O and until 1873. as
without "A break from the rounding OF
the Mint in 1882 the monetary system OF
the United States provided equally uh-
restricted coinage for gold and silver Dol
lars on private account; provision
which the late Democratic platform de-
mands shall be restored.
"The Refunding act and its amendment
July Il. 1870 and January q. lSh' pro-
vided for the refunding OF the interest
hearing debt into A50,M0OW OF bonds,
and 81 4S9, $50 500 were issued. or THESE lhe
authorized per cents and IL per cents.
have matured and have been paid. The
per cents. were dated July, 1871, and are
PAYABLE after thirty years. Thus the
remnant of them not already redeemed
by purchase at high premium VIII De
payable at the pleasure OF the United
States after 1897. .
THE Redemption act OF January II,
1879, repealed a statute when hau lHitcu
the apgreaate amount of circulating notes
of national banks and provided that win
any increase of national bank notes
(Which would follow If al all by the Nolull-
tarv action Of the national banksD IL
sball be the duty Of the Secretary or the
Treasury to redeem the legal tehueI
United States notes IN excess only vi
$500 600 coo to the amount or ~ per CtH,.
of national bank notes so lssucu' -
And on and after January ], 1913 tne
secretary OF the Treasury shall redeem IN
coin the United states legal tender notes
then outstanding on their presentation III
Sums OF not less than $50; ana 10 ehdD'e
the Secretary OF the Treasury TO prepare
and provide for the redemption III lnIS
act authorized or required ne is author-
ized to use any surplus revenues iioIi
time TO time. in the Treasury not DINER
wise anproprIated, and TO issue, sell ana
disnose Of. at not less than par. IN com
either of the description Of bonds OF the
United states described In the act APP
nroved July a. 1870, entitled, WIN
iilxa qualities privileges and cNemptonH'
20 tho extent necessary TO carry this act
into fiu effect, and 10 use the proceeds
thereof for the purpose aforesaid
"Thus the Resumption act or I'D tne
sole authorization Of law Cor any creation
% an interest-hearlng debt for the pur-
nose Of redeeming the only remaining nom
interest-b bearing debt. explicitly restricts
the Issue TO the extent necessary 20 carry
This act into full effect Under this eX-
Dlicit restriction the utmost p"sslble issue
IF bonds was the face amount Of the out
standing notes to be redeemed VIZ; $5lb'-
6s1 O00 But. II the statute which | 1uoie
ncxt. enacted three years later mas not
effectually repealed this Resumption act
of 1875 in all provisions. then authority
may he assumed to issue $1,000. 00O 900 ana
more Of interest bearing bonds for he re-
demption' Of only S3i60000 900 Of on-inter-
est-bearing notes. an Interpretation OF law
which must appear preposterous
But the redemption provided in lhe
act of 1875, payment in coin and ,he can
collation. of the notes as paid caused n
cutlery Of resentment against the contrac-
ton of the currency when about 500. jcO0oO
O: the notes had been retired WhereupOn
followed the act Of Nay 81. 1878. whereby
1t was made not lawful Cor the Secre-
tary Of the Treasury or other officer I'M
der him TO cancel or retire any more OF
the Urited States legal tender notes and
when any of the said notes may be re-
deemed or be received into the Treasury
they shall not be retired, can
LII l.uf 81 1fff h.4kr hull Ha -