The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-23

S7o.0V0,0e0 in..... ,.... on.
Zzs,00.o0O in........ ...... ....... 50os
l5t.UU.u00 IN ......... ............. lois
voV M. .-.-----. -....-...... S09
fopufst leaders lave filled the minds OF
the rank and file OF the party with erron-
eous notions regarding the 1905 as to their
circulation as money. the manner OF their
issuance and the real character OF the
notes.
Emery states that they were made law
ful money and a legal tender by the acts
creating them" fO)
Weaver says they were made legal ten
der at their face value, exclusive of inter-
est" and that when not paid to the SOL
diers they were paid out lin current gov
ernment business" or
Heath says they were issued ''to be paid
out as money to soldiers and other cred
itors OF the government" CD.
PETER and Davis. Of Kansas. both claim
that the 7-sos issued under the act of June
-, 1864. were a legal tender "a.
Were the 80 Totes legal tender?
The only laws Of the United States in
force while the 7-3os were outstanding, re-
lating to their legal tender quality, are to
be found in the two acts Of congress au-
thorizing them. Section of the act of
March 3. 1855. conclusively settles it that
the notes issued under that act were not
legal tender, for 1t provides in SO many
shall be construed as authorizing the is
sue of legal tender notes in any form (5}.
Section Of the act of June so. 1864, pro-
vides. And the said treasury notes may
be disposed Of by the secretary of the
treasury, on the best terms that can be
obtained. for lawful money: and such Of
them as shall be made payable. principal
and interest, at maturity, shall be a legal
tender TO the same extent as United States
in.
terest 90. Populist leaders quote this
provision as positive proof that the notes
issued under this act were q legal tender.
They do not Seem to think II worth while
to find out whether or not the notes as
issued were made payable. principal AMI
interest, at maturity. As a matter Of fact,
the secretary Of the treasury exercised the
discretion vested in him by the law as TO
when the interest should be paid, and is
sued the notes with the interest payable
seYni-annually, not at maturity. hence they
did not come within the provision that
made them a legal tender. William Pitt
Fessenden was the secretary Of the treas
ury who issued the 7-30 notes under this
act. His annual report of December 6.
1864. is conclusive as to the time when the
interest was payable. and the character Of
the notes as to legal tender. After speak
ing of the difficulty which the secretary
had had in raising funds to pay the ex-
penses Of the government he says: He
had then no other alternative than to is
sue legal tender notes to a very large
amount or again advertise for loan. and
he had no hesitation as to which course
should be adopted. Accordingly, on the
3Sth of July. he issued proposals for q
national loan, under the act OF June SO.
1854, upon notes payable in three years,
with semi-annual interest at 73 per cent.
per annum in lawful money. He incurred
a considerable expense in advertising this
loan. believing that it should be as widely
diffused and generally understood as
possible. and offered liberal inducements
TO stimulate the efforts of corporations
and individuals to dispose OF the notes.
a serious obstacle to greater success has
been, the secretary believes, the amount
of other desirable national securities
pressing upon the market, and presenting
more favorable opportunities for invest
ments. More fully TO ac-
complish his purpose. the secre-
tary resolved to avail himself
OF wish expressed by many officers
and soldiers, through the paymasters, and
offered to such as desired to receive them
seven-thirty notes of small denominations.
He was gratified to find that these notes
were readily taken in payment TO large
amount, our gallant soldiers, In many in
stances. not only receiving them with
aiacrity but expressing their satisfaction
at being able to aid their country by loan
ing money to the government. The whole
amount Of notes thus disposed OF exceeded
s20, 600 600, and the secretary has great sat
isfaction in stating his belief. that the dis
rosal thus made was not only relief to
the treasury. but proved beneht 10 the
recipients, in affording them safe and
valuable investment and an easy mode OF
transmitting funds TO their families I'd.
Under the general provisions OF the act
of
authorized, a large amount of per cent.
compound interest notes were issued. pay
able principal and interest at maturity.
and therefore. according 10 the provisions
of the act. legal tender for face. excius-
i've OF interest Some have confused these
notes with the 1888 authorized by the
same act Cs).
Were the 1905 issued as money? Were
they actually paid out Sin current govern
ment husinessr" Most emphaucaily, NO.
And those who state that II was IN tnis
way that the government disposed OF them
are either woefully ignorant or the histor-
teal facts or else utterly regardless or the
truth. Almost. II not entirely. without ex-
ception, the 1905 were not paid out as
money. but were sold by the government
to investors lust as the bonds were sold'
The official reports of the two secretaries
of the treasury who sold them place the
matter beyond dispute. So far as known
OF the zoos being paid out as money was
when the soldiers took sen 10000 OF them
in payment of their services But cred
f,ors often accept groceries. or chechs on
banks, as payment OF money but
this does not make the groceries
or checks money. The entire ac-
count OF this transaction. as iou''i
in Fessandsn's report-not the gar
bIad and distorted account that Donneny
nendaciouslv saws is found in Fsssenden
report tal-shows that neither the score
tarv nor the soldiers considered the f-9's
a. ,,o,eV The notes were offered to
such as chose 70 receive them II 'he
notes had been money the soid-ers
would have been compelled 10 TAKE
then, IN payment whether they chose 10
receive them or not: they would have had
no choice in the matter The soldiers
thought that they were "lcsning money 10
the government" and the secretary
,tc,rh, me solsIers had made safe
and valuable investment" the Only ar
ference between the soldiers and those
=