The advocate., 1896-07-22
TREASURY DEPARTMENT.,
OFFICE OF THE SECRETARY,
WAsHINGTON D. G., April q, lS7


OFFICE OF THE SECRETARY,
WASHINGTON d. G., April 81, 1871
SRI beg leave to call your attention to, and
ask your opinion upon, the following questions
growing out OF the refunding act Of July IA.
1870, to-wit: Can l stipulSte in the body Of
the per cent. bonds about to be issued that
they shall be redeemable In coin Of the pres
ent standard value that is, the standard
value OF the date Of their issue, or must 1t be
the date OF the law?
submit statement, prepared by the Hon.
H. NJ. French, Assistant Secretary, having ref
eFenCe to the laws.
1t may become important to the public in
terests to make the new bonds payable in coin
Of the present standard-that is, gold coin.
Some doubts have been expressed upon
whether previous bonds issued under acts
passed prior to 1873 are not legally payA-
BILE in silver coin. This question may become
important, as any doubt upon the legal terms
OF public security affects its value.
Very respectfully,
JOHN SHERMAN, Secretary.
Hon. Charles Dsyens, Attorney General.
In answer, the Attorney General
wrote this letter:
DEPARTMENT OF JUSTICE,
WASHINGTON, April 26, 1871
SIR-In answer to your letter Of the 2lst In
slant requesting my opinion upon the follow
ing question growing out Of the refundIng act
OF July IA, 1870, to.wit: "Can l stipulats in the
body OF the per cent bonds about to be is.
sued that they shall be rede9mable in coin Of
the present value, that is, the standard value
ct the date OF their issue, or must 1t be the
date OF the law?" have the honor 10 reply;
The act provides for the issue OF bonds "re.
deemSbls In coin Of the present standard
value" The word present undoubtedly refers
as q matter Of date to the time when the act
was passed, and not to the time when tie
bonds were thereafter issued. 1t contem-
plated that long period would elapse before
It would finally be carried into effect, and that
changes In the coinage Of the country might
occur during that period.
Whatever changes In the coinage should
occur, these bonds were, however to be re-
deemed In coin Of the standard value as 1t ex-
listed OF the date OF the act. BY this proVi-
sion the holder was guarded against any
depreciation that might take place in the
value OF the coin, and the government would
not be compelled to pay the additional value
should the coinage be appreciated. All the
bonds issued under the act were to stand
alike, no matter what was the date when such
bonds were issued. Each was to be redeem
able In coin which was included in the au-
thorizSd coinage Of the country ct the date
referred to, 1t being OF the standard value as
1t then existed. Since the law was passed no
change has taken place In the standard value
OF the coin. 10 Is understood that there has
been certain change in the coinage OF the
country, and that silver dollars have now
ceased to exist practically IS cOin
1t has been further provided by the statute
OF February -, 1878 (ReviSed Statutes, sections
1856, 86S6), that "the silver coins Of the United
States shall be legal tender at their nominal
value for any amount not exceeding IS In any
one payment"
Notwithstanding this practical change in
the coinage Of the country and the passage OF
this act In regard to legal tenders, the form OF
bond to be issued by you should not be
changed 80 far IS the mode In which IL Is to
be redeemed is concerned. 1t was not I'm
tended that this should be varied according
to the changes which might be made in the
coinage, because a definite rule was given by
reference to the coin Of q particular date
That which viii pay the bonds heretofore is
sued under this act will pay the bonds which
you may hereafter issue.
It cannot be authoritatively said that the
words payable in coin" or payable in gold
; are equivalent TO the words used by the stat
ute. Even II this leaves open for discussion the
question whether bonds Issued under this act
are or are not rsdeemAble in silver coin Of the
character and standard which existed July H.