Year: 1867




The following article from the Milwaukee
Sentinel Republican paper, is the most
forcible and pertinent exposure of General But
ler's reputation scheme that we have scent


General Buffers scheme is simply
this:-To pay certain United states bonds called
6-2Os (that is made payable at any time after
five years and within twenty years, at the
option of the GoverumenD in greenbacbs.
This, he says, the Government has right to do,
because it did not not specify in the bond that
1t was to be pad in coin, and because it had
made greepbscks a legaLtender between indi-
vidua citizens.


NOW let us analyze this legal-tender act. 1t
provides that if owes b 800 he shall be dis
charged from that obligation by paying B $l00
in greenbacks or legal-tender notes. Very well:
what is a greenbaCk? 1t Is simply promise of
the Government to pay the bearer so many dol
lars. The Legal-tender act, therefore, does not
consider B paid, for it provides that he shall
receive from the Government promise to pay
HIM and let "A 60 free. is discharged from his
obligation to B, but the Government is not. 1t
has simply taken the place of A and assumed his
responsibility to B. II we're paid by the trans.
action the Government would owe him nothing,
aud the greenbacks would be cancelled, else
would get his pay twice. But the Lega-tender act
does not once hint that the greenbscks are can
celled in the operation, or that the Government
s not still bound to pay the pro omised dollars. On
the contrary, it's on the assumption that the Gov.
ernment Will pay them that B is compelled to take
the notes in lieu OF his claim upon A. 1t is un-
derstOod all around that the Government cannot
pay the dollars and take up the greenbacks at
present. But il is equally well understood that
the Government is bound to do so, aud that the
faith of the notion is irTevoeably pledged that it
will do 1t as soon as it can; otherwise Treasury
notes would not be worth the paper they are
printed on, and the Legal-tender act would be
merely an arbitrary enactment that ali existing
creditors should 60 without their pay. The
greenbacks might be worth something until all
pre.eXisting debts we're rubbed out by them:
thenceorward all credit upon their faith would
cease, and they would be on Par with Confede-
rate notes, payable six months after never


"B may procure discharge from like obl-
cation TO @ by rendering him the same notes,
but @ is not paid, for the same reasons that B
was not when he received them from A. The
Government has assumed BIS debt to e, Just rs
1t did AS debt TO B. is now paid. because C
has advanced the tangible value for the Govern
ment and taken its obligation to pay. Thus the
greenbacks may go on through the whole alpha
bet, no one being paid when he receives them,
but only when he parts with them for value
which the next man advances for the Govern
ment. The Legal-tender act, then, only en-
forces constant shifting of obligations against
individuals for obligations against the United
States.


''Now let us return and inquire what is the
nature of a FIve-twenty bond ? 1t Is simply
promise on the part of the United States to pay
the holder so many dollars. What is the mean
ing of the word dollar as used IN the bonds?
General Butler says that it means 'greenbacks-
a legal TENDER But what is a greenback-al legal
tender? We will take one from our wallet and
read. Here it is:-.The United States will pay





York. That is the dollar which General Butler
says is promised in the bond-not the dollar in
the Treasury in New York, but the bit OF paper
which promises the dollar. dollar, says
General Butler, is the promise of a dollarl And
he calls on this great nation to stand up before
the nations of the earth and say to its creditors,
That dollar promised you was only the pro-
mise OF a dollar-certainly-a a dollar Is nothing
but the promise of dollar; take it and be gonep
An individual who should attempt such trick
would be called by every one contemplate
sneak and scoundrel.


at might be expected that the creditor would
| ask who is to pay this last pfomise9 According
to General Buffers scheme this is never to be
paid; ii does not need to be paid; 1t is its own
payment. The Government has the right to
iulhl one promise With another OF the same
kind which is not to be fulfilled If the second
promise is to be fulfilled, how is it to be done?
II 1t is by third promise of the same kind,
what better is that than the first or second pro-
mise? II it is to be paid in The thing pro-
missed, which means certain quantity OF gold
or silver, why is 1t not as well to pay it on the
first promise as on the third one, provided the
creditor will wait equally long for it! The
question involved in the Butler scheme is not
as to the time, but as to the manner of pay
ment-not whether il shall be made at the end
of five years or twenty, but whether it shall
be made In the thing promised or in another
promise of the same thing. Suppose a man owes
General Butler a dollar, and the General asks
it, He asks him again. Again he answers,
yes, | promise to pay it, He asks him the
third time to pay him that dollar. He answers
the third time, 'Yes, promise TO pay you that
dollar The General replies with some. warmth,
Then pay it now.' The creditor replies My
dear General, | have paid you, have three
times promised to pay you, and is not promise
of payment a sufficient paymentY PRAY, sir
how many promises do you think it takes TO
make a dollar = Probably the General would
boot the fellow from his presence, and never
ask him for the dollar again, and take good care
that he never owed him another And yet Gen.
Butler calls upon the Government of the United
States TO do this very thing with its creditors.
But General Buffers scheme not only pro.
poses to redeem one promise with another
which Is never to be redeemed, but to redeem
promise which draws interest by one which does
not draw interest. To illustrate this, we will
suppose that General Butler holds q note against
Charles Sumner for one thousand dollars, pay.
able in two to five years, at the option Of the
maker, payable semi-arnually. The two years
are expired, and Mr.. Sumner goes to General
Butler and says-General, l am tired of paying
interest on that note, and wish to pay it, Gene
raj Butler replies, Very well, you have
right to take it up Mr.. Sumner
offers HIM his own note for the
to Mr. Sumner, Il have your promise to pay
already Ifyou wish to take up your note pay
me the money Mr.. Summer replies General,
l did indeed promise to pay you so many dollars,
Dut you know that one promise may always be
redeemed by another OF the same kind, unless 1t
Is otherwise expressly provided in the promise
General Butler replies. But this is not even a
promise OF the same kind; it promises no inte-
rest Mr.. sumner. with his accustomed good
nature, replies, Very true; but General Won
should understand that as the second nronoise
always cancels the debt, am no longer bound
to pay interest,""