Year: 1868

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 of the existing law as makes United States notes legal tender in payment of debts. The duties on imported goods and interest on the public debt are, by law, excepted from the legal tender clause; this implies that the principal of the debt is not excepted, and the construction drawn from the payment of previous loans in gold is answ cred by tho fact that the act under which these bonds were issued express ly declares that note 'shall. be lawful money as well as gold, and shall be re- ceivahlc in payment of public debts. The argument that q construction was put upon the law by agents of the United States is answered by tue fact that this was not a mutual construction recognized by both parties as part of contract, but was rather an opinion based upon supposition of a state of facts which did not actually exist.

 It is clear that if the bonds are pay able when due in legal tenders, they are redeemable after five years from date in the same kind ofmoney. The word payable implies duty or obli- gation, which must be performed at the time stipulated. The word re- deemable implies discretionary pow CT, which may or may not be exercised, but the same kind of money in the same mode tendered, will redeem a note or pay note.

 The committee have deemed i. their duty to present the argument in favor of redceming the bonds in legal tender notes, for it cannot be concluded that this construction has been adopted by many who disclaiin all purpose to evadc public engagements. Still the admitted part remains that these bonds were taken up on the supposition that this was expressly declared by author- ized agents of the Government in the negotiation of the loan; that such dec- laration must have been known by Congress, and that il was sanctioned by three successive Secretaries of the Treasury i; that upon the face of it the bonds have been continually of a high CT market value than notes; and pub lie sentiment, both in this country and in Europe, would regard it as breach Of public faith.

 The public credit is of so sensitive q quality that time cannot restore it when impaired. it is better far to forego a doubtful privilege in the judgment of impartial men; we have no right to exercise it, but it should be promptly removed The discussion of the ques- ton manfestly impairs public credit until it is settled. No new loan can be negotiated; the public mind be- comes accustomed to the idea of re- pudiation, and the widest schemes of paper money of the days of the George Law, poison the foundation of public and private credit.

 The committee has beeu provided by Congress, by joint resolutions which declare that the five-twenty bonds are redcemable only in gold. This, i'm stead of settling the question, will on- ly create divisions and parties, and the resolution when passed will be the subject of agitation and repeal.

 These considerations induce the com mittee. without deciding the question:, propose substitute of new bonds, clear and explicit in their views. for the five-twenty bonds as they become redeemable. This exchange must de- pend on the debt, public or private. This provision was adopted with ex- treme reluctance, and under pressure of an overwhelming necessity. 2

 The committee having stated their views upon the difficult propositions of the bill, they consider this measure as embracing all the financial meas- ures demanded by the public interest, but they present it in the hope that they may not be embarrassed by other financial problems not exciting general discussion.

 MR. AND MRS. DAvIs.-Among the