Year: 1868

stituted for the bonds already due an,


payable in currency. Five hundred mil
lion dollars of the fve-twenty bonds, tha


were payable by the express terms of tn


act of 1862 in currency, are now due ant


payable at the Treasury, the five years


option having expired. How are they t,


be paid? Ii they are payable in currency


what is the object of imposing a vast coir
debt upon the Government now at thi


late day? If by the terms of the contrac
they were payable in currency, why nov


issue new set Of bonds payable in coin


running long period of years, and thus


substituting a debt payable in coin for one


clearly payable in currency? The ques.


ton is, what was the contract with the


public creditors? Not what broker Of
banker might say, or what might be ad.


vertised in newspaper by brokers ano


bankers, whose only object was to make
sales for the sake Of their commission.


One of the arguments used on this ques.
ton is, that if the debt were paid in legaI
tender notes it would depreciate the credit
of the Government, and that the green
backs would become deprecated and com.
paratively worthless. That argument
proceeds upon the assumption that debt
of the Government, while bearing inter-
est, will preserve the credit Of the Gov
ernment; but that non-interest- bearing
debt will destroy its credit. 1 presume
that scarcely any one will question the
fact that the credit of Government de-
pends upon its ability and its willingness
to discharge its just obligations. First
ascertain what its just obligations are, and
then show willingness to discharge them,
and you need not fear that the credit of
the Government will suffer. I deny the
fact that it would follow as consequence
Of the substitution of the non-iuterest-
bearing debt for interest bearing, provid-
ed such were the terms of the contract,
that the credit of the Government would
suffer. On the contrary, believe that it
would be increased. If the debt could be
discharged by legal tenders, so far from
disturbing, it would only improve the f.
1ancial condition of the country.


There is no reason that can be urged
Why the Government should be held to
liferent rule in the .payment Of these fze--
iopts IN dealing with ever other credltoF.
The Government contracts to pay its ju-
liciary SO much money. The judiciary
eceives it in legal tender notes, and does
lot pretend that the Government violates
is faith. It contracts to pay its army so
much money. The army receives it in
egal tender notes, and sets up no pre-
ence that the faith of the Government is
broken. And thus the Government deals
With every single creditor it has, great or
small and we hear no complaint of vio-
alton of faith except coming from the
oondholders or their advocates. If we
lad contracted in the act of February,
1862, to pay the loan in gold, why we
should pay it in gold. II it is perfectly
,lear that we contracted to pay it in cur
'ency, the holders Of the loan have no just
cause of complaint if the Government does
Jay 1t IN currency.


Now, sir, we have had great deal of
discussion in the House tonight, and
'ome before, as to the taxation of Govern
nent bonds. 1t is part of the inherent
power of Congress, given to it by the Con-
to levy tax for the support of
he Government, and to suppose for one
moment that one Congress could bind a
Congress as to any article to
oe taxed, whether Government bonds or
anything else, would be to any one who
lad ever examined the Constitution at all,
,r the workings of this or any other gov
the very height Of absurdity.
It would enable one Congress, as was very
Justly said by distinguished gentleman
rom Pennsylvania, by exempting every
hing from taxation, to put an end to any
Government. The right is unquestioned;
md while an exception is made in the acts
of Congress exempting the Government
bonds from State or municipal taxation.
10 pretence is set up to exempt them from
he power of taxation of the United States,
whether the tax should be upon the prin-
,ipal or upon the interest, or upon both,
IS, perhaps, not very material matter.
That they should bear their fair share Of
;he burdens of the Government is now al
most concessuna in this country, and is
sustained by every principle Of
aw and justice


But the great principle to be kept in
view, as was said by the gentleman from
MIR. Butler. is the equal
ization of three burdens It is the correct
principle at last, that all classes and all
property should bear their fair and just
share of the burdens of the Government


Sir, it has been sometimes argued by
gentlemen that any material addition to
the currency of the country would exer-
else an injurious effect upon the value of
that currency. This is not so. More
than one-half of the country is this day
without enough currency to transact their
ordinary business. The business of the
would absorb and use proftably
a great deal more currency than we now
have.


Mr.. BuRLE1GH Will the gentleman
allow me to ask him question?


Mr.. STONE. Yes, sir.


Mr.. BURLE1GH. | desire to inquire il
understood the gentleman correctly when
l understood him to say that after the