Year: 1869




currency. The object to be gained,
though worthy object, is not worth the
sacrifice.


X x x


1t is not the deprecated currency, but
the heavy annual interest on the debt,
that presses with such enormous weight
on the productive industry Of the coun-
try. We-the people--want to reduce
this burden of interest, and bring it
within manageable compass. This can
be done only by funding that portion of
the debt which is payable, and us it shall
become payable, at a reasonable rate of
interest; and it is now in our power to
take an important and decisive step in
that direction.


There will be, before the next session
of Congress, twelve or fifteen hundred
millions of five-twenties, payable at the
pleasure of the Government in legal ten
der notes, or whatever else the creditor
or the Government may, by mutual con-
sent prefer, and our people, at the polls,
and the Legislatures which they elect,
should call on their Representatives in
Congress to make provision at once for
its payment.


The Republican members Of Con-
gress, as far as l can judge by their
speeches and their acts, are disposed to
take no decisive step toward funding or
paying until they shall have, first made
gold and silver the only legal tender in
payment of debts. This would place
the nation at once in the power of the
bondholders, who might dictate their
terms. l am of opinion that the fund
ing cf the debt and the reduction of in
terest which is most Immediately press
ing, should be first disposed of-removed
out of the way-and afterward that the
resumption of specie payments be con
sldere6, or that question be left where it
belongs, to be settled by the law of trade
Whenever our currency under the ope-
ration of that law becomes equivalent to
gold, the question will be settled.


The act of February %, 1862, which
provides for the issue of the $500, ,000,-
600 of five twenties provides expressly
that Treasury notes which it also author
ICES "shall be receivable in payment of
all taxes, internal duties, excises, debts,
and demands of every kind due to the
United States, except duties on imports,
and of all claims and demands OF every
kind whatsoever against the United
States except for interest upon bonds
and notes, which shall be paid in coin I;
and shall also be lawful money and l2-
gal tender in payment Of all debts, pub
lie and private, within the United States,
except duties on imports and interest as
aforesaid.


This law is the authority of the Secre-
tary of Treasury to borrow the money.
Having defined his powers in this. it gives
him instructions as to the management
Of the finances; but these instructions
have nothing to do with the loan or the
contract with the creditor, no more than
the economical resolution of the ordinary
debtor has to do with his contract with
his creditor The creditor in either case
has much interest in the general good
financial management of his debtor, but
a departure by the debtor from his ex
pressed purposes is no breach of the con-
tract unless it be distinctly inserted and
expressed as a pledge, In this case the
United States borrows its own legal-ten-
der notes, and stipulates that the inter
est on the bonds which it exchanges for
them shall be paid iu gold, but the cred
itor is at the same time told, and it is
made part Of the contract, that when the
principal becomes payable at the end OF
five years, he must received in payment
legal-tender notes-precisely the char
acter Of funds which he lent, unless BY
new arrangement the creditor may give
him something which he perfers-aud
there Is no pledge contained IN the Las
or in the contract; unless raised by forced