Year: 1876

NOftn lnat tney WOul0 IesptCt anu Caiiy
out all the obligations involving the faith
and the organic law of the nation. But.
what do we see? At the first possible
moment and by the first practical method.
an appropriation is refused to meet interest
about to fall due upon bonds to which the
public faith is pledged in the following
words:


"Tbe faith OF the United States is hereby
pledged that the United States will, by proper
proportional appropriations as contemplated


in this act, and by causing to be levied upon
the property within said District such taxes as
will do so, provide the revenues necessary to
pay the interest on said bonds as the same
may become due and payable, and create
sinking fund for the payment of the principal
thereof at maturity"


The above is an extract from the act of
Congress June 20. 1874. and upon that act
and its binding force and effect upon the
Government, Attorney General Pierrepont
in an opinion recently given by him says:


"Here the Government of the United States
itself undertakes to provide the revenue neces-
sary to meet the interest as the same becomes
due, and to create sinking fund for the pay
ment Of the principal at the maturity of the
bonds without regard to the failure OF any
third party"


A failure to protect the interest-coupons
of these bonds is either bankruptcy or re
pudiation. 1t is not pretended that the
United States is an insolVent corporation.
No one pre;ends to believe anything OF
that sort It has not suffered any other of
its interest obligations to go to protest. 1t
is true they arc mostly protected by per
manent appropriations, and, therefore. be-
yond the reach of the arts of political dema-
gogues and tockjobblng lobbyists. No
doubt the Committee of Appropriations
would have dealt a similar blow to the
Pacific Railway Currency Skies if their
interest-coupons and checks were not pro-
vided for by permanent appropriations,
giving the Secretary the power to protect
the Governments faith out Of any money
in the Treasury. The faith of the United
States being pledged. as shown above. for
the payment of these bonds. principal and
interest, makes them, in every sense, a
Government security. They have fifty
years to run, and are exempted by
act of Congress forever from all tax,
whether Federal, State or municipal. Can
Congress so exempt any bonds but those
of the Government Has Congress the
power under the Constitution to prohibit
State OF municipality from taxing simple
municipal or corporation bond. Did it
ever, in any instance, assume such power?
Again, these bonds are registered and are
transferable at the United States Treasury
as are all other Government securities. Is
this the case with any other than Govern
ment bonds? The interest upon those
which are registered is remitted by the
checks of the Treasurer of the United
States to the owners Of these 800 bonds.
Is this the case with any but Government
bonds? In this light Congress is bound
in honor to appropriate the money to pay
the interest.


As VIC have already said, the refusal to
make such an appropriation is rank, fiat
reputation. 1t is making proclamation to
the financial world that the Democratic
House OF Representatives, the Democratic
party of the country, intends to repudiate
all financial obligations which are within
reach Of its power. 1t will be no excuse
to say that it is only one of the arts Of the
demagogue that it was done with knowl-
edge that Republican Senate would put
it into an appropriation bill and insist upon
IFS passage in conference committee. thus
leaving the Democrats with record for
economy with which TO go before the coun-
try. The dodge will be too trsnspar ent to
avail anything. What the demagogues in
this instance will denominate Economy"
will be read by the people "REPUDIA-
TIoS." This District has been largely
used for experimental purposes. it is true,
but heretofore the experiments have been
Both emancipation and negro suffrage had
their first trials here, and were both pro-
nOunCed by the voice Of the nation as good
things 10 be done, but we little thought
that this capital would ever be made the
theatre for the first attempt at national
repudiatioD. II the Democratic party OF
the country expect to make any political cap
ital out of this experiment, it will be most
wofully disappointed. The 3.G5 bonds

have been purchased largely for the in
vestment of small savings by the people of
the North upon the pledge of the public
faith. The small denomination of fifty dol
lars, in which many of them are issued,
and the long time they have to run (ffty
years. render them extremely attractive to
persons Of limited means, while their
exemption from taxation and the low price
at " hich they have been sold, make them
the most desirable security in many
respects tina: IS obtainable. This attempt
on the part of the Democratic House Com
miitees to repudiate their national charac-
ter bears with disastrous effect upon those
holders who belong to the poorer classes
of the people. 1t is specimen Of politi-
cal jobbery which will be very likely to be
remembered against the demagogues who
invented and the legislators who perpe-
tcl ~