UNITED STATES NOTES AND BONDS.

IN

N the preparation of the following digest of the laws of the United States relating to the issue and redemption of United States notes and bonds, it was not deemed necessary to cite any legislation prior to 1861. The amount of national obligations assumed to be yet "outstanding" that were authorized by acts prior to 1861, is unimportant, and it is moreover believed that a large proportion of such notes and bonds has been destroyed and lost. As far as the public have any real interest in the laws relating to the national debt, it is confined exclusively to the war debt created since 1860 and to the Pacific Railroad debt created since 1862.

None of the laws, except a few of the most important, such as the "Sinking Fund Act," the "Public Credit Act," the "Specie Resumption Act" and a few others, are given in full, as the details of printing, issuing, signing, and a multitude of other minor provisions, are not deemed pertinent to the greater questions of the contract between the government as a borrower and the note and bond holders as creditors, nor to the legal-tender character of notes intended to circulate as money. But the object in this division of the compilation of laws has been to give all the clauses in the acts of Congress which have any important bearing on the character and redemption of the obligations of the United States issued since 1860.

Act June 22, 1860.

[This act authorized the issue of $21,000,000 of 6 per cent bonds. to be used in the redemption of outstanding treasury notes.]

Act December 17, 1860.

That the President of the United States be authorized to cause treasury notes to be issued for such sums as the exigencies of the public service may require, but not to exceed at any time the amount of ten millions ($10,000,000). That such notes shall be redeemed after the expiration of one year. They shall bear interest, 6 per cent per annum.

Act February 8, 1861.

That the President of the United States be authorized to borrow, on the credit of the United States, a sum not exceeding twenty-five millions ($25,000,000). That stock shall be issued for the amount so borrowed, bearing interest not exceeding 6 per centum per annum, and to be reimbursed within a period not beyond twenty years and not less than ten years.

Act March 2, 1861.

That the President of the United States be, and hereby is, authorized, at any time within twelve months from the passage of this act, to borrow, on the credit of the United States, a sum not exceeding ten millions of dollars: Provided, That no stipulation or contract shall be made to prevent the United States from reimbursing any sum borrowed under the authority of this act at any time after the expiration of ten years from the 1st day of July next, by the United States giving three months' notice, to be published in some newspaper published at the seat of government, of their readiness to do so; and no contract shall be made to prevent the redemption of the same at any time after the expiration of twenty years from the said 1st day of July next, without notice. That stock shall be issued for the amount so borrowed, bearing interest not exceeding 6 per cent per annum.

Act July 17, 1861.

That the Secretary of the Treasury be authorized to borrow, on the credit of the United States, within twelve months, a sum not exceeding $250,000,000, for which he is authorized to issue coupon bonds or registered bonds or treasury notes in such proportion as he may

deem advisable. The bonds to bear interest not exceeding seven per cent per annum, payable semi-annually, irredeemable for twenty years, and after that at the pleasure of the United States, and the treasury notes to be of denominations not less than $50, payable three years after date, with interest at the rate of seven and threetenths per cent per annum. And the Secretary may also issue, in exchange for coin, treasury notes of a less denomination than $50, not bearing interest but payable on demand at the assistant treasuries of the United States or treasury notes bearing interest at the rate of 3.65 per cent per annum, payable in one year from date and exchangeable at any time for treasury notes (7-30s) for $50 and upward.

That the Secretary is authorized, whenever he shall deem it expedient, to issue, in exchange for coin or in payment of public dues, treasury notes of any of the denominations hereinbefore specified, bearing interest not exceeding six per cent per annum, and payable at any time not exceeding twelve months from date; that the amount of notes so issued shall at no time exceed $20,000,000.

Act August 5, 1861.

That the Secretary of the Treasury is authorized to issue bonds of the United States, bearing interest at six per cent per annum, and payable at the pleasure of the United States after twenty years from date. If any holder of treasury notes bearing interest at the rate of seven and three-tenths per cent per annum desire to exchange the same for said bonds, the Secretary may, at any time before the maturity of said treasury notes, issue to said holder, in payment thereof, an amount of said bonds equal to the amount due on said treasury notes; nor shall the whole amount of such bonds exceed the whole amount of treasury notes bearing seven and three-tenths per cent interest issued under said act (of July 17, 1861).

Act February 12, 1862.

That the Secretary of the Treasury, in addition to the $50,000,000 of notes payable on demand of denominations not less than five dollars, authorized by the acts of July 17 and August 5, 1861, is authorized to issue like notes to the amount of $10,000,000— said notes shall be deemed part of the loan of $250,000,000 authorized by said acts.

Act February 25, 1862.

That the Secretary of the Treasury is hereby authorized to issue, on the credit of the United States, one hundred and fifty millions of dollars of United States notes, not bearing interest, payable to bearer, at the Treasury of the United States, and of such denominations as he may deem expedient, not less than five dollars each: Provided, however, That fifty millions of said notes shall be in lieu of the demand treasury notes authorized to be issued by the act of July seventeen, eighteen hundred and sixty-one; which said demand notes shall be taken up as rapidly as practicable, and the notes herein provided for substituted for them: And provided further, That the amount of the two kinds of notes together shall at no time exceed the sum of one hundred and fifty millions of dollars, and such notes herein authorized 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 against the United States of every kind whatsoever, except for interest upon bonds and notes, which shall be paid in coin, and shall also be lawful money and a legal tender in payment of all debts, public and private, within the United States, except duties on imports and interest as aforesaid. And any holders of said United States notes depositing any sum not less than fifty dollars, or some multiple of fifty dollars, with the Treasurer of the United States, or either of the assistant treasurers, shall receive in exchange therefor duplicate certificates of deposit, one of which may be transmitted to the Secretary of the Treasury, who shall thereupon issue to the holder an equal amount of bonds of the United States, coupon or registered, as may by said holder be desired, bearing interest at the rate of six per centum per annum, payable semi-annually, and redeemable at the pleasure of the United States after five years, and payable twenty years from the date thereof. And such United States notes shall be received the same as coin, at their par value, in payment for any loans that may be hereafter sold or negotiated by the Secretary of the Treasury, and may be re-issued from time to time as the exigencies of the public interest shall require.

That to enable the Secretary to fund the floating debt of the United States he be authorized to issue, on the credit of the United States, bonds to an amount not exceeding $500,000,000, redeemable at the pleasure of the United States after five years, and payable twenty years after date, bearing interest at the rate of six per cent per annum.

Sinking Fund Act, February 25, 1862.

That all duties on imported goods shall be paid in coin, or in notes payable on demand, heretofore authorized to be issued and by law receivable in payment of public dues, and the coin so paid shall be set apart as a special fund and shall be applied as follows:

First, To the payment in coin of the interest on the bonds and notes of the United States.

Second, To the purchase or payment of one per centum of the entire debt of the United States to be made within each fiscal year after the first day of July, 1862, which is to be set apart as a sinking fund, and the interest of which shall in like manner be applied to the purchase or payment of the public debt as the Secretary of the Treasury shall from time to time direct.

Third, The residue thereof to be paid into the Treasury.

Act March 17, 1862.

That the Secretary may purchase coin with any of the bonds or notes of the United States authorized by law, at such rates and upon such terms as he may deem most advantageous to the public interest.

(By Sec. 2 of this act, the demand notes authorized by the acts of July 17, 1861, and February 12, 1862, are declared lawful money and a legal tender, same as the treasury notes issued under act of February 25, 1862.)

Pacific Railroad Bonds, Act July 1, 1862.

SEC. 5. That for the purposes herein mentioned the Secretary of the Treasury shall, upon the certificate in writing of said commissioners of the completion and equipment of forty consecutive miles of said railroad and telegraph, in accordance with the provisions of this act, issue to said company bonds of the United States of one thousand dollars each, payable in thirty years after date, bearing six per centum per annum interest (said interest payable semi-annually),* which interest may be paid in United States treasury notes or any other money or currency which the United States have or shall declare lawful money and a legal tender, to the amount of sixteen of said bonds per mile for such section of forty miles; and to secure the repayment to the United States, as hereinafter provided, of the amount of said bonds so issued and delivered to said company, together with all interest therein which shall have been paid by the United States, the issue of said bonds and delivery to the company shall ipso facto constitute a first mortgage on the whole line of the