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A Fiat Fib

A Fiat Fib image
Parent Issue
Public Domain
OCR Text

[Washington Telegram to Chicago Tribune] The report in Western Greenback organs that 7-30 treasury notos to the amount of $800,000,000 were iised ns legal tenders is emphntically denied by all the treasury officials iu a position to know anything of the subject. In order to verify the denial, a searching inquiry was made at the burean of the treasury which had to do with tho construction of the law under which these notos were issued, with the mechanioal work of preparing their issue, with the issue itself, and with the redemption of the notes, either by purchase or conversión. All of the nuthorities agrec that not a single dollar of the 7 30s was ever iegal-tender for any purpose, or that the Government ever received them in payment of any dues. The total amount authorized was 8800,000,000. The law ofïiüers who constructed the laws under whicn these notes were issued say that it is true that there was a ciause in the act which would have permitted the Secretary of the. Treasury to have treated thom as legal tenders. Yet the Secretary never availed himself of that discretiou, and the bonds were printed in a different form from that in which it would have been necessary to issue them had the Treasurer designed to give them a Iegaltender quality. To havo been made effective ánd lawfnl as legal tenders, the notes should have been issned with ; interest payable at maturity, or otherwise, were to be issued with semi-annual interest coupons. Not a singlo dollar was issued with interest payable at maturity. There were only two plates made for these notes - one to correspond with the earlier law, and the socond adapted to the later law, which gives the treasury the discretion to pay 6 per i cent. gold or 7 3-10currency. That was the difference in the tenor of the two plates. There were only two plates ever used, and they were plates of the coupon bonds. The bonds were all issued with iivo semi-annual interest coupon bonds, with the legend in the margin of the body of the note declaring that the last six inonths' interest is payable with the note, prior installments payable only on presentation of the coupons therefor. United States Treasmer Gilñllan, who was at that time Chief of the Loan División, says the records of his office conI firm this statement. McPherson, Chief of the Bureau of Engraving and PrintiDg, is authority for the statement from the records of bis bureau as to the foim in which the 7.30 notes were alone printed. The statement, therefore, by whomsoever made, that the 7.30 notes, or any portion of them, were issued by the Government as legal tenders, or treated j as sueh, receives the mest emphatic denial that it is possible for official authority to give.


Old News
Michigan Argus