in the first of which Mr. SPAULDING affirms that the 5-20 bonds are payable principal and interest in gold. On the strength of your article in February we have confidently contended that the 10-40 bonds offered an advantage over the 5-20's in this par ticular. Mr. SPAULDING says he introduced the bill authorizing the 5-20 bonds, and he probably is correct in his statement. Would'nt it be well, in the next number of the MAGAZINE, to notice the apparent inconsistency between the article in February and Mr. SPAULDING's letter? Respectfully yours, O. C. & K. I. Of course, by publishing Mr. SPAULDING's letters, we do not endorse everything in them. Many of his statements we should take exceptions to, but, at the same time, what he writes contains much wholesome truth snd sound doctrine. Yet, when he tells us that a certain act of Congress has in it certain provisions, the only way to determine whether he is correct or not is simply to look at the act itself. We would suggest to our corrospondent that his difficulty would have vanished had he adopted this course. II. The act under which the 5-20's were issued is the one approved by the President February 25, 1862, and is entitled "An Act to authorize the issue of United States notes, and for the redemption or funding thereof, and for funding the floating debt of the United States."-Section 2 of this act is as follows: Sec. 2: And be it further enacted, That, to enable the Secretary of the Treasury to fund the Treasury-notes and floating debt of the United States, he is hereby authorized to issue, on the credit of the United States, coupon bonds, or registered bonds, to an amount not exceeding five hundred millions of dollars, redeemable at the pleasure of the United States after five years, and payable twenty years from date, and bearing interest at the rate of six per centum per annum, payable semi-annually And the bonds herein authorized shall be of such denominations, not less than fifty' dollars, as may be determined upon by the Secretary of the Treasury. And the Secretary of the Treasury may dispose of such bonds at any time, at the market value thereof, for the coin of the United States, or for any of the Treasury-notes that have been, or may hereafter be issued, under any former act of Congress, or for United States notes that may be issued under the provisions of this act; and all stocks, bonds, and other securities of the United States held by individuals, corporations, or associations, within the United States, shall be exempt from taxation by or under State authority. Certainly there is nothing in this section making any provision respecting the payment of these bonds either principal or interest; and if our correspondent will carefully read the act, from beginning to end, he will find that in no part of it is it stated that the principal of the bonds shall be finally paid in coin: and that is all we asserted in the February number, and we now re-assert it, and challenge any one to point out any such provision. But we might go one step further than we then did; for it is very evident, we think, that not only does the law not contain any provision that the principal shall be paid in gold, but, more than that, by providing that United States notes shall be a legal-tender in payment of "all claims and demands against the United States, except for interest upon bonds and notes, which shall be paid in coin,” it clearly contemplates that the principal of the bond will be finally paid in legal tenders. The first section of the act authorizing these 5-20's, is as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, 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 Trea. sury 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 17th, 1861; 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. It must be remembered that this is the first section of the very same act, the second section of which (given above) authorizes the issuing of these 5-20 bonds. Could anything be plainer than that the law contemplates the payment of the principal of these bonds in legal-tenders? Only consider for a moment the words used. After creating the notes, it provides that "such notes * * * shall be receivable in payment 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 then, lest that provision might not be broad enough, adds-" 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." We cannot conceive of words which could more clearly state that the principal of the bonds, authorized by the very next section, is to be paid in legal-tenders. Besides, the exception added, as to the payment of interest, makes it impossible to interpret the words in any other manner. In fact there is not room even for a doubt; and until, therefore, our correspondent offers us something more than the mere assertion of Mr. SPAULDING, we shall be compelled to believe that, by the terms of the act, the principal of these bonds is payable in legal-tenders. In this connection it may be of interest to state that, since the passage of the law we have been considering, five others have been passed by Congress respecting United States notes, in each of which a provision somewhat similar to the one we have been commenting upon is contained. The 20th section of the Banking Law also by its terms makes the debt of the United States payable in National Bank notes. As, therefore, the 5-20 act contains no provision making the principal of these bonds payable in coin, we do not see why such principal may not be paid in the notes of National Banks. The following is section 20th of the Banking Law (for copy of the whole law, see Merchants' Magazine for April, 1863): SEC. 20. And be it further enacted, That after any such association shall have caused its promise to pay such notes on demand to be signed by the president, vicepresident, and cashier thereof, in such manner as to make them obligatory promisory notes, payable on demand, at its places of business, such association is hereby authorized to issue and circulate the same as money; and the same shall be received at par in all parts of the United States in payment of taxes, excises, public lands, and all other dues to the United States, except for duties on imports, and also for all salaries and other DEBTS and demands OwING BY THE UNITED STATES to individuals, corporations, and associations within the United States, EXCEPT INTEREST ON PUBLIC DEBT; and no such association shall issue post notes or any other note to circulate as money than such as are authorized by the foregoing provisions of this act. III. It must be remembered, however, that the question we are discussing is not whether these 5-20 bonds will be paid in coin or legal-tenders or National Bank notes, but whether the act directs that they shall be paid in notes or coin. Most likely they will not be redeemed until the age of greenbacks and National Bank notes has passed away: then, of course, they will be paid in coin. Nor do we consider that the intentions of the Secretary of the Treasury in regard to the matter, affect the question at all. Many persons have written letters to the Secretary about the payment of the principal of these bonds, and have received replies. Did we suppose that he was always to fill that position those letters might be of interest: but not even then in this discussion, since our only inquiry is in regard to the provisions of the act, and not the action of officials under it. As to the 10-40 bonds, only a word is necessary. By the terms of the act authorizing the issuing of these bonds, the principal and interest are both payable in coin. A copy of the act itself may be found in the April number, page 317, to which we would refer our correspondent. Commercial Chronicle and Review. COMMERCIAL CHRONICLE AND REVIEW. 453 UNITED STATES PUBLIC DEBT-INTEREST ON SAME, AND RATE OF INCREASE-GOVERNMENT ISSUES OF THE financial situation continues to turn, as a matter of course, upon the large operations of the Treasury Department. At the date of our last there was a good deal of money pressure growing out of the movement to sell exchange and gold. This pressure has passed away, and money has become very plenty without, however, bringing with it much relief to the Treasuary, the general policy of which continues to be to borrow at a cheap rate of interest. The periodical returns of the public debt are the best key to the general movement. These returns are not made at regular intervals but appear occasionly. The last five are as follows: UNITED STATES PUBLIC DEBT. 50,000,000 50,000,000 6 do 20 yr, exc 1,227,000 1,935,500 3,857,500 3,903,000 6 do Oregon... 1,016,000 1,016,000 1,016,000 1,016,000 1.016,000 73-10 8 y. 7-30 139,536,450. 138,772,300 138,063,800 136,141,850 136,096,350 Total in coin. $761,805,301 $769,154,251 $769,227,504 $812,836,168 $817,089,112 Tot'l in pap'r $219,274,354 $272,329,760 $309,416,959 $104,191,935 $405,525,023 U. S. Notes... $450,785,004 $449,119,548 $449,073,616 $441,254,390 $441.224,017 164,150 7,830,817 19,173,320 143.300 46,971,278 Total no int. $490,419,355 $477,860,235 $515,361,515 $509,220,313 $508.216,790 Grand total 1,473,225,714 1,513,702,837 1,596,999,429 1,726,248,411 1,730,870,926 The aggregate increase of debt was, it appears, from Feb. 2 to May 14, as follows: This increase of debt is at the rate of $2.525,933 a day, or, in round numbers, 1,000 millions per annum. The increase, however, appears to be irregular. It has been, at the different periods when official statements have been given, as follows: According to the average increase of the 102 days up to May 14, the debt July 1 will be as stated. The mode in which the money has been raised since Feb. 2, is seen by comparing the figures of the first and last columns of the table. These show results as follows: Thus of the whole increase, only $56,700,772 was from sales of permanent stock; the remainder was from issues of paper currency, the increase and importance of which may be more generally illustrated by bringing forward the table that appeared in our last, of the government issues of paper money, corrected by the last official tables that have been published as follows: $5,860 18,745,720 563,873,159 14,600,000 19,173,330 598,428,360 19,981,240 640,957,856 Dec 1 418,245,931 Jan 1 421,836,781 $50,000,000 Feb 1 450,785,004 50,000,000 March 1 449,119,548 95,502,031 66 15 449,073,616 115,581,414 April 1 449,073,616 115,581,414 $29,801,536 26,520,000 20,547,173 685,696,340 20,825,923 683.944,827 Thus the increase of currency since July last year, has been $300,000,000, or $30,000,000 per month, a million per day; and this constitutes about one half of the aggregate increase of the government debt. The National Banks have, in the same period, added about $16,000,000 to the currency, the amount of the |