Bonds issued.

are under no obligations to the holders of the bonds, but only to repay the United States, in the manner set forth in the acts of Congress.

THE FOLLOWING TABLE EXHIBITS THE NAMES OF THE COMPANIES TO WHICH
THE BONDS WERE ISSUED, THE AMOUNT, DATE OF ISSUE, AND TIMES OF
BECOMING PAYABLE.

Names of companies to which
the bonds were issued.

Amount is- Date of issue.
sued.

Payable.

Grants by United
States.

Security for repayment of bonds.

Interest payable January 1 and July 1.

These bonds were issued under the act of July 1, 1862, chapter 120, and the act of July 2, 1864, chapter 216, as amended by some subsequent provisions.

A right of way and certain public lands were thereby granted to the railroad companies, and provisions made requiring the Secretary of the Treasury to issue the bonds above mentioned to said companies, upon completing sections of their road, at the rate of sixteen thousand dollars per mile, except for certain parts more difficult of construction, for which they were to be issued at the rate respectively of thirty-two thousand and forty-eight thousand dollars per mile. The security of the United States rests upon the following provisions of law:

*

ACT OF JULY 2, 1862, CHAPTER 120.

SEC. 5. * * 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 thereon 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 Mortgage. whole line of the railroad and telegraph, together with the rolling stock, fixtures, and property of every kind and description, and in consideration of which said bonds may be issued;

And on the refusal or failure of the said company to redeem said bonds, or any part of them, when required so to do by the Secretary of the Treasury, in accordance with the provisions of this act, the said road, with all the rights, functions, immunities, and appurtenances thereunto belonging, and also all lands granted to the said company by the United States, which, at the time of said default, shall remain in the ownership of said company, may be taken possession of by the Secretary of the Treasury, for the use and benefit of the United States: Provided, This section shall not apply to that part of any road now constructed.

SEC. 6. And be it further enacted, That the grants aforesaid are made upon condition, that said company shall pay said bonds at maturity, and shall keep said railroad and telegraph line in repair and use, and shall at all times transmit dispatches over said telegraph line, and transport mails, troops, and munitions of war, supplies, and public stores upon said railroad for the Government, whenever required to do so by any department thereof, and that the Government shall at all times have the preference in the use of the same for all the purposes aforesaid, (at fair and reasonable rates of compensation, not to exceed the amounts paid by private parties for the same kind of service;)

Said

Road, &c., to be forfeited on fail

ure of company to redeem bonds.

Grants on condition that compa

nies shall pay bonds at matu

rity.

to be retained. Companies may

And all compensation for services rendered for the Gov- Compensation for ernment shall be applied to the payment of said bonds services to U.S. and interest until the whole amount is fully paid. company may also pay the United States, wholly or in part, in the same or other bonds, treasury notes, or other evidences of debt against the United States, to be allowed at par;

pay in treasury notes, bonds, &c.

after completion of roads 5 per

And after said road is completed, until said bonds and interest are paid, at least five per centum of the net earnings of said road shall also be annually applied to the payings to be applied

ment thereof.

cent. of net earn

to payment of bonds.

The lien of the United States is made subordinate to a Government lieu

and mortgage to be second and subordinate to a prior mortgage of same amount.

Only half of com

first mortgage authorized by the provisions of the act of July 2, 1864, chapter 216, as follows:

SEC. 10. And be it further enacted, That section five of said act be so modified and amended, that the Union Pacific Railroad Company, the Central Pacific Railroad Company, and any other company authorized to participate in the construction of said road, may, on the completion of each section of said road, as provided in this act and the act of which this is an amendment, issue their first mortgage bonds on their respective railroads and telegraph lines, to an amount not exceeding the amount of the bonds of the United States, and of even tenor and date, time of maturity, rate and character of interest with the bonds authorized to be issued to said railroads respectively.

And the lien of the United States bonds shall be subordinate to that of the bonds of any or either of said companies hereby authorized to be issued on their respective roads, property, and equipments, except as to the provisions of the sixth section of the act to which this act is an amendment, relating to the transmission of dispatches and the transportation of mails, troops, munitions of war, supplies, and public stores for the Government of the United States.

Section 5, chapter 216, act of July 2, 1864, provides— That only one half of the compensation for services renpensation for ser- dered for the Government by said companies shall be required to be applied to the payment of the bonds issued by the Government in aid of the construction of said road.

vices to U. S. to be

retained.

Balance to be paid to companies.

And the act of March 3, 1871, chapter 116

SEC. 9. That, in accordance with the fifth section of the act approved July two, eighteen hundred and sixty-four, entitled "An act to amend an act entitled 'An act to aid in the construction of a railroad and telegraph line from the Missouri river to the Pacific ocean, and to secure to the Government the use of the same for postal, military, and other purposes,' approved July first, eighteen hundred and sixty-two," the Secretary of the Treasury is hereby directed to pay over in money to the Pacific Railroad Companies. mentioned in said act, and performing services for the United States, one-half of the compensation at the rate provided by law for such services, heretofore or hereafter rendered: Provided, That this section shall not be construed to affect the legal rights of the Government or the obligations of the companies, except as herein specifically provided.

CHAPTER III.

UNITED STATES NOTES AND FRACTIONAL CURRENCY; DISTINCT-
IVE PAPER; EXCHANGE OF MUTILATED AND DEFACED NOTES,
ETC.

1. United States notes.

2. Old demand notes.

3. Fractional currency.

4. Distinctive paper for notes, bonds, &c.

1.

5. Regulations and instructions for re-
demption of mutilated and defaced

currency.

UNITED STATES NOTES,

Commonly called "LEGAL-TENDER NOTES," from being made by law a legal tender for debts; and "Greenbacks,' from the green color in which the backs have always been printed. They are issued under the following provisions of law:

ACT OF FEBRUARY 25, 1862, CHAPTR 33, SECTION 1.

Be it enacted by the Senate and House of Representatives of Acts of authoriza the United States of America in Congress assembled,

tion.

That the Secretary of the Treasury is hereby authorized First act. 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

Second act.

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 reissued from time to time, as the exigencies of the public interest shall require.

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, in addition to the amounts heretofore authorized, 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:

Provided, That no note shall be issued for the fractional part of a dollar, and not more than thirty-five millions shall be of lower denominations than five dollars.

And such notes shall be receivable in payment of all loans made to the United States, and of all taxes, internal duties, excises, debts, and demands of every kind due to the United States, except duties on imports and interest, and of all claims and demands against the United States, except for interest upon bonds, notes, and certificates of debt or deposit; 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 holder of said United States notes, depositing any sum not less than fifty dollars, or some multiple of