THIRTY-EIGHTH CONGRESS, 1863-65. 697 



because of a purchase of bonds of the State of Arkansas. 

 If we purchased bonds that were not a sure investment, in 

 law, or rather in equity, we are bound to make it good. If 

 the United States, as a trustee, makes a bad inv^estment, she 

 must make that investment good. If the Senator held funds 

 for me, or if, as a guardian, he held funds for some of his 

 minor constituents, and made a bad investment, would he 

 not be compelled to make it up ? If he made a bad invest- 

 ment he would be compelled to make it good, unless he 

 used due care and acted under the direction of the court. 

 I admit, if entire diligence is used, perhaps he would not 

 be responsible in a court of equity. But I understand the 

 facts to be that the institution has lost nothing from the 

 Arkansas bonds. That has been made up ; they have been 

 paid, and there has been no loss resulting from that invest- 

 ment. 



Mr. Hale. The Senator is mistaken. 



Mr. Hendricks. I was so told the other day. I am not 

 fully informed, except as the committee were informed by 

 Professor Henry, who has this business in charge. That is 

 the way I understand it. The interest has been paid. 



Mr. Hale. The bonds have not been paid. 



Mr. Hendricks. Whether the bonds have been paid or 

 not is not important. We got gold, and were to use it, as 

 a trustee, to establish an institution that would be an orna- 

 ment to the country as well as useful to the world. Now, 

 sir, what is the obligation of the United States in respect to 

 that, a gold investment, endowing an institution, not for the 

 benefit of the United States, but for the benefit of mankind 

 generally? I understand the decision of the Treasury De- 

 partment has been that all trust funds are to be paid in gold, 

 and that all the debts against the Government prior to the 

 commencement of the war are to be paid in gold. 



Both the Senators have asked why we pay gold to this 

 institution when we pay greenbacks to the soldiers. Why 

 do the Senators agree, by their numerous votes here, to 

 pay gold to the men who buy the bonds of the United States? 

 Why do they make their investment worth twelve per cent., 

 when other men use their money for their own benefit but 

 to the extent of six per cent.? Why do they pay gold to 

 the creditors that they create now, not by |500,000 at a time, 

 but by $600,000,000 at a time, in gold? Let them answer 

 that. It is a question between them and the soldiers. They 

 pay the creditors of the Government in gold and the soldiers 

 in greenbacks. Both Senators unquestionably were governed 

 by proper considerations. I think it is a plain obligation 



