of the terms
"coupon bonds" and that it, would mean bonds bearing interest from the
time of issuing the same. And under this act considered by itself the
creditors would have a right to require such bonds. But your inquiry in
regard to a class of bonds on which no interest is to be paid or shall
begin to run until January 1, 1860, is whether the Act of February 18,
1857, would not authorize you to refuse to give bonds with any coupons
attached payable before the first day of July, 1860. We have very maturely
considered this question and have arrived at the conclusion that you have
a right to use such measures as will secure the State against the loss of
six months' interest on these bonds by the indefiniteness of the Act of
1859. While it cannot be denied that the letter of the laws favor the
construction claimed by some of the creditors that interest-bearing bonds
were required to be issued to them, inasmuch as the restriction that no
interest is to run on said bonds until 1st January, 1860, relates solely
to the bonds issued under the Act of 1857. And the Act of 1859 directing
you to issue new bonds does not contain this restriction, but directs you
to issue coupon bonds. Nevertheless the very indefiniteness and generality
of the Act of 1859, giving no rate of interest, no time due, no place of
payment, no postponement of the time when interest commences, necessarily
implies that the Legislature intended to invest you with a discretion to
impose such terms and restrictions as would protect the interest of the
State; and we think you have a right and that it is your duty to see that
the State Bonds are so issued that the State shall not lose six months'
interest. Two plans present themselves either of which will secure the
State. 1st. If in literal compliance with the law you issue bonds bearing
interest from 1st July, 1859, you may deduct from the bonds presented
three thousand from every $100,000 of bonds and issue $97,000 of
coupon bonds; by this plan $3000 out of $100,000 of principal would be
extinguished in consideration of paying $2910 interest on the first of
January, 1860--and the interest on the $3000 would forever cease; this
would be no doubt most advantageous to the State. But if the Auditor
will not consent to this, then, 2nd. Cut off of each bond all the coupons
payable before 1st July, 1860.

One of these plans would undoubtedly have been prescribed by the
Legislature if its attention had been directed