Construction of the road was financed primarily by 30-year, 6% U.S. government bonds authorized by Sec. 5 of the Pacific Railroad Act of 1862.
Sec. 10 of the 1864 amending Pacific Railroad Act (13 Statutes at Large, 356) additionally authorized the company to issue its own "First Mortgage Bonds"[REF] in total amounts up to (but not exceeding) that of the bonds issued by the United States.