Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-04-13
NATIONAL CURRENCY. &c.
LETTER

LETTER
From The Secretary IF she Treasury 10 the Choir.
man Of the Committee on the National C1nren
cy III reply 10 inquiries By said Committee as "a
me Prdehcd6f6ty and erpediency of collecting
the dies # Government in aoH sl1er and co6
PER coin, treasury notes, and the notes of such
banks as pay specie. for their bills.
Treasury Department, 1911 March. 1916
SIR,
have the honor to acknowledge the receip,
oil your letter dated tn: 5th list making the fol.
lowing enqiri s. on behalf of the committee on the
| National Currency
lst "is IT practicable expedient, at present. tn
collect The dues OF government in geld, silver aud
copper coins, treasury notes. and the notes nj
s'i' banks as pay specie for their bills %
"a " III tins be not practicable expedent at pre-
sent, wren ought an act directing the dues ofeo
ernmen To b. so prid, to go into effect, and what
Ought 10 be the provisions of ssch an act %
Sd. " ould it be expedent, after the LIST of Ne
vember next or a any other time, to increase the
dates on stamps on the notes OF such banks as do
not pay in specie 20
4'h. Are there any other measures that it would
be expedent to resort to for that purpose ~
AS brief consideration OF the general subject oil
your letter will afford the best foundation for speci
hc answers to the questions which have been propos
ed. pray the indulgence of the committee in the
adoption OF that course.
When the banks, during the summer of 1914 sus-
pended the payment of their in CON- the trea-
sury notes which had been issued were manifestlv
incompetent. both in amount and credit to const;
tute substitute for the metallic currency de
ciaraton, therefore, at that time, that the govern
nent would only accept, in payment of the reve--
nue., gold and silver, treasury notes or bank notes
payable on demand in coin, would have been equiya-
lent To DENIAL OF the means Tor paying the duties
and taxes at the very crisis that rendered indispen
sable strict enforcement of the obligation to paw
them. Nor could such declaration have been
properly applied to the loans which the necessities
| OF the treasury required. A subscri,ton in coin
was not to be expected subscription in treasury
notes could not yield any active AID for general pur
poses; and consequently sab cription in the local
curTencies OF the several States must have been
templated as the chief resource for procuring the
public supplies, as well as for dschargng the pub
hc engagements. Under a sense, therefore. Of the
necessity which seems, for a time to have recon.
c'led the whole nation to the suspension of nav
ments In coin, the Treasury continued to receive
bank notes in satisfaction OF every public claim and
demand and Congress after session Of sin months
ADJOURNED on the s. of March, 1915, without init
mating any objection, or makiDg any provision upon
the subject
The same state ofthings continued throughout the
year 1915 in the annual estimates communicated
to congress- at the present session. was stated that
IN aggregate amount which would probably be re-
aizedand received at the treasury during 1915,
from revenue ami loans, might be placed AT the Sill
OF about S 100000. But the gross amount of
treasury notes issued and unredeemcd in 1915.
could not he averaged higher than $4,000 900 !:
aud the amount in actual circulation must he taken
az much less sum for whenever and wherever
the treasury notes rose to par, ard above par thew
were for obvious reasons With ed from the ordins-
ry uses in exchange. Nor was it in the power of
the treasury Is augment the issue Of treasury notes
beyond the immediate demand for fiscal purDoses
reasury notes have not hitherto been regarded by
the law substitute for the national currency and
q ~ I'm l.cttf f- .f,r
auxiliary for supplying the occasional deficiencies of
the revenue. In TIE New FL gland states alone. the
banks still protested to pay their notes upon demand
m gold and silver but in fact the issues of bank
notes IN that quarter have proved inadequate to
meet the wants OF the community and the revenue
IS almost entirely collected in treasury notes which
nave been purchased at q considerable discount
1t is certain therefore, that neher treasury notes
nor circulating coin, nor the notes OF banks paving
!" coin, could furnish, in 1915, sufficient medium,
tn satisfy the amount of the duties taxes and loans
Tor the year. But 1t is important here to add that
while the interior of the country was as destitute of
currency IN coin, rs the cities and towns upon the
Atlantic, the treasury note medium was, in effect
monopolZed by the commercial cities and the To-
cal banks FURNISHED all the means which the planter
or the farmer could collect for the payment of his
rent or his tax.
During the year 1915, the effects offhe late war
upon public and private credit, were still felt and
the extraordinary event, which involved Europe in
new conflict, threatened n continuance o. the drain
upon our gold and silver TO BE- augmented accord
ing to general apprehension, by the force Of an
uhtayorable balance of trade. Under such circum-
stances, the restoration OF the national currency of
coin, could not to be desirable but it must
become more difficult in the accomplishment The
alternative issue of the measure deserved, there
tore, the most serious consideration and il was Tn
be determined, not only upon views Of fiscal inter
est and accommodation, but upon principles OF natl
onal policy and justice. The Consequence of reject.
ing ba notes, which were not paid on 1ernand in
coin, (ifsuch payments were not thereby rendered
general) must have been 10 put ut hazard the col
lection ofthe revenue, in point OF time and in point
ofProduct; todeteriorate OF not to Destroy the on
ly adequate medium Of exchange, adopted by the
common consent Of the nation, in case ofextrene
necessity and, in short, to shake the very fnunda.
tons Of private property The powers Of the trea-
sury department were granted, for purposes con-
tcmpated by the Legislature in making the grant
but Il is not believed, that attended with cir
cumstances 50 extraordinary, embracing interests
50 extensive, and involving consequences ~ itnpor-
tant, was, any time anticipated by the legislatures
or that It cond be properly subjected to any Ohor
than the legislative agency. Having, therefore,
made several Intellectual attempts to relieve the
public enbarTassments, Il was deemed the duty Of
thedepartmant tn repose with confidence, upon the
wisdom and authority Of Congress, FOR the applcad-
on OF remedy suitable to the malafy OF the times
The period has arrived, when such remedy
may be safely and surely applied The opinion ex-
pressed In the treasury report Of the 9Th N Dcccn