The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-06-07
Treasury DEPARTMENT,

Washington, May &c. lS43,
SIR; received, in due course, your letter of the
18th instant giving notice that the Bank Of New
York did, the 18th Of February last purchase for
cash two Treasury notes. dated 3lst March, 1912,
for one thousand dollars, and the other dated 9Th
February, 1912, for fifty dollars, both Of which GU
stated had no appearance OF cancellation. You say
the Bank claims payment Of these notes, not be-
levng that the pledge Of the public faith and credit
on the face of the notes inviting confidence, will be
permitted to interfere with what the Bank considers
its just due" And you ask directions to be given
that the aforementioned notes be paid.
| have delayed an TO your communica tion
10 enable me to become acquainted with the facts of
the case, which Investigations here at New Orleans,
and al other places, pending at the time Of the re-
ceipt of your letter, might furnish.
am Entirely satisfied that the notes you de-
scribe were contained in package made up at the
custom-house in New Orleans OH the Goth July last,
consisting of Treasury notes which had been presented
to that office in payment of duties, and had been
ceiyed by the officer of the Government authorized
TO receive them The evidence is very satisfactory
to show that at the time of presentation the of
the persons presenting them endorsed upon the
backs of the notes under a receipt acknowledging
payment Of the principal and Interests and that the
notes were further cancelled by having written on
their faces, in large and strong hand, the word
cancelled" II would that the package was
duly secured in the usual way and directed to the
First Auditor the Treasury but that before reach
ing the Post Office it was stolen by clerk in the
nl-house Many Of these notes have been again
ceiyed at the same custom-house, and by other pub
lie receivers. Those which have been found X
hlbited at this d partment contain very slight indi
cations OF having been cancelled and in many
it exceedingly difficult il not impossible, to trace
any such indications. Yet they bear evidence of
having been tempered with, particularly by dingy
appearance of the red vignette on their backs The
experiments Of chemists have shown that any writing
fluid which has yet been discovered be extracted
the paper which it has been written by acids
other preparations, which can be applied as not
10 leave trace Of the original marks, and at the
same time leave untouched and perfect any other
writing and any impression Of engraving which it
may be desired to retain. That such process has
been applied to the note. in question: have little
doubt from an inspection of those that have been
here OF course these notes altered and
forged, and can have legal validity.
Two of these notes, as you state, have become the
property of the Bank of New York, by fair purchase,
one of them before it became due the other after;
and you ask that they may be paid.
How far " the public faith and credit" has been
pledged on the face Of these notes. inviting confidence,
when the public agents have adopted means to de-
s,roy that pledge ehectua than those that are
ordinarily employed by individuals in reference TO
their paid and discharged obligations, is not ques-
ton as il seems to me- for my decision The Secre-
try of the Treasury, like all other Executive officers
Of this Government, acts under certain specific and
limited powers defined by law and he more tram
scend those powers than any other officer. The laws
authorizing the issue of Treasury notes direct him TO
redeem them presentation, after they become due,
and provide that they shall be received in pay ment for
dues to the United States. To enable the Secretary to
redeem them appropriation Of money in the Trcasu
~ has teen made. This appropriation IS applied to
the notes returned by the Receivers of public mo-
ney having been paid by them, as well as TO those
presented directly to the Treasury for payment. IT,
them this appropriation has once been applied TO a
given note by paying and extinguishing 1t, the law,
making that appropriation, has performed It's office,
and las no longer any force. The principle may, per-
haps be more readily perceived, by applying II to the
whole amount of Treasury notes outstanding, and
uppOsing that they had been paid of directly at the
Treasury. IL Secretary was disposed to pay that
amount again there would not be found in the Urea
suy any fund provided by law 10 meet his warratt
and the Treasurer could not pay II. have been thus
for the purpose Of satisfying you that there IS
no mode provided by law for paying second time
Treasury note or any other evidence Of debt or
claim against the United States, which has been once
paid. And the difficulty is rendered greater by the
consideration that the instruments for which you ask
payment have been feloniously altered and forged.
twill become the duty Of Congress to consider
what course should be adopted, under the circum-
,.lnces 10 save from loss and injury those who have
been defrauded by having received the paid and
c,led notes Of the Government, and TO provide the
means Of discriminating between those who received
such notes in good faith and the usual course Of
b.,Iness and those who received them under suspi-
cous circumstances, or who may have purchased
them at less than their known value. To that body,
as being alone competent TO disp the question,
must therefore, refer you, with the assurance of my
CONVICTION that it will do whatever justice or sound
policy may require.
Respectfully,
Your obedicnt servant,
tSigned) J. C. SPENCER,