The daily union. [volume] (Washington [D.C.]) 1845-1857, 1848-02-29
rna rrs..xrx Rspert.

In it Mr.. G. Gays:
.n his report, he tthe Secretary OF the Treasury eoEons
among the receipts of the fiscal year ending June Both,
loans S25,679. l99 As
Md he states as the still available amount
from treasury notes and loans ON lst OF oo-
tober 1917 the sum of 62s5,2 si IS
Toge,ber. 3l.s6Lisi 90
If to this be added the four items Of 6.9i5,07s On
The ,o,,, xvoola amour, to sss s7s,572 o.
"Ths must be explained. But. until the explanation
hall have been given, 1t very clear ha' 'ne sum OF
80 79 ST. being tho excess OF tue apparent receipts and
amount still available frotn treasury notes and loans be-
yond the amount authorized by law u' NC o0u 70 'he
other side OF the account
The explanation is very easy, Authority Is gvenby
law to reissue such treasury notes as may be received
payment of public Dues redeemed with specie, pro-
vided that the total outstanding at any one time, does
NOT exceed a certain amount In this way, after having
c.;vad UPWARDS of twenty nv millions from loans and
notes in the fiscal yeu ending June 80, lsl7
and nearly seven millions in the quarter ending Septem
Der &c. the had still 20 wer on the Isl Oh oc
tober to borrow upwards of six mill, ms because part
the treasury previously issued III peen redeemed
and were by law reasonable.
Suppose an act be passed authosz Ing tue Issue oil
only one million in treasury notes. with pfovso that
they might be reissued if paid in for duties, or o'erwe
redeemed In this way government might b. Frow sue
cessiyely million after million, in the course Of 'he year.
to the amount of ten or twelve millions, hough never
owing more than million at any one time y an. H.
at the end of the year, had but half million in nos
outstanding it would have power to issue another halt
million.
In this way it was that government, after having real
zed upwards of hiry-two Millions through loans and
treasury notes. in the first quarter ending September 30
s47 had still power to borrow upwards OF SIX millions
1t had this power, because part OF what 1t had borrowed,
il had borrowed for less than year; and. having paid
this portion of the debt had power to incur again. by
reissung the evidences of it.
Mr. Gaatin is, therefore, entirely wrong in supposns
that the sum of 5s79572 should be carried to the otha
side Of the account and 30 he will be convinced on re
examining the question.
81, appears also to me- that there i. among the various
documents appended to the report, want OF precision
the expressions used and particularly in the words REDEEM
ed and yeimbWsed
81 do not therefore, understand what is meant in the Ia
BILE by the following Item
"sRedempon of TREASURY notice, dednctlng w ioSnn
which were funded undor the act oil January - io''
1851 1897 or
"Nor in table B the item
Redemption of treasury notes. and interest," *SSso
1923 g.
s'There have been such amounts cH treasury noe |
pad in payment of duties and debts to the Lhoo o"s
mr. which have come to maturity and been paid OF.
sThe same remark applies 10 some other Sa.oho"p'
such that (M) of reimbursement OF treasury 'o Nv"
December L. 1916, to December !, 1871 amounting "een'
to Sc, 97l, 1876 g.
ON all these ca ses it that notes ae
Guided which have not been reimbursed, but CONVEX ted
into stock"
In all the tables appended to the report and signed By
the Register of the Treasury the words redeemed and
reimbursed are used synonymous There are three
WAYS in which treasury notes may be redeemed or REM
bursed 1st By paying specie for them ID By the re-
CENT of them in payment OF public dues; 3d. BY giving
IN exchange for them certificates OF stock In all these
cases. warrants are duly issued, and the same forms oO
served in the books OF the department In the last men
toned case an old debt is indeed paid only by ncurrE
new one; but as the two debts not IDENTICAL utta
confusion would be introduced into accounts if the old
debt were not regarded discharged.
Table contains statement Of the amount Of debt in
Cured by the issue of treasury notes in each OF the eleven
months, from January to November, 1s47, inclusive.
Table M contains statement OF the amount OF debt n
discharged in each of the twelve months from December
t. 1916, December /, ls47, by the redemption or REIN
bursemen of treasury notes. all the ways above men
toned. II
If Mr. Gallatin finds any difficulty in reconciling The Z
amounts in table Nj with those in tables and B. it's
owing in part, to the tables embracing different periods
Table NJ includes twelve months-from December ls
1885, to December LIST, 1s47. Table A also includes
twelve months; but they the twelve months between
June 3oth, 1916, and June 3Oh 1s47 Table includes
but three monthsfrom July LIST to September 3oth, ls
In tables M and P the accounts of the issues and re
lempon of treasury notes brought down to the
latest dates, with the view of giving Congress and the
people all the information in possession of the depart
ment in relation to the workings of the system. +
Another reason why Mr.. Gaatin may have had
difficulty in reconcing the amounts in table and table
NJ is, that in table is carried out only the amount
treasury notes redeemed between July LIST, 1916, anu
June 3oth 1s47. by receiving them in payment OF pubic
Dues or by paying specie for them Though he suppose
it could not have been it is fact, that in this PERIOD
treasury notes to the amount of 1897 OF were thus
redeemed
In the amount given in table B-namey, s., 3a9o %
appear to be included treasury notes. redeemed by con
version into stocks, well by receipt for public dues
and payments of money.
Looking through the tables appended to the report
find two others. which may require explanation la@'
E. on page A. contains a statement of the amount Oh
public debt paid from December /, 1916, to December
oeDt