The daily union. [volume] (Washington [D.C.]) 1845-1857, 1848-10-06
CITY OF WASHINGTON.
FRIDAY MORNING, OCTOBER 8, Is4s


wing press the sale of treasury notes in the
city of New York. II is represented loan;
transaction under the constitutional treasury law and
such, forbidden by that These statements made
in gross ignorance of the facts of the 1t not
loan, nor it a transaction under the constitutional
treasury law, but under distinct power, clearly given
under the subsequent authorizing the OF treasury
notes. dated January 2s, 1877. That The fol-
lowing sections;
SEC g Aad be IL further enacted That the Secretary Of
the Treasury be- and he is hereby authorized and directed
10 be reimbursed and paid the principal and inter
of the treasury which may be issued by virtue of
l the several time and times when the accord
ing TO the provisions OF this act, should be thus reim
bursed and paid. And the said Secretary is further
thorized make purchases Of the said notes par the
amount OF the principal aud interest due the time Of
purchase such And much of the unappro-
prated money in the treasury may be necessary for
that purpose hereby appropriated for paying the
cipa and interest.
SEC IL That in lieu of the authorized by this
which be redeemed others may be issued Provided
h9suo The amount of such notes outstanding, together
with he stock sued by virtue of the thirteenth and
tenth sections OF this act, shall exceed the of
twenty three millions OF dollars.
Now, the transaction under this act, and clear
ly authorized by it, and not under tie constitutional
treasury law. This treasury law contains direct
authority both for the purchase and the subsequent sale
and reissue. The Sth section above quoted declares
"And the said Secretary is further authorized TO make
purchases OF the said notes at par for the amount of the
principal and interest due at the time of purchase such
notes" Now this is exactly what done in this
The notes under the authority of this law purchased
by the Acting Secretary Of the Treasury par This he
clearly authorized do the very words of the law,
has always been construed and always acted upon,
well during the time of the present Secretary that of
all his predecessors and well during the OF the
present constitutional treasury law, the same law which
preceded it in 1910 and Al, during the time of Secretary
Woodbury. and Secretary Ewing The right to purchase
the notes, them clear, as well frsm the power
given by the law as from the uniform practice under
every Secretary of the Treasury. Now, then, as TO
the sale That also is clearly authorized by the 18th
section of the act before quoted When the are
purchased they are redeemed under the express au-
thority of the law and the uniform construction and
practice under it, They redeemed by the purchase;
they are then cancelled as is done in this case; and
then the 18th section authorizes the issue Of other
in lieu of those which had been thus redeemed and
ceed This right of reissue, is declared by the 2st
section of this act shal and determine six months
after the exchange and ratification Of treaty OF peace
with the republic of Mexico That il is reissue which
is authorized by the 18th section, is clear from the
remain under that section the right of reissue is
rendered clear BY the 22l section of the act which is in
these words.
SEC q That shall be the duty OF the Secretary of tle
Treasury port Congress at The commencement OF
each session the amount OF treasury notes which have been
issued under the provisions of this the amount
deemed. and the manner in which redeemed the amount
purchased and OF whom and at what time purchased; and
the REssugp stating in lien of which redemption
they are REIssuEp with the date of such during the
preceding year.
There never Doubt under the law, that purchase
mode OF redemption, and such has been the uni
form practice; and in the report of the wing Committee
on Public Expenditures of the House at the last session,
the purchase of treasury notes is expressly stated
Of the modes OF redemption, ana that notes may then
be reisstsd in lieu of those purchased 1t is precisely
such transaction is contemplated by the law as to
the reissue of redeemed notes and similar reissues
repeatedly made, shown by the records of the treasu
ry, both by Mr. Woodbury. and MIR. Ewing, and when
the constitutional treasury law then in force. In
truth il is the very object of the power OF purchase and
reissue that when the treasury full, the Secretary, to
the extent OF his available means, may redeem the notes
by purchase, as he has done in this case, by paying
the specie for them, then cancel the notes, and then
reissue notes for the amount when required by the
wants of the treasury uch eray ichatha been done
this case, by which the intermediate interest is
saved to the government and at the same time, there is
prevented too great accumulation OF the public money! and
for this very object that the power of purchase and
reissue given by the law And again repeat that
similar reissues have been repeatedly made by the
eral Secretaries OF the Treasury under similar
,hority given by preceding laws In this the
suit saving of about 900 of interest to the govern
of the United States while convenience afforded
to the merchants who want the specie to pay dutes
and to be esue at the period when the
Of the treasury again require the money and not later than
the 3oh of November 1885, because by the section of
the act the right of reissue then expires being months
after the exchange and ratification of the treaty OF peace
with Mexico
The opponents of this purchase TO have thought,
LIST, that this transaction under the constitutional
treasury law, which is dated the 9th of August 1916
whereas, it is not founded that law at all, but the
ury notes, dated January 2s, 1877.
3D. II has been represented loan, supposed TO be
effected the deposite of treasury notes whereas il is
loan at ALL but sale of the notes for specie The
notes not deposited TO be returned again TO the par
ties, but they purchased by the go eminent and can
ceed and then other notes ressued under the 18th
section of the act, the government gaining intermediate
interest We say again, it is not loan, and therefore
not forbidden by the constitutional treasury law But
if had been So and had in fact been forbidden by