New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-12-06
Rep,rt Of the Secretary Of the Treasury
TREASURY DEPAR1NENr,, oc,
WASHINGTON, Dec. 4. 100. ,

mail report s... ,r..t,ons involved
m the restoration OF the Federal authority H GOV
6ouhern States. and the reestabilsnmen ore the nan
ernn@t therein under the CoDsu'ui'oA'
eia questions embracing
The Currency;
The Public Debt; and
an a rsieb demand the early and careful attention Oh
Congress. .,. srhiec.s with their
u 81 liz own inability properly to discuss tnen
Sscnlt as thew are and involving as tney 10 .9 Ia
tsna honor and the PeSuna! or a. clearly and def
,., s he can his own views in relation 10 them NOT
sb,,ae thai Congress will sustain and carry out by
appropriate legislation tnose tna' sae b;I s G
t3siy snperior wisdom and reject those winch are re-
rarded as either impracticable or unsound;
The fsc that means have been raised, without foreign
rosns IN meet the expenses of protraeied ana very
s war i, evidence not only OF the great resources
n fhe country but Of the wisdom OF Congress IN PASS
ing the necessary laws. and of the distinguished ABILITY
IN ADMINISTERING them 1t is hardly necessary to sue
rast however that the legislation which was proper
and wise during the progress Of hosties may not 10
suDropriate or even justifable in q time Of peace
She right Of Congress- at all times, TO borrow money
and TO issue obligations for loans in such form as may
be convenient is unqucstionabe; but their aulhoIy "
ISSUE obligations for circulating me .a1n can oniy
be found in the unwritten law which saneuons. !;
eEer the representatives Of the people whose uu'! 30
consder in a great emergency necessary 10 be DONE
The present legaltender acts were war 5 nv
while the repeal Of those provisions Win rauu Wv
limited States notes lawful money Is not no" feco'
mepded the Secretary is of the opinion that they ongt
not to remain in force day longer than shsii pc
necessary TO enable the people 10 prepare lor return
70 the constitutional currency not supposeu na'
A was the intention Of Congress by these acts 10 lro
dpce standard Of value 10 times OF peace lower thsn
fhe coin standard much less 10 perpetuae the usceu
which must attach TO great nation when Clshohors
tts own obligations by unnecess sry keeping In creu'
aton an rredee mable paper currency II mas not III past
times been regarded the province oil congress 10
furnish the people directly with money IN Sn! IoLn'
Their authority is TO coin money and fix the value
thereof and, inasmuch IS mixed currency CONSIST
ing of paper and specie has been found TO be CONNER
eial necessity il would also to be their duty 10
nroyide as has been done by the National Currency
Act that this paper currency should be secured beyond
any reasonable contingency To go beyond TINS now
over and issue Government Obligations, making them
by statute legal tender for all debts public and prl-
yate is not believed 10 be. under ordinary creum'
stances within the scope Of their duties or consttu
tonal powers. -
The reasons which are sometimes urged in favor Of
United States notes a permanent currency are the
saving Of interest and their perfect safety and uni
form value.
The objections to such policy are. that the paper
articulation Of the country should be flexible increasing
and decreasing according 10 the requirements OF egi'
nate business while If furnished by the Government,
would be quite likely to be governed by the necessi.
ties Of the Treasury the interests OF pares rather
than the demands VI commerce and trade Besides, a
permanent Government currency would be greatly IN
the way Of public economy, and woud give 20 the
party in possession Of the Government power which
there be strong temptations to use for other pnr-
poses than the public bookkeeping the question OF the
currency constantly before the people political
question than which few things would be more injurious
TO business
But the great and insuperale objection. already
stated TO the direct issue Of notes by the Government
policy. ia the fact that the Government OF the
United States is Of limited and defined powers and
that the authority TO issue notes money neither
pesy given TO Congress by the Constitution nor fairly
70 be Inferred except as measure Of necessity in
great national exigency. No consideration Of
pecunary character should induce an exercise BY Con
gress Of powers not clearly contemplated by the nstru
" ment npon which our political fabric was established
" The Government in the great contest which has bee
recently closed has not sought increase its pow
er nor to interfere with the rghtful powers OF tn
States The questions decided by the war are that III
Union Is indissolube; that whatever is essentially o.
posed to ii must be removed that the Federal autho
y within its proper sphere, snpreme and that Il
validity OF acts Of Congress is not TO be determined
Che States but BY that tribunal which the compile
character of the Government made a necessity. II
the browning glory Of the Constitution that tins gre'
war has been waged and closed without the powers
the Government being enlarged or its relations TO ID
E9ates being changed.
Ameasure expedent doubtless. and necessary in th
great emergency In which il was adopted but iii
emergency no longer exists, and however desirable ma
the saving Of interest," and however satisfactory thes
notes may be a circulating medium, these considera
tons will not it is respectfully submitted justify de
parture from that strict construction of the Constu
ton given 10 II previous to the by patriotic
all parties, ami which is essential TO the equal and han
nonious working Of our peculiar institutions. Th
strength Of the Government has been proved by tn
in which 1t has carried on the greatest war
modern times; it only remains for the vindication
its excellence and the perfection Of its triumphs. the
al powers exercised for its preservation, but not el
nessly granted by the Constitution be reinqusbe
with the return Of peace. While. therefore, the Secr
fary is OF the opinion that the immediate repeal Of ii
legal tender provisions Of the acts referred 10 would
unwise as being likely to affect njuriously the egit
mate business of the country. upon the prosperity
which depend the welfare OF the people and the rey'
Oh 70 tha afptap NJ
national credit and unjust 10 the holders of the notes
he 10 Of the opinion that not only these provisions bu
the acts also should be regarded as only temporary
that the work Of retiring the notes which have bee
issued under them should be commenced without delay
and carefully and persisently continued until all ar
retired.
only been made 70 those which authorized the Issue
United States notes. The Understanding notes which
are legal tender for their face value were intended =
woud be neither Injurious to the pusic nor an act
bad faith to the holders for Congress TO declare that
after their maturity, they shall cease to be legal ten
der while such a declaroion would aid the Government
In its efforts TO retire them. and is therefore recon-
pended.
The rapidty with which the Government notes can
be withdrawn will depend upon the ability Of the Secre
Sary 10 dispose Of securities The Influences Of funding
upOn the money market will sufficiently prevent their
TOO rapid Withdrawal The Secretary, however. be-
deyes that decided movement toward contraction Of
the currency Is not only public necessity but that IL
will speedily disspate the apprehension which very
generally exists. that the effect Of such policy must
necessarily be TO make money scarce and to diminish
the prosperity Of the country.
It's weli.established fact which has not escaped
che attention Of all intelligent observers. that the de
Dand for money increases by reason Of advance Of
prices with the supply and that this demand IL not
frequently most pressing when the volume Of currency
r. the largest and imitation has reached the eliminating
point Money being Improbable article 10 hold.
very little is withheld from active use, and In proper
tion TO It's increase prices advances the other hand
reduction of 1t reduces prices and as prices are re-
duced the demand for it falls off that paradoIical
Ht,p;u oft ha in