Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1868-07-29
New Question.

uluOllLc kuc IelSSub % NAC t~tCChc@Ons
to the full amount originally author
lied, namely four hundred and fifty
millions. Some very able men held
that. as the law now stands, the note:
may be reissued. Others held that the
notes which have been Withdrawn in
accordance with the law providing fol
retiring them, are legally cancelled,
and cannot be reissued, and that there
fore the amount Of greenbacks is lin.
tied by law to that outstanding, name.
", three hundred and ifty-six millions
That there il such a question, upon
which able members we're divided IN
opinion, IS an important fact. And il
seems to US that such a question is Of
itself enough to prevent such a reissue
without a new legislation. Mr.. Garfield
took the ground that the amount now
outstanding is the maximum that can
now be issued, and his reasoning seems
to Us conclusive. He argued that the
amount originally authorized was four
hundred millions, which Congress de.
clsred should never BE exceeded, with
a p%roviso. authorizing another fifty mil.
lions solely for the purpose of redeem
ing the temporary loan. He then cites
the loan act ofApril u, 1866, suthorlz.
ing the issue of bonds to be exchanged
for Treasury notes or other obligations
issued under any act of Congress, wheth-
er bearing interest or not" and also
to sell the bonds anywhere for lawful
money Of the United States, or for any
Treasury notes, certificates of indebt-
edness or certificates OF deposit, or 9TH
er Representatives of value which have
been or which may be issued under
any act of Congress, the proceeds
thereof to be used only for retiring
Treasury notes OF other obligations is
suedunder any act Of Congress-"
Here is q particular provision that this
exchange of bonds, and the proceeds of
the sale Of these bonds, shall be used for
retiring these notes. And the same act
had a proviso limiting the rate at which
the Secretary should retire the greenbacks,
as follows.
Provided, That of United States notes
not more than $4,000, 900 may be retired
and cancelled within six months after the
passage of this act, and thereafter no.
more than $4,000, 600 in any one month.
This shows positively that the act meant
to retire and and cancel the circulating
notes at a limited rate. The Secretary
has Just rs much authority to reissue the
redeemed certificates Of the temporary
loan, or the exchanged 1905, or the re-
deemed compound notes, as he has to re-
the greenbacks. Were he to reissue
them 1t would be illegal, and the notes
would be void. As they could not be
Identified, their issue would faint the
But so good q man as Mr.. Hooper, gave
it as his opinion that the Secretary of the
Treasury has now the authority to reissue
the notes TO the smOunt of 400 millions. (
So far as he reasoned the question he
makes the original act, ~authorIsing the is
sue, and limiting Ghe amount, override the
he subsequent act providing for the retire
.ent and cancellation. But he argues
hat inasmucha as That temporary loan is
redeemed, the authority to issue the extra
80 millions has ceased. This is q rever-
al of his reasoning as to the greenbacks.
Mr.. Allison called his attention 10 the
act that the provision Of so millions was
lot for ''the temporary loan" but for tenn
loans and US we have these loans
low, we can issue greenbacks TO the full
mount ever authorized-450 millions.
And if Mr.. Hooper's reasoning is good he
will have to admit the whole.
Mr.. Sehenek held The same view as Mr..
although he raised no question as
the reissue of 50 millions, for temporary
pans. He cited a provision, in n of the
cts which authorized the issue Of 100 mil
ions, which authorized the Secretary TO
the notes as they came into the
Treasury. By some ley principle of law
bis act, which originally authorized the
ssue and reissue of these notes, was made
override a subsequent act providing for
etiring and eaneelling the notes.
The facility Of issuing ~irredeemable
totes, and making them a legal tender
S money, has a demoralizing infu-
nee, which loOsens the principles of
aw and the reasoning faculties.
When Congress passed the act of April,
SOC, providing for funding the notes,
nth q limit of the rate of retiring and
anceling them, it meant to wipe them
ut forever from the circulation. 1t
i'd not mean TO perpetuate the mon
folly and crime of creating a
owe, in the Secretary of the Treasury
0 urn tie screw of contraction on the
ones and sinews of trade until il was
and then to initiate the cur
sncy again, by throwing all this
mount back into the circulation.
No sane man is going to admit that
intended to create this power and
ut it IN the hands Of the Secretary.
maintain his own character for
and trustworthiness he will have
} maintain hat when he voted for
nat contracting law, he meant that
be currency thus withdrawn should .
Q eaAceled, and thus forever wiped /
ut q the circulation, in order to ap-
rosd specie payment So they
lear, and so they enacted. Why, |
hen this attempt 70 overthrow all (
nat snd TO make out now that they {
err guilty of wantonly creating the :
~inseparable from contraction,
, rlt into the Secretary's hands the a.,
to initiate again? No such Z
over exists. he can not reissue =.
less retired notes legally. And with
Ieir legality thus at issue, we think
lat no administration will venture on !
funher issue of legal tenders with l
1t new legislation -CineiHndi Ga
tie t