Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-12-18
WASHINGTON.
Credit MobiIier Investigation.

Credit MObiIier Investigation.
WASHINGTON, Dec. l7.-Oakes Ames
was examined by the Credit Mobilier Com
mittee to-day. John q. Alley will be ex-
sminedto-morrow.
Adjournment Of the Supreme Court
for tiae Holidays.
The Supreme Court win adjourn On the
10th inst. TO the 9th of January.
Consul to Montevideo.
The President hasEnominated Enoch ia
cobs, of Ohio, Consul to Montevideo.
Secretary Boutwell, Before the Conn
mittee OF ways and Means.
Secretary Boutwell, and Jay Cooke were
before the Committee of Ways and Means
this morning in reference to the funding
loan. Secretary Boutwell's explanation Of
the two hundred million negotiation of
last year was full and complete. He show
ed that the alleged loss of interest growing
out Of the necessity of giving ninety days
notice to holders of called bonds was prac-
tically unavoidable under any plan that
could be adopted, slice even with money
on hand to meet the call it must first be
realized from the sale of bonds which would
bear interest from date of issue. he fur
ther showed that the amount of interest SO
paid, together with the whole cost of regu-
lation, including the engraving and printing
of tn bonds, was reimbursed to the Treas
ury in the saving of interest by the new
issue to the first of June last, and that there
has been since saved over million ofsdollars
in reduced interest. The annual saving
from that negotiation amounts to S2,000,-
600, with interest annually accruing and
compounding thereon during the term of
debt. The Secretary considered this plan
the best that could be devised, involving the
least cost to the government, while it did
not interfere with or In the least derange
the ordinary operations of monied or COM
mercial interests. MIR, Cooke said that he
had little to add to the Secretary's state
ment, He would refer, however, to the fact
that when the government was q borrower
at high rates of interest all other
borrowers, as rule, were obliged
to pay still higher rates. The lower the
government rates the better it was for in
dustrial and commercial enterprises of all
kinds. His firm conviction was that an at
tempt to sell the new five per cents and to
retain the proceeds OF such sales in gold I'M
in, would creste drain of money from its
ordinary channels, which would speedily
check sales and thus effectuslly deprive the
government of means to redeem the 500
bonds by the plan recommended by the
Secretary. This difficulty, as shown by ex-
perience, would be avoided, and the con-
version into new bonds would be effected
without the slightest monetary or CONNER
cial disturbance.
Secretary Of the Treasury Gives His
Reasons,
The Secretary of the Treasury to-day
forwarded to the House Of Representatives
the following letter in reply to the resolu-
ton of Dec. 3, asking the Secretary to in
form the House under what law authority
is given to the Secretary of the Treasury to
make an increased issue of legal-tender
notes as was done in October last, etc
have to say that the amount of United
States notes in circulation was increased 10
October last upon the order of Assistant
Secretary Richardson, then acting Secre-
tsTy in the absence of the Secretary of the
Treasury in the sum of about s., 100000
over the amount outstanding when the act
of Feb. 4, 1865, became law. The object
of the issue was the relief Of the bust
ness of the country then suffering
from large demand for currency employed
in moving the crops from the Southwest.
The condition of affairs then existing in the
country seems to me TO have warranted the
issue upon the ground of public policy.
The authority for the issue is found in the
acts of Feb. %, 1852, chapter 80; July II,
1852, chapter ZAP, and March 3, 1853, chap
ter -. At the December term Of the Su-
preme Court of the United States, the Chief
Justice, in giving the opinion Of the court
| in the case Of Banks vs.. Supervisors, 18th
vol. Wallace, 20 D., said the act Of Feb. %,
| 1852, provided for the issue of these notes
| to the amount of $3.50, 100000. The actOf
July II, 1862, added another $4,000, 600 TO
the circulation, reserving, however, S50, 900
| 900 for the redemption Of the temporary
| loan, TO be ISSUED and used only when nee
essary forsthat purpose. Under the act Of
| March 3, 1868, another issue Of S150,000,
| 600 was authorized, making S45O,00O, 600
| in all, and contemplating permanent cir
! culation until tie res mptiOn Of payments
in coin, OF S400,000,0O0. At the DeCem.
Der term 1869, of the Supreme Court, the
same view was again expressed by the
Chief Justice, in the case of Veil Bank vs.
| Fenna-Ssh vol. Wallace, p. 537. This
! opinion is in accordance with the uniform
opinion Of the Treasury Department, and
with the practice of the' Department, as
well since the act of the 4tt
OF February, 1868, as previous there
to. The cancellation and destruc
ton of notes that have been ISSUED
by the Treasury Department has no lega
effect upon the powers of the department tt
reissue notes in their stead, AID is apparent
from language employed in the act of 1863
already referred to. In that act it is proyi
ded that in lieu of any of said notes or any
other United States notes returned to tn,
treasury and cancelled or destroyed, Their;
may be issued equal amounts Of United
States notes, such as are authorized by thi
act. Previous to the 4th Of March, 1869
large sums of United States notes were hel(
in the Office of the Treasurer al Washing
ton. as a surplus fund 10 excess of thu
1856, 100000 reported in circulation, for III
purpose of meeting any sndden demand
upon the Treasury, and that practice hal
ever since been continued. Notes are 10
printed for any special issue; on frs
March, 1869, there were outstanding NOR
than 57,000,000 of 8 per cent certificates
payable in legal-tender notes on demand
and the surplus in reserve was the onl.
means at the command Of the government
for meeting any call on account Of thi
liability; from this surplus the issue OF Octo
Der last was made, and all new notes put II
circulation are drawn from the same so URGE
Very respectfully,
GEORGE 7. BOUTWELL,, Secretary.
: All Cities Of 10000 Population T.
Have the Letter Carrier System.
The House Committee on Postofices an
Poastroads have agreed to recommend th
establishment of the letter carrier system