The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-12-18
The Recent $4,000, 1000 Greenback
Issue.
LETTER OF SECRETARY BOUTWELL, IN RE!
PLY 10 THE INQUIRY OF TIE nousR.

| AAeA A1N VI hhShhEAht bOUTWkLL IN HEs
PLY TO THE INQUIRY OF THE HOUSE,
WAsHNoroN, December 1.-THE Sec.
retary ofthe Treasury to o.day forwarded
to the House OF Representatives the lol.
lowing letter In reply to the resolution OF
December Sd, asking tho Secretary 10 In.
form the House under what law authority
Is given the Secretary OF the Treasury 10
make an increased issue Of legal tender
notes, as was done 10 October last, &c;
have to say that tho amount Of United
States notes In circulation was increased
10 October last upon an order Of Assistant
Secretary Richardson, then acting Secre,
tary In the absence Of the Secretary OF
The Treasury, In the sum Of about tlye
million over the amount outstanding
when the act OF February 4, 1868, be-
came a law. The object OF the issue was
tho relief ol the business Of the coun.
try, then suffering from large
demand Tor currency, employed In
the movement Of crops in the South
and West and tile condition OF affairs then
existing In the country seems to me 10
have warranted tho issue upon the
ground ol public policy. The authority for
the issue Is found in the Acts OF February
95th 1859, chapter %; July 1lth 1863,
chapter 142 and March 3D., 1889, chapter
-. At the December (ls6s) term Of the
Supreme Court ol the United States, the
Chief Justice giving the opinion OF the
Court in the case OF Blink u Supervisors,
9Th Vol. Wallace, 200; said that the Act
Of February 25th, 1881, provided for the
issue Of these notes TO the amount OF
$l5O,0OO 900; the Act Of July 1lth, 1909,
added another $3.50 900 900, 10 the circu!
lation, reserving, however, So 900 900 for
the redemption Of the temporary loan 10
be issued and used only when necessary
Tor that purpose and the Act OE March Sd,
1868, another issue of $l5000O 900 was
authorized, $460000, 900 contemplating
permanent circulation until the resump-
tton OF payment In coin OF $400, 900, 900.
At the December term, 1909, OF the Su.
preme Court the same views were again
expressed by the Chief Justice in tho
case Of the Vezuil Bank o.. Fenno, Vol.
s, Wallace, 539. This opinion Is in &C.
Gordance with the uniform opinion Of the
Treasury Department, and with the prac.
tice of the department as well. Since the
act Of the 4th ofFebruary, 1868, as well as
previous thereto, the cancellation and dc.
struction OF the notes that have been Is.
sued by the Treasury Department has no
legal effect upon the power OF the depart.
ment to reissue notes in their stead, and
Is apparent from the language employed
IN the act Of 1868, already referred to,
In that act it is provided that in
lieu OF any of said notes or auy
other United States notes returned to the
Treasury and Cancelled or destroyed, there
may be issued equal amounts Of notes OF
such as are authorized by this act.
Previous to the 4th Of March, 1869, large
sums OF United States notes were held In
the office Of the Treasury at Washington,
as a surplus fund, in excess OF the 1856.
600, 900 reported In circulation, for the
purpose oi meeting any sudden de.
mand upon the Treasury; and that
practice has ever since been con.
Iinued. The notes are not printed for
any special issue. On the 1st Of March,
1859, there were outstanding more than
o. OF the 3 per cent certificates, payable
in legal tender notes on demand, and the
surplus In reserve was the only means at
the command OF the Government for
meeting any call on account Of this lia.
6ility. From this surplus the issue o!
October last was made, and all new notes
put In circulation are drawn from the
same source. Very Respectfully,
GEORGE s. boutwell,, SeerstqrN