New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-11-02
PANICS TO ORDER.

To the Editor Of The Tribune.
SIR: A report from Washington announces the
intention OF secreary Boutwell, TO issue 900 ofleRal-
tender the alleged purpose OF relieving an as
sumed srlngency I'm the money market with the taint
OF Illegally I'm charged to Mr. Boutwell's "syndcate
operaton It hardly possible TO believe that he conem-
mates such an unwarraned proceeding The sanction
OF law will be Of course claimed for this proposed issue
OF legatenders This claim, however will not suffice TO
relieve the scheme Of its illegal character The facts in
the case are few, simple and easy Of comprehension.
The acts OF Congress OF February Is and July II, 1862
and March g. 1863 authorized the issue OF 100000 900 Of
legatender notes or this aggregate sum, 5000
were TO he issued each Of the first two acts above
named and $IOOOOOOOO under the act OF March 1853
These are the only acts OF Congress now nayng ,ega
egaltepder form. The act Of July H. 1862, contained
the following provision, namely: =, ,...,.
Sosr such regulations sa b. nay ' SS e oIi TIA, %
seaum per and any deposited be withdrawn
And Of The 1S1Di Of Uns s,s 50e &: authorize.
Of prompt Of such deposits when demanded and shall
Issued sa same or any part hereof sy be used PSIpOs
OF the amount Of legaender notes authorized by this
act about 900 were appropriated Tor tine purpose
indicated In the words Of the last sentence above
quoted certificates OF deposit having been Issued 70
cited one result Of this proceeding was to leave the
volume Of egaltender notes In actual circulation about
Sa56 600 COO Instead OF 100000 GOETHE sum total au
thorzed by the three acts already described; and by
reason of this fact tho Treasury Department now APP
narently assumes the position that its power to Issue
notes der these acts Congress Is not exhausted
The claim not Of sufficient dignity to provoke deies
siye discussion The simple words OF the act preclude
the possibility OF doubt The last sentence OF the quota
ton above made expressly states that OF the te00o09
M notes authorized by the act OF July II, 1902 tOOOO
shall not be Issued except for the purpose OF
certificates OF deposit put In circulation by virtue Oh se
mower given in the next preceding sentence Ihere Is
not such certificate outside OF the Treasury vaults
Ali that were ever issued have been long since re-
deemed and cancelled, and the Secretary has no
more authority to make further issues OF
iesai-tendor notes than he had TO pay his
"syndcateD tl,62S,O00 more than he was allowed
by Congress for subscribing to tho funded loan OF Janp
ary 90 1871 In an earlier financial makeshH, our wash
In gtOn and Wast friends asserted the right 70 issue
ths same sum Of tOOOOOo OF egstender notes for the
purpose of redeemng the three per cent Ger
ti6cetes issued under the OF March p 1851 and July
OK iss about $50 600 which st exant These
last named acts however, gave the secretary OF inc
treasury no such authority and as the act OF July IL
1884, authorizes issues OF notes for the reaempon .,
cerdcates under that act alone, the transparent
iiegallty OF the scheme prevented It's Communication
M Ia time for change In Government when an Admin
stration either for political ends TO benefit some IA
yortes who profit by early news OF the intent OF sucn
transactions Is willing to take steps which may plunge
the entire financial affairs OF the country INTO panic and
disorder SO.
Se,sS York, Oct. rs, 1871