The Portland daily press., 1872-12-18
WASHINGTON.
boutwell, and Jay Cooke ON Finance.


WASHINGTON, Dec. 17.-Secretary Boutwell,
and Jay Cooke were brfore the Committee of
Ways and Means to-day, and expressed their
views as to what Congress should do to facili-
tate the negotiation of a new loan.
Don's Like the Task.
The Foreign Committee to-day resolved to
ask the House to discharge them from the con-
sideration of the bill providing for the disposal
or distribution of the Geneva Award, and to
refer the subject to the Judiciary Committee.
The Credit Mobiiicr Investigation.
Cakes Ames was examined by the Credit
Mobilier Select Committee to-day. John B.
Alley will be examined tomorrow.
Letter Carriers.
The House Committee on Postofflces and
Post roads, have agreed to recommend the eS-
tablishment of a letter carriers system in all
cities of 10000 population.
The Atlantic and Great Western Canal.
The House Committee on Commerce to-day
heard the argument on the question of the At
lantc and Great Western canal to unite the
Mississippi with the Atlantic.
Col. B. w. Trobel, commissioner appointed
by the Governor of Georgia to meet the COM
missioners from other States, of whom q are
of the project showing the great need of this
this interior line of commerce to the south and
west.
Col Price also made remarks arguing that
this outlet would have beneficial effect in reg
ulating the money market of the country.
Col. Whitney and Gems. Dubois and Young
of Georgia took a part in the proceedings. The
Committee will report at an early date to car
~ the project into effect.
Secretary Boutwell's Views on Funding
the Loan.
Secretary Boutwell, and Jay Cooke were be-
fore the Committee on Ways and Means this
morning, in reference to the funding loan.
SncrptarU RoutwalEs aYplauatiOn of the
$200,0 10000 of the negotiation last year, was
full and complete. He showed that the alleged
loss of interest growing out of the necessity OF
giving ninety days notice to holders of called
bonds, was practically unavailable under any
plan that could be adopted; since even with the
money on hand to meet the call it must be
realized from the sale of bonds which would
bear interest from the date OF usual. he
further showed that the amount so paid, to-
gether with the whole cost of negotiation, in
Guiding the engraving and printing of bonds,
was reimbursed to the treasury in the saving of
interest by the issue up to june last, and there
had been since saved over million dollars in
reduced interest. The amount of saving from
that negotiation amounts to $4,000 900, with
the interest annually arising and Compound
ing thereon during the term Of the 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
VI COmuttIClstl iubVICcb
Jay Cookies Views.
Mr.. Cooke said that he had little to add to
the Secretary's statement. He would refer,
however, to the fact that when the government
was borrower, as a rule we were obliged to
pay still higher rates. The lower the govern
ment rate, the better it was for the industrial
and commercial enterprises of all kinds, which
were relieved of taxation to the extent Of the
reduction and of the competition of the govern
mental high rates. His firm conviction was that
an attempt to sell the new five per cents and
retain the proceeds of such sales in gold till
the called six per cent. could be bought in,
would create a drain of money from its ordn-
airy channel which would speedily check sales
and thus effectually deprive the government of
means to redeem the 5-20s. By the plan re-
commeded by the Secretary, as shown by expe-
rience, would be avoided, and the conversion
into new bonds would be effected without the
slightest monetary or commercial disturbance.
The Five Million Issue.
Secretary Boutwell, sends the following to
the House in reply to the resolutions concern
ing the increased issue of legal tenders in Octo-
Der:
1 have to say that the amount of United
States in circulation was increased in October
last upon the order of Assistant Secretary
Richardson, then acting Secretary on the alb
sence of the Secretary of the Treasury in the
sum of $4,000 600 over the amount outstanding
when the act of February 4th, 1868, became q
law. The object of the issue was the relief of
the business of the country, then suffering from
the large demand for currency employed in
moving the crops from the South and Vest
The conditions of affairs then existing in the
country seems TO me to have warranted the is
sue upon grounds of public policy. Authority
for the issue as found in acts of February 25th,
1862; of July II, 1862; and of March Sd, 1863
At the December term 1868, of the Supreme
Court of the United States, the Chief Justice
in giving the opinion of the Court in the case
of bank versus thu supervisors, 18th volume
Wallace 26th page. said that the of February
10Th, 1862, provided for the issue of three notes
to amount to $3.50, 1000, 600. The act of July
18th, 1862, added another $780, 10000 to the
circulation, reserving, however, $50, 900, 900 for
the redemption of a temporary loan to be is
sued and used only when necessary for that
purpose. Under March Sd, 1868, another $780,
100000 was authorized, making the whole
amount authorized $450Oo0,000 and centem-
plating permanent circulation till the re-
sumption of payment in coin of $500, 900 G00-
At the December term 1869 of the Supreme
Court, the same view was again expressed by
the Chief Justice IN the case of the Veazie Bank
versus Fenno 18th vol. Wallace 537).
This opinion is in accordance with the uni
form opinion of the Treasury Department, and
with the practice of the department as well
since the act of February, 1868, as previous
thereto the cancellation and destruction of
notes that have been issued by the Treasury
Department, has no legal effect upon the power
of the Department to reissue notes in their
stead As is apparent from the language en-
ployed in the act of 1868 already referred to.
In that act it is provided that in line of any of
said notes or any other United States notes re-
turned to the Treasury and cancelled or de-
stroyed, there may be issued equal amounts of
United States notes, such as are authorized by
this act.
Previous to the 4th of March, 1863, large sums
of United States notes were held in the Office of
tba acJru or OF nertN ,1,r-f fund
II excess OF the 1856, 0J0,O00 reported in circu-
lation for the purpose of meeting any sudden
demand upon the Treasury, and that practice
has ever since been continued. The notes are
not printed for any special issue. On the first
of March, 1869, there were outstanding more
than $57, O09 900 of three per cent. certiicatet,
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 the liability.
From this the surplus issue of October last
was made and all the new notes put in crcula-
ton are drawn from the same source.
(SignedD Very respectfully,
GEO. S. BOUTWELL,, Secy.
Appointments.
Geo. Bliss, Jr., was nominated by the Presi-
dent to-day to succeed Judge Davis as U. S.
Attorney for the southern district of New
York.
The Supreme Court adjourn on the Goth to
January 9th.
Postal Teiegraphy Appropriations.
The House Committee on Appropriations,
having set apart this evening for the considera-
ton of the subject of postal telegraph, they
had before them by invitation of the Post
master General, VIM. Orion, President of the
Western Union Telegraph Company, and Pres
colt, its electrician; Mr.. Thurson, President of
the Pacific and Atlantic Telegraph Company;
M. Brown, President Of the Franklin Tele-
graph Co.. Gen. Myers, Chief the Signal Ser
vice Bureau, and Hon. VIM. Whiting. counsel
for the government on telegraph matters, to-
gether with others.
Mr. Orion addressed the Committee for about
two hours against the postal telegraph, CRITICS
ing the report of the Postmaster General on
the subject, and showing that his statistics were
erroneous and his conclusions not reliable. In
his argument he examined the Postmaster
Generals statements in detail, contending,
among other things, that the estimates as to
the telegraph lines mad no proper foundation.
The report of the Post Master General was
written by gentleman named Lines who was
ignorant of the subject and presented a mess
OF erroneous statistics.