The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-12-18
BOUTWELL,, SYNDICATE & co.
The Secretary Of the TreaSury'S EXS
PLANTATION to the House.
Remarks on Unauthorized Issues
Of Legal Tenders.

WASHINGTON, Dec II, 1872
secretary Boutwell, and Mr.. Jay Cooke were be.
fore the Committee OF Ways and Means this morn
ing In reference to the funding loan Mr. Bout.
wells explanation OF the two hundred million
negotiation OF last year full and complete. Ha
showed that the alleged loss OF interest grOwnS
out OF the necessity OF giving ninety days noted
10 the holders OF the called bonds was practically
unavoidable under any plan that could be adopted,
sihce even with money on hand to meet the call ir
must nrst ne realized from the sale OF bonds which
"ouiu Dear interest from the date Of issue. He
iurther showeu mat the amount of interest so paid
together with the whole cost OF the negotiation
including the engraving and printing OF the bonds.
was reimbursed to the Treasury in the saving Of
interest by the new issue up to the 1st OF June
last, and that there has been since saved over q
million OF dollars In the reduced interest.
THE ANNUAL SAVING
from that negotiation amounts to two millions Of
dollars with interest annually accruing and COM
pounding thereon during the terms 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 OF the
moneyed or commercial interests.
Mr.. Cooke said be had little to add to the Secre--
tary's statement. He would refer, however, to
the fact that when the government was q b0rA
ROVER at high rates OF interest all other borrowers,
as rule were obliged to pay still higher rates.
The lower the government rate the better 10 was.
FOR industrial and commercial enterprises or alE
kinds, which were relieved OF taxation to the ex,
tent OF the reduction and of the compet ition OF
government at high rates. HIS firm Convection.
was that the attempt to sell the new five per cents
aD e cae pe 81 be-
In would create drain OF money from Its ordinary,
channels which would speedily check the sales
and thus efectually deprive the government Of the
means TO redeem the hvetwenties. BY
THE PLAN RECOMMENDED
nv hn ntarv 10 a
rence, would be avoided, and the conversion into
the new bonds would be effected without the slight
est monetary or commercial disturbances.
THE SECRETARY TO THE HOUSE.
The following letter forwarded to the House
OF Representatives to-day
:. , owssn.saTos sf B; c. Dec II, lsis
,n ss have the h9n0r Of
!. fe'Sysd That the Secretary Treasury be and
sVas me s s
last Sd Or oer BY s s De-
tender y
81
enae s hSs @ S or Of hs retired Legal
tired by the operations Of law has been actually cam
waas a he &c @ o s
s 9e Of the and mSd
y whose orders ana for what such was
IL reply thereto have to say that the amount Of
Der last upon the order Of Assistant Secretary Rchsrd1
then acting Secretary in the absence Secretary
lars over ahe amount outstanding when the act Of Feb
was relief the business Of tht Country then suffer!
sssy Tss fsi CT &: ' ;$y sSsy;:s
Of 81 6s @ Of ne nsa sse
as 81 Rsn Ia giving the opinion o. the Court IN thS
notes to the amept Of &C., The July ls62
however 10 for the 70 redempton Of
loan 70 be issued and used only when necessary that
% .ns Ss wSe
authorized $3.50 0Ooo 900 and contemplating permanens
the Decsm6er ter% issS Of the su spIe
Court the same view was again expressed BY the CHIEF
Wallace $50. This opinion is in accordance with tho
OPINION OF THE TREASURY DEPARTMENT
and with the practice Of the department well, sincd
the act Of the lth February 1858 previous thereto
issued by the Treasury Department has legal effect
upon the power of the department to reissue notes in
IN e eq% 's s IN Sas 1o
yded THAI in lieu of of said any other United
destroyed there may be issued equal Of Uncd
States notes such are authorized by this act Previous
notes were held in the Office Of the treasurer at
Washington surplus fund in Of the 1856 OOI
sudden demand upon Treasury that practice has
ever since been continued Notes not printed for any
Standing more than OF three per cent ceriin-
Gates payable in legal tender notes demand and th
the government for
Of mi, a,x FROM 1fS s sAs oS s Of
last was made, and all new notes put in circulation arc
from we 'a GEoRGE S Secretary