Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-10-01
HIsCELLANEoUs.
INFORMANT LETTER PROM SECRETARY
RICHARDSON.

IMPORTANT LETTER PROM SECRETARY
RICHARDSON.
WASHINGTON, September S0.-Tbe
secretary Of the treasury has addressed
the following letter TO Franklin Edison,
president Of the New York produce ex-
change:
TREASURY DEPARrMEsr,
WAsHINGTON, D. c., SepteIlbr 80, 1873. J
SIR-YOur letter Of the twenty-ninth
instant concerning two resolutions OF
the New York produce exchange has
been received and the subject-matter
fully considered. The resolutions are as
follows:
"WHERRAs, The critical condition of
the commercial interests Of the country
requires immediate relief by the re-
mOval of the block in negotiating for
eign exchange, therefore be it
"RssOlued, That We respectfully sug-
gest to the secretary Of the treasury the
following plans for relief in this extraor-
binary emergency: First, that --
currency be Immediately issued to banks
or bankers, upon satisfactory evidence
that gold has been placed upon
special deposit in the bank Of England
by their correspondents in London to
the credit Of the United States, to be
used solely in purchasing commercial
hills of exchange. Second, that the
President of the United States and the
secretary Of the treasury are respectfully
requested 10 order the immediate pre-
payment of the outstanding loan to the
. United States due January l, 1874"
While the government Is desirOus OF
/ doing all in its power to relieve the pres
ent unsettled condition of business af-
fairs, as has already been announced by
the President, it is constrained in sll its
acts to keep within the letter and spirit
Of the laws, which the officers Of the
government are sworn TO support, and
they cannot go beyond the authority
which congress hss conferred upon them.
Your first resolution presents difficulties
which cannot be overcome. 1t is not
supposed that you desire TO exchange
coin in England for the United States in
New York at par. II your proposition
Is for the government to purchase gold
in England, to be paid for in United
States notes at current market rates in
New York, it would involve the gov
eminent in the business of importing
and specializing in gold. Since the
treasury has no use for coin beyond Its
ordinary receipts, and would be obliged
to sell coin so purchased at prices greater
or less than was paid for it, if your object
il to induce the treasury department TO
loan United States bonds to banks in
New York, upon pledges and deposit in
/ London Of gold, it is asking the secre-
tary Of the treasury 10 loan money Ofth
Z United States upon collateral security,
for which there is no authority in law.
! If the secretary Of the treasury can loan
g
them upon pledge of other property in
his discretion, as he has recently been
requested to do, which would be an ex-
trsOrdinary power, ss well as a most
dangerous business TO engage in, aud
which my judgment would deter me
from undertaking as secretary Of the
treasury, even if by any stretch Of the
construction l might not find ii sbso-
lutely prohibited by law. The objections
already mentioned to your first resOlu-
ton are 30 insuperable and conclusive
that it Is unnecessary for me to
refer to many practical diff
culties which would arise IL an at
tempt should be made to comply with
your request. Your second resolution
calls Or the payment at once Of the loan
of 1aSS, OF the bonds commonly called
lAAE Aft1 " lof1- y pVH buOLv1s u
investigation am Of opinion that con-
gress has not conferred upon the secre-
tary the power to comply with your re-
quest in that particular, and in this
opinion the law officers Of the govern
ment concur. Under these circum-
stances you viii perceive that, while
have great respect for the gentlemen
comprising the New York produce ex-
change, am compelled by my views Of
the law and OF my duty, TO respectfully
decline to adopt the measure which
your resolutions propose. have the
honor to be, very respectfully,
signed WILLIAM 4. RICHARDsON,
Secretary OF the Treasury.
A LEGAL OPINION on THE RIGHTS OF
BROKERS AND BANKERS.
NEW YORK, September S0.-Ex-Dis.
Z tFiet. A ttoqney Sullivan has given hi,