Carson daily appeal. [volume] (Carson City, Nev.) 1873-1877, 1873-10-03
AN ALE LETTER


From the Secretary of the Treasury.
The Secretary of the Treasury has ad-
dressed letter. of which the following
is a copy, to Mr.. Frank Edison, Presi-
dent of the New York Produce Ex-
change 1t strikes US as very clearly
expressed, able document:
Treasury Department, Washington,
Sept. 3O.-Sir: Your letter of the 29th
instant covering two resolutions of the
New York Produce Exchange has been
received and the subject ma tier fully
considered. The resolutions are those
requesting the President and Secretary
of the Treasury to authorize the pur-
chase of foreign exchange of bankers,
and requesting the anticipation Of the
pawn nt of the bonds due January. 1874.
While the Government is DESTROYS of
doing all in its power to relieve the
present unsettled condition of business
affairs, as has already been announced
by the President, it is constrained in all
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 has conferred upon
them Your first resolution presents
difficulties which cannot be overcome.
1t is not supposed that you desire to ex-
change coin in England for United
States notes 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 the current
market rate in New York, 1t would in
voive the Government in the business Of
importing and specializing in gold, since
the Treasury has no use for coin Beyond
its ordinary receipts, and would be OBJ
liged to sell coin so purchased at n price
greater or less than was paid for 1t. Ii
your object is to induce the Treasury
Department to loan United States notes
to the banks in New York upon pledges
and deposits in London of gold, 1t is
asking the Secretary Of the Treasury to
loan the money of the United States
upon collateral security for which there
is no authority in law. If the Seere-
tary of the Treasury can loan notes
upon a pledge of coin he can loan them
upon a pledge of other property in his
discretion, as he has recently been re
guested to do, which would be an extra
ordinary power as well as most dam
gerous business to engage in, and which
my Judgment would deter me from I'M
dertaking as Secretary of the Treasury.
even if by any stretch of construction l
might not find it absolutely prohibited
by law. The objections already men
toned to your first resolution are SO in
separable and conclusive that it is I'M
necessary for ME to refer to the many
practical difficulties which would arise
if an attempt should be made to comply
with your request. Your second reso-
luton calls for the payment at once of the
loan Of 1853, or of the bonds commonly
called the tiyes of 1874 Upon thorough
investigation 1 am of the opinion that
Congress has not conferred upon the
Secretary of the Treasury power to COM
ply with your request in that particular.
and in this opinion the law officers of
the Government concur. Under
these circumstances you will perceive
that while have great respect for the
gentlemen comprising the New York
Produce Exchange 1 am compelled by
my views of the law and of my duty to
respectfully decline to adopt the mea-
sures which your resolutions propose.
(Signed) VIM. A. RICHARDSON,
Secretary of the Treasury.