The Cairo bulletin. [volume] (Cairo, Ill.) 1872-1878, 1873-10-01
FROM WASHINGTON.
A REDUCTION,


WAsHISGroS, September 3o.-lt is
stated At the treasury department tina, the
department statement tomorrow will eX-
hibit q fair reduction In the public debt,
notwithstanding the revenues Of the
month were comparatively very light
The treasury disbursements for the usual
expenses of the government for the
mouth ending to-day have been below the
average expenses for the last three or four
months.
INTEREST TO BE rAiD.
NTressurer Spinner will lrespond TO Il 9
request Of the national banks for pre-
payment of interest on their new per
cant. registered bonds in The treasury, us
security for circulation and public deposits
bv sentiig them chocks for the amount
of interest due on the first of November
on such bonds, less rebate at & per cont.
per annum.
The Oil ;ial statements show that United
States currency of all kinds outstanding
At this date is $40, 292, 3O3.
IMPORTANT LETTER FROM TugsEoRLTARY
OF THE TREASURY.
The secretary of the treasury has ad-
dressed the following letter to franklin
Edison, president Of the New York pre-
! duce exchange:
TREASURY DEpAITMENTNT,
WAsHfNGToS, September 80, 1873.
SIR l our letter of the 29,L int, con-
corning Two resolutions of the Now York
produce exchange, has been received and
subject matter fully considered. The res
olutions are as follows:
WHEREAS, The critical condition of The
commercial interests of the country re.
quire i'm mediate relief by the removal OF
Tue block in negotiating foreign exchange;
therefore be 1t
Resolved, That we respectfully suggest
to the secretary Of the treasury the fol- !
lowing plans for relief in this eytraordi- |
nary emergency;
First, that currency be Immediately is
sued TO banks or bankers, upon
satisfactory evidences that gold
has been placed upon special
deposit in the Bank of England by their
correspondents 10 London to the credit Of
the U nited States, to be used solely in pur-
CHASING commercial bills of exchange.
Second, That the president OF the
United States and secretary of the treas
ury are respectfully requested to order
the immediate prepayment OF the out
standing loan Of the United States due
January /, 1874"
While the government ia doing a.! in
| its power to relieve the present unsettled
condition of business affairs rs has already
been announced by the president, it is con-
strained in all its acts to keep within the
letter and spirit of the laws, which they
rs officers Of the government are sworn
TO support, and they cannot SO beyond
the authority congress has inferred upon
them.
Your frs. resolution presents difficulties
which cannot be overcome. 1t is not to
be supposed that you desire to exchange
coin in England for exchange in New
York for par. If your proposition is for
the government 10 purchase gold
in England to be pail for United
| Ststes notes at the current market rate in
I Now York il would involve the govern
mont In the business of importing and
Specializing in gold, since tho treasury has
no use for coin hey ond its necessary re.
ceipts, and would be obliged to sell the
coin SO purchased a. u price greater or less
than was paid for it. II your object is to
induce the treasury department TO loan
United States notes to banks in New
York upon pledges and deposits in Lon
don of gold, it is asking the secretary OF
the treasury to loan the money of the
| United States on collateral security,
for which there is no authority in law.
| II the secretary of the treasury can loan
notes on a pledge Of coin, he will loan
them on pledge Of other property in his
| discretion, rs he WAS recently compelled to
do which would be An extraordinary
power as we'll as most dangerous business
to engage in and which my judgment
would deter me from undertaking MS secre-
! tary of the treasury, even II 10y any
stretch of contraction l would not
find it absolutely prohibited by law. he
objections already mentioned to your list
| resolution are insuperable and cone Iuslve,
and II 10 unnecessary for me to refer to any
| practical difficulties which would arise II
an attempt should be- made to comply
with your request. Your second resolu-
ton calls for payment ut once of the loan
Of 1858 or bonds commonly called 5s Of
1874. Upon athorough Investigation | am
Of the opinion that congress has not con-
| fcrred on tho secretary of the treasury
power to comply with your request in
that particular, and in this opinion the
law offices of the government concur.
Under these circumstances you will per-
ceive that while I have great respect for
the gentlemen comprising the Now York
produce exchange, / am compelled by my
views Of law and my duty to respectfully
decline to adopt the measures which your
resolutions propose. ] have the honor TO
be very respectfully
[Signed WIN. A. RiHARpsoN
Secretary OF Treasury.