The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-10-02
The Government and the Purchase of
Exchange-Leaterfr from the Secretary
If slxo TranssyFx1

Exchanse-Leaterfro from the Secretary
Of tic Treasury.
WASHINGTON, September 30.-The Secre-
tarv of the Treasury has addressed the fol-
lowing letter to Franklin Edison, Esq. presi-
dent of the New York Produce Exchange,
New York:
Treasury Department, Washington, Sep
TENDER 80, 18I3.-Sir,- Your letter of the
both instant, covering two resolutions of the
New York Produce Exchange, has been re-
ceived and the subject.matter fully consider
ed. The resolutions are as follows:
"Whereas the critical condition of the
commercial interests Of the country requires
immediate relief by the removal OF the block
in negotiating foreign exchange; therefore
q Resolred, That we respectfully suggest
to the Secretary of the Treasury the follow
ing plans for relief in this extraordinary
emergency First, that currency be imme-
diately issued to the 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 CONNER
cial bills of exchange; second, that the
President of the United States and the
Secretary Of the Treasury are respect
fully requested to order the immediate pre-
payment of the outstanding loan OF tue
United States, due January l, ISL t."
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 Governments are sworn to sup
port. and they cannot 60 beyond the authority
which Congress has conferred upon them.
Your first resolution presents difficulties
which cannot be overcome. 1t is not sup
posed that you desire to exchange coin I'D
England for United States currency i'll New
York at par. If 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 involve the Government in the
business of importing and specializing
in gold, since the Treasury has no use
for coin hey ond its ordinary receipts, and
would be obliged to sell the coin so pur-
chased at price greater or less than was
paid for it. If your object i TO induce the
Treasury Department TO loan United States
notes to banks in New York upon the pledge
and deposit in London of gold. it is asking
the Secretary of the Treasury to loan money
OF tile United States upon collateral secu-
rity, for which there is no authority i'll law.
If The Secretary of the Treasury can loan
notes upon a pledge of coin he can loan
them upon Il p'ed4c of other property in his
discretion. as he has recently been requested
to do, which would be an extraordinary
power rs well as Il most dangerous business
to engage in, and which my judgment
would deter NE from undertaking as Scare
tlry of the Treasury, even if by any stretch
oil construction | might not find it absolutely
prohibited by law. The objections already
mentioned 10 your first resolution are so it,
supeIuble and conclusive that it Is unnece>-
sary for me to refer to the many practical
difficulties which would arise il an atteupI
should be made to comply with your re-
quest.
Your second resolution calls for the pay.
ment at once of the loan of 1858, or the
bonds commonly called "tives Of 1874
Upon thorough Investigation am OF the
opinion that Congress has not conferred
upon the Secretary of the Treasury the
power to comply with your request in that
particular; and in this opinion The law off
GERS Of the Government concur.
Under these circumstances you will per.
ceive that while have great respect for the
gentlemen comprising the New York Pro
duce Exchange, am compelled, by my
views of the laws and of my duty, to re
spectfully decline to adopt the measure:
which your resolutions propose.
have the honor to be, very respectfully
YOURS, &C., WILLIAM A. RICHARDSON,
Secretary Of the Treasury.