The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-12-24
WE have never seen any reason to

We have never seen any reason to
change the opinion, formed on care
full examination of the facts, that the So
cilled "reserve' Of forty-four millions of
greenbacks was not lawfully within the
control of the Treasury department..
Circumstances have, however, says The
New York Times, so changed since the
question was first brought to public
notice, that it would no longer be reason |
able or just to blame the Secretary of the
Treasury for acting on the view of which
he entertains, that the law places this sum
in his hands to be used at bis discretion
for the current expenses Of the
government. He IS sustained in this posi-
ton by the TACT that after the matter was
explicitly laid before Congress, that body
deliberately declined to take action in re-
gard to it, although it was understood that
the Treasury department would act on its
own view of the case unless otherwise in.
stiucted. The department has, moreover,
been to such degree compelled to resort
in its conduct throughout the distressing
period of the panic such careful adherence
to the letter and spirit of the law,
that it would not be right to criti-
else it for the exercise of power which
seems to be clearly its own, and which
Congress refuses to dispute. We agree
with those who think that it is most unfor-
tunate that any room should have been
left to an executive officer to imagine that
he possessed such remarkable discretion.
1t is an evidence of the confusion into which
our Lawmakers have fallen of late years,
that they should decline to take cognizance
of case of such great Importance, and
should leave to inference the exercise of
power such as no free government has ever
before tolerated except in moments of ex-
IRENE necessity. But since this is actually
the case, is it worth while to expend our
censures upon the executive officer, who is
undoubtedly acting conscientiously. reserv-
ing none for the legislative body that takes
SO loose and dangerous course as Con-
gress has taken in this matter?
And it is to be remembered that the
Secretary now asks Congress to definitely
regulate the use of the reserve. In his
annual report he says: SIN view of the
uncertainty which exists in public senti-
ment as to the right of the Secretary of
the Treasury to issue. United States notes
in excess of the minimum, and the conflict
of opinion as to the policy of doing so,
concedng that he has that right under the
law, l respectfully recommend that Con-
gress shall set these questions at rest by a
distinct enactment" This Congress ought
to do. The Secretary points out what ex-
perience has taught plainly enough, that
unless this is done-unless his power over
the reserve is limited, and the manner in
which it shall be used clearly defned-he
will constantly be subjected to pressure
first from one side and then from the
other, at one time for expansion, at an
other for contraction. He asks that the
reserve, if authorized by law, be devoted
solely to the ordinary demands of the
Treasury, and for the redemption of frac-
tional notes, "the amount so issued to be
returned to the reserve es soon as the con-
dition of the Treasury shall warrant it,
That the Secretary should be allowed a
reserve to meet transient emergencies is
but the dictate of common sense. The re-
ceipts of the Treasury and the demands
upon it are. of course, generally to be de-
termined nearly enough, but they cannot
always be calculated exactly, and it is alb
surd in business of such dimensions to
suppose that cash reserve can be dis
pensed with. AS long as the only substi-
tute for cash we have is United States
notes, the reserve must be in these.