Wilmington daily gazette., 1873-10-09
From the Baltimore Sun.
ThS FOuFGy -EOur million Reserve

A@e ES@Fsy-H0uR million "ReseRVP.U
h has already been stated that the issue of
greenbacks has been increased on Saturday
from $356, 6,OO0,0 900, which has been the limit
since February 4, 1868, TO 1855, GOO, 900, and
Thai further encrOachments upon what is termed
ehs Treasury reserve" are anticipated. The
increase thus far may be too small 10 work any
ser'o9s mischief but the precedent and the
stacapai involved are too important TO be over
looked. IL either u new issue By government,
or reissue Of what had been already called
10, ~ many people think for the express pur-
pose OF being Cancelled" and DESTROYED, and in
either point OF view raises the legal question as
10 the right Of the Secretary of the Treasury
IA his own discrealiOn, to add 10 the legal ten
der issue Of the government Ia the first
R,aoe II is worthy Of remark that there Is
tallacy inherent and implied in the very use
OF the phrase treasury reserve" rs appled to
the $44OOO,OOOs Of greenbacks which we're
called 10 and retired from circulation under the
act OF Congress Of April IL, 1866, giving power
TO the SECRETARY 10 retire and cansel
SAsouoOOO month. 1t is phrase for which,
We eelleye, We are indebted TO Mr.. Richardson,
himsesi, IN his book on the public debt, pub
hlhed in 1872, and is virtually begging of the
whoieq qnation in dispSta. A reserve oFdi,
naFily signifies something held back, but which
may Be nsed or drawn upon in an emergency.
II vas Mr. Richardson Who argued that the
enaant o. IA, ,OOOO the di ference between
~ aelual volume Of the legal-tender currency
ansr the process Of retiring and calling 10 the
leEaI-lendsrs uLder the act of April l2. 1866.
bad ceased, and the amount of S4OO, 600, 900.
nxed a. the original limit beyond which the
paper enTTency ofthe country was not to be
increased, constituted such, a reserve" Let
us see upon what foundation in point Of law
this argument rests. About the limit of 800.
100000 there is no dispute. IL was fixed AZ
early as 3Oth Of June, 1854 while the war was
sui 10 progress, and it must be be remembered
that The whole legal tender business was the of
spring OF the war, essentially a war measure,
G1d oaiy Justihable, If at all, upon theIplea Of
nlFiet necessity. The act Of thaIhlate, however.
docs not ix the circulation OF that amount. nor
aay that "four hundred millions" must be issued
end kept outstanding al all times, and the act
o. April II, 1856. already referred TO, passed
eincs the war, and AFTER lis necessities had gone
By cleary contemplated q reduction of the
circulation below $400, 600 900 when il author
t1ed The Secretary Of the Treasury 10 retire and
cancel legal tenders at the rate Of 100000 a
monsa; Hthere we're OF could be any doubt
upon this point il Is removed by the language
OF the repealing act Of February 4, 1868, which
took away from the Secretary the power con-
ieFTed upon him By the act Uf April IL. 1866.
tlon OF the currency" il provides that from
The date OF its passage 10 Authority Of the
Secretary Of the Treasury to make any reduc-
ton o. the currency BY retiring and canceling
United States notes shall be and is hereby sus-
pended; but further declares that nothing there
In contained shall prevent the replacing Of
mnsilated United States notes, Of the same
character and amount. This act alone 1t
seems, ought 10 be conclusive of the question
asto the power Of the Secretary 10 treat as
reserve the notes previously retired and can
celeds and 70 reissue or replace such notes with
others. IL such poWer'exlsts, Il is difficult to
see where the reduction Of the currency took
piece. o. what necessity there Wss for Congress
70 stop the process Of reduction.
The power given to the secretary by the act
Of April II. 1866, and power in such cases is
equivalent 10 duty, was not simply to .irelire."
bat II the words Of the act to cancel" the NOTES
80 Withdrawn from circulation, Now 10 scan
ceP . note or other obligation means 10 DESTROY
It, Cancelled treasury notes certainly never
could have BEEN meant TO be reisued. and the
power lo retire and cancel was most unecessariIy
given II the power 10 issue other notes ia the
place OF those Withdrawn remained in the hands
81 the secretary.