New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-04

The Secretary Of the Treasury has adj
! dressed the following letter to Franklin
Edison, president Of the New York Produce
Exchange. New York:
TRRAscRy DEPARTMENT.,
Washington D. e.. September 30. 1873. s
SIR-Iou. letter Of the twenty-eighth in.
slant, concerning two resolutions of the
New York Produce Exchange. has been
received and the subject matter fully con-
sidered. The resolutions are as follows:
WHEREAS. The critical condition of the
commercial interests Of the country requires
immediate relief by the removal Of tie
block an negotiating fovei IN exchange ;
therefore. be it
Rtsoteed, That we respectfully suggest to
the Secretary of the Treasury the following
plans for yeliet in this extraordinary emec.
gency:
Tirst-That currency be Immediately
issued TO banks or bankers upon satisfac-
tory evidence that gold has been placed
upon special deposit in the Bank OF Eng.
land by their correspondents in London to
the credit of the United States. to be used
solely in purchasing commercial bills of
exchange.
Second--That the President of the United
States and the Secretary OF the Treasury
are respectfully requested to order the i'm
mediate prepayment of the outstanding
loan OF the United States, due January 1,
1871.
While the government is DESTROYS Of do
ing ali in its power 10 relieve the present
unsettled condition Of business affairs as
has already been announced by the Presi.
dent. il is constrained in all it's acts to keep
within the letter and spirit Of the laws.
which the officers of the government. are
sworn 20 support, and they can not 60 be.
yond the authority which Congress has
ont &hAv, 1l,,%.
presents difficulties which can not be over
come. II is not supposed that you desire
to exchange coin in England for United
States notes in New York at par.
If your proposition is for the government
70 purchase gold in England 80 be paid for
in United States notes at the current mar.
ket rate in New York, it would involve the
government in the business Of importing
and specializing in gold, S ince the Treasury
has no use for coin beyond its ordinary re.
ceipts. and would be obliged to sell the
COLI so purchased a: a price greater Or les,
than was paid for il.
# your object is 20 induce .he Treasury
Department 20 loan Uni,eG States notes 70 |
the banks in New York upon pledges and |
deposits in London of gold. it is asking the |
Secretary of the Treasury to loan the mo. |
ney Of the United States upon collateral Sc. |
curity, for which there Is no authority in !
law. If the Secretary of the Treasury can /
loan notes upon a pledge of coin he can loan I
them upon pledge of other property. in
his discretion. as he has recently been re.
quested to do. which would be an extraor.
binary power, as we'll as a most dangerous
business to engage in. and which my judg.
ment would deter me from undertaking as
Secretary of the Treasury, even if. by any
stretch of construction might not find it
absolutely prohibited by law. The Objec-
tons already mentioned to your first reso-
luton are SO insuperable and conclusive. |
that it is unnecessary for me TO refer 70 the
many practical difficulties which would
arise if an attempt should be made to COM
ply with your request.
Your second resolution calls for the paw.
nent at once Of the loan of 1861 or the
bonds commonly called tives of 1874. Upon
thorough investigation, am OF opinion that
Congress has not conferred upon the Secre.
AIRY of the Treasury power to comply with
your request in that particular: and in his
opinion the law officers Of the government
'oncur. Under these circumstances, you
will perceive that while have great respect
or the gentlemen comprising the New York |
'roduce Exchange. l am compelled By my
news of the law. and of my duty. to re-
pectfully decline 20 adopt the means which
our resolutions propose.
have the honor TO be. very respectfully.
WILLIAM A. RICHARDSON.
Secretary OF the Treasury.