National Republican. (Washington City (D.C.)) 1872-1888, 1873-01-15
Has the Secretary Of the Treasury Power
TO Issue Notes In Lieu orthc sii,OOO, 900
OF Notes Retired

~ tNNuf NottN Ahf
OF Notes Rctircds
The Senate Committee on Finance, In obe-
dlence to the Senate resolution offered by Mr..
Scott On the 9Th instant, directing them to In
qulre whether the Secretary Of the Treasury has
power, under existing laws, 10 issue United
states notes In lieu OF the fu,O0O,OO0 Of notes
retired and cancelled under the act Of April ~,
1860, submitted report yesterday.
The committee say that the power Of Congress
10 authorize the issue Of fcgal-tender notes
under the several acts relating thereto has been
disputed, but may now he considered as ssttled
by all departments Of the Government. This
authority, however, was exercised by congress
only under the most pressing necessity, a. an
incident 10 the power to borrow money, To coin
money, 10 declare and maintain war, and 10 pro-
vide for the national defence and general
welfare; and the power thus exercised was felt
TO be q dangerous one, liable To abuse, and was
carefully limited and wOrled.
The act Of April ~, 1855, referred 10 In the
resolution OF the Senate, was passed In approval
Of and In accordance with the avowed policy VI
Secretary McCulloch TO retire all shOrt-tine lia-
bilities by funding them into bonds and 10 reduce
the volume Of United states notes, so that those
remaining outstanding should h., frUin their
scarcity, at par with gold.
The committee are Of opinion that To COnstrne
notes Cancelled under II would allow the Secre-
tary OF the Treasury to Increase the debt In direct
only have to reissue the notes In payment Of a
bond issued. AMI then cancel the notes and issue
others In their place. II this way both notes and
bonds would be outstanding. The plain intent
Of the act was to reduce and contract the cur
renCy.
The committee are unanimously Of opinion
that the Assistant Secretary OF the Treasury
acted according to what he conceived to be his
legal power aud public duty In the reissue Of five
million legal tenders last October; hut they also
believe aud make an elaborate argument to show
that the Treasury Department did not then and
does not now possess legal authority to issue
legal tender notes In excess Of t956,OOO,OOO.
In conclusion the committee say \ power
over the currency so wile-reAohing as the power
TO issue II,OOO, 900 Of new legal tender notes II
one that ought not TO rest upon Implication. II
should not rest upon q doubtful construction Of
words In law passed three years before, and
used In regard 10 loans negotiated under widely
different circumstances. Congress might well
grant power during war that II would not con.
fer In peace. The full exercise Of such power
would undoubtedly Affect the nominal value Of
all property In the United States to the extent OF
at least ten per centum, and the real value OF
burden as between debtor and creditor OF al
least ten per cent. on all contracts to he per.
he by clear and unambiguOus language, and
should not he Inferred by subtle reasoning, OF
depend upon the pressure OF interested parties
or changing views OF public policy.
In all questions Of construction, ~ to the ex.
tent Of power conferred by law In matters which
affect the public credit or public securities, q
reasonable doubt as toA grant OF power should
be held to exclude II.
After a careful review OF the subject, your
committee are OF the opinion that the Secretary
OF the Treasury has not the power to issue Uni
ted states notes In excess OF $3.50, 900 900 out
standing when the act Of February I, 1868, took
effect, but he may replace with new notes all
mutllated or defaced notes, and, within the limit
OF $3.50, 10000, may exchange or replace new
notes for old ones. And your committee report
the following resolution:
Resoipod That In the opinion OF the Senate the
Secretary OF the Treasury has not the power un-
der existing law to issue United States notes for
any portion Of the fOrty-four millions Of United
states notes retired and Cancelled under the act
HnnFOyed April ~, 1865,