Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1874-05-15
Senator MOrtOn's Views ON The Finan-
cial Question.

In recent letter to the Indianapolis
Journal Senator Morton gives his views
upon the vetoed Currency bill and the
Presidents veto message. We give the
| following extracts from this letter, as
probably embodying the views of those
members of Congress who sustained the
bill in opposition to the Presidents veto
Mr.. Morton says there appears to be mis-
apprehension in regard to the provisions OF the
bill from which the President withheld his
approval. He says the bill is criticised as if it
authorized new emission of United States
! notes, which would increase the difficulty OF
return to specie payments, and thereby ln-
| volve breach of the national faith pledged Tor
| the redemption of these notes in coin.
| The first section of the bill, and the only one
which relates to United States notes, is In
| these words: "The maximum amount OF
| United States notes shall be four hundred
million dollars"
| To understand the effect of this provision
| reference must be had to previous Legislation.
| By the act of June 80, 1864, it was declared
that the United States notes in circulation, or
| to be circulated, should not exceed the sum OF
| $780, 900. BY the act of April II, 1866, 1t
was provided that of United States notes not
more Than $4,000, 900 may be retired and can
celed within six months of the passage of this
act, and thereafter not more than $4,000, OOO IN
any one month" On the 4th of March, 1865
another act was passed forbidding any further
reduction of United States notes. At that time
the amount outstanding was 1886, ,OOO,0 and
that is the limit below which the United
| States notes cannot be reduced without Con-
| gressiOnal enactment. Under the operation
| of these statutes successive Secretaries of the
| Treasury have assumed the right to reissue at
their discretion $44 000, 600, that is, the differ
ence between 1856, 100000 and $400,0O0,000,
and to withdraw the same again from circula-
| tion Since the 1st of October last there have
| been issued of these notes by the Secretary OF
| the Treasury $26000,0 600, making the whole
| circulation of United States notes $3S2, ,0O0,
| 600.
| The right of the Secretary to reissue any
part of this forty-four millions, or to increase
| the circulation of these notes above three
| hundred and fifty-siX millions, has been con-
| tinually denied by many lawyers in Congress
| and out of it, and a large portion of the
press; and the question cannot be said to be
| free from doubt.
In his veto message, and in his letter to
| Messrs. Clatiin and Anthony on the 2Sth of
September last, the President treats the forty
| four millions as being an existing reserve, a
sum of money already in the Treasury, as
much so as like sum received from taxes, to
be used at the discretion of the Secretary of
| the Treasury for certain purposes.
| The FIRST section of the bill declares the law
to be what the President and Secretary have
assumed it to be. It declares that the maxi
mum amount of United States notes shall be
| $4OO, ,000, 900, that is, the amountbeyond which
/ the issue shall not be extended. The word
"maXimum' means the greatest. 1t does not
mean the precise amount but simply the
amount beyond which the issue cannot go.
The section relieved the Government from
the exercise of doubtful power, which had
| been the occasion of severe animadversion.
| 1t was the wish and expectation of the
friends of the bill that the Secretary should
| put into circulation the remaining SIS, 600 600
| some that the language of the section should
be so changed as to require that amount to be
| put into circulation and kept outstanding.
But it was determined otherwise, and that the
bill should simply declare the maximum
amount of circulation, and leave the power
and discretion of the Secretary what they had
4 been claimed to be. .~- -.esE
The other section of the bill authorizes the
| increase of bank-note circulation to the
amount of $46,00O,000, to be distributed
among the States having less than their pro-
portion upon the basis of the act of 1865, the
new banks to be established upon the terms,
/ liabilities and restrictions imposed upon ex-
i isting banks, being required to secure their
bills by deposit of bonds, redeem them i'll
United States notes upon demand over their
! own counters or in one of the redemption
cities, and with the additional restriction that
| all banks, old and new, shall keep one-fourth
| of the coin interest they receive upon their
bonds deposited for the security of their notes.
| This provision looked forward to the resump-
ton of specie payments, and was the ststep
| that had been taken in that direction by Con-
| gress.
The SAG, ,O0O, 900 provided for came full $780,
000,00 short of equallzlng the distribution