The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1874-05-13

49, ves
Sir: Tisre q ksxSs . be = misap-
prehension in portion of the press In
regard to the provisions OF the Finance
Bill which lately passed the two
Houses OF Congress, but from which
the President withheld his approval.
The bill is criticised as if it author
lied new emission of United States
notes, which would increase the diff
Gully ola return to specie payments,
and thereby involve . breach OF the
national faith pledged for the redemp-
ton OF those 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
millions of dollars"
To understand the effect of this
provision, reference must be had to
previous legislation. By the act of
June 30, 1864, it was declared that the
United States notes in circulation or
to be circulated, should not exceed
the sum Of -four hundred millions. Bv
the act of April 18th, 1866, it was pro-
vided that ''of United States notes
not more than ten millions of dollars
may be retired and cancelled within six
months of the passage of this act, and
thereafter not more than four millions
OF dollars in any one month" On the
4th of March, 1863, another act was
passed forbidding any further reduc-
ton of United States notes. At that
time the amount outstanding was
1856, 600, 600, and that is the limit be-
low which the United States notes
cannot be reduced without Congress-
ional enactment. Under the opera
ton of these statutes, successive Sec
retarics Of the Treasury have assumed
the right to reissue at their discre-
ton forty four millions of dollars, that
is, the difference between 1856 900, 900
and S4OO,OOO, 900 and to withdraw the
same again from circulation. Under
this asserted power, about a million
and half of dollars of these notes
were issued in September, 1869, and
afterwards withdrawn, and like sum
issued in the fall of 1871, and after
wards withdrawn. Since the first of
October last, there have been issued
OF these notes by the Secretary of the
Treasury $26, 100000 making the
whole circulation Of United States
notes 1892 ,OO0, 900.
The right OF the Secretary to re-
issue any part of this forty-four mil
lions, or to increase the circulation OF
these notes above three hundred and
ffty-six millions, has been continually
denied by many lawyers, in Congress
and out of it, and lagge portion of
the press; and the question can not be
said to be free from doubt, At the last
session of Congress, a majority of the
Finance Committee of the Senate,
through the chairman. Mr.. Sherman,
reported to the Senate, for its adoption
the following resolutions:
Resolved, That, ia the opinion of
the Senate, the Secretary of the Treas
ury has not the power under the exis-
ting laws to issue United States notes
for any portion of the forty-four mill
lion dollars retired and Cancelled nnder
the several laws on that subject.
My first impression had been against
the existence of the power. but on
further examination. | thought it
fairly deducible from comparison of
statistics, and personally urged upon
the President and Secretary the free
use of the forty four million reserve
to check the progress of the panic and
alleviate its disasters.
In his veto message, and in his let
ter to Messrs. Claflin and Anthony on
the 18th Of September last, the Presi-
dent treats the forty four millions as
being IN 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 GER
imum amount of United States notes
nc Sim lhNl lhl onl
OOO, 900 as in actual existence.
The first section of the bill declares
the law to be what the President and
Secretary have assumed it to be, 1t
declares that the maximum amount of
United States notes shall be 800 900.
900, that is. the amount beyond 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 Govern
ment from the exercise of doubtful |
power, which had been the occasion of |
severe animadversion
The Secretary of the Treasury in |
his last report, thought Il important |
that Congress should remove the |
doubt hanging over the issue of this |
44 ,OO0, 600, and used the following |
language:
But the law authorizing the issue of /
the maximum of 800, 00O, 600 has new
er been repeated, aud has uniformly |
been held by the Treasury Department
and the law officers thereof to be in
full force. In view of the uncertainty |
which exists in public sentiment as to |
the right of the Secretary of the Treas
ury to issue United States notes in ex-
cess of the minimum, and the conflict |
OF opinion as to the policy of doing SO,
that he has that right under |
the law, l respectfully recommend |
that Congress shall set these questions
at rest by distinct enactment
1t was the wish and expectation of !
the friends of the bill that the Secre- |
tary should put into circulation the /
SIS, 0O0, 600 of the $i4 CO.,
UOO, and it was proposed by 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 been claimed to be.
Had Congress taken from the Secre-
tary the enormous power to put the
circulation of United States notes up
to 500 900 600, or reduce It to $780, !
600, 600, by fixing it at S46o, $50 600. the
act would have met the appreciation of
a large part of the people, who believe