Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1874-05-21
Senator Morton on the Finance Cues
ton.

| N recent ltlIbT TO lHt InUldHdDOIlS
! J0urnaL 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 a
misrepresentation in regard to the provis-
ions of the bill from which the President
withheld his approval. He says the bill
is criticised as if it authorized a new
emission of United States notes, which
would increase the difficulty of return
to specie payments, and thereby involve a
breach of the national faith pledged for
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 pro-
vision 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 500, 000,0
BY the act of April -, 1866, it was pro-
vided that "of United States notes not
more than $10,000,000 may be retired and
Cancelled within six months of the passage
of this act, and thereafter not more than
81 100000 in any one month" On the 4th
of March, 1868, another act was passed
forbidding any further reduction of
| United States notes. At that time the
amount outstanding was 1856 100000, and
that is the limit below which the United
States notes cannot be reduced without
Congressional enactment. Under the
operation of these statutes successive
Secretaries of the Treasury have assumed
the right to reissue at their discretion
S44 900, 900, that is, the difference be-
tween 1856, 600 and $400,0O0,00O, and
to withdraw the same again from circula-
ton. Since the LIST of October last there
have been issued of these notes by the
Secretary of the Treasury $26,000,00
making the whole circulation of United
States notes $3.50, 100000
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 continually denied by many
lawyers in Congress and out of it, and a
large portion of the press; and the ques-
ton cannot be said to be free from
doubt.
In his veto message, and in his letter to
Messrs. Clafin and Anthony on the 2Sth
of September last, the President treats
the fortv-four millions as being an exist
ing reserve, sum of money already in
the 1reasu ry, as much so as like sum
received from taxes, to be used at the
discretion of the Secretary OF the
Treasury for certa m purDOSeS
The first section of the bill declares the
law to be what the President and Secre-
tarv have assumed it to be. 1t declares
that the maximum amount of United
States notes shall be 800, 900, 600, 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 cam
not 60.
Tie section relieved the Government
from the exercise of a doubtful power,
which had been the occasion of severe
animadversiOn.
Ii was the wish and expectation of the
friends OF the bill that the Secretary
should put into circulation the remaining
$4,000, 600 of the $44 ,000, 600, and 1t was
proposed by some that the language of
the section should be so changed rs TO
require that amount to be put into circu
l,.on and kept outstanding. But 1t 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.
The other section of the bill authorizes
the increase of bank-note circulation to
the amount of 100000 goo, to be disuib-
uted among the States having less than
their proportion upon the basis OF the
net Of 1865, the new banks to be estab-
lished upon the terms, liabilities and re-
strictions imposed upon existing banks,
being REQUIRED to secure their bills by de
posit of bonds redeem them in 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
onefourth Of the coin interest they re
ceiye upon their bonds deposited for the
security Of their notes This provision
looked forward to the resumption OF
specie payments, and was the first step
that had been taken in that direction by
Congress.
Tie S46000.000 provided for came full
s3000O,000 short Of eoualizing the distrl-
button among the States upon the basis
Of the act OF 1855. Under that act the