The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-01-07
"reminiscences Of Former Legislation
'v Is the Issue Legal /?
A CONTRAST OF POLICY.
Events in Wall Street To-Day
Stocks Generally Steady.
MONEY CONTINUES EASY.
Gold Firm-Railroad and Government Bonds
in Good Demand.
WALL STREET. !

III G00Q demand.
-lfa WALL STREET,
TUESDAY. jan e-P. n
February 4, 1858, Congress passed an act sus-
pending the further reduction Of the currency
and that sum is now the minimum limit Of issue.
But the law authorizing the issue OF the maximum
uniformly been held by the Treasury Department.
and the law oficers thereof to be In full force
Report Of the Secretary OF the Treasury. Dec l, 1879
Was practitioner in . court ever guilty OF such
special pleading as Is exhibited In the foregoing
extract from the last annual report OF the Secre-
tary Of the treasury "The law authorizing tho
issue of the maximum has never been repealed.'s
Does tho Secretary think that the Congress to-
whom his report Is addressed has no knowledge
OF the laws passed or does not know the meaning
Of plain Englishf And In paying this compliment
to the national legislature does he suppose that
the whole people have arrived at such q state Of
imbecitty as to believe that the 'King can do no
wrong ~ One Is almost forced to this conclusion.
Now, will the Secretary honor Congress ana the
people BY giving further tnformation, and let uS
know whether the laws authorizing the issue OF
tile 7 $40 Treasury notes, the compound interest
notes, the per cent notes, the per cent
notes and variety Of other Issues, which were
authorised to meet "a .r8l,s aa
A GREAT EMERGENCY, I'D .Te-
have ever been repealed II 80, by what acts and
the dates thereof that the simple people may read
for themselves and discover wherein they dinel
from the act Of 1885, directing the Secretary to e
tire and cancel "-a e., pay OLA certain portion Of
the United States notes illegal tenders) at rate
not exceeding $4,ooo,ooo per month. Or will the
Secretary inform Congress that the acts author1z-
ing these various issues have never been repealed,
and that 1t 'has uniformly been held by the Treas
ury Department and the law oflcers thereof" that
these several acts are in "lull forceYv simple.
minded people supposed that when Congress Or
dered certain class OF the United States debt to
be paid that was the end OF the matter. It seems,
however, TO have been reserved Tor the Treasury
Department OF 1S72-73 to discover that Congress-
might order such payment and 80 long as the Sec
Rotary obeyed and did pay he could recreate the
same debt the'next day, always provided Congress
did not by special act repeal the original law Of
issue. The Information thus asked for is important
to every merchant and banker In the country.
What is the power now. claimed by the Secretary
OF the Treasury in regard to these various issues Of
interestbearing notesi 1t is important for thu
reason that his Interpretation OF the law has be-
come the rule Of his action, and Congress- and the
people submit What a contrast Is exhibited be|
tween the present Senate OF the United States and
that which only faH
SIX YEARS AGO
was 80 jealous of Executive independence that Is
nearly cost President his of1cial headi Yet, in
the face of q resolution Of the Senate declaring
that the acts OF q Secretary were without warrant
Of law, succeeding Secretary repeats the acts Of
his predecessor, and the Senate acquiesces without
q word OF complaint. "And has uniformly BEEN
held by the Treasury Department and the law on
GERS thereof to be in full force.n This propositions
is emphatcally denied The Secretary has evtI
IDENTITY contented himself with the simple stateI
ment and clearly does not propose to troubl0
either Congress the people with the proof which
must be on the records OF the department II In ex-
istence at all. In examining the question, one Ia
necessarily confined to the public acts OF the de-
partments and the public expressions Of the Secre-
taries ana other of1cers thereof.
The act suspendlng the further retiring and
cancelnng' Of legal tenders became . law in Feb,
ruary, 1858. The first annual reports thereafter
were In December, 1868. Secretary McCulloch in
his report OF December Ii silent upon the subject
except In expressing regret that the authority to
continue to contract had been withdrawn, and
that the act of Congress In this feature was un-
wise.
THE COMPTROLLER OF THE CURRENCY,
however,in his report OF the Same date lets In
some light upon the subject Mr.. Hulburd says in
speaking Of panics and the remedy therefor :-'Tf
the Treasury Of the United States could hold in re-
serve certain amount OF legal tender notes in
excess Of the amount of money In regular circula-
ton, to be advanced to banking institutions at a
specified rate OF interest upon the deposit Of
United States bonds as collateral security source
of relief would be established which would enectus
ally PREVENT &c. 80 In time of severe
pressure the Bank OF England has been authorized
by the Chancellor Of the Exchequer to issue ita
notes in of the limitations prescribed In its
charter. This was done in violation, or without
@VrN
ment OF an act OF Indemnity. In our government no
power to make such pledges exists, and therefore
any extraordinary provision OF the character sug-
gested must be authorized by law" 1t s clear, by,
this quotation OF opinion that the Comptroller ofthe
Currency-one OF the ofncers Of the Treasury De-
partment-did not then hold that the department.
had PRESERVE" OF some $44eoo,0o0. II the chief
Of the department had held any such opinion 1t Is
not likely that we should have seen one Of hin
ondcers in his report to MIN, suggesting the crea-
ton "by law'' ola reserve" Nor does there exist
the nrst.partice Of evidence yet made public that
THE ADMINISTRATION OF THE FINANCES
during the time In which both laws were passed-to
w.t. that of 1885, authorizing the retiring and can
ceiling and that OF 1885, Withdrawing such authors
ity to further retire and maintained the
position that the law authorizing the maximum
was In full force" Next comes Mr.. Boutwell, aS
Secretary OF the Treasury, who does not, In his
first report--Decembera 8, ls6o-hint at the posi-
bility OF reserve" Indeed. II he entertained
such an opinion ct that time, he was anxious to-
increase the reserve, for he asked for the restora
ton OF the law Of 1886; or. rather, for the
authority to retire and cancel - sum Of legal ten
ders not exceeding $4,000, 900 per month" Now, 10
the department held ct that time that the
81 ooo 900 which had been retired was . reservei
to be used the will Of the Secretary what are we
to think Of the Secretary who not to be Salts
ned with the power Of making and unmaking
~, 900, 900 Of money at his pfeasuref But We d0
him injustice. He urged 1t upon Congress ss q
necessary step towards the nnal result--specd
payments-and believing, as he then claimed that
1t a step which must be taken sooner or later,