The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-05-19
MORTON ON THE FINANCES

THE CURRENCY BILL AND THE VETO.
LETTER FROM SENATOR o. P. MORTON, WHERE
IN BE SEEKS TO CORRECT 4 MISAPPREHEN-
SION IN A PORTION OF THE PRESS IN REGARD
TO THE PROVISIONS OF THE FINANCE BILL.
Senator Morton sends the following letter
10 the home organ, which WAS published on
Saturday morning:
10 the Editor or the Indianapolis Journal.
WASHINGTON, May 5.-SIR: There appears
10 be a misapprehension in portion of the
press N regard to the provisions of the fl
nance bill which lately passed the two
houses of congress put from which the pres
ident withheld his approval. The bill is cntl-
ciSed as if 1t authorized new emission of Uni
led States notes, which would increase the diff.
Involve breach OF the national faith pledged
for the redemption of those notes in coin. The
rrst section of the BILL and IT, only enc which
relates to the United States notes, Is in these
words:
ssThe 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 80, 1851 it was declared that
the United States notes in circulation or to be
circulated, should not exceed the sum of 40
OOo.IOO By the act OF April IL, 1865, il was
provided that "Of United States notes not more
than SlOOO0000 may be retired and cancelled
within six mo this OF the passage of this act aud
the efore NOT more than s4OtO,WO In any one
monIh- On the 4th OF March. 1865, another act
was uaSSed forDidding any further reduction of
Uniltd States notes. At that time the amount
outstanding was sS56AtuvV, and that IS The limit
below which the United States notes cannot
be reduced without congressional en-
actment. Under the operation of these stat
assumed the right 10 reissue at their discretion
forty-four millions of dollars, that is the differ
enrc between S306,GO0,OOO and Si000Oec5O, and TO
Withdraw the same again from circulation.
Under this asserted power, about million and
half OF dollars Of these notes were issued In
September 1862 and afterwards Withdrawn,
and like sum issued in the fall of 1871, and
afterwards withdrawn. Since the first OF October
notes by the secretary of the treas
ury s2o,0O,0OO, making the whole ole, Gree CO
lation OF United States notes SSS2,WV,bOO
TEE 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 hfty-six millions, has
been continually denied by many lawyers, in
congress ard out of il, and large portion OF the
press; and the question can not be said to be
free from doubt At the last session Of congress
majority of the finance committee of the Sen
ate, through the chairman, Mr.. sherman, re-
ported to the Senate, for its adoption, the fol-
lowing resolution.
the secretary of the treasury has not the power
under the existing laws TO issue United States
notes for any portion of the forty-four million
dollars retired and Cancelled UNI ct the several
laws on that subject.
NV first impression had been against the ex-
istence OF the power, but on further examine
zion, 1 thought IL fairy deducible from q com
parisOn 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. I'm his
veto message. and IN his letter to Messrs. Clafiin
ana Anthony on the 2Sih of September last, the
president treats the forty-four millions as being
an existing reserve, sum OF money already in
the treasury, as much so as a like sum received
from taxes, aud 10 be used at the discretion o
the secretary of the treasury Tor certain pur
poses. He regards the maximum atnoun
and treats the SH,OO0,OU0 as ia aetus
existence. The first section OF the bill declare
rhe law 20 be what the president and secretar,
have assumed 1t 20 be. 1t declares that tn
maximum amount OF United States notes shall
be Sbh.OOO ODO. that is. the amount beyond which
tine issue shall not be extended. The wor'
4.msximum" means the greatest. IL does no
mean the precise amount, but simply tn
amount beyond which the issue can not 60. Tn
section relieved the government from the exer
elsa of a doubtful power, which had been tn
occasion OF severe animadversiou. The secre
tary Of the treasury in his last report thought
important that congress should remov
the doubt hanging over the issue 9
this s4OOOOo0, and used the follow
ing language. "But the law authorizing tn
issue of 100000 Oe has never been repealed, an
has uniformly been held by the treasury depart
la.sA.. AD1 .lis i4w o.-.ceTs thereof TO be in fu
force. In view Of the uncertainty which exist