The New York herald., 1877-03-17
CAN THE PRESIDENT BORROW
MONEY?
CONSTITUTIONAL AND. LEGAL oBJEcTIoNs-rEN
MILLION DOLLARS WANTED.

CONSTITUTIONAL AND LEGAL oBJEcTIoNs-TEN
MILLION DOLLARS WANTED.
WASHINGTON, March 18, 1871
Tho failure OF Congress to provide for the main
tcnance Of tho army has gwen rise TO several ques.
tons OF law aud expcdency the latest OF which is Can
the President borrow money? There is no Law tho
statute books expressly iorbdding the President to
this, but there several which have very strong
indirect bearing on the subject. Section 3,670 Re.
viscd Statutes Ia as tollows:-
No department Of the government shall expend any
fiscal year in OF appropriations made BY
Congress for that fiscal year. involve the government
contract Tor he future Of money in OF
such appropriations
AS appropriation whatever has been made for tho
supper. Of the army for the fiscal year ending June So
1875. any expenditure, however limited, any
tract involving nm expenditure would necessarily be
an ''cxcess," and therefore an infringement OF law.
TINS has apparently been overlooked by those
who rely upon section ), 1872 for army supplies
With regard to borrowing money 10 pay tho army II
would seem that II the President chooses 10 assume
the responsibility OF negotiating loan it must be
strictly personal and private transacton as no ndi:
states for such purpose Congress alone can do that,
under article OF the constitution paragraph z
ton s.
WHAT CONSTITUTES PUBLIC MONEY.
very serious objection to borrowing money to be
rsed In lieu of Appropriation will be found in tho
DC, without legislative enactment, "pubc money" 1t
i perhaps questionable whether tho Treasury Depart
such money. But, II 1t were received officially by the
Treasurer OF the United States. therc would DO both
constitutional and statutory obstacles IN the way Of
getting II out Of tho Treasury Paragraph section o.
article !, Of the constitution reads thus:--
No money shall lie withdrawn from the Treasury in
consequence OF approximations made by law.
Section 3.676 Revised Statutes says
All drawn upon the treasurer OF the United
States shall specify the particular appropriation which
the should be charged.
No appropriation having been made, neither tho con-
stltution nor the law could he observed Suppose,
however, that the borrowed money kept under
the control OF the Secretary OF War, and by him ad
vanccd 10 the various dsbui sing officers Of his depart
meni could he hold them to account for II? Tho
laws in relation to tho accountability OF dsbursing
officers and the rendition OF their accounts apply OK
cluslvcly TO public funds and would prove quite IN
applicable to any mlsappcaton OF or failure ac-
count Tor borrowed money. Another point might TO
raised In this connecion-yiZ that accounts oil bor
rowed money couu not be recognized by tho Treasury
Department. because thoy would represent
mont OF public funds
TEN MILLION DOLLARS NEEDED.
II Is estimated thut SIT, 5000 will be required
to carry on the army until the regular session OF Con-
gress, of which about half will be absorbed paying
troops The othcr objects TO be provided cloth
ing, camp and garrison cqupagc transportation bar
racks anu quarters horses Tor cavalry and light ur-
tllery hospitals subsistence stores, expenses ot the
signal service medical stores, ordnance storcs ord
nance, manufacture OF arms, armament OF iortidca.
tons expenses o recruiting and sundry contingent
mons