The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1877-06-18
Attorney Generals Opinion on the
Subject Of Issuing silver Coin.

w WASHlN0T0H, June lo.-ln6 10li0W-
ing is the full ,ext of the Attorney Gen.
erals opinion ON the subject of issuing
silver coin IN lieu of fractional currency,
out of circulation:
DEPARTMENT OF JUSTICE
WASHINGTON, June l6.
To Hon. John Sherman, Secretary of the
Treasury:
SIR:-By your letter of the l1th inst,
1 am informed that the amount of sub
sidsry silver coin, when added to the
fractional currency which had been issued
and not redeemed, reaches practically to
$5O,000,00O, and you inquire in
substance whether under the third section
of the joint resolution of July 22, 1876,
you are authorized to continue the issue
OF silver coin in place of fractional cur.
rency heretofore Issued which Is shown
to have been lost or destroyed, l have
the honor to reply that by the act of
January 4, 1875, the Secretary OF the
Treasury was authorized TO issue subsidi-
ary coin in redemption of fractional
currency till the amount of sach frac-
tional currency outstanding should be re-
deemed By the act vf April II, 1875,
he was authorized to issue such silver
in redemption of an equal amount OF
fractional currency, whether the same
WAS then in the treasury waiting redemp.
ton, or when it might thereafter be pre-
sented for redemption.
The third secIon of the joint resOlu-
tion OF July ~, 1876, is as follows:
SEC. 3. That in addition TO the amount
of'subsidsry coin authorized by law to
be issued in redemption of fractional cur
rency, it shall be lawful to manufacture
at the several mints and issue through
the treasury and Its several offices such
coin to the amount that, including the
amount of subsidiary silver coin and OF
fractional currency outstanding, shall in
the aggregate not exceed at any time S5O,-
100000.
1t was in my opinion intended by this
section that the money to be used as
change should amount to $50, ,0OO, 900, and
when the term "outstanding" was used in
reference to coin and fractional currency,
therefore issued, it was contemplated
that the Secretary should ascertain how
much of that which had before been is
sued was still outstanding. The fact was
publicly known that all paper currency
was to considerable extent destroyed
by the United States, this fact having
been shown repeatedly IN cases of those
banks which have been at various times
compelled to redeem bills issued by them.
In regard to an issue of fractional cur
rency it was also quite clear that from
the number Of pieces in use such losses
would be proportionally greater than an
issue of bills of larger amounts while 1t
is, perhaps, Rot safe mode OF contruing
an act to refer TO debates of the
legislature which preceded it, 1t is
important in this connection to observe
that this tact in regard to the destruction
of paper money by the United States
was well-known and understood and
was the subject in Congress in
connection with the bill for which the
resolution in question was afterwards
substituted. 1t was proposed in the
House OF Representatives that in sddi
ton to the amount Of subsidiary coin au-
tn ,rized by law to be issued in redemp'
tlon of fractional currency, it should be
lawful TO manufacture NJ the several
mlnts and issue through the treasury in
its several Offices further amount of
twenty millions. and tbs bill was passed
by the House. In the discus
sion upon it, 1t was contended on
one side that this would not
more than replace the amount OF frsc'
tional currency which had been worn
out or destroyed and which would never
be presented for redemption Upon an
other side while it WAS admitted, con-
siderable portion ol such fractional cur
rency had been destroyed. 1t was con-
tended that the amount Was mncb less
than S2O,O0O,0O0. The Importance of this
in reference to the question under con-
slderstion is only that the fact
that large amount of paper
currency is necessarily lost by Use
va, one which was fully considered by
Congress in debate. The bill passed by
the Honse was not accepted by the
Senate, but in place of it resolution
under consideration was passed, when,
therefore the fact was clearly
known and understood that a coz
siderable amount of fractional currency
had been destroyed, and Congress uses
the phrase Outstanding" instead OF the
phrase "which had been issued and not
redeemed or some similar phrase which
would indicate All intent on its part that
the amount of $50, 600 should be de
termined by the amount Issued and not
by that actually in existence. 1t must
be held that by the term Outstanding
vas intended currency which continued
a portion OF the circulating medium,
and ior which the treasury might there
after become liable / am, therefore,
of the opinion that the amount Of frac'
tional currency outstanding is 70 be de-
termined not merely by the re lords oil
the department which show how much
has been issued, but also by ascertsining
how much of that issue has been lost or
DESTROYED so that It never can be pre-
senled for redemption. This, OF course,
presents question OF fa@ for your
con sideration if it should be shown
rs large an amount rs
million dollars in fractional
currency had been destroyed by hre, on
beng satisfied of the fact, it would be
competent .or the Secretary Of the Treas =
ury &c issue corresponding amount OF
subsidiary silver coin. To determine how
much currency issued bss been destroyed
by use Is difficult question, but, sssus-
ges,ed, one OF fact only. Upon being
satisfied as TO the amount OF fraction
al currency which has been thus
lost or destroyed, the Secretary is
authorized to issue an equal
amount OF subsidiary silver coin TO re-
place it, provided that the whole amount
of subsidiary silver coin aud of fractional
currency IN existence will not exceed $50.
600. which il was contemplated by Con-
eress should be in circulation for the
purpose Of change.
Very respectfully your obedient SER
want CHAs DEyESs,
AttCruey General.
Marine.
LONDON, June lI.-Arrived-Steam-
-. Will IA ps,is from New York and