The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1878-12-05
Tts power !, oen any Of the bonds described il

! assumption. Though it may not be often used, it
| IS essential to enable this department to meet
emergencies. By it's exercise it is anticipated that
the treasury at any time readily obtain coin to
reinforce the reserve already accumulated. United
States notes must, however, be the chief means
der existing law with which the department. must
restore coin and bullion when withdrawn in
process of redemption. The notes, when redeemed,
must necessarily accumulate in the treasury until
their superior use and convenience for circulation
enables the department to exchange them at par for
coin or bullion.
The act Of May 81, 1878, already referred to- pro-
vides that when United States notes are redeemed
or received in the treasury under any law, from
any source whatever and shall belong to the
United States they shall not be retired Cancelled,
or destroyed, but shall be reissued and paid out
again and kept in circulation
The power to reissue United States notes
conferred by section $3.50, Revised Statutes, and
was not limited by the Resumption act. AS this,
however, was questioned, Congress wisely removed
the doubt.
Notes redeemed are like other notesreceived into
the treasury Payments of them can be made only
in consequence of appropriations made by law, or
for the purpose of bullion for the refunding of
the public debt.
The current receipts from revenue sufficient to
meet the current expenditures as well as the accru-
ing intereston the public debt. Authority is con.
ferred by the Refunding act to redeem per cent.
bonds as they become redeemable, by the proceeds
of the sale of bonds bearing lower rate of inter-
est The United States notes redeemed under the
Resumption act are, therefore, the principal means
provided for the purchase of bullion or coin with
which to maintain resumption, but should only be
paid out when they can be used to replace equal
amount of coin withdrawn from the resumption
fund They may, it is true, be used for current
purposes like other money, but when SO used their
place is filled by money received from taxes or
other sources of revenue. III 4
In daily business, no distinction need he made
between moneys from whatever source received,
but they may properly be applied to any Of the
purposes authorized by law. No doubt coin iiabil-
irtnp or roi1, nf Thn liz
debt. will be ordinarily paid and willingly received
in United States notes, but, when demanded, such
payments will be made in coin: and United States
notes and coin will be used in the purchase of bull
lion. This method has already been adopted in
Colorado ard North Carolina and arrangements
are being perfected to purchase bullion in this way
in all the mining regions of the United States.
BY the act approved June 8, 1875 the Secretary of
the Treasury is authorized to constitute any super
intendent of mint or assayer of any assay office
an Assistant Treasurer of the United States to re-
ceive gold coin bullion deposit. by the
Legislative Appropriation bill, approved July 10,
1875 the Secretary of the Treasury is authorized to
issue coin certificates in payment to depositors OF
bullion athe several minis and assay offices OF the
United States These provisions intended to secure
to the producers of bullion more speedy payment,
will necessarily bring into the minis and treasury
the great body of the precious metals mined in the
United States and will tend greatly to the easy and
steady supply of bullion for coinage. Unitedtates
notes when at par with coin. will be readily re-
ceived for bullion instead of coin certificates, and
ducers. al
Deposits Of coin in the treasury will. no doubt,
continue to be made after the list of January, as
heretofore. Both gold and silver coin, from its
weight and bulk will naturally seek such safe
deposit VII lie notes redeemabe in coin, from their
superior convenience, will be circulated instead
After resumption. the distinction between coin and
United States notes should be, as far as prac-
ticable. abandoned in the current affairs OF the
Government; and, therefore, no coin certificates
should be issued except where expressly required
by the provisions of law, as in the case
of silver certificates. The gold certificates
hitherto issued by virtue of the discretion con-
ferred upon the Secretary will not be issued after
the LIST of January next. The necessity for them
during suspension OF specie payments IS OBVIOUS,
but no longer. exists when by law every United
States note is in effect coin certificate. The only
purpose that could be subserved by their issue here
after would be to enable persons to convert their
notes into coin certificates, and thus contract the
currency and hoard gold in the vaults of the treas
ury without the inconvenience risk of its GUS
tody For convenience United States notes Of the
/ same denomination as the larger coin certificates
| will be issued.
| Bv existing law customs duties and the interest
of the public debt payable in coin, and por-
| ton of the duties specifically pledged as q
special fund for the payment OF the interest thus
| making one provision dependent upon the other.
As we cannot with due regard to the public honor,
repeal the obligation to pay coin we ought not to
impair or repeal the means provided to procure
coin. When. happily, our notes are equal to coin,
they will be accepted as coin, both by the public
creditor and by the Government; but this accept
ance should be left to the option Of the respective
parties and the legal right on both sides to demand
coin should be preserved lnvlolate.
| The Secretary is of the opinion that change Of
the law is not necessary to authorize this depart
ment to receive United States notes for customs
duties on and after the 1st day of January, 1879,
while they are redeemable and are redeemed on de-
| mand in COIN After resumption it would seem a
useless inconvenience TO require payme1t of such
! duties in coin rather than i'll United States
| notes. The Resumption act, by clear implication,
so far modifes previous laws as to permit pay
ments in United States notes as well as i'll coin.
! The provision for coin payment was made inz the
midst Of wal when the notes were deprecated and
the public necessities required an assured revenue
| in coin to support the public credit This alone
/ justified the refusal by the Government to take
| its own notes for the taxes levied by it. It
| has now definitely assumed to pay these notes in
coin, and this necessarily implies the receipt Of
these notes as coin. 10 refuse them is only TO in
vite their presentation for coin. ANY other con-
struction would require tho notes to be presented
to the Assistant Treasurer in New York for coin,
and if used i'll the purchase of bonds to be returned
to the officer, or If used for the payment Of
customs duties, to be carried to the Collector Of
| Customs, wo mast daily deposit in the treasury
all money received by linn. It is not to be assumed
that The law requires this indirect and inconyenient
process after the notes are redeemable i'll coin on
| demand Of the holder, They then at parity
with coin, and both should be received indiscrim-
! inately
If United States notes are received for duties at
the pert Of New York. they should be received for
tie same purpose i'll az otter ports of tile United
States, or an unconstitutional preference would be
given to that port over other ports. If tits priv
iIce is denied to the citizens OF other ports they
coad make such use of these notes only by trans
| pooling them to New York and TRANSPORTING the
coin to their homes for payment: and al This. not
| not only without benefit to tho Government. but
With d loss ia returning the coin again to New York
Where it is required tor rtdHmption purposes.
The provision in the law for redemption in New
York was believed to be practical redemption in all
parts of the United States. Actual redemption was
confined to single place from the necessity of
maintaining only one coin reserve and where the
| coin could be easily accumulated and kept.
With this view of the Resumption act, the Score
| tary will feel it to be his duty, unless Congress
otherwise provides to direct that after the LIST day
of January next, and while United States notes are
redeemed at the treasury they be received the same
as coin by the officers of this department in all
payments in all parts of the United States.
If any further provision of law is deemed neces-
sary by Congress to authorize the receipt of United
States notes for customs dues for bonds the
Secretary respectfully submits that this authority
should continue only while the notes are redeemed
in coin. However desirable continuous resumption
may be- and however confident we may feel in its
maintenance, yet the experience of many nations