New-York tribune., 1879-03-12


know what they were doing, they must be
credited with a deliberate intention to arrest,
or mt least to endanger, the resumption OF
specie payments They voted away III D"'S
for the payment of arrears OF pensions Ill
River and HarbOr and other appropriations
more money than can be taken from the
Treasury without depicting the reserve held
for the redemption of legal-tender notes.
Opinions may differ as to the amount oi
reserve required to render resumption
safe. There are many men Oh sighai
ability who believe that the issue OF such
notes win be entirely safe only when there
shall be held, for every legal-tender doilar
outstanding, at least dollar in gold kept I'D
the Treasury exclusively for its redemption. III
other words, they believe that the green
hack sbould be made exactly what the note
was certificate of the deposit OF gold In
the Treasury of the United states reueenl-
able on demand. From this point DOWNWARD,
estimates of the proportion OF. com required
TO be held as a reserve against hoIcs ou'
standing vary from 100 cents on the dollar
to 40 cents; but hardly any one sincerely
in favor of permanent redemption believes
that II can be secured and maintained with
oortointv unless n reserve of 40 per cent
be held The effect and the obvious in
tention of legislation by the last congress
WAS TO reduce the reserve considerably Deio"
that point, prorided the Secretary oI the
Treasury disregards the obligations imposed
by the Resumption Act itself.
Though Congress has disregarded those oD-
ucotions. il is now plain that the Secretary
NnuUrpss has re-
fused to empower him to borrow money IN
order TO meet the appropriations orueIeu'
But Congress- with that CURIOUS sIuplui'y
which characterizes so much OF democratic
legislation. has done this, leaving him ample
mower to borrow for the purpose OF resump-
lion. II follows that if the Secretary pro-
yjdes money to meet the appropriations ana
IA tbus compelled to take the money from the
reserve held for resumption, he is empow-
cred, and regards 1t as his duty, to restore
that reserve by sales of bonds for resump-
tion purpOses. The effect Is, therefore, pre-
cisclv the same, if he deems this course desl-
rable. as if Congress had directly authorized
an increase of the public Indebtedness in
order to pay arrears of pensions, improve
struggling creeks, and clear out choked-up
naIDOrs. EAdCIlJ tIIC thihS "iiN" 'i'N'''
bers OF Congress did not dare to do
and did not mean to do, 1t appears
that they have done, unless the President ex-
ercises discretion which rests with HIM III
regard to the expenditures authorized by leg
islatlOn.
The Presidents power, however, to with
hold money appropriated and to restrict ex-
penditures within the limits authorized by aD-
preparation bills is not disputed. President
Grant exercised that power and upon the
same subject Under his orders large part
of the appropriation for River and Harbor
improvements was not expended. and was
ultimately retained IN the Treasury The
same course can be pursued by the President
IN respect to the bill recently passed, and
other appropriations not few. To what ex-
tent this curtallmcnt of expenses may suffice
to meet the extra appropriation for payment
of arrears Of pensions can hardly be deter
mined in advance. 1t Is possible that the
Administration may deem 1t wise to employ
botl, iueLhods of meeting tho deficiency ere
ated by Democratic unwisdOm, and may restrict
expenditures as far as possible, covering a
norton of the deficiency in that manner, and
meeting the rest by further sales OF bonds.
The most important practical feature of the
Secretarys statement is that he deems it his
duty to maintain the reserve provided for the
redemption of legal-tenders. Holding to tins
position, he has abundant power, through sale
of bonds, to sustain the credit of the Govern
mcnt against other assaults even more serious
than those made by Congress at the last ses-
sion. We trust that he will not only hold
firmly to this course but will hereafter ex-
ercise to the FULL and at the earliest appro-
pirate time, all the influence which he pos
sesses to prevent such legislation as may
threaten an increase of the public indebted
ness.
NOPE "GOD FORBLDn BUSTNESS.