New-York tribune., 1881-03-28
Mn EYTRA SESSION.


extra session of Congress. 1t has been shown
that he has given the subject most careful
and thorough examination, and that the
weight of reasons offered, at one time or an
other, has been such as to change not only
his opinion but that of several members OF
his Cabinet The delay has Occasioned some
inpatient criticism But public opinion ap-
proves the decision with unusual unanimity,
and il is creditable to the Administration, and
an omen of wise and successful conduct here
after. that no pressure of political, personal
mr. local interests, however powerful, has been
able To cause hasty and ill-considered action
in direction possibly adverse to the public
prosperity. The strong argument for an extra
session was that the country should not un-
necessarily be compelled to pay six per cent
on about S19O, 600, 900 and five per cent on
about 1856 900, 900 of bonds, for six or seVen
months after they become redeemabe. But
investigation has brought to light powers
under which a considerable part of these
bonds can be paid, and objections to an extra
session which were not at first fully per-
ceived.
The powers under which the Administration
can nav off part of the maturing debt were
III. They are (1) use of funds in the Treas
lury: (2) sale of $3.50 OOO, 900 temporary-lOan
certificates under the Act of 1864; and (3)
sale Of per cent bonds authorized by the Act
of 1870. In fact. the question is much less
one of power than of expediency, for the
| Treasury has power enough to pay off a much
larger part of the bonds than any statesman
or fnancier of either party would take the
| responsibility of paying.
The use of all "surplus money" in the
| Treasury is expressly authorized by pr0vi-
| sion placed, upon motion of Senator Bayard,
| in the Sundry Civil Appropriation bill recently
| passed, This act provides that "the Secretary
/" of the Treasury may, at any time. apply the
:. surplus money in the Treasury not otherwise
appropriated, or so much thereof as he
| "may consider proper, to the purchase
" or redemption of United States bonds"
| This is a very broad grant of power, for the
nhrase surplus money in the Treasury not
| otherwise appropriated" is not legally de-
6ned. and might be held to include the entire
bulIion fund held for redemption of notes. 1t
will he remembered, too, that the power to
renlenish that fund, if the temporary use of
anv mart of it should be found necessary. by
the sale of any required amount of four per
cent bonds, is expressly given by the Resump-
tion act. Whether it is expedient to sell four
per cents under this or any other power. is a
separate question. The power undoubtedly
| exists, and its existence renders it possible,
whether expedient or not, to apply all the
money row in the Treasury, not otherwise
appropriated, to the purchase or redemption
| of bonds. But, unless it is deemed expedient
| to replenish the coin reserve by sales of four
per cents, that reserve ought not to be materi-
ally reduced.
IL has been suggested that the Treasury
| might hold in cash only 40 per cent of its
other demand liabilities just az it holds only
| about 40 Der cent Of the amount required to
nav its notes on demand. But the purpose
| for which any particular sum is held can be
detected only by those mysteries OF Treasury
bookkeeping which the public does not and
win not understand. If money is taken out
of the reserve. without visible arrangement to
| replace it, the public will Immediately deduct
other liabilities from the cash on hand, and
conclude that the remainder Is all that the
Treasury holds to protect its notes. Now the
silver balance in the Treasury is growing, and
| for some time to come probably will grow.
| It amounts TO $s4,000,000 already. 1t is per-
| fectiy well known that this sum is entirely
unavailable for the redemption of notes or
bonds, If the Government means to maintain
q decent credit. Hence the amount of avail
able reserve is not now so large, nor likely to
be no large, that IL can be loosely depleted
with safety. Examination will doubtless lead
the President and Secretary TO act with great
caution I'm that direction.
The power to receive temporary loan depos-
its. conferred by the Act of June 80, 1854.
was obviously given for very different pur-
pose from any now in hand. Yetthe temporary