Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-03-31
THURSDAY, MARCH 81, 1881.
The President has decided not t


call an extra session of Congress,
and public opinion generally ap.
proves of the decision. Yet here
and there paper can be found
which still cries that the country
should not be compelled to pay 6
per cent. interest on about $780,
100000 and 5 per cent. on about
S465, 100000 for six months or
more after they become redeemable,
and hence an extra session should
have been called. But a thorough
investigation has brought to light
that the Secretary of the Treasury
is not without power and means to
take up least considerable part
of these bonds in fact, all of the
6 per cent. bonds, which would
leave the 5 per cent. bonds to be
provided for, and it is questionable
whether anything should be done
with these until the regular session
Of Congress next winter makes the
proper provisions. The New York
Tribune, in reviewing this question,
gives the following interesting in
formation:
The powers under which the Ads
ministration can pay off part of
the maturing debt were editorially
pointed out in the Tribune March
IL. The are CD use of funds in the
treasury; (2) sale of $l50,O00,00C
temporary-loan certificates under the
act Of 1864, and g. sale of 4 pei
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 of fnan-
cier of either party would take the
responsibility of paying.
The use of all surplus money" in
the treasury is expressly authorized
by a provision 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 con-
slider proper, to the purchase or re
demption of United States bonds
This is very broad grant of power
for the phrase surplus money in the
treasury not otherwise appropriated
IS not legally defined, and might be
held to include the entire bullion
fund held for redemption of notes
1t will be remembered, too, that The
power to replenish that fund, if thu
temporary use of any part of i
should be found necessary, by the
sale of any required amount of PEI
cent. bonds, is expressly given BY
the resumption act. Whether it il
expedient to sell 4 per GEMS, under
this or any other power, is a sepa'
rate question. The power undoubt-
eddy exists, and its existence renders
it possible, whether expedient or not
to apply all the money now in the
treasury, not otherwise appropriated
to the purchase or redemption Of
bonds. But, unless it is deemed ex-
pedient to replenish the coin reserve
by sales of 4 per cents, that reserve
ought not to be materially reduced.
1t has been suggested that the
treasury might hold in cash only 4O
per cent. of its other demand liabili.
ties, just as it holds only 40 per cent
of the amount required to meet its
notes on demand. But the purpose
for which any particular sum is held
can be detected only by those mys-
teries of treasury bookkeeping
which the public does not and will
not understand. If money is taken
out of the reserve, without visible
arrangement to replace it, the public
will Immediately deduct other liabili
ties from the cash on hand, and con-
clude that the remainder is all that
the treasury holds to protect it's