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Show By W. TJ. Telegraph. BUI'TWCLl'S letter. Washington, 17. Tho secretary of the treasury to-day forwarded to the ho wo of representatives the following letter io reply to tho resolutions of December .Ird asking the secretary to inform tho house under what law authority was given to tho secretary to make an increased issue of legal tender notes, as dono in October last i&o: "I have to say that the amount of U. S. notes in circulation was in creased October last upon order of assistant secretary Richardson, then acting secretary in tho absenco of tbe secretary of the treasury, in a sum of about fivo millions outstanding when tho act of February 4th, lt3S became a law. Tho object of the issue was the relief of the business of tho country .then suffering from largo delays for currency employed in moving crops from the south and west. The condition condi-tion of affairs then existing in the country seems to me to have warranted issue upon grounds of public policy. Tho authority for the issue is found in tho act 8 of February 25, IS 62, chapter chap-ter 33 ; July 11, 1S62. chapter 142, and March 3, $t3. chapter 73. At tho December term, in 1S0S, of tho su preme court of the United States, the chief justice, in giv.ing the opinion of the court in the case of Bank vs Supervisors Su-pervisors 7th vol. Wallage, 26 p said the act of February 25, 1862, provided pro-vided for the issue of these notes to tho amount af a hundred and fifty millions-. The act of July 11, 1S62, added add-ed another hundred and fifty millions to the circulation, reserving, however, fiftymillions lor redemption of a temporary tem-porary loan to be issued, and used only when necessary for that purpose. Under Un-der the act of March 3, li63, another issue of a hundred and fifty millions was authorized, making four hundred and fifty millions, and contemplating its permauent circulation until the resumption re-sumption of payment in coin of four hundred millions. At the Deo. term, 1869, of the supreme court, the same view was again expressed by the chief justice, in the oase of the Veseil Bank vs. Fenno S volumo Wallace, 637 p. This opinion is in accordance with the opinion of the treasury department and with the practico of the department depart-ment as well. Since tho act of the 4th of February,lS6S as provisions thoreto. the cancellation and destruction of notes that have been issued by the treasury department has no legal effect upon the power of the department to re-issue notes io thoir stead, as is apparent ap-parent from the language employed in the aot of 1S63 already referred to. In that act it is provided that in lieu of any of the said notes or of aoy other U. b. notes being returned to tho treasury, and cancelled or destroyed, there may be issued an equal amount of U. 8. notes, such as authorized by this act. Previous to the 4th of March, 1SP9, large sums of U. S. notes were held in the office of the treasurer at Washington, Washing-ton, as a surplus fund in excess of 356,-000,000 356,-000,000 reported in ciroulatioo, for the purpose of meeting any sudden demand upon the treasury, and that practice had ever since been continued. Notes aro not printed for any special issue. On the 1st of March, 1S69, there were outstanding more than 57,000,000 of three per cent, certificates, payable in legal tender notes on demand and the surplus in reserve was the only means at the command of the government govern-ment for meeting ay call on account of this liability. From this surplus the issue of all October last was made and all new notes put in circulation are drawn from tbe same source. Very respectfully, (Signed) Geo. S. Bout well, -Seoretary. |
