The only provision of law from which such a power could be derived is
found in an appropriation bill passed a number of years ago, and it is
subject to the suspicion that it was intended as temporary and limited
in its application, instead of conferring a continuing discretion and
authority. No condition ought to exist which would justify the grant
of power to a single official, upon his judgment of its necessity, to
withhold from or release to the business of the people, in an unusual
manner, money held in the Treasury, and thus affect at his will the
financial situation of the country; and if it is deemed wise to lodge
in the Secretary of the Treasury the authority in the present juncture
to purchase bonds, it should be plainly vested, and provided, as far
as possible, with such checks and limitations as will define this
official's right and discretion and at the same time relieve him from
undue responsibility.
In considering the question of purchasing bonds as a means of restoring
to circulation the surplus money accumulating in the Treasury, it
should be borne in mind that premiums must of course be paid upon
such purchase, that there may be a large part of these bonds held
as investments which can not be purchased at any price, and that
combinations among holders who are willing to sell may unreasonably
enhance the cost of such bonds to the Government.
It has been suggested that the present bonded debt might be refunded
at a less rate of interest and the difference between the old and new
security paid in cash, thus finding use for the surplus in the Treasury.
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