THE SURPLUS REVENUE. 147 



ment of a tax, except under a specific act of Congress authorizing 

 the collection of a new loan — i. e., without an act being now 

 passed authorizing a new loan of money, for which purpose a 

 specific act is required on the part of Congress under the exist- 

 ing statutes — could Congress itself compel the Executive to reis- 

 sue these notes even as the laws now stand ? Could Congress 

 meet the case by a mere mandatory act, instructing the treas- 

 urer to reissue the notes, without passing an act for borrowing 

 money or for negotiating a new loan on the terms named in 

 these notes ? 



If not, then, so far as the excess of revenue received by the 

 treasury of the United States over and above its necessary ex- 

 penditures under the appropriations made by Congress consists 

 of legal-tender notes, such notes cease to be money when they 

 come back into the treasury. They no longer constitute a sur- 

 plus ; they are simply evidences of a demand debt which has 

 been paid. 



What objection is there to this course being taken ? Simply 

 this : Under a fiction of law, sustained by a decision of the Su- 

 preme Court, these evidences of debt have become a part of the 

 circulating medium — i. e., a part of that which is used as money 

 in that portion of the transactions of the people in which actual 

 money is required ; also, under the provisions of the bank act, 

 these notes may constitute a part of the bank reserves held by 

 them to meet their obligations when demand is made upon them 

 for payment in money. Why should banks not be required to 

 hold coin only for that purpose ? 



Upon what ground can a rich and prosperous nation hold to 

 the belief that it can not afford to pay its debt due on demand 

 lest it should be unable to supply itself with real money in place 

 of this mock-money which has been forced into circulation un- 

 der the stress of war and under an alleged necessity which has 

 ceased ? The instruments of exchange or currency which serve 

 the purpose of money in the United States now consist of seven 

 different kinds, viz., gold coin of full legal tender ; Government 

 certificates of gold coin ; silver dollars of full legal tender ; Gov- 

 ernment certificates payable in silver dollars ; legal-tender notes 

 redeemable on demand and receivable for taxes ; national-bank 

 notes convertible on demand into lawful money on presentation 

 at the banks ; subsidiary coin of limited legal tender. 



The proportion of the transactions of the country in which 

 actual money of either of these seven kinds is necessarily used, 

 constitutes but a very small fraction of the transactions of all 

 kinds. A vast proportion, far exceeding ninety per cent of all 

 the transfers, bargains, sales of goods, stock, and real estate, are 

 liquidated and settled by the use of checks, bills of exchange 



