7.1-1-E PRESS,
.41011.11 DAILY' (SUDAYS EXCEPTS%)
ov JOHN AV. N FORNEY,
sOrrit FOURTH STREET
.•
1 . 1 114 I),‘ air.T PRESS,
... :1 s 5 .„ 4 pre Wind:, payable to tho Carrior.
1 " 14 silictribisrs out of tho City at SKUTT DOLLARS
Fore POLLAR4 ron Sys lifozmrs, TWO
ry
r a liturr )loNvii=i—invariably in advance for the
;$' ,iIFI TM-WEEKLY' PRESS,
to Sul,scribers out of the City at Fool Dor,-
in advance.
,t, treary, Echo—sad and worn:
I u ...loom for my clothes are torn.
tiuul trho. (ht lon blet
in 3 u
lint
shell I Inv ert? •
Anti Hello answers, lrExe,
yy 0.4! Khut Echo, thnt is well;
Th , pin' I IT was, sure, a Raz:
1 .0 try for n hut thy wisdom grants,
Om else? for, to ! my bosom pr, uts.
And Kelm answers, PA:CI'.
(10011 Et'llll, how you chartn I
.1, 011 ow tinnily lit to 1111.111.
Ai'. 0. !TAY N tint 01S4t? lily 11001ing gloats,
whit,
111 aAn bliss my'hosom CORO,
d Ettlio answers, COATA.
(~,its! It he itt: you..neble friend t
„ Iv wont tno Mr to mond t
int e heste to Inty them nll,
Whore (1111 make the gratideln ha
HAul?
And Betio ansWers. LL.
0011! why, there n re three nr font':
wh o, volt v vlient wonld ImplOro
sllOll4, l'r mein tichol y s stroke
03- instiv my heart Rs hard as oak.
Anti };rho1111SWOr1 1 , OA%
dust Ellin, like nll nature, Is instinct with
'
ntst
• NV A:\ AMAlshil. BROWN,
1141
rttritr If SIXTH' and MARKET Streets.
i„A, infr a Clothing 011 SO of Philadelphia.
• o w , the best--everything is the cheapest. No
I.V4 l l'y por/ 1 011 retnrns. Even in out
illages,•when the suleect of clothing Is
nnnlq
volt individual present. has some onlogy
Pt 3 ,,tii RAU,. lt
S
ON'S-DOLLAR STORE..
I.og OUESTNUT STREET.
• ver-Plated I'sWolry, Photograph Albums,
ryr,lliut Bap, l'orkot Books, Port Monnaids, Cabse,
ri,,rfo to 100 per rent less thaofthe regular prices.
c.,,,ot o wing IF It partial list articles which we sell
MILItAIt EACH. The same goods are sold at
taw , front CI kS 0
•
CHO to ICE F OR ONE DOLLAR I'
us
L oi es s Sets, new and beautiful styles,
10. Pl,
hi, Ear Ulnas,
Sleeve Buttnlls,
10, Guard Chain.
1,.. Neck do ,
(told Thimbles,
to. Finger Rings,
to. Pencils
b. Pens with ease.
Ly Bracelets,
to, Medal I ions,
to, Charms,
to. Pearl Port blonnales,
ht. Morocco do.
W. \Vint do.
e,.. Purses,
Card Cases.
iyxeh Armlets,
Neck Chains,
Vest (loans, different styles,
00, Sleeve Buttons, do. do.
AN Studs, do. do.
N. Puts. do. do,
p.l. Scarf Pins, do. do.
ttearf Mugs. do, do,
Do. Finger Bino,' do. do.
Po. Pen and CaSO,
Do. Venril, revolving.
Do. Tooth riek, revolving,
M. \Vault Keys,
Do. eittlitt
Do, Chain Chums,
'Bo. rocket Books,
De. Bill lieoks,
Do. Port Alototslos. Ste.
SI IS AIM) WARE.
TOUR
n C
i& HOICE FOIL ONE DOLLAR t •
Snt , t spoon,
Do. Dessert Spoon&
Do. 'Ves do:
Do. Forks,
Pllr Butter Knives,
Do, Napkin King's,
3alfe and Fork,
Stintr Bowls,
Cream Cups,
•
syrno eons,
lh:ller Dishes.
Castors with Hanlon,
Salt Stands, Ste.
TIITC11 0 1(ili oF ANY OF TILE ABOVE ARTICLES
FIuNE DOLLAR.
PTICE—In order to meet the wants of our numerous
3.l.ss.ts. we shall keep it stuck of the finest Plated and
L 441.1 Jewelry, together with an assortment of Arany
-1:24 Silver Ware, end a variety of Photograph Al
kcJ PtinrY Goods, which we will sell at prices
nAsill defy competition. Ladies and Gentlemen aro
.xp,lta roll and eXIII/11110 0111 . stock. Every attention
* it,tidiers whether they wish to purchase or not.
Remember CLARK'S
ONE-DOLLAR STORE,
v 11441( 002 CHESTNUT Street.
RETAIL DRY GOODS.
(K: LANDELL,
'E...& L.
FOURTH AND ARM
POPLINS FROM AUCTION
PURPLE POPLINS,
GREEN POPLINS,
BLUES, BROWNS, BLACKS,
MODE MERINOES,
BLUES, PURPLES, BROWNS,
DI on m ornlr * Za.ITIQUI)
ME %BAWLS, CLOAKS, &c.,
4.4 LYONS VELVETS,
WOOLEN SHAWLS,
HOME SHAWLS,
GOOD BLANKETS,
VELVET CLOTHS,
WELSH FLANNELS,
ILOAK CLOTHS.
J.ol}'S It. CAMPBELL & CO.,
IMPORTERS AND CASH DEALERS IN
DRY GOODS;
AT IVHOLESALE AND RETAIL,
727 CHESTNUT STREET,
3,f received, and are now offering, magnificent
MKS. SHAWLS, AND DRESS GOODS.
BISCIALLY ADAPTED TO THIS SEASON
01-h2
FINE CLOTH CLOAKS.
FINE FROSTED BEAVER CLOAKS.
FINE BLACK TRWOT CLOAK'S.
MEDIUM-PRICED CLOAKS
'INE BLANKET SHAWLS.
EXTRA CHEAP BALMORALS.
TINE LARGE BLANKETS.
.R!PERFINE 'FROSTED BEAVERS
CASTOR BEAVERS-TRICOTS.
DOTS' THU, CLOTHING.
Ems MADE TO ORDER.
COOPETt & CONARD,
S. K COR. NINTH & MARKET Ste.
•
CS*l OF 42 PIECES VERY DESI
„. :4y tee YRRNCII 'SIFAIINOES. lust received Iper
Persia, to be owned this morning. The colors
Violets, Brown., Bine.,
Hit ntholtits, G1 , T11:4, Roder',
. Blacks, Purple., and Magentas.
"goods were 4.rdeted early in the month of Sep.
•-.ilt a stipulated price,
4 1 .s•will Le r.pened tlibk morning, a lot of fine HAIR..
POPLINS., saute rotors as the above.
ri:;• , re, lige itsp•ortment of tho REAVIF,R CORD
-INS, all colors. EDWIN HALL k BRO.
26 Smith SECOND &melt.
D.--A bargain in BALMORAI, SKIRTS-IG3 Just
to hr flPellf`d this morning; price, s3.2s—same
- 4 .beentselli nt 44, full size. de2
CLOAKING CLOTHS.
srisrmtli QUALITY.
Alianny'r, Frosted]Llenvorm.
Modioni-priced Pro•ded Beavers.
Thick rind lino h'rou4h Belli( Pkg.
•
Tricot. C.,,,t0r, and Union Eonoors.
Mohair owl Smi, , lctit Cloaking&
v iz.
11 114 npat fancle
-61,. —Extra hen vy—Ullioll-31eltons, Bto.
t;-1 Coatings and Overt:Wings.
:tvvelties iu fitury VoAtings.
MOHAIiS.
Or. hnthirra IiAL SI-cent Detainee.
Ant NH ints flue Black Alpacas.
rine feri IMP/. lld Popling.
thck Popli Kr... 4, I, $1.2.3.
'Floe Blanket). nil Flannels.
, BO Vs' cr..aril
txr+nrleared Cutiorg, good Cloths, and
(io,d, work—liniments made to order.
114" Mt COOPER Jr CONARD,
S. T.. Nviier NINTH and MARKET Streets
D RY 00 0163 FOR WINTER.
1%
10126
Foulard Silks,
Illankrt Sha
Baltrornl Skirts,
Blbek
Linty SII ks,
Black Be ailbazines,
Chriip Delninek
Prigich Chintteti,
Shirting Flannels,
Brach° Shawls,
Flue Blankets,
Crib Blanknts,
1511. ti SITARPLESS BROTHERS,
CI I ESTN UT and EIGHTH Street.%
XEW ;11AIN'L, AND CLOAK STORE,
IT, I. No. 715 North TENTH Street.
t,,., “treittst opened, next door to our Dry-goods
R
, SHAWL AND CLOAK STORE,
d 'it• bete will always be found a omploto aaio
n.lll4
In. stood Sonars Blanket. Shawls.
toste 33w18
Braehe ShaWIA.
L'hhe aotrest and latest stYlka *f
VAI, ANII WIN'CRIL COVERIN,
) 1 .; ' 4l "r-insul t M..lt.in, Black French Habit,.
~Flt emit l'rleat, Block French Beaver.
ha rind Ribbed Frosted Beaver Cloths.
B l ,Coverlne o made ortler at short notloe..
4,11)1IAL SKIM'S! BALMORAL SIORm I
.3) lurge.sl7.o at 95.00, worth 40.
MIJ " 41 • • 0 4160, • 71
rif -
11 im
• 4.0 44.00, 1•
.50,
e"''nn. the rhea t Dal raisin the city.
3'!)NABLE DltdiS s uoOrg, OF EVERY VARIETY.
- H. STEEL .St SON,
Nos, 713 ntal 715 N. TENTH et., ab. Coates,
" OF
n
ey, DRY GOODS—JUST RE
.
11,:-.. ninitno, Pluto and PirrorPd.
si 4 ,r a Wool Porllng. Double Width.
a::::!,004 bl,oollf all Shlllies.
00,, Mon and Ftgnred.
y i and Wool ll*Latriev--o, alto itne.
4 ylirrd Mortinieo.
? 1 , 1 li no of Plain Shawls.
, 1.1 lino Ink 141114.
0_
s lot of nun rod Ilobatra, at 28a.
yo, of Drown Allmon's, cholco.
, lino of rairstiiieroo.
, 4 1 ! lull line of Vesting.
hlknoimaty AND FANCY GOODS.
Ni d atTlN & QUATLE . §'
STATIONKRY, TOT, AND FANCY GOODS
No. I.O3:IAIgiIAinf'STRENT,
ite.Low mevENTII, ulna&
VOL. 6.-NO.lOB.
( El Vrtss.
SATURDAY, DECEMBER G, 1862
THE NATION'S FINANCES.
REPORT OF THE SECRETARY OF
Sin : In obedience to the act which requires the
Secretary of the Treasury to prepare and lay before
Congress, at the commencement of every session, a
report on the subject, of finance, embracing estimates
of receipts and disbursements anclplans of revenue.
he submits, respectfully, the following views and
statements : •
The breaking out of the existing rebellion, soon
after the incoming of the present Administration,
demanded the employment of all necessary means
for the preservntion of the territorial integrity of the
republic, and for the maintenance of the constitu
tional supremncy of the whole people, through their
National Government, over every State and every
citizen.
To authorize and prescribe the employment of
these means was the peculiar province of Congress
to call forth and direct the armed force, which might
be authorized, belonged to the President, and under
him, to the Departments of War and the ' Navy;
while to provide the means to meet authorized ex
penditures in its employment devolved, under the
legislation of Congress and the direction of the Pre
sident, on the Secretary of the Treasury.
Tailing exigencies have required adapted mea
sures and necessitated unanticipated expenditures.
Estimates, correct when made have been rendered
inaccurate by changed circumstances. Such condi
tions always attend war, whether external or civil,
and we could not hope to escape them.
It Is not, therefore, matter of surprise that the
estimates submitted in July, 1861, for the year end
ing on the 30th of June, 1862, were exceeded by the
actual expenditures, or that those submitted in De
cember, (hr the year which will end on the 30th of
June, 1863, will probably be, in like manner, ex
ceeded.
The estimates of the Secretary must, necessarily,
be derived chiefly from information furniShed by
other heads of departments; and this information,
adjusted to existing . and probable circumstances,
cannot possibly anticipate all the vicissitudes of war
or of legislation.
Thus, the estimates for the last fiscal year, sub
mitted at the July session of ISSI, were based on
estimates from the War Department for an army,
including regulars and volunteers, of three hundred
thousand men ; and from the Navy Department for
a naval force quite inconsiderable in comparison
with that afterwards found to be indispensable.
Congress, thinking the proposed military force inn 7
dequate, provided for a volunteer army of five hun
dred thousand men, besides regular troops and sk
cial corps, numbering, together over fifty thousand,
and also for considerable additions to various corps,
and a large increase of pay and rations. The esti
mates of July required, of course, correction in De
cember.
So, also, the estimates for the current fiscal year,
submitted at the.' Inst session, were framed in sub
stantial accordance with information furnished by
the several departments. The necessities of the
war, however, rendered it expedient, in the judg
ment of the Executive and of Congress , to call for
three hundred thousand additional s•olunteers, and
make a draft of three hundred thousand men in addi
tion to these. The estimates, ofivourse, must again
prove inadequate.
The increase of the army, however,
did not greatly
OD& disbursements between the date of the Decem
ber report and the close of the then current fiscal
year. The increase of debt, therefore, did not ex
ceed the December estimate. On the contrary, while
the estimate anticipated a public debt on the 30th of
June, 1862, of $517,372,802 93, its actual amount on
that day was $514,211,Th 92. This amount, of
course, does not include unascertained claims, but
only that debt the evidences of which exist in the
treasury, upon its books, or in the form of requisi
tions in favor of creditors or of disbursing officers.
It is not probable, however, that at the date named
these claims much, if at all, exceeded the balance in
the treasury, namely $13,043,516 81.
But while the public debt on the Ist of July, 1862,
did not reach the amount anticipated by the esti
mates, there is no room for the pleasing hope that
the results of the current fiscal year or the next will
exhibit a similar proportion. On the contrary, the
estimate of the public debt on the Ist of July, 1863,
heretofore submitted, must now be advanced, -in
view of the unexpected increase of expenditures,
authorized and incurred or likely to be incurred, to
$1,122,297,403 24 ; and on the supposition that the
war may be continued With undiminished disburse
ments until the Ist of July, 1861, the debtdikely to
haver been then incurred must be estimated at
$1,744,655,586 60.
It has been the care of the Secretary to reduce
the cost of the debt, in the form of interest, to the
lowest possible amount, and it is a source of real
satisfaction to hint that he has been able, thus far,
to confine it within very moderate limits. The
first loans, being of a magnitude hitherto undreamed
of in our market, were necessarily made at an
interest which he regarded as high, though lenders
strenuously insisted on higher ; but large amounts
are now obtained at five and four per cent.,while
the eircure+iee of . United States notes constitutes
practically a loan ffonruot people to their Govern
ment without interest. The nverago rate an
whole loan is thus reduced to four and three-fifths
per cent. Whether a similar result may attend
future loans must be determined partly by the legis,
and partly by the
_condition of the markets for
money.
The statements of the actual and estimated re
ceipts
and expenditures for the last and the current
fiscal year, in comparison with those of the Decem
ber report, must undergo modifications similar to
those of the piddle debt. Both receipts and expen
ditures for the current and the following year will
be increased : the former by the operations of the
augmented tariff and of the internal revenue, and
the latter by the exigencies of the war.
The egg; (-gate receipts for the fiscal year 1882, from
all sources, including the balance of $2,257,065.80 in
the treasury front the preceding year, were
$583,895,547.06; and the aggregate expenditures
$570,841,700.25 ; leaving a balance In the treasury on
the Ist day of :I uly, 1862, of $73,043,546.81. Front the
receipts and front the expenditures should be de
ducted the amounts both received and disbursed
within the year on account of permanent and-tempo
rnry debt, amounting to $96,096,922.09 leaving the
total of receipts not applied in payment of debt
$487,798 $
24.97, and the total of current disburse
ments $474.741,778.16. As the amount of debt, so
also the tunintnt of the expenditures for the hist year
falls short of the estimates.
The actual receipts ibr the first quarter of the fiscal
year 1863, commencing :July 1, 186:2, appear from the
books of the treasury; the receipts for the three re
maining quarters can only be estimated on the
basis of appropriations made and asked for by the
several departments. They have been and are esti
mated as follows :
For the Ist quarter the actual receipts
from customs, internal duties, di
. rect tax, lands,/ and all other
sources, excluding loans, and in
.• eluding the balance, from ast year,
of $13,043,646.81, were $37,209,0 29 02
For the 2d, 3tl, and 4th quarters the
estimated receipts from all sources
arc ' 143,286,816 59
Making the total of actual and esti
mated receipts, from ordinary
sources and from the direct tax,
during the year 1863 180;195,315 GO
To this sum must be
added. sums already _
realized from loans in
all forms, which
amounted, during the '
Ist quarter, to $114,458,821 02
And during the months
of October and No
vember, estimating
for some of the last •
days of November, to 85, 670,895 99
Making an amount already obtained
from loans to the Ist of December,
and applied in payment of ciment
expenditure and principal and tide
rest of public debt, of 200,129,717 01
And there must be added, also, the
amount which will probably be
hereafter realized from loans in all
forms, under existing laws, namely $13N121,197 35
Malting the .total of receipts, actual
and anticipated, under existing
laws • 611,616,t59 96
On the other hand—
For the Ist quarter of the fiscal year •
1863 the actual expenditures were. 111,084,417 30
For the 2d, 3d, and 4th quarters the
actual and estimated expenditures,
Under existing appropriations, in
cluding interest on public debt, are 672.843,811 78
And additional appropriations are
asked for by the several depart
ments, to meet estimated deficien
cies, to the amount of 109,418,032 30
Making the whole amount actually
expended tor estimated 893,346,321 48
To which must he added the estimate
for payment Of principal of public •
debt during the year, of 95,212,466 14
Making an aggregate, for all pur
poses, of 988,568,717 62
It is necessary to observe, how
ever, that in the present state of the
law the estlinates of the departments
always largely exceed expenditures.
The law forbids the transfer of any
part of an appropriation for one ob
ject or class of objects to another.
Consequently, when any appropria
tion happens to be exhausted, expen
ditures for the objects of it, however
important, must be arrested until a
further appropriation can be had.
Such an occurrence during the recess
of Congress nu telt t occasion great pub- '
lic inconvenience and Injury. Hence
It has become usual to make every
estimate large enough to cover ail
possible requirements under it till a
session of Congress shall afford an •
opportunity of providing for any de
ficiencies which may thereafter ou
cur.' Hence there is always a large
balance of unexpended appropria
tions at the end of every fiscal year,
which, after two years from the
making of them, arc carried to the
credit of what is called the surplus
fund.
it may be safely estimated, therefore,
that, of the appropriations made
and asked for, there will remain
unexpended on the :30th June, 1863,
and should, of course, be deducted
front the apparent aggregate of ex
penditures, not less than $200,000,000 OD
The deduction of this sum will leave
as the true aggregate of expendi
tures for the year 788,558,777'62
But of this sum, as al
ready stated, there . .
has been received and
may be expected from •
customs, internal du
ties, and other ordi
nary sources . $180,496,345 00
And from losns in all
toms 331,150,914 36
Making an aggregate of realized and
anticipated resources, to be de
ducted from time sum of Renal and
anticipated expenditures for all -
611
purposes, of ,616,969 96
And lensing - yet to be provided - for
the current year, by the action of
Congress 276,012,517 66
The estimates for the fiscal year 1864,' commencing
on the tat day of July - next, and ending on the 30th
day of acne, 1864, must, in the, present circum
stances of the country, be, in great part,. conjec
tural. The estimates of expenditures have been
fraMed by the several departments on thesuppo
aition,of the continuance of :the war—a supposition
which; though very properly assumed as the basis
of estiMates intended to cover.ail COUtingencieS, is
JOUR R. STORRS,
702 ARGII utreet
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•
THE TREASURY.
TREASUBY DEPATiTMET, December 4, 1862
not, it may be confidently hoped, destined to be
realized The estimates or receipts are based upon
the ope!tions of recently enacted laws, the working
of which cannot be accurately foreseen,
The estimates of expenditures are as follows :
For the civil list, including foreign
intercourse and miscellaneous ex
penses, other, than on account of
the public debt $25,081,510 03
For the Interior Department, In.
diens, and Pensions 10,316,677 01
For the War Pepe rtment 738,829,146 80
For the Navy Department 68,257,2.55 01
For interest on public debt 33,613,890 60
For }principal of public debt 19,381,801 16
To which sum should' be added the
expenditures for which appropria
tions made are estimated as re
maining undrawn on the Ist July,
1803 fi00,000,000 00
DI - liking the aggregate of expendi
tures to theist July, 1861, for which
appropriations are made or ft5ked..1,095,413,183 66
From which should be deducted the
probableamount of appropriations
which will remain undrawn on the
Ist of July, 1864 250,000,000 00
Making the true amount of probable
•
expenditures during the fiscal yes r,
1864 . 815,413,163 66
The estimates of receipts are as follows : .
From customs $70,000,000 _.
From internal dut1ea....160,000,000
From lands 25, 000
From miscellan's source. 3,000,000
Making the aggregate of receipts for
the fiscal year 1861 to be deducted
from the aggregate of expenditures • 223,0*-5,000 06
And leaving the amount of expendil
tures of the fiscal year 1861 to be
provided for s . 622,388,183 5(1
The wholeamount to be provided by
Congress, beyond resources avail-
able tinder existing laws, may,
therefore upon the supposition of
the continuance of the war, be
stated as follows :
For the fiscal year ISM i17G,912,511 GO
For the fiscal year 18&1 622,333,183 6G
Making an ameaate of 899,300301 22
A tabular statement's submitted with this report',
and as part of it, exhibiting clearly the details of the
receipts and expenditures of the financial years 1862,
1663, and 1664.
. Another table is also-submitted, in which may be
seen of what particulars the existing debt consists;
in What years it was contracted, and when and in
what amounts it will become due.
The other tables required bylaw also accompany
this report,
In order to the formation of sound opinions fis to .
the measures required for Meeting the demands dis
closed by the estimates and yet unprovided for ; it
may-be useful to review, briefly, in connection with
their actual and probable results, the measures
already recommended -- and adopted; or yet under
legislative consideration.
With a view to the necessary provision for the
expenditures then anticipated, the Secretary pro
posed to Congress, at its last session, such measures
as seemed to him best adopted to the attainment of
that object. These were (tat) an increase cf
duties on various imports; (2d) an increase of
the direct tax ; (ad) the levying of internal
duties; (4th) a limited emission of United States
notes, convertible into coin.. (sth) the negotia
tion of loans, facilitated by the organization':
of banking associations, whose circulation - should
consist only of notes uniform in character, furnished
by t he Government, and secured, as to convertibility,
into coin, by United States bonds deposited In the
Treasury.
At the time these recommendations were submit
ted, the banks had not suspended specie payments,
and there was reason to believe that economized ex
penditure and decisive military action would secure
the means required for the suppression of the rebel
lion withourserious sacrifices on the part of the Go
vernment, and without resort to any other currency
than that of coin and equivalent notes.
• Unexpected military delays, however, increased
expenditures, diminished confidence in public securi
ties, and made it impossible for the banks and capi
talists, who had taken the previous loans, to dispose
of the bonds held by them except at ruinous loss,
and impossible for the Government to negotiate new
loans of coin except at like or greater loss.
These conditions made a suspension of specie pay
ments inevitable. The banks of New York sus
pended on the 30th of December, 1861. Their ex
ample was followed by most of the banks throughout
the country and the Government yielded to the
same necessity in respect to the United States notes
then in circulation. .
These changed circumstances required a change of
measures. The expenditures had already reached an
average of nearly a million and a quarter of dollars
each secular clay ; while the revenue from.all sources
hardly exceeded one-tenth of that stun. It was ne• !
cessary, therefore, to raise by loans in some form
about, thirty millions a. month, or sixty millions
every sixty days. . . . . -
• Careful inquiries satisfied the -Secretary that the
first $60,000,000 could not be had, in coin, at better
rates than a dollar in bonds for eighty cents in mo
ney ; and that each succeeding loan would involve.
submission to increasingly disadvantageous terms.
To obtain the• first $60,000,000,000 would require,
therefore, an issue of bonds to the amount of $76,-
000,000, and, of course, an increase of the public debt
by the same sum; the next $60,000,000 would re
quire, perhaps $90,000,000 in bonds and debt; and
the next $60,000,000, if obtainable at all, would re- '
quire, perhaps, $120,000,000. It was easy to see that'
on this roattutter discredit and paralysis would soon
be reached. The adoption of a plan of finance in
volving such consequences was, ot compatible with
the. Secretary's ideas of public duty.
• There 'remained but one other possible Way of
raising money bu the negotiation of bond's in the
usual mode. That war • was, to receive in paymsis—
of loans - tneilOrelrlif creulitrefilm.i...,-...,v,
. —....---
„
To Ascertain what would have been the consequen
ces of a resort to this expedient, it is necessary to
remember that the bank . circulation of the loyal.
States amounted, on the Ist day of January, 1861, .
to $150,000,000; that it had been•reduced to $130,000,-
000 on the Ist day of Jauuary, 1862; and that this
circulation was did used throughout the country in all
the channels of business. In these circumstances
the collection by loans of sufficient amounts to meet
the deMands upon the treasuty in season for prompt •
payments would be extremely difficult. • The nego-'
tiation of such loans to the extent required by the
public exigencies, would create a demand for the
notes width would involve the necessity, at first, of .
sacrifices not greatly inferior to those attendant On •
coin loans. If subsequent • negotiations should be- I
come practicnble at seemingly better rates,' it would
lie because the Government demand had stimulated
the making and issuing of bank notes to an extent
far beyond the ordinary needs of business. The in
crease of circulation thus stimulated would be un
limited, except by the possibility of obtaining inter
est on loans of it ; or, in other words, by the possibi
lity of obtaining credit for it with the community
and the Government. This limit, certain to be final
ly 'reached by all banks improvidently managed,
would not, however, be reached immediately, or at
the same thee by all institutions, or by the same rate
of progress in all parts of the country. But an ex
cessive circulation would surely be thrust upon the
community, forming a currency every Where, but ir
regularly depreciated, destined in part, to be become
-4
1
worthless, and certain to tax find derange, beyond
measure, the business of the people, and to embar
rass,
I'
if not arrest, the operations of the Government.
Loans negotiated in this circulation would be simply
exchanges of the debts of the nation, bearing inter
est and certain to be paid, for the debts of a multi
tude of corporations, bearing no interest and certain,
in part, never to be paid. . . .
This Is but a partial representation of the conse
quences apprehended from the receipt of bank notes
for loans to the Government. Their character made
it impossible for the Secretary to recommend such
negotiations, and wholly improbable that Congress
would authorize them, if recommended.
No other mode of providing, with any tolerable de-
gree of promptitude, for the wants of the army and
navy, and the necessities of other branches of the
public service, seemed likely to elibct the object. with
so little public inconvenience and so considerable
public advantage as the issue of United States notes
adapted to circulation as money, and available, !
therefore, immediately in Government payments.
It was not necessary that the Secretary should re
commend
this plan to Congress: In his report at the
commencement of the session he hadpointed out the ,
inconveniences and dangers of a circulation of Gov- I.
eminent notes, even though convertible into specie, I
and had dwelt especially on the probability that
such a circulation would ultimately sink into an ir
redeemable paper currency. At that time he Cie- .
petted a continuance of speciepayments, and hoped .;
that a banking system would be authorized which
would at once furnish a sound circulating medium, ':
and aftbrd a firm support to the public credit. Nei
ther the expectation nor the hope, however, had
been realized ; and a choice was now to be made
between a currency furnished by numerous and un
connected banks in various States and a currency
furnished by the Government which the Govern- '.
ment could and would, except in a very improbable;
not to Say impossible, contingency, amply provide '
for and protect. With these alternatives before him,
the Secretary had already declared his unhesitating
preference for a circulation authorized and issued by
national authority. „
But the enlightened Senators and Repreientatives 1
who composed the financial committees of the re-
spective houses required no new statement of his
views on this subject. They saw clearly the 'neeett
sit ies created by the suspension, and at once,adopted
the measure demanded by them. The Secretary,.
! concurring entirely in their judgment, had no duty
to perform except that of giving such information
and such aid as they called for and he could supply:
An emission of $50,000,000 had been authorized by
Congress at the July session, 1861, not with the de
sign of furnishing a general currency, but for the
purpose of making good any differences between the
amounts obtained by loans and the sums required by
the public service. Of these notes $33,460,000 were
in circulation at the time of the suspension. U, p to
that date every note presented for payment had been
promptly redeemed in coin. After the suspension au
additional emission of $10,000,000 was authorized on
the 12th of last February. Both these issues,
amounting together to $60,000,000, were made re
ceivable for all public dues, including customs. •
It now became thicduty of Congress, not merely to
provide the means of meeting -the vast demands on
the Treasuey, but to create a currency with•which,
until the close,of the war, at least, loans 'and:taxes
might be paid to the Government, debts to individu
als discharged, and the business of the country trans.-
acted. Nothing less would satisfy the need of the
time. . .
This duty Congress partially performed by au
thorizing an emission of $90,000,000 in United
States notes, in addition to the $60,600,000 'Previ
ously authorized, making $150,1100,000 in all. The.
$906110,C00 last issued were made receivable for all
national loans and dues, except customs, paynientof
which was required in specie or notes of the two
tirstissues. .
At a later period of the session, in view of the
withdrawal 'of the sixty millions receivable for dit
ties from circulation, - and of the expediency of pro
viding a permanent resource for meeting all demands
upon temporary deposits in the Treasury, Congress
authorized :t further issue of $150,000,001, of which,
however, $50,000,000 were to be reserved from issue
until actually required for payment of deposits.
At a still later date congress, upon tile recom
mendation of the Secretary, authorized the 'use of
postage and revenue stamps as a fractional currency,.
preferring this expedient to metallic tokens or coins
'educed in value below existing standards.
These various acts, taken together, authorized fhe
emission of two hundred and fifty millions of dollars
in 'United States notes, and a further emission of
fifty millions, if needed, for the payment of deposits.
Of these emissions, the sixty millions receivable for
customs were not available as circulatian, but might
lie replaced, as paid in, by notes of the new issues
which were thus available, so that, in the end, a
total circulation of two hundred and .fifty millions
might be reached, and. in an improbable contingency,
increased by fifty minions more. An emission -of
fractional currency, as just stated, was •also 'autho
rized. - -
In aid of these provisions for public payMents, the
Secretary recommended, and Congress, by different
enactments, authorized, the receipt, on temporary
deposit, at an interest not exceeding five per cent.,
of such sums as might be offered, not exceeding, in
the whose, one hundred millions of deniers, and the
payment, to such creditors as might choose to re
ceive them, of certificates of indebtedness, payable
:n one year, and bearing six per cent. interest. Con
gress also authorized the issue of national bonds to
the amount of five hundred millions of dollars, into
which the United States notes issued might be con
verted at the will the holder. It was provided
'lint these bonds should carry an interest of six per
. cent. in specie, and he redeemable after rive and pay- .
1 ble in twenty years. They have received the name
of five-twenties or:five-twenty sixes.
These measures have worked well. Their results
PHILADELPHIA, SATURDAY, DECEMBER 6, 1862.
have more than fulfilled the anticipations of the-Se- notes is excessive. 'When extended, to the limits •.
cretary. fled other urgent demands on the alien- authorized by existing laws, it will be no larger than
tion of Congress permitted the consideration and the wants of the people and the Government impe.
adopticat of the suggestions which the • Secretary naively demand.
ventured' to submit. in favor of authorizing the If there be a considerable redundanCy then ;if
formation, under a proper general law, of banking thei ebe a considerable real depreciation of the cir
associations, issuing only uniform notes prepared culation—which is by no means admitted—what has
and furnished by the National Government, and of rinsed the redundancy and the depreciation?
imposing a reasonable tax on the circulation of other The cause of all that exists is easily found in the
iuslitutions,no financial necessity would, perhaps, tatements of the banking corporations. The circa
now demand additional legislation' for the current atter' of corporate notes increased during the year
year, except such As' experience might suggest for uding on the let of November, 1862, from $130,000,-
the . perfecting of measures already sanctioned. . cto .sl67,ooo,ooo._During the saintiine the voluble.
A short statement Will•exhibit the practical work- .f deposits, which answer . very many of the pia:-
ings of the laws actually enacted. •coses•of eirculation,•had swelled from $264,000,000
To the Ist day - of July," 1862, $57,926,116 57:had o $344,000,000. The greoter. portion of this increase
been received andwere remaining on deposit. United •ok,Waccwithin the last seven month% :
States notes to the amount of $158,691,230 hail been The augment - Mien of deposit's always accomoanies
Issued and Were in circulation 549,661,979 73 had crease of circulation .-- Together they stimulate
been Paid in certificates of indebtedness; and s2a3,- • ans e and are,,im turn, stimulated by the desire of•!
345,291 86 had been paid in nosh. Not a single re-he interest derii - ed from loans. As might have been
•quisition' from any depaitment upon the Treasury - .
ticipated, 'Johns . increased; though not equally;
remained, uniumwered.• Every audited and. settled ith the circulation. arid ., deposits. From $607,000,1.
claim on the Government, and every quartermas- on the Ist .day of November, 1861, they had
teas check for SOpplieefurnished, which had reached. own to $617 000 000 on the 'lst day of November'
the' Treasury, had . been met. And theie remained 62. •• • • . - •
an the Treasury a.balance of $13,043,546 81. - Jere is an obvious . and 'sufficient 'explanation of
The reverses of June, July, and August, ,affected,„: . I latevcrundue ,expansiommayhoye taken Waco.
of course, -injuriously this' financial condition. The •, ;Secretary has already expressed. the opinion
vast expenditures required by the large increase of • I it tliecirculation• iii;not greatly redundant,' and •
the army, authorized by Congress . rind directed by no considerable depreciation of currency hos
tile President, made exhausting . demands on all a , ually 'cleciamolf :He . ..thinks it sufficiently proved; ;
available resources. The measures - .of Congresii,- h ever, that whatever there may of either is fairly
however, enabled the Secretary to provide, if not . at ibutable not to the increase ,of, United States
fully yet almost fully, for the constantly-increasingbut to the increase of hank circulation and
disbursements. The actual payments, :other than - •
for principal of public debt, during the quarter - en& to be ohBerved that no law compelled and no
ing on the 30th of September, were $111,084,446 75-; '1) lie necessity required any-:enlargement of. the
during the month of October theywore $49,243,84e64.; , .me of currency by the.bauks. •Ou the, contrary;
and during the month of November, $59,847,077 al . ; .th are, in some. of the States'
. positive enact
while the Accumulation of requisitions beyond re- ts bywhicathe increase of eircihation during sus:-
sources omuunted to less than the' fourth of the ag.:.• • , :pe . ion is •prohibited ; and the :principle, embodied
gregate of these suing, Mimely,•to $46,35 , 1,7011en' is so obviouslyjust that well-managed insti;••
It remains to consider whatfurther tesourEeO for - ..tu .95, hen obliged to suspend, almost•invariably,
satisfying the debt now existing in the form of re- ''' oaf the constraint of any, law; re:dace their Mr,
quisitions, and meeting other present and prospebtive cal ion instead of augmenting it. In . obedience •to
demands upon the Treasury, may lie provided tinder. "thi ninciple, , areduction of bank circulatioa actu
existing legislation ; an& what additional measures alnit...place after the suspension in ,December.
may be beneficially adopted for the improvement of -It i p.only when United States notes, having, been
the revenue. and for the sure establishment of the .ma. a legal tender, were - diverted froth their legi
public credit, by the discharge, with the greatest pos; tin c use as -currency, and 'made -the basis of.
bible promptitude and punctuality, of all public; ben eirealatiOn, that the great: increase of the lat- •
ligations. ' a - ter egan. ; ,purely voluntary ;,,prompted,
The whole power to borrow money under :the act do tless, by'. the ,desire of extending,. accommod&
•of July!lB6l, to authorize a -national lean now do .to lonsineim,`as Well as: by the expectetion , of
exhausted. The only important laws ,under which t. No proctical limit upon this increase has: aS'
means for meeting demands on the treasury can be y een proposed by thepertlea interested in it. ,
had are those enacted Or modified by Congress at all' • 1 Secretary has• already.,. shown'. that . the case_
last session. • .
a'r otherwise with Die circulation 'United'
These are of two general - classes—namely, those - S"to s notes. A condition had been created•by the'
which provide revenue-from duties and taxes, and Slap sion which-•inade' loans of coin impossible.
tho
in various forms.." so which. authorize the obtaining of money,by -Loa • of corporate notes,- objectionable in. them
loans. . were positively prehibited.by A law tt n edto ot es l a ik tan e bte l l yi
The laws of the first elass are (Ist,) the seYeral
;.not! 'ireulntiov ,. untilstueifinsciloenoolntinlieloUunni
':the ccreterY to obtain it fres ,holder 3 by way ofA:Ditietealliiitit
866,113,183 6G
Refs imposing duties on imports, and (2r1,) the net to.
provide internal revenue.
T4e . ltvelt of the second, class
thorizfrig the issue .Of Vlliteaataice notes, and; of
six per cent. bonds of the United States; redeemable
after five and payable, in twenty yenta; to the
amount of five hundred Million of dollars ; (WO the
two acts authorizing the issue of certificates. of in
debtedness and the purchase of coin ; (3d,) the act.
authorizing an additional issue of 'United ".States
notes ; and (4th,) 'the - act authorizing payments in.
stamps. '
The laws of the first class have been too recently
enacted, and their practical operation and results •
arc affected by too large a variety of circumstances,
„
to warrant any very - confident oinions either as to
the particulars in which amendments may be re
quired or. the amount of revenue which may be ex-;
petted from them. The year which will elapse be
fore the next regular session Of Congress will a Ild3v
sufficient tune for practical tests, and will donbtlest
suggest beneficial modifications. It seems already
probable that some taxes imposed mayhe eitlierre
pealed or reduced 1u rate at that session, Without •
injury to the public service .or the public credit. -
Possibly, also, 'some comparatively unimportalit
changes may be indicated as useful before the close :-
of the present session. • . •
The actual and estiffiated receipts under these
laws for the current- fiscal year, as already stated,
will amount under the tariff act to $68,041,736.59,
and under the internal revenue law to $85,456,303.73.
The receipts for all other sources, exclusive Of loant,
as estimated, -will 'reach $13,953,758.47, making a
general aggregate, including $13,043,516.81, 'halance
from last year, of $160,495,345.60, fluty leaving to' be
provided from loans, in some form $608,063,432.02.- '
The laws of the second class limit the issue of
- United States notes, exclusive of the contingent
reserve for deposits, to $2.50,000,600, limit - the amount
receivable on temporary deposit to $100,000,000, and
limit the issue of five-twenty sixes to $500,000,005.
The issue of eertificateri of indebtedness' arid of •
fractional curreney Isunlimited by legislation.
The amount...of United States notes, including
notes receivable - for. customs, already issued andin
circulation, or in the treasury to the credit of dis
bursing officers or of the Treasurer, was on the Ist
instant $222,932,111. There yet remains, therefore,
under the law an autkority to issue the further sum
of $27,067,889. The amount received On deposit, in,
eluding coin and estimating for the last day of
vember, is $79,798,650. The further sum of $20,201,- 4
360 may •therefore yet be received. The issue of.
fractional currency has reached the sum of $3,884,80b.
The best lights lead to the estimate that befive ape
cie payments can be resumed not less than $40,000,y00,;
will be required by the wants of the community.
The of $46,116,200, not yet , issued, may thereL .
fore be counted on as an additional resource. It is
not easy to determine what further payments can I
be made in certificates of indebtedness; but it semis.
probable that payments ,in that-form may be safely . ;
carried to the amount Of $1001)00,000. These pay
inents have already reached $87:363,24i.65 and the• !
additional sum of $12,636,753.35 may, therefore be
paid in that way. What can be justly expected
from conversions under the act authorizlng.theJashe I
of five-tlyenly sixes, that it to say, from exclitingin
by holejers of United States notes Ibr therm bondsics- 4 : -
par, cannot be stated- with much eertaintithe
amount received frOraihia..source -from- the ate of I
the act
.....s.--sms._,_ 4o-11 1 - Ploi ember, is $23,750 a
re
so.-brY
received, if the act remains unmodified, during the
remainder of the fiscal year. The aggregate of all
these-sums, namely, $131,021,197,35, constitutes the
total of resources available for the - current year_
under existing-laws,-except-through sales, regarded
as impracticable under the act authorizing :their I
issue, of the five-twenties at their market, value.
These credit resources, with the actual •recelpts 1
from like sources, added to revenue in all fern's,
may supply the treasury with $511,646,259.96. There 1
remains a balance of disbursements of $276,912,517.66
to be-provided for.,
Howl
The easiest mode, doubtless, would be an issue of
the required amount in- United States notes; but
such an issue, especially in the absence of proper 1
restrictions on corporate circulation, would, in the
judgment of the Secretary, be as injurious as it
would be easy:. The addition of so vast a volume to
the existing circulation would. convert a - currency,
of which the benefits have thus far greatly out- ,
weighed the -inconveniences, into a positive ea- .
lamity. its consequences would be vast diminution '
of exports, inflation of . prices, increase of expendi ! I
tures, augmentation of debt, and, ultimately, disas
trous defeat of the very purposes sought to be at- .
tained by it. I
To a certain extent, however, and under certain..
circumstances, a limited additional issue or United
States notes /pay perhaps be safely and advantage
ously
made.
The Secretary does not - concur in the opinion
entertained by some, whose ability and experience !
:command deserved respect, that the aggregate
currency of the country, composed of the United
State, notes and notes of corporations, 1,3 at .
this moment greatly in excess of legitimate
demands for, its employment. Much ,less does
lie concur in another opinion, not unfre
quently expressed,. but expressed in his i
judgment without due consideration, that any
ac
tual excess is dirt to the issues
,of
.United btatee
notes already in circulation.
It is true that gold commands a premium in notes ;r!
in other words, that to purchase a given amount of . 1
gold a greater amount in notes is required: But it ;
is also true that, on the susension of specie piy
merits, and the substitution for coin of United Statet
notes, convertible into six per cent. specie bonds as
the legal standard Of value, gold became an article ;
sof merchandise, subject to the ordinary fluctuations
of supply and demand,. and to the extraordinary •
fluctuations of mere speculation. The ignorant
fears of foreign investers in national and State I
bonds, and the other American securities, and the ;
timid alarms of numerous nervous individuals in
our own country, prompted large sacrifices upon evli
dences of public and corporate indebtedness in one
markets, and large purchases of coin for rernittancii
abroad or hoarding at home. Tatting advantage Off
these and other circumstances tending to an ad
vance of gold, speculators employed all the arts
the market to stimulate that tendency, and carry - I
-it to the highest point. This point was reached on
the 15th day of October. Gold sold in the market at •
a premium of 373,1 per cent.
That Oh; remarkable rise is not due wholly, or i
even in - greatest part, to the increase of the cur- !
rency, - is established beyond reasonable doubt by •:
considerations now to be stated. . . .
First: The whole quantity of circulation did not,
at the time, greatly, if at all, exceed the legitimate I
demands at payments. Ontheist day of November,
IS6I, the circulation of United States notes, inch
ding credits to disbursing officers and.to the Tretual
rer of the United States, was $15,110,000. On the
Ist day of NoveMber, 1592, it was, with like inclu
sions, $210,104,000. Of corporate notes, on the ist I
of November, 1861, the circulation in the loyal I
States was, according to the best estimates,.sl3e,-
000,ec0 ; on the Ist of November, 1862, it was $167,-
01:0 000. The coin in circulation, including the cdin
in banks, was probably not less, on the Ist of No- -
vember, 1861, than.s2lQ,ooo,ooo. On the Ist of No
vember, 1862, the coin had been practically demone
tized and withdrawn from use as currency, or leas
basis for currency, and is therefore not estitnated.
The aggregate circulation of the loyal States, there-
fore, was, at the first date $355,140,000; arid 14 the
second, only $377,104,000. .
Secondly: The whole, or nearly. the whole, in
crease in the volume of the currency width has
taken place was, it is believed, legitimately demand
ed by the changed condition of the country in the
year between the two dates. The: activity id busi
ness which, at the 'close Of that year, had taken the
place of the general stagnation which marked its
beginning, and the military and naval preparattoniq
and movements which had vastly augmented the
number and amounts of payments to be made .in
money, have it is believed, legitimately deiliauded
nearly or quite the whole of it.
That such is the case may be reasonably inferred.
from the fact that the .prices of many of the most
important articles of consumption have declined,,or
not materially advanced during. the year. 'Wheat;
quoted at $1.38 to $1.45 per bushel On the Ist of _No
vember, 1861, was quoted at $1.15 to $1.50 on the Ist
of November, 1662. Prime mess pork, on the ist.of
November, lam, was quoted at .$l5 to. $15.50 per
barrel, and on.the ist of November, 1862, at sl2.stf to
$l3. Coin sold on.the Ist. of November,. lt3lil, at.b '
to 63 cents per bushel, and on the Ist of November,,
.1862, at Ti to 73 cents. A comparlson• between the
prices of hay, beef, and wine .other stapieS of do
mestic produce at the two datea, exhibits similar
conditions of actual depression iu prices or moderate
rise.
Thirdly : It is,...perhaps, still ; more conclusive
'against the theory or great redundancy .that, 'on
the 15th day of October, when the aggregate, actual'
circulation, national and corporate, was about $360,-
ceo,ooo, the premium on gold was ; whereas, on
the 29th day of . November, when the circulation had
increased by more than millions, the:preMlum on
gold was 29, to 30 per cent.
But if th fact of conaiderable redundancy = in cir
culation tie conceded, it by no means follows that. it
is the circulation of United States notes which is
rc(1111.1(ilint.
It must be remembered that the law confines na
tional payments and receipts to coin' and notes of the
United States. Officers of the treasury; officers of
the army and navy, all officers Of ell departments,
must obsen - e and enforce this law. For all pay
ments to be made hi behalf of tlie United States, in
ease of inability to obtain edit', United States notes
'Must be issued: 'it is, ilideed;. the duty of the Legis
lature to See that the purchasing power 'of these
notes is kept as nearly as possible equal•to the pyr
chasing power which gold would have had if specie
payments had been maintained ; but the. issue and
use of the notes is unaroidable r med the Govern-•
'tient can resort to borrowing' only•when the issue
has become kutthiently large to' warrant a just ex
pectation , that loans Lof the notes scan be had from'
those who hold or can obtain them; at rates - not less
advantageous than those of eoiu loans before suspen
sion?. The difficulty , which the takers of the recent
loan of $13,613,450 found in obtaining United States
notes with which to meet their engagements at the
Treasury is very inatructive ou this head. It points,
indeed, direetl to the conclusion that loans of
United Statea. notes,' in miffiderit amounts to,meet
disinirseritents of the Government; could not
now be obtained at rates which a due regard to the
',iiitereata of the tax-payertryoUld permit the Secre
,tary to accept. Whatever may be said of 'the aggre
tate circulation, it eanniat,, then, be successfully
maintained that : the' altattlatioa of Vatted States
Iltegrease is Intiosed'by the judiamisllegislatiOn of
lt Co , sit, , whicktmakes.:the- notes :receivable for
lotta and requires that the interest on bonds for
loan hall be paid in coin. - - ' • .
Liz et.' these circumstances, -the path of. wisdom
and, ty seems very clear.: -It leads to the support
• Of. a !tilted States note. circulation, and to the re,
flucti nof the bank note circulation. A ComPara
tivel small - reduttion of the latter will allow ample
rcanit or the whole increase of the former, author
ized r existing laws ; and as the reduction pro
ceeds le increase - may be - extended, never, however,
Posh% the point which admits the :negotiation of
loafs t reasonable rates. ,The Secretary has here
tofre dvised the imposing of a moderate tax on
coriin to circulation, and. now renews the recom
met la on as the best means of reductiOn and gra
-1
duo 'a bstitution. Such a tax involves no hard
sldl ": 1 Notes circulating as money cost nothing be
,. yon 1 t e expense of production and supervision, and
yet 'or a highly accumulative species of property. •
Thane ssities of the war have caused the taxation .
of Wino tall forms.of value. Can 'there be a sound
reason r exempting that which costs the proprietor
lea km 0 brings him mostl
Ila be .properly added that this desirable sub
stit
11
los of a circulation, uniform in descrifit ion and
volt , Or a ciroulatiou'rarying widely in both, may,
petit Ps; be more easily and benelleially affected
now ban at 'any other time. The circulation of
Uni I States notes may.greatly facilitate the pay
men .to the banks through which _ their own notes
inns e withdrawn; and thus, not only protect the
court nity from the inconveniences; but the banks
from he losses.which • might otherwise attend re ,
duel' . • . ... .
. it w ; also be added that when the substitution
i t
shall tve been' accomplished, and; perhaps, if dr
cumstacps faVor,.at an earlier period, psyments in
States
- specie -United nptes maybe resumed with
less en rnd less injury to busiriess.than. would at
st
.tell a like resumption in payment of corporate
note% With cOMparatiVely trivial sacrifice, the Go-
Neil:dent can -whenever its, expenditures arc re
duced Actits revenue, provide; -byloan,or otherwise,
all thy torn needed:lo, commence aid retain the re
sumPten.-
NV hie the
. Secretary thus repeats the preference
..he haj heretofore expressed for a United :States note,
circulitioe, , even, when issued .directly by the Go
•ernlieitt, and dependent on the action of the Go
for regulation and final redeniption, over
the note circulation of the numerous and variously'
organized-and variously responsible banks now ex
. isfiag.iii theconntry ; and while he now sets forth,
Mole fully than-heretofore, the grounds of that pre
ference; he still adheres to the opinion expressed in -
his last report, that- a -.circulation 'furnished by the
Government,, but -issued by banking associations, '
ergaitized underlt general act of Congress, is to be
prefsrred - to either. Sudo a- circulation ) uniform in
general characteristics, ;and- amply secured as to
proMpt convertibility by national bonds deposited in
the!treasury„ : by the associations receiving it, would
unite in his.judgment, • More elements of, soundness
-.-Pn.ttutility than can be combined in anylather.
. - L,._ : .1. circrtiattonmomposed exclusively of no tea issued
ulibA , AlY by tivi4GOvvrnment, - or-of- such notes and
- t c a c i re e-rirs in l 't — , rr ei .7 l2. l":_ m ed en ti . 9 4l ..
I.,.Tl.._ul.p..ai ed..lintinij c - i b u i t - r tr ith _ rr eonS i Lde.l.l. - z ra t 7 y ,
N ..--- --- , -! , ,...mooriatiL.frOM itS
. • • •
, le principal objections tet such it - eirc t 'o„;,.,
permanent system are, Ist, the facility 0rU1 3 .11.
expansion ;When expenditures exceed revenue ; 2t1,.
the danger of lavish and corrupt expenditure, stimu—
lated by-facility of expansion; 3t1,, the danger of
finial in management 'and supervision ; - 4111 - , the nil
pdssibility of providing it in suflicient-amounts for
the wants orthe people whenever expenditures are
reduced to equality with revenue or below it. r,
- These objections are all serious. The fast requires,
smite elucidation: It will as easily understood,
however, if it be considered that n Governnient is-..
suing n credit. eircnlationsannot supply, in any given
period, an amount of currency greater than thecx- -
case of Its disbursements - over its receipts: ' To that
it may create a: debt - in small .notes, and
these notes maybe used as - currency. This is pre-:
eisely. . the way iritavhich the existing .currency of
United States notes is supplied. That portion of
tits expenditure not met by revenue or loans has
. been met by the issue of these notes. Dent in this
. form has been substituted for various debts in other
' foints. -• Wheiaever, therefore; the' country shall be,
I restored to a healthy normal 'condition, and ,re
ceipts exceed expenditures, the supply of United
; States notes will be arrested, auditing progressively
drnfinith. WhateVer' demand may be made :for •
their rOdemption in coin must hattten -this dimilm
lion ; sad there can be no reissue ; for reissue, under
. the conditions, necessarily imples disbursement,
I and the revenue, upon the supposition, supplies more
than is needed for that purpose. There is, then, no
: modein which a currency in United States notes
can bt- permanently maintained, except by loans of
them !when not required for disbursement, on de
.
posit: of. coin, .or pledge of. securities, or in some
otherway. This would convert the Treasury into
a (36: ernment bank, with all its hazards' and lids
: ehieft.
i • if these reasonings be sound, little room can
; .remain for doubt that the evils certain to arise •
Iromsuch a scheme of currency, if adopted as a per,
I - mandril system, greatly overbalance the temporary
! thenth-not inconsiderable advantages offered by it.
1: .It remains to he considered what results may be
; reasonably expected front an act authorizing the or
: gspaization of banking associations, such as the
i Sderefary proposed in his last report. •
1 the central idea -of-the proposed Measure . is the
! establishment Of one soul uniform circulation, of
1-,eciaelvslue throughout thetonntry - , upon the founds
: tit aof national credit combined with private capi
-Ita . -
1 much a currepoy, it is believed, can be secured
! t ough bankinttassociations organised under
tl na-
i nal legislation. -
11
Is- t iffproposed that these associations be entirely
' V untary. Any persons, desirous of employing
Tell capital Insufficient amounts; can, if the plait be
adopted, unite together under proper articles, and,
hiking contributed the requisite capital, can invest
Built part of it, not less than a fixed mininitim, in
! Uilited States bonds,, and, having deposited these
bonds-with the proper officer 'of the United States,
can receive United States notes in . such denomina
tions as may be desired, and employ them as money . .
..,ip, diacoUnts and exchanges. The stockholders' of any
- existing batikii can, - in like manner, organize under
the act,-and :transfer, by such - degrees as may be
-found convenient, the capital of the old to the use of
. ..
the new associations. Tie notes thus put intoeir
c:ulation will be payable; until restimption, in United.
States notes; and, after resumption. in specie, by
the association which issues them on. demand; and
If not so paid will be redeemable at the • treasury of
the United States from the proceeds. of the bowls
`pledged in security. In the practical working of the
Thin, if sanctioned by Congress, redemption at one
.tir more of the i , great commercial centres will
,Probably . be provided for by 'all -the. associations
lathich circulate the notes, and t in case any assocht ,
'Mon shall fail in finch .redemption; the treasurer of,
the United States will probably, under discretionary
, authbrity; pay the notes; and - cancel the public debt
.helties security. ' • • •
It seems difficult •to conceive of a note circulation
Which Will conibind higher local and general credit
than this: ' After a few' - years no other circulation
would be - used; nor could the issues of the national
circulation. be easily increased beyond. the legiti
mate demands of ,business. -Every dollar of cireuld
tion would represent representrcal'eapital, actually invested"!
national stocks, and the total 'amount issued could.
'always be easily and qffickly ascertained from the .
.hookirof the treasury. These circumstances, if they
„might notwholly, remove the temptation to exees
,,aiveissues, would certainly reduce it to the lowest
point; while theform of the notes, the uniformity of
devices, the 'signatures of national officers, and the
,imprint of the national seal authenticating the de,
claration borne on. each that it is secured by .bonds
which represent thelsith and Capital ' of the-whole
'country, could not fail to make'every note as good
in any part of the world as the best known and best
esteemed,national securities.
The c'eretary has already mentioned the sup
p-ortT nblie credit which may' be expected filial
thelitiiiposed associations. • The importande of this
'point may excuse some additional observations.
The organization proposed, if sanctioned by Con
. gre'is, Would require within .avery few years, for
delimit *as - security for circulation, bonds of the
United States to an amount not less titan V. 50,000,000.
It =riven be expected,' indeed, since the eircula
tion,by uniformity hreretlit and value, and capacity
;Of qttick:and cheap transportation, will be' likely to
be used more extensively - than any hitherto issued,
that the demand for bonds will largely overpass
this lipdt. Should Congress see fit to restrict the
lulvilege of dCposit to the bonds knbwn as five
twenties, authorized by the act of lhst session, the
'deniand would promptly absorb all of that de
• ecription already issued and make huge room for
IDIOM •• A steady market for the bonds would thus
.be established and the negotiation of them greatly
'facilitated. • '
'Mt it is not in imnfedinte mantis that the value
•of thhi'sumiOrt would be only or chiefly seen. There
are. always holders who desire to sell -securities' of
whitever kind. • If buyers are few or uncertain, the
'market value must decline. But the plan proposed
would :create a constant demand, equalling and
often exceeding the supply. Thus a steady uniformi
.ty in.price mould be maintained, and, generally at •a'
rate somewhat above those of bonds of equal credit
but . not available to banking asseciations. It is not
'easy to appreciate the full benefits of such condithins
to a Government obliged to borrow.
Another advantage to be derived from such asso ,
• eintiOns would be found in the.. convenient agencies
Which they would ffirnbilrfor the deposit of public
lnoiirysc • . •
The Secretary does not propose' to interfere with
the 'lndependent Treasury. I tmay be advantageously
, retained, with the assistant treasurers •already' esta
blished in the most important cities, where the cum
' loins limy he collected as new, in coin or treasury
' notes I%sued directly by. the Government, but not
furnished to banking associations. •
But Whatever the advantages of such arrange
ments in the commercial cities in relation to cus
toms, it seems clear that the secured national circu
lation furnished to the banking associations should
be received, everywhere for all other dues than ens
toms, and that these associations will constitute
the best and safest depositaries of the revenues de
' rived front . such receipts. The convenience and
Utility - to the'Government Of 'their employment - in
this capacity, and often, also, as agents for paymenta
and as distributers of thanipa r need no denionntriv;
t ion. The necessity for some other depositaries than
surveyors of porta, receivers, postmasters, and other
officers, of whose responsibility and fitness, in many
cases, nothing satisfactory can be known, is acknow?
ledgecl by the provision for selection by the Secre
tary-contained in the •internal revenue act ; and it
seems very clear that the public interest will be
secured far more certainly by the or n mnization and
employment of associations organized as Proposed
than by any ,ofticial selection. -
• ' • Another and very advantage of the pro
posed plan has'nlready been adverted to.' It-will re
concile, as far fiSpracticable, the interests of existing.
institutions with those of the whole people. •
All changes, however important, should be intro
duced with caution, and preceeded in with careful
regard to every affected interest. r Rash innovation
is not less dangerous. than stupefied inaction. The
time has come when k circulation Of 'United States
notes,'in some form, must be employed. The peo
ple demand uniformity In currency, and claim, •
at least,' part of the benefit of aelarwithout interest,
made into money, hitherto enjoyed, exclusively by
the banks.: These demands arc just, rind must be
respected. But: there need be - no: sudden change ;
there need be no hurtful interference -with existing
interests. As yet the United' States note' circula
tion hardly fills the vacuum caused by.the temporary
withdraivel of coin ; it dries not, perhaps, fully meet
the demand - for increased circulation created by the
increased-number; variety, and activity of payments
in money. There is opliortanity, - therefore, for the
wise and beneficial regulation of its substitution for
other circulation: The mode: of sulistitution, also,.
may be judiciously adapted to actu'aleireumlitences:
The plan suggested consults both purposes. It con
templates gradual withdraWalof bank-note circula
tion, and proposes a United States note circulation,
furnished to banking associntions, in the advantages
of which they may participate in full proportion •to
the Care and responsibility assumed and the Services
performed by them. The. romptitude and zeal with
which many of the existing . institaitionS , came to the
financial' support , of the .Csevernment in' the- dark'
days which follotVed the outbreak of the rebellion is
not forgotten. They ventured'' largely, and'boldly,
and patriotically outheeide of, the- Union and the
constitutional supreinacyof the nation over States
and citizens. does not,: at, alldetract -from the
merit of the act that the losses, which they feared
but unhesitatingly risked, were transmuted into un
expected gains.., it is-a solid recommendation of the
suggested plan that it offers theopportiinity to these
and kindred institution to reorganize, continue their
business under the proposed act, and with little loss
and Much advantage, participate in maintaining the
• new and•uniforin national currency. ' -• • .• . •• • ••
Th4proposed plan is.recOmmentled, finlilly, by the
firm .anchorage Wulff 'supply to the , Unlon of the
States:.,Everyrbanking aserociatioewhose bonds Are
depOSitediti,the trenstfry of theUtilt/11; every jridi
vidual who holds a dollar of thO'circuliitiori' secured.
by such deposit,; every . merchant, • every Mainline
tnrer, every farmer, every "mechanic,' interested in
transactions dependent for success on the credit
of that Circulation, trill feel .as an Injury every
'attempt to - t611:: fbe natieniti are-, "th' "a
permanence . and stability of which . all. 'their
Interests are; so., closely. and vitally connected.
Had the 'systeM been - possible, end had it 'ac
tually existed two :years ago,-: can it be. doubted
that the national interests and sentiments enlisted
by it for the Union would have so strengthened the
- motives for adhesion derived from, other sources
that the wild treason of Secession would have been
impossible ' -. • !
The Secretary doesnot yield to the.phantasy that
taxation is a bleasing . arid debt - a' benefit but it is
the duty of public men to extract gOod from evil
whenever it is possible. The burdens of taxation
may be lightened and even 'made productive; of
• incidentalbezietitis'by wise, and aggravated and made
intolerable by, unwise, legislation... In like manner
debt, by no means desirable in itself, may, when cir
cumstances comperriations to incur its obligations,
be made by discreet use less burdensome, and even
histrument'al inrthepiomotion of-public and private
security and welfare. • .
The rebellion has brought a great debt upon tis.- It
is proposed to use a part. of it•ln such a way that the
sense of its burden.may be lost in the experience of
incidental advantages. The issue of United States
notes is such a use 5 but if exclusive, is liazardou's
and temporary. • The sec - Linty by national bonds of
similar notes furnished to banking associations is
.such . a use,- and , is comparatively safe and penile
nent and with this use may be connected, for the
present, and occasionally,. as circumstances may .re
quire; hereafter, the use of the ordinary. United
Stales notes in limited amounts.
No very . early day will probably witness the .93-
duction of the public debt to the amotuit requited as
a basis for secured circulation. 'Should no future
wars arrest: reduction and again demand expendi
tures beyond revenue, that_day will, however,'
length come. When it shall arrive the debt may be
retained onlow.interett, , that • amount, or some
other security, for circulation may be devised, or;'
possibly, the-vast supplies 'of our rich mines may
render all circulation unadvisable except gold and
the abkolute repreSentatives and equivalents, - , dollar
for dollar, ot goldin the , Treasury or on Safe deposit
elsewhere. . lint these considerations. may be for
another generation. ' " •
The Secretary forbears extended argument' on
the constitutionality of. the suggested
. system.
it t is proposed as an auxiliary to the pOwer
to borrow money ; as an agency, of the power
to collect and disburse taxes ; and as an exer
ciSe. of the Bower tia regulate commerce,And of
-the powe9to regulate the value of coin. 01 the two
-first sources Of. power {lothfrig need be said. The al.,
gutneut relating to them' was • long since exhausted,
and is well known. Of the other two there is not
room; nor does it seem needful to say much. • If lion
gresis can .primeribe . the, structure,equipment, and
management of vessels to navigate rivers flowing
between 61. through differenti States as a regulation
of coninterce„ Congress, may assuredly .determine
what currency Allan be employed in the interchange'
of their commodities; Which , is the very essence of
commerce: Statesmen who have agreed -in little
else have concurred' in the opinion quit thepoWer
to regulate coin is, in substance and etrect„a power
to regulate currency, - and that .the. #anies! of .the:
Constitution so illtetaieU. It mar -wei/Loil'ough. '
w_htle,Congress tontines its regulation
! to weight,' fineness, shape and deviee, banks and in
dividual's may issue - notes''for curieney in: comaistis
gubite coin can be separated-from the power to main
tain or restore its circulation, by excluding from cur
rency all privateer corporate' substitutes which of . - .
feet its value, whenever Congress 'shall see fit to ex
ercise that power for that purpose..
The
The recommendations, now submitted, of thelimit- -
ed issue of 'United States notes as a wise expedient
for the idesent tifile, and as an Occasional expedient
in fithire times; and of the organization of banking
associations to supply circulation secured by national
bonds, and Convertible always into United States
;notes; and, after resumption of specie pay . ntents, into
coin, are prompted by no favor . to excessive issues of
any description of credit Money. • • '
On the contrary, it _is the secretary's firm belief
'that by'no other path can the' resumption of specie.
payments. be so surelpsteached 'and - so , certainly
maintained. United States notea, receivable
,for
bonds bearing secure 'specieinterest,, are next best
to notes convertible .intucoin. The eirchlation of
banking associations organized under a general act
of Congress; secured - by • such , bonds; can be most
surely and safely maintained at the point of certain
convertibility into Coin. lf,temporatily, these FlSSO
clations •redeem. their ' Idsues: with United States
notes, resumption of speciepayments will not there
by be delayed or endangered, but hastened and' se
cured; for, just as soon as victory, shill restore peace,
the ample revenue, already secured by wise legisla
tion, will enable the Governnient, throdgh'advanta
geous purchases of specie, to replace ,at once large
amounts, and, at no distant day, the Whole: of this
circulation by coin. 'without detriment:to any inte
rest, but, on the contrary, with. great. and manifest
benefit to all interests.
The Secretary recommends, therefore, no mere
paper-money scheme, but, oil the contrary, a series
of measures looking to a safe and gradual return to
gold and silver as the only permanent basis, stand
aid, and measure of values recognized by the Con
stitution—between which.andan Irredeemable paper
currency, as he . believes, the choice is now to be
made.
No country possesses the true elements of a higher:
credit—no country, in ordinary times, can maintain
a higher standard of currency and payment than the
United States. . ...
The Government is less 'costly than that of most
other great Powers. • The expenditures of the cur
rent fiscal year, excluding those .of the War and
Navy Departments, can hardly equal those of hist
year, which amounted to $2.4,51.1,176.66. Estimating
those of these Departments at double the,expendi
tures of the last year before the rebellion,-they would
fur the current year, had the war ended before last
midsummer, as was anticipated at the date of the
last report, amount to the suns of $55,615,834.48.
The interest on the public • debt is; for the- current
year, estimated at $25,041,542.07, and will not proba.;
bly go over that - sum. The' whole expenditures of
the Government for the:current year, on the suppo
• sition of peace„ would, therefore, not exceed $lO5,-
371,843.21. This' aggregate.must be increased here
after by the addition of Interest on the loans of the
current and future 'years, and by pensions, the pre
cise amount of which cannot be foreseen. Estimate
the former at fifty, and the latter at ten tnilliorks a
year, and the total 'annulsl expenditures l in peace,
will reach, omitting fractions, to $.165,000,000. 'rite
expenditures of Great Britain during the year end
ing March ; 31, 1862, ,were ta361,436,t&a.; • those of
France, for ISO; according to French official esti
mates, 1011 reach $421;£323,900; and the annual eX
penses of Russia, according to the best accessible in
formation, do not fall short of $.139,000,00e.
To meet our annual expenditures, and to assure,
beyond contingency, the, punctual discharge of the
interest of the public debt, and the creation of a sink
ing-fund for its reduction, Congress has' provided. a
revenue front customseven now reaching, nearly se
venty' millions a year,' and a revenue from internal
duties which will not probably fall. short of a Mm-
Used and fifty millions it
: year.
'Without reckoning any other resources than those
- already, provided, the revenue ' therefore, will an
nually exceed the eitiientlitures.by tifty-five millions,
which sum may'be used for the reduction of the pub
lie debt. If, then, the war shall. be - continued, con
trary to' hope and* expectation, to midsuramer of
_1864, and the public debt Shall reach'the utmost limit
now anticipated, of seventeen hundred and fifty mil
' Hone of dollars, the' excess of revenue will reduce
that debt, during the first year of peace, more than
three per cent.
But the American Republic posiesses immense re
sources which have not.yet been called into contri
bution. The gold-beanrig region of the United
States stretches jhrough near eighteen degrees of
latitude, from British Columbia on the north to
MeXico on the Sohth, and throng - Ignore than twen
ty degrees of longitude, from the eastern declivities
of the Rocky - mountains to DIE Pacific Ocean.. lt in
eludes two States; California and Oregon; four en
tire Territories, Utah, Nevada, New Mexico, and
'Washington; and parts 'of three other Territories,
Colorado, Nebraska, and Dakota. It forms an area
'of more than a million of square miles, the whole of
• Which; with comparatively insignificant exceptions,
is the property 01 the:nation.. it is rich not only in
gold, but in silver, copper, iron, lead, and many
other valuable Minerals. Its product of gold and
silver during the current year, will not much, if at
all; probably' fall very short of stoo,000,000; and
it, must long.continue gradually, yet , rapidly, to in
crease. if this product he antuected to a' reasonable
• seigniorage, as suggested by some, or If, as suggested
by others, the mineral lands be subdivided and sold
inconvenient parcels, with proper reservatlons in
favor of the miners now in occupation of particular
localities„rt ,very considerable revenue may, doubt
less, be obtained from this region without hardship
to the actual settlers and occupiers.. •
And there are other mines than those of gold or.
- silver, or copper, :Or iron, - in the wide territory
which includes the public lands,of the United States.
• Every acre of the fertile soil is a mine which only
waits for, the contact of labor to yield its treasures; •
and every acre is open to that fruitful &intact by
the homestead • act. .When the:opportenities thus
•oftercai to industryjhall be understood by the work
ing millions of Europe ; it cannot be doubted that
great numbers will seek 'American homes, in order
to avail themselves of the great advantages ten
dered to their acceptance by American law. Every
working man who comes betters the condition of the
nation as well as his eivn. Ile adds in many ways,
'seen and unseen, to its Wealth, its:intelligence, and
its power. It is ' difilcultto estimate the contribu--
tion Which properly . encouraged by
legislation and adniinistration, will make to reve
nue; but,. directly and indirectly, it cannot be
• reckoned as less than that which 'may. be expected
from the metallic products of the gold-bearing re
glen-
. .
With'such resources at the disposal of the Repub
.; lic, no one neetlbe alarmed lest the .United States
may become tillable to pay the interest on its debt,
:or to reduce the principal tb whatever point the
public interest noiy,iiitlietite... The Republic •is pass-.
''log through the pangi of a neiv• birth to a nobler and
.•higlier life. Twice already ) 'she • has paid off na
tional debt contracted for the defence of lier rights ;
' the obligationa of that which She now incurs for the
preservation of her existencelvillbe not less sacredly
fulfilled. , • " ' , . •
' But While resources-are thus . ample,it- is not the
less the,dictate of 'prudence and of. good , faith to a
' generous ',eerie that the 6 , reatest,ratina•Shoukt be
TWO CENTS.
. .
taken to reduce the burdens to the lowest
point oompatible with-justice: to -honest public cre 7
ditors. Prodigality may exhaust the amplest re
soureeS and impair the firmest credit. To retrench
superfluity; to. economize expenditures; to adjust
accurately measures to objects; to infuse resolute
vigor and a just sense of responsibility into every
department of public activity are not less important
to credit and revenue than to general success in ad
ministration:
It has been. already. stated. that the amount, to be
provided beyond resources available under existing
lawsils, for the current year, $276,912 , 517 60 1 and for
the ensuing 3 - ear, $627,389,183 56.
To provide these amounts loans in some form
must be negotiated.
The, Seeretary has Already expressed the opinion,
with great deference to the superior wisdom of Con
gress, that it. will ~be ;unwise; unless conditions
greatly change, to authorize the increase of United
States notes: beyond; tic limit now fixed by law.
Should any vacuum be created by the withdrawal of
bunk-note that vacuum should, doubtlessi_ .
be filled by United States, notes. Should Congress
adopt the measures proposed' by the Secretary, it is
not improbable that an additional issue of fifty mil t .'
Hong may be required for that purpose within the
year, and an equal additional issue during the
year. 'And it may well - be hoped that mill:. - I
tat y successes, re-establishing the authority of the'
United States in large diStricts of the insurgent re
gion, will, calUor further issues to; supply. the place •
of the worthless currency which the rebellion has
forced upon the people.: Should it 'be deemed expe
-client to-invest the Secretary will, any discretionary
power, in view. of these.' contingencies, it should ,be
so limited as to allow no increase. of aggregate cir
culation beyond the clear demands of real: business.
A . considerable additional sum may probe bly be
obtained - by4emoving the limit on teuiporary de
•posits. . The amount of these deposits has steadily
increased,'notwithstanding large -repayments to de
positors. The treasury of the Government has been
made the savings bank of the people.- Should the re‘ .
striction be removed, there is reason to believe that
twenty;fite millions may be received beyond the
maximumnow fixed, during the 3 - ear. •
'lint the Chia relfance, and the safest, must be neon
loans. "Without any issues of .United Statei notes
beyond - the amount now-authorized, it seems certain
;that loans forthe whole amount required for thecur
rent year can be readily obtained at fair rates; and it.
may be,confidently hoped: that before its close the
resources of.the country will be so well understood,
and' the .reatoriition , 'of territorial integrity so
well. assured, that capitalists -will not hesitate to
supply may belle Med for the subsequent
year. • • r
'But in order to' the advantageous negotiation of
loans the action of congress is necessary. -
As an important element of facility in negotiation,
the plan for, banking . asseciations has been already
,considereil.' Little direct aid is,-however, to be ex
pected'frozirthis: plan ;during:,the..urefient,n.orvery
much, perhaps, during the next year. The opera
tion of associations organized under it Must, atlirst,.
ue teitiletEd rattly to Ihyntinestinited States notes
in bonds issuing a circulation based on these bOnt.l4;
and.transacting ordinary business., As the notes re
ceived for the' bonds cannot be reissued without in
jurious intlatiomof the circulation, they must neces
sarily be withdrawn and Cancelled. The aggregate
circulation of Government United States notes
withdrawn will be replaced by the amount of na
. tional circulation 'furnished to :the associations.
The immediate advantage to the Government will
-be foundinlthe 'market 'created:for bonds, and the
support thereby given to the national credit. The
more general advantages which have been describeil—
must attend the gradual. organization of banking
associatiOns;hnd will only be funk apparent when
the national circulation furnished to them shall be
come the established and - solo note circulation of the
country. • • ,
Other legislation is therefore needed.
The-act of last session authorized the Secretary to
issue bonds of the United States, already often men
tioned as five-twenties, to the amount of five hun
dred millions of &Miffs, and to dispose of them for
coin or United States notes at the market value
thereof. In'the same act authority was given to is
sue $150;000,000 in United States notes, which au
thority was afterwards enlarged to $250,000,000; and
it. was provided - that any holder of such notes to the
amount of fifty dollars, or - anymultiple of fifty. might
• eicchange them for five-twenty bonds, at par.
The effect of these provisions was to make nego
tiations -of considerable amounts impossible; for.
considerable amounts are seldom taken,. except with
a view to resales at a profit , and resales at any profit
arc impossible under tile law: Negotiations below
market value are not allowed, and, if not allowed,
the taker of the bonds.can expect no advance, unless
a market value considerably below par shall beconie
established. • The act makes advance above par im
possible, by authorizing conversion of United States
notes into bonds at that rate.
The Secretary reapectfully recommends the repeal
of both these pros - Moils. ,-The first imposes, ,it is
believed, a restriction which Congress did not in
tend; and the second hai - been folk:ivied by the in
conveniences which were feared, rather than by the
benefits' Which Were expected. , Convertibility by ex
change. at will is of little or no advantage to the
holder of the notes ; TOr the clauses which 'secure
theirrcceivabilityfor all loans make them :practi
cally 'convertible. Wherever the volume of-notes
reaches a point at which loans can be. effected at
rates fair - to the country - and desirable to takers,
loans - will, of courses be, made, And • ample•opportu
nities for conversion offered. • "
Should Congress, however, •be of opinion that
these clauses should be retained, it will be necessary
to provide Tor other loans,•at rates more favorable
to the Welders than convertibility into five-twenties.
This can be done either by authorizing: bonds at
longer time, or by increasing the rates of interest
offered. .
.The Secretary-cannot recommend .either .course
except as an alternative to no pro Vision at 'all.'
. As such an alternative
of 74/three-ye/Ira bonds,konvertible into five-twenty-
sixes at or before :maturity, and of smaller - notes
UM - id nktin interest.of.4.os_rier., cent., as' proposed in
his last report. • • • . 7
A CliscrOlonary power May, perhaps, be advan
tageously conterredkrit he Secretary;to be: xercised
as,exigencies may require or allow. He does not
etivitt the responilbilities belonging to such a power,
i_suo ch exerc eof it as in
He believes it, however, toe
lieves that the time and rate of the five-twenty loan'
authorized were : judiciously determined,.and he '
-be
lieves that if the suggested Changes are made in the
laiv, the needed suppliesr.cmy be obtained thiough
these loans. N W
o prudent legislator, at a time when
the gold in the .IVMM :is' increasing by a hundred
millions a yearorid interest must necessarily and
soon decline, will consent to impose On the labor and
business of the people a fixed interest of six per
cent: on a great 'debt; 'for twenty - years; unless the
necessity-is - far more urgent than is now believed to
exist, -The country has-already witnessed the results
of such measures do thepayment, in 1856, of more
"than four and a half millions of dollaralor the privi
lege of paying a debtof less than forty-one milliont;
some twelve years aferaged time before it. -became
due.
Thezeneral views of_the Secretary may, therefore.
be thus briefly summed '
He recommends that whatever amounts may be
needed ‘lteyond the 'sums' supplied by revenue and
tifrough•otherindicated modes be obtained by loans,
'without increasing theissue of United States notes
beyond the amount fixed by law e unless a clear pub
lic exigeriershall demiuld it. He recommends also
the organization of banking associations for the im
provement of the public credit and for the supply to
the peeple 'Of 'if Safe and. uniform currency.. And he
recommends - mo'change.in the inw providing for the
negotiation of- bonds except' thb necessary increase
of amount and the repeal of the absolute restriction
to nuirketvalue and - of the clauses authorizing con
vertibility at will.
If Congress shall concur in these yiews, the Seers-.
tart', though conscious of the great difficulties which
vast, sudden, and protracted expenditures impose on
.him, ventures to hope that he may still be able to
maintain the public credit and provide for the public
, . .
The repert of the director of the mint contains the
usuallinformation relative to the coinage for the past
-year, and makes several.sunestions, to which. I re.
spectfully invite your attention.
The* ;net amount of bullion received.: was
$45,423,231.01. . The amount coined was : of gold
coin, $45,532,386.50 ; of silver coins, $2,812,401.50; of
cent coins, $116,000; of gold bars $16,144,190.05;
and of, silver bats, $418,680.01 ; making a total coin
"age of $65,023,658.06. " ;
Of .the bullion deposited, $26,189,863.87 was re
ceived at the assay office in NeW York. Of the gold
bars, $16,094,768.44, and of silver bars, $415,633.57, in
value, were stamped at.the same office.
• At he branch mint in San Francisco, the gold de
posits were $16,136,62 - 2.96, and the silver.deposits
And purchases $749,114.14, in value. The value of
the gold coined was $15,545,000; of silver coined,
$641,700 ; and of silver bars, $1,278.65.
• Soon after the authority of the Union was re-estM.
Wished at New Orleana a special agent was appoitit
--
ell toexamine the condition of the branch mint in
that city, and itSinachinerY. The machinery proved.
to have.been greatly injured, and portions of it were
found distributed and secreted in various parts Of
the. city. The•portions were collected and replaced
in ;the mint, and the necessary repairs are in pro
gress. The operations of the branch mint, hoWever;
have not been, and for the present, at least; will not
be, resumed.
• By the net of-April 24, last; a branch mint was di
rected to be established at Denver, in the Territory
of Colorado, and an appropriation of $75,000 was
made: to carry the act into effect. A mint had al
ready been established there by individuals engaged
3n assaying and stamping, on private account, the,
bullion produced in that region. A commission was
appointed to ascertain and report as to the value of.
-this establishment and the comparative expediency
of purchasing it or. erecting a new one; and, upon
their 'recommendation, the existing mint, with all
its apparatus„ was purchased for $25,000.
• The Secretary respectfully commends to the con
sideration of Congress the expediency of establish;
ing 'an assay office or branch mint at some con=
venient point in Nevada Territory.
In his last report, the Secretary took occasion to
invite the attentiosh of Congress to the importance
of uniform weights, measures, and coin:r i ft:NA to the
worth' of the decimal system in the commerce of the
world. He now ventures to suggest that the present
demonetization of gold may well be availed of for
the purpose of taking one considerable step toward
these great ends. if the half eagle of the Union be
matte of equal weight and fineness with the gold
sovereign of Great Britain no sensible injury could
possibly drisb from the change; while, on the re-,
sumption of specie payments, its great - advantages
would be felt in the equalization of exchanges and the
convenience of commerce. This act of the United
States, MoreoVer, might be followed by the rulption
by Great Britain Of the Federal decimal divisions of
the coin; and' thus a most important advance might
be secured towards an. international coinage, with
value§ 'decimally expressed. .
'Under the provisions of the several acts of Con
. gress relative-16 trade and commerce between the
loyal 'States, and 'those 'States and parts of States
.declared to .be in insurrection, general regulations
have beiM issued .prescribing the conditions under
' whiCh that trade anti 'commerce, to a limited extent,
may be conducted. This trade has been authorized
only NiAth sections of the country in which; since the
- ]proclamation of .the President, the authority of the
Government has been re-established by military oe
eupiincy. No licenses or permits have been granted
for commerce with-inhabitants.of insurrectionary
districts bey ond:the liMits of such occupancy. Under •
tine provisions of the fifth section of the net of July
13, 1661, special agents
. have been appointed whose
duty lias been to carry out the authorized instruc
tions of the. Department, and ,it is anticipated that'
the expenies of their agency will be defrayed from
moderate' - charges for permits granted under their
superviSion: • . • .
The collection Of Cotton, rice and other abandoned -
property, and-'the superintendence of laborers and
plantations which, at the date of my last report, Was
committed to ' Agents of this Department, has since
been transferred, as more properly belonging to his
Department, to the control , of the Secretary of War.
• Du'ring the• last session, the 'Secretary had the
honor to transmit the draft of a bill intendetjyby,its
provisions to detect and prevent...fraudulent entries
at the' custom houses; and he adheres to the opinion.,
that. the • provisions therein embodied are necessaryr
for theproteCtion - Of the revenue. That invoices re
presenting fraudulent valuations of merchandise are
daily, ptescnted to, he custom houses is well known,
and for the'past year the collector, naval officer, and.
• surveyor of New York have entertained-suspicions
that fraudulent collusions with officers employed'in
"the custom honseexiated. ; Measures were taken
by,them,to ascertain whether. their suspicions were
well founded. • Bj• persistent Vigilance, facts were
developed which have led to !the arrest of several
. parties, and the ascertainment that a system of fraud
has beim successfully carried on for a series of years.
These investigation's are now; being prosecuted
tinder the immediate direction of the Solicitor of the
Treasury for the purpose of ascertaining the extent
of those frauds and. bringing the guilty ,parties
p I
unishinent; t :is ;believed that the enatinieut,
the laid session;-of-'the bill- referred' to would have.
arrested, and that, its enactment, now will prevent
hereafterithe 'frauds hitherto successfully' yiraotiseci.•
7 The increased -and increasing labors and respoosi,
frilk4es devolved ; upon tlie, collector at New Ye.rk
THE WAR PRESS.
(PUBLISHED WEEKLY.)
THE 'WAn PRESS will be sent to subscribers by
mall (per annum in udiance) at 83.130
giv e 66 66 0690
Ten " " 17.00
Twenty Copies " 33.011
Larger Clubs than Twenty wilt be charged at. the
Came rate. $1.60 per copy.
The Med 77671 771714 (Thaws accompany the order, and
in no instance can these terms he derfatedfroin,rts (hell
afford 'rerY little snore than the cost of the prtper.
4th- Postinasters are requested to act as Agents for
Tna WAII Pas Si.
Or Adiettisements inserted at the usual rates. Six
lines constitute a square.
suggest the expediency of appointing an additional
officer at that port, to be denominated the assistant
collector,. and authorized to act for the collector
during his necessary absence, and to perform sink
other duties as may be prescribed or approved by
the Secretary of the Treasury. Provision should
be made that his authentication of any lawful docu
ment shall entitle it to the same effect in courts or
otherwise as the signature of the collector, and that
his acts shall not impair the responsibility of the
collector, or of his sureties to the Uovernment.
The Exchange building, in the city of New York.
'leased for three years for use as a custom house, has
been altered, and, for sonic time, partially occupied.
The complete•removal to it of the custom officers will
soon be accoaaplished. The whole of the old custom
house .building' will be required •by • the assistant
treasurer..aird'itWlll be necessary, therefore, either
to purchase the rented building, or to erect another
for custom-house' purposes. It is believed that it
would be impossible to.purchnse an equally eligible
.site, and erect en equally suitable - edifice for tit;
price flied the lease of - the Exchange ; and it if,
'therefore; recommended that the option V) purchase
at that pricehe'availeti of.
.The.tulininistration of the hospital fund has been
looked to with great:care, and the expense of its dis
:.tribution, it is believed, reduced to the most econct
r Weal point. As has been before reported, the num
-ber of hospitals it in excess of the legitimate re
quirements of the seamen and the Secretary repeats
big recommendation of December last, that those
•least advantageously situated be disposed of on : the
most favorable terms. During the past year all the
hospitals under the control of this department have
in. whole,or in part; been placed at the disposal of
the War Depertmetit for the use of sick and disabled
soldiers. This use; not. originally contemielated, has
been most opportune and beneticiiff:
Under the act authorizing payments inetaraps as.
arraneement.was made with the postmaster Gene
ral for a supply of postage stamps to be distributed.
for use in such:payments.. It, was soon discovered,
however, that- stamps prepared for postage uses
were not adapted to the purposes of currency.
Small notes of equal amounts were therefore sub
stituted, and the Secretary assumed the charge of
preparation and distribution. With utmost efforts
it: was found impossible to. keep pace With the pub
lic demand for this currency; and although the
daily issue has been rapidly. .increased to .$106,000,
and isteing extended as fast as practicable to twice
that amount, the supply is yet largely deficient,
The whole demand; however, will be fully met as
soon as possible.
With a view to test thepracticability and economy
of engraving and printing United States notes at the
department under the act of July 11, 1861, the, Se
cretary has' contracted for. paper, and has autho
rized thepreparation of small notes as substitutes
for revenue stamps; substantially like the sinall
notes now Substituted for postage stamps, and in
dulges the hope that results will commend his action.
to fhe approval of Congress, and that the necessary
niodification of the provisions relating to *amps
and engraving will receive its sanction.
Seine difficulties hale been encountered:in the
ex6eUtiOn of the act of-last session, direcb
ing.the monthly instead of quarterly rendition of
disbursing officers! accounts, and then dirCet tram:.
mission to the accounting officers-of the treasury,
withciut preliiiiinary examination by the chiefs of
.:the administrative bureaus; and these difficulties,
though not insuperrible, may require some further
legislation for their removal. But the reform sought
by the act is important; and thepurpose of accom
plishing it should not be relinquished.
Statements in - detail of the operations of the de
pii-rtnfent will be found in the reports of the heads of
the several bureaus, and to whoin the Secretary
gladly acknowledges his obligations for most faith
ful and assiduous labors, by which the Multiform bu
siness under his - general charge, increased tenfold is
consequence - of the insurrection, has been carried ea
with a degree of success hardly believed - to be at
tainable. The unprecedented increase in the volume
and variety of accounts must necessarily require
more clerical. force and more room,- in order to the
prompt settlement indispensably necessary to the
protection of - honest creditors, and to the securityof
the Goverrunent from fraud. These great objects, it
is believed, may, alSo'be promoted - bra •modificatiou
of the existing arrangement of,the bureaus, so as to
bring all the accounts of each department into oue
bureau, instead of dividing them between several, as
is now directed: - • •
The Bureau,of Internal Revenue has-been Orga
nized-under the act of last•session, and is now acts.-
ally migageilin'the labors assigned to it. Collectors
and - assessors' have been appointed in all the dis
tricts of thejoyal States, and the revenue from this
.duties imposed by the law is steadily' and• rapidly
'increasing. •In • the absence •of any-statutory di-
T•eetiiiiira - he has assigned the settlement of the ao
cotints• of the bureau to the fifth auditor and%first
comptroller:'s
The Secretary 'invite's particuLar attention to the
remarks of the third auditor relative to payments for
property lait or destroyed in the military service.
He also resPeetfully suggests that authority-be given.
to the Secretary to• appoint commissioners to ex
amine and audit the claims of the several 'States now
referred to that alike for settlement.
The favorable consitler4ion of CongreSs is respect
fully invited to the rennet - fa of the Treasurer and of
theßegister for the appointment of a deputy in each
of their bureaus. Of the necessity for such appoint.
ments no doubt is entertained.
The action - of the supervising inspectors of steam
boats, collectively as a board, and indiVidually is
their respective districts, merits the approval of
Congress. Their report, to which the Secretary in
vites attention - gives evidence of the-value of their
labors, while, tlie comparative immunity from acci
dents, secured by their vigilance, attests the wisdom
of the act under which their work is prosecuted.
The regulp„tions directing the examination' of ap
plicanis for appointment in the revenue cutter ser
vice, and Making certificates of competency from
the lioard of Examiners )rgz3, niBtres to commis-
vice, and will be ad erect to. This service has
come an essential arm Of the depaitment in the exe
cution of the laws. Its highest 'vigor and activity
_.will especially be required so long as the presc , ift high
rates of duty shall be required by the exigencies of
the country: The'Secretary hopes to be able to place
It on a footing of the utmost efficiency, without per
mitting its 'cost to exceed appropriations already
made.' The:great demand by other departments for
—shipwrights and'rnaehinerv. has not, as yet, permit
venue re
'rut specifications, however, have been prepitFM,"atitz—
the work will be proceeded with as soon as practi
cablp..
Full details ofithe operations of •the Coast Survey
- will - appear in the report of the Superintendent.
•The • services. •by -which ' its great value was
strikingly illustrated, during the earlier months of
the rebellion, hack been continued, - With undi
minished zeal and -fidelity, to the present time, and
its general work has been promoted with as mudh
activity and success as the peculiar demands made
upon it by - the circumstances of the country would
allow
'Within the year 43000. copies of •. maps and charts
have been furnished-for naval TeSgdEj and 2,000 to
captains and pilots of Government transports on
their Pdrsonatapplication. - • . .
--Its- accustomed vigilant superintendence has been
• exercised by.the. -Light-house Board oyeethe
• houses, light-ships, beacons, and buoys on the North
ern and Pacific • coasts, and especial attention ,has
been directed to the restoration of those destryed
by the rebel enemies of the country. Numerous
• lights and beacons. have been re-establishedkon the
coast of the insurgent region, and the
of others will keep pace with the -progress or
the 'fleets and 'armies of the Republic. con
' fldent expectation-is indulged that along the whole
coast will soon .shine the old, unbroken chain of
lights for the.guidance of the mariner and the 'secu
rity of:commerce. ..
All of which is most respectfully submitted to the
.. Indulgent- consideration of Congress. -
S. P. CHASE,
Secretary of tip Zrea,surr•
RECEIPTS • AND EXPENDITURES
• For thafiseal year, ending June 30, 1862.
. . itEcm
total ,reCeipla, including a balance mr. hand
July 1, 1861, 0f.52257,065.80, were $583,886,247.06, as
follows
From_custoins
From lands
From inlscel. sources
From direci tax
$49,1156,391.&.. )
, 152,2U3.77
931,767.64
.1;795,331:73
From loans-- . .
For 3 Years 7.30 b0nd5.122,037,685.34
For s.2oyea rs 6 per e. b 5.13,990,600.00
For Oregon war bonds.. 1,000,700.00
For 20 years' bonds, 6 per
eent.
.at par, for $6O,-
000,000 '7 per cent5....46,303,129.17
For 2 : years' treasury
notes, under act of
. June 22, 1860,-, and
Blarch 2,1861
For 60-daytreas. notes,
. under act of March 2,
1661 • 12,696,350.00
For treasury notes,.un
der acts Fehruary 8,
-and March 2, -1861... 3,600.00
,Under loan act Febru-
'an-8, 1861
For U. S. notes, acts
July 47, and August
5. 1861, and Feb: 12,
160 00,030,000.00
For U. Statei notes,
act February 2.5, 1862. 98,620,000.00
From temporary 10an,
act Fe1).1.", 1862 66,479,324.10
From certificates of in
debtedness,acts March
1 and 17080 49,831,979.73
Front temporary loan,
in anticipation of pa
pular subscription... 44,375,000.00
Aggregatereceipts.
Balance in treasux
Total resources
• • EXP END/TU.IIES
The aggregate epeuditures were...
From which, to Whow the actual cur
rent expenditures of the Govern
ment, should be deducted the pay
.ents of - principal of the public debt
the repayment 'of temporary loans,
and substitution of United States
noilekunder acts February 23, 11%2;
for United States notes, under acts
3 illy 17 arid August 5, 1661, and Fe
. bruary 12, 15M, retired from circus lation, amounting, altogether, t0....596,096,922.09
Which leaves, ‘ . lis current expendi
tures
for the support of the 43-o- • '. •
vernment: and of the war, includ- '
*it/ the interest on the public debt, -;
in all torn's, the aggregate sum 0f....414,744,71£1.18
More full• stated, as follows :
For,the civil list V 1,40.3491.16
For pensions and In-
dlnns •'
For interest..
$37,701,801.11.
Wnr Department 394,368,407.36
Navy Department 42,674,569.69
Aggregate current expenditures.:..... $414;74404.16,,
And on ateorint ofd tthlk
40 - t, and kails; deduct
'
Old funded debt
•ItedeMption of purloin
treasury notes; act
April 10;,1646 •
Rederiiption of treasury
notes under aids prior
to ',lids ,
RedeMptiab of treasury
-'116464i under nets De.; -
eeinberi
• bar; '.1.860;i/nd'March
•;' 2,166 . 1. ... . ..
RepiiYinetiV , Of tempo
rary loan from banks,
,•• 'ilia Anticipation
' of iOpi_tlfl:l;k
• Tepa'
5 nen n nt
of - ,, temporary='
Under actS-Febetiitry.
• .'`2s . arid March 1862 6,,W,297. 8 3
Mite* act T I -
- 17;'•..1861;. retired by
SUbStitiition. 65,610 "0C •
• " . ' 0096,9.19. w
Lowing balnuee la treasury July 1,
1862, - of: -.
RECEIPTS ANT) EXPENDITURES
.E'cir the year ending Julie 30, 415634
Theleceipts .and expeuilitureo l as submitted. tot
$51,935,1204fa
14,019,034.66
65,25 - .50
529,69 - 2 3 460.60
631,628,181.25
2,257,065.8)
553,885,247.06
$570,841,700.25
3,1Cr2,955.50
13,190,324.45
43,110,000:90 !
41,374900,CP
6.70,811,700.25
13,043,60.81
583,885,241.06