The enquirer. [volume] (Richmond, Va.) 1804-1815, 1814-12-06

IN the letter which threw = censure on the
committee Of WAYS and Means, or on any
part Of this House. He saw No general reason
for the reference, and he could not see the
force of the particular reason which the gen
tleman had assigned.
The question was then taken on reference,
and carried (; and also on printing and was
likewise carried.
The following are the letters thus ordered
to BE- printed:
Washington,
Mo-. 27, 1914,
SIR,
The Committee of the house Of Re
personalities, to- which the bank bill was re-
committed on Friday last, hare directed me TO
request you TO communicate your opinion
IN relation to the effect which considerable
issue of treasury notes Go which should be at
tached the quality Of being receivable in sub
scription to the bank) might have upon the
credit of the government aud particularly up
ca the prospects OF a loan for 1913.
AS the bill, as It was referred to the COM
mittee. provides FOR the subscription Of ~ mil
lions of treasury notes to form with six MILL
ons of specie the capital of the bank, any in
formation which you may think proper to giSe
either Ill relation TO the practicability Of get
ting them into circul alton without depreciati-
Oh, or in regard to their operation on any
part ofour fiscal system afterwards, will be
very acceptable.
l am, sir, very respectfully, your obedient
servant,
LoWNDEs.
20 The Hon
IRE Secretary IF tie 7rtcsary.
Treasury Crtartment.
y oU. 81, 1914.
4 SIR,
have the honor 20 acknowledge the
receipt OF your letter, requesting for COM
!nirtce ofthe House of Representatives all o.
pinion upon the following enquiries:
4 The effect which considerable Issue OF
treasury notes, with the qualify OF being
receivable in subscriptions to a National
Bank. viii have upon the credit of the go
vernnent; and particularly upon the pros
pests of a loan for 1857
Z. The pract;cability CT getting forty-fcar
nih1ns OF treasury notes CORNING with
SIX millions of specie, the capital for a Ma
rioaal Bank) into circulation, without de-
Preciation.
The enquiries OF the committee cannot be
Satisfactorily answered in the abstract; but
must be cons,deted in Connection with the
state of our finances, and the state of the pub
lie credit.
When arrived at Washington, the Trea-
snry was suffering under every Kind of en-
bairassGnent. Tie dement's upon it were
great in amount, while the means to satisfy
them were comparatively small ;. precarious
II. the collection, and difficult III the applica-
ton. The demands consisted of dividends
u?on old and new funded debt, Of treasury
notes, and OF legislative appropriations for
the army, the navy and the current SERVICE
Ell urgent and important The means con-
81 Is 6 OF the Ssn noossf f an anh
sed to lend, and to issue treasury notes which
nj .accif ri.c
II distress OF co.nmissaries. quarter masters
and navy agents, acting as it were officially,
seemed willing to accept Second, Of the
amount OF bank credits scattered throughout
the u ,. and principally in the southern and
western banks, which had been rendered in q
degree useless, by the stoppage of payments
in specie, and the consequent impract;cability
os transferring the public funds from one place
% meet the public engagements in another
place: And, Third, OF the c,rrest s,pnIv
CT money from the impnsts f;ou Internal du-
ties and from tee sales of public I9ad, which
ceased to be a foundation Of any rational es-
innate, or reserve, to provide even for the
dividends on the funded debt, when It was
found that the Treasury Notes (only rcouir
ing indeed, cash payment at tue stance of
. Year, to Whonsocver they were issued at
the treasury, AMI almost as soon as they were
issued, reached the hands Of the collectors.
in payments e debts. duties and taxes. thus
disappointing and defeating the only remain
ing expectation Of productive reverue.
Under these circumstances (Which had
the honor to Communicate to the Committee
OF Ways and Means it became the duty of
this department to cndeavor to remove the
immediate pressure from the Treasury TO en-
deavor 10 restore the public credit ; and 70
endesvor to provide for the expenses of the
ensuing year. The only measures that oc
Cured TO my mird, for the accomplishment rf
such important objects, have been presented
TO the view Of Congress. The act authorjz
ing the receipt of treasury notes in payment
of subscriptions to public loan, was passed.
j fear, too late tn answer the purpose tor
wFicl, 1t was designed. II promises, at this
TING little relief either as an Instrument 10
raise money, or to absorb the claims for trea
Try aoteS. which are daily becoming due
From this cause, and from other Obvious eau
seS, the dividend on the funded debt has not
been puuctually paid large amount of
treasury notes has already been d,shonored
and,te hope OF preventing further injury and
reproach, il transacting the business Of the
treasury, is too visionary 10 afford a tnou,enl's
Consolation.
The actual condition of tie Treasury thus
described, will serve to Indicate the state Of
pablic credit. Public credit depends essen
tally upon public opinion. The usual test
Of public credit is, indeed, the value of the
public debt The faculty Of borrowing mo
iley is not test OF public credit for faith