The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-12-13

notes Of the denomination of fifty dollars with interest at
tn rate of one mill per upon one hundred dollars
and exercise the authority given by the eighth section
OF the act Of 1887 by purchasing these notes at par when
treasury in the city Of New York where two.thirs Of
and means collected and deposited and to
give notice of such determination by upon
the 1t doubted whether the bonds required by
law be given by collectors any other officers would
extend responsibility for funds that might be placed in
their hands to make such purchases and hence was
deemed mpracticabe to mploy them for that purpose If
il had otherwise been considered expeaient
The notes made pay able in year, rather in con.
formty the construction heretofore given to the act of
1887 than from conviction OF its being required by that
them from running bearing interest longer than
year. is silent respecting any shorter PERIOD appa
rently with the view of leaving some discretion The
notice that they will be purchased is endorsed on them
distinct the body Of the notes. that if any extra
ordinary emergency should to produce any diff
Guilty in their purchase for any other reason should
be deemed expedient the endorsement may be omitted
and the notes permitted to circulate without interest or
they may altered to specify rate They not only
recey able all public Dues but may be exchanged for
specie at par the cusomhouses and land Offices to the
ans OF nes hn 0 % ans
dollars of the new notes have been issued
The effort had been made by former Secretary to sub
sue with nominal rates Of interest and also notes
with the low rate of two per cent, but had not sue
ceedcd consequence Of their not being convertible into
demand For as the present value OF post note
is diminished in exact proportion the time has to run
before maturity discount upon only be prevented
by allowing interest equivalent to that time The ques.
ton of convertiby therefore, in truth question
whether interest should should not be saved as the
tolerated
No apprehension was or is entertained of the perfect
ability Of the Department to purchase all that may ne pre-
scented for the purpose There is and always must be
surplus in the Treasury beyound the immediate calls upon
it. This with revenue more than three times the
Of the notes constantly accrung, would be adc
its place could always be supplied with other notes
with without interest circumstances required with
which portion of the public expenditures could be made
In the possible event Of large accumulation Treasury
bearing auch interest as would ensure loans not eN
ceeding the prescribed rate or the authority to
issue stock would either of them be sufficient to provide
| the necessary funds to meet such accumulation.
The exirences of the Treasury demanded that the eff
fort should be made to relieve from such weight OF in
teres especially az would not preclude return TO the
system which invites banks to hoard Treasury notes b
allowing them interest while they borrow OF the
community without interest to the extent OF their crcu
lation
money the credit of The United States" in Its terms
comprehends every form Of loan which Congress may
think proper to prescribe and not easy to perceive
how this express and unqualified grant power be H.
mtcd curtaed Certain is that the most distinguish
ed among those who contend for strict construction OF
Constitution have given their sanction the existence
this power In the form Of bills OF credit or Treasury
Well founded objections exist to borrowing without an
urgent necessity in the form either of permanent loans
those OF temporary character That necessity must
also influence the terms and conditions of either mode
The former by putting of the day Of payment to "a more
convenient season. removes the most eecual check to
prodigaity and offers temptation of difficult resistance
has accordingly proved hcsbane of all governments
The policy of the treasury note system seems to have
been devised guard against this evil by bringing the
day of payment close upon that of expenditure and it
would that the immediate the liability to pay
the more would that policy be promoted posPonement
even for year invites prouson and check be
efectua instant responsibility Every loan thus
made directly from the people, in not in con-
sideraon othe interest agreed to be paid by the govern
ment but literally and solely upon 1.-The credit OF the Uni
| ted States"
vernment in promoting convenience security ana econ
omy in the public disbursements, they should, in conse-
quence of their uniform value be kept in circulation to
any considerable extent by felowczens for their
convenience in maintaining internal trade and keep
ing down the fluctuations OF exchange between dnerent
parts of the country arising from dsordered currency,
not perceived how such result affords ground loI
objection system constitutional in itself and adopted
for legitimate and constitutional objects IL submitted
that responsible only for the use which
makes of the power to incur debt and not Tor the use
abuse by the people OF evidences OF that DEBT whh
it may issue Their application by the community to the
purpose mentioned is proof that they are wanted for
that purpose and that the credit of the United States"
has taken the place of local. chartered State credit
Those who object to such consequence in the present
state of our finances which require loan in some FORM
must however choose between the evils Of that result
they evils and the perls Of permanent national debt
which either be created directly, must follow at
remote period, and take up securities which may be
issued in the form of proracted promise to pay For in
this as in other cases, not allowed the use Of
entirely free from objection but compelled to
select between different modes that which is the least OBJ
| jectionable.
At all events the small amount of convertible Treasury
notes that may be issued under existing laws ess than
onehrd of the annual receipts and less than oneourth
of the annual public eXpcnditure) cannot create any
very dangerous paper currency" And it is supposed
that the objections reerrdto not much to the issue
i
founded rather upon apprehension that these notes will
be useful to the Government and so beneficial to the
people that their issue may hereafter be carried to excess
is fair question whether the danger OF excess III this
mode of borrowing money equal that arising from
loans upon deferred times OF payment While the WIS,
dom and mness OF Congress ought not to be distuscd
either worthy ofobservation that the mode
which requires immediate liability to pay, furnishes
guard in itself against abuse by the instant and nable
check which furnishes upon issues beyond the means Of
converting into coin.
brief synopsis of the foregoing statements and sug-
gcstiOus relation the deficiency meet the
ordinary of Government during the current and
loan which becomes due LIST January 1s45 its amount
| ($5,672,976 SS) may be provided for.
By raising Of lightmoney, by duty on articles now
Free particularly tea and coffee and by the other means
suggested in this report addition may be made to the
revenue of between four and five millions Of dollars Es.
tmang this at four millions five hundred thousand dol
lars there will be left to be provided for four millions five
hundred thousand dollars and the outstanding Treasury
notes. amounting to little more than four millions SIN
hundred thousand dollars. These items, amounting
in the whole to nine millions one hundred thousand dol.
lars might be supplied by continuation Of the act OF
March 1913 providing for the reissue of Treasury notes
with contingent authority to fund into stock which
limited to the first of July, 1874 and by extending SO
to include the anticipated deficiency OF four millions
five hundred thousand dollars such portion OF it as 1t
may be found expedcn to meet in this manner BY this
an increase of the permanent public debt may be avoided
and any reduction expenditures increase Of revenue
thnt may take place, will enable the Department to re-
for other advisable that this portion Of our debt
should be kept in such condition il may be redeem.
erest the Treasury notes to be issued be abrogate
should the authority purchase them presentation be
withheld which would be equivalent to direction that
interest shall be paid all events, then will be
add the estimated deficiency for the service Of the
fiscal year least four hundred and fifty thousand
| dollars.
There subjects to which it seems duty to in.
vte the attention Of Congress before closing this report
To prevent illegal importatons our southwestern
frontier well afford the proper facilities to traders
who may wish to bring merchandise in that direction
would be advisable that port OF entry should be esta
shcd in that quarter. The town of Independence, in
| Missouri has been suggested good position.
1 he. thna xietin N
cannot be made from the decision of a Circuit Court in
cases involving the amount of duty that be levied
imported merchandise, because the amount in conrover
sy in the pac ular exceeds the prescribed lin
H. The courtesy Of the judges sometimes induces them
disagree form order to obtain the opinion of the
Supreme Court But it frequently happens that only
Judge holds the court and would that the govern
ment ought to be indebted to the courtesy Of any o
Ger for the opportunity Of correcting what may be
L I.nns Of liz laws