Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1844-01-13
No. A.


when the system shall be adopted, and it
may as well be encountered now as any
other time. If the consequence would be,
as anticipated, an augmentation Of the rev.
enue, it could not well happen too soon.-
The temporary deficit which might be ere.
aied, could be provided for by an extension
Of the authority to borrow.
The loan of seven millions, which has
been previously mentioned, was effected
in pursuance of the act Of March Sd, lSI3.
BY that act two modes of providing for
the amount of Treasury notes then out
standing were authorized--one, by re-is-
sue of notes; the other by loan on stock
for not more than ten years. The notes
outstanding at the passage Of the act
amounted to $l1,656.3S7 As. of which
more than eight millions fell due before
the lst Of July. 1913, and the residue in
the ensuing months. The hazard of a de-
mand for money being created by any sud-
den revusion, which might be produced by
contingencies in other countries, or BIZ
causes over which we had no control,
seemed to require that an amount equal to
two.thirds of our annual revenue should
not be left in a condition to be thrown
upon the Treasury, and thus absorb the
means of carrying on the Government.
Nothing appeared to Justify the belief that
there would be such an extraordinary in
crease in our revenue for years to come as
would be necessary to meet such a demand.
1t was therefore deemed advisable TO put
beyond the reach of accident such por-
ton Of this large outstanding debt as would
relieve the Department from any apprehen-
sion Of inconvenience or danger from the
residue. The great penlyof money. which
might be temporary, also invited TO such 4
course, as at all events saving a considela-
! BILE amount of interest. The state of
things actually existing as contemplated by
the third section of the act referred to.
! a loan was accordingly made under the
! direction of the President Of the United
States of seven millions of dollars, upon a
/ ten years stock, bearing an interest of five
! per cent. per annum, payable scm-annualiv
at the rate of one hundred and one dollars
and one cent for every hundred dollars Of
stock. for nearly the whole; a small por-
ton having been taken on terms still more
| favorable. The persons to whom and the
terms on which the stock was awarded, and
the names and proposals If those whose
offers were not accepted, are given in a
statement marked Z. accompanying this
report.
BY the funds thus provided Treasury
notes bearing six per cent interest II the
amount Of seven millions have been re.
deemed. There then remained Of the cut.
standing notes $4656,3S7 IS. These notes
/ also bore an interest of six per cent, which
was considerably above the value of mo-
/ ney. 1t seemed very obvious duty 10
exercise the authority given by the frs
section of the act of lSl3--of issuing other
notes. in such form aud on such terms a,
would promote the convenience of the
Treasury and avoid the dangers and cx.
pense Of renting coin to the public agent:
for disbursement, and at the same tins
save to the country the greatest amount o
interest. The certain prospect of the con,
dition Of the Treasury, which has beer
exhibited in this report, admonished to lhi:
course, independent of all other considcra
tions. Notwithstanding all interest hac
ceased upon more than two millions of the
outstanding notes, in consequence of tie
notice given of readiness to redeem tit
whole amount, yet it was perceived that
they were not presented for redemption
but were retained by the people for the
purpose of remittance in the transaction
of their business. This fact indicated tina
the whole amount could probably be re
issued as the outstanding notes should bc
redeemed, in others of low denomination
without any, or at a nominal interest, anC
that they would be received with avidly
by the public creditors, if made convert
bic into coin on demand.
In this state of things. and for these rea
sons, it was determined, with the sanction
of the President. to issue notes of the de
nomination of fifty dollars, with interes
at the rate of one mill per annum upor
one hundred dollars, and to exercise the
authority given by the eighth section Of The
act of 1887 by purchasing these notes a
par, whenever presented for that purpose
at the repositories of the Treasury in The
city of New York. where two-thlrdS OF
our revenue and means are collected anC
deposited, and to give notice Of such de
termination by an endorsement upon thu
notes. 1t was doubted whether the bond
required by law to be be given by coilec
tors, or any other officers, would extend /,
q responsibility for funds that might b.
placed in their hands to make such pur
chascs; and hence it was deemed impracti
cable to employ them for that purpose. i
it had otherwise been considered expedicnl
The notes are made payable in one year
rather in conformity to the construction
heretofore given 10 the act of 1887 thai
from conviction of its being required b,
that act. The object of the second secliol
seems 10 be TO prevent them from runnin!