Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1846-02-21
S63,OOO,OO0


And by loans Observation-Disclosures. $4,000, 600
S63, 1000, 600
The estimate Of S5OO00OO for the interest Of the loans
the second year after the founded the supposon
that the direct and other internal taxes duties laid the first
year. together with the existing revenue, and twenty-five mil
lions borrowed by loans Treasury notes, will be sufficient
to defay the expense incurred prior and during the first
year of the The deficiency in the regular force for that
year be supplied by large draughts of militia which will
be expensive at least the regular soldiers whose places
they will supply.
But appears very doubtful whether such large
forty five millions be raised annually by loans and Treas
ury notes. II necessary, in the first place. to correct
opinions respecting the extent to which these notes
may be kept circulation and the legitimate objects which
they may be applied.
The Treasury were first introduced my sugges
ton, which discovery, since they
transcript of the Exchequcr bills Of Great Britain As these
have been resortod for than century, and have
become there portion of the regular currency the extent TO
which they may be used for other purposes is well ascertain
ed, and bears always certain ratio the wealth of the
try and to the Of the State. Whether issued to the
bank anticipation of the revenue, used by capitalists
for short Investments the gross amount has rarely exceeded
twenty millions sterling Judging from past experience, the
amount which may in time Of be kept in circulation
par in the United States falls far short Of propoonate
The Treasury notes issued during the years 1912 and
1919 amounted to 49, $780, O00 Of which there had been
paid including interest," ,24O,0 0O The amount in actual
circulation less than five millions, and thus far they had
been kept par.
All the demands from the other Deparents had been met
blythe Treasury, and there hut few if any outstanding
Nothing had yet been collected account Of the
direct tax and Of he internal duties Besides the FIVE millions
years 1912 ard 1915 $685. 74o GOD on account Of war loans,
and 600 from the customs The BALANCE in the
Treasury announced 70 S. 6,s42 on the s!s December
|7si3. ..
+, Te Treasury issued ddfing the year 1914 amount,
I'd near eight milo and there had been paid off dur
Ing the year, including interest," ST. 100 OOO making
addition Of about FIVE millions and half and the total
amount outstanding about ten millions and half The re-
cep during that year Of the direct tax and inter-
nal duties amotnted to So, s77,0Q0 from war loans to
,0sO OC0 and from ionly S. oOO 0OO Before
the end Of the year government was unable to pay the notes
which had become due, II perfectly clear that new
notes could not be issued in lieu Of those which had become
DUE twas because they had fallen below par and therefore
that the amount outstanding greater than the demand for
them There but one remedy, and il very simple
reduction In that amount must be made by funding their
marked price quantity sufficient to establish the equ
~
meanwhile suspended specie payments period Of anarchy
in the currency OF the consequence and last
ed till those payments were resumed in 1917
The result Of the suspension specie payments in England
was that the notes Of the Bank Of England became in fac
legal tender and the standard Of the currency All the other
banks Obliged to keep their ON par with
those Of that bank and all that necessary in order to
vent depreciation to regulate the the Bank of
England to keep them at par with gold and silver Ne
verheess the clamor for currency prevailed the bank
found very convenient and profitable issue notes which il
obliged to pay, and these finally deprecated twenty
five per But in the United States the banks were u
der other control than that Of the several States respective
y The consequence was that had fifty and more species
ofoca curenccs, varying in value in the different States or
districts Of county and from time TO time in the same district
The banks might with facility have resumed specie payments
during the first year of peace The eos of the Secretary of
the Treasury to induce them TO proved unsuccessful
and the resumption did take place till after new Bank
Of the United Stntss had been organized sgn-r a
We have had general suspensions Of specie payments
the last At time Of profound peace. then behind the
SCENES had some agency in restoring specie payments and
speak that subject with knowledge and confidence
The obstacles partly from the banks principally from
the debtor interest," which exces sympathy and peponderaes
throughout the United States The isnamed Bank Of the
United States and the banks under its influence were il Is
true, formidable impeachment and this obstacle is now fort
naey removed. Still the continuance Of specie paymens
stands whenever crisis occurs precaos basis
and if any important place. especially New York. happened
to break all the banks throughout the United States would
nsantsneousy follow the example This is the most m
danger which the Treasury Of the United States will
be exposed in time Of war, and what effect the ubreasury
system may produce in that respect remains be tested by
experience.
II impossible to draw any inference respecting Treasury
notes from that which took place in the United States during
the confused state Of the currency the years s and 1916
The taxes paid every where with the cheapest local
rencyn Treasury notes only in the places where specie pay
mcnts had been continued where the bank were
nearly at par The depreciation Of the Treasury was
rested by the fact that they might all times c converted INTO
SIX per cent stock but that case, they
asmaed to direct loan. They become general
currency account Of their varying value long as they
bear interest," and made payable future day In
order to give hem that character they should that Of
bank notes. bearing interest and payable demand II
does not require the g Of prophecy to be able that
the wants Of Government increased, such would de-
generate into paper money, to tho utter ruin Of the public
credit.