The New era. [volume] ([Portsmouth, Va.]) 1845-1847, 1847-01-19
From the Philadelphia Ledge
TREASURY NOTES.


The Committee of WAYS and Means have re-
ported bill for the Issue of twenty three millior
Oh aoars IN treasury mites, hearing an annual in
'eres oil SIX per cent. the notes to he fun led if
necessary This is precisely the mode of raising
money which tee recommended. when the Sec,e-
'ary oi me Treasury was endeavoring to negotiate
loan IN New York and as the subject is now
oeloie Congress, we say now, as we said ihe0.
that, 1t is the best mode Of borrowing money II
is the best for several reasons One is that it is
the most expeduns mode of obtaining money
another, II is The must economical mode another
1t creates money by the very process of borrow
ing.
Ii is the most expeditions So soon as the au
lhorlty to Issue such notes is granted they can be
issued IN any quantity needed within the aulhori-
iy, and simultaneously wherever money is needed
| TOR the public service. IL navy agents require
money at all the dock yards, commissaries ia all
the markets. quarlermasers and paymaslers at all
the military posts, within The country treasury
notes can be supplied TO all at once Like cold
and silver. they can circulate freely, without the
expenses OF transportation required for gold and
silver. And unlike bank notes. they are founded
on the credit OF The country and will therefore he
pnncinally redeemed But to raise money by loan.
to issue certificates of stock to receive coin for
them. to transport that coin To places of dsburse
ment. requires time and expense.
1t is the most economical mode IF loan of
ten millions be needed for the service of a wear
the whole must be negotiated at once, the cer,i6
Gates OF stock must be issued so soon as the money
is ready. and must bear interest from the day Of
issue. Yet the money is not needed by the uov
eminent. till the days of disbursement arrive and
therefore portion, or even much of it, NAV moi he
required before the close of the year Yet DURING
the whole period, must the government, pay inter.
est for the whole sum. But treasury notes are
not issued till they are wanted and hear no inter
est till they issued. Thus while on ceuif
cafes nf stock, The government must paw year's
interest on len millions, while il has received.
during that period. an average of only FIVE mil
lions, yet on treasury notes, it will pay interest
only according TO The issue, or an average of six
per cent on only five millions. With loan. the
government pays interest before il uses the prin-
cipal. with treasury notes, the payment OF in
terest and the use The principal are mutually
dependent and simultaneous.
IL creates money by The process of BORROWING
The government, in issuing treasury notes, Dor.
rotrs, Tor 1t ncnrs an obligation TO redeem these
notes in coin. But in the very act of this bor-
rowing, creates money by the issue Of the notes
But we shall be told that this is banking, the
issue OF paper money, the very thing which the
Ledger has always opposed. Bat let us analyze
ms objection. IL the government borrow On Ger
'lhca'es ut stock, and take bank notes for money,
The paper of State banks is augmented by The
amount raised by The loan; for the lenders are
either banks or dep0sitors in banks. and in either
case, Furnish the sum required in bank paper n
the government require coin, then the lenders.
being depostors In State banks, will draw their
deposiIorsin coin; and lhebanks, to meet this draft
must curtaI discounts" and thus press upon
trade Hence loan To The government, furnish.
ed IN coin, always " creates a pressure in The
money market" But if The government issue
treasury notes. 10 circulate money, the State
banks are not disturbed. ard trade is moi distress
ed, or The banks do not augment their issues and
trade is not inflated. But will not trade he inHa
ted by this addition To the circulation? We an.
swer that, if it be, the initiation cannmi he followed
like that of banks, by sudden collapse. for the
treasury mites will be redeemed gradually. and
therefore gradually drawn from circulation. If
'hen treasury no'es are paper money. they are ex-
emPt from the evils Of bank paper
Treasury notes, circulating as money are hotter
than certificates of stock which do moi 50 circu
late Ihey can pass by delivery, for their valne
!" inc market, which, al par, is the principal
aho interest due; while certificates Of stuck must
De sNd Oy special agreement and the sal or change
OF ownership recorded. Loans require long cred
IT. as capitalists require safe and permanent invest
mems and therefore The government cannut paw
loans before the stipulated day Of payment, with.
out paying for the privilege, and Thus must paw
interest Tor money which it DIES not need But
u can redeem treasury notes at its pleasure -
linen they are convenient for capitalists To hoard
as they are safer than deposits in banks and earn
interest I'll paid II is therefore advisable under
all circumstances that the government issue trea
suTy notes, in sums Of fifty and hundred dollars.
bearing interest at six per cent, payable semi
annually, to be redeemed at its pleasure
PUBLIC PRINTING.