Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1848-02-25

amount must nave Dctu, uOWcNcft very IN.
considerable, aud never saw one Of them.
But they have been made the foundation Of
the two war loans Of July, 1916, and Janu-
airy, lSi7, in which the issuing Of stock is
but a supplementary incident.
The amount authorized, by the Act OF
22d July, 1916, is ten millions aud that by
the Act Of 2sth January, 1877, twenly.three
millions, together thiriy.three millions, in.
GLIDING both the notes and stock, which
may be issued by virtue Of said acts.
The six per cent. stock OF the United
States is now below par and the Secretary
OF the Treasury sees clearly, that direct
loan, for which such stock would be issued,
could not in all probability be effected at
par. He thinks it may be done by substi-
tuting Treasury Notes for stock. But do
not see in what manner he eau attain his
object. II is true that Treasury Notes are
sold now at higher price than six per cent.
stock. To what cause is this owing
Not certainly on account Of their con-
vertibility into stock nor because there is
general demand for short investments
which is impossible. while the best secured
paper, bearing an interest Of IL per cent
year. may be purchased at par. The only
cause Of the market price Of the Treasury
Notes being higher than that of the six per
cent. stock is, because they are by law re-
ceived al par. in payment Of Custom House
duties and of any deb, due to Government.
The necessary consequence is that, Us long
as they are ever so little below par, they
must continue to form the greater part Of
the receipts Of the Treasury The Secre-
iary has a right 10 reissue them; he can
compel no one 10 receive them but If he
has nothing else to give, will not the dis
bursting officer, the Paymaster General, the
Quar,ermaster General, &c. be obliged to
take theml and would not deprecated
paper currency be thus forced on the coun-
iryi II, on the contrary the Secretary
thinks himself bound, as he is in fact by the
law. 10 pay all the expenses Of the Govern.
ment in specie, aud he receives but u very
small portion of the revenue in coin, he
must purchase the specie and as he has
nothing to pay il with but his Treasury
Notes, he must sell these at what price they
will fetch. Such is the state Of things at
present; aud he asks 10 be allowed to make,
in addition TO the Notes which he has a
right to reissue, a new issue Of notes to an
amount equal to the loan he may want. Ii
is seleevident. that, il he thus increases the
amount Of the notes, be il fifty or one hun
dred per cent. there will be a much greater
amount than is wanted for the object to
which they are now applied, that they will
necessarily dePreeistc, aud that the Score.
tary would be obliged 10 sell his notes Al
a still lower rate, in order to pay for the
specie wanted. This he would have nc
riuht 10 do. If forbidden to borrow at high
or rate than six per cent. and this is it
truth that which cannot be avoided Th,
Government of the United States must sub
init to the general Law, according TO which
il must, for the money which il is obliged
TO borrow, pay dearer and dearer every year
as the war continues. II is sn unavoidable,
consequence, which no legerdemain car
prevent or conceal.
Moreover, there is incompatibility be
tween the receiving Treasury Notes, or an.
other species Of paper not always aud i'm
madalely convertible into specie, and tn
obligation imposed by the Sub-Treasur
Act, to discharge all the public expenses il
specie. Il is clear that, in order to comp
with that provision, il is necessary that III
receipts should likewise be collected il
specie.
Il is true, that the Sub-Treasury Act
an experiment. which no one State has eve
attempted 10 Try for itself But wish thi
il may have fair play; for ! am clearly {
opinion, that it is equally necessary fc
Government, for the public a, large, and "a
the Banks themselves, that they should ne'
err be permitted to use the public money
for the purpose Of Increasing their discount
, Since both the Sub Treasury Act aud ii
obligation to receive Treasury Notes in pa
, menl Of debts due to tie United State
cannot subsist together, either the one {
, the other should be repealed. This cann'
, be done. with respect to the notes alreat
issued and outstanding, since |; is priv
3 lege already granted, condition which Il
f United States are bound TO fulfil. But I
!. though the Secretary Of the Treasury has
right to reissue an amounted Notes, ecu
0 to that which has heen paid in for dutie
e or other debts, he is under no obligation
C do it, The fac, is that, in order to exit
/. cate the Treasury from the difficulties
sulting from the incompatibilily alluded
o il is necessary, instead Of extending
' contract the amount Of notes in circulate
l. On the other hand, il the Snb-Treasn
e Act was repealed, modified or suspendt
e nothing would be gained by il. GoseI
IS ment is bound by the constitutional prov
D. ion which enacts, that nothing shall bt
k legal tender but gold or silver II cam
ID be permitted 10 substitute, in payment
&c lis own debts. or for defraying current
ID penses, any species Of paper, the value
e. which is not equal to specie, or IN oil
III words, which cannot be insiantaneou
n converted at par into specie. II, therein
= the Sub-Treasury Act was repealed, mo
~ fed or suspended, The necessary con
he quence would be, that Government wo
Mt be compelled to receive in payment and
;h pay in the notes Of solvent Banks
Al Treasury Mates never can become c
e. rency, unless they be vested with that at
nd butte. This could not be effected otherw
ng than by converting the Treasury int
IS, bank issuing notes. bearing no interest,
la bound to pay them OH demand in gold
IT. silver. Ii is hoped that such plan will
mt find a single advocate.
nd The attempt 10 borrow al lower
lat by substituting Treasury Notes for ste
Al n