Arkansas true Democrat., 1857-11-10
TreasurY Notes.

U Unlted States revenue, WHICH ueHCleHCy Cdu oe supplied only by incurrng debt, which debt must take the form of either treasury notes or certificates of stock.
 Certain writers are in favor of the debt taking the form of treasury notes, alleging that ii go- vernment should attempt to negotiate loan in specie, it would still further embarrass commer- cia. operations.
 This is not quite clear to us. It is not by heapng up gold and silver in their vaults, that the banks will be able to resume specie pay ments. It is by making a proper adjust ment of the balances they owe to one another, and by contracting the amount of their current credits. Let them do this, and their notes will gradually rise to par value, and then there will be but little demand on them for either gold or silver.
 If the United States should negotiate a loan for, say, 20 millions, it will thereby increase the supply of gold and silver to that extent, for, whatever increases the efficient demand for any commodity, ultimately increases the supply. By such action the government would probably bring into active circulation some ten millions of gold, now boarded by private persons, and deta.u i'll the country some ten millions of Cali fornia gold that would otherwise be exported
 As the amount would be wanted iu install ments, never exceeding two millions month, such proceeding would not in the least inter- fere with any legitimate banking or commercial operation.
 As what the government received on one day, 1t would pay out on the next, the very pieces of gold used in paying in the first installments, might afterwards be used in paying ill the sub sequent ones.
 Whether 1t Is best for government to incur debt in the form of treasury notes or of certi- fcates of stock, depends ou circumstances When the deficiency is not large, and when there is good reason to believe that it will be but temporary, treasury notes are to be prefer ed. But then every precaution is 10 be used that they do not degenerate into paper money. II they do this, they will either drive specie out of circulation, or else add to 3 paper cur reucy that is already redundant.
 To prevent this evil, it is necessary that no treasury notes be issued of less denomination than fifty dollars, or, what would be better, of one hundred dollars, and that they bear all adequate interest. h. this form, treasury notes are not paper money, but commercial invest ments. They may be used occasinaly as sub- st.tuies for private bills of exchange but in this way they do no harm.
 Another point to be observed, is that the go- yernmeut does not lay itself under an obIiga- ton receive them in payment of public dues If this be not duly regarded, it may not be long before the United States will have to sus- pend specie payments. Let the rate of inter- est on treasury notes be much below the rate of interest on commercial securities, and those merchants will, instead of paying gold and sil- yer for duties, pay in treasury notes. Then the government will have no efficient revenue It will find that by all its financiering it has done nothing more than to anticipate in one month or year, the revenue due in another month or year.
 Great part of the fiscal endorsements that grew out of the War of I812-15, were owing to abuses of the treasury note system.
 Even during the war with Mexico, the svs- tenn was carried too far--so far that there was then, though not for any long tme great danger of the governments being exposed to serious embarrassment.
 The ability of a government to borrow, de- bends on the amount in which its ordinary reve- nue exceeds it's ordinary expenditure. Let this be one million dollars, aud it will pay the in tercst on stock loan of 20 millions at per cent, or oi l61a million at s per cent. But let this million be received by the government not in gold or silver, but in treasury notes. and it has no longer the means of paying the interest on either i've per cent or six per cent stocks
 Treasury notes, receivable for public daes, afford very easy way of getting over the iis- cal difficulties of one year: but, unless very cautiously used, they increase such difficulties in years to come.
 As has been said ny modern writer, Ma tions who wish to borrow may learn wisdom from the British government. It has run in debt to the amount of four thousand million dollars. It borrows on exchequer bills, or treasury notes, as we'll as stocks: but it always takes care that its exchequer bills shall be for considerable amounts, and that they shall bear such rate of interest as will leave DO induce ment to the merchants to pay them in for du- ties. It always has revenue in something distinct from it's own paper, and thus has the means of supporting its credit"
 It is thought by some, that the present deh- cency of revenue, will be but temporary. Per haps so; perhaps not All former bank revuI- sions have been followed by years of embarrass- ment: and, so long as commercial embarrass- meuts prevail so long shall we have fiscal diff cultes to encounter. If there was prospect that few months hence, the revenue would be as much in excess as it is now deficient, there would be no imprudence in issuing treasury notes, and making them receivable for public dues. But there is uo such prospect and we must allow due weight to the consideration that it is possible that year hence affairs may be worse than they are now To be silent on other points, our difficulties with the Mormons may involve us in great expenses | Perhaps, In the present condition of things the best that can be done, is to negotiate sne. cle loan, but instead of issuing certificates of stock Tor It, issue treasury notes, not receivable Tor public dues, but payable in one year after date, and, II not then piid, fundable in stock | bearing a suitable rate of intaros.
 Something like this, we judge, must be the plan government has in view, as in this way it can provide for the present without embarrass- ing the future.
 Multum In Parvo. EfrF s
 In noticing the result of the late election in Baltimore the Courier des Etats Unis, publish 1 ed in New York remarks. :. ,rhere ,r ora d aadr