New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1860-12-05

~
the operations Of the 6oyerrnen., and preserve the
public credit,
Already las nc 1leasusy been seriously affected by
these csuss. Toe receipts from customs for the last
few days have greatly fallen off, and the limited amount
received is ceoscd each day OF increased proper
tion Of 1reTsuy notes. not yet due The indications
are that pch wn at least, for the present, continue
20 he the rot only but in consequence of tue
iailure Of ddels for the late loan TO comply with the
terms Of their bid portion Of The ordinary revenues
has lcen WitbdlaWE from the ordinary of
penGiuIe TO meet tie payment Of Treasury notes past
due, End the interest thereon. This condition of things
den audt tie Immaculate attention of Congress- and ls
cuiy action viii he required TO enable tic Department
10 carry on the operations Of the Government, and at
tho sauc time preserve unmpaiIed the public credit.
The permanent public debt on June 80, 1850, wac
$i5,W9903 0S and the outstanding treasury notes at
that date amounted 10 $40 go 500 will appear by
reference to the table No. 3, hereto appended.
BY the act of June -, 1860 provision was made for
the redemption Of treasury notes and payment of the
interest thereon This act provided for the issuing of
stock for an amount not exceeding 81, GJO,O00, at
rate OF interest mot exceeding Fix per centum per
annum, and to be reimbursed within period not be-
yOnd twerty years and not ess than ten years." II
was the policy Of the department TO negotiate this loan
for such amounts and at such times a. would place the
money Ill the Treasury 10 meet these treasury notes as
they should fall due. To have negotiated The whole
amount thereof any portion in advance of the notes
falling due, would have subjected the Government TO
the unnecessary payment OF interest during the time
the money would have remained in the vaults of the
Treasury uncalled for There was 10 power in the
department to call in the treasury notes until they be-
came due. Besides the Withdrawal Of such an amount
Of specie from the public would have been attended
with the most injurious effects upon the financial ope-
Iaons Of the country For these reasons, no negoia-
ton Of any portion of the loan attempted until the
Sth day Of September, 1860, when proposals. nvi
ted for ten millions Of the loan, which was ample to
meet all the treasury notes that would fall due before
January !, 1861. Therate Of interest was fixed at FIVE
per centum per annum, under the conviction that the
loan could be readily negotiated at that rate, for at
that time the five per cent stock of the United States
Was selling in tie market at premium of three per
cent Eeresult realized this just expectation, and the
whole amount offered taken either az par small
premium Before, however, the time had arrived for
payment the part Of the bidders the financial CRISIS
TO which have already referred came. Some of the
bidders promptly complied with their proposals, and
Others were wiling TO do so, if required By the de-
Iartment though il would be at considerable sacr-
hCe. Under these circumstances additional term of
thirty days given TO all bidders who would deposit
onehaf of tie amount of their bids within the time
prescribed. Most Of the bidders awaited
themselves of this extension, and made their deposits
on or before the 22d November, 1860. A
portion however failed to do so, and to them the add
ional thirty days has been offered, condition that
they would increase tleir forfeit deposit OF one percent
10 i've per cent, To this proposition response has
yet been received The amount Of the loan awarded
to this last class of bidders is 81 099,0OO.
The question presents itself, what action shall be
aiken in reference to the stock which may be thus for
eited! There is power III the Department as the
law stands, TO meet the case II is recommended
hat Congress should Immediately authorize the De-
partmeut to dispose of this stock upon the best possible
erms, holding the defaung bidders responsible for the
difference between their bids and the amount for which
lie stock be negotiated. The necessities of
he Treasury demand prompt action on this subject.
30 oni5 se the treasury notes past due rapidly coming
for REDEMPTION but Gs already stated, those not due
IRE being paid in for customs, thereby Withdrawing
rom the regular operations Of the Government its
principal source Of revenue,
m. l.. f's{in 40 he
oan authorized by the act Of June o. $780, requiredto
reported TO Congress by the third section Of the act
ire contained in the statement marked No. iS.
To meet the remaining outstanding treasury notes
md interest thereon there is yet be negotiated eleven
Millions of the stock authorized by the act of June %,
$50. The statement Just made Of the difficulties at
ending the payment for the stock already sold In con-
lection with the fact that capitalists In the present con-
ton of the country seem unwilling 10 invest in
United States stock al par, renders II almost certain
hat this remaining eleven millions cannot be
otisted upon terms acceptable TO the Governments.
he condition Of the Treasury Is such that no serious
clay can be INDUCED. recommend, therefore, re-
zeal of so much of the act OF June - 1867 author
yes the issuing Of this additional eleven millions of
took and that authority be given for the Issuing OF
reasuTy notes the amount TO be negotiated az
uch rates will command the confidence OF the eoun-
~ 10 create that confidence, / recommend that the
public lands be Internationally pledged for the ulti
nate redemption of all the treasury notes which il may
become necessary to issue. make this recommended
ion Of substituting treasury notes for stock the more
eadly tom the conviction that there should Away
Exist in the Department power TO Issue treasury noGe
for limited amount under the direction Of the Presi
lent 10 meet unforeseen contingencies. 1t Is powe
which can never be abused, the amount realized
from such source can only be used to meet lawful de-
nauds upon the Treasury No Secretary Of the Treas
NV or President would exercise II, except COM
ped 10 do so by the exigences of the public service
On the other hand ii would enable the Government TO
meet without embarrassment those sudden reyulsions
to which the country is always liable, ana Whcn can
not always be anticipated.
have already stated that provision should be made
at once TO relieve the Treasury from Its present embar
produced by the causes referred to- 10 DO
this Congress should authorize the Issuing OF an adoi
tonal amount of treasury notes not less than ten mil
lions of dollars With these meaus, the Department
will be enabled to meet all lawful demands upon 1t for
the present The extent Of the financial Crisis through
which the country is now passing cannot now be de-
termned and until it is better known, no policy can
be recommended Of permanent character.
No change in the revenue laws can be made In time
TO meet these difficulties; and If 1t could, the same
causes would poduce the same results under any LAVE
that might be passed. If Congress, however, should
determine upon such a polcy-either with view TO
meet existing difficulties or for the purpose providing
for the payment of any portion OF the pubhc deDt-I
can onv refer Them for the views OF the Department.
10 nv former reports on that subject. 800,
TIE attention of Congress is again called to the bill
for the revision and consolidation of the revenue laws
urepared by the Department and submitted az the st
session of the last Congress, III compliance win reso-
luton of the House of Representatives. The import,
ance of adopting the change and contained
in this measure cannot be too strongly urged upon he
consideration Of Congress- They would facilitate the
operations ofthe Department reconcile conflicting pro-
Visions OF law and greatly reduce the expenditure In
this branch Of the public service Az stated IN form
er report the Department has already reduced the eI-
nense of collecting the revenue from customs and,
With the aid which the passage Of this law would
afford still further and greater reductions could be
made with benefit TO the public service.
T. .; oonnaof;o tho attention Of Congress is called