Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1861-12-20

Secretary for obtaining the additional required By
It become. his dity to give SOM account n he
execution aud practical operation NJ these measures and
IN the pcriof nance Of IL he sucis drs the attention "
/ Congress 10 that part of them relating 20 loans
First. For National loan Of hundred millions of
dollars, or any larger sum, not exceeding the whole
amount authorized. In bonds treasury notes. bearing
fJO per cent interest payable three ar date aud
convertible at or before maturity into twenty years six
/ per cent bonds.
Secondly For loan Of in Europe. or in the United
States At tho discretion N the Secretary, Of hundred
millions Of dollars, payable twenty years after date and
] bearing interest not exceeding seven per cent.
fhtfdfy f1t the issue in payments TO public credit
ors ot in exchange for coin Of treasury notes payable
one year after date bearing interest Of 6j ceut
and convertible iato three years 30 bonds treasury
notes.
/ fovthiy, For the issue Of notes, payable on demand
and receivable for all public dues, to be used coin in
payments and exchanges.
The aggregate of Of the las, descriptions was
limited TO hfy millions " dollars in denominations less
/ than hity, but not less than five dollars.
further authority conferred by the act 10 issue
IRE 'sury notes Of any Of the specified denominations,
bearing six per cent interest and payable not twelve
months from date 10 an amount not exceeding twelve
/ millions Of dollars.
To provide or immediate oxigencies was the first duty
Of the Secretary aud be performed it by issuing, under
authorities conferred hv various acts for payment %
puoic creditors for advances Of cash. S 0l0 O4 66
pa treasury notes payable 30 two years, and bearing six
per cent interest aud S4 81 $50 IN treasury notes,
bearing the same Fate Of interest but payable say days
after date.
His next care was to provide for the regular and
tinuous disbursements Of the war, under the acts Of
tae July session, and with This view be carefully
iucd the various powers conferred him pared the
probabilities " the American and European markets lr
capital and considered ihe relative advantages and dis
advantages of thf several forms Of loan authorized
His reflections led him To the conclusion that the
safest, and most beneficial plan would be 10
gage the banking institutions of the three chief oommer
cal cities OF the scahuad U advance the amounts need
ed for disbursement in the form of loans for three years
730 bonds u be reimbursed far practicable, from
the proceeds similar bonds subscribed Tor by the pro-
pie through the agencies of the National Loan using
meanwhile, himself a limited extent, in aid Of these
advances the power to issue notes Of smaller denomua-
3 tons than 500, payable on demand.
Upon this plan he hoped that the capital of the bank
ing institutions and the capital OF the people might be 50
cnmbined with the credit of the government ia proper
provision Tor necessary expenditures as TO give efficiency
% administrative action, whether civil or military, and
competent support to public credit The result thus far
has fulfilled that hupe
Representative from the banking institutions of the
three cities responding 20 his invitation, met him for
consultation in New York aud after foil conference,
agreed 90 unite associates IN moneyed support 20 the
Government, and 70 subscribe a loan Of Fifty
millions Of dollars, OF which i've millions we're TO be paid
Immediately TO the Assistant Treasurer in coin, and the
residue also u coin. needed Tor disbursement The
Secretary bis part agreed 10 issue three years 73l
bonds or treasury notes. bearing date with the sub
scfipon, and OF eqla amount, 20 cause books oi sub
scupuon tn the National Loan ~ hc Immediately
opened reimburse the advances Of the banks. n,
A. pra7toAhe. tfom this national subscription ana q
deliver 10 them 73) bonds treasury notes for The
amount not thus reimbursed Il was further underetoo'
that the Secretary u the Treasury should issue limit
amount Of United states notes, payable demand, 10
aid Of the operations ~ the treasury and that the
cated Institutions, when the hfs. advance uf hty mil
4 lions should be- expended would, n practicable, max
another, aud when that should be expended still anothc
advance TO the government Of the same amount and Of
7 similar terms
The objects Of this arrangement we're Os) to place
the command Of the government the large sums imme
diately needed for the payment OF maturing treasur
notes. and for other disbursements, ordinary cd
secure 70 the people equal opportunity. with the banks
io.Plrl 2aou in the loan Sl % AVOID GomReto
in the disposal Of bonds 9TH TO facilitate and secure
further advances the government by the associates
required and (5h) TO insure y possible the nam
u payments in specie or its actual equivalents
and representatives -
All these objects we're, happily, accomplished Finy
millions of dolars Immediately advanced by the
banks The Secretary caused books Of subscription 70
be opened throughout the country and the people sub
scribed freely the loan The amounts thus subscribed
reimbursed TO the banks, and the reimbursed
+ though then covering but little more than half the
anisant iastitut3us vphen second loan
wss required 70 make second advance Of $4,000 600
Thus two oans Of $50 900 900 each have been nego-
uaed 0r three years 30 bonds, Al par The first Of
these loans negotiated the first issue Of bonds
bears date on the 18Th Of August the second on the
Isl of October, 1861.
On the 10th Of November third loan was negotiated
with the associated institutions under the authority Civ
en- 10 the Secretary TO borrow not exceeding
hundred millions, in Europe or the United states. at
rate of interest not exceeding per cent As
reasonable prospect appeared Of obtaining terms equally
advantageous hy advertisements and it manifesy
for he interest Of the government negotiate at home
rather than incur the expense and hazard n negotiation
aoroad the Secretary under the authority Of the seventh
section Of the net Of August s. 1861, arranged This third
lpau also, with hc Associates hy agreeing 90 issue 10
them fty million. Of dollars in six uer cent bonds at
rate equiyalentto par fr the bonds bearing per
cent interest authorized by the act Of July l1h This
negotiation, though less advantageous q the government
considered under the light Of simple money ransac-
ton than The two prior loans. in respects
least more II was coupled with no arrangement for
roimbursement, and entted no Immediate expense on
nf treasury beyond that nt preparing and issuing the
bonds II was coupled, Also with understanding IN
te FORM ol an option ~ the assoriacs. that after
ue utst "i January fourth advance OF MY millions
should be made the terms with the first and I
second \ practicable aud required by the Secretary
In addition % the loans thus made the Secretary has
issued United states notes, payable demand in de- /
nominations Of five. ten, and twenty dollars OF which
there IN circulation acc1rdng to the last returns
on the I'M Of November 1861, S2l lG5 22l and there
remained in the treasury the same date 50 3s5 05
The amount thus issued, fir into the cir
cua'ion Of The cpuutry may be regarded loan from
the pc pie payable on demand without interest.
4 onei capltuiaiinu will exhibit the general result:
j here were paid 20 creditors, exchanged
for c'in at par, at different dates in July
and August, six per cent. two years
y. notes 10 The amount Of sl4Ol9o34 &C
There was borrowed, az par, in the same
months; upon SIXTY days six per cent
notes. the sum Of u S77 $50 90 /
There was borrowed, at par on the 18Th Of
August up' II three years 30 bonds, is
sued ior the most part 10 subscribers to
.~ the National loan 5O,oOOOoO 90
upon like securities 5OOOoOlO 90
There was borrowed. at par, for seven per
cent, the l0th Of November upon
twenty years six per cent bonds rcduc-
ed 10 the equivalent Of seyens, including
interest 1875 47g AZ
There have cen issued and we're in crcu-
lation and on deposit with the Treasurer,
on the Both Of November, OF United
States, payable on demand 24.55l, ,325 90
Making aggregate, realized from
loans in various foms, Of s97 .2i2, 1926 90
The Secretary then that the receipts Of revenue
from duties have not, yet fulfilled the expectations in
duged the date Of his July report being less BY s25
Az 3S4 so than the estimate then made, but which
would however have been sufficient but for the largely
increased expenses Of the army and navy To meet these
increased demands large additional appropriations have
been and will be necessary.
OF these additional appropriations S47 gS5 566 6I
were authorized by of the last session. and gl43
l3O9ll rs are row asked hr making aggregate in
crease including S2l7S7033 81 for indefinite appropra-
tons and redemption Of temporary debt beyond the
Inmates " July Of S2l3 9Ji AZ 6S.
To provide the large needed for the dsburse-
ments Of the current year and the large sums which
the exgencies Of the succeeding year may require,
will necessarily engage the serious attention Sen
aiors and Representatives.
The first great object Of reflection and endeavor in the
Judgment of the Secretary, should be the reduction Of
exp ndure within the nauowesi practicable limits. Re.
irenehmen and reform among the indispensable du-
ties OF the hour. Contracts for supplies the army aud
navy, as well as for public work Of all descriptions
should be subjected 10 stnct supeuision and the
tractors 10 rigorous responsibility. All unnecessary Of
hees should be abolished and salaries aud pay should
be materially reduced In these ways the burdens Of the
people, imposed by the war may be sensiby lightened
he aaNtn lhaa Hna I.I l.