Daily national Democrat., 1861-07-28
The Way the Money is Raised

The following is an extract from the Re :
port of the Secretary of the Treasury, in re-
lation to the mode Of raising money for wer
purposes:
1t is eminently proper that the appeal for
the means of prosecuting it with energy to a
speedy and successful issue should be made,
in the first instance at least, to the people
themselves, and it is highly desirable, in or
der Chat the circle Of contribution may be
widely extended, to make the burthen press
as lightly as possible upon each Individual
contributor and if possible traRsmute the
burthen into a benefit. To attain these de-
sireble objects, the Secretary submits to
Congress the expediency of opening subscrip-
tions for national loan of not less than one
hundred millions of dollars to be issued in
the form OF Treasury notes or eXchequer
bills, bearing yearly interest of seven and
three tenths per cent, to be paid half yearly
and redeemabe at the pleasure OF the United
States after three years from date. The sum
of one hundred millions of dollars is named
as the amount for which it now seems expe-
dent to rely on a subscription of this kind.
But it is not intended to restrict loans in this
form to any precise limit short of the entire
sum which may be required in addition to
Tue sullls W NC ISdllLcu llplll OJIcI oOulCto
for all the purposes of the year. The inter
est of 1910 is suggested because it is liberal
to the subscriber convenient for calculation,
and, under existing circumstances, fair rate
for the Government. 1t is beneficial to the
whole people that loan distributed among
themselves should be made SO advantageous
to the takers as to inspire satisfaction and
hopes of profit rather than annoyance ana
fears of loss; and if the rate Of interest pro-
posed be somewhat higher than that allowed
in ordinaFy times, it will not be grudged to
the subscribers when it is remembered that
interest on the Loan will go into chanaels of
home circulation, and is to reward thoee who
come forward in the hour Of peril to place
heir means at The disposal Of their country.
The convenience of calculation incident tO
the rate proposed is quite obvious, for the in
terest being equal to one Gent O day on fifty
dollars, it is only necessary to know the NUM-
Der of days since the date of note, or the
last payment Of interest, to determine, at .
glance. the amount due upon it.
To increase still further this facility Of cal.
culaton. it is proposed also to issue the
Treasury notes of this loan in sums of fifty,
one hundred five hundred, one thousand and
five thousand dollars, with the amount OF
interest for specified periods engraved on the
buck Ol ttCU uOlt, L ne lHCllllN iuuS stCuItu
to the holder of determining the exact
amount cf the note ard interest without any
trouble of computation, will materially en-
hance its value for ell purposes of invest
ment and payment. While the rate thus
proposed is liberal and convenient, the Sec
rstary regards it, also, as under existing
circumstances, fair and equitable to the Gov
eminent. The bonds Of the United States
bearing en- interest of six per cent, and re
deenable twenty years after date, cannot bt
disposed of at current Elarket rates, so that
the interest on the amount realized will ex-
ceed seven and three-tenths yer cent, nor j.
! there any reason to believe that Treasury
notes bearing an interest of six per cent
receivable for public dues, and convertible
into twenty years six per cent. bonds can b-
disposed of in any lnrge amounts SO that
the interest on the sum realized will fall
not much if at ALL short of the rate proposed
for the difference of interest, if any, between
such notes and those of the proposed nation
al loan The Secretary thinks the absence
of the featuFe of receivablity for public
dues 10 the latter is compensation. 70 se-
cure the widest possible circle of contribu-
ton, the Secretary proposes in addition to
the inducements Just mentioned, that the
| books be opened at the office of the Treasurer
of the United States, in Washington, at the
offices of the Assistant Treasurers and the
repositories of public moneys, at the Offices
of such Postmasters and other selected per-
sons in such cities and .Cwns as may be de-
signated; that subscriptions be received fol
fifty dollars, or any sum being the multiple
of fifty that the sums subscribed be paid il
cash, or, if the subscriber prefer, in install
ments of one-tenth on the lst and 10Th O
! oh IA al, ara ba Grct ,I
be forfeited in case OF hon-paynept of sub.
sequent instalments; that interest accrue anG
be paid as it comes due on all sums paid il
from the day Of payment, and that Treasury
notes be Issued, If required, for all payment.
except the first instalments, and for these, or
hnal payment, the Secretary cannot douL'
! that fer a loan SO beneficial and so advanta-
geous. secured both as to interest and princi.
pal by adequate provisions of reyenue, ar
appeal to the people will be answered witt
premptitude ana liberalitv. In addition tt
the sums TO be raised by national loan, the
| Secretary proposes, in case it shall be fuunC
expedient to provide the whole amount
needed in that mode, that bonds or certiti.
Gates of debt Of tie United States be issued
to lenders in this country, or in any foreign
country. rates not lower than par for sums o
FIVE hundred, one thousand and five thousand
dollars, or of one hundred, five hundred anG
one thousand pounds sterling not exceeding
in the aggregate one hundred millions o
dollars; or, if issued in the currency of Grea
Britain. not exceeding twenty million pounds
sterling
He proposes, further, that these bonds ol
certificates he made redeemable at the pleas
ure ot the Government, after a period no
exceeding thirty years, after common date
not later than the first day of January, 1862
ana bear an interest not exceeding seven pei
cent payable in London or at the Treasury
OF 'he United States, with exchange at suci
rate as VIII make the payment equal TO paw
ment In London. If the ample provision al.
ready recommended for the punctual nav.
ment of the interest and final redemntiop o
the principal be made by Congress the Sec
retary entertains very confident ,exnectatior
that it will be found practicable to neeotiat,
a very considerable part of the loan, if moi
the whole, in our own country, at favorable
rates; and that whatever part, if any, NAV
be maintained by capitalists in other coun.
tries will be easily obtained
For whatever sums may be needed to sup
ply the full amount required for the service
of the fiscal year, and as an auxiliary meas
ure already proposed, the Secretary recon-
mends that provision be made for the issue
of Treasury notes for ten or twenty dollar.
each, payable one year from date, to an
amount not exceeding in the aggregate fifty
millions of dollars. These notes should bear
interest at the ratio of 8 $500 per cent, and
be exchangeable at the will Of the holder for
Treasury notes or exchequer bills. payable
after three years, bearing 10 per cent in