The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1861-12-20
VOL. XIII.-NO. 81
THE NATIONAL FINANCES.
Report Of the Secretary Of the
Treasury.
WHAT THE WAR COSTS.
Retrenchment and Economy Proposed.
PROPERTY OF REBELS TO PAY WAR
EXPENSES.
Credit Circulation of Treasury notes.

Credit Circulation of Treasury Notes.
The Secretary of the Treasury, in obedi-
ence to law, submits the following report
to Congress
The general principles by which, as the
Secretary conceives, the administration
of the public finances should be regulated,
with view to insure the desirable results
of efficiency, economy and general prosper
ity, were set forth, with as much clearness
and plainness as he lis capable of, in his
report made to Congress on the 4th day OF
July last.
In that report, also, the Secretary sub
mitted to the consideration of the legisla-
ture the measures, by which, in his opinion,
the pecuniary means necessary to the
speedy and effectual suppression Of the
gigantic rebellion set on foot by criminal
conspiracy against the Government and
people of the United States, might be
most certainly and most economically OBJ
tanned.
The estimates of the several departments
then laid before Congress by the Secretary
contemplated an aggregate expenditure,
QUTlUU lIle Usual yCdI w Cuo Oh tuO oOtu
of June, 1862, of S31S,5l9,5Sl 81.
To provide this sum, the Secretary prod
posed such notifications of the tariff an
such internal taxes as would, in his judg-
ment, produce the sum of eighty millions of
dollars, and such loans, IN various forms,
not exceeding in their aggregate two
hundred and fifty millions of dollars, as
would Weld the required residue.
Without adopting all his recommends
tons in regard to customs and internal
taxes, Congress made such provision for
both as was deemed necessary to secure
the sum proposed to be derived from these
sources, and authorized loans, in the mode
and to the extent proposed by the. Secreta>
ry, for obtaining the additional sum re-
quired by the estimate.
THE LOAN ACTS.
1t now becomes his duty to give some ac-
count of the execution and practical opera
ton of these measures and in the perform
ance of it he solicits, first, the attention of
Congress to that part of them relative to
loans.
The acts authorizing loans provided:
First-For a national loan of one hum
dred millions of dollars, or any larger sum,
not exceeding the whole amount authorized,
in bonds or Treasury notes, bearing 7.30
per cent. interest. payable three years after
date, and convertible at or before maturity
into twenty years six per cent. bonds.
Secondty-For loan in Europe or in the
United States, at the discretion of the Sec
rotary, of one hundred millions of dollars
payable twenty years after date, and bear
ing interest not exceeding seven per cent.
Ihudly-For the issue, in payments to
public creditors, or in exchange for coin, of
Treasury notes payable one year after date,
convertible into the three years 730 bonds
or Treasury notes.
Fou,thly-For the issue of notes, payable
on demand and receivable for all public
dues, to be used as coin in payments and
exchanges.
The aggregate Of notes of the two last
descriptions was limited to fifty millions OF
dollars, in denominations less than fifty, but
not less than FIVE dollars.
A further authority was conferred by the
act to issue Treasury notes of any of the
specified denominations, bearing six per cent.
interest and payable not over twelve months
from date, to an amount not exceeding
twenty millions of dollars
HOW THE IMMEDIATE EXIGENCIES WERE PRO-
vIDED FOR.
To provide for immediate exigencies was
the first duty of the Secretary, and he per-
formed it by issuing, under authorities con-
ferred by various acts, for payment to pub
lie creditors or for advances of cash, $I4,-
Ol9,O34,66 in Treasury notes, payable in
two years, and bearing six per cent interest,
and S12,877,75O in Treasury notes, bearing
the same rate of interest, but payable sixty
days after date.
PROVISION FOR REGULAR AND CONTINUOUS
EXPENSES.
His next care was to provide for the reg
ular and continuous disbursements of the
war, under the acts of the July session and
with this view be carefully examined the
various powers conferred on him compared
the probabilities of the American and Eu-
ropean markets for capital, and considered
the relative advantages and disadvantages
of the several forms Of loan authorized.
THE AGREEMENT WITH THE BANKS.
His reflections led him to the conclusion
that the safest surpsf and ynost heno6cial