The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1861-12-20
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 q view to insure the desirable results
Of efficiency. economy and general prosper~
itv, were set forth, with as much clearness
and plainness as he is capable OF, in his
report made to Congress on the 18th day OF
July last.
In that report, also, the Secretary sub
mitted to the consideration of the Iegisla-
ture the measures by which, in his opinion,
The pecuniary means necessary to the
speedy and etlectual suppression OF the
-igautic 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,
during the fiscal year to end On the 30th
Of June, 1862, of S316, ,5Sl 81.
To provide this sum, the Secretary prod
posed such notifications of the tariff an
such internal taxes as would, in his judy
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 yield the required residue.
Without adopting all his recommended
lions in regard 10 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>
~, for obtaining the additional sum re
CURED by the estimate.
THE LOAN ACTS.
it now becomes bis 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:
F,ra-For a national loan of one hum
bred millions OF dollars, or any larger sum,
not exceeding the whole amount authorized,
il 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.
Slcondig--FOr loan in Europe Or in the
United States, at the discretion of the Sec
retarv of one hundred millions OF dollars
payable twenty years after date, and bear
iuc 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,
bearing an interest oil 800 per cent anu
convertible into the three years 80 bonds
Or Treasury notes.
F9uthly- f r the issue Of notes, payable
or demand and receivable iOr all public
dues, to be used a. 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, bu,
not less than five dollars.
! 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, icr payment to pub
lie creditors or for advances of cash, Sl4.-
0l9.0346G in Treasury notes, payable in
two years, and bearing six per cent interest,
and $I2,077,150 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
uar and continuous disbursements OF the
war, under the acts OF the July session ; and
with this view he 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, surest and most beneficial
plan would be to engage the banking insti-