New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-12-10
The Report Of Secretary Chase,
MqREECHEENY AND ECONOMY PROPOSED
Property Of RebelstC Pay Wal Expenses
CREDIT CIRCULATION OF TREASURY NOTES

eonceives, the administration Of he public finances
should be regukted, with view to insure the de-
sirable results Of efficiency, economy, and general
prosperity, We're set forth, with much olearness
and plainness he capable Of in HE report made
10 Congress on the 9Th day Of July last.
In that report, slso The Secretary submitted to the
consideration OF the Legislature the measures by
which, III his opinion the peeeuiary means, ncces-
sary 70 The SPEEDY and eiecuai suppression OF the
gigantic rebellion Sc foot BY criminal Conspiracy
against the Government aud tae people OF the United
Btates, might be most certainly and most eeonom-
iealy obtsIned
Tie estimates of the several Departments then laid
before Congress by the Secretary contemplated an
aggregate expenditure during tue fiscal year 10 end
on the 39,h June, iS62, Of 1913 5i95sl n.
To provide this sum the Secretary proposed such
notifications of ths tariff and such internal taxes as
would IN his Judgment, produce The sum OF $oo,0UO,-
0O0 and such loans in various forms, not exceeding
in their aggregate 50G0O,Ot0, as would yield the
required residue.
Without adopting all his recommendations in re-
gard TO customs and internal taxes Congress made
such provision for both as was deemed necessary to
secure the sum proposed 10 be derScd from those
sources and authorized loans, IN the mode aud to the
extent proposed by the Secretary, for obtaining the
additional rum required BY the estimates.
IL now becomes his duty 10 give some account Of
the execution and practical operation Of these meas
uTes and In the performance OF it be COLLECTS frat,
the attention OF Congess 10 that part OF them rela-
ing to loans.
The acts authorizing loans rroyided--
First. For National Loan Of one hundred nil
Hons OF dollars, amy larger sum, not exceeding
the whole amount authorized. in bonds or treatury
potes, bearing $50 per cent interest, payable three
years after date, and convertible al or before ma
turiy into twenty wears Fix per cent bonds.
Secondly. For loan in Europe or in The United
States, at the discretion of the Secretary, of one
hundred millions of dollars, payable twenty years
after safe, and bearing interest not exceeding seven
Per cent.
Ihiu}ly. For the Issue, in payments TO public
eredtors in exchange for coin, of treasury notes
PAYABLE one year after date, bearing an Interest OF
$50 per cent and convertible into the three years
7.3O bonds or treasury notes.
FoVkhly. For the issue OF notes, payable on de-
xand and receivable for all public dGes, TO be used
rs coin in payments and exchanges.
The aggregate Of notes Of the two last descIlp-
lions 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 denomi
nations bearing FL per cent interest and payable not
over twelve months from date, TO an amount not ex-
oeeding S20,O0OOO0
To provide for immediate exigencies was the first
duty Of the Secretary, and he performed 1t by issu
ing, under authorities conferred by vaious acts for
pay ment to public creditors for advances Of cash.
$H,0l904 66 in Treasury notes payable IL two
years, and bearing per cent interest, and fl2HI,
$50 in Treasury notes bearing the tate OF in
terest but payable sixty dayb after date.
His next care was 70 provide for the regular and
continuous disbursements Of the war, under the acts
eff the July Session. and with this view, he carefully
examined the various powers conferred on hni COM
pared the probabilities OF the American and Eu-
Topean markets for capital; and considered the Tela
tive advantages and disadvantages OF the several
forms OF loan authorized.
His reflections led him to the conclusion that the
safest surest, and most beneficial plan would be to
engage the banking institutions OF the three chief
nroarcial citiea Of tho aaQDoar1 advance the
amounts needed for disbUsementin the form Of loans
for three years 7.30 bonds to be reimbursed far
~ practicable, from the proceeds Of eimilar bonds,
subscribed for by the people through the agencies of
the National Loan; using, meanwhile, himself, TO
limited extent, in aid of these advances, the power
TO issue notes of smaller denominations than $50,
payable on demand.
Upon this plan he hoped that the capital Of the
banking institutions and the capital OF the people
might be so combined with the credit the Govern
nent, in proper provision for necessary expendi-
lures 10 give efficiency 10 administrative action
whether civil or military, and competent support 10
public credit. The result thus far has fulfilled that
hope.
Repres entatives from the banking Institutions of
The three cities responding to his invitation, met him
for consultation in New-York, and, after full confer
ence agreed to unite associates in moueyed cup.
port 10 the Government, and to subscribe at once
foan of $50 600 000 Of which S500O,OOO were to be
Maid Immediately TO the Assistant Treasurers, IN
coin and the residue, also in coin, as needed for dis
bursement. The Secretary, on bls part, agreed TO
issue ,hree-years 80 bonds Treasury Notes, bear
ing even date with the subscription, and Of equal
amount; to cause books Of subscription to the Ma
tional Loan 10 be Immediately opened; to reimburse
the advances Of the banks, az far as practicable,
from this national subscription; and to deliver to
them 7.30 bonds or Treasury Notes Tor the amount
NOT thus reimbursed. 1t was further understood
that the Secretary Of the Treasury should issue
limited amount of United States notes, pay
able on demand, in aid OF the operations of the
Treasury and that the associated institutions, when
the first advance Of $50 900 600 should be expended,
would If practicable make another, and when that
should be exhausted, still another advance TO the
Government Of the same amount and on similar
terms.
The objects of this arrangement were list to place
AT the command Of the Government the large hums
Immediately needed for the payment OF maturing
Treasury notes. aud for other disbursements, ordina
nv and extraordinary I'D to secure 10 the people
equal opportunity, with the banke for participation
in the loan; (3d) to avoid competition between the
Government and the associated institutions In the
disposal of boDds (ith) to facilitate and secure fur
ther advances to the Government by the associates,
II requred and 18th to insure, if possible, the main
tenance Of payments in specie or It's actual equya-
ienis aud representatives.
An these objects were, happily, accomplished.
Fifty milhons OF dollars were Immediately advanced
by the banks. The Secretary caused books Of sub
scripuon TO be opened throughout the country, and
the people subscribed freely to the loan. The
amounts thus subscribed were reimbursed 10 the
banks, ard the sum reimbursed though then cover
ing but little more than half the amount. enabled
those institutions, when second loan was required
10 make a second advance Of $50 coo O00
Thus two loans OF $50 900, 600 each have been no.
gotiated for three years '.3O bonds at par. The
frst Of these loans negotiated and the first issue
of bonds bear date, on the 18th of August the sec-
ond ON the LIST of October, 1861.
=. On the 10th Of November a third loan was neoo
tiated with the associated Institutions, under the su
=. G. -