The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-14
Our National Finances.
SECRETARY CHASE TO THADDEUS STEVENS.

Our National Finances.
SECRETARY CHASE TO THADDEUs STEVENS.
TREASURY DEPARTMENT, June Z, 1862.
SRThe act OF July II, 1861 auho; lied the issue OF
900 600 in United States notes. payable demand,
and receivable for customs. This authority en-
| tion Of 500 Os0-making 500 900 900 in ali.
Tho acls of February rs and March II, 1862 autho
interest not exceeding five per cent greater
aggregate sum than $50 900 Oo0 The act OF February
States notes. provdcd that the demand noea
issued under former acts should DO retired and cancelled
as raj idly as practicable and that the aggregate Of such
notes and Of the United States under
this act should at time exceed $3.50 900 900. All the
notes to be issued we're made legal tgDder but none,
toms.
Under these laws $50 900 900 demand notes. recsvabe
for customs have been and $50 100 in notes
not receivable. The aggregate outstanding 10.
therefore, 900, being the whole amount autho
or this aggregate about $50 500 900 IN demand notes
are held by banks and capitalists and not used crcu
aton being held a. premium in consequence Of their
quarter per cent and about s. 900 are held in the
The whole issue OF $50 900 900 in demand notes may
thus be regarded practically withdrawn from circula
tion This withdrawal leaves only the issue Of $50 0OO,
900 Of United States receivable for customs
creased gradually by the substitution these
the demand notes cancelled from which conversion into
bonds redsemable after five years and payable in twenty
years. called for convenience, fvetwenes, can be
The limit Of temporary deposits liz now reached and
nothing further can be expected from that source,
long the limit shall be maintained current receipts
Of such deposits only be equal to tho PAYMENTS 1t
Is, therefore, upon the conversion OF United States
notes into vstwenties, practically limited to the
ninety million Of legal tender notes. and upon receipts
from customs that the Treasury must depend, undor
existing legislation for means to meet current sxpend
lures
experience has afforded any grounds Of estimate for
more than geo daily and the daily average revenue
me sssrssass daily receipts from both Sss:
sources therefore, cannot be estimated at moro than
S yss possSy tn a
less than one million, and will probably. unless very
considerable refreshments are made exceed that sum-
therefore the removal Of the restriction
temporary dsposits The plan Of recsving them has
worked WE'LL and is likely TO continue 70 work well in
future The rate OF interest," limited TO i've per cent W
law has been reduced to four by my direction and 1t b
not proposed to increase it unless some sxgency shall
mako the increase niece ssary.
The amount OF deposits at four per now exceeds
nine millions, and win become steadily larger II tho re-
quentiy required the pressure be very great
which will reduce the receipts below them, while, In
ordinary times the latter will constantly exceed the
former.
II may indeed become practicable to reduce the rate
OF interest even below four per cent with advantage
Whatever the rate allowed the average OF depo
sits above reimbursements will constitute loan TO the
at that rate In order to retain the average
law OF United States notos hereafter authorized
be issued there shall be always reserved in the Trsa
sury from issue, an amount not less than onsthrd
| tho amount deposited
such provision would make the Treasury tho best Of
savings banks, and by guaranty OF prompt payment
all insure the highest confidence and
augment to Its maximum the fow OF deposits. ssti-
mate the amount Of loan likely TO be made to the govern
ment per less in this form ut not less
than $50 900 900 in addition to The 100000 already
deposited.
OF tho Treasury 70 issue $3.50 900 in United States
notes. in addition 10 the issue already authorized and
that these be made legal tender for debts except
tsrest ON oans receivable In payment OF all
the United States for oil Dues except duties
II this authority be gvsn the proposed reserve Of an
amount-say $s4 600 000-no loss than one third the
temporary deposits and the replacement Of that portion
OF the 900 900 OF demand notessay $50 800 600
practically Withdrawn from circulation and hold for
payment OF customs will require for the present at least
say 500 900 Of the proposed additional hs leaving
A. an actual present addition the OF the
| COVE rnment, only $59, 100000
be BY the retirement Of the demand notes. win be paid
for public dues, and the replacement Of them by other
United states notes. VIII probably sunlce Tor all Dc
which cannot be mot from conversions and from
II Congress shall SEQ At to authorizes the additional
emission proposed seems highly sxpcdient that such
part a. the public convenience shall require be Issued
| denominations less than s..
lam aware Of the general objections TO the issue OF
under S. and concsde their cogsncy. 1ndeed
der ordinary circumstances they unsnswsrabls but
most not ali Tho force The country Is involved in
the expenditures Of contest for national existence and
IL highly desirable that the burdens Of the people be
II the restriction on the Of small denominations
be removed the wants Of the country wiz absorb cir.
this circulation, say 81 100000 year. VIII DO saved
| to the taxpayers.
ders require large amounts OF coin 10 satisfy frac
tionai demands less than s. Great nconvensnces In
payment Of the troops thus occasioned With every
effort the part Of the Treasury TO provide the neces
sary amount Of coin II 10 found mpracticabs always 70
when the amount required 10 furnished the ,smpts.
tion 70 disbursng officers 10 exchange for any small
bank notes that the soldiers or the public creditors win
take too great 70 be always resisted. And when
the coin reaches the creditors 10 seldom held but
passes In general Immediately into the hands Of sut.
tiers and Others and disappears ~ from circulation
The inconvensnces therefore 70 the gsyernment and
creditors from the absence OF United States notes Of
small denominations, not compensated by anybody.
II may properly be further Observed that since the
tanned nearly at che par Of gold BY the provision for
the conversion into bonds bearing six per interest
payable in coin, Is not easy TO see why small notes
The made . legal tender circulate money, and
| the government may authenticate by device and i'm
BE- found only public convenience which dictates dc
nominations In notes similar 10 denominations in gold
leaving the small circulation Of silver sss valuable thar
Another consideration which deserves TO be taken In
the account Ii this that resumption Of payments N
specie can be more certainly and easily elected, ans
n the currency small well large OF United state
notes. than IL the channels Of circulation left b,
filed up by tho emissions Of nonspecie paying corpora
| tions, solvent and insolvent.
Thesc considerations economy Of public advantage
and OF private convenience seem TO me TO justify full
the removal OF the restriction upon the issue Of SINAI
notes.
Ipropose further to make arrangements the nes
ssry sngravns aha o.ner .ne phinng ana pre-
partmcpt at Washington am led to believe thea vor
considerable reduction OF expense be thus snecet
The prospect, Ia my Judgment certainly warrants th
trial
with these Objects have prepared oil which pro
pose 10 submit 10 the consideration OF the committed
The condition Of tho Treasury rc<doss proupt acti,