, 1862-12-09

A-A1-A-0 NAe N-t44LA 4IA4E*1 bONDGs
MIR Chase then argued at much length in
iavcf OF system Of banking on United States
ponds He says the central idea of The nro
Fosed measure is the establishment of one
sound, uniform circulation Of equal value
thronghout the country, upou the foundation
capital. '@' f1'''o
s9ch currency it is believed, can be secur-
Cd through banking associations organized M
der national legislation. " @i''A~'' ''1
|. u IS proposed that these associations be en-
1Le1x soluitaI 1a1 Any person desirous Of en-
if the plan be adopted, unite together under
proper articles, and, having contributed the
requisite capital, can invest such part Of If.
not less than a fixed minimum, in United
S!ates bonds, and, having deposited these
bonds with the proper officer of the United
States, can receive United States notes in such
denominations as may be desired, and employ
them as money i'll discounts and exchanges.
!he stockholders Of an existing banks can, in
1ke manner, organize under til: act, and trans
Ter by such degrees as may be found convenient.
Tue capital Of tie old to the use Of the new as.
soclatlcns. The notes thus put into circula-
ION Will be payable, until resumption, in
United States notes, and, after resumption, in
specie, by the association which issues them
on demand: and if not SO paid will be redeem
abte al the Treasury Of the United States IRON,
the proceeds Of the bonds pledged i'll security.
In tue Practical working IF the plan, if sane
Toned By Congress, redemption at one or
more Of the great commercial centres Will
probably be provided for by all the a=socia-
tions which circulate the notes, and in case
any association shall fail in such redemption,
the Treasurer Of the United States will proba-
hiy, under discretionary authority, pay the
notes, and cancel the public debt held as Sc
curisy.
THE FgTURE-INTEREsT AND SINKING
FUND OF TEE PUBLIC DEBT.
Tie government is less costly than tlat of
most other great powers. The expenditures
Of the current fiscal year, including those Of
the War and Navy Departments, can hardly
equal those Of the last year, which amounted
to sA, ,511 1865. Estimating those Of these
departments at double the expenditures Of
the last year before the rebellion, they would
for the current year, had the war ended be-
fore last midsummer rs was anticipated at
the date Of the last report, amount to the
sum Of S55,a5, ss4 IS. Tie interest on the
public debt is for the current year estimated
ii s25, OIL ,552.07, and will not probably 20
over that sum. Tie whole expenditures Of
the government for the current year, On the
surposition Of peace, would, therefore, not
exceed S105, ST. ,S4S.21: This aggregate must
be increased hereafter by the addition
Of interest OIL the loans Of the current
and future years and by pensions, tie
precise amount Of Which cannot be forcsecn
Estimate the former ut fifty, the latter 1T ten
millions year, and the total annual expendi-
tnres in peace will reach, emitting fractions,
Britain during the year ending March 81, 1862,
were 1854 ,4:sG ,6S2 those of France for 1862,
according to French official estimates. will
reach Sci ,S23, 500, and thu annual expenses Of
Russia, according to the best accessible infur-
mation do not fill fur sliort Of $50 on, 100
To meet our annual expenditures, and to
assure beyond contingency The punctual dis
charge Of The interest If tic public debt, and
the creation Of !: sinking fund for its reauc-
ton, Congress has prosidcda a revenue frnm
customs even HOW reaching nearly SIC, 600 900
Year; and 4 revenue from internal duties
which will not probably fill short Of s150,-
.0c0 year.
Without reckoning any OF her resources than
those already provided, the revenue. there
fore, will annually exceed the expenditures By
$50, ,CCO,tC0, which sum may be used for the
reduction of the public debt. If, then. the
war shall bc continued, contrary 10 hone and
expectation, to midsummer of 1854 anu the
public dcbt shall reach tle utmcst limit now
anticipated Of 81. .750, OK, 900, tile excess Of
revenue Will reduce thc debt, during thc first
year CT peace, more than three per cent
NEW LOANS TO BE NEGOTIATED.
It has been already stated that The amount
to be provided, beyond Resources available
under existing laws, is, for the current year
S2.6Sls, ,5la-Gg, and for the ensuing year;
~
To provide these amounts, loans in some
form must be negotiated.
The Secretary has already expressed t1ic
olinion, with great Difference to the superior
Wisdom of Congress, that it will be uawise,
unless conditions. greatly change, to autlor-
tic limit now fixed by law. Should any
vacuum bc created by the withdrawal of bunk
note circulation, that vacuum should donl,s-
less be filled by United States notes Should
Congress adopt the measures proposed bV the
Secretary, il is not improbable that an .ddi-
tloilal Issue IF fifty millions may BIZ required
for that purpose within thu year, and al equal
additional issue during tl!c following wear.
And it may we'll be hoped that military sur-
ccsseE. rc-ts1:blishing the authority of the
United States in large districts of Tic ins.lr-
gent region, will call for further issurs to sup
ply the place If the worthless currency which
tue rebellion has forced upon the people
Should il be deemed eXpcdicnt to invest the
Secretary with any discretionary power, in
ylcw OF these contingencies, il should be lini-
lied 80 rs 10 allow no increase Of :lg!rrigate
circulation beyond the clear demands III fyal
business.
But tic chief reliance, and the safest, must
he upon luans. Without any issues OF United
States notes beyond tia :tIi.olint now author
izcd, it seems certain that loans f,,r the Whole
amount required for the Current wear can he
readily obtaincd at fair rates: and it NAV lie
COIHllEIt13 lItL DCIbIt lis close the re-
sources OF the country will he Eo we'll under
stood, and the restoration Of its territorial in-
ttYiity 50 well assured, that capitalists will
NOT hesitate to supply whatever may lie need
cd for the subsequent year.
GENERAL VIEWS.
The general views of Tie Secretary NAV
tlit rctGrc be thus briefly summed:
Tie recommends that wlateyera1no,,lrts NAV
be needed lfeyond the srn,s supplied hy rev
c'luc and through Other indicated modes b:
obtained by l'lns, without increasing the
ISSUE Of United States notes beyond tlie:mount
tixcd by law, unless clear public cxigency
shall demand it. Te recommends, also. the
organization Of banking associations for The
Of the public credit, and for The
supply to tho people Of q safe and uniform
currency. And he recommends 10 change il,
tic law providing for the negotiation of bonds.
except the necessary increase Of amount and
tue repeal of the absolute restriction to market
value, and of the clauscs authorizing colycrti-
billy at will.
If Congress shall concur in these views. tic
Secretary, though conscious Of the great diff
cultics which vast, sudden and protracted ex-
l,cnditurcs impose on him, ventures to hops.
that he may still be able to maintain the pubiic
credit and provide for the public wants