The New York herald., 1862-12-06
Milking an Aggregate Of.

and expenditures Of the financial years 1862 1868 ana
1864
Another table Is also submitted in which may be
OF what particulars the existing debt consists in what
years CONTRACTED. sndwhon and in what amounts
IL will become due.
The other tables required by law also accompany this
report.
In order to the formation Of sound opinions TO the
required for meeting the demands disclosed BY
the estimates and yet unprovided for may be useful TO
review briefly In with their actual and proba
BILE results The already recommended and adopt
ed or yet under legislative consideration.
MEASURES or RELIEF PROPOSED TO coNGRxS
With view TO the necessary provision for the expendi
lures then anticipated the Secretary proposed Coo
best adapted to the attainment OF that object These
(1s Of duties various IMPORTS (2d1
an ircrcase Of. the direct tax fsdl the Ieyyins g
States notes, convertible into coin; (5th) the ne
goation Of leans, facilitated by the organisasts1
or banking associations whose crculatoushoud consist
only OF note uniform In character furnished By the 90
vernment and secured, coavortibky into coin, By
United States bonds deposited In tho Treasury.
AZ the time these recommendations were submitte1s
had not suspended specie payments and thsre
was reason believe that economzed expenditure and
decisive military action would the required
the suppression OF the re6 i0n without serious sAcri-
fees the part OF the and whous resort
any other currency than that of and equivaens
notes.
Unexpected military delays, however, increased OK.
pendturcs diminished confidence In public secupteep
aud impossible for the banks and capalsts VINO
had taken the previous loans to dispose OF tno oonds
held by them except at runous loss and mpcsso's ior
government to negotiate loans q coin except %
like or greater loss. ~
These conditions made suspension Of specie payments
inevitable. The banks Of New York suspended on the
30th OF December 1891 Their example was ioowoa y
most OF the Throughout the country aud the GO
vcncn vie ldcd 10 the same necessity IN respect 70 the
United States then Ia circulation.
These changed circumstances required change OK
measures. The expenditures had already reached an
average Of nearly million aud quarter Of dollars each
secular day while the revenue from all hardly
exceeded tenfh OF that sum. II was necessary,
therefore, raise by loans in some form about thirty
mill ons q month, or sixty millions every sixty days.
Care AL Secretary
$50 could not be had In coin at better rates tnan
dollar In bonds for eighty cents 10 money ahd tnas
each succeeding loan would ayolve submission 10 IN
crcasngy d.sadvautageous terms. To obtain The nrst
so would require, therefore, an issue of bonds 70
the avn $4,000 oo0, and OF course, an increase Of
the pubic debt by the sum; tho next $50 COO ,oeo
would require perhaps $40 600 900 10 bonds and deot
o"re neba siso 900 600 il was easy 10 see that on
this road discredit and paralysis wsud soon -
reached The adoption Of plan of hnanse 10, nvevns e
such consequences was not conpatibie Win tne Se"~
tary's ideas Of public duty.
There remained but one other possible way u rAnng
money by the Regotiation Of bonds IN the usus moec
That way TO receive IN payment" ioaSs so no'es
'" ~ a,, ~ % bas would hayo been the consequences
OF resort 10 this expedient !, ~ W
bcr that the bank crculslon e W. :, s ooo go sh.s
II lad been reduced 70 Sf30Vcoooo on Tue lst usyI
January 1862, and that TINS e'csason va, anusse
IL hcse circumstances the collection Dy loans OF SUM
Gent amounts meet the demands upon the Treassry n
for prompt payments would be extremely cincut
Th Of such 10 the extent required BY
he public exigencies would create demand for the
as NOT greatly inferior thoso attendant coin loans
II Subsequent Negotiations should bee me practicable ~
ssy Ssss sad the OD making and ~
bank notes extent far beyond the ordinary needs
business. Tho increase OF circulation ,hns stimulated
would be unlimited except by the possibility OF obtain.
Ina interest ON loans cf H. or other words ny the
possibilty Of obtaining credit Cor u with the community
aad the government. This limit. certain 70 % sna'n
Il :