The New York herald., 1862-07-28


tom House we're almost entirely ~ this cnr1eaey'
rarue sumE wors paid contractors in 81 LOUIS
ana New York in thoss notes, d.5burstng agents
being required 10 place sr each note rad one
tbo date wnsn q, paid the interest oa any nDte
vas calculated from ths date placed s bacS ny suen
9ncer without regard 70 that On ~ i1e ING former
being taken AZ lie date Of Ia soue of the western
states Misunderstanding relative to the date from
which tie notes wsro boar Interest, and sums were
pad 10 contractors without tic proper endorsement. u
this way these men III reality received larger than
that to which they entitled, asnuch The moss
we're worth Tie expressed their face with aterss'
from the date there written which shogd have been ren
derei null by The endorsement or the real date of issue
This brought 10 the notice of Secretary CHASE
who Immediately corrected il.
shortly after his Inauguration President Lncor issued
hs call FOR special session Of the Ihilty-soventh Con
sress The call dated April 10 1851, two days after
the surrender OF Fort sum ard the actual commerce
nsnt Of the war In ohcaancs this CAL Congress col
vsned ths Fsurth Or July.
With the passage Or the l&ws we have already mon.
toned ended the of tho Thrtysixh Congress on
the subsct the national finances The special session
Of the Thirty seventh Congress, convened by President
Iincor 10 consider ha Of the nation and 90 provide
men ana money for suppressing the rebellion,
marked by adoption Or several acts uaior the pro-
visions OF which ths necessary 10 be OBJ
tanned The laws passed. during Inc summer Of 1851 val
ever be looked among tAs most important enacted
since the foundation Of government The rebellion
had by that time grown into gigantic proportions, and
the ng had been forced into the belief thas
great and bloody contest before the nation. Every
whore throughout the loyal states the people had mani
fssed determined spirit they had said unmistakabe
tonss that the Unon must and shall preserved - cos.
what might the effort Of their blood treasure
Acting in obedience 70 the win Of their constituents the
members OF Congress met With the intention of voting
and money the full extent called for. The result
the introduction and passage Of the acta reviewed
below.
TIRE 7.30 TREASURY NOTE BILL.
But short elapsed after the meeting Of Congress
before the great financial OF the in
roduced The act reerred TO authorized the Secretary
or tho Treasury borrow $3.50 coo 600 within twelve
months Of lis passage. In return for the money re-
csved this loan the Secretary authorized issue
coupon bonds, registered bonds, Treasury notes
The bonds 10 bear interss. exceeding
per cent and TO be rredeemabe for twenty
years. after The expiration Of which time they
be redesmabs At the pleasure Of the United States The
Treasury to be issued under this law TO be OF
denominations not less than $50, redeemabe In three
years and bearing interest at the OF 730 per
The interest both bonds Treasury notes was to be
payable semi,annualy. The issue of
DEMAND NOTES
also allowed, the set providing that as
denominations than $50, bearing interest, but
payable demand, may be issued. These notes
could be paid exchange for ccn for salaries and other
dues from the United States They also to be
csivable for all public Dues unlike the 730 notes ssued
under ths Same law which receivable for duties
foreign merchandise The Of notes bearing in
terest at the rate Of 3s5 payable year date
was also allowed. These wore to be at any time
changeabs for the Treasury notes The &C, provided
NJ fha orfhor
at less than par Our readers win notice the difference
in the plans adopted for raising money under the last
the present ADMINISTRATORS. The mode in the former in
stance was to oer Treasury notes TO those who would
take them at the lowest rates OF interest," which have
already shown high as twelve Der
cent. Tbs device adopted in the latter to hx the
rate Of interest to be paid the notes, and 10
bind the Secretary Of the Treasury any notes
with the rates thus fysd or isss than their par value
limit was fixed In this way and the opportunity OK.
isting under the former arrangement, to adyan
tage Of the wants Of tho governments and only accept
IL promise 70 pay at runous rates removed The
change in plan smnentIy successful.
Thinking that we might be unable to raise the whole
amount OF this large loan country Congress
provided that 500 600 thereof might be negotiated
in foreign countries The patriotism or orr people mas
however saved the humiliation OF as1es IN from
any other nation The notes OF iass than
$50 (the demand and IS noes) allowed 10 &c re-
Issued after redemption the aggregate value OF those in
circulation at any time not to exceed the Full amount
Of those originally Authorized. The sum Of $500 900
appropriated FOR expenses carrying the act into
effect The bill approved BY President Lincoln July
II, 1851.
Under the provisions OF this the frat oxtensv. ssc
Of paper money by the government was 10 be made
Some fears a, first entertained that tho people
would not readily receive so large Of paper
money, the Secretary lrated to the rsvment o
I3o per cent Interest and required Il dispose o it at
its par value Such fears were scattered however as
ii became necessary carry the act into effect
and 70 appeal the people The Secretary made several
visits to New York FOR the purpose 0. consulting with
snnent nnancsrs and banker. Of this city to lie
termine in his mind the most feasible method
dsposng Of the notes 70 be ssued The result Of these
consultations gas the patriotic offer or the
bahkB Of New York, Boston and Philadelphia
from The government 10 the value ef
$3.50 900 900. This sum advanced by the banks
under the following arrangements.--on the 18th Of
August, 1861, they agreed pay the arst
msnt Of $4,000 600 reservng 70 themselves ths right
should they wish do TO take the 18th of oclo
Dor notes 10 the value Or $50 900 900 the 18Th or
December $50 900 The priacpa points os he
arrangement, between. Secretary Chase and tho banks
were as follows
| That tho former should immlc,sey issue oper
cent notes to the extent or 100000 ooJ Nsrns da.s
august 70, 1851.
& That the bsaxs Of New York Boston ana philad-i-
phi. should take at par ihe notes thus issued reservhs
.ps nr,v,exe of taxing 800 900 at tho dases
sIre.ay mentioned. I T. ss.-4- =. -.
That the government slioald appeal 70 the people
for popular national ioan.
s. The nf,h provision n the arrangement WIS that
thu banks should Immediately pay into the Treasury
son per cent Of the Of their rst subscription
That the Trsssury Department should receive !n
part payment Of these subscriptions any past doe
Treasury notcs.
Tho banks. IN advance ~ their promises, loaned
s5opoo,o0o August TO- sso, ,coo.o 900 October l. and
$4,000 900 az par cent bonds the 10Th of No