, 1862-12-09

a1a transaettd: f Nothing less would satisfy the
This duty Congress partially performed by
authorizing an emission of SIC, 600 600 in
" United States notes, in addition to the 500
o previously d w. autho1izsd lan Gs IN mzng s15o
were made receivable for al national loans
and dues, except customs, payment Of which
Eas required IN specie or notes Of the two
first Issues.
Ata later period Of the session, in view Of
the withdrawal Of the sG0, ,OO, ,OW receivable
Tor duties from circulation, and Of the cxpe-
olency OF providing permanent resource for
meetlng gu demands upon temporary de-
qosits in the treasury, Congress authorizcd y
tnrfher r. iss9e s Of 15o,00o, 900, Of which, how
sseI, sov.aU,Voo were to be reserved from
DEF osits. ~ @1'~A@' -
PRACTICAL RESULTS OF EXISTING FINAN-
| CIAL LAWS.
lettering neyt 10 the law authorizing the
Issue OF certificates Of Indebtedness and to
1he one authorizing the issue Of national
ponds to the amount Of s500, 0,O00, 900, (con~
monty known as dye-twenties, J the following
practical results are set forth:
To the lst day Of July, 1862. s57 o2G 11f; 5-
mad been received and were re1aaining On de-.
I@oslt; @ -, United ri States notes to the amount of
Sl5S, ,59l ,2230 had been issued and we're in cir-
culation; s4a,ss1 ,979.7 had been in clrtifi-
Gales OF indcbtcdneEs; and s20e, SIS 2yl ST had
fo oeen I,, pa1d ~ cash Not It single requisitiou
| rom any department upon the Treasury re-
ina n'ained unanswered. Every audited and set
tied clalni on the government, and every
| qnarternlaster's check for supplies furnished
which lad reached the Treasury, had been,
ha,nca aug ne tne6e remained en- III the Trcasury
Inc reEerses Of June, July and August. af.
1ee.ea: e: OF course our injuriously, this financial
condlflon. The vast expenditures reuuired
! oy me large increase of the army, authorized
| by congress and directed by the President.
maoe eAnaastlDg demands on all available re-
sou1cts. ihe measures Of Congress. how
ever, enabled the Secretary to proYide, if not
1nliy. yet almost fully, for the constantly in
cfeaslng disbursements. The actual nav
nc ments other than for principal of public debt.
nuI1ng Inc quarter ending on the 30th Of Sen.
tember, were, Sill 4,446. Is: during tie tie
mouth Of October they were s49. 9.2l3. IG a..
and @ during the month of November, $50 SIT.
011.34; while the accumulation OF renuis3
tons beyond resources amounted to less than
the fourth OF the aggregate Of these sums.
namely, to fl, s,354, 3354 i01.223.
| FURTHER ESTIMATED RECEIPTS FROM Ey-
1STNG LAWS.
!, The actual and estimated receipts under
these Laws for tile current fiscal year. as already
stated, Will amount under the thrift act to
s6o, ,t4l, So, and Under the internal reyenue
Law to ss5, ,a5G, $685. .73. The receipts from iii
olher sources, exclusive Of loans, as estiinat-
ca, WILL reach IL, ,95s, 5S;47, making general
from last year, Of S1S0, 1876 90, and leaving
TO- ,l be 81 proyided from loans, in some form.
The laws limit the 1Esue Of United States
notes, exclusive Of the contingent reserve for
aeposlls, To sou 0W0, GOO. and limit tile amount
deceisablc Ic on temporary deposit 10 Sl00 600
utS}, and limit the issue Of tlyc-twenty-siyns
to s5c0.CG0,000. The issue Of ccrtificatcc ~
1ndebtedness and Of fractional currency is IN
limited By legislation.
Ile amount Of United States notes, includ-
hg 1totes receivable for customs, already is
sued and i'll circulation, or in lie Trco.1r,- f.,
IHe credit OF dlsburslng oficera or Of thc
treasurer, vas, on the 1st inst, S232, ,a9S2 iii
ihere yet ren'lns, therefore, under the law.
an ~ authority u to issue the further sum of s37,
eluding coin aud estimating for the last da,-
Of November, is S79, ,795, ,65O. The furYIlcr
sum Of 81, POI $50 1nay therefore vet BE- r.,
ceivcd. The issue Of fractional currency has
reached the sum Of S3,ss4, 500. Tie best
Payments can be resumed not less than s1O.-
uU,oNU Will be required BY the wants of the
community. The sum Of set, ,l5,2OO. not yet
issued, may therefore be counted on rs an i'd
ditional resource. It Is not easy to determine
NliaI 1urlher payments can be mndc in ecrtii-
that payments in that form may be safely car
ricd to the amount Of 800. 0.0O0, 900. These
payments llavc already reached SS77 3Gi3 III G5
and 1he additional sum Of 81, ,t33l, ,75S. 81 NAV
therefore be paid IN that way. What can be
justly expected from conversions under tie
act uthprizing the issuc of tivc-tweaty-siScs.
that is to say, from exchanges by holders of
United States notes for these bonds, at mar
cannot bc stated with much certainty The
amount received from this source from the
a. n o.f f<,t tf,c1 1.% 81
part Of tie last Ectl: in November, is S2SS.T
wy. It may reasonably be expected thai
tllrty-fsc millions will bc received, if The act
remains ulimcdiilcd, during tue remainder Of
the fiscal year. Tht aggregate Of al these
SUMS, namely, s1Sl ,G21, 5.35, constitutes lie
total resources available fur the current wear
under existing Laws, except through sales, re-
gardcd as lnlpr:cltahle under the act author
iziEg their issue, OF the ti7e-twentics at their
market value
SUPPLY OF TIE Treasury.
These credit RESOURCES, witil tie actual r.-
cclp!s IRON like souTcvs, added ia rcEcnur in
~ ferns Y nay supply 1ic Treasury with
disltrst lncn:s Of S3:7G, 912, ,517,;6 to br provi
ttcd for.
How?
The easiest mode doubtless would be m
lsslic Of the regaircd amount in United States
notes. eu1 such an 1ssnc,. especially in tic
circulation, would, III The Judgment Of the
Secretary. be as injurious as it would be easy,
lAe .Gu'l!on OF so vast Il volume to tilc exist
ing circulation would convert Il currency, Of
which the benefits have Tins fur greatly out
weighed the inconsrni,nees, into Il positive
calamity LIS consequences would he vast
dlnllnution of exports, Intuition Of prices, in
erc;se Of eApentiltu ures, :ugnlc cn1ation Of debt,
and, ultimately, disastrous defeat Of the very
purposes sought to he attained BIZ it.
Tn rprf1i1 tISfrnf
certain Circumstances, !: limited additional
Issue uf United Statcs notes nav perhaps be
safely and atlral1tagcously made.
The Secretary tocs not concur in tic opin-
ion entertained by some, whose ability and
experience command deserved respect Thai
the aEgrSgste currency Of the country, com
posed Of United States notes and notes of
corporations, is ut t!li+ moment greatly in c7-
ccss Of legitimate demands for its employ
mcNt. Mucli less does hc concur III another
opinion, moi unfTcqurntly expressed but cx-
pressed III his judgment without due consider
alton, tl!at amy excess is Cue to t1e issues Of
TINTED States notes already in circulation.
THE PREMIUM ON GOLD.
The Secretary then discusses the premium
on gold, and argues that it has been caused
chiefly by tie efforts Of epeculators and t1c
tears OF foreign and domestic holders If noy-
crnment and corporate securities, who have
sold their bonds and bought gold in large
ANuH'AAA~S M! cApo1 tu1Du Ut u4ITdlnE. He
adduccs three reasons why, in his Judgment.
the premium on gold is not due, in the great
est part. to the increase Of the currency, al
lcging. 1st. That the whole circulation did NOT.
u The time Of the highcst premium on gold.
lOet. 15th,) greatly exceed "the Legitimate
demands of payments" Hc says that the
issue Of Treasury notes on the 1st Of Noycu-
ber 1sti2, was S2l0, TO-, 900, and the bank note
circulation, according to the best estimates.
slG', GEO, co0-total S377, LOCO. Tie i,auk
CIRCULATION On the 1st Of November, 1851, was
Slso,GHo,c00. Tcrcasury notes, S15, IN, 900,
coin in circulation and in banks probably not
iess tl;in 3l0,00o, ,000-t s555, Iii, 900.
t!tiertncc between tho amounts of eirtula-
;ios' nj the 1wo periods SCI 9!;44 ,0GO I'd. The
prices Of many IF the most important articles
u consumption, such as wheat, corn, beef
ana perk, li;syc mot materially advanced. Sd,
On the 18th day Of October, when the :,ggrc-
gregafc actual circulation, national and cor
purate. was about S3G0, OK, Goo, the premium
on gold was ii IS; whereas, OH the 29th day
t'f November, when the circulation had IN
creased by several millions, the premium on
gold WAS 20 to so per cent.
TAXATION OF BANK NOTES,
Attrl'uting the Observation-Disclosures Of cir
culatlon exists to excessive issues Of bank
notes. MIR. Chase remarks:
Under these circumstances, the path Of
wisdom and duty seems very clear. It leads
to thu support Of q United States note circula-
ton, and to the reduction Of the bank note cir
culation. A comparatively small reduction Of
thu latter will allow ample room for the whole
increase OF tic former, authorized by existing