New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1862-06-13
THE NEW TREASURY NOTE BILL
Secretary Chase's Financial Letter
THE PROPOSED EXCHANGE OF GEN. BUCKNRR
An 0fice-Holding Dodge squelched
wAsHINGToN. Thursd,y. June u, 1862
EAST TENNESSEE LIBERATED.

u
telegram from Gov. Andy johnson tonight to the
effect that the Rebels reported to be retreang
from Cumberland Gap toward Chattanooga. If 30,
Esst Tennessee is at last freed and Gen. Morgan
,an Immediately take possession.
THE TAX BILL.
The House voted to-day on tie recommendation Of
the Committee of Ways aud Means to refer the Tax
bill 1T once 10 a Committee of Conference, without
previously itself passing upon the Sepaie's amend
ments. The conferees appointed on the part of the
House are Messrs. Tbadieus Stevens Morrill, of
Vermont, and Holman Of ludiana; on the part OF
the Senate, Senators Fesseuden, Harris, and Hen
derson.
THE NEW TREASURY NOTES.
The bin reported from the Committee of WAYS
Means authorizes the issue of $50 900 600 Of De
mand Treasury Notes beside those a're ady author
led of denominations not ess thai s., TO be legal
tender and to be receivable for all G vernmeut dues
debts loans, and taxes except duties on imports and
interest on Government bonds and interests bearing
notes.
1t also authorizes Secretary # the Treasury 10
grave these notes at the Treasury Department, en-
poweripg him to provide machinery and material,
and to employ persons and appoint as many officers
as shall be necessary. Another section repeats the
limitation upon temporary deposits of notes with any
Assistant Treasurer OF depo itor aid authorizes the
Secretary to receive them to any amount not ex.
ceeiing one hundred millions in OF N lss than
$780, and for not lees than hi days, interest
above per cent provides that one third Of the ag'
gregate deposits ,hai BE- roserved in the Trea ury
or from being Issued uuOer u Is ac TO secure prompt
payment of such depOtIs on demand The bill pro-
vides further that certificates of deposit and OF In
debtedness shall be received on the me terms as
in or r,d hIe g. i've
aud payable after twenty yeaIs.
AuOtler section empowers 'te Sc sretaJy 10 bOr-
row such part Of the two buudIed aud fifty millions
authorized by the Act to authorize national
loan" &c, passed year ago, as ehall not have
been borrowed within twelve moths after its pas
sage Another section provides that former appro-
priation for detecting and Bringing TO tIial perSons
counterfeiting United States CON- shall also be used
in similar protection Of Unlted States notes and
bonds
The bill reported embodies, with the exception Of
the suggestion thar no as be issued Of less denomina
Ton than g. all the mendasiOns submitted in
Secretary Cbsses letter to tie Committee on Ways
snd Means which is as follows:
Letter from the Seretgrycf te Treasury n relation TO de
''' an Tsrssrs1 Dgpamrswsr aprii l. 1862
SIR: The act Of July II, loGl, authorized the
issue Of $50 coo 900 in /. S. Notes, payable de-
nosnd and receivable for customs TGp authority
YVES enlarged under the act Of Feb II, 1852 by the
addition of $40 O0o, 0OJ-makiue 5000 1000 III all.
The acts of February - aud March IL, 1869, au-
tiorzed temporary depOsi ia u Treasury az rates
of interest not exceeong five per cent, nor f)r a
greater aggregate cum than 80 90, lie sct
Of February Is, 1860, auth, riZed the issue Of
tl50.O90,0O0 In United States notes, provided bow
ever that the demand nOes Issued under former &c
should be retired aud cance I'd ~ fapdly as pmetl.
cable and that the aggrega.e 81 Euch Totes ana OF
the United States notes 10 be ls-ued under uMs act
should at no lime exceed S,3V,WJUOU. All inc
notes TO be issued Were made legal tender, nut
A.. a f.Haa TrffA 81
ale for customs
Under these laws So, 10000 in demand notes,
receivable for customs, have teen Issued, and
100000 900 in notes not 60 receivable. he aggre-
cate now outstanding r., therefore, $I1luUO,VOU,
besnO the whole amount autbo lied by ~.
OF this aggregate about $o5, 800, co. 10 Demand
Notes arc held by banks aud capitalists, and not
used az circulation, being held at premium - con-
sequence Of their recegabiliy Tor customs 81 from
TO per cent, aud about $50 OoCO are heid IL the
Treasury for circulation.
The Whole issue of SO, 600 900 in demand notes
nav thus be egarded as practically Withdrawn from
circulation. This Withdrawal leaves Only TIE issue
of 40 900 900 Of United states u0ien not rCclFdtc
for customs increased gradu ly 10y toe Substitution
Of these notes for tine demand noies Cancelled, from
which conversion into Uouds redeemhbie alter I'VE
years aud payable in twenty years, called Tor con-
yesience five twenlies can lie eXle'ied 10 he made
The limit Of Temporary deloei IL now reached,
and nothing further can be exceed rom 'ihs'
source for so long the limit sha be mhihtsl go,
current receipts Of ouch Dc o,its cd only be equal
TO the payments II is erefor. upoD the conversion
Of United States notes inio five twentys now
practically limited 70 the ninety million oi legal
tender notes and upon receipts from Customs, ihal
Ge Treasury must depend under existing iegisi'-
Eon for means 10 meet current exi endi urer.
No safe reliance lie placed on conversions, 80
far ne experience has afforded any grounds Of eeil-
mate for more than $4,000 daily. ara The daily
syerage revenue from cn-oms during the pas, month
has been about $4,000. Tie aggregate daily re-
csips from both these source' there ore, cannot ne
estimated at pore than 900, may very possibly
fall short Of that snm, lie the average daily ex-
Ieuditures cannot be ettiated al ess than one M
hon, and will probably, uniers very considerable
re.renchments are made, exceed that SUN.
tbf relore propose Tie removal OF tie restriction
upon temporary deposits. The Ilau OF receiving
them has worked well, and is likely to continue To
work well in foLure. The rate Of interest," limited
TO FIVE per cent by law has teen reduced 10 four 10y
my direc,ioa aud ii is rot proposed TO Increase II
unless some exgency shall make the increase heces-
sary.
The amount Of deposits at four per cent now ex-
ceeds nine millions, will become steadily larger
II the restIictlon be removed. Payments VIII, OF
course, De frequently required bat the pressure must
be very great which will reduce the receipts below
them, while, IN ordinary tunes, the latter Will con-
stantly exceed the former.
II Rsy indeed become practicable TO reduce the
rate of interest even below per cent with adv, u
tage. Whatever the rate allowed, the average ex-
ceeds OF deposits above reinDoI sementg will cons
tute loan to the Government at that rate. In Or
der 10 retain the average exces. at its INA xmnm it
may be well 10 provide by law. that VI the United
States not hereafter authorized TO be issued there
shall be always reserved in the Treasury, OF from
issue an amount not lees than ouethIrd tue amount
deposited
Such provision would make the Treasury the
best Of Savings Banss, and by It's guarantee ef