The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-18

Committee Of the Whole the State OF the Union with
Mr. Phelps Of Missouri in the chair, and proceeded 20
the consideration Of the special order-namey the bill
TO auhorixs tho issue Of additional Treasury notes
!, Mr. SpAuLnse. (rep) OF N. r.-fhe requirements Of
the Treasury will probably be less than $3.50 900
To meet current expenses the first day OF January
nsxt How 10 this large sum 70 10 obtainedS believe
II can only be obtained in the mode which has
been successfully adopted during the last six months
The financial plan initiated six months ago has worked
well II has exceeded the most sangains expectations
OF its strongest advocates The Secretary of the Trea
sury mends continuance of the plan which has
successfully carried the country through the psrs of
the last SIX months shall cordially Cooperate with
tho Secretary hoping that it may be equally successful
IN the future. IL is duty ~ provide all the
means which shall be necessary TO ray all the current
expenses the first day OF January The bill nov under
consideration deemed necessary Tor that pur
pose and the Secretary that the condition Of
the Treasury renders prompt action highly desirable
During the pending war, neither the President the
Secretary OF tho Treasury, Congress- Ok limit
to the expenditures OF tho government, and cannot
therefore, fix limit to the Obligations to BIO ISSUED
its credit All that the Secretary say all that Con-
gress can declare is that the President Commander
nChier by his subordinate officers, contract all
the debts which shall BIO necessary TO maintain the army
and navy, and all other expenses Incident vigorous
prosecution OF the The largest LATITUDE gwen TO
the President. Secretary OF War and Secretary OF the
Navy, in carrying on the war. They have full discre-
iionary power contract all the debts which they may
deem necessary TO amply supply the army aud navy.
All parties loyal to the government are united ia urging
vigorous prosecution OF The war all parties
ought to DO willing TO furnish all the means neces-
sary for this purpose. We must, at any rate
pay all tho debts contracted by tho Exocu-
two in the prosecution Of the war. II wo
could easily figure up tho OF tho bonds and notes
which Congress authorize tho Secretary &, issue
No man not even The President, the Secretary o. War
the secretary Of tho Navy the Secretary 0ftle
or the Chairman OF the Committee OF Ways and Means
or all OF them together can give even approximate
estimate to the whole cost Of this war, they
do not know the number Of years it viii continue nor
what will BIO the final solution of the grave questions in
volyed We are working out grave problem the result
fvIi n M man Inn
this war; and until tho solution OF tho slavery question
is arrived at, anu the OF the rebellion cd,
have no hops VI permanent peace and tranquility
This will take a long time; but how long, is
wise enough 70 determine The debt, all know,
is already large, and that IL is growing oaruy larger
every day Many capitalists and bankers have already
invested all their surplus means in United States
stocks During Tho debate on the Treasury Note bill
january and February last submitted with some de.
gree OF diiicnce 70 its accuracy estimate Of what
J thought the whole debt (noatng as we'll a. funded
deb) tho United States woul DO on the Isl Of July
and also what tho funded and floating debt Of the
United States would be the LIST Of July, 1863 the
should DO prosecuted to that time. Inc me scale
that 1t is carried have not since ana do
not now see, any reason to change tho estimates then
made. then said IL was Impossible to estimate, do-
neiy, what the would and therefor il
possible TO fix limit TO the paper Obiyu
OF the government, either in the form II nots
bonds certificates or deposit, that be issued
during its prosecution. Ire experience OF thu last
months has demons rated the truth of these remarks
We must irss apply all the money collect from
duties on Imports oNcisss internal duties, direct taxes
amount during the current year or money actually
ized) to $125 900 0O perhaps more possibly less
All the expenses OF the and above the
amount realized from these sources must he provided
Tor by borrowing in some form, upon the credit OF tho
government. Paper credits ia form be issusd
during the next fiscal year to very large amount
However much may deprecate 1t, this will be i'm
perative necessity, which cannot avoid However
much this may be departure from sound business and
financial principles applicable to times OF peace
not, must not shrink from the responsibility which
Is forced upon US in the prosecution Of this We
IniIl aytra in
In military and naval, operations. Notes and bonds
be authorized by Congress and must be negotiated
by the Secretary OF tho Treasury amply sufficient to
sustain the army and navy, thu war must STOP II
we have not the money, we have what Is equally
more mportanthe country is ull of provisions, cloth
Ing and the material OF Treasury notes and bonds
issued the credit Of ths government, will procure all
these supplies to maintain your army and navy. The
war therefore, can 80 on and viii 60 on, vigorously II
carry the views submitted 70 by the Secretary
OF tho Treasury ia what form mode has the credit Of
the been thus far used in the prosecution
the war; Five dierent forms Ut credit have been re-
sorted to. Leans to the government for which obga
tons have been issued us follows
Ffra--Ini,.d states notes witnoat interest, made a
legal tender, and circulated money among the people
in all parts Of the Uaiicd States This Is peoples
loan to the government, and the popular mode OF
borrowing over adopted by any government l. has
gvon the country q sound nation currency in which
the peopc have had entire conndcnce. Every man. wo
man and child having in hand five dollar legal 60 nder
green back notc, has directly indirectly loaned
government that amount, and becoming thereby
rested ia the psrpetuty OF the government, is strong
test OF the loyalty Of all such holders Ct notes may be
In their manifestation oil confidence that are
perfectly good Tho soldier and sailor give their SER
vices. risk their lives, aud endure all the hardships
sickness and privaons Of the campaign, aud chserfuy
luke these in payment. supplies. subsistence and
material OF war Of all kinds Is eagerly furnished
these green backs taken in exchange for the This
kind OF loan popular with the people, and beng
without interest," is SO advantageous to the
IL desirable that II should be extended can
DO doue Without unauy stimulating spccustions such
extent as to cause an unfsvorsbe reaction TO the sg
innate tusiness VI the country
Seconi-Ihe sscond kind Of loan has been the issue OF
bonus running from five to twenty years, at six per
interest per annun, which Is advantageous mode
for tho government TO borrow money because the debt
Is then iundcd and 1t Is also favorable to commerce. be-
1t causes disturbance in the moncy market
Of the country provided tho money is taken
from the capital OF engaged in active business but
Is Obtained from capitalists no dssiro permanent
mens, and who only want " use tho Interest
y. This mode OF borrowing must necessarily be limited
the amount OF accumulated capital in the country
held by those who willing to invest 1t in this way.
IL q permanent and safe Investment In the hands of
those persons who want TO use only the interest their
accumulated capital.
Tai,eA third kind Of oan which has thus far worke.
very VIII practice deposits In the Treasury Of The
United States, FOR which certificates issued bearing
per cent interest and which deposits may
be withdrawn from tho Treasury, on giving ten days
notice after thirty DAYS The has borrow cd
$50 COO 900 az this low rate OF interest," AID the bill
beore us prop sss to give the Secretary power 10
extend tho amount to 600. TO guard against
any sudden call that may be mio for these deposits the
Secretary proposes keep hand, In Treasury notes
ready be issued third OF the OF tho cur
deposits which may al any time be In the Treasury
With this safeguard this kind OF loan will be very nd
vanageous to the government a. well to tho deposit
ors.
Fourth-Certifca,es of Indebtedness one year. bear
ing six per cont interest annum, given in payment
Tor supplies trans or alton and material furnished IN
tho prosecution Of tho war This is advantageous
form OF credit given W the government because 1t is for
definite time. and ut tbs customary rate Of six per
cent interest," This form of indebtedness has already
reached about $50 coo 900, and may be still further in
creased under tho law already IN xitence.