The New York herald., 1862-12-06

ment Of pubic activity srs n0s Is Important 20 credit
and reveaas than 70 general success in admnisraton
vided, beyond resources available under existing laws n.
soD soi me s cussn. e year. &C. and for the en-
provide these amounts loans In some form must be
negotiated.
rms SECRETARY ON m. sunrH.. ISSUE or UNITED STATES
The Secretary has already expressed the opinion with
great Difference to the superior wisdom Congress- that
authorize the Of United States notes beyond the
limit now fixed by law Should any vacuum be created
should doubtless bc filed by United States notes. Should
Congress adopt the proposed by Secretary
II is not improbable that additional issue Of ty MIL
hons be required for that purpose within the year.
and equal additional issue during tho following year.
And II may well be hoped that military successes
districts Of the nsurgont region win call for further is
to supply the place Of the worthless currency which
s ss sa f Be-
creonary power in view Of these contingencies should
be 50 limited as 70 allow no increase Of aggregate crca
ton beyond the clear demands OF real business.
considerable additional sum may probably be OBJ
tanned by removing the limit temporary deposits The
standing Asss repayments TO depostors The treasury
OF the government has been made the savings
there reason e believe that tt tWsntysVS millions may
90 received beyond tho maximum now axed during tho
ouR oHmp lxl1Asm 10 N ON LOANS
But the chsef reliance and the safest. must be upon
losns without any issues OF United states notes beyond
for tho whole required for the can De
readily obtned at fair rates. and may be confidently
viii be 60 well understood and the restoration Of its tef
rtoria integrity well assured that capitalists will not
hesitate to supply whatever may se needed Tor the subse
But in order TO tho advantageous negotiation OF loans
tho action Of Congress is necessary.
As on important element o( facility ID me-
gotiation, the plan for banking associations has
been already considered. Little direct aid Is,
however 70 be expected from this plan during the pre-
nor war; drrn tho nowtV Tq1o
operation Of associations organized under must, ct
arss be restricted mainly to investing United States
notes In bonds, issuing circulation based on these
bonds and transacting ordinary tho notes
received for the bonds cannot be ressued without nju
rioas imitation Of the circulation they must necessarily
Of government United States notes withdrawn will be
placed by the amount Of national circulation furnished to
the associations Tho immediate advantage to the go
vernmea will bo found in the market created for bonds
and the support thereby gyen to the national credit.
The more general which have been described
must attend the gradual organization Of banking assoca
tions and will only be fully apparent whom the national
circulation furnished to them shall become the establish
ed and sole note circulation of the country.
Other legislation s therefore needed.
TiIE ACTS OF CONGRESS AUTHORIZING BONDS.
Tho act OF last session authorized the Secre-
tary to Issue bonds of the United States, al.
ready often mentioned lvetwentics, 70 the
Of them Tor coin United States the market
value thereof In tho act authority given to
issue $3.50 900 in United States notes. which authority
was afterwards enlarged 70 $3.50 900 and It pro-
vded that any holder OF to fifty
dollars any multiple Of City, might exchange thcm
The effect Of these provisions make negotiations
OF considerable amounts imp0ssible for considerable
amounts seldom takon, except with view TO resacs
profit and resa.cs any profit arc impossible under
the law Negotiations below market value not allowed
and II not allowed the taker or the bonds expect
advance unless market value considerably below par
shall become established The makes advance above
par impossible by authorizing OF United States
notes into ponds at tnat rate.
RECOMMENDATION RErEAL THEM.
The Secretary respectfully recommends tho repeal Of
restriction which Congress did not intend: and ,he
second has been followed by tho inconvonicnces which
we're feared rather than by the bcnehs which
peCted. Convertiby by exchange at will is OF little
advantage to the holder of the notes. the ses
which secure their recsvAby for all loans make them
practically convertible Whcrovcr volume Of notes
reaches point which loans be effected fair
to the country and desirable takers loans WILL Of
course be made and ample opportunities Tor conversion
offered.
should Congress, however be Of opinion that these
clauses should be retained II will be necessary provide
for other loans ut rates favorable the holders
than convertbility into ve-wenties. This be
either by authorizing bonds at longer time by ncreas
ine the rates OF interest offered.
The Secretary cannot recommend either except
as an alternative to no provision at all.
1Hs rIEtERENcK FOR sgvES-TIfRTY BONDS.
As such alternative hA would prefer tho issue Of 80
three years bonds convertible into vetwenty skies at
or before maturity and OF smaller notes bearing an nte
rest OF 65 ceut proposed in his first report.
discretionary power may, perhaps, be advantageous
ly conferred the Secretary to be exercised exgen
oes require or allow He es not covct the respon
sbi titles belonging to such power Il would shrink
from such exercise Of it as in his best judgment the
public good would require He believes it, however
be ry lie believes that the tina and oil
the Hve.tweny loan authorized judiciorsy deter
mined and he believes that II the suggested changes are
made in the law the needed supplies be obtained
through these looms. No prudent legislator, at time
when the gold IN the world is increasing by hundred
millions year. and interest must necessarily and soon
decline will consent 10 impose on the labor and business
Of the peoples fixed interest Of six great debt
twenty eirs unless the necessity far urgeat
than believed exist The country h,s already
ressed the results Of such in the payment in
1856, OF than four and half millions dollars
the privilege of paying debt OF less than foryon mil
lons twelve years averaged time before became
due.
GENERAL VIEWS OF THE SECRETARY
The general views OF the Secretary may therefore be
thus briefly summed
He recommends that whatever amounts may be needed
beyond the supplied by aud through other
indicated modes be obtained by loans without increasing
tho of United States the fixed
by law unless clear public eyigency shall demand it,
He recommends also the organization OF banking
catlons tor the OF the public credit ana Tor
the supply to the people Of safe and anform currency
And he recommends no change in the law providing
ior the NEGOTIATION Of bonds except tho necessary in
crease of amount aud repeal of tho absolute re.
sticon to market value and of the clauses authorizing
convertibility at will.
though the great difficulties which vast
den and protraced expenditures impose him. ventures
nope that he may stI be able TO maintain the public
credit and provide Tor the public wants.
NECESSITY FOR UNIFORM wEIcHrs AND MEASURES.
In his last report the Secretary took occasion TO invite
the attention OF congress the Importance
weights, and coins aud TO tho worth or the de-
cimal system in the commerce of the world. He now
to suggest that the present decentralization OF
gold may wek be avaiied OF for the purpose OF taking
considerable step towards these great ends II the
half eagle OF the Union bs made of equal weight and
fneness with the gold sovereign OF Great Britain,
sensible injury could possibly arise from the
change: whle the resumption Of specie payments its
great advantages would be felt in the equalization OF
changes and the convenience OF commerce This act OF
tho United States moreover, might be followed by the
by Great Britain OF the federal decimal divisions
the CON- and thus o most important advance might
secured towards International coinage with values
decimally expressed.
Under the provisions OF the several acts OF Congress
relative trade and between the loyal States
and those and parts Of states declared
surrection general regulations have been pre-
scrbng the conditions under which that trade and
TO limited extent may bo conducted his trade
has authorized only with sections o the country
which, since the proclamation OF the President the au.
thority OF the government has been bshed by
military occupancy No licenses permits have
granted FOR mmerce with inhabitants Of nsurrection
ay districts beyond the limits or such occupancy Under
provisions or the ah section OF the July l3