Santa Fe gazette. [volume] (Santa Fe, N.M.) 1859-1864, 1862-07-19

From the National lRtsig,ncer.
"- The National Currency.
Our readers are aware that bill has been re.
ported from the COMMITTEE Of Ways and Means
10 the House of Representatives authorizing the
Issue Of Sl5O0OO0O Of Demloi Treasury Notes.
beside those already authorized, Of denominations
not less than FIVE dollars, to he legal tender and
receivable for all Government uutS, debts. oa'S,
and taxes, except duties on imports and interest
on Government bonds, and interest bearing n1t's |
A section Of the bill rep'als the PRESENT mita
tIpn upon temporary dcpsltes Of Notes mud
authorizes the Secretary Vi The rriIs'lry receive
them to any amount not exceeding one hunirrd
millions, IN sums Of not less than one hundred
dollars, and ior not less than thirty days. on in
terest not above Eve per cent, provided lint one
third of the aggregate depOsIles shall be reserved
in the Treasury or from being issued under this
act to secure prompt payment ol such deposl'S Oh
demand.
Another section empowers the Secretary To
borrow such part Of the two hundred and hiy
millions authorized by the "act 10 aulhOlze na'
tional loan," &C., passed y,ar ngc, as shall nol
have been borrowed within twelve months after
ito passage.
The bill. as reported by the committee, embo,
des with the exception OF the suggestion tna'
notes be issued Of less denomination than i've
dollars, all the recommendations submitted by MI
Secretary Chase in letter addressed To the Chair
man Of the Committee Of Way, atd @ears under
date of the 7th instant
The announcement Of the foregoing plan for Lb"
increase Of Treasury notes appears tu have taken
some Of our contemporaries by surprise, and JOUR
nails which were among the foremost in iNolng
the passage Of the earlier bill authOrz ng the
issue Of hundred and fiity millions O such nutes
and declaring them legal tender, IRE somewhat
disposed to shrink from the entertainment VI the
pending proposition. The New York CONNER
ciu Advertiser opposes the plan with some prn
Dental considerations inspired by the cOnvictiun
that We have reached the point bfyOnd VIII Oh it
would not be safe to push the experiment That
has thus far worked SO well. Oar coutemporar"
says: at Is precisely at this point we begin to
'apprehend danger The public have been 50 in
'toxcated with the effects OF Il moderate stlmu
ant arOuslng them from state uito'p 'iity that
tits prOposedto trythe virtues Of a second 'uni'
bier"
The present financial situation, SO far as it de
pends on the utterance Of Treasury notes, is thus
iucidly stated by Mr. Secretary Chase in tho letter
to which we have already referred:
The act Of July II, ls6l authorized the issue
OF S5OOOO0O0 in United States no Us payable Oh
demand and receivable for customs. This author
ity was enlarged under the act Of Fcbruay :
1852, by the addition Of SlO,lOO,UOO -muklng
S6000O0OO in oil.
The acts Of February % and Narthl7 1862
authorized Temporary deposites in the Treasury at
rates Of interest not exceeding Gveper cent MOI
fora greater aggregate sum than S5OO00.0OO. =
The act Of February 25, 1862, authorized the
issue of Sl50,O00O00 in United state' notes
proyided, however, that the demand mites ISSUED
under former acts should be rtired aud cancrl"C
as rapdly as practicable, aud that the aggregate
of such notes and of the United States notes tC
he issued under this act should ut no time "xcee'
Sl5O,0OO,0OO All the nOtrS to bp i'snei wer'
made legal tender, hut none except the denant
notes. were made receivable for customs,
Under these laws S60O000OO indenlOnd notes
receivable for customs. have been is:ued and 500
100000 in notes not SO receivable. The aggrpg
pate now outstandlngis, therefore. Sl5OOOO,OO'
being the whole amount authorized by law.
or this aggregate about $S6 5nOO 900 in deman,
notes are held by banks and capitalists g0'l ~
used as circulation, being held, in consequence .
Their receivabty for customs, at premium 9
from "a 10 | 4 per cent, aud about 81 10000
arc held in the Treasury for circulation.
The whole issue Of S6OOOO0 O0OO I'm demand note
NAV thus be regarded us practically wIthlmw
from circulation. This withdrawn Leaves only Ii
issue Of fS900O0,000 Of United States notes M
receivable for customs. increased gradually by ill
substitution Of these notes fui the demand nutr
cancelled from which conversion intO bands n
deemable after FIVE years, and payable in twrnt
years, called for convenience five twentles, eau b
expected to bp made.
With such an exhibit of the financial situotio
IL would be falIacious to expect that much will i
done in the way Of funding these notes frnm t'
present volume given to thlmhy tho ontS'aln
issues. And while legul tender Treasury mt,
arc fuudabe in Eve per cent twenty year Unite
States stock redeemabe after Eve years, n II
option Of the Government, there would seem
be little danger in granting ihc'ncrease asked !
Mr.. Secretary Chase, as any increase beyond Il
monetary needs Of the country na circllatlr
medium will find an outlet in this direction. tn
outlet to the currency ia Mt once the governor Al
the safety valve which will protect u to a gre
extent from depreciation, and aid in regulating Il
money market
Mr. Chase states that so fAr as experience HI
aff,rled any grounds ofpstimate, no safe rrlian
can be placed on conversions Of outstanding Tr
su ynotes into funded stock' to u grentrr nmru
than Sl5OOOO daily, and that tho daily avon'
revenue from castJms during tho past mduth b
been about S23O.OOO, The aggregate daily rercI
from both thuse sources, therefore, clnn'A ha p4
mated at more than $3S00OO- may very po'S't
fall short ofthat sum while the average daily
pendtures canuot be estimated Mt less than o
Million and will probably. unless very cOnslde
Die rstrsnchmsnI srs made, exceed that sum.