New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1862-12-06


ernment demand had stimulated the making aud
issniop of bank notes TO an extent far beyond he
oTdiu;ry needs Of business The increase OF circula
ton thus stimulated would be unlimited, except by
The possibility of obtaining interest on loans OF IT.
or, in other words, by the possibility OF obtaining
credit for it with the community aud the Govern
ment This limit, certain 10 be finally reached by
all banks improvidently managed, would not, how
ever be reached Immediately, or at the same time by
all institutions, by the same rate Of progress IN
all parts of the country. But an excessive circna
ton would surely be thrust upon the community
forming currency every where, but irregularly de-
recated destined in part 10 become w0thlss s, aud
certain 70 tax AID derauge, beyond measure, the
business 81 the people, and TO embarrase If not arrts
the operations Of tho Government. Loans negotiated
In this circulation would be simply exchanges Of the
debts OF the nation bearing interest and certain 10
be paid for the debts OF multitude Of corporations
bearing interest and certain, III part never 10 DC
paid.
This is but partial representation of the coRse-
Qusnces apprehended from the receipt Of bank notes
for loans to the Government. Their charac cr male
Il impossible for the Secretary 10 recommend such
negotiations and wholly improbable that Congress
would authorzs them, II recommended.
Treasury Notes.
No other mode Of providing, with any tOerable
degree Of promptitude, tor the wants Of tie army
ana navy, and the necessities Of other branches Of
the public shrvice seemed likely TO effect tho object
with so htts public inconvenience and 50 oontiden-
bic public advantage tho ssue Of United states
notes adapted 10 circulation as money, and ayaia-
bic, therefore Immediately in Government payments
Ii was not necessary that the Secretary should
recommend this plan 10 Congress. In hs report at
the commencement of the session he had pointed ont
the inconvenience and dangers Of "A circulation 81
| Government notes, even though convertible into
specie, and had dwelt especially on the probability
that such circulation would Ultimately sink into an
irredeemable paper currency. AZ that time he eX-
pecied continuance Of specie payments, and hoped
that n banking system would be authorized which
woud nt once fuTpish sound circulating medium
aud afford hrm support 20 the public credit.
Neither the expectation nor tho hope, however, had
been realized: and choice was now 10 he made be-
tween a currency iunishetby numerous and uncOn-
nccted banks IN various states, and currency iui-
uisbed by lie Government which the Government
could and would, except in very improbable, not 10
say in possihle contingency, amply provide for ind
protect. With these alternatives before hun,
The Secretary had already declared Lls unhesiigtng
preference Tor circulation authorized and i,sued 10y
national authority. Bat tire enlightened SENATOR
and Nepressn.utives VINO compoted the Enencini
committees If the respective houscs required 10 lew
statement OF lis views ills subject. They s.-
clearly tie necessities created " tue suspension, and
at once accepted tho measure demnnded by Them
The Secretary, cOucuTing entirely Intlcg Judgment,
had no duty 10 perform except mat OF giving such
Information aud such AID as they called ior Gnn BIO
could supply
An emission Of $50 0OO, 900 bad been authorized b.
Co9ress at the JuJ Session 1901, rot with The &C.
tigu OF iurulihiug general currency, but Tor tue
purpose Of making good any differences between The
amounts obtained by loans and the suus required
bv the rul be fcrvce OF tntse notes So 100000
were in circulation 6t the tine 0; tie slspsnsipn.
Up 20 that da,o every note presented for eym.nt
had been PROMPTLY redeemed In coin. Aficr the
Suspension On additional emission q $40 Op,OD WINS
gulloll1ei, on the l2ih u last February. Both
theso issues, amounting together 10 J,uOo,VJJ
were nude receivable ior all public dues including
custonf.
Il now became tho duty Of Congress. not merely
to provide the means q meeting tie vast towanas
on tho Treasury, brit % create n currency with
which until The closo Of tie war a. least, loaaa and
ta1es might De rail 10 TIE Government, dcbis % IN
di,idlais discharged aud tho business Of the c1un.
nv transacted. Nothing lea would satsiy the Deed
Of tie ume.
Thin DUTY Congress partially performed by u
tlouzlng an emlss.on OF $50 co 900 Ia Iaued > atcs
uotcs Ia addition 10 the 80 O0),oOi previously ru-
tLOrizcd making clJ0 600 600 va AL TIC StN,pol,-
600 aAt issuc1 made receivable Tor AZ national
loans and dues, except customs, payment ~ which
was required in sPecio or notes OF tie two irsl
issues.
Ata later period Of tho session. in view Of NE
withdrawal oi INC sXty millions receivable i0f d.
ties isoA circulation, aid Of toe expectancy Of pro-
ydi1g eru6LfLt resource ~ meeing al deman ds
ulOu temporary deposit, in the Treasury Cong
sutbOrized fufher issae a. SlojO.),V3J Of Which,
however,, 81. were TO uc ffrefNtl from lrtur
unul actually required for payment Of depofts.
stnnps and Certificates.
AtaG.ll Later dare Cougess ufon The recon-
mendstioa % tie Secretary, authorized the me- ~
postage HLd revenue STAN l a fractional currency,
yreiernrg tls o1ped crt 10 metallic tokens
re -uced IN value below existing standards
These various acs, taken together, authorized The
cuissIru a. s OO1l go IN United States nOfcf,
Ind a further cmiff.on OF fiy Millions If needed,
f.-f Ns af tlgka afnisaffTa
he sX.v millions receivable for customs were 10.
available hs circulation. but might be replaced, as
paid Do hy notes Of tie new Issues which were thus
available, that, IN tho eit total circulation Of
Two hundred aBd hity Millions might be reached,
aud, in nu Improbable contilloDcy Increased by
fly Aillona more An emission Of fractional cur
Icucy. as just stated, was also authorized.
IL a.d Of these provisions FOR public payment,
the Secretary recon mended and Congress, by dill
ferent enactments authorized, the receipt tempo
rary deposit, AT TN interest not exceeding five per
cent OF ouch ar migh be offered not exceeding
in the whole, SlOo, 600 0UO anG tho payment 10 sucI
creditors as might choose 10 receive them, Of ceri
tCItcs Of Indebtedness, payable IN oLo year and
bearing sx per cent interest. Congress also author
lZeG The lsagc Of national bonds 10 the amount OF
500, 900 yOO into which the United States notes
ItsGcd might BE- converted al The will OF tho holder.
1t war provided that these bonds should carry an
Interest Of FER cent III specie, and DO rsdeema5lo
after five and payable IN twenty yearr. They have
received tho name Of lyetweLties or iye-twenty-
s.Xes.
These measures have worked well. Their results
have moro han fulfilled the anticipAtions OF tie
Secretary. lad other urgent den auds on tho a.
tentio' Of Congress permitted tho consideration and
adoption of tie suggestions which tho Secretary
ventured TO submit in favor OF authorizing the for
nation, under proper g0fera. law, Of banking as
sociatons, Issuing only uniform notes prepared ana
furnished by the National Government, and OF i'm
posing n reasonable lag on the circulation VI other
Institutions, financial necessity would, porLapP,
row demand additional leg.slat!on Tor the current
year, except such as experience might suggest for
the periecung OF measures already sanctioned.
Elects Of the Finance Luus.
a Ahnrl siAtcnanf Id min Tho nrncli..I rznrL