The New York herald., 1862-12-06

reached BY all banks mprovfdenfiy msnAGeo WoA4 NOS,
Aoweyer be reached Immediately, at The time
By eli institutions by tho same rate Of progress In ell
pars the country But excessive circulation would
surely be thrust upon the community forming cupren
cy everywhere but rrogulary deprecated destined in
par TO worthless and certain and derange
beyond measure the business Of tho peope and TO
barrass II arrest the operations OF the government
Loans negotiated IN this circulation would be simply
changes OF the debts OF the nation bearing interest and
certain 10 be paid for the debts OF multitude Of cor
poraon bearing no interest," and certain in part never
20 be paid.
This but partial representation Of the consequences
appehended rom the receipt Of bank notes for loans 10
the government Ther character made IL impossible for
the Secretary TO recommend such negotiations and wholly
improbable that Congress would authorize them re-
commended.
NErsSzTy FOR ISSUING NOTES.
No other mode q providing, with any tolerable de.
gree prompttude for the wants of the army and navy
and the necessities OF other branches OF the public
vice seemed likely to effect the cb ec with little pab
lie Inconvenience ard considerable public advantage
the Of United States notes adapted circulation
money, and available, therefore, immediately 60
vernment payments.
II was necessary that the Secretary sh 9ui
mend this plan TO Congress. In his report the com
menoement of tho session he had pointed out the ncon
ycniences and dangers Of circulation Of government
notes, even though convertible specie, and had
dwelt especially on the probability that sach circula.
tion would ultimately sink into an rrcdoemabo paper
currency Al that time he expected continuance OF
specie payments, and hoped that a banking system
would be authorized which would at once furnish q
sound circulating medium and afford firm support to
the public credit Neither the expectation nor the
hope, however, had been realized and a choice was
numerous and unconnected banks in various States
and currency furnished by the government which
the governments could and would. excep. IN very
prov lie for and protect With these alternatives before
him. Secretary had already declared his
preference for circulation authorized aud issued by
tonal authority But the cn htened Senators and lepre
sentatives who composed the financial committees or the
respective houses required statement of his
this subject They cea ly the necessities created
by the suspension and at adopted the de-
mandcd by them. Tho Secretary, concuripg entirely in
a,ar ,sn hadV d,txt
giving such information and such aid they called for
and he could supply.
TIE EMISSION or $50 600 900 IN NOTES.
An emission Of so Oo0ad been authorized by Con-
gress at the July session. 1861 lot with the design Of
furnishing general currency but for the purpose Of
making good any differences between the amounts OBJ
tanned By loans and the required by the public
vice. OF these notes $33 400 900 were in circulation at
the time OF the suspension Up to that date every note
presented for payment had been promptly redeemed in
coiu After the suspension additional emission of
$40 GOO was authorized on the 18th OF last February
10th these issues amounting together to $50 000 000
made receivable for all public dues including customs.
now became the duty OF Congress merely to pro-
Treasury but to create a3currency with which, until tha
close OF the at least loans and might be paid
the government debts to individuals discharged and the
business of the country Transacted Nothing less would
satisfy the need Of the time.
This duty Congress partially performed by authorizing
emission 500 600 900 in United States notes in add
tion to hs $50 900 previously authorized making
$3.50 900 600 In all The $40 COO issued were made
receivable for all national loans and dues except customs
" "ANA "oo ~ oPoOtS VI uotce VI tHc
first two issues
SECOND ISSUE or $50, 600 COO.
At later period Of the session, in view OF the with
drawa Of the sixty millions receivable for duties from
circulation and OF the expediency of providing perma
nent resource for meeting all demands upon temporary
deposits In the Treasury, Congress authorized further
esue OF $3.50 000 OF which however 900
70 be reserved from issue until actually required pay
meut Of deposits.
THE Iseuy POSTAGE STAMPS
AZ still later date Congress- upon the recommendation
OF the Secretary authorized the use Of postage and
n rttnna l,t~a
dent to metallic tokens or coins reduced in below
existing standards.
sion 81 two hundred and fifty millions OF dollars III United
states notes, and further emission of fifty millions IL
needed for the payment OF deposits or these emissions
the sixty millions receivable for customs avail
able as circulation but might be replaced paid in BY
notes Of the new issues which thus ayaab So
that In the end total circulation of hundred and
my millions might be reached and, in improbable
contingency increased by fty millions more An ennis
sion OF fractional currency as just stated also author
INTEREST ON IRMPoRAY DEPOSITS.
In aid OF these provisions for public payments the Sc
ments authorized the receipt temporary deposit at
interest not exceeding five por cent such sums as
Mgn' % oe onerea no, eAceeang In tne whole one hun
tors might choose to them Of certificates Of
indebtedness payable in one year and bearing six per
cent interest Congress also authorized the Of
tional bonds TO the amount Of FIVE hundred millions Of
dollars, into which the United states notes Issued might
be converted At the will of the holder 1t was
that these bonds should carry an interest six per cent
In specie and be redeemable alter Eve and payable in
twenty years They have received the name OF FIVE.
twentes or five twenty skies.
SUCCESSFUL OPERATION or THESE MEASURES
These measures have worked well Their results have
than fulfilled the antcipatons OF the Secretary Had
other urgent demands on the attention OF Congress
itted the consideration and adoption OF the suggestions
which the Secretary ventured 10 submit in favor Of
therizng the formation, under proper general law OF
banking associations issuing only uniform notes prepared
and furnished by the national government and pos
ing reasonable tax on the circulation OF ether insi,u
tiODe nnlnCjui necessity would perhaDg demand
additional legislation for the year except such
experience mgh suggest for the pcTfectng OF measures
already sanctioned.
PRACTICAL TIE LAWS
short statement will exhibit tho practical workings Of
To the lst day July 1882 s57 s26 1i6 81 had been
received and were remaining deposit United States
notes to the OF S5s 591 80 had been issued aud
ip circulation $40 Ssl 979 70 had been aid
thcscs Of indebtedness; and sos 345 9 Sc had been
paid in cash. Not single clusition from any depart
mont upon the Treasury remained unanswered. Every
audited aud settled claim on the government and every
quarterTastCrs check for supplies furnished which had
ched the Treasury had been met and there remained
III the Toasury balance OF Sl3 Os3,546 ST.
The reycgses OF June, July ana August affected, of
course juriously this financial condition. The vast
authorized by Congress and directed by the President,
made exhaustng dema nds all available The
measures Of Congress enabled the secretary
provide not fully yet almost fully for the constantly
increasing disbursements The actual payments other
than for principal Of public debt during the quarter end
ing the 30th September sll1 0s4 445 1 during
tho month OF october they $40 2 $40 o. and dur
ing the month Of November $50 s47 o77 81 while the
accumulation of requists beyond resources amounted
less than the fourth OF the aggregate OF these
namely, % SsS -35s ,,01 30
1nE GREAT SOURCES FURTHER SUPPLIES
II rcmaius to consider what urther resources
for satisfying the debt existing in the
form OF requisiiions, and meeting other present
and prospective demands upon the Treasury aay be pro-
vi ed under existing esisaton aud what additional
sures may be bcnecaly adopted for the Improvement of
the and for tho establishment the public
credit by the discharge with the greatest possible
promptitude and punctuay Of all public obligations
The whole TO borrow money under the OF July
1851 authorize natihnal loan, is exhausted The
only important laws under which for meeting de-
mands the Treasury be had those enacted
modified by Congress at its last session.
Those OF two general classes-namely those which
provide from duties and taxes and those which
authorize the obtaining Of money by loans in various
forms.
The laws Of the Hrst class (ls the several
imposing duties on imports and t2d the act TO provide
internal revenue.
The laws Of the second class s the act authoriz
ing the ssueof United States notes. and OF six per cent
bonds OF the United States redeemable after five and
payable In twenty years 70 the amount OF five hundred