Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1863-12-17

been The benehts oil though
st far the best aainabe condition. are felt by all
The circulation has been distributed throughout the
try and every where acceptable. IL qualification
know that tribunal so distinguished Dy the learning and
York. has given the sanction Of its Judgment to the cons
tutional validity OF the law.
So too real and great advantages derived from the
wide diffusion Of the debt among the people, through bust
transactions, and through the exerons Of the off,
OF the Department and the agents for loans already
noticed.
1t is impossible to estimate the advantages to national
unity and national strength secured by this distribution
Every holder OF note bond from i've cent fractional
note to five thousand dollar bond has direct interest
IN the security of national institutions and IN the stability
OF national administration And it another and no small
advantage Of the distribution that the burdens Of debt
always heaviest when loans held by few and especially
by foreigners diminishing proportion as the receivers OF
interest become identified with the payers of taxes.
Another incidental good growing from the bitter root OF
debt has been fully explained in observations heretofore
submitted the national banking system Except through
such system way is seen to the complete and
permanent establishment Of uniform currency; and
can only be safely and firmly established by making use Of
portion Of the national debt security for the national
currency.
In these several ways may such great evils
brought upon by rebellion be transmitted by wise
alchemy, into various forms of utility The Secretary has
endeavored to this alchemy, with what success the
country will judge when time aud trial shall have applied
to his work their unfailng tests.
Additional Loans Required.
Meantime additional loans required and legislation
now stands several modes open.
The limits for deposits for temporary loan are fixed at
one hundred millions of dollars The amount of this de-
post the first day of December had been reduced to
100 and payments Of $i0 600 600 had been made
fined within the narrowest possible limits, and hardly
exceed twenty five millions The refow of deposits has
already begun and will probably exceed reimburse
ments and arrest payments from the reserve. The
whole reow beyond the amount OF these payments will be
available part of the additional loan required and may
be stated without much rick mistake at twenty-five
millions of dollars The Secretary perceives solid
for retaining the restriction loans, this FORM to
hundred millions 1t may, he thinks, usefuly
removed As the advantages Of hese deposits becom bet
and generally understood the loan in this form
will doubtless in the alb of restriction, be largely In
creased aud the possibility of demands for reimbursement
beyond to them be fully provided for by
increase of the existing proportion between deposits
and reserve Such arrangement the Secretary ncnes
to think, would operate bene6ciay by increasing the
amount of currency when unusual strngency shall require
increase and reducing its amount when returning
shall allow reduction.
Another portion OF the additional loan required may be
through the sale OF the remainder Of the bonds
known Eve twenties The amount hese bonds unsub
scrbed for the first of December $l0l 059 600
1t will not be difficult to dispose of these at par AMI it
possible that small premium may be obtained part
In former report the Secretary placed the limit to
which the loan n the form of certificates of Indebtedness
could be- carried at hundred millions of dollars Elk
perience has shown that be carried to hundred
and fifty Millions and that its natural limit is about that
On the first of December the amount Of these
t6cates $l45 100 900. 1t would be unsafe there
FORE to rely any substantial increase of loan in that
FORM
No Increase of Treasury Notes
The limit prescribed by to the issue Of United States
notes has been reached and the Secretary thinks it clear
y inexpedient to increase the amount When circulation
exceeds the legitimate requirements for real payments and
exchanges, addition to it's volume will increase it's
ue On the contrary, such addition tends inevitably to
depreciation aud depreciation il addition be continued
will find its only practical limit in the utter worthessness
of the augmented mass.
When Congress authorized the creation of debt, to
certain extent in the form Of United States notes. and inn
pressed these notes the qualities of circulating
dum its action justified by the disappearance of coin
consequence of the suspension of specie payments by
the necessity of providing medium in which taxes could
be collected loans received and payments made and by
the obvious expedency of providing that medium in the
form Of national instead OF resortng to the paper
banks Under the circumstances it's action wise and
necessary but it equally wise and necessary to limit
the extent Of the issues by the necessity which demanded
them. They wanted To fill the vacuum caused by
the disappearance Of coin and to supply the nd ona de-
mand created by the increased number and variety of
money payments. Congress believed that four hundred
millions would suffice for these purposes, and therefore
limited issues to that
The Secretary proposes no change of this limitation and
places reliance therefore, any increase OF
from increase of circulation Additional loans in this
mode would indeed almost certainly prove usory; for
diminished value could hardly fail to neutrazs increased
amount.
Sufficient circulation having been already provided the
Government borrow like any other employer of
capital temporarily requiring more than income will sup
ply and rely for the credit which will advantageous
loans upon good faith industrial activity, accumulated
though not Immediately available capital and satisfactory
provision for punctua payment of accrung interest and
ultimate reimbursement OF principal
The Future Loan Revenue
To subscriptions for the remaining ve-twenes and de-
posts for temper oan therefore, must be directed all
reasonable expectation of for the service of the
current year. except from negotiations under the act Of
last session The to be looked for from these two
sources have already been stated and amount to 26
059 GOO If this aggregate be deducted from the amount
be- provided by loans for the last months of the
current year. already shown to be 1852 26 $780, there will
remain the OF 1926 500 10 be provided by nego
atons under the act of last and under like
act must be provided in like manner, if the continuance
Of the shall make it necessary the OF 54497S 54S
estimated likely to be required from loans for the sca
year 1865.
The act Of last session authorized the loans suppose
t. be required for the fiscal years 1868 and 1864 and OF
the amount required for the OF these two years
the frat OF December current hundred and fifty
millions 10 United States notes. and fifty millions by loao
for two years five per cent Treasury notes have aread
been provided under that legsl,ton The 80 vel
conceived and expressed that little other legislation for
the loans Of 1864 and 1865 will be required than theapp
cation to those years OF it's leading provisions IL will
doubtless, be thought expedient this session. last
sion to authorize the borrowing in FORM Of three
hundred millions for the aud hundred millions
for the next fiscal year Indeed, the only notifications
the acts oil last adapt to the require
mens Of the current and coming year to be- (I)
the omission Of all reference to United States beyond
the giving simple authority to the Secretary to ascertain
from time to time the amounts destroyed lost and to
replace them by 2 the repeal Of the existing
limitation OF the DE- pOsit loan hundred millions OF