, 1863-01-22

H41On AAnA AN0kG8-401Al.AO-k01 |
-Proposed Repeal OF the Sub-Tren-
snry System-$ccretary Chnse's tx
PLANTATION Concerning tho Non-pay-
the Mcdowell court OF 1nqufry-The
Cabinet Again : -mcC1eroand, Sher.
man mud Ha11eck.
lF1om our Own Correspondent
WASHINGTON, January 10, 1863. t
Financial measures will engross the larger
portion Of the remaining six weeks of the
present Congress. The two schemes before |
the House arc the Ways and Mems Commit:
tee bill, and bir. Hooper's bill, which repre-
sents the wishes Of Secretary Chase. I, think |
that the principal features Of the latter bill are
not fully understood by the country. The +
first section authorizes the Secretary Of the |!
Treasury to borrow $500, COZ, 900, by means Of |
twenty year Elk per cent. bonds, or three year |
six per cent. Treasury notes, or By issuing de- |
mand notes {greenback9, or by any, or oil, Of !
these methods, in his discretion. But it pro- |
vidcs that the bonds, and intercst-bearing |
Treasury notes, shall not be sold below par. |
This Tould seem to compel the raising Of the
whole 5000, ,0o0, 900 by printing and issuing |
grcenbacks to that amount, unless United
states bonds should: advance from four to |
six per cent. upon the present market
quotations. The latest salcs Of six per cent
registered bonds were at 81, and coupon bonds
st SO. It is not likely that proposition for q
lar1,c additional issue would send them up to
mar If they cannot be sold at par the wants
Of the Government, under Mr. Hoopcr's bill,
must be met by an unlimited issue Of demand
notes, for the sum Of 500, ,000,o is, practi-
cally, unlimited. By the time we shall have
reached that issue, in addition to the $250, ,O0o,-
0C0 already issued, the whole system will have
crumbled, carrying private capital and indus
try, as well as public credit, into the grave
which swallowedup continental money and
the French assignats. The principal objection
to the bill among members of Congress, US
shown in the debate thus far, is that 1t confers
extraordinary powers on the Secretary, narnc-
", the power to raise 5000, ,0o0, GOO in any why
he chooses. But it seems to me that it really
confers no power on him except to Issue
greenbacks, unless he can devise some way
to. carry United States six per cent. bonds
up to par, and hold them thcrc-a task which
the bill is not likely to facilitate.
TIE WAYS AND MEANS BILL.
The bill Of the Committee Of Ways and
/ Means imposes two restrictions only on the
Secretary Of the Treasury. 1t limits the fur
| thcr issue Of demand notes to $500, ,000, 900,
| and the issue Of Understanding Treasury
ter being 5.471z per cent. per annum, SO that
! each 800 sllnIl draw one cent aud half Of in-
tcrest per day. The remaining $500, ,00o, 600
| may be raised BY six per cent. bonds. !.
| PRETENDED TAXATION or BAEK NOTES.
| There arc two other features Of the bill to
bcconsidcred. The seventh section proposes
to tax bank note circulation two per cent.
per annum in the following homeopathic
mode: Of banks having capital OF not more
than $1c0, 900, all notes, In excess Of 90 per
cent Of that capital that. is, 80 per cent. Of
their circulation to be exempt from taxa
tion); of banks having over s1oo, 900 and not
over $200, Geo Of capital, the excess over 80
per cent, and go on, in a sliding scale to
banks having over s., 600, 600 capital whose
circulation over and above 25 per cent Of capi-
tai isto bic 60 taxed. This amounts practi,
cal1y to no tax ut all, aud it seems to be dc.
yiscd for the purpose ofappeariug to tax bank
circulation without doing So! The country
banks Of New York are perhaps fair sam
pic Of Tie pahhs OF Tue "hole country as re-
CARDS the relation Of capital to circulation.
They are 252 in number; their capital, III
round numbers, is SIC, ,o00, COO, and their cir
culation Sc, COX, COO. The. average capital o1
these banks is $159.000- each, which would
bring them, if taxed at all, into the 50 pei
cent. class. But their average circulation Il
,,1,- 81, mn .rhoro,e en wv oo,+ ~ +1,o;,
ons elll'o9o' NV, mue.'.'e 80. " pst .en1' " tu1n
capital "ouid allo" lnem an average eltcula
tion OF $127,20Q each, before they could bt
reached by the proposed tax. Therefore ths
o,ro,o+;o,,ae ~, Na,x- Vol, ,,on,. !,
en.o44 y. ~ 49," - sou'1 ,1".o =
not only notanected oS tne lax bnt thcy VII
be actually permitted to issue an average o
TO their present circulation, before bclnt
affected by it. There are single banks whicl
. would be required 20 curtail their circulation
but the others could expand to a correspond
, | ing amount. The provision Will have tn
effect to cquallzc circulation, but not to re
press the volume below its present bounds.
, PROPOSED RErEA1, OF TIE suB-TEEAsUR
e SYSTEM.
Tho ,t,,or 1,ror;s,o, of +1o Nav, ,,,a .f.o,
i ,5;eoi o,ana1o ~ f:,r7, ~ ,a1I;o
III nftj,o oorcrnmert IN ;ts g,ouctorv ~ tranaa,
r. t;ons nd ;s naiica7lv wronr II rencais n
aSmi,- -Trc,snr7: svstcm j.. hE anthoriv;n@ IL
Il saornt.rv ,Saho s.t oi1o.r ~
c toitni,oS tro1 1no,,s c,,i i,.os,,"i a1to,1,,
onta4Hcu !ioA 1oahs anu HlteIl1ai TeFcau
70 eS dcEostted IN Sosse7st PARKS. 20 the cfcu
It "ot the treasurer OF thc United states, upo
"a "depositing, by Sold banks, With the Urea:
"nrer, all amount Of United States bonds 9
tIr1