The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1863-12-26
will have reached on ia. aOtb n, -.

I and increase of the duty on distIilrd
spirits to 60cts per gsllSn; on tobacco to
22cts per pound, on leaf, and from ) 10 l2
} cents, according TO the quality, on h,Asu.
featured; 10 cents per gallon on the crude
petroleum cents per pound on cotton.
The repeal of the cotton aud petrole um
drawbacks, and various other change Of
the internal law to augment the recipe
The enactment of such laws will be .n in.
crease Of the Internal Revenue to the
amount originally estimated. of $lJuOOO,.
coo year required by the strongest con-
siderations Of public policy Hitherto the
expenses Of the war have been defis 81
hy loans to an eXteEt which Eotiinc 'ut
the expectation Of lis speedy terminS -
could fully warrant
1t will no. escape observation that ~
average rate of interest is NOW Incr-..i.S,
and it is obvious that it must continue to
increase With the proportion OF the Ins
! terest Urarlng to the non Interest tearing
debt, and as the amount OF the latter, n
| sstlng of Cnitel States notes and fraction
! al currency. cannot be mat sriaily augTgsat-
/ Ell without evil consequences of the rat
serious character. the rate OF interest rnt>t
! increase with the debt, aud approach,
| continually the highest syeraI. That
! must be greater or less in poTpogti1n to
.
/ former repof, the Secretary placed Ia,
/ limit to which the 10 in The form Of
/ certificate. of indebteluo.s could be car
red at SlOoO0p0OJ Experience Las
shown that it can be carried to $l50,000,>
. UJj, and that it, natural limit is about that
sum. Un the first ct june the amount of
these certificates was $!ij.12O,cG0. II
would le uusif,, therefore, to rely on any
substantial increase Of he loan in that
, form. The limit prescribed by law to
the issue OF United States notes ia. been
reached aud the Secretary thinks Il clear
/ y ineXpediert To increase the amount,
sufficient circulation haTing been already
provided.
iHc EoT...n-.-t Ii. ust nov borrow, like
any o:!.-- employer G.. capital, temporarily,
aad re9uir.u, more tLaa income wi! sup-
ply, ana reiy foc the credit which viii Sc
cure siyan r -eous loans upon good faith,
industrial activity, accumulated, though
not iGlla cLiatoly available capital and
satisfactory provision for punstu-l pay ynlrnt
Of securing All uttime:e reimbursement "
principal 10 Subscriptions for the re-
manning j-20s and deposit, for t-mpoI.ry
loans, therefore, must be directed al ieS-
sonaolr expectations of means fol -~rv.ee
e the current year, except from nesocia-
tiolls u:Ger the act OF last session.
The sums to bs los& ~ for IoA tEess
. tso sources have already b-zn stated, sd
amounts to sl26 GJ9G"D If tn. aggregate
be deducted from thu amount to lie pros
vded by loans for the last moutLs u lAe
current year, already shown to Sc 1882.
30 53J. there viii remain Ike sam OF
1920, lCi 9sG IA be provided 10y rcsocis-
ti0as under tae act ot last .e=sions, and
nu9-r some like set, mist be provided IN
A like manner If 4 continuance Of the AR
shall make 1t necessary, the suIn oi sf4i-
. 91>.JtS, estimated a. likely to be required
. from loans from the fiscal year of l,t5.
/ The act of the last sc.sioa authorized
loans supposed IT, Lc r"4u!red Tor the f.rsl
year 1868 ai.i - !, -.d of the amount re-
qg.r-i Cor the service Of these two srars,
10 the !: of December nov current, $50
/ Ouura0in United States notes and s3Jo,-
! ,''-'-'rvs1 ryE ,S-r~ .t fivs l%B
/ ccAt treasury notes have already t.cn
/ reF .Ie.l nud-l that legislation. t'he set
I = 80 we'll conserved aud epxges.sJ. shat
ltt.e other legislation i.r the loan OF lsC5
end le6j VIII be rcsUirc,, than the srpii-
cs>;.o" 20 ;Lese year. of It's leading provi>
/ sons
I 1t aill doubtless be thought expe.i:.st
this session 10 authorize the borrowing n
some form Of $30O000,000 for the cu,I .nt
and sj}UD0J,uJ0 for the next fiscal year,
. Indeed the only h.od .ications Of the act
of last session necessary TO adapt it TO tha
ieQu "u.eHts OF the current and coming
, year 10 fist ascertain from time 10
time the amounts destroyed or lost. and
to Lace them by new Loans; secoud, the
/ repe OF the existing imitation OF the de-
! tpoitloan 10 Slg0,0CUOOO, and the sub.ti-
tuition OF provision for a reserve eqI1l ir
amount to half the deposit.
Third. The permission Of the negotia-
ton Of lesns, redeemab!e absolutely at
pleasure, or al pleasure after time fi-ed
not more remote than forty years, aud thu
omission, perhaps, Of the clause taxiCs CIR
cula.ion, and deposits, that being -'ors
appropriate to an internal revenue bill.
1t is hoped that the other provisions OF
he last act may be retained in the new
lean act Under such legislation. ths
Secretary entertainS little doubt OF being
able to obtain whatever funds will be need
I'd through loaus, AZ reasonable rates OF
interest for Bonds or Treasury NOES. For
/ a wanto,this confidence, however Ii c relies
much on the support ts be given 70 the
public cred., 10y the National Banking
system.
There il, a. lac thinks no possibility OF
| a permanently successful administration
Of the finances under circumstances inyol-
wing the creation of a large debt, unless
iosrs can be effected on a medium OF scn-
eral 2l.d equal credit throughout the
couutry, and not liable To variation In
quantity or in value, except under the
operatioa OF National legislation and IL
general lars ef trade.
The Secretary asks the special atten~
tioH of Congress 10 the proposition for a
uaform ate of interest, and the rspesl OF
the section which connects the issue oil
ratiosal currency in degree with State
banks The Secretary also recomu. ends T.
provision TO be p.ade, by law, for the do
posit with national banks, and also with
! the Trsasurers at such rates of interests,
and for such periods of time Is the SeCse-
tary may prescribe of moneys paid III sad
invested under ti:e cIi,!s g ibe judiciary
Courts
1t is not i;npossiLIs that IN this way
many million, would be = aced il tbs
Treasury at moderate rates oi iDterest.-
The Secretary ref r u Congress the aues
ton whether the duty OF national
currency and ilie deposits OF aatIoral
banking associations shall correspond with
the duties Oh ether circUl ,tion aud de-
posts.
He thinks for tha present. at least,
some discrimination in !avor OF the nation
al associations may be properly admitted
IN consideration OF the indispensable i'm
portance Of a national currency not ADAPT
ed only the United States notes 10 Temporal
ry emergencies, hui permanent in its rsry
nature and adequat to all demands Of
business, and capahieat no distant period
Of being made equal and convertible inss
CON- and therefore lts re al representative
and equivalent
A drunken man made a speech torn thS
window of Major General -, the os.'r