The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-12

eny time after the ls Of September 1885, The one hum
made payable in instalments, which fall due every six
months In Gig heen years. from LIST OF January 1864
Inc nrst Rstamen OF principal Of 81 28S 100 payable
LIST Of january 1894 the second Of payable
st OF July 1864 The third loan under the act Of APRIL
1892 s also eight per cent payable as stated
~ te pleasure OF the government at from ten to thirty
years
If Congress should approve the application of the plan
OF the one hundred million loan to the whole debt Of the
then change should be made in the loan Of
April 1852 No bonds have yet been issued under that
ect and the matter yet within the control Of Congress-
modification OF the law must BIO made at any rate TO
meet The reduction Of interest required issued
subsequent 10 LIST OF December the scheme OF finance
proposed relation to the debt by
the States. shall find favor with Congress- further
be- msas Nv OF the loan Of 18th A iSo2 should
from ten years to ve This change will enable the pro-
ceeds Of tho sale OF the six cent bonds by
the States to be applied in discharge OF the eight per
cent at the end OF five years. they cannot DO pur
chased in the market sooner.
ILL., We come now to the third feature in the scheme
namely, the guarantee of the States.
The state OF Virginia led the way and proposed that
by the States Congress id mol see NJ 10 tale anu aeiou ON
ne subject al It's last session. II probably deemedibest
that the proposal should come from the States An
their guarantee 10 certainly beneficial tho credit
Of the than request for aid The delay has
given an opportunity to the States to make the offer The
state OF Alabama has offered or her quota Of
the whole debt upon certain conditions The State
OF South Carolina has offered TO quota OF two
hundred millions upon certain other conditions. COPY
OF the action Of their respective Legislatures herewith
submitted.
ance of selling dsiniipe plan Of Congress is probable
thot rcy State so cordially respond 10 such plan sas
tain the credit Of this government.
Tho great advantages 10 be derived from this exchange
nave already been somewhat developed 1t Is only neces
sary now TO give prominence to two Of them First, the
opportunity which it of converting IN eight per
cent into six cent debt; and secondly the prcnrm
which be realized the sale Of the bonds. The
former will enable the government to establish
the principle already explained and the letter will place
in its hands ample cali the redundancy Of the
Treasury notes after the LIST July next and 10 sustain the
or tn
Assuming that the States mag be induced 10 ertad their
guarantee 70 fin. hundred millions, propose 20 adjust the
Debt upon The plan Of The hundred million as 10
infa'e its discharge fthin Gie period The length OF
this period depends upon the sum which Congress will
devote to the annual payments. Tho commencement Of
the period the date at which the first payment is to
be made is Of courses within the Congress and
involves the game inquiry as TO the amount now 10 DO
raised by taxes A postponement OF this first payment
OF principal would seem to allow dminuton Of the
But must be observed that some considerable time
eapsc before the Of the States
further time then bs consumed in carrying the plan
into execution and in procuring returns of the sales.
During all this period the eight per cent and 1870
are outstanding, and will absorb nearly as much more
money as will afterwards be required TO meet the first
annual payments tho principal Besides this cannot
be too strongly urged that the present is the appropriate
moment at which TO commence proper system Of taxes
Tho patriotism OF the country is now fully aroused fhe
duty OF contributing largely to the support Of the gov
men is generally recognized. The large amount Of money
in circulation will make the payment easy and the pay
ment itself will ad the taxpayer by reducing prices TO
their proper condition
Before leaving this subject would RESPECTFULLY submit
ments, which would produce the results. II h by
isnng all the bonds IN the usual form payable the
date and attching to them condition that the
tary OF the Treasury shall annually semi annually by
lot designate certain portion to be paid OFF, If these
annual payments were arranged on the same principle
which governs the hundred million foam, and were
made equally obligatory upon the the result
would be the same
The collection OF the produce loan together with the
purchase OF producc under the act OF April II 1882 has
been prosecuted with vgOr The total amount OF sub.
fva Of doll .Cfy boya 1aop
collected a an Of one third OF per cent The
purchases OF cotton thus far reported Ivy the agents
chascs at the present have probably reached
GOO bales including those which reports the
certificates have been devised. BY one che various
parcels Of cotton registered and disposed Of BY the
Quantities at certain points at fixed price, BY the adj
vice Of our ministers abroad some Of tho latter cerf
Gates covering about 900 bales Of cotton have
placed as experiment In the foreign market; but
Aclent time has not elapsed TO hear from them The
tails OF this branch of the department. forth tho
report of the Clerk in charge TO whca attention is
invited The important and responsible duties entrusted
70 THE clerk render it proper that his oce should be
placed level with other branches In the dcpar nent
would therefore respectfully recommend that the ollce
be raised 10 the grade OF a chief clerkship.
legislation which will be required to carry into Of
lect the several matters recommended In this report is
l. An act limiting the period for fundin the Treasury
notes besi ing date prior 10 LIST December 1862.
.. Authority to issue sufficient -of Treasury
notes to pay the appropriations required for the support
VI uie soVetnmcnt 10 Isl July next
Authority TO issae bonds and stock sufficient fund
the notes already issue entitled be funded ut eight
per cent aud those hereafter to be funded at per
cent.
4. call upon the Ststes to guarantee the debt
upon plan 10 issue six cent bonds payable IN install
meats, in twenty i've years. upon the plan Of the
hundred million loan.
s. A modification Of the loan act OF April, 1862 by
ducdg the time 10 five years within which the govern
ment may redeem the bonds.
o. A war tax upon property and income.
All 81 which Is respectfully submitted.
C. MEMMlNCER Secretary ,f the Treasury