The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1863-12-18

Hitherto the expenses of the war have been
betrayed by loans to an extent which nothing
but the expectation of its speedy termination
could fully warrant. 1t will not escape obser-
walton
That the average rate of interest is now in
creasng, and it is obvious that it must continue
to increase with the increase of the proportion
OF the now interest bearing debt. and as the
amount of the latter, consisting OF U. 8. notes
and fractional currency, it cannot be materially
augmented without evil consequences of the
most serious character.
The rate of interest must increase with the
debt and approach continually the highest
average. that must be greater or less in proper
ton to the duration and cost of the war.
SECoND-The repeal of the existing limita
ton of deposit and loan to $500. 600, 900, and
the substitution of a provision for reserve
equal in amount to half the deposit.
Characterization for the negotiation of
loans redeemable absolutely at pleasure, or at
pleasure after time fixed not more remote
than forty years, and further the omission, per-
haps. of the last clause taxing circulation and
deposits as being more appropriate to an inter-
nal revenue bill.
1t is hoped that the other power of the law
may be retained in the new loan act.
Under such legislation the Secretary enter
tainS little doubt of being able to obtain what
ever fund will be needed through loans at rea.
notes, and for warrants. For this confidence,
however, he depends on successes of national
banks. ...,.
The act of last session authorized the loans
supposed to be required for the fiscal years
1868 and 1864, and of the amount required for
the service of those two years to December now
current. 500, 600, 600 in United States notes.
and $50, 000, 900 by loan for two years.
Five per cent. Treasury Notes have already
been provided under that legislation. The act
is SO we'll conceived and expressed, that little
other legislation for the loans of 1864 and 1865
will be required than the application to those
years of its leading provisions.
1t will, doubtless, be thought expedient, this
session. to authorize the borrowing in some
form of $500 600, 600 for the current and $500, :
600, 900 for the next fiscal year.
In the creation of a debt by the negotiation
of loans, or otherwise, the Secretary has kept
four objects steadily in view:
First-MOderate interest
Second-General distribution.
Third-Future converability.
Fourth-Incidental ute:ty.
How he has attempted to attain each OF these
are fully explained An incident of good, he
says. growing from the bitter root of debt has
been fully explained on observations heretofore
submitted ON the national banking system.
Except through such system no sure way
is seen to the complete and permanent estab-
lishment of uniform currency, and system
of national banking fair to all. 1t can only be
safely and firmly e tablished by making u.s. of
portion of the national currency. Meantime
additional loans are required, and several modes
are open; one by removing the restriction on
the temporary loan to one hundred millions !;
another by the sale of 5-20's; another from
certificates of Indebtedness. and another from
United States notes, the number of which he
thinks it clearly inexpedient and unwise to in.
crease.
He proposes no change in the Congressional
limitation of Treasury Notes to four hundred
millions, thinking we now have sufficient for
circulation.
Th5 only notifications of the act of last ses
sion necessary to adapt it to the requirements
of the current and coming year seems to be the
omission of all reference to United States notes
beyond giving simple authority to the Secre-
tary to ascertain from time to time the amounts
destroyed OF lost, and to replace them by new
issues.