Evening star. [volume] (Washington, D.C.) 1854-1972, 1863-12-11

rs hiking fuLd. But it was ne ,essary e
sdiiy Incl ease the bt, and the Secretary In
doing TO kept tour Oh ects steadily in view: (ll
modera Interest; ~ general distribution; 81
Iuiure contro liability and incidental utility
1or The fist lime IN our history has real
| 81 Ireesh 10 Uniform currency been made,
ahn It's ltnefits fel b, all, for each one who
holds anore or bend, fr m FIVE cent fractional
not fo ssG0 fond has a direct interest in
the security of the Government.
MeaGtn.e Q hove YER additional loans are re-
quirtd, nd several n Cd s are open
The limits Of deposits ior temporary lem are
fxea Ht ore hundred N rilIions of dollars. The
IN ouhttf T. is dep' sit on the first day OF De-
n,her hs b. sen reduced TO sss, 100 OF, and
nentE q $40, Coz, ,ocO had been ma ie from the
Iest rye. The sc ditioi al pa Will be con-
nm, with the narrow, 81 pussfble Limits, and
can hardly t1cstd twenty-five millions. The
refiow of deposits has already begun, and will
prs bal ly soon exceed re;mbursements, and SO
ARE st pay ments from the reserve. The whole
refow be yond the amount OF these payne I is
will he sHi liable as part of the additional loan
reg uire d. and may be stated, without much
risk Of mistake, at twenty five millions OF dol
Lars. The Secretary perceives no solid reason
ior retaining the restriction on loans, in this
ioIn, to one hundred millions He thinks 1t
may be ussfuily removed, and the removal OF
the rettriction would in more way g than one be
beneficial.
Ar other portion of the additional loan re-
qured may be obtained through the sale of the
remains der OF he bonds known as fl we twenties
Tue amount + these bonds uns oscribei for on
tle frat OF December was S1Ui, i,U59,6O0. 1t will
4, :.
IA possible that small premium may be OBJ
tanned Oh part.
The limit prescribed by law to the issue of
Jnlud STATES notes has been reached and the
Secretary thinks it clearly inexpedient to il
crease tie amount. When circulation exceeds
the legitimate requirement for the real pay
ments and exchanges. no addition to its volume
VIII increase its value. On the con.rarv, such
addition tends inevitably to depre ciation: ana
depreciation, if addition bs continued. win
find IFS only pI actical limit in the utter WORTH
9 SG,S sc n q II O tor
" hen Congress author Zfd the creation OF
debt, 10 { certain extent, in the form of the
Unite d States notes, and impressed on these
notes The qualities of a circulating medium,
its action was justified by the dis ap ,earance
of coin in consequence Of the suspension of
specie payments; by the necessity Of providing
nj dunn in which taxes could be collected,
loans received, and payments made; and by
the obvious expedlency of providing that me-
dli m in the fo1m of national issues instead OF
lesolting to the paper of banks. Under the
cnsun stances its action was wise and neces-
sary; but it was equally wise and necessary to
limit The exte n of the issues by the neceesitv
" hich demanded them. They were want ted to
fiji! tie vacuum caused by the disappearance of
coin and TO supply the additional demands
created by the increased number and VARIETY
OF money payments. Congress believed that
four hundred millions would suffice for these
purI oses, and therefore limited issues to that
sum.
he Secretary proposes no change Of this
limitation, and places no reliance, therefore, OH
any increase Of resources from increase of cir
C, lation. Additional loans in this mode would
il deed, almost certainly prove ilusory; for di-
increased amount -. ---.-..
Sufficient circulation having been already
like any other employees Of capital temporarily
reqnlr ne more than income will supply, and
rely for the credit which will secure advaa.a-
geous loans upon good faith, Industrial activi-
ty, accum ulated though notimmediately avail
able capital, and satisfactory provision for
punctual payment OF accruing interes tand uI-
innate reimbursement of principal.
TO subs criptions for the remaining fve.twen-
lies and deposits for temporary loan therefore.
must be directed all reasonable expectation OF
mt ans for the service OF the current year, e1-
cept from negotiations under the act Of last sss-
sion The sum to be looked for from these two
sources have already been stated, and amount
to si2G,c59.6oa. If this aggregate be deducted
11om the amount to be provided by loans for
the last seven months Of the current wear AL
ready shown to be S252, ,226, 539 there will re.
main the sum Of S226, l66.999 to be provided BY
under scme like act, must be provided in like
manner, If the continuance OF the war shall
make it necessary, the sum Of $5i4,97s545 81,
estimated as likely to be required from loans
for the fiscal year 1865. y~-
The act OF last session authorized the loan.
supposed to be required for 1863 and 1861. and
and expressed that little other legislation for
the leans Of 1861 and 1865 will be required than
the application to those years Of its leading
provisions. 1t will doubtless be Thought eIe
pedient this session, AZ last session. to autho.
rlze the borrowing, In some form, Of three,
hundred millions for the current, and six
died, the only modification Of the act Of last
session necessary to adapt IL to the req uire-
mrntf OF the current and coming year seem to
be tD the omission OF all reference to United
States notes beyond the giving simple autho-
rity to the Secretary TO ascertain from time to
time the amounts destroyed or lost, and 10 re.
place them by new issues; (2) the repeal OF the
hundred million OF dollars, and the suhstitu-
tion OF provision TOR a reserve equal Il.
amonnt to half the deposit; so the permission
OF Inc negotiation OF lOans redeernab!e Alb
soiutely at pleasure or at pleasure after a time
fixed, not more remote than forty wears; and
t4) the omission, perhaps, of the clause taxing
circulation and deposits Us being more appro-
PIRATE to an internal revenue bill. II is hoped
that the other provisions Of the last may be re.
tanned in the new loan act.
Under such legislation the Secretary enter.
tains little doubt Of being able to obtain what
ever funds will be needed, through loans, at
reasonable rates Of interest, sor bonds or treas
ury notes.
For warrant Of this confidence, however.
he must not omitto say that he relies much on
the support to be given 70 the pubic credit by
.hs national king system and by the nation
thinks, no possibility OF permanently success
ful administration Of the finances, under cfy
Srmstances Gums involving the creation OF large
debts, unless loans can be effected in medium
OF genes al and equal credit throughout tho
country, and not liable TO variation fn ousuti.v
or in value except under the operation Of ma
uonal LEGISLATION and The general laws of trade
In order that the bank notes flooding the
country may be Withdrawn from circulation,
the Secretary again recommends the author
lzanon OF national banking associations, to
which the capital Of the corporations now
issuing notes for circulation might be trans
ferred with advantage to the parties in interest
as well rs to the general public II the policy
thus indicated shall be fairly and iudiciou.ly
pursued, and proper measures adopted to In.
duce the conversion, at the earliest practicable
period, Of the bank corporations Of the States
into national banking associations, and Of Tie
corporate circulation into national currency,
the Secretary believes, and, as he thinks, NOT
without good grounds, that ail tho money
needed for prompt payment OF troops, and
for the most vigorous prosecution Of the war,
can be obtained by loans on reasonable terms;
while all interest on debt. and all ordinary
expenditures, and q considerable part also OF
the extraordinary expenditures caused by this
war, will be met by the ordinary resources.
Nor does he doubt that. through wise legisla-
fion, sustained by intelligent popular will, and
/. .9Pported BY prudence and energy in civila and
Gaihfary administration, national currency can
be so approxtmated In recognized value -
com, thaf resumption Of payments In specie
can Do brought about much sooner than even