The New York herald., 1863-12-11


In these several ways may even such great evils as
are brought upon us by rebellion be transmitted by a
wise alchemy into various FERNS Of utility The
Secretary has endeavored to this alchemy nth what
success the country viii judge when time and trial shall
have applied 70 his work their unfailing tests,
Meantime additional loans required and isla
tion now stands, several modes open
The limits of deposits for temporary loan fixed at
hundred millions OF dollars The amount OF this de-
post on the 1st day OF December reduced
Si5 800 l2o and payments Of $4,000 900 had been
made from the reserve The additional payments will be
confined within The narrowest possible limits. ana can
hardly exceed twenty Ave millions. The renow OF do
posits has already begun. and will probably soon
the reserve. The whole redow beyond the amount Of
these payments will be available part OF tho additional
mistake at twenty five millions Of dollars The Secretary
peiceves no solid reason for retaining the restriction
he thinks, be useiuly removed. AS the advantages Of
these deposits become better and more generally under
Stood the loan in this form will doubtless the absence
restriction, be largely increased and the possibility
demands for rembursements, beyond means TO meet
then can be fully provided for by increase Of the
istB proportion between deposits and Such
arrangement the Secretary ncnes to think would Oper-
ate tenehcaly by increasing the amount OF currency
whei unusual strngency shall require increase re.
ducDg It's amount when returning ease shall allow
ductOn.
Aother portion OF the additional loan required NAV be
0bned through the sale OF the remander0 the bonds
knswn as nvetwentios. The amount Of these bonds
subscribed for ON the LIST Of December $0l 500
will not be difficult to dispose OF these at and il
part
VIII the loan in the form OF certificates OF Indebtedness
could be carried, at hundred millions OF dollars Ex
peenCe has shown that be carried TO hundred
aud City millions, and that its natural limit is about that
sum On the LIST OF December the amount OF these
tcates was sl45 1t would be unsafe therefore,
to rely on any substantial increase Of loan IN that FORM
The limit prescribed by law to the issue Of United
States notes has been reached the Secretary thinks
1t clearly inexpedent TO increase the amount. When
circulation exceeds the legitimate requirements for real
payments and exchanges, addition its volume will
increase value On the contrary such addition tends
be continued will find its only practical limit in the utter
worthlessness OF the augmented mass.
When Congress authorized tho creation OF debt to
tain extent in the form or United States notes. and
impressed on these uotes tho qualities OF circu
disappearance OF In consequence OF the suspension
OF specie payments by the necessity OF providing
medium which could be collected loans received
payments made and by the obvious eXpediency OF
providing that medium in the form of national issues in
stead OF resortng 70 the paper Oh panks Under the cur
equally wise and necessary to limit the extent OF the is
by tho necessity which demanded them They were
to Oil the caused by the disappearance OF
and to supply the additional demands created by the
increased number and variety OF money payments Con-
gress believed that four hundred millions wOGd suffice
for these purposes and therefore limited issues to that
sum
Tue Secretary proposes no change Of this limitation
places reliance, therefore, any increase OF
sources from increase OF circulation Additional loans
this mode would, indeed almost certainly prove lusory
for diminished value could hardly fail TO neutralize in
creased amount
Suucient circulation having been already provided,
poyer Of capital temporarily requiring than income
will supply and rely for the credit that will
vantageous upon good faith. industrial activity
cumuiated though not Immediately available capital
aud satisfactory provision for pInctual payment OF &C
cruing interest and ultimate reimbursement of capital
To subscriptions for the remaining five.twenties aud
deposits TOR temporary loan, therefore, must be d,
reced all reasonable expectation OF means for the
Of the cnrreut year except from negotiations Under
the act o. last session. The to be looked for
from these have already been stated and
amount to Sl26 O50 600 II this aggregate deducted
from 70 be provided by loans of the sast
months OF the current year aready shown to be
1862 226 53s, there will, remain OF S226 66 s99
to be provided by negot the last ses
son, and, under some like act, must be provided in
like maouer the continuance Of the war sba make
necessary the sum OF $644 48, estimated as like
Iy to be required from loans for tho fiscal year 1855.
The act OF last session authorized the loans supposed to
tue amount required for the service OF these two to
the LIST OF December current one hundred and nifty
millions 10 United states notes, and hity millions by
loan two years I'VE p0r cent Treasury notes have
already been provided under that legislation. The
act so well conceived and expressed that little other
legislation FOE the loans OF 1864 and 1895 i DO
GGpessS s SSse Ss ,er, SSars s s
soo last session, 70 authorize the borrowing
form, of three hundred millions for the current
Indeed tho onlv modincations OF last session
TO adapt Il to tho requirements Of the
and coming year seem to DO 81 tho omission Of all refer
pie authority to the Secretary to ascertain from
time the amounts destroyed or lost aud to replace them
by (2) the repeal Of the existing limitation OF
the deposit loan to one hundred millions OF dollars
substitution OF provision for equal
u half the deposit ) the permission Of the negotiation
loans redeemabe absolutely at pleasure al pleasure
after time liked not more remote than forty years and
a. omssion perhaps Of the clause taxing
aud deposits being more appropriate Internal
bill II Is hoped that the other provs.ons OF the
last may be retained IN the new loan act.
Under such legislation tho Secretary eniertains little
doubt Of being able 10 obtain whatever funds will be
ed, through loans at reasonable rates OF interest, to
bonds or Treasury notes
THE CIRCULATION AND RISE m PRICES
For wartant o. this confidence, however, e must not
omit to that he relies much on the support be given
10 the public credit by tue national banking system
and by ths natoa,lizatiou OF the currency. There
Is, no thinks. no possibility OF permanently
successful administration OF the Gaances, under
circumstances nyoving tho creation OF large debts
less loans be effected Ia mcdum OF general ana
equal credit throughout the country aud not liable to
variation IN quantity value except under the opera
OF natioua legislation aud the general laws OF trade
Only kinds currency fulfil these cond op,-tne
rst circulation Of com the other, the circulation OF
uniform description and value issued by the
government, aud either paid directly to government
creditors, or suppei to banking associations to be
plOyed IN general business.
Tho oircuIaton now generally used IN this country
except far Il consists ~ hank notes, " the latter
sort aud no circulation not mmcoatey convertible iat)
coin be better
II suppose that the Of prices is
attributable wholly very large this
circulation. Had been possible to borrow enough
and fast enough for the disbursements OF the war,
most not altogether the same elects pricos would
have been wrought. Such disbursements made In
would have enriched fortunate Contractors stimulated
lavish expenditures anu inflated prices the
way aud nearly to the extent when made
Prices, TOO, would have risen from other The
withdrawal from mechanical and agricultural ocrupa
OF hundreds or thousands OF best strongest
most active workers, III obedience to their counrys
summons to the field, would under any system OF |
currency, have increased the pfce oi labor, and 1
consequence tho price OF the products OF labor VIII e
the prices of many things would have rise1 part
other for example the prce Of railroad bonds
vast increase OF income through payments mill
tary transportation aud the price OF cotton from def
Gent supply.
Much the greater part Of the rise Of prices not
counted for by the causes ust stated well much tho
greater part Of tho difference between notes gold
attributable to the large OF bank yet cir
,uatlon We're these notes withdrawn from "a be-
eved that much OF the now very considerable difference
aud United states notes would disappear
Cetanly there ought u 10 difference or CON-
when II Is remembered that United States bonds bcarns
Ave, per cent co1 interest arc iotrinscav
worh-uncss tho theory Of national bad faith national
Insolvency 10 DO admitted than their
and yct such bonds DO bad for their ausouat
10 Uutcd states notes
Nor can condition OF affairs which excessive prices
provsi national notes coDmaod less than par
be regarded as OF permanent duration. While II lasts It
must be borDe with patience and made tolerable by
economy. No useful rcmedy will bs found cxtraya
CANT Of salaries aud disbursements but an
gravaton rather OF the evil All proper should