Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1863-12-17

Of receipts and expenditures for the next fiscal year 1865
the total receipts for tho year will DO $2O6 while
the expenditures for the civil service aud pons NJ and In
dans will be 37 60i 499 for interest $50 357 676 and
for the army and navy observing the rule already stated
$55 645 1884, making total Of $l7S63o OlO which sum,
ii deducted from the total of receipts will give remain
der of 1927 99S 529 Should the rebellion bo suppressed
after three years of war; before the lat OF July 1864
that remainder will be applicable to payment OF debt
These statements subject to some MOD neat0ns be-
sides those which may result from errors OF estimates but
these cannot reduce though they may increase the APP
pcabe balances and therefore cannot affect unavoraby
any deductions from the figures which have been gwen
Proposed Increase of 7aration.
These statements illustrate the great Importance Of
yidDp beyond all contingency for ordinary expenditures
and interest on debt aud for the largest possible amount
of expenditures by taxation La proportion
to the amount raised above the necessary sums for ord
nnry demands will be the dimnution OF debt the dimnu
ton OF interest and the Improvement OF credit IL 10
hardly too much-perhaps hardly enough-to say mat
every dollar raised for extraordinary expenditures or re-
ducton Of debt s worth two in the increased value OF
national secures aud increased facilities for the nego
| tiatOn of Indispensable loans.
These statements illustrate equally the importance of
economical and vigorous prosecution OF the war No
prudent will recommend economy at the expense OF
efficiency. Such nominal economy is real extravaganza
But efficiency is not promoted by prouson or waste and
least Of all by misuse OF public money OF pubic properly
Every dollar and every freely offered by gener-
people; how sacred the obligation that not one man
should be wasted, and not dollar msappled Nor 10
IN
opportunity, the energy that reaxes no effort the skill
that valzes all resources and the perseverance, that
grows weary these make true vigOr Ii by such
ygor the rebellion can be suppressed and the war ended
before the LIST of July next the country will be saved from
the vast increase of debt which must necessarily attend
its continuance during another year. and the debt ltse
can at be placed in course Of steady reduction
And whenever progressive payment shall begin the value
of national securities will rapidly rise, and reduction IN
rates of interest will gradually diminish the burdens of
debt
b tba thns an uroes that the larg
possible proportion of expenditure be provided by d.
rect contributions from the property and incomes OF the
people, he that still larger proportion must as
yet, be provided by loans.
System of Loans
In the creation of debt by negotiation of loans other
wise the Secretary has kept four objects steadily vew
O moderate interest; (2) general distribution; () fu-
ture controablity; and az incidental utility.
Towards the accomplishment of the first object, the
approach that possible has been made The
earliest negotiations at the highest rates of interest
for it ia distinguishing characteristic of our financial his
tory this rebellion that the public credit which at
the lowest ebb the months which preceded its breaking
out has steadily improved in the midst of the terrible trials
it has brought upon the country The first loans were
gotated and thirty hunLredths per cent; the
next at seven the next at six recently large
have been obtained at Eve and four and the whole of the
debt which is represented by United States notes and
fractional currency bears, of course, no interest.
The interest the debt which exists in the form Of
Treasury aud certificates of depo
Sits aud is called temporary debt paid in United States
notes. while the interest debt which exists in the form
Of bonds and called funded debt is paid in COMA dis
elimination which is intended ia briog the payments of
coin interest within moderate compass and at the
time to offer special Inducements 10 investments ia bonds
in order to avoid too rapid increase OF circulating notes
and consequent depreciation.
The average rate of interest the whole debt without
regard the varying margin between coin and notes.
the first day Of july 1862 SO per centum; on the
first day of January 1863 OF per centum the first
day Of July 1863 II per centum and the fret day
Of October 1868 95 per centum.
1t will not escape observation that the average rate ia
increasing and it is obvious that it must continue to
increase with the increase of the proportion OF the inter
est bearing to the nonnterest bearing debt And the
amount Of the latter consisting OF United States Dotes
and fractional currency cannot be materially augmented
without evil consequences of the most serious character
the rate of interest must Increase with the debt and
proacb continually the highest average That must be
greater less in proportion to the duration and cost Of
the war.
The general distribution Of the debt into the hands Of
the greatest possible number Of holders has been the
second object of the Secretary its creation This has
been accomplished by the universal diffusion of United
States notes and fractional currency by the distribution
OF certificates among great numbers of contract cred
tors and temporary depositors and by arrangements to
popuarze the loans giving the people every where
opportunities to subscribe for bonds These s1bscp-
ton arrangements have been especially useful and
cessul They have been adopted yet with reference
to only two description of bonds-the two commonly
known as Seven-tblrtles and five tweDtes,
the fret from their rates of interest and the second from
their periods Of payment The plan Of distributing the
sevenhirties was that of employing large number of
agents many places and directing their action from the
Department. 1t worked well for time but
found inadequate to the financial necessities the Gov
eminent.
For the distribution of the five-twentes therefore,
different plan adopted After ascertaning, by in
qury that they could not be disposed of to capitalists in
amounts sufficient for prompt payment of The army and
navy and for the satisfaction of the just claims Of public
creditors generally, without los the Secretary
determined to employ general agent, under adequate
bonds and conne the whole work of distribution except
far it could be effected by the Treasurer Assistant
Treasurers, and designated DsposaTes, him and to
sub agents designated by him and responsible Immediately
to him. Under this PLAN and chiefly through the indie
fagabe efforts of the general agent and his subagents
yetwenty bonds to the amount of nearly four hundred
millions dollars in denominations of fifty hundred
five hundred, and thousand dollars distributed
throughout the whole country not controlled by the rebel
on aud among all classes of countrymen The his
tory of the world may be searched in vain for parallel
of popular financial support to National Govern
nent The Secretary unable to perceive in what better
efectua mode the important object of dstrbu
from it except such considerations Of economy, har
monized with efficiency, may suggest
The object If future controlabiy has also had prom
nent place in the regards Of the Secretary Under the
conditions which existed at the outbreak of the rebellion
he ecqaesced in the necesst y which seemed to dictate
the negotiation Of bonds payable after twenty years but
he acquiesced with reluctance, and, permitted
by circumstances, recommended the enactment OF laws
authorizing the Issue Of bonds payable after shorter Pc
forms In harmony with these views Congress provided for
the issue OF the bonds known the fvetweutes and
also for the issue of Treasury notes payable three years
from date for certificates Of Indebtedness payable in ore
year and for temporary loans by deposits reimbursabe
after ten days notice At the last session Congress