The New York herald., 1863-12-11

OF ana july 1905, WOul0 nave been
applicable TO the purposes OF a sinking fund
So also, assuming again as correct the general esti
mates Of receipts and expenditures for tho next fiscal
year. 1866. the total recelpts for tho year will be
$206 $780, while the expenditures for the civil
vice, pensions and Indians will be $S7, ,604, 400
for interest. Ss5 3ST 676 and for tho army and navy
observing the rule already staled S55 345 ,s34 making
total OF SITE, ,S3S0 0lO, which sum, deducted from
s s,on sSeP S ,shasn w give p
three years OF and before the lst OF July 1864 that
remainder viii DO applicable to payment Of debt
These statements are subject 10 some notifications
sides those which may result from errors OF estimates
but these cannot reduce though they may increase
applicable balances and therefore cannot affect uniavor
ably any deductions from the figures which have been
given.
These statements illustrate tho great Importance OF
providing beyond all contingency for ordinary expend
tures and interest debt and for the largest possible
amount OF extraordinary expenditures. by taxation In
proportion TO the amount raised above the neces
sary sums for ordinary demands will be the diml.
mutton or debt the dimnuti0O OF interest, and the
improvement OF credit. II ia hardly too muoh-per.
haps hardly enough-to say that every dollar raised
Tor extraordinary expenditures reduction Of debt
worth two in the increased value OF national securities
bio loans
These statements Illustrate equally the importance O,
an economical and vigorous prosecution OF the war
prudent men will recommend economy at the expense Of
efficiency. Such nominal economy real extravaganza
@ Bu, e,s:ensy % ~ Is not promoted by prouson or waste
property Every dollar and every man freely offer
ed by generous people how sacred the obligation
not one man should be wasted, and dollar msap
Piled. Nor Is rashness, war. vigor But the vigi.
lance that misses no opportunity, the energy that
axes effort, the skill that vitazes all resources
and tho perseverance that never grows weary these
make true vigor. II by such vgor tho rebellion can be
suppressed and tho war ended before the lst OF July
next the country will be saved from tho
debt which must necessarily attend its continuance dur
ing another year, aud tho debt itself at be
progressive payment shall begin the value national
curtes will rapidly rise aud reduction rates OF inter-
est will gradually diminish the burdens OF debt
NECESSITY FOR FURTHER LoANs-aENgRAL DrsTRr.
1rtIX MN
the Secretary thus earnestly urges that the largest
possible proportion OF expenditure be provided by direct
pie he 10 aware that still larger proportion
be provided by loans.
wise, the Secretary has kept four objects steadily in
t5l future con!rollabity and Incidental utility
Towards the accomplishment OF the first object the
nearest approach that possible has been The
earliest negotiations the highest interest
for Il Is distinguishing characteristic Of our financial
history thus rebellion that the public credit which was
at the lowest ebb in the months which preceded
ing out has steadily improved in the midst OF the
BILE trials has brought upon the country The nrst oaus
were negotiated at seven aud thirty per
the next at seven tho next at six recently largo
sums have been obtained at five and four and tho whole
of the debt which represented by United States notes
aud fractional! currency bears OF course. interest
The interest on the debt which tho form OF
Treasury certificates OF or Of de-
posits and Is called temporary debt paid in United
States notes while tho interest on debt which
the form OF bonds and called funded debit s paid
cOn-a discrimination which is intended bring the
OF coin interest within moderate compass
at the same time to offer special Inducements invest.
ments in bonds order to avoid rapid increase Of
circulating notes and consequent depreciation.
The average rate OF interest the whole debt without
regard to the varying margin between notes.
on the first day or July, 1852 436 per centum the
first day OF January 1863 4O2 per ceutum the first
day OF July, 1868, 3T7 per centum the first day
OF October. 1868 .96 per centum
will not escape observation that the average rate
now increasing, and is obvious that 1t must continue
to increase with tue increase OF the proportion tho
teresf clearing to the interest bearing debt And as
the amount OF the latter consisting OF United states notes
and fractional currency cannot be materially augmented
without evil consequences OF the character
the rate OF interest must increase with tho debt and a
proach continually the highest average. That be
greater or less In proportion TO tue duration aud cost OF
the
The general distribution OF the debt into the hands
OF the greatest possible number OF holders has been
the second Objoot OF the Secretary in It's creation
This has been accomplished by the universal diffusion OF
United States notes aud fractional currency by the
rbutou Of certificates among great numbers
creditors and temporary deposors by
70 Sf Ts8a isess sSS
successful Tney have been adopted yes with refn
TO only two descriptions Of bonds-he two
Unknown as seven thirtes and Nvetwentiesso named,
tho first from their rates OF interest, and tho second
from their periods OF payment Tho plan OF distrb
utng tho seven thrties was that OF employing a
Ing their action from from tho Department. worked
well for time, but soon found inadequate 70 the
financial necessities OF the government For the dstrbu
ton OF the tive twentes, therefore, different plan
adopted Alter ascertainng by inquiry that they could
not DO disposed capitalists amounts SuiICtent
prompt payment OF the army and navy and for the salts
faction Of the lust claims OF public creditors generally,
without serious oss the Secretary determined to employ
general agent under adequate bonds aud c0nldo the
whole work OF distribution so far as could be
elected by tho Treasurer Assistant Teasurcrs, anc dos
ignaed him and sub
by him responsible Immediately TO him. Under
pau and chiefly through the indeatigabe efforts N the
general agent aud his sub agents. hvewenty bonds to
the amount OF nearly four hundred millions OF dollars in
denominations OF hty, one hundred five hundred, and
ono thousand dollars, were distributed throughout
.haIn nal cAnf~ nllaI hu aIxa
lion, and among all classes OF oountry ymen.
The history the world may be searched for a
parallel Of popular financial support to national
government The secretary Is unable TO perceive IN
what beter etectua mode the important obect
OF distribution could be accomplished and no proposes
departure from II except such as consider OF
omy, barmonzod with efficiency, may suggest
Tho object OF future controllabiy has also mad prom
place IN the regards OF the Secretary Under tho
conditions which existed at the outbreak OF the rebellion
he ac1uesced IN the necessity which seemed 10 dictate
tho negotiation OF bonds payable after years
ac1uesced with reluctance, and permitted
by circumstances, recommended the enactment OF laws
shorter periods as we'll as the creation ot tsmporsry
debt other forms. In harmony with these Con.
gres provided for the issue OF the bonds known tho
live twenties aud also for the OF treasury notes
payable years from date for certificates OF ndcbt
edDess payable year and for temporary loans
deposits rcmbursabe after ten days notice. At the last
session Congress repealed cmbl
former aud authorized the issue OF bonds able
ure or three yoars from date These treasury notes
we're tenders for face value convertible for
amount and interest into United states nptos.
The Secretary availed himself ot this legislation
by placing with people large rs possible
OF Gvetwenty bonds. and by using the other powers
put the whole debt, except the long loans first
negotiated, In such shape that prompt advantage can
taken favorable circumstances to diminish tho bur
dens II imposes industry. Whenever the constitution
al supremacy OF the shall be established over
oil its parts II will be completely within the power o.
Congress tho Secretary to fund the part
the temporary debt in bonds bearing very moderate
interest and redeemabe at the pleasure of tue govern
meni after very brief perleds, or perhaps any time
after their Nothing on the
score OF con!rolablity.
The object of the secretary was to extract from
the unavoidable evil ot debt as much Incidental bench,
possible.
10 tins end he desired authority recsvs temporary
loans tho form OF deposits rombursabc after few
days notice This measure was regarded by many with
something than favor at FIRST but Congress- after
fun authorized the receipt OF such deposits
at an interest exceeding Ave per tho
OF twenty Ave millions dollars thep raised the limit TO
ATTY millions, aud then TO hundred millions and pro
,ided OF atty millions Of Uuei states to
meet demands for reimbursemcns beyond other con.
ycuiont means OF satisfaction II was DOT long before
those deposits reached the highest limit aud, before
dow could be well checked somewhat exceeded H. Tho
utility OF the was very conspicuous tho 70
of great srngcncy In New York when the