The New York herald., 1863-01-13

~'s "s Nv vents on the uuar IDT &ou-u
90 eiea Tor this House % seriously consider, any
OBI node caa be devised which IS practicable. IL is
o.neseh 20 be practically impossbe 70 negotiate your
bonis f2f o'd without too great sacrifice. you can
not sryoiato oans for gold wiz be TO change tho
Iraeenaent Treasury l'w allow loans to be ne
go,iacd for nvtes OF suspended banks2 There was q
general ss ension Of sece pay meuts by the banks and
tho goveiNmcnt on the 3lst Of December 1861 In Feb
rtary following ougress passed the law Tor the Issue OF
eg tender notes and authorized the Secretary mako
ons and receive these payment tho govern
ment has not deemed 1t best 10 take suspended bank
veriment do not think IL wise adopt that policy at
This time. The question then arises can you sell bonds
10 legal tender notes already ssuea i is J perecy %
apparent 70 all who are acquainted with the mo-
ney market that this carnot be done. Currency has
en- all the mo for the last eight months, and
Ii now very dilcu IL ~ oba,Ded IN sufficient quantity
20 meet the business wants Of tho country. In many
places hrf ugh the nterior Of the states bankers and
business men have been obliged 10 pay high
quarter and half cent premium get currency
(bank bills and greenbacks) to carry on ordinary bus
Il is well known that all the New England and New
YORK nntry oank redeem their balls now at the Suffolk
Iank Boston, and the Metropolitan Bank New York, pre-
clseiy Oh they did before the suseosn Of specW pay
mcnte. This system checks any tendency ID overssue
and Is touchstcne by which to test daily the demd for
bank bills. II they not needed for cg business
they flow In raDidy 20 the redcening banks but If they
daily redcmpons. Tor months past have been half
what hey when the volume OF back circulation
less by yhlrd than is at this time What this
scarcity Of cur ency2 In the first place. before stated
gold and SILVER nger circulate currency within
United sta,cs Gold IS only required to settle toregn
balances bay custom duties, and on the pubic
debt It.s bought and sold for these purposes
modify but II d. cs not circulate money ordinary
operations. It's place s Supplied by bank bills
ana legal tender notes. lb the next place large in
crease y business suddenly created by such gigantic
war as we arc now prosecuting has largely increased the
demand i"r larger volume o. currency than was cvcr
required bef re.
There has been large demand Tor currency IN tho
Western states 70 purchase and bring forward the i'm
crops that have been produced during tho last two
years The winding .p Of large Dnmber Of bady organ
lied and badly managed banks in those Staiesa largo
to DO flied by bills Of solvent banks and loyal
tendor notes The government has been buying largely
Ia all parts OF the country, food clothing, aud all mn
ntons OF war; besides the large required for pay and
bounty money Of tho volunteer soldiers that have gone
forth from oil the States No doubt considerable
OF this money stll remain Ia the hands the ldiers
themselves and their families, practically Withdrawn
from circulation for the time being Fifty, hundred
and as high even as two hundred dollars paid for
volunteers TO M up the last two calls made by the Pres
dent Fifty dollars paid 70 each soldier the number Of
six hundred III nsant, would require $40 600 0O0 say
nothing OF the amounts required for the army prev orsly
sent into the held II Is perfectly plain where tho cur
rency has gone during the past six months The ora
forms not less than 5000 900 900 IN bank bills and ern
tender notes II rs no wonder that currency has been
scarce in all tho ordinary channels OF trade and business
II 10 sti very scarce and difficult TO he obtained
for ordinary business purposes in New York and
all the Western States. assured by bankers
and the best hnanciers In New York, that
tho Secretary should put the market proposal for
loan OF $50 600 II could be taken fo the reason
the legal tender hotes could not lie obtained in sum
cient quantity TO pay for loan OF that II Is
doubtful whether loan Of $l5 900 900 could be taken
this time for the want Of currency To pay for R
II s also very difficult for the collectors OF Internal
revenue TO make collections OF the scarcity cf
legal tender notes. Legal tender not plenty
they continually asking more why then should
We bo alarmed at further ssue OF legal tender notes2
demanded by the soldiers for their pay begged Tor by a
The needy creditors OF the governneDt surely Congress
ought no. to hesitate in an exgeney Ike the present
back the pay duo TO honest creditors OF the
1t ia much better to stimulate, make money plenty, mrkc
u easy for people 10 pay their taxes, and os or
mont to mako loans. This is tho only way in hich
can go on in tho present npeiled condition Of the
An essential feature Of, The financial plan adopted ne,
year was te passage Of tie IarG aud Internal Revenue
aws i was OF grca, consequence TINT orr public debt
aonid rest upon solid foundatn Thc property Of the
country liable TO taxation, amounted iu 1860 70
81 goo 000 600, md Congress- having ample power tax
acots was agreed by all parties that necessary
70 impose taxes upon Tins property ard tho PROFITS Of
snncieni TO pay the ordinary expenses Of the government
on peace footing and all the interest," the extra0rd
nary war seht Ihe ordinary expenses q the govern
and the interest on the debt viii no, probably
exceed during tho next year the sum Of $s5,oUo oC0
while s believed that the revenues derived from
ihe tariff and internal viii not be less
han $500 600 600, leaving 3se, 1000 900 ss sinking
fund 70 keep down the war debt II i believed that the
revenue realized the present Trin and Tax law will
nay ordinary current expenses Of tho goverpmest and
interest ON the war debt when reaches 81 COO Coo
which is oily half tho present debt OF Great Britaia
Congress must shape its le isiaon incidentally
aid all branches OF productive industry render tn people
ordinary expenses Of the and interest the
ex,rao dnary war debt Incurred from day to day In sup
tide and exhausting nature Of The war tho financial
measures adopted Last year have operated very bcne
leiay upon the business OF the country. The people
have had uniform currency and have abundany
prospered In all their busi fhe taxes being in,
posed mostly ON the current business OF people they
pay them from time time without feeling that Il s
burthen, them with hc of
the year The people In the loyal states have beca pros
eros IN all things, and the taxes so easily paid from
ther profits, they hardly realize In their peoEiary affairs
hat we engaged In such mighty struggle preserve
the national government and the national unity.
Upon full examination Of the whole subject and with
deep socude for the the that may
be Gnaly adopted by Congress, way which the
ment for the next eighteen months except by continu
nce Of the measures adopted at the last session. and
which have go successfully carried through the pers
Of tho last year with such additions aud mod calons
experience has shown TO be ssary.
An additional section has been prop sed !, the financial
plan adorted last year. There " large amount
u available means in the country which, u
II can be drawn ,.to the national Treasury, will
be u most essential service ut this timo II has
been the subject Of much consideration as TO the
best form In which II could be offered TO the people
induce them to let the government have the money
compensation for us during the time II sborrowed
the govcrnmeut Interest bearing Treasury notes are
believed 10 be tbs best form n which u can be odered TO
the public.
Under the opcratian OF this now secion the Interest
bearing Treasury notes and the legal tender would
e ,erible and reconvetblc into each 9th At the
viii Of ths holder; and both be paid out to the
creditors cf the government, they will lind their way
into all the channels OF business In all parts Of the
Try The interest beang notes viii be laid asde out VI
circ latnbctter than gold investment, because
cfdng fair rate Of interes--~he the legal tender
rotes will continue TO circulate money. The
object OF this section Ia 10 rcscn the money In.
vested IN temporary loals IN all the cities, villages
and towh. throughout the country, and apply II
to sustain the government. at this time largo amount
money is held by individuals and corporations bear
g small rate OF interest," or no interest at ALL which
deposit In banks or In private salce and drawers
waiting good opportunity for permanent investment IN
the purchase OF stocks mortgages other properly.
orehanded farmers, mechanics manufacturers, mer
chants and even retired capitalists, would like
verent mode ol Investing their surplus fair
rates Of interest and with certainty that when good
opportunity Is presented 10 business trans
action they hayo egai tender notes returned 10 thom
10 money. Notes issued at sS per interest and
dcnom nations OF $40 So 800 $500 $500 81 COO 0OO
aud IS 900 wosd be form for all classes
aud 81 this rate Of interest there doubt that large
amounts would he drawn into the r casurv. Savings
bauks trust companies, and other places deposit, now
burdcnod With money would, no Doubt have drawn
ia