The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1863-12-11

be provided by loan. s544,97 !, 3d.
The sum to be provided -repres tents the
Increase Of debt for the year. Al suming,
therefore, the correctness of the estimate
which put the debt, July list, at 8 $780,
$50 Gal, it will result nom these estimates
that the whole debt will have reached, on
the 3oth OF June, 1868. the sum of Sc
s3i ,935, 100.
The Commissioner of Internal Revenue
recommends Jan increase of the tax en-
bank note circulation to per cent,
an increase of duty on distilled spirits 10
Zoe per gallon. on tobacco to zoe per
pound on leaf, and from s to II, accord
ing TO quality, on manufactured, Zoe per
gallon on crude petroleum, &c per pound
on cotton. The repeal Of the tobacco and
petroleum drawbacks and various other
changes OF the Internal Revenus laws 10
augment the receipts, The enactment OF
such tax as will secure increase of the
internal revenue to the amount orig
inally estimated, of $50, 600, 900 year,
required by the strongest considerations
of public policy. Hitherto the e expenses
Of the war have been betrayed BIZ loans
10 an extent which nothing but the ex-
peclations of it's speedy termination could
fully warrant. 1t will not escape observa
ton that the average rate Of interest is
now increasing, and il is observed that il
must continue TO increase with the in
crease OF the proposition OF the interest
beating to the non-interest bearing De-
par,ment, and as the amount of the lat
ter, consisting OF United States notes and
| fractional currency, cannot be mat, :
rally augmented without evil con
sequences OF the most serious char.
acter, the rate Of interest mus in
crease with the debt aud approach
continually the highest average that must
be greater or less in proportion to the du.
ration, dc, of the war. In former re.
| port the Secretary placed the Ii nit to
which a loan IN the form of certificate
of indebiedress could be carried, a.,
100000, goo. Experience has shown i.
can be carried to 5 $50, 900 600, and that
its natural limit is about that sum. On
! the lst OF December the amount of these
certificates was 81 .45l, 120, 900. 1t would
be unsafe, therefore. to rely on any sub
stantial increase of loans in that form.
The limit prescribed by law to the issue
of United States notes has been reached
The Secretary thinks it clearly iuexpedi-
ent to increase the amount, saiIicieu, cir
culation having been already provided.
The continuance of the war should
! make 1t necessary the SUN OF S54l.p7s,.
54S, estimated as likely to be equred
from loans for the fiscal year 1865. Tie
act Of last session authorized the loans
supposed to be required for the fiscal years
1868 aud 1864, and of the amouat re-
CURED for the service of these two yen rs to
Dec lst, now current, $3.50 o90.U0U in
I. S. notes, and $50, 900, 900 By d lean
for two years 5 per cent Treasury Notes
have already been provided under that
legislation. The act is so well conceived
and expressed, little Other Legislation for
the loans of 1854 and 1865 will be re-
CURED than the application TO these years
OF IT'S leading provisions. 1t will doubt
less be thought expedient tits sessid 10 TO
authorize the borrowing, in sotne form,
| OF $50 900. 600 for the current, and 5000
900, 200, for the next fiscal year. Indeed
the only notifications of the act OF last
session Necessary to adapt it to the re-
qulrements OF the current and com ing
year seen to be, Isl, to ascer ain ftom
time to time the amounts DESTROYED
or lost, and TO replace them
by new issues Cd, the repeal OF existing
limitation Of the deposit loan to $780,
200, 900, and the substitution OF provis.
Ion for reserve, equal in amount 10 half
the deposit; Sd, the permission of the ne.
gotiatlon OF loans redeemable absolutely
at pleasure after time fixed not more re-
mote than twenty years aud 18th, the
omission, perhaps, of the clause taxing
circulation deposits as being more appro-
pirate to an internal revenue bill. l. is
hoped the other provision of the last may
be retained in the new loan act. Under
such legislation the Secretary entertains
little doubt of being able to obtain what
ever funds will be needed, through loans
at reasonable rates of interest for bonds
or Treasury notes. For warrant of this
confluence, however, he relies much on
the support to be given to the public
credit by the National banking system
and by the Naturalization of the Cur
rency.
There is, as he thinks, no possibility
of permanently successful administra.
ton of the finances under circumstance
Involving the creation Of large debts I'm.
less loans can be effected in q modlcum of |
generous and equal credit throughout the |
country, and not liable to variation in
quantity or in value, except in the OPERA
ton OF national legislation and the gen
eral laws OF trade.
The Secretary directs the special atten-
ton OF Congress to the provisions for
uniform rate of interest and the repeal of
the section which corrects the issues of
national currency in any degree with State
banks. The Sec'y also recommends 4
provision to be made by Law for the deposit
With national banks. and also with the
Treasurer and Asst. Treasurer at such
rates of interest and for such periods of