The Portland daily press., 1864-12-17

ers OF the sinking fund. nnJar 1911.
tons, may not be advisable-tbeir d,,ieS s :
J commences at such time "A the Saa-S.t-. :
: the Treasury may designate Snch Iea,sIa. r.. !
should at least show that the provisISn ~.
sinking fund Is not intended to remain AZ a..
} letter upon the statute book. When naeo'
snail return, and with it the power to rand
tnat provision effective, should any furthe,
aid De necessary, the Secretary would 70
spectiuliy suggest whether such income a,
may DC. received from the public domain, from
sale, or In the shape of rents and royalty, may
no. oe oeneneially appropriated to the same
purpose. from preceding statements it ap
pears tnat, exclusive Of the receipts from or
alnary sources, the amounts following are tc
1e PROVIDED For the fiscal year ending
June oO, 1865. $570, ,727 sos IL; for the flscsl
year ending June 30. 1856, S469. .621 .OO5 IT.
s,.h, 2t,o4oso4o oi32S Deduct amount now
authorized aud balance 10 the Treasnrv LII
4, lSo4, $3.50 063, 1892, it leaves balance ~
osop Se provided M tor by additional legislation of
S4ou zo5s325 70. 1t will be observed Tho,
snl: Daiance Is predicated upon continoencies
WHICH may not occur, and calculations which
may prove deceptive. 1t would he nnsafa
therefore, TO limit 80 closely the provisions tn
9e maoe Dy congress for meeting the exnen.
u'.ures OF TINS ana the succeeding years. To
raise large portion of the amount necassarv
i 10
OBVIOUS that resource was to be had 10 loans
Wnicn nave been already In part negotiated.
Inc necessities OF former years have led to
many expedients, as il is apparent from the
diversity OF forms which our securities pre-
sent. As the debt increases from wear m
year, borrowing becomes more dificult
Embarrassed as the country Is with two svs-
TENS OF banking, aud obstrueted as the gov.
ernment Is by a currency wholly beyond Its
POI Ia Nil faok4 4ln
tion far, II at all, beyond its present limit
could only be iustlded by absolute necessity.
TO thrust our securities upon the market In
such amounts as 1t is not able to bear, and TO
retain no check upon stock jobbing combina-
uons, must exercise disastrous effect unon
public credit, and operate iniuriously upon
large numbers who have heretofore invested
their means literally and confldingly In gov
ernment issues. The Secretary is not un-
mindful that In the opinion OF many persons
conversant with financial matters, resource
should be had to foreign markets, and in two
acts OF Congress, one of which Is still in force
authority has been given to negotiate a for
eign loan. This, If practicable at all, on terms
when the Secretary could feel justified in ac-
cepting, would, in his opinion, at the present
time and under existing laws, be SO inconsid-
cradle In amount that its effects would be
merely temporary, and would afford us an
oAOsAothOA AobhCk tuau q Ecilcls OuI DOQQS
have already, to a considerable amount, been
sought for abroad, and to that extent the
nome market has been relieved and strength
ened. Communication with Europe is now
so easy and regular, intelligence is transmitted
so rapidly, business facilities are SO abundant.
that foreign markets are almost at our own
doors, and 3 demand abroad Is felt almost at
the moment, and supplied without injurious
delay. To effect foreign loan would not, as
II has anQtnad ffAIf no al A
all to the whole amount OF sales unless stimu-
lated by efforts and inducements which our
financial condition have not as yet called for,
and though certain advantage might be
gained in the power to control In some degree
the rate of foreign exchange Uy the deposit of
large sum to be drawn against as occasion
might require, the possible benent thence to
be derived has not seemed sufficient to coun-
ter6alance other and opposing considerations.
This nation has been able SO far to conduct
domestic war of unparalleled magnitude and
cost without appealing for aid to any foreign
people. 1t has chosen to demonstrate its
power to put down insurrection by its own
strength, and furnish no pretence for doubt of
its entire ability to do SO, either to domestic
or foreign foe. The people of the United
States have felt just pride in their position
before the world. In the judgment of the
Secretary, it may be we'll doubted whether the
national credit abroad has not been strength
ened and sustained by the tact that foreign
investments in our securities have not been
sought by US, and whether we have not found
pecuniary advantage in sell freliance; but
however this may be, It seemed to the Secre-
tary that even ii inclined to attempt the ne
g0tiations of q foreign loan, the time was
unpropitious, and the difficulties attending
sHch negotiation, while exchange was sub
ject to rapid and violent fluctuations, upon
4av eqfp a alunnaf ina M
BILE. Whatever risk was to be incurred must
necessarily fall upon the government. He
thought 1t wiser therefore to wait until events
should have more fully demonstrated
the inevitably favorable result Of the contest
in which the nation is engaged, which time he
believes to be near at hand, rather than ven
ture upon an experiment which, If successful,
could afford but temporary relief, and lail-
ure in might be attended with evils OF a very
serious character. Believing the country eau,
ii it will, sustain for long timeto come any
burden, which the war is likely to impose, the
| Secretary has deferred an undertaking which
seemed to him so doubtful of success and so
| questionable in its results. 1t may be added
that to these considerations that to have the
| interest on our public debt payable at home
and to our own rather than to a foreign peo
pie, are advantages the value and Importance
of which can hardly be too highly estimated.
The whole amount of national circulation
not bearing interest, exclusive of fractional
currency and OF notes issued by national
banks, is limited to four hundred millions OF
| dollars, subject 70 slight occasional increase
| rom the tiity millions held in reserve for the
payment of temporary deposits. OF nye-per
| cent. interest bearing notes, there were cut
| standing on the 1st OF November last, $l20,
| 5l9,110. To a considerable extent these notes
have been, and will continue to be, used rs
currency. Those with coupons have been
found particularly Objectionable. And though
Withdrawn to certain extent while the inter
| est was maturing they are liable to be periodi
| cally rushed upon the market. In considera
tion OF this feature, large amount-7iz:-
about ninety millions Of the original issue OF
/ 15O,OO0,O0O of these coupon notes-have
been Withdrawn and destroyed, and their place
occupied by notes payable in three years,
bearing interest at six per centum, compound
ed semi-annually. This is believed to be the
best form OF interest bearing legal tender
notes, as being more likely to be withdrawn
/ and held until maturity as an investment. or
these, $15, 100000 in amount were issued un-
der the act OF March 3, 1868, and about 800,
| 100000 under the act of June 80, 1864. The
total amount of interest bearing notes out
standing on the 22d OF November last was
S210, ,222 $40. What proportion of these may
1 be considered as an addition to the circulation
! | am unable to determine. To that extent,
whatever it may be, they contribute to the
amount of the currency, and thus in some de-
gree occasion, and in a still greater degree
sustain an increase of prices and depress va
! lues.
The amount Of bills issued to the natioual
banks, as appears from the books of the Con
troller of the Currency, was up to the 22d OF
November inclusive, $65, ,160.210. As these
banks have absorbed capital which might
otherwise have been invested in state eorpor
ate Institutions, and in many instances have
taken the place of those institutions by con-
version, these issues cannot be regarded as SO
much addition to the body Of currency. The
returns on file at the department show that
the whole circulation of the State Banks on
the first OF january, 1864, returned to the In
ternal Revenue Bureau, aad which embraced,
with few trifing exceptions, all Of these In
situations outside OF the rebellious states, was
only S126.l ,606 72. The diminutlon Is $43,