, 1864-12-10

rnther than fetfel
ing foreign loan on the terms offered as undeslt-
III yho1e amount Of national circulation not
bearing interest exclusive OF. fractional currency
and OF notes isaHed hy national banks, ia limited
to four hundred millions Of dollar. subject 10
slisbt occasional tns1caec from the aity millions
held In reeerTe fo1 the payment Of temporary do
poslts. OF fsc per cent interest bearing notss,
thc1c were outstanding on the 1st Of November
last *1so. .51o. no. To considerable extent these
notes haye been, and will continue. to be used as
currency. Those with coupons have been found
particularly Objectionable. A. though Hithdrawn
10 eerta'n extent, Nhile the Interest WIS ma'us-
he market. In consIdeTatlon Of thls feature.
large amount-v Viz: abont ninety millions Of tho
original smount Of $3.50 ooo, ,oo0 Of these coupon
their place occupied by tnotcs payable in,thrce
p@onnaed @ aemfannnsi1y: This Il believed to be he
ss psf Sens % i! Eey 10 bs and hed
I'll maturity an Investment OF these, %l30, ,00Q,-
OO0 in n1nount were Issued under the act of March
IA ane ss os of ntesest qns
was sslo, =, So. What proportion Of these maj ma5
an ' anable to 70 determine, 10 hat extent. what.
ever It may be, they contribute 10 the currency,
ard thus ID some degree OCCASION. and IN still
greater degree sustain an Increase OF prices and
fhc amountof bills Issued to the national banks.
appears from the books Of the Controller Of the
eive, 81, id 10. a these banks have absarbed iau
cspital which might otherwise hare been invested
IN State corporate Institutions, and IN many In
Se efde
su much addition to the body Of currency The
returns on file at The department show that the
anasr g. %e o. tho sos e
circulation OF such banks for the month OF .J1Iy.
1861, returned to the Internal Revenue Bureau,
and .1l which M embraced. 9Th few tElaing e1cep.
nsllioqs statss Eas ss cry s!2s is The d.
~ =, ,Ssyss S 81 as the amount Of
On the superstition that the circulation Of State
banks has not been enlarged sincs July, the sub
sSn Ssh %9nd tgnd
ing from the, fact that tho notes Of State banks
hive nlmoet ceased to be current IN BONE OF the
NSss saGi M ay y I'll H. Gs s d9aStd snSa
izlug national banks, the establishment Of these
Institutions has not had the effect rather to limit
than increase the whole amount Of circulation. It
large circulation Of paper money iusued under the
authority Of the various Acts oi Congress, before
enumerated, its scarcity In the market has occa-
stoned no slight embarrassment Ia the negotiation
Of loans This can be accounted for only upon
the superstition that large amounts arc carefully
hsld By ths people. thereby GshioltinS thcIr con
petus given TO trade Of every description BY the
large Increasing wants Of Government, requires
largely Increased amount OF tho circulating me-
The same direction: Believing, however, that
with the large addition made to the volume Of cur
rency by State banks, through their varions forms
OF necessity, it was with extreme reluctance that
tho secre:ary felt himself compelled to replaces
the FIVE per cent coupon notes, which had been
pouna Interest notes @ Under tho Il set set of June 81 @ s
and even to exceed that amount to small ck-
tent. But the necessity Of the hour LETT him no
don sfa h M p~ IN 70 IT. s
rendered such acdon imperative. On assuming
office upon the 9Th day q July last. the Secretary
found his condition t. peculiarly embarrassing; The
July, az before stated, S1H 649 5067 the unpaid
acquisitions on the bth were $71,814, 600, fhe
amonnt q @ eeFaaeatss M @ .! Indebtedness ontsandin;
not be eaicuiatel at less than two and quarter
millions. The larger portion Of unpaid requts1-
teRs t. tue a ND TIE Tas 'S
same quarter Of over so coo COO the 1st Of Sep
tembct. Thus situated he could notayold scrutfn-
izing with some anxiety, hts probable means = Of
Treasury, and also providing for the additional
daily expenditures lie could not look nowhere
hut 10 the receipts from ordinary sources, and to
the power to borrow money under e1i sting laws.
From customs he could expect no substantial aid.
and the returns for the first quarter OF the current
year y Wy s 1aa ssssa a1 g Sd
NfNA* oSA-~2
anec could bs derived nom Ibis source.
With regard to internal revenue, the secsetary
felt more encouraged. Congress had wisely pro-
vfded for large increase Of internal dudes by
law which went into operation on the st dny OF
July. Under former laws the amount received
had been steadily increasing during the three pre-
ceiling months, and in the month Of june had
reached very nearly fifteen millions OF dollars.
The seeretary confidently hoped that for Try nd
not exceed, the daily average Of threcquarters Of
million !: but this hope, Il realized, would still
leaye him With rery large deficiency, to meet
dehtednc.s to public creditors II was desirable,
however, to avoid, could other means he found,
increasing the ansuunt Of these securities He
might hare recourse to the power conferred By
tho act Of June 80, 1854, to put au additional two
hundred millions Of legal-tendxr notes upon the
market, and eren increasing the amount By some
fued under the act of March $, 1851, which hid
been destroyed. Flushed 4. tho money market
was with circulation sufficiently 1T least to meet
x,ble, 10 avoid 90 doubtful an cxpcdient. Tho
prospect Of negotiating loan IN tho ordinary
way was by no naeans fattering, 90 the notice
The I'D Of June had been withdrawn on the I'd Of
July, 1.-THE secsstary having reason to believe
: thatsnch loan would not be taken on tsrns which
1t would be advisable for The Government to ae-
cept Under these circumstances the Secretary
thought It advisable. in order to meet growing
contingencies. to borrow upon bonds or not, and
millions Of dollars OF the banks IN the sides Of
New York, Philadelphia and Boston, and met the
representatives Of large number OF these insti-
tutions in New York. for the purpose Of effecting
that object The result proved, however, that
Notwithstanding 1rofessed, and. as the Secretary
wss convinced, rcal destre to aid tho Govern.
the assistance required upon the terms which, IN.
der existing provisions Or hw. the Secretary felt
authorized 10 accept He had no other alternative
than to Issue lcca1-tendet notes to a very large
amount or again 10 advcrtfsc for a loan, md lie
had no hesitation a to what course should be
adopted. Accordingly o. The 9Th Of Jnly be il.
sued proposals for national loan under the act
Of June 80, 1864, upon notes payable IN three
years with eenliannual Interest at 310 per cent
I'm per annGn. IN lawful money: ns ineur5ed 7; d
loan, believing that It should be as widely dlusea
and Is generally understood as possible, and oler
ed liberal Inducements to stimulate the efforts OF
corporations md individuals 70 dlspote pl the
notes. His snccees, though not what he hoped for
Or contemplated, has been such as not 70 diminish
his confidence In Tie disposition and ability Of the
people to relieve the wants Of their Go1elnrnent
serious obstacle to greater success has been, the
Secretary believes. The amount Of other desirablc
national securities pressing upon the market and
Fs Festmentsss Falling 10 raise t6e means required
IN the ordinary mode, and urged BY the conviction
that the large amount Of suspended requiaitions-
dnced, the Secretary resolved to use all the means
at his command to pay 50 much At 1eust as Tas due
to cur bruEe soldiers, who we're suffering trom The
@ eoaiinaing to serss 5sir Country With uhaInching
courage and noncomplaining devotion. TO effect
tA,s Object be waa compelled to Ieplaee tho whole
eeiea, % ameuntias nu 10 n's he WI" Whole to more
fhan eighty millions of dollafa, and even
slightly. to exceed that sum. More fully to
ass Himself Il e yish s ~ many OIL
and soldiers, through the paEmaatcrs, to ofer
to such as desire to receive them, teven-thfrty
notes Of small denominations He was gfahded to
nnteH
many instances, not on1y receiving them With al
able 70 aid theft country BY ioaning money to the
Government. t =, whole amount Of notes thus
disposed Of exceeded twenty million dollars. and
lei has msds a oa
relief to the Treasury, but proved beneatto the
recipients, in udording them u eafe and valuable
Inv esment md an easy mode Of sraaami.tl1g funds
tbe Secretary again offered to public competition
bonds Issued under the act Of March ,1SG3, amount
Ing 70 about se2 ooo ooo; This offer was Enost f.
yornbly received the bids reaching nearly 10 000
0c0, and the whole amount offered being taken ut
premium Of four per ccntum and upward, the
treasury RECEIVING, premium included, the sum Of
Subsequently, on The 1st Of October, the seere-
asy advertised for another loan Of forty millions
upon sstTenty bonds iasusd 9asF s a. tae act Of
market WIS In q fererieh condition. arising from
Violent fluctuations In gold, and other causes, and
serious doubts were entertained whether accepta-
bic offers would he made. Under these ctrcum-
stances; and with the hope Of Affecting favorably
the market price Of certificates Of indebtedness.
which had Become somewhat depressed br the
sa,iy increased, the Secretary decided to receive
one-iourth Of the subscEtption IN these seeultties
The result was TINT n9tWithf%tnndng % @ the aatici
aanounting to nearly s60o o6o, ,ooo and the whole
amount offered wes taken at rate above par, I'D snd
avernging to tlte Government traction less fnEa
nArnf1AfinGB
cd satisfactory H. evidence noE only ot the ability Of
the people furnish At shert aose sae6 snms
| IS may be required, bnt o. the entire confidence
years OF most. expensive and wasting var, The
| means TO continue it eeem apparently nndlinfn. /
| fehed, while the determination TO prosecute tt
+, Is