The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-12-16
NEW SERIES-NO. SIG

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present, and debt of needless magnitude en-
tailed upon the future. Their financial officer
can only submit to their decision, and act as
the necessities of the occasion may demand.
| But the Secretary confidently believes that,
| Judging from past events and recent demons.
| trations, there can be little question what tn
public voice will be upon question so vital.
1t is in the province of Congress to indicate
| and determine upon the terms which may be
offered to those who are invited to invest their
means in government securities, and it would
seem both wise and prudent to make those
terms sufficiently liberal. If our public debt
must necessarily be large, and REQUIRE a long
course of years for its liquidation its wide dffa.
sion Is most desirable. Such advantages should
be offered as will induce all who have ANYTHING
to spare beyond the amount required for their
support or use, to invest that surplus or a nor
tion of it, in the national securities. These adj
vantages can only be in an increased rate of in
| terest, and exemption from public burdens and
security of possession. What limit should be
fixed in either of these particulars it is for the
practical experience and wisdom of Congress to
| ascertain and determine. ~
The experience of the past few months oar-
not have failed to convince the most care1eso
| observer mat whatever may be the effect of q
redundanr circulation upon the price of coin
Otner causes nave exercised greater and mora
deieterlous influence. In the course of few
Gays the prlce OF this article rose from about
SI9O 10 $3.50 IN paper for one dollar in specie.
| ana subsequently fell IN as short period to
$l.o| and then again rose as RAPIDLY to ~ 50
| ana all without any assigned cause traceable to
an increase or decrease in the circulation of
paper money, or an expansion or contraction
OF creolt or other similar influence on the mar
re! tenaing to occasion fluctuation so violent.
~ Is qulte apparent that the solution of the
problem may be found in the unpatriotic and
criminal efforts of speculatofs and probably of
secret enemies to raise the price of coin. re-
| gardless OF the injury inflicted upon the conn.
| try or desirable to infict upon it. All such
| attempts should be indignantly frowned upon
| py patriotic community, and the efforts Of all
goco cltlzens invoked to counteraot such ne
emplary punishment of combinations for such
purpose might tend to vindicate, if it could
not protect the public rights in this regard.
| forced e' o'
But whatever success might attend any effort
10 cnecH speculation In coin, or to counteract
lts injurious effect, it Is still obvious that so
| long as there remains large and Increasing
necessity for its use, and limited supply. it
Will command price commensurate With the
necessity and the difficulty of obtainino it.
This necessity arises from the demand for for
elgn exchange, for custom duties and to nav
the interest on the public debt The matter Of
1orelgn exchange do not propose to discuss.
The demand for duties on imports and that to
pay the interest on large portion of the nnb-
lie debt are SO far Identical that one ia denen.
dent upon the other. The law authorizing the
issue OF bonds bearing interest in coin. specii-
cally pledged the revenue from customs to the
payment OF that interest, and provided for the
collection of those duties in the same currency.
ln the opinion of the Secretary that pledge
snouid not be violated; departure from it
could only be vindicated by one of those state
necessities which justify nation in tempo
rarlly postponing its obligations in order to
preserve the power to discharge them at f1-
ture day.
When the pledge was given no one antici.
pated possible continuance of the war for
such length of time as would involve the in
crease OF the public debt to the point it has al
ready attained, or the possible payment of in.
terest in coin to an amount beyond the ability
OF duties on imports to supply. 1t will be no.
uceo, however, that our annual coin interest
now exceeds $50, 900, 900. Should the addi.
tional amount required for the expenditures of
the present fiscal year be raised upon bonds
bearing interest in coin, and the revenue from
customs not exceed the estimate predicted
upon the receipts of the first quarter, It is quite
manifest that resort must soon be had to some
1t1er source OF supply, or resources must be
u
character. 1t could not be expected that such
securities would stand on level with those.
the interest upon which is payable in coin. nm.
less an increased value should be given them by
higher rate of interest, or their payment
should be secured by specific lien upon rev.
In view Of the serious consideration pre.
sented by this question, whether as affecting
the market value of coin or the ability of gov
ernment to meet Its specific interest, should the
war continue, from the revanue now pecifical.
iy appropriated to that purpose, the Secretary
10 forced to the conclusion that we should in
the future rely for the most part upon securi-
ties bearing interest in currency convertible
into bonds, the interest of which is payable
in coin. Notes bearing an increased rate of in.
terest, payable in currency, redeemable in
three or five years, and convertible at maturi-
ty into 500 bonds, would be preferable in the
judgment of the Secretary, to any other form
of security. Bonds at long dates, the interest
ofwhich is payable in currency at the usual
rate, would be less attractive, and in the end
involve much greater sacrifice $3.50
The 7-30 notes authorized by the act of June
80, 1864, and now offered to the public present
as many advantages as any form of currency
security, uniting high rate of interest with
convertibility. At the period of their maturity
it may be confidently believed that the coun.
try will have been restored to state of seen.
rity and peace, with all disturbing elements
quieted, and resources increased and increasing
Its strength confirmed, and with ample abii.
lty to meet all Its obligations from its ordinary
resources.
(Sigued) w. P. FESSENDEN. -
Secretary of the Treasury.
Hon. HANNIBAL HAMLIN, Vice President of
the United States, and President of the
Senate. .a .,er-
GALE I'm NEW srrR
TO SHIPPING.
NEW York, Dec. ia high gale from
the West set in at midnight, with very
cold atmosphere. The brig Oriental is
ashore on the battery. The schooner Ea-
gle, with coal, bound to New Haven, sunk
near Brooklyn. Two or three lighters
have sunk by capsizing, and many vessels
have dragged anchors. It is reported
three lives were lost on schooner Eagle.