Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1864-12-15

United States have felt Just pride in their position before
the world In the Judgment OF tho Secretary u may well
be doubted whether the nstona credit abroad has not
been strengthened and sustained by the TACT that foreign
investments in securities have not been sought by
and whether wa have not found pecuniary advantage in
selreance but however this may be, 1t seemed 10 the
Secretary that if inclined to attempt the negotiation
Of foreign loan the time was unpropihous, and the diff
cutes attending such negotiation, while exchange was
subject 10 rapid and violent fluctuations, upon any safe
terms appeared almost nEurmountabe. Whatever risk
10 be incurred must necessarily fall upon the Govern
men he thought it wiser, therefore to walt until events
should have fully demonstrated the inevitably favor
able results OF the contest in which the nation engaged
which time ne believes to be at hand rather than ven
ture upon experiment which II successful could anord
but temporary relief, and failure in which might be at
tended with evils of very serious character Believing
the country can it WILL sustain for long time to como
any burden which tho war likely 70 impose inc secre
doubtful Of aud questionable in ITS results 1t
may be added these considerations that to have the
sres on public debt payable at home and to our own
rather than to foreign people, advantages the value
aud importance o; which can hardly DO too highly est-
mated .
TREASURY NOTES ArLoAT.
The whole amount of national circulation not bearing
Interest exclusive of fractional currency aud of notes is
sued by national banks is limited to four hundred millions
OF dollars subject TO slight occasional increase from the
fifty millions held for the payment OF temporary
deposs OF five per cent interest bearing notes there
outstanding the Let OF November last
To considerable extent these notes have been and will
continue be currency. Those with coupons have
4
TO certain extent while the interest was maturing they
liable to be periodically rushed upon the market
In consideration Of this feature large amount-yz
about ninety millions of the original issue Of 200
OF these coupon been withdrawn and destroyed
and their place occupied by notes payable in three years,
bearing interest at per ceHtu compounded semannu
ally. This Ia believed to be the best form of interest
bearing legal tender notes. being most likely to be with
drawn ana held until maturity as an Investment OF these
1853 and about 800 900 under the act Of June 3d.
1884 The total amount of interest bearing notes out
standing on the 22d of November last $20 222 s!O
What proportion of these may considered addition
TO the circulation am unable to determine To that
tent whatever il may be- they contribute TO tho amount
of the currency and thus in degree OCCASION and IN
ft greater degree su'aio an increase oil pFleea and
dePrsss values.
THE RATIONAL BANK CURRENCY.
The amount Of bills issnsd to the National Banks as
appears from the books of the Comptroller Of the Cur
$685. 602l0 As these banks have absorbed capital which
might otherwise have bsen invested in State corpo-
rate institutions, and in instances have taken the
place OF these institutions by conversion these issues can
not be regarded much addition to the body OF Gull
reIcy The returns file ut the Department show that
the whole circulation of the State banks the lst OF
January, 1864 $3.50 926 1873 while the whole crcu
son Of such banks for the month of July 1854 returned
to the Internal Revenue Bureau, and which embraced,
with few tflnng exceptions all Of these institutions
outside OF the rebelous States was only 6Oo
The dimuuiion is SAB 1852, which, deducted from
602l0 leaves S2l 1861 as the amount OF increase
| 10 November 90, 1864.
y
hos not been enlarged since July the subsequent returns,
though incomplete would tend rather to show dminu
ton snce that date Arguing from the fact that the
of have almost ceased TO be current in
of the Northwestern States it may well be doubted
whether, under the limitations of the law authorizing
national banks the establishment of these institutions has
not had the effect rather TO limit than increase the
whole amount of circulation Ii is observable that not
wshstandDg the apparently large circulation Of paper
money ssned under the authority OF the various acts of
Congress- before enumerated its scsrcty in the market
has OccgBoned slight embarrassment in the negotiation
Of loans his only be accounted for upon the sup
position that large amounts carefully held by the
people thereby exhibiting their confidence 10 its character
and value aud that the impetus given TO trade Of every
description By the large and increasing wants OF Govern
require largely increased amount Of the circulating
medium rice Of prices tends proPortonately IN the
| same direction.
Believing however that with the large addition made
10 the volume Of currency by State banks through their
forms of credit the whole amount far exceeded
the limit of necessity, 1t with extreme reluctance that
the Secretary felt himself compelled to replace the i've
per cent coupon notes. which lad been Withdrawn by
per cent compound interest notes under the act
Of jane 90 1884, and to exceed that amount to small
extent but the necessity Of tho hour left him no choice
and he will proceed TO state the condition Of financial
affairs which, in his Judgment, rendered such action in
peTatiTe,
TIE GOVERNMENT LOANS.
On assuming Office upon the 5h day OF July last, the
Secretary found bis condition peculiarly embarrassing
The cssh balance IN the Treasury the st Of July
IS before stated sl3S42 sos the unpaid acquisitions on
the 9th Ell SlI 000 the amount OF certificates of
Indebtedness outstanding WAS l6l796,00o The daily
expenditures could be calculated less than and
quarter millions. The larger portion Of unpaid requs
tons for pay 70 the army, and the Secretary
| obliged 10 look forward 10 increase from the
quarter Of fifty millions the LIST of September
Thus situated he could not avoid scrHtinzng, with
anxiety hs probable Of meeting these most press
ing claims upon the Treasury and aso providing for the
additional daily expenditure He could look nowhere but
TO the receipts from ordinary and to the power to
borrow money under existing laws From customs he
could expect substantial aid and the returns for the
fret quarter OF the current year will show that beyond
the pledged pay the interest upon bonds issued
and TO be issued during the year. comparatively little
sistsDce could be derived from this source
With regard 10 internal revenue the Secretary felt
encouraged Congress had wisely provided for large in
crease internal duteS by saw which went into operation
the lst dsy Of July Under former laws the amount
received had ,tsady increasing duTog the three pre-
osdins months and in the month Of June had reached
very nearly fifteen millions Of dollars The Secretary
6dsny hoped that for July and the succeeding months it
would reach did not exceed the daily average of three
quarters Of million bat this hope, if realized would
ell, leave him with verylaTgs deficiency = meet which
10 part he asue certificates of Indebtedness to pub
o creditors It desirable, however to avoid could
other be found, increasing the amount Of these
secuTtsI He might have to the power confer
red By the act OF Juus 80 1884 to put additional two
hundred millions Of legal tender upon the market
and increase that amount By sixty million, in
substitution Tor I've per Issued under the act Of
March g. 1859 which had been destroyed or were ready
70 be DESTROYED ushed the money market with
circulation sufficiently at least to meet the necessity Of
business he anxious If pOssibe to avoid 40 doubtful
sn expedent
Tbs prospect OF negotiating loan In the ordinary way
Il by 6alterlDg the notice for loan Of