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

payable in Law fol money which notes. payable at periods
expressed on their face, might be legal tender
their face value. BY tho third section $3.50 600 900 o
United States notes. of like character with those pre-
vousy issued under the provisions of former acts
authorized as part of said loan.
IL VIII be seen that by the several acts OF Congress
ierred TO- Government paper, as substitute for coin
under the respective designations Of United States notes
and Treasury notes. might be issued TO the amount oil
$3.50 600 o00 vE United States Treasury notes. not bear
ing interest the amount of $3.50 O00 COO but of which
900 to be held for the redemption
Of temporary deposites, and to be replaced
possible thus leaving the whole intended for cir
cuiaon but and S4O0 900 900 of Treasury
notes, bearing interest and which, il hoped and be-
eved would not remain in circulation they could be
made legal tender only for their face value without n
terist ss@5-
by Congress with view provide the large re.
qured to meet the annual expenditures period nclud
ing the scal OF 1864 reference has been made to
the several auxiliary designed 10 meet the ex-
gences OF the hour but neither enargng diminishing
the amount required and serving other purpose than
mere temporary OF such the act of March
l. 1862 authorizing the issue of certificates Of indebted
ness payable year less after date with per cent
interest, ana the several acts authorizing the Secretary to
receive deposits at the Treasury for period not less than
thirty days to be paid at ten days notice OF some.
what similar character from its necessarily limited amount
the fractional currency authorized by the fourth section
the act of March 3, 1863.
THE DIFFICULTY OF MAKING CORRECT ESTIMATES.
The object Of the Secretary in calling attention to these
various acts of Congress- in connection with the estimates
of his predecessor, il to show
FirsThe utter impossibty, In times like the present.
OF ascetainng with any degree Of certainty prospective
demands upon the Treasury Estimates the most liberal
scale may be- as they have BEEN found inadequate Hence
arise large deficiencies, 0ccasoned by unexpected n
of military force in the first place. and upon rise
OF prices for material invariably consequent upon military
operations conducted upon gigantic scale, if the
currency could be maintained n sound aud natural
dition.
Sseondiy-The difficulty Of fixing upon any policy not
subject to the contingencies of the hour. 1t is, in the
judgment not only difficult but impossible to
sppy fixed rules to condition of affairs constantly chang
ing to meet contingencies which human wisdom
foresee by steady application of general laws especially
in Government and with people where public opinion
the controlling element aud that opinion not under the
direction OF those who may happen to administer public
affairs
THE ISSUE OF PAPER MONEY.
Accordingly it has been seen that the attempt TO con-
duct financial operations on so immense scale upon
specie basis proved impracticabe. Resort TO
other species OF currency of national character became
as was unanswera5ly demonstrated by my
predecessor in his report of December, 1862 Ffsught
with danger, Government paper has amost invariably
proved there was, under the circumstance other
OF course hs danger increases with enlarged de-
mands upon the Treasury growing out ofncreased eIpen
ditures rise Of prices occasoned by increase of
taxation articles Of consumption, the withdrawal Of
labor from productive pursuits accompanied by aRgrs
waited demand for products and material incident to
Of The problem to be solved s how to mitigate the
evil If il cannot be fully avoided If loans be negc-
ated at reasonable rates. and the Treasury thus
kept n condition to meet current demands it is not diff
fcut to restrain the circulation of Government paper
within safe limits But this, not always certain 10 time
of peacetbougb, with abundant resources, il always
should be--is often found impossible when war upon
large scale aod long continued has created dsrus Hence
has followed that under the acte referred to- bonds
have assumed various FORMS TO sus what supposed TO
be the choice OF lsudsrs.
A SPECIE BASIS NOT LOST SIGHT or.
Our notes have shown similar diversity Of character
While il has been found impossible to avoid the necessity
Of them 10 extent which could not but aggravas
the troubles incident to the necessities Of condition
yet though forced 70 resort TO the Issue of paper for the
time the idea Of specie bass not lost sight Of the
payment Of interest long loans In coin amply
cured Ard though in several Of the Ects authorizing the
issue OF bonds at long periods payment OF the principal at
maturity n coin, not specifically provided the omission
it s believed accidental As there could have been
no intention TO make distinction between the different
classes OF securities in this regard s respectfully
mended t. all doubt upon this point by proper egs
lston Although the wisdom OF thus securing the payment
of interest bonds in coin has been Questioned aud the
pledge of the receipts from customs De collected in coin
Tor that purpose has perhaps facilitated the operations OF
those dspofed to ephsnce the price of gold for speculative
purposes the Secretary of the opinion that these
not only wise but necessary at the time and
greatly aided 10 sustaining public credit.
THE ISSUE OF BONDS AND TREASURY NOTES
The expenditures for the preceding fiscal year slightly
exceeded the estimates of the Department that at the Last
Of Congress it not considered necessary to To-
laws Experience has shown, however, that changes
OF form were advisable By act approved March 3,
1854 authority given TO the Secretary to sfue bonds
to the amount Of $500 900 000 in lieu of much Of
loan authorized by the act Of March g. 1863 redeemabe
after any period not lees hsn five years. and payable
more than forty years from date At subse period
Of the spsonJune So lS64the authority conferred by
the fret section Of the of March g. 1863 repealed
except 80 far il affected amount Of seventyhve mil
lions then advertised and power given to borrow four
hundred millions Of dollars bonds redeemable after FIVE
years and payable not than five years from date BY
the second section OF the act authority conferred
to issue lieu Of the amount Of bondp two hundred
millions in Treasury notes. which might be made legal
tender heir face value bearing interest at rate
ceedng and hreeenths per centum payable 10 law.
fu money and convertible at the pleasure OF the Secrt
tsry into bonds Issued under the authority Of said act
The Secretary further empowered to substitute
for Treasury notes. issued under former acts equal
amount notes such therein authorized table
appended to this report showing the amount issued under
the several acts hereDbefore referred TO TO the begnUiug
Of the present fiscal year from which appears that by
the laws 10 force that day the Secretary had authority
to borrow the credit OF the United States the
following viz:
F-Under the act Of March 1863 80 much Of SIS 900 OOC
advertised previously 10 Juue 30, 1861, had been
awarded 70 bidders. $32 i59 70t
Seeoad-Under the act Of March 8, 1854, so
much as had not been tubtcrited for and paid
into the Treasury, l27 52C
Tkrd-Under the act of June So lS6i...- 100000 G0t
Fourth Amount of Treasury notes issusd under
former acts, which had teen redeemed
cancelled and which the Secretary
thor zed 20 replace by notes under the act Of
June 80, 1854. .............,,,........ G2i9 40,
Total available resources under laws author.
king losn.s s622 2s4 81
To this may be added the actual balance in the
Treasury July 1864 s6i..............t..,,. Is 8i2 5Ss