The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-12-16

royalty, may not be beneficially appropriated to
the same purpose. From preceding statements
it appears that, exclusive of the receipts from
ordinary sources, the amounts following are
to be provided. viz For the fiscal year end
ing June 80, 1865, $570, 727, sos II for the fs.
cal year ending June 80, 1866 $469, ,621, ,O05.17
total, $1,040, 348, ,513.2S. Deduct amount
now authorized and balance in the Treasury
July 1. 1864, 1850, O63, ,1SS. .O2, it leaves bal
ance to be provided for by additional legisla-
tion of $3.50, ,285, ,325.26. 1t will be observed
that this balance is predicated upon contingen-
cies which may not occur, and calculations
which may prove deceptive. 1t would be un-
safe, therefore, to limit so closely the pro.
visions to be made by Congress for meeting
the expenditures of this and succeeding years.
10 raise large portion OF the amount neces-
sary to meet these authorized expenditures, it
Is obvious that recourse was to be had to loans,
which have been already in part negotiated.
The necessities of former years have led to
many expedients, as 1t is apparent from the
diversity of forms which our securities pre-
sent As the debt increases from year to year,
borrowing becomes more difficult. Embar.
rassed as the country is with two systems of
banking, and Obstructed as the government is
by q currency wholly beyond its control, it is
manifest that to push its circulation far if at ALL
beyond its present limit, could only be justified
by absolute necessity. To thrust our securities
upon the market in such amounts as it is not
able to bear. and to retain no check upon stock
Jobbing combinations, must exercise disaS-
trous effect upon public credit, and operate
iDjuriously upon large numbers who have here.
tofore invested their means literally aud con-
fidingly in government issues.
The Secretary is not unmindful that in the
opinion OF many persons cOnversant with finan-
cla1 matters a ShOu1d no hod
eign markets, and in two acts of Congress, one
of which is still in force authority has been
given to negotiate foreign loan. This, If
practicable at all, on terms which the Secreta-
ry could feel justified in accepting, would, in
his opinion, at the present time and under ex-
isting laws, be SO inconsiderable in amount
that its effects would be merely temporary,
and would afford an alleviation rather than
relief. Our bonds have already, to a consider
able amount, been sought for abroad. and to
that extent the home market has been relieved
and strengthened. Communication with Eu-
rope is now 80 easy and regular, intelligence is
transmitted so rapidly, business facilities are so
abundant, that foreign markets are almost at
our own doors, and demand abroad is felt al.
most at the moment, and supplied without in
furious delay. To effect foreign loan would
not, as 1t has seemed to the Secretary add
much if at all to the whole amount of sales un-
less stimulated by efforts and inducements
which our financial condition has not as yet
called for, and though a certain advantage
might be gained in the power to control in
some degree the rate of foreign exchange by
the deposit of large sum to be drawn against
as occasion might require, the possible benefit
thence to be derived has not seemed sufficient
to couDterbalance other and opposing consid-
eratiOns. This nation has been able so far to
conduct domestic war of unparalleled mag
nitude and cost without appealing for aid to
f>roS 10 he's <,l>o
strate 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 po-
sition before the world.
In the Judgment OF the Secretary 1t may be
well doubted whether the national credit
abroad has not been strengthened and sus.
tanned by the fact that foreign investments in
our securities have not been sought by us and
whether we have not found pecuniary advan-
tage in self-reliance but however this may be,
1t seemed to the Secretary that even If inclined
to attempt the negotiations of a foreign loan,
the time was unpropitious, and the difficulties
attending such negotiation, while exchange
was subject to rapid and violent fluctuations,
upon any safe terms seemed almost insur-
mOuntable. 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 result of the contest in which
the nation Is engaged, which time he believes
to be near at hand, rather than venture upon
an experiment which, If successful, could af-
ford but temporary relief and o failure in
which might be attended with evils of very
serious character. Believing that the country
can, if it will, sustain for long time to come
any burden which the war is likely to impose
the Secretary has deferred an undertaking
ID % l.. II >r
and 80 questionable In its results. It may be
added to these considerations that to have the
interest on our public debt payable at home,
and to our own rather than to q foreign peo-
pie, are advantages the value and importance
of which can hardly be too highly estimated.
In some particulars the Secretary has found
himself embarrassed by the restrictive provis-
therefore, at an early day, suggest such modia-
cations as he considers necessary. In his judg-
ment, q wide discretion should be intrusted to
the officer charged with the duty of negotiat-
ing loans, in order that he may be enabled to
avoid unexpected difficulties occasioned by,
possibly, conditions of the money market.
This delicate and responsible duty must neces-
pie can have no other reliable security for
1aithfulness in its discharge than may be found
In the established character of the individual
charged with so important trust, whoever he
may be. The discretion thus cOpfided should,
in the opinion of the Secretary, include the
power Of increasing the currency. To no in
dividual would any considerable addition to the
circulation, in any form, be more objection
able than to the present head of the Treasury
Department, and no one would resort to such
q measure, when the circulation was ade-
quate to the wants of business, with
more reluctance. Nor does he believe
that patriotic people, struggling for. ma
tionai existence and possessed Of ample means,
would compel him to adopt measure so
fraught with injurious consequences, as an
issue Of paper money beyond the limit so pre-
scribed. The question, however. would be
one for that people to decide. They have pro-
nonnced for q continuance of the war, until its
great objects shall have been accomplished, In
unmistakable terms. 1t Is for them to fur
ther determine whether the necessary means
shall be furnished by way of loan, and the cir
culation be restrained within safe limits or
whether they will prefer to endorse the evils of
exorbitant prices, with = loss Of credit in th q