New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1864-12-07
accompanies this report and will repay attentive

The act OF February % 1862 provides that the coin
received for dutio imports shall after paying interest
bonds and notes. be appropriated 70 the purchase of
per cenum Of the public debt TO be set apart with
its accruing interest sinking fund as the Secretary
might. from time to time. direct, All experience has
proved that in time of war, when expenditures must
largely exceed receipts from ordinary sources ondarge
borrowed IN each year. the attempt to estao'
fish sinking fund invariably fails II Is, intact,
simply borrowing 10 lend again Tor this reason, no
attempt carry out this provision has yet been made
As the time is approaching however when the present
unnatural condition OF affairs may bce1pected 20 ter
inmate it is well consider whether some legislation,
posponng for tine the operation OF the re-
ferfsd to- and dsqetDg board OF officers as eonnis
sionors othe sinking fund under proper may
not be advisable their duties 10 commence at snch time
the Secretary Of tho Treasury may designate sucb
legislation should at least show that the provision Tor
sinking fond Is not intended to remain dead letter
upon the statute book When peace shall return. and
with il the power 10 render that provision elective,
should hDy further aid be necessary the Secretary
would respectfully suggest whether such income as
nav be received from the public domain from sale
in the shape OF rents and royalty may rot be Dene
fcially appropriated TO the same purpose FROM
preceding statements appears thar, exclusive OF the
receipts from ordinary sources, the amounts 1onow
inc to be provided viz For the fiscal year enalng
June 90 1865 $50 727 sos for the fiscal year ending
Jnae 30 1900 1863 62l, 00j l1total 81 oij 70
Deduct amount now authorized and balance In the
Treasury July |, lS6i, S5f0O63 ss Or 1t leaves pal
ance 10 be provided for by additional legislation OF
$40 2-J 32J &c II will be observed that TINS balance
is predicated upon contingencies which may not occur
and calculations which may prove deceptive III "ouiu
be uusae therefore to limit closely the provisions 70
be made by Congress for meeting the expenditures vi
this and the succeeding years. To raise large portion
OF the amount necessary TO meet these authorized eh
pendlres il is obvious that was TO Dc had TO
loans which have been already, In part, negotiated
The necessities of former years have fed to many expe
dents, it is apparent from The diversity OF forms
which securities present AS the deDt increas.s
from year 10 year. borrowing becomes more diucu'
Embarrassed the country is with two systcmsOi DanS
ing nnd DISTRACTED the Government is by currency
wholly beyond It's control, II IL manifest that 10
ffata oil hoy ~
eut Init could only be justified by absolute Necessity!
To thrust our securities upon the market in such
amounts il not able TO bear and TO retain no cheek
Bpnn stock Obbing combinations, must exercise uisss
irons olec upon public credit and operate nJuriouslg
upon lsr numbers who have heretofore invested their
means Zoe lily and confdingly in Government lssneo
The Seer ~ i not unmindful that in the opinion OF
many pc IS conyersant with inapcil matters re-
course a. Il be had 10 foreign markets, ana ia TWO
has been zen 10 negotiate n foreign loan This II
pxactics q all on terms which the Secretary could
Ml JUST in accepting. wousi in his opinion, ~ the
present and under existing laws, bs 80 inconsldei
able in gai that its effects would be merely tempo
rary ant 0ud afford al alienation rather taan re
lief Oui oads have already, 10 aooasidcrablc amount
been 60 for abroad, and 70 that extent the home
market been relieved and streng thened. COmmunlca
ton witt utope is now so easy and rcgnnr inteh
gence is lnsnitted rapidly business facilities are
20 abundu that foreign markets arc almost at our
own do1is and demand abroad Is felt Giinost az
the moinent and supplied without injurioo, Se
lay. 10 eject foreign loan would not az AZ mas
seemed 10 the Secretary add much II at al TO the Who're
amount of sales unless stimulated BY efforts AMI
inducements which financial condition has not as
yet called for and though certain advantage pe
gained In the power 10 control IN some degree .he
OF foreign exchange BY the deposit OF aarge sun 10 DE
drawn against as occasion might require Ire possoe
benefit thence be derived has not seemed suneet 70
counterbaance other and opposing conslderaioDs Ihs
nation has been able thus FAR 10 conduct domestic war
of UNPARALLELED ma gntude and cost without appealing
for aid any foreign people. IL was chosen 10 denoh
strnc its power 10 put down insurrcction py s own
.fan. far hAuhf
ability 10 do So either TO domestic or foreign Zoe Inc
people Of the United States have felt Just PRIDE IN
their position before the world In the Judgment Oh the
Secretary il may well be doubted whether the national
credit abroad has not been strengthened and sustained
b. the fact that foreign investments IN our securities
have not been sought by and whether we nave not
fDnnd 4 recuniay advantage In selfreiance; but how
ever this NAV be- il seemed 10 the Secretary that even
II inclined 10 attempt the negotiation OF i0reign oin
the time unpropltlOus and the dlcues Attending
such negoatoH while exchange was SUBJECT 10 rapu
and violent fluctuations upon any safe terms appeared
almost insurm0untabe. Whatever rlsk vas To Ue IN
cured must necessarily fall upon the Government he
thought wiser therefore To wait until events should
have more fully demonstrated tho inevitably favorable
result OF the contest in which the nation IA engaged
which time he believes TO be at hand rather than
venture upon an experiment which, If successful could
afford but temporary relief, and a failure In which
might be attended with evils OF very serious character
Believing the country can, If it will sustain for long
time to come a ou bos %sre an which
seemed ~ him 20 doubtful OF and so questionable
in lie results II may lie added to these considerations
that to have the interest ON onr pupnc deot W
home and to our rather than 10 foreign people,
are advantages the value and Importance OF which can
hardly be too highly estimated.
The whole amount of national circulation not bear.
ing interest exclusive Of fractional currency aud OF
notes issued By national banks IS limited to four hund'
red millions Of dollars subject to slight occasional IN
from the fifty millions held IN reserve tor tne pay
ment Of temporary deposits OF five per cent interest
bearing notes, there outstanding on the LIST OF
November last, Sl2o,5lsll0 10 q considerable ex'
tent these notes have been aud wiz continue 70 De;
used as currency Those with coupons have been found
particularly Objectionable. As though Withdrawn to
certain extent, while the interest was maturing,
they liable 10 be periodically fusacu upon
the market In consideration Of this feature.
large amount-yiS: about ninety millions Of the
original issue Of el50 100000 of these coupon notes
have been withdrawn and destroyed and Their place oc
cuped by notes payable III three years bearing interest
al ak per centum compounded semi-annuauy ms IS
believed to be the best form Of interest bearing legal
tender notes as being more likely TO De wnhdra.h anu
held until maturity as investment OF these. sl3,oV
900 IN amount were issued under the act OF March 3
1863 and about 500 100000 under the act of June 10
-ti The total amount Of interest bearing notes out
standing on the I'D OF November last was s2lo $40
What proportion OF these may be considered ns an add
ton 10 the circulation ain unable TO determine 10
that extent whateyer may be- they contribute 10 Tue
amount Of the currency. and thus in some degree occs
son and in still greater degree sustain an increase OF
prices and dcprcss values
The amount Of bills issued to the national banks. as
appcars from the books OF the Controller Of the Cur
rency was UP TO the 22d OF November inclusive.
Sos iGO2lO As these banks have absorbed capita
which might otherwise have been invested IN State
corporate institutions and IN many instances have
taken the place Of those Institutions By conversion.
these issues cannot be regarded 50 much addition 20
the body OF currency The returns Tile at the depart
ment show that the whole circulation OF the State banks
On the LIST OF January 1864 was slt9 9s6 29 while the
whole circulation Of such banks for the month Of July
1864 returned to the Internal Revenue Bureau. and
which embraced. with few trfing exceptions, all OF
these institutions outside OF the rcbelous States was
only sl26, loo COG y. The diminntlon is si9 - -
which deducted from S65 l02l0 leaves e2l 5000 -
lo fofi I'M IN Nny