Washington telegraph., 1864-01-06

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sage to the California legislature to.dav T.
EXHIBITS the State finances more fayo,obi,
th,ih was anticipated. Itrepresents the aori.
cultural, mining and manufacturing Interests
IN an Improving condition, and co nfdentIv
predicts that the first 80 miles of the Pacific
! raliroad will be completed within the time re-
quired by Congress-
concerning Federal relations, he recon.
menus reconstructing the Union by treating
'he seeded States as territories.
FEDERAL FINANCEs.-We have the Cincin
natti Commercial Of the 18th ult.. containing
the report of Mr.. Chase, the Federal Secretary
OF the Treasury. We extract the following
interesting statistics:
lhe actual receipts up to the Both June.
1868, were from ordinary sources sl24443
3l3 "a: from loans, $500, 266, ,6S2 80. Actual
expenditures, S714,609, 995 SO. The above
sum derived from leans, added to the amount
OF government debt the 1st day of July.
1868, shows the debt of the Federal Govern
ment on the lst day of July last, to have been
Sl,09S, 1893, 1Sl 81.
For the year ending | st July next, the TOT al
expenditures of the government actual and
estimated will be S7i9. I3l, $50 A. Deductinr
the estimated amounts to be derived from or
binary sources and the balance on hand. there
will be required from loans the addtiona
amount of S589, l63, 46O o. which will swell
the national debt on the 1st day of July next
to the sum of 81, $50, ,956. Gal A. For the
coming fiscal year beginning on the lst of Jul
next, he estimates follows: Total expendi
lures, Sl;l5l. Sl5,0SS SS From which he de
ducts the amounts formerly appropriated and
which will probably rem ain undrawn at that
time, estimated at, Si00, 600 900 90. which
willleave the actual expenditure at s75I.SI5.-
OoS st. OF this amount. he supposes there
will be raised from ordinary sources S2O6 $50
$50 90, leaving to be raised by loans the sum
of S544,91S,548 %. which will swell TIE ma
tlonal debt on the lst day of July, 1865, to the
sum of 81, 23l, 935, 100 81.
He then proceeds to discuss the different
modes OF raising the additional loans. He is
opposed to the further issue of greenbacks,
concerning which he remarks as follows:
1.-The limit prescI ibed by law to the issue of
United States notes has Aeen reached and the
Secretary thinks it clearly inexpedent to in
crease the amount. When circulation exceeds
the legitimate requirements for real payments
and exchanges, no addition to its volume will
Increase its value. On the contrary, such ad-
di'ion tenls inevitably to depreciation and
depreciation, if addition be continued. viii find
its only practical limit in the utter worthless
ness of the augmented mass
When Congress authorize i the creation of
debt, to a certain extent in the form of United
States notes, and impressed these notes
Il qualities of a ting medium, its action
was justified by the disappearance # coin in
consequence of the suspension of specie pay
ments; by the necessity OF providing a medium
in which taxes could be collected, loans receiv-
ell, and payments made; and by the obvious
expediency of providing that medium in the
form of national issues instead of resorting
to the paper of banks. Under the circuinstan-
ces its action was wise and necessary; but il
was equally wise and necessary to limit the ex-
tent OF the issues by the necessity which de-
manded them. They were wanted to fl the
vacuum caused by the disappearance of coin
I and to supply the additional demands created
by the increased number and variety of money
payments. Congress believed that four hun
| dred millions would suffice for these purposes.
.and therefore limited issues to that sum.
| The Secretary proposes 10 change of this
! limitation, and places no reliance, therefore,
on any increase of resources from increase of
circulation Additional loans in this mode
would. indeed, almost certainly prove illusory;
| for diminished value could hardly fail to neu-
tralize increased amount.
Sufficient circulation having already been
provided, the government must now borrow
like any other employer of capital temporarily
requiring more than income will supply, and
allow for the credit which will secure advan-
tageous loans upon good faith, industrial ac-
tiyity, accumulated, though not Immediately
available, capital, and satisfactory provision
for punctual payment of accruing interest and
ultimate reimbursement of principal"
The amounts also, which it is prudent to
raise by certificates of Indebtedness, has
reached its limit and he disapproves of any
extension of that method. lie proceeds as
follows:
''To the subscriptions of the remaining Five
twenties and deposits for temporary loan,
there fore, must be directed all reasonable ex-
recitation of means for the service of the cur
rent ear, except from negotiations under the
the act of last session. The sums TO be looked
for from these two sources have already been
tated, and amount to Sl3G,05S, eco. If this
aggregate be deducted frC III the amount to be
provided by loans for the last seven months oil
the current year, already shown to be S352,-
226, 500, there will remain the sum of S225,
l66, ,999, to be provided by negotiations under
the act of last session; aud under some Ike
act must be provided in like manner. If the
continuance of the war shall make it nee essary
the sum of S544,9 5i8 % estimated as like.
ly to be required from loans for the fiscal yeai
1865"
To facilitate these loans he relies very
much on the establishment of National Bank
ing Associations, under the law already passed
by which associations, by transferring thei
capital to the government, are allowed TO lssu
notes based on the faith of the government t
the amount transferred. BY this means h
SUI poses that uniform currency will be estao