The New York herald., 1864-12-07


appropFa'iors called for to meet the public wants ooa.
gress aw which need only 6e alluded to
It had become mauass, while much the largest por.
tion Of the amount required be provided by loans IN
some form. resort must be had TO wider and moro
stringent taxation In order preserve the credit OF the
government Accordingly the act OF July 1851. called
ne enai Revenue av, was passed, providing for
levy OF duties various domestic manu actures. upon
trades and occupa ions, and also providing system Of
stamp income and other duties. This important mea-
sare, u was hoped would connection with the duties
on imports ana the derived from Other sources,
furnish such proportion OF the would
place the national credit upon . stable foundation,
through the evidence thus afforded OF readiness 70
Impose present reasonable share OF public bur-
dens, leaving TO the future than In Justice 10
ought TO bear IT these hopes were not realizsds
tho disappointment perhaps mputabe tn
great degree TO the fact that the system adopted
one to which the people had not been
accustomed; that the machinery was complicated, the
officers Who inexperienced, and that suf
ncien, allowance made for the important element
OF time, which alone Give to any such system tho
requisite efficiency. With like view to increase the
revenue and sustain industry under the bur-
imposed by the Internal Revenue law Congress, BY
act approved July a. 1861 largely increased the du-
ties on imports. ses
was justly believed these measures could hardly
fail TO inspire confidence the ability and purpose OF tho
nation TO u its obligations In the present and the
future. The necessities OF the Treasury however,
immediate To raise money large amounts by taxa
ton, and even by loans requires moro time than can
always be Afforded with the neld and great
naves anoat. The demands or war imperative, aud
tho slow process Of financial negotiations
meet demand thus urgent
Congress- by OF February Is and July IS, 1852,
saw ht to authorize the emission Of Unised States
notes TO the Notwithstanding sixty mmliens Of
Treasury notes previously authorised, which were
20 be redeemed and cancelled-of three hum
dred millions f dollars as substitute for CON- dsclar-
ing them legal tender for all debts public private
and clothing them with al! the requisite: o. currency.
into bonds Of the United States paying Interest at SIX
per centum semi annually in coin, 10 secure which NE
revenue from customs also payable " coin, WAS SOL
ncaiiy pledged Tho same act Of February Is, 1894.
authorized tho Of bonds to tho amount OF Ave hum
dred millions, subsequently 70 ve hundred ana
eleven millions redcenable alter nve years and payable
10 twenty years from data .s gser
Notwithstanding tne ample provision supposed 70 %
made by Congress tho expenditures or the 0soa
ending the 3oth OF june 1885, the report Of bs Sse
deficiency for the current year Of s27o Si7 90.
while the estimated amounts Or expenditures over
cepts from ordinary for the succeeding was
so22 1856 So To provide for tho aggregate Of these
amounts, Congress- BY an act approved March s. 1867
Of 5000 eco 900 fiscal year BY the
section OF the the Secretary was authorised
s p: ;as
ing six per couum psr aDnu, payable lawful money,
which notes. payable q periods expressed oo .hsr f.ce
might be made legal tender at their sace value BY ths
third section $3.50 900 Of United States sosss, o.
like character with thoss previously issued under me
provisions Of former acts, were aAssorised a. oan q
j. viii BE- seen that BY me ssvsss Of Congress
referred TO- goveTnmsnt paper ~ substitute for coin
under the respective designations Of United States nese
and Treasury notes might be issued - the amount q
$3.50 900 000 vizUuitef Suites Treasury notes, NOS
bearing ntevsst, the amount oe elbv o00 but Of
which $50 600 600 TO be held IN reserve Tor the
soon possible thus whsss Intended
for circulation but $500 ooo ooO and $500 q
ana believed would not remain IN cifculason they
could be made egal tender only for their face value with
n the preceding Of The several acts passed
BY Congress Yth view 10 provide the large means
Guiding the fiscal year OF 1884, 90 reference mas bssa
made 70 the several auxiliary measures designed 10 NEST
diminishing she rsquirsd ana other
purpose than mere temporary resource or such zoe
Of Indebtedness payable yeaF lsss date with
six per interest aud authorizing tho
than thirty days be repaid days notice.
OF somewhat similar character. from iss necessarily
limited amount % the fractional currspcy authorized By
the fourth section Of the act or March 5. 1888.
THg DIFFICULTY or MAFING coRRrtr nsrnATH
The object OF the Secretry IN calling attention to these
Congress connection OF the Inmates
Of hts predecessor. is 10 show
Ftra-Tbe utter mpossbiIity, in tmes like the Pre-
sent, Of ascetanng With degree Of certainty, pros
pect,ve demands the treasury Estimates the
most Iioer scale be. thev have found
adequate. Hence large deaceuces occasion By
IN unexpected inc ease OF mitary force the nrst
consequent upon military operations conducted upon q
gigantic scale even the could be maintained
in a sound and Natural conditI on. eoW
Secondiy-Ihe difficulty Of fxpg upon any policy
subject TO the contingencies OF the hour II Is the
secreiarys judgment. not only dihcut but impossible
to apply liked rules a condition a affairs constantly
changing or to meet contingencies, which human wis.
dom foresee, by steady application Of laws.
especially in government and with people where
public opinion is the controlling element and that opn.
ion is not der the decoa OF those who may happen
administer public affairs.
MONEY.
Accordingly 1t has been that tho attempts con.
duct financial operations on go impense upon .
specie basis proved impiaccabc. Resort some
other Species OF currency Of natona character became
unayodabie ns was unanswerabys demonstrated by my
predecessor, in his or December 1862 Fraught
With dnger as goyeInment paper has almost Invariably
proved there Was Under The circumstances no ether
resource course The danger increases with enlarged
demsnds upon the Treasury growing out Of Increased az
taxation ou articles Of cnsump,ion the withdrawal Of
labor from productive parsuus. accompanied BY az
gravated demand Tor products and material Incident to
state of The problem 20 be solved is how miti-
gate the evi " IL canuot be fully avoided II loans
be negotiated st reasonabls rates. aud tho Treasry
thus be kept ia condition 10 meet current demands
1t is not difficult 70 restrain the circulation OF
mcnt paper within sne'Iimhs. Buttnis, not always cor
tain 10 time ot pencethosgh, villa abundant resources
1t always snoud be-is often found mp ssbie when
upon large and long connued has created dis
trust. Hence " has followed that, under tho acts
red bjpds have assumed various forms TO suit
what was supposed TO be TIE choice o. lenders.
sFEcE pAss Sor tosr tIGHr
Our notes have shown similar diversity OF character
While as been found impossible TO avoid the necessity
N usIDg them extent which could not but agra.
vate the troubles incident 10 the necessities OF our
condition, yet though forced to resort 70 tho
Issue OF paper for the time, the idea OF specie
basis was not lost sight OF, as the payment
OF interest long loans 10 coin amply secured.
Aud thugb In several OF the authorizing the issue Of
ong period, paymeut OF the principal matu.
rity in CON- specifically provided the omission, 10
believed. accidental As there could have beon
Intention distinction between tho difYercnt
eIasee OF securities ia tais regard respect uly
commended remoye all doubt upon this point oy pro-
per legislation Although the wisdom OF thus securing
the ptyineat ~ interest bpds ~ been aues
ioncd srd tho pledge of the receipts rom csstoms bs
collected tor that purpose. terhaps facilitated
the operations of thnse disposed enhance The Of
god FOR speculative purposes, The Secretary Va u tho
opinion that tnesc measures we're not only vie oui ns