The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1864-01-20

1@sH "A PA1As 4OO%, huQ WQO 60Oul0 Tofu6o TO
redeem their notes in specie, on demand, at
any time within. ten days upon or after the
time when such interest should become due.
should thereafter. when required by the
State Treasurer. by notice in writing, pay
into the State Treasury, its proportion to
the capital stock paid in each bank, their
ratable proportion of such premium for gold
or its equivalent. as should have been &C
tually paid by the State.
By the act of 30th of January, 1868, it
was provided that the State Treasurer should
exchange with the banks an amount of cur
rency sufficient to pay the interest on the
State debt falling due on the first days of
February and August, 1868, for the same
amount of coin, and should give to the banks
specie certificates of exchange, not transfer
able. pledging the faith of the State to re-
turn said coin in exchange for potes current
at the time. on or before the 6rst Monday of
March, 1864, such certificates to bear inter
est at the rate of q per cent. per annum.
Under the provisions of the act of 1862,
certain banks paId into the State Treasury
Sl40, a6S 80 as an equivalent for coin for
the payment of interest on the public debt
Under the act of 1853, specie certificates
have been given to the banks, amounting in
the whole to Sl.95S, 904 81, which, with the
accruing interest, will fall due on the first
mUuuAy OF Iharcl next.
As the provisions of this act were of
temporary character, the only acts now in
force on the subject are those of 1910 and
1862. ab We mentioned, under which it will
be the duty of the State authorities to paw
the interest on the 1st of February, 1864,
and thereafter, in coin or it's equivalent. and
look to the hanks that may be liable under
the act of 1862 for REIN bursement of the
premium paid by the Commonwealth
In the face of all difficulties this Common.
wealth, actuated by sentiment which does
its people honor, has hitherto paid its inter
est in coin or its equivalent.
Existing circumstances make it necessary
to consider now the fair extent of her Just
obligations.
The experiences of the times have COM
PEELED the Government of the United States
TO issue large amounts of Treasury notes
in circulatien, which are not redeemable in
coin. and which form the great mass of our
circulating medium.
II is our duty as q loyal State-it is our
interest State whose welfare, and even
safety, depend emphatically upon the main
tenance of the credit and the success of the
military operations of the General Govern
ment-to do nothing to impair its credit or
embarrass its measures. On the contrary.
we owe it to ourselves and to our posterity
to give an active support to its efforts to
quelch the monster rebellion which is still
raging. and thus restore peace to our dis
tracted country.
IL is our own Government, and we could
not, without great indeceney, attempt to re-
fuse its currency in payment of taxes and
other debts due TO the Commonwealth.
In 1910 the case was very different. The
difficulties then arose from the suspension
Of specie payments by our State banks, mere
local and private corporations, and the State
very properly, by the act of that year, in
tended to provide against loss to its creditors
by reason of such suspension. An exigency
like the present could not have then been
foreseen by the Legislature and it is to be
inferred, therefore, that they could not have
intended to provide for it.
We derive our system of public loans from
Europe. and the true extent of our obllga-
ton is to be ascertained by referring to the
known established practice of European
Governments prior to the dates when our
loans we're effected. | mean, of course,
such of those Governments as were held to
have maintained their national credit
1t is believed to have been the uniform
practice of such Governments to pay their
interest in paper currency. however depre-
ciated, during legalizei suspension of spe-
Gle payments. An observable instance OF
this is afforded by the course of the British
government, which. during twenty five
years, from 1897 to 1892. during which the
bank was prohibited by law from paving
out coin for any purpose, paid the interest
on its public debts in bank notes, which du-
ring a great part of that time we're at a
heavy discount, sometimes amounting to
thirty per cent OF thereabout. Their neces-
sites then wore not greater than ours are
now.
Amcng ourselves, at the present time,
Massachusetts (whose debt is believed to be
very small) pays the interest in coin. Ohio
and Indiana pay In currency. In New York
it is not known what will be done. Her Leg
islatnre, by concurrent resolution, ordered
the interest 10 be paid In coin to foreign
stockholders, in April last
At the present rate of premium on gold,
the sum necessary to pay on an amount, suf-
icient TO discharge the annual interest on
the State debt would be more than 81 .OOO,-
600, and 70 meet this, additional taxation,
to that extent would be unavoidable. The
demands on the Treasury for other necessa-
ry purposes must probably be such as to
rendsf il imprudent to throw any part OF
this expenditure on the existing surplus
To borrow money from year to year to pay
be wholly inadmissible. To leave the
act of 1862 IN force, an attempt to throw
the payment of this large premium annual
II on the banks. would be not only dagrant-
IL unjust. but quite impraeticable. rec
ommend the whole subject to the careful
consideration of the Legislature. Some leg
islation ought to be had on il before the
close Of the present month. In my opinion
the Commonwealth will have fulfilled her
obligations by providing for the payment of
her interest IN the currency OF the Govern
ment. IF the Legislature should see fit to
continue to pay it in coin, it will be their
duty to levy forthwith the Eoavy taxes me-
csssary for that purpose Imust. IN passing,
observe that the plan adopted by oDs OF the
States of paying coin to foreign, and cur
rency to domestic loan-helders, appears 20
me to be wholly unwise, and founded on 40
legitimate principle
RENEWING BANK CHARTERS.
-afo