The Portland daily press., 1864-12-17

portionately in the same direction. RellsvIps
however, that with the large addition mada ~
the volume of currency by SIata bsnks
through their various forms OF credit m
whole amount far exceeded the limit Of peees.
Sity, IL was with extreme reluctance that the
Secretary felt himself compelled 10 replace
tne per cent. coupon notes, which had been
wltnorawn, by an issue OF six per cent com
pound interest notes under the act oil June
81 1884, and even to exceed that amonnf to a
Sa.. slnai extent. But the necessity OF the hour
=. .ei. nim no choice, and he will now proceed
~ SsaIe the condition Of financial sifAiIs which
H. s Judgment, rendered such &C zion impera-
'InS, ~, On assuming Office on the 5lh day Of
necn,ias, tne secretary found bis condition
he h,.ssly ,reay embarrassing The cash balance In
stoted sioy was, on the 1st of July, as before
,,.ns a. w, ~, , o4z, oO6 ~, The unpaid Tequisi-
IonS w on .i1 ,ne 9th were $7i $4,000 the amount
OF cerilncates OF Indebtedness ontstaI. dinc
Sl6l l,I9O,OOO. The daily exnendiinra could
not be calculated at less than Two ana onsr-
ter millions. The larger por,ion of n,Harsid
acquisitions was for pay TO the army and 'ba
secretary was obliged to look forward 10 an
Increase from the same quarter OF over f,lrv
millions on the 1st OF September. Thus sltu-
ated he could not avoid scrutinzing with
some anxiety bis probable means Of meeting
tnese most pressing claims upon the treasury.
and also providing for the additional daily ex.
Pendltures. he could look nowhere but TO
tne receipts from ordinary sources, and TO
,i 1ne power 10 borrow money under existing
laws. From customs be could expect no sub
stantlai aid, and the returns for the first quar-
Ter OF the current year will show that, bel ond
the revenue pledged TO pay the interest upon
ponds Issued, and to be Issued during The
year, comparatively little assistance could be
derived from this source. 'II
With rauard tr, iptar,. al ,-o..a.....
tary felt more encouraged. CONGRESS had
wisely provided for large increase OF inter-
nal duties by a law which went into operation
ON the first day Of July. Under former laws
the amount received had been steadily increas-
ing during the three preceding months, and in
the month Of June had reached very nearly
fifteen millions OF dollars. The Secretary con-
hdently hoped that for July and the succeed
ing months il would reach, hit did not exceed,
Lne daily average oithree-q quarters Of million;
out THIS hope II realized, would still leave him
with very large deficiency 10 meet which, In
part, he might issue certificates of indebted
ness to public creditors.
Ii was desirable, however, to avoid, could
other means be found, increasing the amount
ofthese securities. He might have recourse 10
the power conferred by the act OF June 3O
1854, to put an additional two hundred mil
lions of legal tender notes upon the market.
millions, in substitution for five per cents. is
sued under the act of March 8, 1868, which
had been destroyed or were ready 10 be de-
'troyed. Flushed as the money market was
With circulation sufficiently at least to meet
he necessity OF business, he was anxious, II
possible, to avoid so doubtful an expedent.
The prospect ofnegotiating loan in the or
iinary manner was by no means fattering, so
he notice for loan ofthirty-three millions
dxyor 49, A ~ ~ .t.Lt
irawn on the I'd fully, the Secretary having
easons to believe that such loan would not be
AIKEN on terms which it would be Tor the in
crest of the government to accept. Under
hese circumstances the Secretary thought It
dvisable, in order to meet growing tmeTgen-
lies, to borrow upon bonds or not, and au-
horized by the various acts referred TO, fifty
Millions of dollars Of the banks in the cities OF
New York, Philadelphia, and Boston, and met
he representatives ofa large number of these
in New York, for the purpose of
affecting that object. The result proved how
aver, that Notwithstanding professed, and, as
he Secretary was convinced, a real desire TO
lid the government, these institutions were
lot able to furnish the assistance required up
IN the terms which, under existing provisions
II law, the Secretaty felt authorized to accept.
he had no other alternative than TO issue le-
CALENDER notes to a very large amount, or
tkdlu W duNtIbloc lCI u load, anu nc 0aQ
as to what course should be adopt
ed. Accordingly, on the 25th Of July he is
sued proposals for a national loan under the
act of June 80, 1854, upon notes payable In
three years, with semi-annual interest at Z 3 10
per centum per annum In lawful money He
incurred considerable expense In advertis-
ing this loan, believing 1t should be as widely
diffused and as generally understood as posi-
tle, aud offered liberal inducements to slimu-
late the efforts OF corporations and indiSidu-
ais to dispose OF the notes. His success
though not what he hope d Tor or contemplated,
has been such as not TO diminish his conf
dence in the disposition and ability OF the pee
ple~ to relieve the wants OF their government.
A serious obstacle to greater success has'teen,
the Secretary believes, the amount of other de-
sirable national securities. pressing upon the
market, and preventing more favorable oppor-
lunities for investment Failing to raise the
means required in the ordinary mode, and
urged by the conviction that the large amount
of suspensions--swo ollen to more thsn $780,
000 O0O-should be reduced, the Secretary re-
solved TO use all the means at his command TO
pay so much at least as was due to our brave
soldiers, who were suffering from The long de-
ley in satisfying their just claims, hut still con-
tinuing to serve their country with unfinlch-
ing courage and accomplishing devotion.
To effect this object, he was compelled to re-
place the whole amount OF five per cent. notes
whicn had been cancelled, amounting in the
whole TO more than eighty n illioI Of dollars,
and even slightly to exceed that sum, More
fully to accomplish his purpose, the Secretary
resolved to avail himsel OF the wish expressed
by many officers and soldiers, through The
paymasters, TO OTTER, to such as desired 10 re-
ceive them, seVen.thiriysnotes ofsmall denom-
nations. He was gratifed to find that these
notes were readily taken in payment to
large amount our gallant soldiers In many in
stances not only receiving them with alacrity,
but expressed their satisfaction at being able
70 aid their country by lOanlng money TO the
government. The whole amount OF notes
thus disposed OF exceeded twenty millions of
dollars. and the Secretary has great satisiac-
lion in stating his belief that the disposal thus
made was not only relief TO the treasury,
but proved a benefit to the recipients, In al.
fording them safe and valuable investment
and an easy mode OF transmitting funds to
their families. To meet other pressing de-
mands the Secretary again offered to public
competition bonds issued under the &C. Of
March 8, 1858, amounting toRbout $32 0O0,
600. This offer was most favorably received,
the bids reaching nearly $70,000,000, and tho
whole amount offered being taken az a premi-
um OF four per centum and upward, the treas
ury receiving, premium Included, the um OF
$50, ,179 GA 50. -, 100000 ..
Subsequently, on the 1st of October, the
Secretary advertised for another loan OF forty
millions upon hve-twsuty bonds, Issued under
the act of June 80, 1854. At the time OF this
offer, the money market was in a ieverish con-
ditiop, arising from violent fluctuations in
gold and other causes, and serious doubts
were entertained whether acceptable Oilers
would be made. Under these circumstances,
and with the hope Of affecting favorably the
market price of certificates Of Indebtedness,
which had become somewhat depressed by the
large amount to which the issue had been
necessarily increased, the Secretary decided
to receive one-fOurth OF the subscription la
these securities. The result was that notwilh-
standing the anticipated failure OF the loan,
bids were received amounting to nearly SEQ,
100000, and the whole amount offered was
taken at rate above par, and averaging to
the government fraction less than one per
centum. These negotiations have afforded
satisfactory evidence not only of the ability OF
the people 10 furnish at short notice such
m ho IL -.