The Portland daily press., 1864-12-17

luctance. Nor does he believe that patriotic
peopIe. struggling for national existence and
poaessed of ample means, would compel him
10 adoot measure SO iraught with injurious
consequences, as an Issue OF paper money Pc
yond The limit SO pres cribed. The question
however, would be one for the people to de-
eide.
They have pronounced for continuance OF
the war, untiiits great objects shau have been
accomplished, in unmistakable terms. 1t Is for
them further to determine whether the neces-
sary means shall be furnished by way of loans
ana the circulation be restrained within safe
limits; or whether they will prefer to endorse
the evils of exorbitant prices, with loss OF
credit In the present and debt OF heeuless
magnitude entailed upon the future. Their
financial officer can only submit TO their de-
cision, and act as the necessities oil the occa-
sion may demand. Bat Inc secretary conn-
IDENTIFY believes thai aagng lrom pSss - ,;t,Io
and recent demonstrations, there can Dc llttle
question what the public voice will be upon a
question so vital ..aeg
IL is the province of Congress to indicate
and determine upon the terms which may be
offered to those who are invited to invest
their means in Government securities; and it
would seem both wise and prudent to make
those terms sufficiently liberal. Iii our public
debt must necessarily be large, and require
lOuk COuIbOO JOdhs lOl NO uludLlOus lib WlO6
diffusion is most desirable. Such advantage
should be offered as will induce all who have
anything to spare beyond the amount reqUir-
ed for their own support or use, to invest lne
surplus, or portion of it in the national Sc,
curlties. These advantages can only DO lounu
In an increased rate of interest, an exemption
from public burdens, and security OF posses
sion. What limit should be fzeo ~ eltner OF
these particulars it is for the Pracelcal eApert
ence and wisdom OF Congress 70 ascertain
and determine. aafa
Toe exuarienee OF the past few month can
not have faiIed to convince the most careless
observer that whatever may be the effect of
redundant circulation upon the price OF coin,
other causes have exercised gre 4ter and
more deIeterious influence. In the course OF
a few DAYS the price of this article rose from
about 81 so to 81 IS in paper for one dollar in
specie, and subsequently fell in as short pc
Rod to 81 81, and then again rose as rapidly to
80 so, and all without any assignable cause
traceabe to an increase or decrease in the cir
culation of paper money, or an expansion or
contraction of credit or other similar infiu-
eRce on the market tending to occasion fuc-
tuation so violent. 1t is quite apparent that
the solution Of the problem may be found in
the unpatriotic and criminal efforts of specu-
lators, and probably of secret enemies, TO
raise the price of coin, regardless of the iDju-
~ inflicted upon the country, or desirable to
infllct upon it. All such attempts should be
indignantly frowned upon by patriotic COM
zmnnity, aud the efforts Of all good Gill
ems Invoked to c)unteract such nefarious
schemes. A law providing for the exemplary
punishment of combinations for such q pur-
pose might tend to yindicate, if it could net
protect, the public rights in this regard, and
should be, so tar as possible, rigidly enforced
But whatever success might attend any eff
fort to check speculation in coin, or to count
eract its injurious effect, it is still obvious that
so long as there remains large and increas-
ing necessity for lis use, and limited supply,
It will command price commensurate with
the necessity and the difficulty of obtaining
It. This necessity arises from the demand Tor
foreign exchange, the custom duties and to
pay the interest on the public debt. The mat
ter of foreign exchange / do not not propose
to discuss. The demand for duties on i'm
ports and that to pay the interest on large
portion of the public debt are so far identical
that one Is dependant upon the other. The
laws authorizing the issue of bonds bear
ing interest in coin specifically pledged the
revenue from customs to the payment of
that interest and provided for the collection of
those duties In the same currency. In the
opinion of the Secretary that pledge should
not be violated. A departure from it could
only be vindicated by oae OF those stale ne
cessities which justify nation in temporari-
ly postponing its obligations in order to pre-
serve the power to discharge them at future
day. When the pledge was given no one an
ticipated possible continuance of the war
for such length of time as would involve the
increase OF the public debt to the point it has
already attained, or the possible payment of
interest in coin to an amount beyond the abil-
ity of of duties or imports to supply.
1t will be noticed, however. that our annu-
al coin interest now exceeds $56.000,000
Should the additional amount required for the
expenditures of the present fiscal year be
raised upon bonds bearing interest in coin,
and the revenue from customs not exceed the
estlmate predicated upon the receipts of thu
first quarter, it is q1ite manifest that resort
must soon be had to some other source of sup
ply, or course must be had to the emission
OF securities OF a different character Itcouid
not be expected that such securities would
stand on level with those, the interest upon
which Is payable In coin, unless an increased
value should be given them by higher rate
OF interest, or their payment should be secur-
ed by specific len upon revenue.
In view OF the serious consideration pre-
sented by this question, whether as affecting
the market value of coin or the ability of
government to meet its specific interest, should
the war continue, from the revenue now spe-
cifcally appropriated to that purpose, the
Secretary is forced to the conclusion that we
should In the future rely for the most part
upon securities bearing interest in currency
convertible into bonds, the interest of which
Is payable In coin. Notes bearing an increas-
ed rate of interest, payable in currency, re-
deemable In three or Ave wears, and convert
BILE at maturity into $40 bonds, would be
preferable, ia the judgment of the Secretary,
to any other form of security. Bonds at long
dates, the interest of which is payable ia eur
rency at the usual rate, would be less attract
I've, and in the end involve a much greater
sacrifice rs3B sos ee7ts si.
The 80 notes authorized by the act Of
June 3d. 1864, and now offered to the public,
present as many advantages as any form OF
currency security, uniting high rate of 10
terest with convertibility. At the period OF
their maturity 1t NAV be confidently believed
that the country will have been restored to a
state OF securlty and peace, with all disturbing
elements quieted, and resources increased
and increasingits strength confirmed, and
With ample abilities to meet all its .cbiiga-
lions from its ordinary resources.
In the report of the Comptroller Of the Cur
rency will be found statements of the number
Of national banks organized since his last an
nu1l report, the States and Territ cries where
In organized, the amount ofcapital paid in, cir
cuation, and bonds deposited. The statement
exhibits large and rapid increase, and dem
onstrates the popularity of the system. The
rapid and extensive conversion OF stare insti-
tutions OF established character, conducted
through long series of years by men OF rec