Delaware State journal and statesman., 1866-03-13
LETTER TO THE SECRETARY or THE rREA
suRY, FROM HENRY CLEws, ESQ,
nANEER, NEW YORK
No 20 Wall Srprrr


Hon. HueH McCuLLocu, Secretary of the
Treasury:
Dedr SIR
| take the liberty of suggesting
the following principles of financial policy
for your consideration. At the present time
good deal OF interest necessarily attaches
to the action of the Department and Ton
gress, and this fact, trust, will excuse the
intrusion.
In my Judgment, Congress should author
izc the issue OF bonds, not having longer than
forty years to rum bearing ratq OF interest
not exceeding six per cent, both principal
and interest payable in gold.
The rate of interest on temporary loans
should he reduced TO five per cent, and to
four per cent, on the Clearing House certiii-
Gates. The new bonds should he issued as
ten iorty skies, and offered at par; the seven
thirties 10 be received in conversion at their
lace ana interest, commencing with the first
series; and, also, all certificates of indebted
ness and temporary loan certificates This
course will materially mid in extending easc
10 the money market, and will inevitably
cause the surplus capital TO flow into the ten
lory SKIES; which, together with all other
available means in the Treasury, should be
used for the purchase of the scven-thirlics
In this mode, with The aid OF the conversion
of those securities, the Department would
soon be able TO get them out of the way, an
essential step before any contraction OF the
currency will be practicable without danger
OF incurring embarrassing results. To con
tract one hundred millions of the currency
at this time would Immediately cause the
remaining three hundred millions to 20 to Il
| premium over National bank currency, there
by compelling every National bank having
circulation out TO suspend rcdeeming their
notes IN greenbacks, according TO law; the
result of which would be disastrous to the
country, and would materially cripple the
ability OF the Department TO obtain revenue
sufficient to meet its obligations.
As understand the views of the Depart.
ment, it is proposed to rely solely upon the
reYenue for what money may be required for
the coming year; consequently, all that is
necessary Is TO exchange long securities for
those which mature during the next two
years ana halt known as the floating debt,
comprising about twelve hundred millions.
The short loans of The Government being
the great obstacle to the return to u sound
monetary basis, il certainly would appear
most desirable, first of all. to remove those
distractions by the measures above indi
catedi when, the finances being in a sound
condlllon, and Important financial disiur
bances removed, the Government will have
every advantage for undertaking measure.
looking to resumption of specie payments
depreeate most earnestly the proposition
to negotiate loans abroad, more especially as
our re. lions are far from being amicablC
with the leading European powers.
During the dark days OF the rebellion,
when financial assistance was desirable from
any and every quarter, we met with NJ
friendship from foreign countries. We had
rather TO contend with their antagonism
which made our success in subduing the re
| bplliOu all tlp morp diflipult oo,1,
scarcely be otherwise than humiliating fol
us now to appeal to foreign capitalists iol
assistance, Or even to place on record by act
of Congress- a willingness to accept it. Ever
though such authority were granted, yer,
much question whether 1t could be success
f fully ayailed Of To place loan in Europe
interest and principle payable there, woulC
be foreign loan TO ou own market, ant
would not he negotiable on this side
The hVe-twenties have an easily ascer
tained market value on both sides, and tn,
ten-fory skies would soon occupy the sam,
position, much to the advantage of the hold
ers, and equally so to the permanent valut
of the securities. Cndcr such circumstances
) our Government credit generally would b,
! elevated at home and abroad Eric Rairoa,
stock, now ranging at ninety-twO would no
he higher than sixty, but for the Londoi
market cooperating with ours Forcigl
hNlktlS viii lul lukc q i've per cent, bond
{ merely because the interest is payable in
i Europe, when the same security bearing ST,
per cent can be had with the interest paya
. bic here To do so would be equivalent /,
, paying twenty per cent. for the collection o
the coupons, while it is now done at les
than one-qnarier Of that charge. cur bond
are more highly appreciated on the othe
side as the execution of orders for them /
met with competition from this side. Tha
r which is attended with opposition and dini
r. Guilty in attainment is always regarded witt
4 the greater iavOr
Our securities have been planted in Europ
by the same manipulating process through
u bankers, as they have been in this country
. Their being better compensated by large
= commissions, constitutes the incentive 10
! soliciting and executing orders ia them, il
+ preference to dealing in others current ii
their own market. BY Offering these securi
n ties through our own agents stationed ON tn
other side, the influence of the foreign house
# would cease. The practical working of
n loan negotiated abroad would he 10 reduc
q materially the price of gold, and thcreb
II benefit foreign manufacturers, causing i'm
q portatiOns largely to increase, much to on
detriment. 1t would also make less desira
3 bic the gold intcrcsl-bearing bonds, which
!, is necessary the Department should Great
an appetite for, so as to induce holders of tn
k seven-thirties to convert them and take in
J. stead the ten-lory skies. The interests c
e. the Government and country are not iniure
4 at this time by gold being above, rather TIM
below one hundred and forty 140). What til