The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-04-12
The Loan Bill.

From The World.
The new Loan bill, which has passed both
Houses, and only awaits the Presidents sigma
ture to become law, is of so much interest that
we reproduce it with a prominence due to its
Importance
An act to amend an act entitled an act to provide
ways and means 10 support The government APP
proved March g. 1865
Be 1t enacted Dy the Senate and House of Repre-
sentatives the United States of America, IN Con-
q assembled, That the act emitted an act pro-
vice ways and means to support the Government,
approved March 3, 1865, shall be extended and con.
strued authorize the Secretary the Treasury at
his discretion, to receive any treasury notes other
Obligations issued under any acc OF Congress,
whether bearing interest or not, IN exchange tor
any DESCRIPTION of bonds authorized by the act to
which TINS IS an amendment, and also 10 dispose of
any description of bonds authorized by sand act,
either in the United States elsewhere, to such an
amount, such manner and at such rates as she
may think adv saUle, for lawful money OF the United
States for any treasury notes, certificates OF in
deDJedness, or certificates OF DEPOSIT, or other
pre,entatIves of value which have been or may be
issued under any act OF Congress, the proceeds
thereof to be used only for retiring treasury notes,
or other obligations issued under any act OF Con-
gress. But nothing herein contained shall be con-
strued 10 authorize increase of the public Oebt;
provided that of the United states notes not more
than ten millions OF dollars may be retired and can
celled within six monthsstrom the passage of TINS
act and thereafter not ore than four mi lions of
dollars in any one month And provided, further,
that the act TO which TIM Is an amendment shall
continue in force in all its provisions, except as
modified by this act.
q, IL
Secretary of the Treasury snail repOr to Congress
at the commencement or the next session the
under this act and of whom, and on what terms,
and also the amount and character OF Indebtedness
retired under this act and the act to whcn this is
amendment with a detailed statement OF the
pense OF making such loans and exchange.
The bill gives the Secretary much less power
than he persistenCly asked for, and less than
he ought to have. There are two things of
the first consequence for which efficient pro-
vision ought to be made, viz, such reduction
OF the currency will restore specie pay
ments, and preparation to meet the en-
gagements of the Government maturing in
1867 and 1868. The bill which has passed
contributes little to either. 1t restranS
the Secretary IRON Withdrawing more than
ten millions OF greenbacks within the
first six months after its passage, or
after. The six months extend to about the
middle OF October and the two ensuing
months will overlap the next meeting OF Con-
gress. The currency, then' which (1ncluding
the national bank notes) consists OF about
seven hundred and fifty millions (twice or
thrice what it was before the war; can be re-
duced not quite eighteen millions OF dollars up
to the time of Mr.. MCCuloch's next annual
report. The Secretary will doubtless use all
| the little power given him; but the currency,
during the eight months, Will be reduced less
| than two and alhalf per cent. Curtailment,
| though lmperceptibly slow, is OF course, better
than further expansion; but business man buy
| ing or manufacturing goods to sell six months
| ahead, always calculates on much larger
margin OF profit than two per cent, and so
| slow u contraction will do little to render
| people cautious Congress seems blind TO the
| fact that the country has other things to do
| than the purchase and sale, or manuac-
ture and sale, of consumable commodities.
| There are thousands of enterprises in the
| character OF permanent Investments, whose
| returns must come in future wears. The open
| ing of new mines, the building OF new ma
! chinery, the erection of new houses, the con-
struction OF new railroads, are kinds OF business
| which differ from current mercantile transac-
| tlons, in that the money invested now will bring
| its returns several years hence. If the currency
were restored TO the specie basis, the house or
the railroad built now would cost about the
same as those built five years hence, and there
would be no great risk in the undertaking. But
il men build now what can be built thirty per
cent. cheaper in 1869, they would do better to
keep their money and apply it to some other
use. The restraint put on the Secretary /;
| purely in the interest of the trading and specu
lating classes, who alone are benefited by con
tinuing the imitation.
Next year the seven-thirties begin to fall due
and before the close of the year following, they
Will all have matured. OF these, there are nine
hundred and fifty millions; but although Secre
tary McCulloch ieels a wise solicltude at the
appalling amount, Congress is stupidity careless
or, what is worse, in league with the vast specu
lating interests who are laying their plans tt
make several millions out OF the coming embar
rassment of the Government