The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-09
bic, IKE tho rest or these temporary obligations in

for the daily maturing debt and Also for
taxing up rom time TO time, such por-
lions OF 10 a. could be simultaneously con-
verted into bonds or paid currency, before ma
turty, for the purpose OF avoiding the necessity of
accommodating large sums of money and OF relieving
the Treasury from the danger 10 would lie exposed
10 IL a very considerable portion OF the debt were
permitted 10 mature with no other means for paving
IL than that afforded by sales Of bonds in market
too uncertain To he confoenAy relied upon In an
emergency. In addition 70 tne temporary loan
payment or winch could he demanded on so short
notice as TO make it virtually DEBT payable on de-
mand-the certificates OF indebtedness, We're ma
turing at the rate OF from $l500000u 10 $4,000 900
per month-the five per cent notes which matured
In January following, and the compound interest
notes, which were payable az various times within
period OF three years-there were Ss3oO0O,O0O OF
seyen-thirty notes which would become due as fol-
lows WIZ
August 10, 1867. 5000 100000
June 10 1868 ...................... a"o'Vooo o
july 10, 1865 s5oooU,ooo
As the option OF conversion was with the holders
or these notes, II depended upon the condtion OF
the market, whether they would be presented lor
payment In lawful money or 10 be exchanged Tor
bonds No prudent man, entrusted with the care OF
the nations interest and credit, would permit two
or three hundred millions Of debt to mature without
making provision for IT'S payment; nor would he, if
II could be avoided accumulate large sums Of money
IN the Treasury which would not be called for, II the
price OF bonds should be such az to make the con-
version OF the notes preferable TO their payment IN
iawInl money. The policy OF the Secretary was,
therefore, as he remarked in former report. deter
mined by the condition OF the Treasury and the
country and by the character OF the debt. II was
simply, first, TO put AID keep the Treasury in such
condition az not only to be prepared TO pay all claims
upon presentation, but also to be strong enough to
prevent the success OF any combinations that might
be formed to control It's management; and second,
TO take up quietly, in advance Of their maturity by
payment or conversion, such portions OF The Tempo
rary debt as would obviate the necessity OF.
accommodating large currency balances in the
from the danger OF being forced to further
issue OF legal tender notes, to sale OF bonds mt
this policy seemed also 10 be the duty OF the
Secretary have due regard TO the Interests OF the
people and to prevent a. far as possible he work OF
funding from disturbing legitimate business. AS
financial trouble has almost invariably followed
closely upon the termination or protractcd wars, 1t
was generally feared, as mas been already remarked,
that such trouble would be unavoidable at the close
or the great and expensive war in which the United
States mad been Tor lour years engaged. THIS OF
course II was Important 80 avoid, "a las occurrence
might not only render funding dlfilcuit, but might
PROSTATE those great interests upon which the gov
stanty has bee6 therefore, the aim OF the Secretary
80 TO administer the treasury, while borrowing
money and funding the temporary Obligations, as to
prevent commercial Crisis, and TO keep the bust
ness OF the country as steady as was possible on the
basis OF an irredcemab.e and constantly llucrating
currency. Whether his efforts have contributed
this end not he does not undertake to say, but the
fact is unqucstoned that great war has been closed
large loans have been effected, heavy revenues nave
been collected and some thirteen hundred millions
OF dollars OF temporary obligations have been paid
or funded, ana great debt brought INTO manage
able shape, not only without financial crisis, but
without any disturbance To the ordinary business OF
the country. 10 accomplish these things success.
fully, the Secretary deemed II necessary as has been
before stated that tae Treasury should be Kept con-
stantly IN strong condition, with power TO prevent
the credit OF the government aud the great interests
OF the people from beng placed ut the mercy OF adj
verse Influences. Notwithstanding the magnitude
aud character OF the debt, this power the Treasury
has for the last three years possessed ana 1t has
been the Wen known existence, rather than the ex-
erclse OF IL, winch has in repeated Instances saved
the country from panic and disaster. The gold re-
serve, the maintenance OF which mas subjected the
secretary constant and bitter criticism, has given
confidence to the holders OF our securities, at nome
hbited OF the ability OF the government, without de-
pending upon purchases In the market, TO pay the
Interest upon the public debt, and steadlness to
trade, by preventing violent fluctuations in the con-
vertble value OF the currency which have been II
more than ample compensation to the country FOR
any loss OF interest that may nave been sustained
thereby IL the gold In the treasury had been sold
down to what was absolutely needed Tor the pay
ment OF the interest on the public debt, not only
would the public credit have been endangered. but
the currency; and, consequently, the entire business
OF the country would have been constantly subject
to the dangerous power Of speculative combinations.
OF the unavalling effort that was made by the Soc
rotary 10 contract the currency. with the view OF
approaching IL TO the specie standard ne orbcars to
speak. His action in respect to contraclon although
authorized, and for time sustained, was subse-
quenty disapproved las he thinks unwiseisl by Con
gress. THIS iB question: however, that can bc bet
ter determined hereafter than now.
Complaint has been made that, In the administra
ton Of the Treasury department since the war; there
has been too muca or interference with the stock
4 and money market. This complaint, when honestly
ss efsa ss Of q seno
the government. The transactions OF the Treasury
have from necessity, been connected with the stock
and money market OF New York. II tile debt after
the close Of the war had been funded debt, with
nothing to be done In relation to 1t but to pay the
on specie basis, and consequently been free from
the constant changes TO which IL has been and must
De sabec1as long az there ag y any
standard OF value-the Treasury could have been
managed with entire independence OF the
however, was not the fact. More than one-haiif
OF the national debt, according to the foregoing ex
ninits consisted OF temporary opga.os; wnlc ;,
bonds; and there was In circulation large amount
OF irredeemable promises constantly changing In
their convertible value The Secretary, therefore,
could not be Indifferent TO the condition Of the mar
ket avoid connection with It. for 1t WAS, In fact,
been happy had It been otherwise. II bonds were
to be sold TO provide the for paying the debts
that were payable In lawful money IL was "a matter
OF great importance to the Treasury thatthe price
OF bonds should not be depressed by artificial pro-
cesscs. II the seven-thrty notes were to be con-
verified into nve-twenty bonds IL was equally impor
tant that they should sustain such relation TO each
other In regard to prices that conversions would be
effected. II bonds We're at discount the notes
would be presented for payment In legal tenders,
and these could only be obtained by further issues or
the sale OF kind OF securities For three years,
therefore, the state OF the market has been mat
ter or deep solicitude 10 the Secretary II he had
been Indifferent to 1t, or failed carefully To
had hestated to exercise the power with
which Congress had clothed HIM, for successfully
funding the temporary dept by conversions or sales,
he would have been false to his trust. The task OF
converting thousand millions OF temporary 0bliga-
lions into o funded debt, on market constantly
subject TO natural and artificial fluctuations with
out depressing the prices OF bonds and without dis
turbng the business or the country, however IL may
be regarded now when the work has been accom-
plIshed, was, while 1t was being performed an ex-
ccedingy delicate one, 1t Ii but simple justice to
say, that it's successful accomplishment Is IN great
measure attributable TO the Judicous action or the
Assistant Treasurer at New York, Mr.. Van Dyck.
Similar complaint has also been made Of the man.
ner In which gold ana bonds have been disposed or
by what has been sty,ed 'secret saes; aud yet pre-
cisely the same course has been pursued In these
sales that careful and prudent men pursue who
sell on their own nccount. The sales have bcen
made when currency was needed and prices were
satisfactory. IL was not considered Vase prudent
to advise the dealers precisely when ana To what
amount sales were To be made mo sane man
but all sales OF gold have been maze IN the
open market, and OF bonds by agents the