, 1880-07-28

The Last Administration Of f1overn-
n,cnt Finances by the Democrnta-A
Series Of Disastrous I3lunderu.
IT, kt.I.. L. III

enues OF Tho Government, Ms 1t dill the III
comes of the people, and t'le Administration
which l,atl Just declared tllnt nli, altcl wide
spread financial wreck and ruin the Treasury
wonla continue to puy gold AMI silver only,
WAS forced really to tito 1lu,nflating necessity
Ut asking authority to lssun paper money.
THO Secretary Of tho Treasury Informed
Congress In hts report OF Dec. ., 1861,
that, although there was n baIalce OF
hant( Mt the close Of the tscnl yenr OF 2l7,-
7i0lH.27, yet sltch WIS tho falling-off
III the revenues from customs that It was
necessary 10 provide tho Treasury With so1n0
additional means pf meeting the demands
l'Eoi. Il, n1H sl!at Unless relief was s1ecdtly
available funds might be exhausted. liz
therefore asked authority to issue 81, 90, quo
III Treasury rs'tts. a BILL for this purpose WHY
lowed i wu, truly said tlat Tic Closing hours tn
1f the Thlrty-fe,irtll Congress Ind been cor
siined LII efforts to depleta Ill oyertlnwlng
'rrensury, while tiIe early days Of the Thirty.
All empty one. Only short time before the
Secretary hatl asked Congress to reduce tic
Aceutnulated coin OIL l,a1ld by 4 revision VI
aa pernIssy yss q ns HI s % sty s essrs s*ns u s
issue VI ,papcr money, Instead of proposing
y reduction Of expenditures atl Increase was
recommended.
Tho Secretary Of the Treasury asked in
creased expenditures to collect tho dimlnlsll-
inE revenue, while tic Secretary or War
wanted perlniss!oM to ratSe four Or i've nd.
dtttonal regiments Mt Nh additional expense of
four or ilys millions Ut dullars,- though the
whole business Of loc0Mntry was paraayZetl,
Its commerce almost destroyed. its Industrial
glasses l!sinE #, enforced llencss. with Will
ing fa!nts inplosing III yni, the privilege Of
lnb0r, mud tic Government bnnkrslpt, asking
authority to I'LL It's golfers BY the Issue ot pa-
ter money. A bill authorizing tho issus Of
9.CW Treasury notes was consequently
passed, but 4 prediction Wns mule tint this
| n,no,lnt would bo lureety Insufficient, and
TINT BY tho end Of thu year tho Treasury
would be many millions Iii debt, and TINT pre-
dict1on was soon verified.
Asking A LOAN 70 MEET ExpESsRs.
III May, 1S5s, t,e Secretary Of tho Treasury
was compelled to inform Congress OF Ills tlt9-
ienlttes, tint, owing tu, the appropriations
$1,000, O0 over tho estf,tates, and tho rev.
snns from % customs having fallen bclow the
meet the deficit should be provided. 4 bill
Vas rsportel to @ lie iioi,se May u, isss. THis
b bsps Sis scleassS sssSyis ~ s s'e seH'e s. sSa
alpl Gecalsie Il law June II. ISIS. Tho inter-
est was pot to exceed per cent, aud t4e loan
WIS inute redeenlabla Ut my .tln!e after lii.
report to Congress. dnted Dec, 2, 1859, usea
the following k.npi,age:
III thu estllMated inenns Of the Treasury
for the present and fiscal years twill be seei,
TINT ITO provision Is ,naue for tile permanent
redemption OF any portl0n uf tic So, ,050, ,00o
| Of Treasury notes. The authority for re-
issuing these rotes will expire on the 90tlI Ut
sary for Congress to extend the law for tlat
| phrEO3e another perl0H.",
Congress uppears to have differed with the
Secretary ~ to the proprlety Of rcEss,,ing the
81, 4 blll proyiling for tlIeir redemption BY
means Ut II loun VIII introduced. aild, t,,lss-
Ing both Houses alln0st without uebatc, was
Improved june = lHo. ltS.nthorfzctt u loan
OF S2l, ,00o, ,0oV with Interest at not exceeding
Per cent, retleeinuba iii not less than ten Or
mnre tl,aM twenty years,
| Thc failure to- tenlizs the whole amount
antl!sor!ze,% H.. was caused ly tlS po!,tlsal
Rebellion. Bids were Invited for $40, ,000,000
OH September ), 1kGD. and the whole amount
offered WAS speedily takel,. A commercial
bidders forfeited their deposits, and tho lou,
was withdrawn from the market. Tie
amount finally secured was only S1,022, 0o0.
As r result Of this failure authority for 2
for by Secretary Cobb, Iii Ills report Of De-
cembur 1st'Q, he says:
"ro meet tho remaining outstanding Treas-
Ssy yessiats g{sf 1e5s % af e sss Sn y aaxto H. e
lacnt Just iuadu Of. the t!llllculties Intending
tho payment M f1r tlle stock already s"!d. n
CuplEGLluA VITA t!l1 lAtt lllkt EtlpAkHlI5t9 III
tie present condition Of the Guuntry sreIn
unwilling to invest III United Stuses stock ut
par, ruilderssit almost cortnl'l TINT this re.
inainli,g Sll 0,0oo cnnnot now be negotiated
4 The condition Of the Treasury Is such that no
serious delay cah be indnlged. Authority
| Should be given. for the Issue of Treasury
9tes to az eaua' a'Gf1t to b. nsEotiatsd
tiaYnco tte public .lalnls SHOULD be ul,coll-
Ationally pledged for the ultimate ,rele'np.
| ttOn Of tho TseASury. nOtca Which 1t Might
boconlo necessary to ISSUE"
usuRIous RATES or ISTEnEsT.
The rate OF Interest actunIly, paid on the
notes Issued under tltls not l,Ns been the sub
1ect Of frequent dispute, a1sd THO" tncts, as
sSeU9 Il II .e Sst ses e tar pse H. iS s0Ts III Stat
utes, I'LL, Treasury notes were Issued. rc-
dee'habls ut tho expiration at one year from
date, bearing Interest III fuIl0ws: SO e00 at
ar nee eet se g II T ysF es'i Gill; g. 1t Is s
per cent, So, ,0o0 ut per cent, 810.O0 Mt w
per cent, Slt,ooo at on, per cent, 75,oSo It vi
nsT cent a. ~ ~ sr esmt III 1 y ~ IT
Qo0at lO9l per cent VI, ~. ;N ut II l'er ces,t,
$3.50, ,00 Mt II ptr cent, making a totnl Of
slU,Ql0.0cQ. Additional oilers were received,
Fs;iaa; Fs;|xiaf from 10 to W per een'' which were
IN jalluary. 1901. tlle Secretary, III order to
sclitva the Tfensury flUnt Its eli6ar,.ssMents,
WA forced to WI Congress fpr aitl0rity 70
price Of The bonds. Thls money was needed,
exparlsrs OF war, but WIS nskeI for lii tlmcs
ot profound pease, to meet t,,e strr,gMt ex"
slHcs tle year l1ae, whe'l Il SINAI stln was
borrowed t my Halp5lss etc., u'.isr the % lev
ordinnry expenditures. So low hui tho
creditor the lipgyern.hent fa!1cn Ct that tla.e
a financial resource, tint tils soycral Status
bs asked a. security for tils tspaylpent y,t
find It necessary to, 9oFrow, to pledge
tie deposits received by. them from tho
t;uvarninent under tho act tnr the dlstrlbu-
ton at tAo surp1us seyallues lit 1Ssl utu Sec-
ratary believing uat lou, eDntIaeted 9n
such q bHsls nf security. Auparntlllng 70 the
plfgiltetl faith Of tie Unita1 6tMtes TINT OF
tbs Individual States, could tlardly fall to 6e
acceptable IL capitalists.
| A bill was introduced Fsb. G, 1851, author.
ixlnX loan OF $a5 000 IVY, t0 bear Interest not
to exceed per cel.t, aud tu he redteAed IN
| not less tlnh ten or tAolu thAN twenty yeArs.
'Iho bill becaIau u Inv Fob. =, lsjl. nftur
| An nr,Rut sG1tNfna in qrt, ht,typpf+r III M.