The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-09-01
rsuRIous RArEs on INrEREsT.

The rate Of interest actually paid on the
notes issued under this act has been the
subject Of frequent dispute, and the facts,
as given in an official form, are as follows:
@Under the act of Dec. IL, 1850 ~ Stat
utes, l2l), Treasury notes were issued, re-
deemable at the expiration OF one year
from date, bearing interest as follows: SO
200 at Q per cent, s., 900 at per cent, 81, :
500 at s per cent, $4,000 at s! per cent,
$40 900 at 81 per cent, SOS, 600 At 0 per cent,
$40 900 at 81 per cent, $4,000 at 94 per
cent, S77, 600 at 93 per cent, ,027 800 at 10
per cent, soc, 600 at lot per cent, 1928. 900
at lOI per cent, 81 1857 600 at lO3 per cent,
Il ,4S2, ZOO at II per cent. 81, $40, 600 at u
Der cent, making total OF Sl0,0l0,900
Additional offers were received, ranging
from Is to SO per cent, which were refus-
ed"
In January, 1861, the Secretary, in or.
der to relieve the Treasury from its en-
barrassment, was forced to ask Congress
for authority to obtain o loan without re-
striction as to the price OF the bonds.
This money was needed, not to meet loans
falling due, or to pay the expenses oil war,
but was asked for in times OF profound
peace, 10 meet the current expenses OF the
Government. Never before, since the
year 1850, when small sum was borrowed
10 pay salaries, etc, under the new Gov.
eminent, had loan been asked TO meet
ordinary expenditures. SO low had the
credit OF the Government fallen at that
time that Secretary Dix suggested to Con-
eress, as financial resource, that the sew
eral States be asked, as security for the
payment Of any money the Government
might find it necessary 10 borrow, to pledge
the deposits received by them from the
Government under the act for the distribu.
ton Of the surplus revenues in 1885, the
Secretary believing that loan contracted
on such basis OF security, superadding
to the plighted faith OF the United States
that OF the individual States, could hardly
fall to be acceptable to capitalists.
A bill was introduced February 2, 1851,
authorizing loan Of 81, 900, 900, to bear
interest not less than ten or more than
twenty years. The bill became q Law Feb
ruary s. 1851, after earnest debates, in
which, however, no opposition was mani
tested 10 the bill al. whole, but simply to
details, both parties agreeing that loan
WAS ABSOLUTELY utCtorhiys oVhuo W sAS
amount Of SIS, Al, 900 were sold under the
authority, of this act at an aggregate dis.
count of g ,0l9, 776. 10, or an average rate
OF $50 03 per 500. Secretary Cobb, in his
report above referred TO, says:
hThe estimated balance that Will be IN
the Treasury on June 80, 1881, Is only So
$50, 1876 81, and leaves no margin for addi-
tional appropriations. II, therefore, the
appropriations should exceed the estt-
mates. or Congress should determine to
provide within this period for the pay.
ment Of any portion Of the public debt 1t
will become necessary to make provision
ior such contingencies. The idea OF in.
creasing the public debt TO meet the ordi.
nary expense Of the Government should
not be entertained for moment. II addi-
tional demands are created upon the
Treasury by the legislation OF the present
Congress, provision must be made to meet
them by such increase Of tariff duties as
may be required for that purpose"