Year: 1862


the financial affairs Of our government require to
be SO systematized as to command the commence
q the country in the administration Of the business
sftAe Treasury Department


That the system pursued by the head Of the
Treasury of issuing irredeemable demand notes,
certificates of seven-thirty bonds, and
certificates of deposits for short loans, is accunu-
hting an enormous demand debt that win soon
create an uncomfortable alarm among business
men. If it does not totally destroy the national
credit


II appears, from statements made by the chief
of the Treasury, that only sixtyeight millions ot
cur public debt have been funded in twenty year
bonds since the rebellion commenced, and that
the Treasury depends upon temporary loans to
supply all the funds required for the expenses OF
The government beyond the income from revenue
and taxes.


1t ia not possible to invent Q more hazardous
plan of finance, to provide money to pay the cur
rent Indebtedness Of great country involved in
an expensive and 'protractel war. Against this
extraordinary practice your memorialists respect
fully but earnestly protest.


1t is a custom among business men as well as
governments to make short loans when money is
dear, and long loans when money is cheap. But
tAe Treasury reverses this common practice. For,
while money has been cheap beyond all precpdent
daring the last eight months, the Treasury has
made few twenty year loans, and has restricted its
borrowing to loans Of IN extremely temporary
character. The only reason We have heard assign
Cd for this plan of national tinancering is that
this war must be Of very short duration, and that
when 1t ends our twenty year bonds will bring Q
great premium. Your memorialists are not able
% Ok the time when peace will be restored to our
country; but they do say that it is matter Of
mathematical certainty that, ii peace is restored
within few years, demand for money will spring
up in all departments Of trade, manufactures
and commerce to SO great an extent that the
price of money will rule higher than at
any former period Of our commercial history;
and, when money is thus in demand, can the Trea-
suzy expect the capitalists Of our country to di-
vert their funds from these natural channels OF
business to invest in six per cent bends!


The time when the Treasury could have funded
nix per Cent bonds at par, to the extent of five
Hundred millions, has now passed away, not soon
70 return.


The paralysis Of trade, which destroyed bust
ness and the demand for money, and threw it back
upon banks and capitalists, is disappearing, and





arc gradually creating the same demand for cap-
cal that existed before the rebellion. Thus it be-
somes necessary to resort to some other means Of
obtaining money to carry on this war and meet
Che wants of the country


It should be remembered that our condition as
. people is different from any other. It is well
known fact that we have large capitalists that
can absorb any considerable amount of new secu
sities. Our capitalists have their money invested
IN bonds and mortgages, real estate. State bonds
hank, insurance and other local stocks 1t would
be extremely injurious to the interests of all
classes Of our people were these securities
and properties forced upon the market to raise
money to invest in government bonds at any
time; but especially would it be so at a time
when trade, commerce and manufactures shall,
after the peace again ask for the facilities which
can alone be obtained in an easy money market.


II is also an important fact that the greaterpor-
tion of the available capital of this country is
employed in trade and business, and is thus used
for the profit it will earn instead Of an annualSn.
terest upon revenue securities.


This condition of our country is known to us ALL
and is the practical demonstration and evidence
of the intelligence, enterprise and thrift Of our
people; and hence we esteem those evidences oil
debt most valuable that possess the most converti-
Die character while they contain the intrinsic
merit of certain value.


In consequence Of these facts and conclusions
your memoralists desire to present to you q sys-
tenn of American finance which will conform TO the
condition and genius of cur people, and which
will make the burthen Of heavy debt bear as
lightly as possible upon all interests, by adjusting
it to the shoulders Of traders, bankers and cap-
talists.


In our country money is that article which
che federal government should declare to be a
legal tender and the public will take this money
% long as trade and business may demand
Il. Trade viii employ money SO long as the use Of
Il will produce profit greater than the amount of
interest paid for its use. When we wish to float
more money than can be proftably employed in
trade we must make it bear sn3iaterest, or it will
dopreciate in current value.


IL is not the quantity of bonds bearing interest
that creates imitation or over issues, but the large
quantity OF irrcdeemable bills forced upon the
public as currency that bear no interest.


The principle We now propose to embrace in
our national finances we trust may be the one that
will preserve the credit and life of the natien and
alleviate the fears Of those who consider ma.
tional debt an unmitigated evh.


Your memorialists therefore respectfully request
you 70 authorize and direct the Treasury Depart.
ment to issue coupon bonds, having twenty years
to run. OF the denomination of twenty, ifty one
hundred five hundred, one thousand and FIVE thou.
sand dollars each, bearing an interest OF four and
one half per cent, and to make such bonds legal
tender.


Your memorialists represent that these bonds
will be taken and held by all classes Of our people,
aud especially by merchants. traders and man taac-
turers, to very large extent, and that the intro
ducton Of these bonds will induce business men 10
use mote capital and less personal credit in their
business, because surplus capital invested In these
interest paying bonds will stin be money in the
hands Of the holder.


We propose four and one-half per cent interest
because we find, by careful estimate OF current
values that four per cent would be too low, and
ave ner cent too high; and that four and one. half