Year: 1862

eeaboaTd the surplus ready, with


bounty, 10 all the demands OF other nations Our
stores warehouses hlled with everything re-
qurod for convenience comfort. Al army OF mere
than half million OF soldiers is in the led and pow
oriul naval force the waters provided already with
everything needfa for their comfort and defence


The question we have 10 consider is, how this armed


force which has been thus raised and provided shall be
paid for And how shall pay for what necessary to
maintain il In the future' There abundance Of
rythng requisite for the purpose. The question is,
simply how tho government best provide the means
paying those who have supplied and may continue to
supply these forces There but two ways in which


this be justly and fairly accomplished One is by
taxatcn in other words, calling every furnish
at once his just proportion Of the amount required.
The other is by loans that is by issuing obligation
Of the government TO pay at some future time with
such rate Of interest may be agreed upon thereby
allowing descendants TO share portion OF tnat
burden which is incurred much for their benefit
for oars. The Committee Of Ways and Means recommend
loans with the interest and the ordinary
expenses Of the government and the they
considered for thai purpose. The people ready
and willing and anxious 20 be taxed to extent thai
will the prompt payment Of this interest, and a
sinking fund that will provide for the payment Of the
principal in twenty thirty years BY Joint resolution
Congress has pledged Itself 10 their wishes in that
respect with great unanimty, and the tax bill, as men


TONED heretofore, now being perfected in The commit


tee and will be submitted. IL s proposed issue
$500 900 900 Of bonds payable in twenty years, with
interest semi annually at the rate Of six per cent per
annum upon which the committee confidently rely for
adequate maintain the government and carry
the until the rebellion is subdued. There would
be difficulty in reNi ing upon these bends alone If the
parties who contracted to furnish the necessary supplies


of fta
who are also 10 receive and hold the bonds
mat are to be issued. But unfortunately, these


tractors and others have incurred large debts banks
and capitalists, which they called upon TO pay,
have thus far been put greater inconvenience by
the delay Of the government in paying them. Hence
there is necessity for money; and the object OF the
authority $50 900 United States notes. not
bearing interest made legal tender is TO pay these
creditors Of the United States and enable them TO dis


charge their debts In the natural of trade these
United states notes will continue to be transferred from
one another until they into the hands OF the
banks and the capitalists, who will not allow them TO
remain long idle In their possession Money for CONNER


cal purposes can be obtained ess than five per
cent. Such portion, thereto Of the "United States
notes are needed for circulation, and cannot be
used in regular business channels in way nte


rest will be returned later to the Treasury
Department be converted bonds bearing interest
the rate Of six per cent and payable in twenty years


BY this process the exchange is completed, and these
bonds Of the government will thus be made TO furnish
the supplies required to carry the without the
intervention by the government Of bank paper


The propositions Of the Committees from Boards Of
Trade and Banks which recently visited Washington,
submitted to the Secretary Of the Treasury, and de-


cnsd by him, differed from the theory Of this bill
far to require that instead Of the issue OF the United
he Far p;,h


the amounts needed. The effect Of this would be that


the government bonds be rst disposed Of and the
money received for them paid to the contractors IN
other words, that the government ehould 60 into the
money market and negotiate their bonds, without re


strction to the rate or term, at time when the
government is discredted by the delay and the dcu


ties that have occurred in paying contractors and
Others taking the notes Of suspended banks in payment
Of these bonds, and with these bank notes thussPb
tanned, pay of the contractors The obvious effect o
such an arrangement would be to put the rens Of
national finances in the hands Of the banks leaving
them the direction Of path, with little opportunity
for the government TO exercise any influence on the
subject Exactly upon what terms the government


bonds could be negotiated now. under such circum
stances, no one cay; but last summer, when tn,
banks made their negotiation with the Secretary of the
Treasury for 500 900 o0O they at first refused to
anything because tho Secretary was restricted by
law to taking par for per cent bonds payable
in twenty years. and for $40 Treasury notes. payable
in three years. They finally decided, though with
great reuctance-innuenced by patriotic regard for
the public interest well as wisely consulting their
own-to take 500 900 900 Of the latter, though al


that time, as now, money was not worth for CONNER


cia purposes more than Ave per cent. II is now pro-
posed in this bill limit the Secretary TO par for six per
bonds the principal and interest to be payable in
specie its equivalent II is believed that there can
be nothing than these bonds, which thus
become it were standard OF value In reference "a
the currency In the of 1912 the paid
for its supplies with funds obtained from the banks in
the same proposed in the plan recently sub


mted the Secretary by those committees The bonds
Of the United States then negotiated in in


stances twenty per less than their par value
paid for In bank currency Of different degrees Of depfe


catlon according TO locality but averaging from twenty
twenty five per cent discount compared with


To render the government financially independent


il is necessary TO make the United States notes legs
tender II Is possible that they would become practica
tender like bank notes. without providing for them to be
a legal tender If this q foreign there would
be doubt Of IT, but in this present emergency when
those who openly secretly dsoya TO the govern


found everywhere TO suggest obstacles that may
embarrass the government, nothing should be omitted
j
favor of making the notes a legal tender believing the
Secretary Of the Treasury who alone has the te
issue them, can and WI use the power with his well
known discretion and that il will ass. him in his endea


vor keep the at par with coin We shs probably
be told that England in her great struggle, while specie
payments suspended, never made paper money
legal tender But in this respect her example should
us as a warning rather than guide, because


instead Of it, she did what much by suspcndpf
the laws TO enforce the payment Of debts in where
the paper money had been refused tender. varou,
objections Of heoretc have been made the
Of United states notes, as proposed by this bill The


main features may be summed up in few words II i
suid that when government the power tt
issue currency the temptation to continue issuing 1t
thcr than resort to the unpopular method Of
alton great that win not TO issue il unit
IL finds itself in a state Of utter bankruptcy. Tn,
answer to this objection is that the power Of III,
government is limited by the law in us respect ts
a. Ea ooo and ha