456 



FINANCES OF THE UNITED STATES. 



amounts could be prepared by the engravers. 

 The current expenses were one million two hun- 

 dred and fifty thousand dollars per day, partly 

 met by the receipts on deposit; but there were 

 also large arrearages, amounting to $50,000,000 

 and more, due to creditors, who were pressing 

 for pay. These persons had constituted a class 

 of urgent borrowers in the market, and as capi- 

 talists hesitated to lend freely on simply ap- 

 proved claims, the public creditors were com- 

 pelled to submit to heavy loss to realize money. 

 To relieve these classes, Congress, at the re- 

 quest of the Secretary, passed March 1st the 

 following law : 



An Act to authorize certificates of indebtedness to the 



public creditors. 



Be it enacted, &c., That the Secretary of the Treas- 

 ury be and he is hereby authorized to cause to be is- 

 sued to any further creditor who may be desirous to 

 receive the same, upon requisition of the head of the 

 proper department, in satisfaction of audited and set- 

 tled demands against the United States, certificates 

 for the whole amount due, or parts thereof, not less 

 than one thousand dollars, signed by the Treasurer of 

 the United States, and countersigned as may be di- 

 rected by the Secretary of the Treasury, which cer- 

 tificates shall be payable in one year from date, or 

 earlier, at the option of the Government, and shall 

 bear interest at the rate of six per centum. 



This important measure gave the Secretary 

 unlimited authority to borrow on twelve 

 months. This is the first instance where the 

 Secretary of the Treasury was allowed to use the 

 credit of the Government without limit. It 

 operated in fact, as far as the certificates were 

 accepted by the creditors, as an extension of 

 twelve months on the floating debt of the Gov- 

 ernment, and bridged over the period required 

 for the negotiation of the 6 per cent, bonds au- 

 thorized by the act. Any creditor of the Gov- 

 ernment, whose claim had been approved, 

 could now at once obtain a 6 per cent, interest- 

 bearing obligation of the Government, which 

 he could sell or use as first-class collateral for 

 loans. 



The following rules and regulations were is- 

 sued by the Secretary of the Treasury : 



Congress having authorized the issue of certificates 

 of indebtedness by the Secretary of the Treasury, in 

 payment of audited and settled "demands against the 

 Government, as well as in payment of checks, drafts 

 drawn by disbursing officers upon amounts placed to 

 their credit with the Treasurer of the United States, 

 in favor of creditors who have furnished supplies, &c., 

 and who are willing to receive such certificates in sat- 

 isfaction of their demands, the following regulations 

 are presented, and will be strictly observed in the exe- 

 cution of the act : 



The certificates of indebtedness will be payable to 

 the claimant or creditor of the Government, or his or- 

 der, and in the denominations of $1,000 and $5,000. 

 Certificates of the larger denominations will be issued 

 in all cases where the nature of the claim will admit 

 of it. A book will be opened by the Treasurer of the 

 United States, in which shall be kept a record of each 

 certificate issued under authority of the act; the name 

 of the person to whom issued ; the date, number, and 

 amount thereof; on what account; if on Treasury 

 warrant, the number thereof, and if on draft or check 

 of a disbursing officer, the name of the officer by 

 whom drawn, the date and amount of such check or 

 draft, &c. 



The certificates shall be signed by the Treasurer, 

 and countersigned by the Register of the Treasury, 

 who shall also keep a complete record of said certifi- 

 cates, as required of the Treasurer. If issued upon a 

 warrant, they will bear even date therewith ; or if to a 

 disbursing officer, then with the date of the presenta- 

 tion of his deed or draft on the Treasurer of the Unit- 

 ed States. 



When the Secretary of War or Navy may desire to 

 leave a credit on the books of the Treasury in favor of 

 a disbursing officer of his Department, he will draw 

 his requisition on the Secretary of the Treasury in the 

 usual form for the amount desired to be placed to the 

 credit of such disbursing officer, and specify the ap- 

 propriation properly chargeable. 



Upon such requisition being received at the Treas- 

 ury Department, a warrant wfll issue to the Treasurer, 

 and he will accordingly place the amounts to the credit 

 of the disbursing officers named, who will then be au- 

 thorized to draw checks or drafts thereon, to the amount 

 of such requisition, in favor of such creditors entitled 

 to payment by him as may desire to receive such cer- 

 tificates in satisfaction of their respective demands. 



The checks or drafts of disbursing officers will be in 

 the following form : 



$ 1862. 



The Treasurer of the United States will pay to 

 or order, on certificates of indebtedness 



dollars, being amount due for 



-, as will appear 



by bill and receipt therefor, in my possession, and 

 which will be rendered as a voucher in my accounts 

 for the quarter of this year. 



To F. E. SPINNER, Treasurer of the United States. 



As the certificates of indebtedness are only to be is- 

 sued in payment of creditors, and for amounts liqui- 

 dated and actually due them, the disbursing officer, 

 before drawing his check or draft on the Treasurer, 

 will take the same voucher from the creditor, and will, 

 in all respects, be subject to the same responsibilities 

 as if making payment in coin or United States notes. 



The requisition in favor of the officer will be charged 

 on the books of the accounting officer as other requisi- 

 tions, and vouchers will go into the general accounts 

 of the disbursing officer, and be settled with his other 

 accounts. 



The issue of these certificates gave great re- 

 lief by causing capital to circulate more freely, 

 and the department was less dependent on the 

 money received from deposits to meet cur- 

 rent expenses, as those deposits were made in 

 demand notes, which were receivable for du- 

 ties, and which it was important to get up as 

 Boon as possible, in order that the Govern- 

 ment might be in receipt of gold through the 

 custom house, and thus be enabled to pay the 

 interest on the Government stock without pur- 

 chasing gold. The department therefore or- 

 dered as follows : 



OFFICE OF THE ASSISTANT TREASURER or THE ) 

 UNITED STATES, NEW YOBK, March 14, 1862. j 



Under instructions from the Secretary of the Treas- 

 ury, I hereby give notice that all certificates bearing 

 five (5) per cent, interest, hereafter issued for deposits 

 of United States notes, will be payable in whatever 

 notes may have been jnade a legal tender by act of 

 Congress, and may be", at the time when repayment 

 shall be called for, paid out usually to public creditors. 

 JOHN J. CISCO, Assistant Treasurer U. S. 



The effect of the notice was to check the 

 temporary deposit of demand notes for 5 per 

 cent certificates. 



It was now apparent that although the law 

 of Feb. 25th had intended to make the first is- 

 sue of $60,000,000 a legal tender, like the new 



