FINANCES OF THE UNITED STATES. 



299 



eel. The Secretary made an address to the 

 people in accordance with this understanding, 

 and some 500 agents were appointed. The 

 appeal was, however, without the anticipated 

 success. The public responded but to a com- 

 paratively small extent. The Secretary continued 

 to draw upon the credit in his favor opened by 

 the banks, which thus found their means passing 

 from them, without much prospect of getting 

 them back, since the notes they had taken 

 would no longer sell at par in the open market. 

 Hence, as the 1st December approached, they 

 decided to take $50,000,000 in the 6 per cent. 20- 

 years stock at a rate equal to par for the 7 per ct. 

 This was 89.322, or in amount $44,661,231 91 

 for the fifty millions, to which was added the 

 interest from July, making $45,795,478. 



Congress was now again in session. The re- 

 port of the Secretary, that had been looked for 

 with the greatest interest, was at last made, 

 and it contained the following statement of 

 the money that had been raised since the ad- 

 journment of Congress in August: 



There were paid to creditors, or exchanged 

 for coin at par, at different dates in July 

 and August, six per cent, two-years notes, 

 to the amount of $14,019,034.66 



["here was borrowed, at par, in the same 

 months, upon sixty-days six per cent, 

 notes, the sum of 12,877,750.00 



?here was borrowed, at par, on the 19th of 

 August, upon three-years 7.30 bonds, is- 

 sued for the most part to subscribers to 

 the National Loan 50,000.000.00 



There was borrowed, on the 1st of October, 

 upon like securities 50,000,000.00 



There was borrowed, at par for seven per 

 ce: t., on the 10th of November, upon 

 twenty-years six per cent, bonds, reduced 

 to the equivalent of sevens, including in- 

 terest 45,795,478.48 



?here have been issued, and were in circula- 

 tion and on deposit with the Treasurer, 

 on the 30th of November, of United States 

 notes, payable on demand 24,550,325.00 



Making an asgregate, realized from loans in 

 various forma, of . ! $197,242,588.14 



It will be observed that in the whole of this 

 sorrowing very little was really subscribed by 

 capitalists for investment. About $38,000,000 

 of the 3-years notes only had been taken, most- 

 ly by small investors, and they were already 

 again offering them in the market to an extent 

 which reduced the price to 96 for those that 

 were endorsed, and 98 for clean notes. The 

 banks had invested the idle capital accumulated 

 in their vaults, belonging to depositors, and the 

 securities were still hanging over the market 

 in prospective competition with the future loans 

 of the Government. The department, never- 

 theless, had obtained the money. 



While thus successful in borrowing, the 

 revenues had been far less than the estimates, 

 and the expenses far greater the former, by 

 reason of the stagnation of trade, and the latter 

 in consequence of the great increase in the 

 army. The Secretary, therefore, revised his 

 estimates for the year as seen in the following 

 table: 



The Secretary advised a resort to taxation as 

 a means of raising $50,000,000 in excess of the 

 customs for the service of the year 1863, in 

 which year he estimated the expenses at $475,- 

 334,245. This result was very unsatisfactory, 

 and the public credit did not revive on the ex- 

 position, and the.year closed with the suspension 

 of the banks, amid gloomy prospects. 



On emitting the demand notes, the Secretary 

 of the Treasury addressed a circular to the 

 various Assistant Treasurers, to the following 

 effect : 



Under the acts of July 19th and August 5th last, 

 Treasury notes of the denomination of $5, $10, and 

 $20, have been, and will continue to be issued, redeem- 

 able in coin on demand at the offices of the Assistant 

 Treasurer at Boston, New York, Philadelphia, St. 

 Louis, and at the Depository of Cincinnati. These 

 notes are intended to furnish a current medium of pay- 

 ment, exchange, and remittance, being at all times con- 

 vertible into coin at the option of the holder, at the 

 place where made payable, and everywhere receivable 

 for public dues. They must be always equivalent to 

 gold, and often and for many purposes more convenient 

 and valuable. 



A sufficient amount of coin to redeem these notes 

 promptly on demand will be kept with the depositaries, 

 by whom they are respectively made payable. And all 

 depositors and collecting* officers will receive them, 

 enter them on their books, and pay them to public 

 creditors as money. Large amounts of the notes of 

 small denominations are rapidly being issued and dis- 

 tributed. 



General Scott issued the following order : 



OT THE AlMT, > 



WASHINGTON, &pt. 3, 1S61. f 

 The General-in-Chief is happy to announce that the 

 Treasury Department, to meet future payments to the 

 troops, is about to supply, besides coin, as heretofore, 

 Treasury notes in fives, tens, and twenties as good 

 as gold at all banks and Government offices through- 

 out the United States, and most convenient for trans- 

 mission by mail from the officers and men to their 

 families at home. Good husbands, fathers, sons, and 

 brothers, serving under the Stars and Stripes, will 

 thus soon have fhe ready and safe means of relieving 

 an immense amount of suS'ering, which could not be 

 reached with coin. In making up such packages, 

 every officer may be relied upon, no doubt, for such 

 assistance as may be needed by his men. 

 By command of Lieutenant-General SCOTT. 

 E. D. TOWXSEXD, Assistant Adjutant-General. 



Of these, the Secretary had issued about 



ESTIMATES OF REVENUE AND EXPENDITURE FOR THE YEAR 1862. 



