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T HE

MERCHANTS’ MAGAZINE
AND j

COMMERCIAL REVIEW.
J A N U A R Y ,

18 64.

P R O S P E C T S OF I R E L A N D .
T h e emigration from Ireland, increasing as it does, month after month,
has given rise to much discussion as to the future o f that portion o f the
United K ingdom . The present effect is clearly seen in the published re­
turns. Population is decreasing, while, at the same time, there is a pro­
gressive diminution in the amount and value o f Jive stock, as well as in
the amount o f land under tillage. The follow ing table shows the popu­
lation o f Ireland at various periods during the last forty years :
POPULATION OF IRELAND.

1 8 2 1 ..........
1 8 8 1 ..........

6 .8 0 1 ,8 2 7 1 1 8 4 1 ..........
7 ,7 0 7 ,4 0 1 1 1 8 5 1 ..........

8 ,1 8 5 ,1 2 4 )1 8 5 6 ..........
6 552,385 |1 8 6 1 ..........

6,000,000
5,764,543

W e thus see that since 1851 there has been a decrease in population
o f 787,842, and since 1841, a decrease o f 2,420,581. These are certainly
not very encouraging figures, and especially when taken in connection
with the greatly increased emigration o f the present year. Bear in mind,
too, that emigrants are for the most part.in the prime o f life— four-fifths
of them being under thirty years— and we see how the vital force o f Ire­
land has been drawn away.
In the five years from the end o f 1846 t*
the end o f 1851, the emigration from Ireland amounted to 1,422,000.
In the eleven succeeding years, that is, to the close o f 1862, the account
runs th u s:
EMIGRATION FROM IRELAtLD-

1852 ...................
1853 ...................
1854 ...................
1855 ...................
1 8 5 t i ...................
1857 ...................

..........
..........
..........
.........

368,966
329,937
323,429
170,807

..........

212,875

1858 ...................
1859 ...................
1860 ...................
1 8 6 1 ...................
1862 ...................

.........
.........
..........
.........
.........

68,0.93
84,599
84,600
64,300
70,100

T o ta l..........................
Previous five years...............................................................................

1,960,260
1,422,000

Total emigration from Ireland since 1846
VOL. L.---- NO. I.




1

3,382,260

s

[January,

Prospects o f Ireland.

The increase in emigration this year over past years may be more
clearly understood by the follow ing comparison for the first seven months
o f the last four years :
EMIGRATION FOR THE FIRST SEVEN MONTHS OF EACH YE A R .

1860 .......
1861 ...........

55,782 11862 . . . ....................................
45,899
45,508 11863 .......................................................
80,500

The above proportionate increase will probably be sustained
for the
year. Such, then, are the w orkings o f emigration and other natural
causes on the population o f Ireland.
If now we turn to the agricultural results o f such loss in population,
we find them just what we should naturally expect to find from the forego­
ing statements.
Thus, it will be seen in the follow ing table that the live stock has grad­
ually decreased since 1859 :
LIVE STOCK IN IRELAND.

1859
1860
1861
1862
1863

................
................
................
................
................

Horses.

Cattle.

Sheep.

Pigs.

629,075
619,811
614,232
602,894
579,179

3,815,598
3,606,374
3,471,688
3,254,890
3,138,275

3,592,804
3,542,080
3,556,050
3,456,132
3,303,931

1,265,751
1,271,072
1,102,042
1,154,324
1,064,802

So also the extent o f land under cultivation has decreased, while the
amount laid down in oifrass lias increased.
EXTENT OF

LAND

1859.
Wheat.........................acres
O a ts ....................................
Other g ra in .......................

UNDER

1S60,

EACH

C R O r.

1861.

1562.

1863.

464,175
1,982,662
207,900

468,415
401,243
85*7,816
264,766
1,966,304 1,999,160 1,974,737 1,948,986
206,600
224,500
219,600
195,000

Total cereals............... 2,654,787
Potatoes.............................. 1,200,347
Other roots.........................
403,000
Flax.....................................
186,282
Vetches, meadow & clover 1,470,000

2,639,319 2,624,903 2,552,153 2,40S,752
1,172,079 1,138,504 1,017,317 1,023,626
394,000
407,000
448,000
423,000
128,595
147,957
150,012
213,900
1,654,000 1,580,000 1,583,009 1,590,000

The flax crop shows a steady increase, but the cereals have all decreased
— the natural result o f the dimiuished population.Y et, notwithstanding the facts above stated, we believe that the gloom y
forebodings respecting Ireland, which are heard on every side, are entirely
uncalled for. True, the aggregate population is decreasing, and England
is thus losing its richest recruiting ground, yet Ireland will not eventually
lose, but gain by it, for it is over-peopled.
Few persons know, and no one who has not traveled in that couutry
can fully realize how large a portion o f the surface o f Ireland is not only
uncultivated, but unfit for cultivation— much o f it being absolutely irre­
claimable, m ore quite incapable o f repaying the cost o f reclamation.
One-third o f the measured area consists o f water, marsh, bog, or stones.
Many districts which nature never meant to be peopled at all, are made
to support a scanty population on a scanty subsistence by taking advan­




1 8 6 4 .]

Prospects o f Ireland.

1

tage o f small patches o f ground lyin g amid rocks, clearing away all re­
movable blocks o f stone, and carrying thither soil and manure painfully
scraped together. The follow ing table exhibits the facts o f the case at a
g la n ce :
P O P U L A T IO N

AND

AREA

OF

IR E L A N D .

Available
acres
per head.

Provinces.
Leinster... .
Munster . . .
Ulster.........
Connaught..

Total
acreage.

Acres available
for cultivation.

Population
in 1861.

Total acres
per head.

4,876,000
6,064,000
5,476,000
4,392,000

8,976,000
3,890,000
3,416,000
2,225,000

1,439,600
1,503,200
1,910,400
911,300

3 4
4 .0
2 .8

1 .8

3 .6

2 .4

Total. .

20,808,000

13,507,000

5,764,500

8.6

2.85

2.8
2 .6

much manufacturing industry in any part o f Ireland
— in Connaught absolutely none, in Munster next to none.
The people
subsist almost entirely on the produce o f the soil, or by the sale o f that
produce. Y et we find that the amount o f land for each person averages
only 3.6 acres, including even what is o f scarcely more value for the sup­
port o f life than the bays and creeks by which it is surrounded ; while of'
actually cultivated or cultivable land, the share o f each man is less than
acres. W ith such facts as these before us, the follow ing from a c o r ­
respondent in Ireland o f the London Tim.es, in November last, is not sur­
prising. This correspondent says :
“ I have now for the last ten years settled in the midst of an agricultural popula­
tion. I have anxiously observed the wretchedness with which I am surrounded, and
my observation of facts has forced upon me several conclusions. I see that, as a class,
the small farmers are doomed, and that nothing can save them from the effects of the
process which sweeps them away. I see that even large farmers can only succeed
by giving up all tillage, except what is absolutely necessary for their stock, and that
they are universally aware that they never again can compete with America and the
Baltic, etc., in the matter o f corn, but that they are able to compete successfully with
the world, as to butter and meat; that neither rents nor profits result from tilling,
and that both can be made and realized, as well as at any former period, by stock
and pasturage.
“ I see, as the necessary consequence, the miseries of an unemployed laboring class,
unable, after repeated trials and failures of the potato crop, to live upon the land on
which they are squatted, if they had it rent free.
*
*
’ *
*
*
*
“ The laboring people o f my neighborhood esteem themselves well off if they can
get a shilling a day, without house, meat, or drink, for three or four days of each week
for the next six months, and this is actually what the fortunate few receive, and what
the one resident proprietor who endeavors to find employment for them gives. In
the summer they borrow a little to feed them while cutting their turf, and throughout
the winter the wife, the son, or the father, takes the ass-load of turf five Irish miles t"
sell for 8d and lOd, and often 6d, which is to feed and pay for the ass and the guide,
and meet the demand of the loan fund. These people are wretchedly fed, clothed,
and housed.”

Can we wonder, after reading suck statements as these, that emigration
should increase ? And is it not evident that until the population is much
less than it now is, so that the proportion o f land to each person is great­
er than at present, emigration must continue to be of great advantage,
both to Ireland and the emigrant. It is a remedy, not a disease.




8

United Stales Banks and Paper Currency vs.

[January,

UNITED STATES BANKS AND PAPER CURRENCY vs. STATE BANKS AND
THE SUB-TREASURY.
T h e Secretary o f the Treasury has announced in his annual report that
the object o f the National Bank System is to introduce “ a permanent na­
tional currency.” This is a very grave announcement. It is no less than
reversing with a sweep o f the pen the decision o f the American people in re­
lation to paper money in general, and particularly in relation to a national
bank connected with the Government and controlled by political influences.
I f any one question can be considered as fully and clearly settled by public
opinion, after a long discussion o f fifteen years, it is most certainly the con­
demnation o f Government connection with banks.
Yet, in a moment o f
extreme distress— almost o f national dissolution— the Secretary o f the Treas­
ury seeks to reimpose a system worse than any before tried in the country.
It was first suggested as an aid to our finances, at a time when Government
stocks were slow o f sale, but is now put forth as ‘ ‘ a permanent currency ”
plan ; and in discussing this question it should be remembered, therefore,
that this bank system is not proposed as a war measure— a system neces­
sary for the support o f Government in these trying times— but as a peace
establishment, a “ permanent currency.” Any temporary war measure we
should support, if we considered it an assistance to Government in its
present efforts to raise m on ey; but when the idea is announced by the
Secretary o f the Treasury that he is about to fasten permanently upon us
the evil o f a paper currrency and Government banks, it becomes all thought­
ful men to hesitate before they give in their adhesion to any such plan.
This proposition o f the Secretary is the more wonderful when it is remem­
bered that, during the long struggle with the National Bank and paper
money interest, Mr. C hase was among the advocates o f the “ constitutional ”
specie currency and “ divorce o f bank and State.”
For a moment let us look at the past. This Government was organized
amidst the ruins of a paper money system w hich had sapped the strength
o f each o f the States and ruined the credit o f the Confederation. There
was then (in 1780,) no paper of any credit afloat, and but about$5,000,000
o f specie.*
The credit o f the Federal Government was restored by the
grant to it from the States o f the sole right to collect duties on imports ;
but it was without a currency, and the means o f internal communication
were very difficult. The fiscal affairs o f the Government required under
such circumstances, according to Mr. H a m il t o n , a national bank, which was
chartfcred, in 1791, for twenty years, and not to issue notes under $>10.
Several State banks also came into operation about the same time.
In
1811, when the charter o f the bank expired, the paper circulation, accord­
ing to G a l l a t in , was $36,000,000, with $30,000,000 o f specie in the
country. Congress then refused to recharter the United States Hank, and
.a great number o f State banks started to take its place, so that in 1814,
during the war, the paper circulation was $46,000,000 and the specie had
declined one-half.
The banks suspended and specie rose to 17 premium.
The N ew Orleans banks stopped April, 1814 ; the Philadelphia banks susoended August 30, 1 8 1 4 ; those o f Ohio and Kentucky, January 1, 1815,
and those o f Nashville, August, 1815.
Some o f the Maine banks sus­
pended, but other banks in New England sustained specie payments. The




* H amilton' s Life, page 3511, toI. 1.

1864.]

State Banks and the Sub-Treasury.

9

whole circulation was then $75,000,000,* o f every shade o f discount
from 3 to 60 per cent. In this currency the revenues o f the Government
were collected, and the banks- were the depositories o f the Government.
On the return o f peace, in order to restore the currency, the “ new ” N a­
tional Bank was chartered in 1817 for twenty years, but it was a long time
before the currency was fully at par. During the existence o f that institu­
tion State banks multiplied, failed, and despoiled and disgusted the people
in all the States. Many devices were employed to keep bankers from fail­
ing-, but without much success. Vermont and New Y ork tried safety funds,
and other States put many kinds o f limitations upon the power o f corpo­
rate banks. Boston devised the “ Suffolk system,” which operates to com ­
pel each bank in New England to be ready at all times to redeem its notes
at the financial center, and that plan is, perhaps, the only effective one.
Meantime the National Bank had grown up into a great political machine,
and, as the limit o f its charter approached, it struggled to prolong its exist­
ence by exerting its political influence. The Government removed its de­
posits from the custody o f the concern and placed them onqe more with
State banks, all o f which, with the National Bank, suspended specie pay­
ments in 1S37, with $149,000,000 circulation outstanding. The banks of
New Y ork and New England resumed specie payments May, 1838. The
United States Bank, together with a large number South aud West, were
unable to do so. Their assets were taken at inflated prices and could not
be realized in specie prices except at a total loss o f capital.
It was there­
fore impossible to resume. Nevertheless, the resumption in New York co m ­
pelled the attempt, and January, 1839, the United States Bank resumed
and staggered on until October 11, 1839, when, after a desperate attempt
to force a second failure in N ew York, it went down and was liquidated.
Two hundred million dollars o f bank capital then went out o f existence
South and W est.
The time had now com e for reform. The people were weary o f the con ­
tinual expansions, inflations, and suspensions o f the banks and o f the paper
currency with which they flooded the country and robbed the public. The
Government recognized the evil, and reformed the coinage in 1837 in such
a manner aS to tend to keep gold in the country.
It forbade the sale o f
lands for anything but specie, and projected the Independent Treasury plan
o f finance, by which all the revenues o f the Government were to be col­
lected and disbursed in specie, and an entire divorce o f Bank and State
perfected; On the 7th o f January, 1841, Congress required o f the Secre­
tary o f the Treasury, L e v i W o o d b u ev , 1st, A return o f the losses that
had been sustained by the Government by using banks as depositories, and
by its connection generally with banks; 2d, The amount the people had
lost by banks and their issues. The replies were in substance as follow s:
Losses
Losses
Losses
Losses
Losses
Losses

sustained by the Government to the year 1 8 3 7 . . . .
by bank failures sustained by the public...................
by bank suspensions and depreciation o f n o te s .. . .
by destruction o f bank notes........................................
by counterfeit notes beyond losses by coin .................
by fluctuations, revulsions, sacrifices o f property, etc.

$15,492,000
108,835,721
95,000,000
7,121,332
4,444,444
150,000,000

A g g r e g a te ..............................................................................

$380,943,497




t Secretary C kawkobd .

10

United States Banks and Paper Currency vs,

[January,

Tlie House Committee o f W ays and Means, in 1830, estimated the losses
on depreciation o f bank notes issued prior to 1817 at $30,000,000. They
embraced, in this estimate, the loans made by the Government in depreci­
ated paper and subsequently paid in gold. Thus, in 1824, $100 in gold
was paid in the redemption o f a stock which had been issued at 88 for
bank notes, at 12 per cent discount for specie— equal to 77 for specie.
The Government thus paid 10 years’ six per cent interest, $60. and $100
principal, making §160 for the use of $77. All these evils o f the paper
system determined Congress to pass the Independent Treasury law ; that
is, a law by which the Treasury should be independent o f all banks, re­
ceiving and paying out the “ Constitutional currency” only. The W h ig
party came into power, March, 1841. They called an extra session, and
immediately repealed the Treasury law, throwing the Treasury again into
the hands o f deposit banks in various parts o f the country, but all o f which
were required to give ample security for the public funds. A t the next
election this party lost power, and the Independent Treasury law was re­
enacted in 1816, continuing in force down to February, 1862, a period o f
sixteen years, to the entire satisfaction o f the people, the banks, and the
Government. N o disturbance o f the currency was created by i t ; the G ov­
ernment did not lose a dollar; and its action, by keeping up a constant
demand for coin for all public dues, and emitting a stream o f metallic cur­
rency through the channels o f public expenditure, kept the metals active
and wonderfully promoted the increase o f the metallic currency. In ail that
period, the finances were in New York administered with great ability byr
Mr. J. J. C isco, Assistant Treasurer.
In the meantime, each State had taken similar action against bank cred­
its. New York had, in 1838, established the security system, by which no
bank can issue notes not secured on New York or United States stock. Il­
linois prohibited banks altogether, but subsequently allowed the security
system, but had provided for the collection o f State duties in specie. Ohio
had similar provisions, and throughout the country there was a steady ap­
proximation to a purely specie currency. The New York security law was
adopted in the following States :
Michigan............................
New Jersey..................... .......................... 1850
Virginia............................. .......................... 1851
Illinois............................... .......................... 1851
O h io .................................
Iow a................................... ............................1858
In dia n a............................. ...........................1852
W isconsin........................ ........................... 1854
Missouri............................. .......................... 1856
Tennessee........................ .......................'"..1852
Louisiana.......................... ..........................1857
M innesota........................
T ota l............................

Stocks held, I860.

Circulation, ’ 60.

$192,831
962,911
3,584,078
9,826,691
2,153.552
101,849
1,349,466
5,031,504
725,620
1,233,432
5,842,096
50,000

$2^2,197
4,811,832
9,812,987
8,981,723
7,983,889
508,806
5,390,246
4,429,855
7,884,885
5,538,978
11,579,313
50,000

§57,951,954

$97,212,827

The effect o f all these movements was greatly to diminish the use o f
piper as a currency, but the extraordinary degree to which this diminution
took place is not generally appreciated. The following figures will give




1864.]

State Banks and ike Sub-Treasury.

11

some indication o f it. They show, per census, the annual productions of
the country at three periods, with the imports and exports, and bank cir­
culation :
.------------------Annual production*------------------ >
Manufactures.
Agriculture. Imports & ex. Population.
1840.. . $483,278,2(55
$021,163,977
$239,229,466
17,060,000
1850.. . 1,055,595,899
994,093,842
330,037,028
23,191,871
1860.. . 2,000,000,000
1,910,000,060
762,284,237
81,000,000

,----------Circulation.---------- ,
Bank notes.
Specie.
$149,000,000 $83,000,000*1
155,012.911
112,615,603
202,005,767
275,000,000}

The paper circulation in 1840 was about nine dollars per head o f the
population. It was sixty per cent o f the imports and exports, and thirteen
per cent o f the annual productions. In 1860, the circulation was less than
seven dollars per head o f the population, thirty per cent o f the imports and
exports, and only five per cent o f the annual productions. Had it borne to
th e.latter ihe same ratio as in 1840, the amount would have been
$660,000,000. The increase required by business was made up, it appears,
by specie. Thus the whole currency had become either specie, or paper
secured upon State and United States stocks, and this to an extent that was
quite safe, because the rule that the bank notes o f each State should be se­
cured on the stocks o f the State afforded far greater security than if all were
secured on one kind o f stock. Thus New York State stock will always be
a favorite with New York capitalists; the citizen o f Massachusetts prefers
his own State stock. The surplus capital o f each State naturally seeks in­
vestment near home, where its value is controlled by no rival interests. It
is apparent from the above table that the course o f the Government in sep­
arating its finances from the banks, and making the currency o f the Con­
stitution the only medium between it aud the people, and causing it to flow
actively through the Treasury, was an eminently wise one. It is also ap­
parent that the restraint put upon paper money by State laws operated in
a most salutary manner in the same direction, and induced the immense
development o f business which grew out o f the great production o f the
couutry, to be carried on in a strictly specie currency. I f it is assumed that
all goods and produce produced are sold five times only before being con­
sumed, then the trade o f 1840 would be represented by $5,500,000,000,
which turned upon a mixed currency o f $232,000,000. In 1860, by the
same rule, the transactions were $20,000,000,000, and turned upon a mixed
currency o f $477,000,000. Thus four times the business was done, with
double the circulation, because being specie it was more effective.
Such, then, are the lessons o f the past. It was only through fire and
water, as we have seen by our hasty review, that the country reached this
comparatively safe position financially. And we are now in this war reap­
ing the blessed fruits o f this policy, for the great increase o f specie capital
of the country thus brought about has been o f immense service in this hour
o f the nation’ s trial. Let us reflect what would have been the case now,
had the country been as bare o f coin, and its currency as dependent upon
rotten banks, as in 1 8 3 6 -3 ’7 ? The first disturbance caused by the war
would have swept all into insolvency, and left the Government without
credit and without resources. So far from that, when the Treasury came
forward for aid in 1861 the banks loaned $150,000,000 in gold to the
Government, and would have been able to have maintained specie payments
notwithstanding, but for the unfortunate inspiration o f the Secretary, which

* Census reports.




t Treasury reports.

} Mr. Chase.

12

United States Banks and Paper Currency vs.

[J amiarv

induced Congress to emit $150,000,000 o f paper money, and so alarm the
public, that 120.000,000 in specie were drained from the banks in thirty
days after the reading o f Mr. C h a se ’ s first annual report. The country
then accepted the necessity o f Government paper money as a war measure.
They recognized the fact that it was a resource within a fixed limit, although
very few thinking men accepted the dogma that it is “ borrowing without
interest,” since all know that it is the most expensive mode o f borrowing
that can be adopted by either Government or people. The Secretary, in
his late report, fully admits this fact, and asserts that “ additional loans in
this mode would, indeed, almost certainly prove illusory ; for diminished
value could hardly fail to neutralize increased amount.” “ Sufficient circu­
lation having been provided, the Government must now borrow like any
other employer,” etc. W ith these views, Mr. C h a s e ’ s future policy is cer­
tainly marvelous, it being no less than to add to the outstanding issue o f
the Government $300,000,000 o f inconvertible bank paper, o f a less value
than the Government notes o f which he complains, and to make the system
o f issues “ a permanent national currency” ! There have been organized, he
informs us, one hundred and thirty-four o f these banks, with an aggregate
capital o f $16,081,200, which is an average o f $120,000 each. A t this
average, the number o f banks under the law will be two thousand, with
$226,000,000 of capital, and authorized to circulate $203,400,000 o f paper
notes, receivable for public dues and redeemable in greenbacks. If these
banks do any business besides emitting circulation, it must be to loan their
notes and the Government deposits that they are to have, on values inflated
at present fifty per cent, and the action o f their owm notes will still further
inflate prices, because they will increase the existing paper money fifty per
cent. These facts are a guarantee that those banks can never .pay specie,
because a return to specie payments by the old banks would sweep away
half the assets o f the new institutions, as was the case with the late National
Bank in 1839. Let us suppose that these concerns should hold the whole
o f their $100,000,000 o f Government deposits— and it is intended that they
shall hold much more than that— and that they have loaned the money on
securities inflated one half. On the approach o f peace, the Government
will want its money ; the old banks may resum e; and the new banks at­
tempt to realize to pay the Government, while their notes are run in for
redemption. They would have to sacrifice $100,000,000 o f assets to pay
the Government, while at the same time they would bo compelled to sell
stock to redeem the national circulation, which would become worthless
from discredit. A t such a moment, the insolvency o f the whole mass of
banks would involve the Treasury in dishonor and the Government in ruin.
In this connection consider the nature o f this uniform currency,” for
it is this idea o f uniformity that is continually dwelt upon in speaking of
these bank issues. W ill it then be uniform ? Greenbacks are, and wdiy
not this ? The answer is very simple and plain, that it will not be, f o r it is
redeemable (that is, convertible into legal tender,) only at the point o f issue.
Suppose one were to receive one o f these notes issued in Oregon, in some
out-of-the-way village, and redeemable only there, what would be its value
in New York city ? O f course it would only be what the redeeming agent
in that city (if it had one, if not, what the broker) chose to give for it, and
he would buy it at a discount just in proportion to the expense and diffi­
culty o f making the conversion. It would be more difficult to send a note
to Oregon to be redeemed than it would be to send one to Chicago, and




1861.]

State Banks and the Sub-Treasury.

13

therefore the discount on it would be greater.
Hence these notes will be
at every shade o f discount, and as far from uniformity as anything could
well be. Greenbacks differ in a very essential particular ; they are a legal
tender fo r all debts, and, o f course, when notes are a legal tender their

2>oint o f

redemption is everywhere where there is a purchase to make or a
creditor to pay. These new bank issues are not to be a legal tender be­

tween individuals, and are only to be redeemed (that is, converted into
legal tender) at the point o f issue.
A nd in this uncertain discount on these notes will consist the chief pro­
fits o f issue.
The history o f the New Y ork law is the proof o f this.
Nearly all the amendments o f that law through many years were directed
to circumventing the banks o f issue, who kept agents to buy up their own
notes at a discount.
The plan is this : The law allows five individuals—
two men and three clerks— to organize in an inaccessible village a bank o f
.$50,000. They are to pay in one-third, say $15,000, and one-third o f that
is to be put into bonds, say $5,000. On these bonds they get 14,500 cir­
culating notes, with which they buy more bonds and get for them $4,150
more notes, and, repeating this operation six times, they will have lodged
$26,000 o f stocks and have out $24,000 o f notes. The account will then
stand—
C a p ita l..................................................................................
Stocks lo d g e d .......................................................................

$10,000
26,000

Notes o u t ..............................................................................

$36,000
24,000

They draw $2,520 per annum interest from the Government in gold on
the stocks, and lend the $10,000 at 7 per cent. The circulation cannot be
redeemed, because the “ place o f issue ” cannot be found. The owners
have a place o f redemption in W all Street, where they charge from £ to 5
per cent, according to the panic which they can excite.
The creation o f
panics is one portion o f their craft. If there is no alarm redemptions are
sluggish and profits small, and circulation bankers are disgusted. Means
are taken to alarm the public and cause a rush for redemption, when the
rate rises to 5 @ 10 per cent. The “ uniform currency banks” rake down
the profit and then soothe the public mind until they get the circulation
out anew. If they redeem six times per annum, at 2 per cent, they make
$2,880, and the profits are—
Gold interest on stock.........................................................
Interest on capital.................................................................
Discount on redemption......................................................
Profit 40 per cent on investment................... ..

$2,520
700
2,880
$6,100

This is a mere circulation bank, and does not take into account the profits
o f Government deposits without interest on security. It is simply a “ uni­
form currency ” machine. It is easy to see that this system will, sooner or
later come to the g rou n d ; that the notes, when panic is carried too far,
will not be paid by the banks, but will fall upon the Treasury. H ow will
the Treasury meet the demand in that hour ? By selling the stock held by




14

United States Banks vs. State Banks.

[January,

the banks. W h at will $300,000,000 o f stocks bring at a moment o f dis­
solution o f the currency ?
The laws of the State o f New York, after the experience o f twenty years’
operation o f the security system, gradually improved until the currency in
the State had become very uniform— nearly on a par with specie, and,
therefore, on a par with other well regulated banks in other States. This
was done by requiring State and United States securities. Thus, take any
New York bank, say Commercial Bank o f Whitehall.
Its position is as
follow s:
New York stocks................., ..............................................
United States 6 per cent stocks......................................

$52,000
60,000

Total stocks..................................................................
C ircu lation ...........................................................................

$112,000
101,888

Now, if this bank lodged its stocks in Washington, instead o f Albany,
would its notes be any more secure, or uniform, or national, or nearer to
specie standard ? Certainly not.
Let us go to Indiana. The Farmers
Bank has $53,000 Indiana 5’s to secure $45,810 circulation. If Mr. C hase
compels it to sell its State stocks and buy United States stocks, will the
purposes o f currency be any better subserved ? Besides, in case o f general
disaster, would it not be better that the stocks should be part State stocks,
so that such a mass o f United States securities might not be thrown on
the market at once.
Thus we see that there is no “ perm anency” and no “ unform ity” in this
currency. It is a mere irredeemable issue of bank notes, petted and fostered
by the Government, and, therefore, if the system had any permanency it
would only become an immense political machine. The benefit Government
expects to receive is really the most wonderful part o f the plan. Mr. C h a se
tells us that it will create a demand for United States securities as a basis
for the banks. How strange it sounds to have such a reason as that urged,
when we know that the plan contemplates the depositing o f the bonds with
the Treasury o f the United States and the issuing on them, by the Govern­
ment, o f 90 per cent in currency. That is, Government pays these petted
banks 6 per cent in gold on its bonds for the privilege o f issuing to them
this currency, when it might just as well have issued greenbacks without
the intervention o f banks or bonds and without paying any interest. Such
a benefit as that is certainly marvelous ! And yet this is urged as the great
reason why this system should be supported, and Government feels so very
grateful for the privilege (?) thus granted that it intends to deposit all its
funds with these corporations without asking any security, and is to tax
them very gently.




1864.]

A National Currency.

A NATIONAL

15

CURRENCY.

BY A. K, SHEPARD.
I n a country like ours, where commerce is the chief pursuit, many social
evils are directly attributable to radical faults in business, which are very
easily corrected, and yet are allowed to exist for generations.
For example, counterfeiting is a crime alarmingly on the increase, and
one which leads to others o f even worse character, and its very existence is
due to the business o f the country which tolerates such a system o f cur­
rency as that with which we are afflicted.
It is not too much to say openly, and from the results o f observation and
study, that our paper money, as it now exists, is an intolerable nuisance,
Unworthy the genius o f a people making as high pretensions as Americans.
In the State of New York are some three hundred banks, with a circula­
tion, in June, 1863, o f §32,000,000. Each bank issues notes o f the various
denominations from §1, to §500, and very frequently using several plates
for engraving the same denomination.
In new England are over five hundred banks, issuing all sorts o f notes,
and in the Western and other loyal States are eight hundred more, making
a total of sixteen hundred banks in the country, issuing notes.
Most o f these notes are quoted at various rates o f discount, from £ per
cent to 20, and even 40, per cent. Most o f them are unbankable out of
their own State; many irredeemable by reason o f dangerous counterfeits;
and these counterfeits in circulation by thousands— a premium on crime
and rascality. Banks and brokers thrive, while the community is fleeced
and annoyed.
There are no less than one thousand different kinds o f bank-notes, which
every business man in New York or New England is called upon to criti­
cise and examine, and pay discount on, and suffer more or less from, in the
ordinary course o f trade.
W e talk o f the inconvenience o f traveling on the continent o f Europe,
caused by the difference in the coins o f each petty State, while the citizen
of Pennsylvania or Illinois must visit the broker before he can visit New
York or Massachusetts.
Now, opposed to this confused and anomalous condition o f the currency,
is a system o f paper money supplied by G overnm ent; one which it is as
much the prerogative and duty of Government to provide as to issue coin,
and which should represent the whole wealth and material resources o f the
country ; a currency that would pass equally well in Maine and Minnesota,
and whose simple eight or nine denominations would not require the skill
o f an adept to distinguish from counterfeits. Such a system the progress
o f the age requires, and the commerce o f the country should demand o f
Congress, at its present session, such legislation as will suppress the illegal
issues which infringe upon the constitutional rights o f the 'general Govern­
ment.
W hat is our State banking system but an attempted evasion o f Art. I.,
Section 10, o f the Constitution o f the United States, which expressly states
that *“ no State * '* shall emit bills o f credit.”
Are not our State bank bills registered and entered by State officers, and




16

d National Currency.

[January,

does not the State hold the securities and stand godfather to the whole
transaction ? The bills are as much State “ bills o f credit” as if issued di­
rectly by the State.*
The best corrective yet proposed to these abuses, is a good system of
banking to be authorized by Congress, and the people owe it to themselves
to lend it their hearty support.
The present law may have its defects ;
but, if it has the act can be easily amended and the system perfected. To
the whole country belong the profits upon currency, because upon the whole
country are visited'the evils resulting from it, and this can only be secured
by a national currency. Nor can the banks complain, f
In June, 1863, the banking capital o f the State o f New York was
$108,499,653, and the aggregate profits on that capital, in round numbers,
$18,000,000, or about 17 per cent. Taking from the banks their $32,000,000
o f circulation, would still leave the aggregate profits on their entire capital
1
per cent.

* We think our correspondent is in error here.
1. A bank bill can in no sense be said to be issued by the State, any more than
the promissory note of any corporation is the note of the State. It is not upon the credit
of the State that the bills are issued. The State does not guarantee their payment, it
does not in any way lend its credit to the banks, it forces no one to take the bills they
issue, and becomes iu no way responsible for them. The bank issues stand solely on
the credit of the bank whose promises to pay they are.
2. What agency, then, it may be asked, has the State in the matter? W e reply,
that it simply regulates this branch of business, as it regulates others within its own
territory. The State does not grant the right itself, but it restricts the right to issue
bank bills to those persons and associations who give certain security by which the
public is saved from imposition and loss. No one contends, o f course, that the Con­
stitution o f the United States contains any provision prohibiting the issue of notes or
bills by private persons or associations. And if no clauses of State Constitutions and
no State statute intervened, what would there be to prevent any man or set of men
issuing notes and circulating them ? For “ the powers not delegated to the United
States by the Constitution, nor prohibited by it to the States, are reserved to the
States respectively, or to the people. The State, however, as we just said, steps in
to regulate this branch of trade, restricting this right to those persons, etc., who give
security, thus saving the public from imposition and loss. This is the sole agency the
State has in the matter. Those who maintain that the charters of banks, granted by
State governments and allowing the issue of notes, violate the Constitution, might
with more force argue that the issue of State bonds or State stocks is an infringement
of the prohibition against bills of credit, because these are pledges of the credit o f the
State.— E d. H unt’s M er. Magazine .
f We do not understand iiow, by transferring the currency from State banks to
United States banks, the country is to receive any benefit. The country dies get
the benefit of the present “ greenbacks;” but all the profit of the United States
hank currency goes to the United States banks, just as the present profit on State
currency goes to the State banks. If, therefore, we want a uniform currency, and
think the Government should have the profits, the present issues must be continued,
and State currency taxed out o f existence, We see no other way of accomplishing
these ends.— E d. H unt' s M kr. M ag .




17

Aoencv.

The business world has many short comings to answer for. Does the
modern merchant or banker ever think what a responsibility rests upon
him ? To be faithful to the duties required o f him is not the easy task it
was a century ago. W ith increased tacilities for doing good, the tempta­
tions to do evil have also increased ten-fold.
Suppose that when Venice was the great commercial center, one o f her
“ merchant princes ” was extravagant, reckless, speculative. It affected only
himself; his transactions were mostly cash— his relations limited. Few
suffered if he went down. But, to-day, in New York, with our complex
system o f trade and credit, into which every man is woven with meshes
that are unseen, but sensitive to the least disturbance, if a great house fails
it scatters devastation far and near.
Sitting in his counting-room, the merchant has the resources o f the world
at his command. The strokes o f his pen are wafted thousands o f m iles;
the vast and complicated machinery o f steam and electricity are set at work
in distant cities and States to further his combinations and projects. I f
those projects are formed in ignorance o f fundamental laws, can the pro­
jector hope to escape with mere personal inconvenience? It may well be
questioned whether our wisdom has increased with our facilities for apply­
ing it in life.
A commercial literature is the thing we need— a literature of which
Hunt's Magazine is the exponent, and which shall discuss and bring home
to every man o f business the questions o f principle and policy which are so
often through ignorance disregarded.
O f these questions not the least important are those resulting from abuses
o f paper money, and the easiest solution o f their difficulties lies in the
hearty support o f a national banking system— a system which shall give
us a uniform currency over the whole country.

COMMERCIAL

LAW.

No.

9.

AGENCY.
AGENCY IN GENERAL.

T he relation o f principal and agent implies that the principal acts by and
through the agent, so that the acts in fact o f the agent are acts in law of
the principal; and only when one is authorized by another to act for him
in this way, and to this extent, is he an agent. One may act as the agent
o f another who is disqualified from contracting on his own account; thus
infants, married women, and aliens may act as agents for others.
A principal is responsible for the acts o f his agent, not only when he has
actually given full authority to the agent thus to represent and act for him,
but when he has, by his words, or his acts, or both, caused or permitted the
person with whom the agent deals to believe him to bo .clothed with this
authority. A nd a man may thus be held as a principal, because he has in
some way authorized all persons to believe that he has constituted some other
man his agent, or because he has authorized only the party dealing with the
supposed agent to so believe. For ail responsibility rests upon two grounds,
which are com m only united, but either o f which is sufficient: one, the g iv ­
ing o f actual authority ; the other, such appearing to give authority as jus-




18

Agency.

[January,

fifies those who deal with the supposed agent in believing that he pos­
sesses this authority.
A general agent is one authorized to represent his principal in all his
business, or in all his business o f a particular kind. A particular agent is
one authorized to do only a specific thing or a few specified things. It is
not always easy to discriminate between these ; but it is often important,
by reason o f the rule that the authority o f a general agent is measured by
the usual scope and character o f the business he is empowered to transact.
By appointing him to do that business, the principal is considered as saying
to the world that his agent lias all the authority necessary to the doing o f
it in the usual way. And if the agent transcends his actual authority, but
does not g o beyond the natural and usual scope o f the business, the princi­
pal is bound, unless the party with whom the general agent dealt knew
that the agent exceeded his authority. For if an agent does only what is
natural and usual in transacting bu-iness for his principal, and yet goes
beyond the limits prescribed by him, it is obvious that the principal must
have put particular and unusual limitations to his authority; and these
cannot affect the rights o f a third party who deals with the agent in igno­
rance o f these limitations. But, on the other hand, the rule is, that, if an
agent who is speeially authorized to do a specific thing exceeds his author­
ity, the principal is not bound ; because the party dealing with such agent
must inquire for himself, and at his own peril, into the extent and limits of
the authority given to the agent. Here, however, as before, if the party
dealing with the agent, and inquiring, as he should, into his authority, has
sufficient evidence o f this authority furnished to him by the principal, and,
in bis dealings with the agent, acts within the limits o f the authority thus
proved, he cannot be affected by any reservations and limitations made
secretly by the principal, and wholly unknown to the person dealing with
the agent.
IIOW AUTHORITY" MAY BE GIVEN TO AN AGENT.

It may be given under seal, in writing without seal, or orally. And an
oral appointment authorizes the agent to make a written contract, but not
to execute instruments under seal. Nor, as it seems, if an agent has parol
authority to make a contract, and affixes a seal to it, will the seal be treated
as a nullity, in order to give to the instrument the effect o f a simple con­
tract. But an instrument under seal, signed and sealed in the principal’s
presence, and by his request and authority, will be regarded as the princi­
pal’s deed, made by himself. One employed by another to act for him in
the usual trade or business o f the agent, as auctioneer, broker, or the like,
acquires thereby authority to do all that is necessary or usual in that busi­
ness. And if a person puts his goods into the custody o f another whose
ordinary and usual business it is to sell such goods, he authorizes the whole
world to believe that this person has them for sale ; and any person buying
them honestly, in this belief, would hold them.
Therefore, if fraudulent by-bidding be procured or permitted by the auc­
tioneer, even without the knowledge o f the owner o f the goods, the owner
is answerable for this fraud of his agent, and the buyer has a right to re­
fuse to take the goods. So neither party is bound until the agreement o f
sale is completed. Therefore the auctioneer may withdraw any article, and
a bidder may withdraw any bid, until the article is “ knocked down,” but




1864.J

Agency.

19

not afterwards; for then the sale is completed, and the property in (or
ownership o f ) the article passes to the buyer.
I f one is repeatedly employed to do certain things— as a wife or a son to
sign bills or receipts; or a domestic servant to make purchases ; or a mer­
chant or broker to sign policies, and the like— in all these cases, one dealing
with the person thus usually employed is justified in believing him author­
ized to do those things with the assent and approbation o f his em ployer;
and in the way in which he has done them, but not in any other way. Thus,
if a servant is usually employed to buy, but always for cash, this implies no
authority to buy on credit.
An agency may be confirmed and established, and in fact created, by a
subsequent adoption and ratification ; and a corporation is hound by the
ratification o f an agent’s acts, in the same manner as an individual would
be. But no ratification would be effectual to bind the principal, unless
made by him with a knowledge o f all the material facts. And there can
be ratification only where the act was done by one purporting to be an
agent, or by an assumed authority. Generally, one who receives and holds
a beneficial result o f the act o f another as his agent, is not permitted to
deny such a g en cy ; and in some cases this is extended even to acts o f such
agent under seal.
Thus, if an agent sell under seal property o f a supposed principal, which
might be a corporation, and receive payment and hand this over to the
principal, if the principal could show that the agent had no authority, he
might avoid the sale and recover the property; but he could not do this
and also hold the money paid for it. And if one, knowing that another
has acted as his agent, does not disavow the authority as soon as he conve­
niently can, but lies by and permits a person to g o on and deal with the
supposed agent, or to lose an opportunity of indemnifying himself, this is
an adoption and confirmation o f the acts o f the agent. Nor can a supposed
principal adopt a part for his own benefit, and repudiate the rest o f the
supposed agency ; he must adopt the whole or none.
I f an agent makes a sale, and his principal ratifies the sale, he thereby
ratifies the agent’s representations made at the time o f the sale and in rela­
tion to it, and is bound by them. Nor can there be a ratification by one
party o f an act which ho did not authorize, if by the ratification he creates
a duty on the part o f another, or a claim for damages against him. Thus,
he cannot ratify a demand o f money or property on which to ground an
action, or to defeat a tender, if he had not authorized any such demand
before it was made.
The act o f ratification must take place at a time, and under circumstan­
ces, when the ratifying party might himself have lawfully done the act as
principal. Thus, we have seen that a consignor or seller may stop goods
in transitu, by reason o f the insolvency o f the consignee or buyer. And
this he can do by any authorized agent. But if a friend steps forward to
stop them for the consignor, without authority, the consignor may ratify
this and make the stoppage good before the transit is ended ; but he can­
not, after the transit is ended, ratify a stoppage made before, because he
cannot himself stop the goods after the transit is ended.
The whole subject o f mercantile agency is influenced and governed by
mercantile usage. Thus, a3 to the difference between factors and brokers,
the law adopts a distinction usual among merchants, although it may not
always bo regarded by them. A factor is a mercantile agent for sales and




20

Agency.

[January,

purchases, who has possession o f the g o o d s ; a broker is such agent, but
without possession o f the goods. Hence, a factor may act for his principal,
but in his own name, because the actual owner, by delivering to him the
goods, gives to him the appearance o f an ow n er; but a broker must act
only in the name o f his principal.
A purchaser o f goods from a fact r may set off against the price a debt
due from the factor, unless he buys the goods knowing that they are an­
other’s, and perhaps even then ; not so, if the purchaser buy from a broker.
Again, a factor has a lien on the goods for his claims against his principal;
but a broker generally has not.
One may be a factor as to ail rights and duties, who is called a broker ;
as an exchange broker, who has notes for sale on discount, certificates, etc.,
delivered into his possession ; and such broker, being actually a factor,
would have a lien on the policies o f insurance or other documents held by
him, for his commissions and charges about those documents.
A cashier o f a bank, or other official person, may be an agent for those
whose officer he is, or for others who employ him. He has, without spe­
cial gift, all the authority necessary or usual to the transaction o f his busi­
ness. But he cannot bind his employers by any unusual or illegal contract
made with their customers. The same law, and the same qualifications,
apply to the case o f officers o f railroad companies, or other corporations.
Their acts bind their employers or companies, so far as they have author­
ized those acts, or have justified those who dealt with the officers in be­
lieving that they possessed such authority ; but no further.
N or would the acts or permissions o f such officer have any validity if
they violate his official duties, and are certainly and obviously beyond his
power, even if sanctioned by his directors ; as if the cashier o f a bank per­
mitted overdrawing, or the like. And all parties who deal with such agent
in such a transaction would be unable to hold the principal, because o f their
knowledge or notice o f the agent’s want o f authority ; for the law would
consider them as knowing that the officer could have no right to do 6uch
things.
Therefore, the general agent o f a corporation, clothed with a certain pow ­
er by the charter or the lawful acts o f the corporation, may use that power
for an authorized, or even a prohibited purpose, in his dealings with an
innocent third party, and render the corporation liable for his acts, if they
be really within the power given him, or seem to be within it by the fault
or act o f the corporation ; but not otherwise.
EXTENT AND DURATION OF AUTHORITY.

A general authority may continue to bind a principal after its actual
revocation, if the agency were known, and the revocation be wholly unknown
to the party dealing with the agent, without that party’s fault.
An authority to sell implies an authority to sell on credit, if that be
u su al; otherwise n o t ; and if an agent sells on credit without any author­
ity, or by exceeding his authority, the principal may claim his goods from
the purchaser, or hold the agent responsible for their price. Neither an
auctioneer, nor a broker employed to sell, has any right to sell on credit,
unless this authority is given them expressly, or by some known and es­
tablished usage. A nd the agent is generally responsible if he blends the
goods o f his principal with his own, in such a manner as to confuse them




1864.]

Agency.

21

together, or takes a note payable to himself, unless this be authorized by
the usage o f the trade.
If the agent (or factor) takes a note payable to himself, and become;,
bankrupt, such note belongs to tire princip tl, and not to the agent’s as­
signees.
A power to sell gives a power to warrant, where there is a distinct usage
o f making such sales with warranty, and the want o f authority to warrant
is unknown to the purchaser, without his fau lt; and not otherwise. Thus,
it has been held that an authority to sell a horse implies an authority to
sell with warranty, because horses are usually sold with warranty. A gen­
eral authority to sell goods carries with it an authority to sell by sample.
General authority to transact business, or even to receive and discharge
debts, does not enable an agent to accept or indorse bills or notes, so as to
charge his principal. Indeed, special authorities to indorse are construed
strictly. But ibis authority may be implied from circumstances, or from
t!ie usage o f the agent, recognized and sanctioned by the principal W here
a confidential clerk was accustomed to draw bills for his employer, and this
employer had authorized him in one instance to indorse, and on two other
occasions had received money obtained by his indorsement o f his employ­
er’s name, the court held that a jury might consider the clerk authorized
generally to indorse for his e uployer. An agent to receive cash has no
authority to take bills or notes, except bank-notes.
It an agent sells, and makes a material representation which he believes
to be true, and the principal knows it to be false, and does not correct it,
this is the fraud o f the principal, and avoids the sale.
If an agency be justly implied from general employment, it may continue
so far as to bind the principal after his withdrawal o f the authority, if that
withdrawal be not made known, in such way as is usual or proper, to all
who deal with the agent as such.
Revocation, generally, is always in the power and at the will o f the prin­
cipal ; and his death operates of itself a revocation. But the death o f an
agent does not revoke the authority o f a sub-agent appointed by the agent
under an authority given him by the principal. I f the power be coupled
with an interest— as where one gives a person power to sell goods and ap­
ply the money for his own benefit, or the like— or it is given for a valuable
consideration ; and if the continuance o f the power is requisite to make the
interest available, then it cannot be revoked at the pleasure o f the princi­
pal. Marriage o f a woman revokes a revocable authority given by her
while single.
If an agent to whom commercial paper is given for collection be in fault
toward his principal, the measure o f his responsibility is the damage actu­
ally sustained by his principal, lie must give notice o f tke dishonor o f
such paper to his principal, who must notify the indorsers; and the agent
need not notify the indorsers.
If a bank receive notes or bills for collection, although charging no com ­
mission, the possible use o f the money is consideration enough to make
them liable as agents for compensation ; that is, liable for any want o f due
and legal diligence and care. But by the prevailing, though not quite
uniform authority, if the bank exercise proper skill and care in the choice
o f a collecting agent, or o f a notary, or other person or officer, to do what
may be necessary in relation to the paper committed to them, the bank is
not liable for his want o f care or skill.
.2
VOL. L .---- NO. I.




%

[January,
In genera], an exigency, or even necessity, which would make an exten­
sion o f the power o f an agent very useful to his employer, will not give
that extension. A master o f a ship, however, may sell it, in case o f neces­
sity, or pledge it by bottom ry, to raise money. But this is a peculiar effect
o f the law-merchant, to be considered more fully in the chapter on the Law
o f Shipping; and no such general rule applies to ordinary agencies.
THE EXECUTION OF AUTHORITY.

Generally, an authority must be conformed to with great strictness and
accuracy ; otherwise, the principal will not be bound, although the agent
may be bound personally. Thus, i f A , the agent o f B, signs “ A , for 33,” it
has been said that this is not the act o f B, but o f A for him. But if he
signs “ B , by A ,” this is the act o f B by his instrument A . This strictness
is now abated considerably ; and, whatever be the form or manner o f the
signature o f a common contract, it will be held to bind the principal, if that
were the certain and obvious intent. In the case o f sealed instruments, it
would seem that the ancient severity is more strictly maintained.
That the authority must be conformed to with strict accuracy, in all mat­
ters o f substance, is quite certain ; but the whole instrument will be con­
sidered, in order to ascertain the intention o f the parties and the extent o f
authority. A power given to tw o cannot be executed by o n e ; but some
exception to the rule as to joint power exists in the case o f public agencies,
and also in many commercial transactions. Thus, either o f two factors—
whether partners or not— may sell goods consigned to both. A nd where
there are joint agents, whether partners or not, notice to one is notice to both.
In commercial matters, usage, or the reason o f the thing, may sometimes
seem to add to an authority; so far, at least, as is requisite for the full dis­
charge o f the duty committed to the agent in the best and most complete
manner. Thus, it is held that an agent, to get a bill discounted, may in­
dorse it in the name o f his principal, unless he is expressly forbidden to
indorse. So a broker, employed to procure insurance, may adjust a loss
under the sam e; but he cannot give up any advantages, rights, or securi­
ties o f the assured, by compromise or otherwise, without special authority.
LIABILITY OF AN AGENT.

Generally, an agent makes himself liable by his express agreement, or by
transcending his authority, or by a material departure from it, or by con­
cealing his character as agent, or by such conduct as renders his principal
irresponsible, or by his own bad faith. If an agent execute an instrument
the language o f which would hold him personally, he cannot exonerate him­
self by evidence showing that in fact he signed it as agent, and that this
was known to the other party. Because this would be to vary the terms
o f a written contract by evidence, which is not permitted, as we have before
stated. A party with whom an agent deals as agent cannot hold him per­
sonally, on the ground that he transcended or departed from his authority,
if that party knew at the time that the agent did so. I f he exceeds his
authority, he is liable on the wholo contract, although a part o f it is within
his authority. One who, having no authority, acts as agent, is personally
responsible. But if an agent transcends his authority through an ignorance
o f its limits, which is actual and honest, and is not imputable to his own
neglect o f the means of knowledge, it may be doubted whether he would
b e h e ld . But we think he would be held in some form, if an innocent




party dealing with him as agent would otherwise suffer loss. Thus, if the
wife o f a person abroad bought family supplies on the authority o f her
husband, and continued to do so after the death o f her husband had in fact
revoked the authority, but before his death was known, we should say the
wife would be held, if the estate o f the deceased was not. But the author­
ities are not in agreement on this point.
RIGHTS OF ACTION GROW ING OUT OF AGENCY.

If an agent intrusted with goods sell the same without authority, the
principal may affirm the sale and sue the buyer for the price, or he may
disaffirm the sale and recover the goods from the vendee.
In case o f a simple contract, that is, a contract not under seal, an undis­
closed principal may show that the nominal party was actually his agent,
and thus make himself actually a party to the contract, and sue upon it ;
but if the other party has previously in good faith settled with the supposed
agent, or paid him anything, in cash or by charge, or in account, this other
]>arty must not lose by the coming forward o f the principal. So, too, an
undisclosed principal, when discovered, may be made liable on such con ­
tract; thus, if A employed B to buy for him of C certain goods for a cer­
tain price, and B did so buy them and receive the goods and deliver them
to A , and C charged B with them, supposing he bought them for himself,
and B failed or refused to pay, and C then discovered that B was only the
agent o f A in the purchase, C could sue A for the price. Any principal
unknown at the time o f the contract, and discovered afterwards, would,
however, be protected, if his accounts or relations with his agent had been
in the meantime changed in good faith, so as to make it detrimental to him
to be held liable; as it; for example, in the case before supposed, A had
paid B the price, supposing that B had paid or would pay 0 . If one sells
to an agent, knowing him to be an agent, and knowing who is his princi­
pal, and elects to charge the goods to the agent alone, he cannot after­
wards transfer the charge to the principal.
In any transaction effected through an agent, the knowledge o f the prin­
cipal is said to be the knowledge of the agent; we should doubt whether
it were so always, at the instant o f the principal’s acquiring it ; but it cer­
tainly is when the principal has had the means o f communicating the
knowledge to the a g e n t; and therefore the principal will be bound in the
same way as if lie had communicated what he knew to the agent. A fa­
miliar example may be, if one in New. Orleans orders insurance to be made
on a ship, in a Boston office, by an agent in Boston, and learns that his
ship is lost in season to inform his agent, by telegraph or otherwise, before
the insurance is made, the insurance is equally void whether he so informs
his agent or not. But if he does not know it until it is impossible for him
to inform his agent, and prevent his effecting the insurance, the policy, we
think, would be good.
Notice to an agent before the transaction goes so far as to render the
notice useless, is notice to the principal. And knowledge obtained by an
agent in the course of the transaction itself, is the same thing as knowledge
of the principal. Notice to an officer or member o f a corporation is notice
to that corporation, if the officer or member, by appointment, or by usage,
had authority to receive it for the corporation ; but notice to any member
is not necessarily notice to a corporation.
If money be paid to one as agent o f a principal who has color o f right




[January,

Conmercial Chronicle and Review.

24

the party paying cannot try that light in an action against the agent, but
must sue the piincipah But where the ptincipal has no right, the action
may be brought against the agent, unless he has in good t'aitli paid’ the
money over to his principal, or made himself personally liable to him for
it. I f he received the money illegally, he m a y b e sued, although he has
paid it over ; so be may, if he has paid it over when he should not have
done so ; as if he pays it before a certain condition, precedent to the pay­
ment, be perform ed; or if he paid it over after receiving sufficient notice
from the payer not to pay it over to his principal.
If A does an injury to B by conspiring with C, the agent o f B, B may
generally bring an action against A in his own n a m e; and then may have
the evidence o f the agent. If an agent and a third person have used the
principal’s money illegally, as in the purchase o f lottery tickets, though the
agent could bring no action, the principal may, if personally innocent. And
where an agent has been induced, by the fraud o f a third person, to pay
money which ought not to have been paid, either the agent or the princi­
pal may bring an action to recover the money back.
An agent in possession o f negotiable paper may be treated with as having
full authority to dispose o f the same, by any person not having knowledge
o f the absence or limitation o f authority. But if the paper was given only
in payment of, or as security for, the pre-existing debt o f the agent, there
is, perhaps, reason for saying that the receiver does not take it as an in­
dorsee or purchaser generally does, but takes only the right and interest of
the party from whom he receives it. Such, at least, has been the decision in
some cases, on the ground that this was not a proper business use o f nego­
tiable paper.
But we are not entirely satisfied either with the reason or
the conclusion.

.COMMERCIAL CHRONICLE AND REVIEW.
I N T E R E S T IN' T H E A N N U A L R E P O R T S — A N T I C I P A T E !) A P P R E C I A T I O N
E S— S P E C U L A T I V E A C T I O N — T R E A S U R Y

REPORT— NO

M ORE

S P E C T I V E IS S U E S — S C A R C I T Y O F C U R R E N C Y — F I V E - T W E N T Y
BANK

OF T IIB C U R R E N C Y — N E W

I f. 8. C U R R EN C Y — N E W
IN V E S T M E N T S — R A T E

TAX­

BAN KS— PRO­

OF

IN T E R E S T —

R E T U R N S — D E P O S I T S — C A U S E S O F D E A R M O N E Y — T R K A S P R Y D E M A N D — R IS K IN I N T E R E 6 T IN

EUROPE— N E W

B A N K S — SP E C IE E X P O R T S— N E W

___P R I C E S — G O L D

N A T I O N A L B A N K S T O C K S — U N I T E D S T A T E S ST O C K S

I N T E R E S T — IM P O R T S — T A B L E S — C O M M O D IT IE S — E X P O R T S — B A L A N C E — 3P K C 1K

M O VEM EN TS— A M O U N T IN B A N K S — E X C H A N G E — K ATES O F

GOLD— DEM AND.

D u r in g the first portion o f the last thirty days the markets were in a
very dull and inanimate condition. Most business people were awaiting
the annual message and reports with much anxiety. The ch ief desire,
however, was to see the financial report, and to learn the views and in­
tentions o f the Government as to raising the necessary funds the com ing
year, since the impression had become strong that a policy would be
pursued, or some measures would be attempted, looking to an apprecia­
tion o f the currency o f the country. It was understood that such an at­
tempt would be attended by a fall in prices, and such a change in the
currents o f business as would affect most leading interests seriously. In ­
deed, it had becom e known that a tax would be recommended on tobacco
and spirits, and those articles were consequently the objects o f an active
speculation, which carried the prices as high, if not higher, than even the
anticipated tax would warrant. General business was, however, to be




1804.]

Commercial Chronicle and Review.

25

affected by such measures as would be adopted to meet tbe large financial
wants o f the Government. The report o f the Secretary o f the Treasury
did not, however, fully relieve the public mind in this respect. It took
ground, indeed, strongly against any further issues o f United States notes,
hut did not indicate any intention o f diminishing the amount now o u t;
on the other hand, it strongly advocated the full operation o f the national
hanking law, which provides for the emission o f $200,000,000 o f bank
notes, redeemable in United States notes, and implied the emission o f
$50,000,000 o f deposit,reserve United States notes, as well as $350,000,000
more o f interest-hearing legal tenders. The latter are authorized to the
extent o f $400,000,000, and carry with them the right to be either o f
themselves a legal tender or convertible into legal tenders, in which case
$150,000,000 o f United States demand notes are authorized to meet the
demand for conversion. The Secretary' o f the Treasury does not regard
the interest-bearing notes as an addition to the circulation, but rather in
the light o f an investment that will not circulate as money. This view
has not been admitted generally', and experience only will decide how far
legal tender notes, o f denominations from $10 up to $100, but bearing
five per cent annual interest, will enter into the circulation before much
interest shall have accumulated upon them. A ten dollar note will bear
only four cents per month interest. I f money was very cheap and five
per cent interest not easily procurable, the notes would be readily taken
as an investment. But currency is in Chicago 10 @ 15 per cent interest,
in Cincinnati 10 per cent, and in New Y ork brisk at 7 per cent. H ence
the notes are worth more for circulation than for investment. Under
these circumstances the effect o f the report seemed to be that there would
be a considerable increase to the circulation o f the country. Thus out­
standing, D ecem ber—
United States notes........................................................... ........
Due banks, interest Treasury n otes......................................
D eposit reserve United States notes.....................................
National notes being printed.................................................

$400,000,000
50,000,000
50,000,000
20,000,000

T o ta l.........................................................................................'.
Issuable interest Treasury n otes.............................................
“
national currency........................................................

$520,000,000
350,000,000
200,000,000

This seemed to be the scope o f the present power o f the Secretary, who
asked for no more paper, but authority to issue $900,000,000 stock,.pay­
able at any time within forty years. Under the influence o f this report,
business seemed to revive in som e degree, and prices o f stocks and com ­
modities rose in value, although money kept pretty firm at seven per
cent, with an active demand. The subscriptions to the five-twenty stocks
o f the Government continued at the rate of more than $1,000,000 per
day. The investments in this stock were one cause o f the demand for
money, sustained by the speculative action induced in some com m odities
by the projected taxes and by the usual demand for money at the W est
for m oving the crops.
The amount o f five-twenties unsold on the 1st D ec. was $111,000,000,
and this was reduced to $85,000,000 by the middle o f Decem ber. Some
takers were o f opinion that they wculd command a premium when all




126

Commercial Chronicle and Review.

[January,

should have been taken up, on the ground that there will be no more
gold-bearing notes issued. Inasmuch, however, as the law o f March 3d,
last, authorized the issue o f $900,000,000 more, redeemable in ten to forty
years, with gold interest, and the Secretary asks for 8600,000,000 more
o f those bonds, and does not propose any more paper money issues, it is
difficult to see how further issues may be avoided. The rate o f money
continued, however, very high up to the close o f the year, there being
little disposition to operate. The bank returns, which will be found
under the usual head, indicate in the reduction o f deposits down to the
close o f N ovem ber the payments on account o f tire loan to the G overn­
ment. After that account was closed, the deposits began again to accu­
mulate, but without producing much desire to lend on the part o f the
institutions. The two leading causes o f distrust were, in addition to the
probable operations o f the Treasury, to which we have alluded, the rapid
rise o f interest in England and on the continent, and the aspect o f the
new banking law.
«
The rise o f interest in London to 8 per cent, as a consequence o f the
grow ing magnitude o f the cotton drain o f specie to which in former num­
bers we have called attention, was heightened by the political aspect o f
affairs in Europe, causing hoarding o f gold and a demand for that metal
on the part o f each o f the governments, which seeks to strengthen their
reserves in case of possible hostilities. The demand -for gold abroad has
not so direct an influence upon the money market now as at times when
the currency here is on a specie basis. A t such times a demand which
would cause an unusual export would indues a contraction o f loans on
the part o f the banks, and produce revulsion.
A t present g old is not
currency ; its presence here is only as a com m odity. It has indeed a
purchasing power, but only as other capital. Its exportation would in­
volve its conversion into circulating money and increase the amount seek­
ing investment.
The basis o f the circulation now is the paper o f the
Government, and that is not dependent in any degree ilpon the supply o f
the metals.
The organization o f the new banks under the national law causes a de­
mand for much capital. O f these, some one hundred and sixty have been
organized, with an aggregate capital o f $25,000,000, in different parts of
the country. This is a positive demand for and a locking up o f capital
before it becomes ready for loans.
In New Y ork city an institution of
$5,000,000 capital was organized Decem ber 21, with the H on. G e o rg e
O p d y k e president. This gentleman has been before the public in a num­
ber o f essays upon financial matters, and, with Mr. P eter C o o p e r and
other members o f the new institution, were a few years since the projec­
tors o f a •‘ bullion bank,” w hich designed to operate entirely upon a spe­
cie basis.
*
The organization o f these new institutions at a time like the present,
when the amount o f mercantile credits created in the operations of busi­
ness is less than usual, is calculated to produce some change in the cur­
rents o f business, and therefore to throw the old banks upon the defen­
sive, the more so that the Secretary o f the Treasury has asked o f C on ­
gress such discriminating taxation in favor o f the new banks as will be
likely to force the old ones to wind up. That a conflict is about to arise
between the two systems seems very probable, and Congress may be called
upon to alter the law so that the public deposits may not be placed with




1864.]

27

Commercial Chronicle and Review.

any banks. It has been, however, proposed by the controller, in order to
disarm opposition on the part o f the New England banks, that the rate
o f interest should be made uniform at 7 per cent.
This would be an
advance o f 1 per cent on the rate for those banks, but the taxation is
likely to leave them no better than before. A ll these disturbing elements
in the markets have been against the free circulation o f capital, and have
therefore tended to raise the rate o f interest.
The continued and regular demand for Government stocks has aided
in forcin g upon the banks a contraction o f loans. A greatly dim inished
action was apparent in the stock market, causing prices to decline. There
were also a quantity o f stocks returned from Europe for sale. They had
been sent thither during the rapid rise in bills, but had not found buyers.
The Government stocks, however, maintained firm rates as fo llo w s :
P R I C E S U N IT E D S T A T E S P A P E R .
ft.

•
January 3,. .
u
10...
a
17,..
a
24, .
n
31,. .
February 7 ,.
it
14,..
U
21...
It
28,..
March
7 ,..
14,..
(4
21,..
44
28,. .
April
4 ,.
“
11,. .
44
18,..
“
25,..
9
May
9,. .
“
16,..
44
23,..
44
30,. .
6 ,..
June
13,..
20...
“
“
27,..
July
11,..
18,..
44
25,..
August 1,- .
“
8,..
44
15,. .
44
22,..
29*.'.
Sept.
5...
“
12,. .
44
19,..
44
26,. .
October' 3,..
u 10,..
“
17,..
u
24,. .
44
31,..

6’s,188l.—i
1 vearcertif.
7 3-10,
Reg. Coup. 5’s, 1874, 3 years.
New.
Old.
964
98
88*
96*
102*
98
90
97*
103
97
91f
91*
88*
95
101
96
95
96
90
102
86
92*
94
94
101*
92
93*
85*
94
102
94
96
96
87*
102*
96*
97*
91*
103*
95
100*
102*
97
98*
105*
99*
100*
94*
105
98*
104*
104*
98
106*
100
104*
103*
96
100
107
104*
105
96*
100
106*
104*
105
97*
104*
99
104*
105
105
97*
100*
104
105
96
105
101
105
105
106
99£
96
102
106|
1 0 6 '*
106*
97*
102
99*
106
106
107
97
101*
99*
108
108
101*
107
99*
97*
198*
108*
107*
101*
99*
97*
108
108
97*
99*
107
iei*
108*
104
101*
99
107
97*
104*
108*
99
106
98
101*
103*
108*
98*
106
101
98*
102
98
.100*
107*
104
97
104*
100*
98*
105
97*
106
104*
106
98
101
99
106*
105*
106*
100*
97
106*
98*
105*
101
104*
106*
99*
96*
105*
106*
96*
101
99*
106*
105*
105*
97
106*
101
94»f
101*
99*
106
107*
97
107
106
95
101*
99*
107
107
106
106
95
100*
106
99*
106*
105
106
101
99*
95
106*
106
96
101*
106*
99*
106*
106*
101*
99|
106*
96
106*
99*
95
106*
101*
107
108
106*
99*
107*
97
101*
109
106*
102*
99*
107*
97
108
98
102
110
99*
107*
98*
102
108*
107*
. . .
99*




August
demand

notes.
3 4 * a 34* 29
35
37* a 38
49 a 46* 43
47 a 48* 44*
55 a 60* 63
57* a 67* 56
53* a 5 3* 51
53* a 64 • 62
71 a 71* 71
53
52* a 53
54* a 54* 53
54* a 54*
41 a 41*
53 a 53*
46 a 52*
53 a 53*
151* a 151*
150 a l5 0 *
152* a 152*
149 a 149*
148* a 149
144* a 144*
146 a 146*
148 a 148*
142* a 143*
146* a 146*
132* a 132*
125 a 125*.
126 a 126*
128* a 127
126* a 127
125 a 125*
124* a 125
124* a 124
132* a 133
128 a 129
133* a 133*
1 3 9 * a 139*
142* a 142*
146* a 147
151* a 152
145* a 146
146* a 146*
Gold.

38

Commercial Chronicle and Review.
,— 6’a, 1881.— *

Nov.
*‘
“
Dec.

4

“
«<

E«g.

i,..
14...
21,..
27,. .
5,. .
12,. .
19,. .
26r .

108
1084
108
108
104
1041
1041
1041

7 8-10,
Coup. 5’a, 1874. 3 years.

109
109
108}
100
109
109
109}
110

98
971
98
98
98
98
98
99

107
1061
1061
1061
1061
1064
1061
106f

1 y^eareertif.
Old.
New.

1014
1011
102
1011
101}
102
1021
1021

981
981
98
98
98
98
98J
98

[January,

G old.

August
demand
n«tes.

147f a 1471
1461 a 147
150 a 160}
143 a 1441
1521 a 1521
150} a 150}
151} a 1511
1511 a 152

••
..
••
••
..
••

The five-twenties, for w hich a steady demand was sustained, sold at
par with the accumulated interest. There were some sales o f 5 per cent
Texan Indemnity stock, which, to the extent o f $3,400,000, matures Jan­
uary 1, 1865, and which will be paid in gold at $1 25.
The one-year
certificates, payable in gold, are maturing, and are replaced by the “ new ”
certificates payable in paper. A ll o f the former will have inatured by'
the 3d o f March. The interest on the Government stocks payable'January 1, amounts to about $3,500,000, and the Treasury holds about
$11,000,000, which, with the customs receipts, which average $1,000,000
per week, will suffice to meet the interest on the 1st, the maturing interest
oh the one-year certificates, and the interest on the 7.30’s due Feb. 19.
The importations at the port o f New Y ork for the month o f N ovem ber
were much larger than for the corresponding month last year, and the
quantity put upon the market was nearly 75 per cent m ore than in that
year, and nearly three times as much as in the previous year. The r e ­
turn is as follow s:
IM P O R T S, P O R T

Specie.

OF

NEW

YORK.

/----------- Entered tor------------»
Free goods. Consumption. Warehouse.

Total.

January.................
$101,906 $2,413,649 $8,741,227 $4,482,794 $15,789,676
213,971 783.861
7,372,539
3,657,775 12,037,846
February.....................
M arch ....................
123,616
1,328.806 11,461,572
3,454,530
16,370,524
April............................
107,061 1,328,216
9,493,830
6,456,208 17,386,315
M a y ............................
197,217 710.021
7,980,281
5,437,404 14,324,923
J u n e ............................
109,997 780,963
6,328,581
5,377,885 12,597,426
J u l y ............................
182,245 683,880
9,080,210
4,227,265 14,173,600
A u gu st........................
113,877 509,781
10,804,580
4,409,891 15,038,129
September..............
78,231
786,864
11,203,535
3,431,310 15,499,940
October..................
78,053
741,888 11,885,569
4,189,457 16,894,967
N ovem ber..................
103,144 665,207
10,326,929
4,950,415 16.045,695
Total 11 months $1,409,318 $10,732,926 103,87S,863 $54,467,382 $170,488,479
“ 1 8 6 2 .... 1,311,961 21,341,121 97,652,911 41,273,706 161,579,699

The quantity put on the market is represented by the amount entered
for consumption and that drawn front warehouse. The former for the
month was $10,826,929, and the latter, $4,084,183— together, $14,411,112
against, in the same month last year, $8,480,168, an increase o f $5,930,944.
A considerable portion o f this increase was com posed o f cotton, w ool,
hides, and other raw material which had entered largely into consum ption
through the short supplies o f Southern cotton. That article is not only
imported from East India and elsewhere in considerable quantities, but
wool, flax, linen, etc., are also in large demand as substitutes for cotton.
The reduced stocks o f goods and their advanced prices had stimulated the
demand for raw materials, which had swollen the amount while they had




1804 .]

Commercial Chronicle and Review,

29

changed the character o f imports. The receipts from customs duties have
been large for the month, reselling $5,075,840, and are about 38 per cent
average.
The exports from the port for the month o f N ovem ber are less than
last year in nominal amount by $2,500,000, and in actual value $3,000,000,
arising m ostly from the decline in the exports o f breadstuff's, o f which
the hom e demand sustains the price above the export level. The exports
have been as follows :
EXPORTS, PORT

January...................
February.................
March......................
A pril.......................
M a y ........................
J u n e .......................
J u l y .......................
August.....................
Septem ber.............
O cto b e r.................
N ovem ber.............
Total 11 months
“
1 8 6 2 ....

Specie.
$4,624,574
3,965,664
6,385,442
1,972,834
2,115,679
1,367,774
5,268,881
2,465,361
3,480,385
6,210,156
5,438,363

OF

NEW

YORK.

.-------- Foreign.---------.
Free.

$73,111
43,889
213,685
74,949
101,337
49,380
77,232
90,813
55,400
145,325
66,534

Total.

Dutiable.

Dom estic.

$668,275
610,009
758,266
375,224
602,254
298,067
448,601
231,774
,238,972
350,614
383,948

$14 829,398
17,780,586
16,137,689
11,581,933
13,183,510
14,780,072
15,298,073
10,666,959
11,717,761
14,513,454
11,413,591

$19,695,351
22,40(1,148
23,695,082
14,004,940
16,002,780
16,495,293
21,092,787
14,454,809
15.492,518
21,219,649
17,292,486

$44,495,013 $986,657 $4,966,004 !$151,403,026 $201,846,700
55,763,909 2,745,359
4,548,481 1> 4,374,4 79 197,432,228

The imports and exports for the month indicate the follow ing results
in respect to the specie balance:
Im ports............................
Exports.............................
Price, s p e c ie .................
Specie value o f exports
Excess im ports..............
Specie exports..............

1862.

1863.

$10,309,393
14,390,691
133
10,793,018

$16,045,695
11,854,673
150
7,902,715
8,142,980
5,438,363

6,213,251

This considerable adverse balance was in some degree met by sterling
from N ew Orleans and from California. There was, however, on one hand
a hesitation about remitting specie, under the impression that its priee
would fall, and, on the other, it was supposed that the demand for the
metal abroad would raise its price. The shipment was as follows :
S P E C IE

AND

T R I C E OK O O L D .

,--------- 1 8 6 2 .---------- , .--------------- ------------- 1 8 6 3 .

Received.

January 3.
“
<«
(<
<<

10.
17.
24.
31.
February 7.
“
14.
((
21.
“
28.
March
7.
tt
14.
it
21.
it
28.

885,928

...........

627,767
854,000
614,146
759,247
741,109
679,074
677,058
490,368




Exported.
Received.
442,147
1.035,025 1,277,788
547.703
322,918
678,841
310,484
801,860
976.235
1,156,154
359,978
934,512
510,774
285,394
585,236 1,243,551
477,335
640,968
249,514
779,564
159,105

Exported. Gold in bnnk. Prein.ongold.
681,448 35.954,550 34^a34-J
726,746 36,770,746 34 a 39
1,380,247 37,5S1,465 40 a 49
780,816 38,549,794 47 a oOf
1,331,027 38,894,840 4 8 | a 6 0 i
1,277,000 38,243,839 6 7 | a 5 7 i
1,152,846 38,426,460 534 a 584
520,017 37,981,310 54 a 64
1,377,016 39,512,256 71 a 72
733,643 39.705,089 524 a 53
3,540,550 36,110,085 54|a 544
1,201,907 33,955,122 53 a 544
1,050,156 34,317,691 41 a 42

80

Commercial Chronicle and Review.

---------1862.
Received.
April
4.
581,293
n .
IS.
617,279
it
25.
635,546
May
2.
410,804
U
9.
484,019
“
16.
604,682
ti
23.
501,204
“
30.
224,911
June
6.
553,035
“
13.
352,391
“
20.
612,461
u•
27.
393,212
July
4.
it
11 .
641,451
<(
18.
441,179
“
25.
August
1.
G. Gate lost.
8.
964,422
15.
tt
22. 1,089,111
«<
29.
5.
Sept.
807,063
“
12.
“
19.
934,415
“
26.
758,286
October 3.
it
10.
807,616
«(
17.
ti
24.
768,121
“
31.
Nov.
7.
“
14.
708,731
u
21.
921,207
“
28.
Dec.
5.
735,112
ti
12.
“
19.
it
Ariel.
26.

Exported.
673,826
1,505,728
693,436
1,151,300
712,275
1,574,166
1,093,031
938,032
881,452
1,647,299
1,990,327
3,156,988
3,094,101
2,647,060
2,424,916
1,846,023
784,537
748,523
890,552
700,431
919,825
1,137,644
551,097
1,042,S35
490,865
996,892
713,075
2,255,513
1,714,551
2,024,380
351,547
711,606
1,894,708
2,458,529
797,360
1,469,087
874,296
999,438
286,880

Received.
260,778
260,72S
217,602
256,604
205,057
258,570
318,066
187,082
254,947
270,182
313,612
231,854
279,043
193,584
277,880
268,282
267,911
547,338
281,340
261,730
265,101
305,650
297,899

[January,

------------- 1863.-----------------------------"Exported. Gold in bank. 1’rem on gold.
473,885 84,257,121 53 a 54
607,059 35,406,145 4 « a52-i
158,437 36,761.696 52 a63^
629,855 37.175,067 47 a 5 1 }
294,998 36,846,528 48 a 50-J
451,827 8S, 102,633 5S-£ a47
661,996. 38,556,552 49 a 49£
438,745 88,544,865 4 8 f a 49
279,994 37,632,684 44£ a 44-£
411,483 37.241,670 46 a 4 6 j
235,364 37,884,128 48 a4 8 f
522,147 38,314,206 42 a 4S-J
134,432 3S,271,702 46 a 4 6 f
347,807 38,302,826 44 a44-i
401,936 88,712,397 3 2 ia 3 2 |
2,190,781 38,254,427 23 a28£
1,725,748 35,910,227 26 a 264
480,374 83,746,681 2 8 f a 29
630,044 33,156,548 26^ a 27
1,210,230 32,874,913 25 a 25^
238,398 31,520,499 24i a 25
1,379,710 32,030,055 24J a 24J
309.799 31,989,381 32^ a 33
852,752 32,018,107 28 a 29
535,796 31,014.411 32-J- a 33
1,411,611 80,008,566 39 a39J
803,583 30,064,614 42ia42-|
2,555,656 29,927,281 4 6 fa 4 7
1,206,950 28,382,473 •51§ a 52
1,243,273 28,804,281 4 5 f a 46
685,302 28,124,921 46| a 46-^
646,017 28,783,281 47 | a4 7 *
395,796 29,177,849 47 a 47 J
1,006,907 28,054,514 4 6 1 n 5 4 %
1,331,057 27,555,175 4 8 a 49
1,771,021 27,099,695 48J a 484
1,409,455 26,439,354 48 \ a 51
1,466,497 25,789,860 49^ a 5 iy
730,806 25,541,603 51| a52J

T o t a l.. . . 10,171,916 43,237.818 11,037,229 49,882,515

This return d o e s n o t include $20,000,000 sent on French account to
M exico. The outward current, however, strengthened as the year drew
to its close. The demand for the custom-house, which was about one
m illion per week, was to some extent met by the payments o f gold in­
terest on maturing one-year certificates.
There were also some receipts
o f coin from N ew Orleans, from California, and from the interior ; hence
the bank account showed a slower decline in specie than the large export
would indicate.
The rise in the rate o f interest abroad, being 9 @ 10 per cent in L on ­
don, and the uncertainty o f the future caused a desire to buy short bills,
and the rate ranged
@ 2 per cent higher than for 60-day bills.
The demand for sterling was steady, and as the speculative action sub­
sided and the market worked clear o f bills held for speculation, and which
generally bring somewhat less than newly drawn bills', the rates became
m ore firm, as follows :




Commercial Chronicle and, Review.

1 8 6 4 .]

RATES

London.

Jan. 3,
10,
“ 17,
“ 24,
it
31,
Feb ■ 7,
a
14,
21,
“ 28,
Mar ■ 7,
“ 14,
K 21,
“ 28,
A pril4,
“ 11,
“ 18,
“ 25,
May■
9’
it 16,
“ 23,
30,
June 6,
i< 13,
“ 20,
“ 27,
July 11,
K 18,
“ 25,
Aug 1,
U
8,
it
15,
a
22
a
29’,
Sept. 5,
(( 12,
19,
26,
Oct. 3,
“ 10,
ii
17,
“ 24,
“ 31,
Nov•. 7,
(i 14,
i< 21,
“ 23,
Dec:. 5,
It
12,
“ 19,
“ 26,

Paris.

140 a 1474 3 . 85 a 3 .80
149 a 152 3 .724 a g .674
160 a 162 3.■524 a 3 .45
102} a 163 3 .50 a 8,.45
171 a 177 3,.32 a 3. 15
169 a 173 3 .30 a 3..25
n o a 171 3 .32 a 3 .27
171 a 1794 2,.20 a 3 12
185 a 188 3 .10 a 3 .60
167 a 169 3 .374 a 3 .30
168 a 171 3 .36 a 3,,30
160| a 1714 3. 374 a 3..274
157 a 161 3 .57 a 3 .47
168 a 172 3..40 a 3.,25
153 a 162 3.,55 a 3..45
165 a 1674 3.,374 a 3. 45
163 a 165 3. 474 a 3. 50
163 a 165 3. 474 a 3. 42
168 a 170 3 .424 a 3. 32
1624 a 164 3,,60 a 3.,45
161 a 163 8. 52 a 3. 45
1564 a 158 3. 624 a 3 55
1584 a 160 3. 574 a s. 524
156 a 161 3 ,55 a 3 . 47 4
155 a 157 3..62 a 3 ■574
159 a 1604 3 .55 a 3 .50
143 a 146 3 .95 a 3 . 85
138 a 139 4 .07 a 4 .02
138 a 139 4 .10 a 4 .05
140 a 141J 4 .064 a 4 .00
1394 a 1404 4 .06 a 4 .00
1374 a 1384 4 . 1 2 4 ■a 4 .08$
1374 a 1384 4 . 1 2 4 a 4 .08$
1354 a 1364 4 .10 a 4 .15
141 ~ a 147 4 .00 a O 90
142 a 1444 3 .924 a 4 .00
146 a 1474 3 .874: a 3 .83
151 a 1524 3 .774 a 3 ■714
1544 a 1574 3 65 a 3 .57
1 0 0 4 a 162 3 .55 a 8 .484
168 4 a 172 3 . 33| a 3 . 2 7 4
158 a 159 3\ 564 a S,. 5 1 4
1584 a 159| 3..69 a 3 . 5 2 4
161 a 163 3..514 a 3 46$
161 a 162 3. 524 a 3..474
168 a 4694 3, .364 a 3, 324
157 a 158 3..624 a 3..564
160 a 1614 3 .50 a 8 .46
164 a 165 3,.45 a 8. 41
164 a 166 3 . 45 a 3 .40
1654 a 1664 3 ■484: a 3 .40

31

OF EXCHANGE.

Amsterdam. Frankfort.

66 a 664
56 a 58
604 a 614
61 a 614
654 a 6 6 4
65 “ a 654
65 a 6 6 4
67 a 6 8 4
674 a 71
64 a 64
64 a 64
634 a 634
61 a 62
624 a 634
61 a 62
624 a 62$
61 a 614
614 a 6 2 4
624 a 63
614 a 62
61 a 614
59$ a 604
59$ a 6 I 4
694 a 61
5S4 a 59
59$ a 604
54 a 544
514 a 52
51$ a 524
524 a 58
524 a 524
514 a 52
51$ a 6 2 i
51 a 514
524 a 564
53 a 5 3 4
544 a 55
564 a 0 6 $
58 a 59
604 a 61
634 a 64
59$ a 6 U4
59 a 60
61 a 6 1 4
60$ a 614
62 a 63
59 a 604
604 a 61
61$ a 62
624 a 62
624 a 62$

66 a 564
574 a 584
61 a 624
614 a 62
65 a 67
65 a 654
65 a 654
68 a 6 8 4
70 a 71
65 a 66
644 a 654
634 a 641
61 a 62
624 a 64
61 a 62
624 a 63
614 a 62
6 I 4 a 624
624 a 634
61$ a 624
614 a 62
60 a 604
60 a 604
60 a 614
584 a 694
60 a 60$
54 a 554
60 a 624
51$ a 524
524 a 534
52$ a 52$
52 a 524
62 a 524
214 a 51$
524 a 524
534 a 54
544 a 554
56$ a 57
584 a 594
6 O4 a 614
64 a 644
60 a 604
60 a 604
614 a 62
61 a 614
63 a 634
59$ a 604
61 a 614
62 a 624
624 a 63
624 a 63

Hamburg.

494 a 4 9 4
604 a 5 1 4
54 a 5 5 4
54 a 5 4 $
57 a 58$
57 a 57$
56$ a 574
69 a 604
61$ a 6 2 4
55 a 554
55$ a 56$
56 a 57
53 a 54
554 a 67
534 a 544
544 a 554
53$ a 54$
584 a 544
554 a 564
54' a 55
54 a 544
524 a 53
62$ a 534
624 a 54
61 a 52
524 a 52$
474 a 484
464 a 46$
454 a 46$
464 a 474
464 a 47
454 a 46
45$ a 454
45 a 45-4
4 64 a 48
47 a 48
48 a 4 84
494 a 50
514 a 524
53 a 534
56 a 564
53 a 63$
524 a 53 4
53 a 54
53 a 53$
65 a 56
514 a 5 2 4
534 a 54
65 a 554
554 a 55$
554 a 55$

Berlin.

a 984
a 100
a 110
a 108$
a 117
a 116
1 1 3 4 a 1144
•1184 a 1194
123 a 124
111 a 118
112 a 114
113 a 114
107 a 108
111 a 111
106 a 108
108 a 110
107 a 108
107 a 108
110 a 112
107 a 109
107 a 108
1044 a 106
105 a 106
104 a 107
103 a 104
1064 a 107
94 a 96
.92 a 93
91 a 92
924 a 93$
92 a 92$
9 U a 92
904 a 911
90 a 91
954 a 964
934 a 944
95$ a 97
99 a 100
103 a 104
1064 a 1074
1 1 1 4 a 113
105 a 106
1051 a 1064
106 a 108
1064 a 1064
110 a 1 1 1 4
105 a 1064
107 a 108
109 a 109$
109 a 1 1 0 4
n o a 111
98
99
108
107
114
114

The position o f the Bank o f France and other institutions in Europe
indicate that a demand for gold would arise o f a character which would
diminish here the g old price for hills.




32

Journal o f Banking, Currency, and Finance,

[January,

JOURNAL OF BANKING, CURRENCY, AND FINANCE.
BASK RETURNS AM) BASK ITEMS,
C ity B a n k R etu rn s .— The bank returns are im proving, the loans hav­
ing very greatly decreased, and the banks reached a position o f greater
safety.
Still the, m oney market is very stringent. This is undoubtedly
ow in g in part to the high rates paid in England and on the* continent.
The loans in the New Y o rk city banks have decreased thirty-four mil­
lions since O ctober 17th, and the deposits about forty-five millions since
September 19 th.
Below will be found our usual returns for the three eities, brought
down to the latest dates :
NEW

N ew Y ork B anks. (Capital,
Date.
Loans.
January 3 ,___
$173,810,009
u
1 0 ,....
175,816,010
tt
17........
176,606,558
‘24........
179,288,266
“
81........
179,823,501
February 7 , . . . .
179,892,161
((
14, . . .
178 103.592
“
17 8,335,880
21........
U
179,958,842
2 8 ,....
181,098,322
March
7 ,....
“
177,875,949
14........
<(
173,829,479
21........
44
172,448,526
28,___
173,038,019
April
4 ,....
170,845,283
11,----<t
169,132,822
18........
*<
171,079,322
25........
May
177,364,956
2........
180,114,983
9........
“
180,711,072
16........
“
181,319,851
28,___
4<
181,825,850
SO........
182,745,080
6........
June
fl
180,808,823
13,___
177,083,295
20........
“
175,682,421
27........
Julv
174,337,3S4
4........
175,022,768
11........
44
173,126,387
1 8 ,,...
“
178,036,336
2 5 ,....
August
176,208,597
1...............
176,559,840
8........
•<
15,___
175,305,471
“
175.713,139
22........
u
176,748,618
29........
5,___
Sept.
178,477,037
U
200,028,980
12...............
((
19........
207,679,456
II
26........
204,501,984




YORK

BANKS.

Jan., 1803, §69,494,577 ; Jam.,1862, $69,493,577.)
Circulation. Net Deposits.
Specie.
Clearings.
$35,954,550 $9,754,355 $159,163,246 $186,861,762
36,'<70,746 9,551,563 162,878,249 249.796,489
37,581,465 9,241,670 164,666,003 314,471,457
'38,549,794 9,083,419 168,269,228 298,861,366
38,894,840 8,906,110 169,951,376
33,243,839 8,780,154 166,342,777 802,362,571
38,426,460 8,756,317 167,720,880 265,139,104
37,981,310 8,752,536 170,103,768 291,242,929
39,512,256 8,739,969 173,912,695 840,674,444
39,705,089 8,693,175 174,689,212 844,484,442
36,110,085 8,657,016 172,944,034 307,370,817
33,955,122 8,609,723 167,004,466 277,831,351
34,817,691 8,560,602 163,363,846 281,326.258
34,257,121 8,348,094 160,216,418 287,347,704
35,400,145 8,178,091 159,S94,73I 264,468,080
36.701,696 8,039,558 164,122,146 259,417,565
37,175,067 7,555,549 167,863,999 25S,654,7S1
36.846,528 7,201,169 167,696,916 355,657,732
33,102,633 7,OSO,565 163,656,513 367,560,731
38,556,642 6,901,700 168,879,130 353,346,664
38,544,865 6,780,678 167,655,658 380,304,748
37,692,634 6,494,375 166,261,121 307,680,918
37,241,670 6,841,091 162.767,154 289,757,539
37,884,128 6,210,404 159,551,150 302,377,276
38,314,206 6,120,252 157,123,301 259,483.221
38,271,702 6,004,177 168,539,308 264,819.856
38,302,826 5,998,914 158,642,825 267,785,773
38,506,395 5,927,071 160,733’,496 319,945.652
38,254,427 5,880,623 163,319,544 251,188,769
35,910,227 5,775,188 164,133,54 9 284,684,421
33,746,681 5,700,452 161,173,146 292,211,821
3?,r 6,548 5.706,024 155,868,116 297,384,006
32,874.913 5,613,177 155,950,04 3 298,936,160
S 1,520,4 9 9 5,545,970 156,588,095 373,755,630
32,080,055 5,475.964 156,671,695 392,404,680
31,989.381 5,456,016 158,110,687 394,814,312
32,018,107 5,457,366 178,538.622 371,510,559
31,014,411 5,414,643 185,570,199 343,263,949
30,008,506 f),3Y78 8 6 186,080,773 854,208,025

18G 4,]

Date.
October 3........
“
10........
17........
“
24........
it
31........
Nov.
7,___
t<
1 4 ,....
it
21........
it
28........
Dec.
5 ,___
“
12........
It
19........
U
26........

Loans.
206,412,874
206,906,903
206,638,749
204,013,870
203,222,418
193,436,841
182,044,530
176,702,428
173,515,860
172,957,251
172,685,406
173,492,886
172,688,163

Specie.
30,064,614
29,927,281
28,382,473
28,804,915
28,124,921
28,783,281
29,177,049
28,054,514
27,565,175
27,099,695
26,4 38,854
26,789,860
25,541,603
B O S TO N

Boston B anks .

Date.
Jan. 5 ,..
“ 12 ,..
u 1 9 ,..
“ 2 6 ...
Feb. 2 ,..
**
9 ,..
“ 16 ,..
2 3 ...
Mar., 2 ,..
9 ,..
it
1 6 ,..
»< 3 0 ...
A p r ils ,..
*« 13 ,..
It 2 0 ,..
44
2 7 ,..
May 4 , . .
44

li,..

18,..
2 5 ,..
Jane 1 ...
“ 8 ,..
15...
“ 2 2 ...
44
2 9 ,..
Julj■ 6 ...
13,..
M 2 0 ,..
44
2 7 ,..
Aug. 3 ,..
44
10,..
•4 17...
44
2 4 ...
« 31,..
Sept. 7 ,..
“ 14,..
44
2 1 ...
44
2S,..
Oct, 5 ,..
12,..
44
1 9 ,..
44
2 6 ...
Nov. 2 ,..

“

33

Journal o f Banking, Currency, and Finance.
Circulation.
5,376,586
5,522,178
5,618,764
6,799,097
5,971,733
6,100,335
6,095,932
6,122,379
6,126,411
6,178,414
6,166,077
6,139,301
6,125,172

Net Depostis.
182,653,494
180,037,283
178,050,317
172,487,596
171,176,254
159,499,193
151,770.498
145,248,846
139,64 5,665
138,195,914
140,015,995
141,543,939
139,660,287

Clearings.
375,032,633
399,288,092
427,981,203
469,175,466
443,205,885
459,438,709
441,451,540
400,676,757
390,824,960
466,633,841
394,140,168
413,646,071
344,355,135

BANKS.

( Capital, Jan., 1883, $38,281,*700 ; Jan., 1862, $38,231,700.)

Loans.
$77,339,046
7 7,427,173
76,624,700
76,354,000
76,496,800
78,421,000
78,431,000
78','782,600
79,127,500
79,274,700
79,636,134
77,935,000
76,933,600
74,551,018
73,459,160
73,558,000
73,218,155
73,062,789
73,068,598
72,874,000
73,424,000
73,592,000
73,237,000
78,351,000
78,421,084
73,548,918
73,485,675
73,421,000
72,850,716
72,390,364
71,997,503
71,860,-078
71,447,520
71,478,116
71,717,995
75,599,232
79,595,740
78,368,387
77,798,427
78,160,899
78,216,435
78,746,728
79,378 840




Specie.
$7,672,028
7,751,000
7,710,600
. 7,710,700
7,685,000
7,707,000
7,794,000
7,624,u00
7,553,000
7,5S2,000
7,609,238
7,572,600
7,703,800
7,812,895
7,799,815
7,838,800
7,854,731
7,847,849
7,794,046
7,777,000
7,751,000
7,738,557
7,730,000
7.697,000
7,683,987
7,744,S27
7,774,991
7,684,000
7.811,513
7,793,916
7,798,276
7,813,497
7,780,905
7,752,516
7,637,402
7,591,689
7.595,358
7,707,106
8,042,062
7,991,999
7,880,832
7,850,547
7,841,33'

Circulation.
$8,190,496
8,373,000
8,199,600
8,008,500
8,865,000
8,074,000
8,001,000
8,002,000
8,001,980
8,225,000
7,780,062
7,593,800
7,963,500
7,762,915
7,278,506
7,040,000
7,433,496
7,688,233
7,167,327
7,011,700
6,913,000
7,030,286
7,109,000
7,344,500
7,040,624
7,473,800
7,508,442
7,401,500
7,246,797
7,317,402
7,440,212
7,198,917
7,303,757
7,227,704
7,527,036
7,600,556
7,604,161
7,620,371
8,107,720
8,399,769
8,323,451
8,086,072
8,606,626

Due
Deposits.
to banks.
$33,372,648
83,063,800 17,006,000
33,362,000 16,547,800
33,847,000 16,811,700
34,076,800 16,889,000
35,178,600 16,932,000
34,903,000 J7,070,7i 0
34,965,500 17,331,000
35,245,500 17,523,500
35,215,000 17,340,400
32,955,149 17,230,300
31,604,500 17,074,400
82,687,060 15.444,000
32,494,822 14,557,000
83,209,742 14,132,000
32,781,500 13,303,000
31,949,762 13,237,700
31,309,985 13,147,000
32,192,770 12,863,500
33,000,000 12,787,000
32,575,000 12,735,000
31,728,285 12,626,700
31,477,600 12,285,500
81,355,800 12,504.600
81,477,596 12.388,000
31,509,263 12,233,000
30,277,502 12,193,000
29,287,000 13,802,000
28.011,571 12,950,000
28,384,096 12,655,000
28,247,266 12,822,678
27,898,073 12,766,527
27,510,154 12,662,321
27,762,955 12,614,000
28,778,498 12,379,000
31,143,588 13.424.0C0
34,509,214 13,565,000
34,495,540 13,315,000
85,435,811 13,498,000
35,734,989 13,909,500
36,127,697 13,506,500
36,682,299 13,909,500
36,775,102 13,881,000

Duo
from banks.
13,520,000
13,727,700
13,958,000
14,490,000
14,188,000
14,095,500
14,583,800
15,004,000
14,446,500
13,484,509
11,601,300
12,280,600
12,947,800
12,658,000
11,966,700
11,622,600
11,800,000
11,782,000
11,748,000
10,704.500
10,874,700
10,541,000
10,914,700
10,900,000
10,891,000
10,712,000
10,154.600
9,864,800
9,646,000
10,185,180
9,603,257
9,578,673
9,820,500
10,874,700
11,097,000
11,487,500
12,138,000
13,7 65,600
14,123,700
13,967,000
14,123,700
12,206,000

Journal o f Banking, Currency , and Finance.

34
Date.

“
“

9 ,..
16,..

“

2 3 ,..
30 ,..
Dec. 7 ,..
« 14,..

“

“

21,..

Loans.
78,554,017
76,412,358
75,544,964
75,612,363
74,741,227
75,251,334
74,848,297

Specie.
Circulation. Deposits.
7,975,057 9,527,161 34,557,547
7,908,760 9,618,158 33,165,071
7,794.227 9,436,925 32,960,173
7,729,70S 9,745,094 32,866,287
7,728,551 10,620,994 31,635,785
7,659,676 9,733,910 31,036,733
7,573,741 9,704,087 31,391,629
P H IL A D E L P H IA

P h iladelph ia B anks .

Loans.
Date.
Jan. 5 ,.. $37,679,675
37,533,757
“
1 2 ,..
37.416.894
“
19,-“
2 6 ,... 37,479,712
37.265.894
Feb 2 , . . .
87,836,367
“
“
1 6 ,... 37,710,851
37,720,4 60
“ 2 3 ,...
Mar. 2 , . . . 37,901,080
“
9 , . . . 33,603,871
“ 1 6 ,... 39,260,028
“ 2 3 ,... 39,45S,384
“ 3 0 ,... 33,937,612
Apr. 6 , . . . 37,516,520
“ IS ,--- 36,250,402
“ 2 0 ,... 36.295.644
“ 2 7 ,... 36,482,058
May 4, . . . 36,587,294
“ 1 1 ,... 36.593.179
“ 1 8 ,... 36,887,301
“ 2 5 ,... 37,116,093
June 1 , . . . 37,143,987
“
?, . . 37,157^769
June 1 5 ,... 37,228,627
“ 2 2 ,... 37,219,216
“ 2 9 ,... 37,250,665
July 6 , . . . 35,936,811
“ 1 3 ,... 34,866,842
“ 2 0 ,... 84,662,966
July 2 7 ,... 34,517,347
Aug. 3 , . . . 34.390.179
“ 1 0 ,... 34,645,243
“ 1 7 ,... 35.390.179
“ 3 1 ,... 35,296,376
35,773,596
Sept- 7,.
“ 14,,
39,575,410
it 21,.
40,175,698
Cf 28,.
39,485,313
38,798,830
Oct. 5,.
“ 12,.
39,046,434
tt 19,.
38,833,337
« 26,.
38,683,057
39,180,421
Nov. 2,
38,647,125
“
9,
37.376.645
“ 16,
“ 23,
37,236,183
35,583,624
“ 30,
36.414,704
Dec.
“ 14,
35,798,343
“ 21,
35,696,114




Due
to banks.
12,668,000
11,726,600
11,198,600
11,640,300
11,905,500
11,905,500
12,371,000

[January,
Duo
from banks.
12,172,000
12,069,000
11,743,600
12,420,000
12,230,000
12,280,000
12,457,000

BANKS.

(Capital, Jan., 1863, $11,740,080; 1862, $11,970,130.)
Due
Duo
to banks, from banks.
Specie. Circulation.
Deposits.
$4,610,750 $4,504,115 $28,429,189 $6,948,785 $1,994,928
4,544,786 4,450,676 28,018,792 6,890,963 1,848,932
4,549,369 4.382.520 27,877,069 7,050,847 2,275,905
4,572,419 4,284,947 28.773.517 6,755,980 2,638,985
4.562.550 4,181,503 29,231,753 6,698,210 2,909,857
4,319,706 4,039,918 28.062.164 6,953,215 2,518,036
4,272,347 8.88S,185 28,759,049 7,452,568 2,482,073
4,276,761 3,772,781 29,342,596 7,413,249 2,703,196
4,267,626 3.696.097 30.178.518 7,185,670 2,758,852
4,249,035 3,608,870 30,679,259 7,100,258 2,499,139
4,247,817 3,534,880 30,549.587 7,476,603 1,939,449
4,247,688 3,295,862 30,106,135 7,41S,4S2 1,985,014
4,311,704 3,369,194 29,171,283 6,504,758 2,158,007
4,339,252 3,374,417 29,531,559 5,768,558 2,770,129
4,343,242 3,296,685 30,117,527 5,953,819 3,014,229
4,343.988 3,1S5,042 31,059,644 5,306,809 3,018,727
4,346,377 3.078.921 31,021,799 5,448,124 2,559,868
4,355,324 2,989,428 30,859,231 6,328,898 2,891,087
4,359 365 2,901,600 30,949,781 4,975,939 2,542,792
4,357,119 2 , 866,121 31,892,308 4,640,623 2,536,279
4.357,169 2,808,109 32.455.953 4.623,392 2,480,714
4,357,021 2,706,953 31,888,763 4,707.27S 2,363,548
4,357,076 2.649.283 31,549,339 4,645,712 2,318,744
4,357,025 2.621.098 31,648,969 4,914,425 2,892,278
4.356.744 2,596,115 31,293,830 4,868,496 2,065,918
4,359,543 2,556,855 31,466,204 5,116,692 1,820,600
4.360.745 2,564,558 28,504,544 5.060.096 1,961,814
4,360,003 2,507,253 28,701,813 4,784,343 2,530,552
4,361,999 2,482,986 29,931,608 4,680,322 2,981,867
4,227,448 2,418,463 30,448,430 4,805,045 3,034,009
4.187.056 2,417,739 30,799,448 4,963,290 2,772,717
4,112,013 2,380,720 30,513,961 4,740,891 2,538,096
4,112,542 2,353,396 29,959,127 5,161,573 2,158,440
4,113,309 2,292,607 30.195.167 4,551,031 2,219,071
4,113,162 2,258,306 30,654,672 4,574,037 1,997,534
4,103,115 2,223,533 33,626,702 4,997,015 1,801,678
4,102,701 2,224,632 33,039,035 5,079,742 1,802,889
4,116,683 2,224,374 32,402,783 4,616,754 1,822,228
4,227,265 2,193,000 32,258,554 4.427.097 1,976,561
4.239.551 2,169,314 32,536,502 4,446,684 2,035,819
4,238,677 2,159,638 32,684,915 4,361,072 1,926,707
4,238,519 2,123,617 32.605.953 4,337,835 1,911,956
4,164,804 2.106.284 31,805,965 4,697,888 1,943,382
4,167,671 2.109.521 30,812,091 4,336,929 2,051,061
4,158,8S4 2,089,990 30,732,600 4,076.614 1,925,700
4,155,768 2,085,634 30,186,124 4,050,351 2,000,333
4.166.057 2,09S,512 29.662.167 8.933,696 2,203,019
4,165,939 2,104,174 29.374.165 8,859,130 1,923,878
4,167,144 2,096,106 28,937,137 4,205,599 2,106,832
4,173,206 2.077.921 29,419,486 4,228,958 2,170,269

1864.]

35

Journal o f Banking, Currency, and Finance.

The follow ing is a statement o f the amount o f United States legal tender
notes held by the Philadelphia banks at the dates mentioned :
June 22.............................
“ 29..............................
July 6..............................
“ 13..............................
“ 20..............................
“ 27..............................
Aug. 3..............................
10..............................
“ 17..............................
“ 31..............................
Sept. 7..............................
„ 14..............................
“ 21..............................

86,082,129 Sept 28..............................
6,952,150 Oct. 5..............................
5,953,622
“ 12..............................
6,916 751
« 19 ...........................
7,066 593
“ 96 .....................
7,90.3^732 Nov. 2..............................
8,430,782
“
9.............................
7,780,640
“ 16..............................
“ 23..............................
7,530,339
“ 30..............................
6,853,540
7,382^810 Dec. 7..............................
7,081,480
“ 14..............................
6,573,404
“ 21..............................

$6,375,334
6,273,091
6,342,746
6,525.827
6,775.401
6,101,541
5,416,212
6,185,740
5,655,248
5,496,397
5,472,113
5,699,105
5,921,604

E u r o p e a n F in a n c e s — B an k of E n g l a n d .— D uring the past month
the minimum bank rate o f discount o f the Bank o f England has been
raised to eight per cent. This becam e necessary on account o f the rise/
in the India exchanges. N o new advance by the Bank o f France has yet
been made, although expected, the rate still remaining at seven per cent.
It is stated that the stock o f coin and bullion in the Bank of France is
not so low as to occasion uneasiness, it being about 204,000,0001'. As
the returns for the m onth are not yet received, this statement cannot be
relied upon. This rapid rise in the value o f money in England, being
four per cent since N ovem ber 28, must cause embarrassment and trouble,
if not failure, am ong Anglo-A m erican banking firms, which will react
disastrously on this side o f the Atlantic, unless proper precautions are
taken.
The following comparative table will be o f interest, showing as it does a
view o f the bank returns, the bank rate o f discount, and the price o f wheat
in London during a period o f three years corresponding with the date o f
our last returns, D ecem ber 2d :
A.t corresponding date3 with the week ending
December *2, i'663.

Circulation, including bank post b ills ..
Public deposits.........................................
Other deposits....................................... .
(rovernment securities............................
Other securities..........................................
lieserve o f notes and c o in .....................
Coin and bullion........................................
Bank rate o f discount.............................
Average price o f wheat...........................

1861.
£20,748,662
5,206,334
13,273,192
10,892,859
16,224.428
9,779,298
15,139,763
3 per cent.
60s, 6d.

•1862.

S1863.

£20,554,545
8,195,360
13,64 9,958
11,034,517
19,833,241
9,905,529
15,069,814
3 p. cent.
47e. 8d.

£21,685,732
7,234,894
12,924,545
10,710,330
21,173,559
6,675,850
18,048,475
8 per ctot.
40s. 3d.

Subjoined is o a r usual table with the returns 1brought downi to D e « m ber 2d, 1863 :
W EEKLY

Date
Dec. 17.
24.
*• 81.
Jan. 7.
“
14.
“
31.

Circulation.
. . £19,932,360
. . 20,150,398
. . 20,516,435
. . 20,927,993
. . 21,018,849
. . 20,893,931




STATEM EN T.

Coin and
Public
Private
Securities.
Bullion.
Deposits.
Deposits.
£8,507,144 £14,033,994 £30,539,363 £15,081,658
8,654,499 14,806,497 31,346,731 14,870,795
8,338,717 15,469,254 32,488,020 14,956,421
8,782,808 14,393,308 32,620,233 14,635,555
4,280,780 16,772,782. 31,165,075 14,102,169
4,965,798 14,99.3,225 80,227,086 13,855,849

Rate of
Discount.
3 pr. ct.
3
“
S
“
3
“
4
“
4
“

Journal o f Banking Currency, and Finance.
Circulation.
Date.
M 2 8 ..,. 20,771,286
Feb. 4 . . . 20,709,154
“
1 1 .. . 20,444,454
“
1 8 .. . 19,916,496
“
2 5 .. . 19,715,828
Mar. 4 ..,. 20,822,065
“
1 1 .. . 19,801,665
Mar. 1 7 .. . 20,012,331
“
2 4 .. . 20,136,276
Apr. 1 .. . 20,965,228
“
8 .. . 21,279,339
“
1 5 .. . 21,326,820
“
2 2 .. . 21,413,226
“
2 9 ..,. 21,452,800
May 6 .... 21,376,999
“ 1 2 .. . 21,252,916
“ 2 0 .. . 21,268,815
“ 2 7 .. . 20,909,819
June 8 .. . 21,009,392
“ 1 0 .. . 21.080,460
“ 1 7 .. . 20,655,478
“ 2 4 .. . 20,525.655
July 1 .. . 21,738,756
“
8 .. . .22,038,478
“
1 5 .. . 22,194,996
“
2 2 .. . 22,230,612
Aug. 5 . . . 22,340,809
“ 12 . . 21,937,198
“ 1 9 .. . 22,003,176
“ 2 6 .. . 21,699,696
Sept. 2 . . . 21,920,722
“
9 . . . 21,646,811
“ 1 6 .. . 21,487,105
“ 2 3 .. . 21,515,731
“ 8 0 .. . 22,312,747
Oct. 7 .. . 22,545,407
“ 1 4 .. . 22,860,095
“ 2 1 .. . 22,824,460
“ 2 8 .. . 22,600,408
Nov. 4 . . . 22,783,018
“ 1 1 . . 22,115,423
“ 1 8 .. . 21,778,354
“ 2 5 .. . 21,154,252
Dec. 2 . . . 21,685,732

Public
Deposits.
5,416,863
6,351,617
6,952,808
7,413,275
7,901,658
8,086,003
8,673,899
9,343,499
10,364,471
10,107,041
6,714,109
5,769,276
6,816,418
7,178,312
7,241,739
6,735,137
7,610,278
8,002,346
8,779,387
9,782,830
9,882,135
10,279,053
10,856,373
5,598,884
4,918,458
5,886,948
5,577,268
5,754,868
6,126,668
6,713,801
6,818,182
6,997,402
7,371 510
8.291,491
9.270,486
9,510,057
4,616,052
4,437,835
4,462,168
5,066,818
5,624,339
6,451,850
7,040,634
7,234,894

Private
Deposits.
14,414,763
13,852,287
18,596,856
13,769,276
13,367,153
13,868,086
18,282,605
13,003,088
12,742,282
18,172,080
14,829,832
15,013,391
14,739,897
13,606,939
18,122,087
13,727,556
18,983,654
18,842,718
18,896,460
13,783,263
13,904,606
13,809,996
10,274,789 .
18,595,718
16,381,914
14,875,625
18,790,855
13,578,358
18,005,322
12,806,568
13,261,512
12,909,484
13,484,939
12,859,580
13,717,460
12,893,642
16,352,818
15,271,262
15,015,128
18,861,173
13,664,311
13,408,442
12,802,411
12,924,545

Securities.
30,238,866
•29,997,238
30,288,406
29,890,503
29,709,079
30,880,806
31,096,327
31,482,170
31,896,338
32,776.752
30,946,784
29,974,677
80,182,533
29,994,349
29,718,602
80,201,120
81,484,815
31,412,190
32,889,044
83,240,192
32,750,953
32,756,459
36,490,515
84,647,336
32,052,521
30,975,774
SO,2S9,227
29,657,833
29,503,127
29,322,757
30,180,384
291919,543
30,601,940
80,960,809^
33,761,403
33,829,764
32,382,508
81,028,819
30,785,852
31,065,887
31,121,796
31,407,245
30,830,216
31,980,889

[January,

Coin and
bullion.
18,611,823
13,692,136
14,070,651
14,589,222
14,614,096
14,504,617
14,328,178
14,547,812
15,025,274
15,141,755
14,963,835
15,229,237
15,387,151
15,848,492
15,141,760
14,653,141
14,529,451
14,500,019
14,425,058
14,556,121
14,850,156
15,026,118
16,080,271
14,824,969
14,749,876
14,620,872
14,843,185
15,040,819
15,081,152
15,309,384
15,494,219
15,345,488
15,461,566
15,532,838
15,277,885
14,856,037
14,570,61 1
14,645,269
14,437,574
13,799,428
13,460,765
13,419,602
13,868,832
13,048,475

Rate of
Discout.
<•
5
“
5
5
4
**
4
"
4
<t
4
4
4
4
4
4
3
H
3
3
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
«
6
6 •
6
8

“
u
it
l<
“
II
(i
u
it
**
“
it
it
**
it
“
•i
li
“
it
it
it
it
ii
“
it
u

“

it
«(
it
“

N ew Y o rk C l e a r in g -house -—A nn ual M eeting —-The tenth annual
Association was held lit the
meeting
ft o f the New Y ork Clearing-house
*
Clearing-house on the 6th day o f October last. The following officers and
committees were elected for the ensuing year, viz:

Chairman— J ohn Q. J o n es , President o f the Chemical Bank, in place
o f T homas T xleston , resigned.
Secretary— R obert B a y l e s , President o f the Market Bank, in place o f
M. M. F reem an , resigned.
Clearing house Committee— J. IT. V er m il y e , Cashier Merchants’ Bank ;
J. M . M o r r is o n , President Manhattan Company ; E. D. B r o w n , President
Mechanics’ and Traders’ Bank ; S. R . C om stock , Cas'hier Citizens’ Bank ;
R . H . H ay d o c k , Cashier Fulton Bank.




1 8 6 4 .]

J o u r n a l o f Banking, C u rren cy, an d F in a n ce.

37

Conference Committee— J ames G a l la t in , President National Bank ; J a ­
C am pbell , Jr., President Pacific Bank; G e o rg e W . D u e s , Cashier
Bank of State of New Y o r k ; A. S. F r a s e r , Cashier Seventh W ard Bank ;
W . II. F o g g , President Park Bank.

co b

The following Committees were appointed by the Chairman, viz:

Committee on Admission— H . B lyd en bu eg , President Nassau Bank ;
D. R. M a r t in , President Ocean B ank; C h arles F. H un ter , President
Peoples B ank; E. W . D u n h am , President Corn Exchange Bank; Lucius
H o p k in s , President Importers and Traders Bank.
Committee on Arbitration — H . L. J a ^u e s , Vice-President Metropolitan
B ank; W a . L. J en kin s , Cashier o f Bank o f A m erica; J. P. Y elverton ,
President Bank o f North A m erica; S h eph erd K n a p p , President Mechan­
ics’ Bank; B. L e w is , Jr., President Butchers and Drovers Bank.
For Speciq Depository — B ank

of

A m e r ic a .

The Clearing-house Committee reported that the business o f the Clear­
ing house had been unprecedentedly large, the exchanges having been more
than double the average amount«ot' that o f the nine preceding years.
F or the year ending O ctober 1st, 1863, the ex­
changes were...............................................................
A nd for the nine preceding years............................

§14,867,597,848 60
57,575,807,880 01

Total for ten years...............................................

§72,443,405,728 61

The balances received and paid for the tenth year
were.................................. .................................. . . . .
A nd for the nine years preceding............................

§677,626,482 11
3,042,965,329 25

Total balances for ten years..............................

§3,720,591,811 06

Total business for ten years...................................

§76,163,997,540 27

The following resolution was adopted by the meeting, viz ;

Resolved, That a committee o f five bank officers be appointed to exam­
ine the system o f banking initiated by t^e present Secretary o f the Treas­
ury o f the United States, as to its prospective effects upon the currency and
credit o f the country, and to report whether any action on the subject by
this Association is necessary.
On motion o f the same gentleman the following resolution was also
adopted, v iz :
Resolved, That from and after the 1st day o f Decem ber next, the Loan
Committee shall be authorized to apportion the U. S. Legal Tender Notes
in such manner that each o f the Associated Banks shall hold o f such notes
not less than ten per cent o f their net deposits.
A motion was made by the President o f the Bank o f America, J am es
P un nett , Esq., sconded by J a s . G a l l a t in , Esq., President o f the National

Bank, to amend the above resolution so as to make the percentage o f U . S.
Legal Tender Notes to be held by the banks twenty-five instead o f ten per
cent, and the rate o f interest for the Loan Certificates— seven pier cent per
annum— was lost.
The Chairman o f the Loan Committee, 0 . P . L e y b r ic h , Esq., then read
VOL. l.— no . i.
3




%
38

Journal o f Banking, Currency, and Finance.

[January,

the following letter, addressed b y M. B. F iel d , Esq., Assistant Secretary o f
the Treasury, to J oiis J. C isco, Esq., Assistant Treasurer, New Y o r k :
T r e a su r y D

epartm ent, N o v e m b e r

21 t h , 1868.

S ir : The National Bank Note Company has, in error and contrary to instructions,

prepared the plates for the two-years five per cent Treasury Notes of the denomi­
nation of One Hundred Dollars with coupons on the left instead of the right-hand side.
Please confer with the Associated Banks in regard to it, and ascertain if they would
prefer to take the notes with coupons thus attached, or incur the delay which would
necessarily aiise in preparing new plates.
Very respectfully,
M. B. FIELD,
J ohn J. C isco , E sq .,
Assistant S e c r e t a r y o f t h e T r e a s u r y .
A s s is t a n t

T re a su re r, N e w

Y o rk .

P. S. A ll the other coupons will be on the right-hand side.

On motion o f the Cashier o f the Bank o f Commerce, H . F. V a i l , Esq.,
the letter of the Assistant Secretary o f the Treasury was referred to the
Loan Committee with power.
On motion o f the Cashier o f the Merchants’ Bank, J. D. V ermilye , Esq.,
the following resolution was adopted, viz :

Resolved, That the Chairman o f the I*oar> Committee be authorized to
draw upon the Associated Banks for the sum o f $1,420-,-3j7f , being the
amount advanced to the Associated Banks by the Clearing-house Associa­
tion to the 1st day o f October, 1863, and also for such expenses as may
be incurred by the Loan Committee.
The Chairman o f the Loan Committee asked for instructions in relation
to the collection o f the interest accrued upon the Loan to the U. S. G ov­
ernment o f $35,000,000, from the 8th o f September to December 1st.
On motion, the consideration o f the subject was referred to the Loan
Committee.
A motion, made by the President o f the American Exchange Bank,
G e o r g e S. C oe , Esq., that the two-year five per cent Legal Tender U. S.
Treasury Notes, when delivered to the banks, shall be used by them as a
medium for the settlement of balances at the Clearing-house, was, after
some debate, withdrawn.
This loan has now all been paid. W e give below a list o f the payments
with the date o f each :
PAYMENTS OF THE BANKS ON THE

5 per cent
U
10
a
10
<t
10
10
u
10
u
10
u
10
u
10
u
10
u
5

$50,000,000

when loan was taken..........
Sept. 1 9 ...................................
u
2 6 ...................................
3 .................................... : . .
Oct.
u
1 9 ....................................
N ov. 1 0 ...................................
U 1 3 ...................................
u
1 8 ...................................
u
2 1 ....................................
u
2 5 ...................................
((
3 0 ...................................

TO GOVERNMENT.

N ew Y ork banks.

Other banks-

$1,750,000
3,500,000
3,500,000
3,500,000
3,500,000
3,500,000
3,500,000
3,500,000
3,500,000
3,500,000
1,750,000

$750,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
750,000

Total.
Making the payments o f all the banks.....................................




i

$15,000,000
$50,000,000

i-Vydih

JiyC

3 0 (J> I



T

1864.]

Report o f the Secretary o f the Treasury.

39

Government lias not yet issued the interest-bearing notes to the banks
tor this loan, but will probably do so about the first o f January. In this
connection, we would suggest one important question, and that is, W hat
prevents the banks cutting oft' the coupons as soon as the notes are re­
ceived, and paying out the notes for their face as-legal tenders, while
retaining the coupons and collectin g each as it becom es due? The law
(act o f March 3, 1863), under which the loan is made, reads as follows :

Sec 2. A nd be it further enacted. That the Secretary o f the Treasury be and he is
hereby authorized to issue, on the credit of the United States, four hundred millions
of dollars in Treasury notes, payable at the pleasure o f the United States, or at such
time or times, not exceeding three years from dale, as may be found most beneficial
to the public interests, and bearing interest at a rate not exceeding six per centum
per annum, payable at periods expressed on the face o f said Treasury notes ; * * *
and said Treasury notes may be made a legal lender to the same extent as United
States notes, fo r their fa ce value, excluding interest. *
*
*
*
*
*
There is no limit to this provision, m aking these notes a legal tender
(such as, for instance, that the unmatured coupons must remain attached),
and, in fact, there is no provision whatever made in regard to coupons.
Congress probably forgetting, or not contem plating, that there would be
anv. W h y, then, could not these coupons be cut off, and still the note
be a legal tender for its face 1 I f this is so, o f course the law should be
amended.

REPORT OF THE SECRETARY OF THE TREASURY.
S omk o f the suggestions contained in the Report o f the Secretary o f
the Treasury we have noticed elsew here, and probably shall have occasion
to refer to others hereafter.
W e give below the more important facts
and figures o f the R e p o r t:

The receipts, estimated and actual, for the last fiscal year, ending on
the 30th o f June, 1863, were, including balance from the preceding year,
as follow s:
Estimated.

From custom s..............
From lands...................
From m iscellaneous...
From direct tax...........
From internal revenue
Balance from last year
Total receipts from all ordina­
ry sources...............................

$68,041,736
88,724
2,244,316
11,620,717
85,456,303
13,043,546

Actual.

59
16
32
99
73
81

$180,495,345 60

$69,059,642
167,617
3,046,615
1,485,103
37,64'0,787
13,043,546

40
17
35
61
95
81

$124,443,313 29

The additional sums, actual or estimated, necessary to meet disburse­
ments, were, o f course, derived, or estimated as derivable, from loans.
The disbursements, estimated and actual, were as follow s:
Estimated.

The civil service.....................
Pensions and Indians...................
W a r Department...........................
y a v y D epartm ent..........................
Interest on d e b t ............................

Total gross estimate




$32,811,543
5,982,906
747,359,828
82,177,510
25,014,532

Actual.

23
43
98
77
07

$23,253,922 08
4,216,520 79
599,298,600 83
63,211,105 27
24,829,846 61

$893,346,321 48

$714,709,995 58

Report o f the Secretary o f the Treasury.

40

But this amount, it was supposed,
would remain undrawn at the
end o f the year, and was there­
fore deducted from the gross
estim a te......................................
Making actual estimate...........

[January,

$200,000,000 00
$693,346,321 48

In his last report the secretary stated that if the appropriations should
equal the estimates, the balance unexpended at the end o f the year would
probably reach $200,000,000, and that this sum should therefore be d e­
ducted from the departmental estimates, to make the aggregate corres­
pond with probable conditions. The above statement shows that the ag­
gregate o f estimates, thus reduced, was $693,346,321 48, while the ex­
penditures were $714,V09,995 58, exceeding the reduced estimates
$21,363,674 10.
From the actual expenditures, $714,709,995 58, there must be deducted
the actual receipts, $124,443,313 29, in order to show the amount derived
from loans, $590,266,682 29, which sum, added to the amount o f the debt
on the 1st July, 1862, $508,526,499 08 (heretofore erroneously stated at
$514,211,371 92), gives us the true amount o f debt on the 1st July, 1863,
$1,098,793,181 37.
The follow ing is a statement o f the actual receipts and disbursements :
RECEIPTS A SD EXPENDITURES FOR THE FISCAL YE A R ENDING JUNE

30, 1863.

RECEIPTS.

The total receipts, including a balance on hand July 1, 1882, o f
$13,043,546, were $907,125,674, as follow s:
From
From
From
From
From

custom s....................................................
la n d s.........................................................
miscellaneous sources..........................
direct ta x ..................................................
internal duties................

From lo a n s :
For three years 7-30 b on d s..........................
For five-twenty years six per cent b o n d s ..
For two years Treasury notes, under act
March 2, 1861..........
For U. S. notes, under act Feb. 25, 1863 . .
For United States stock, W ashington and
Oregon war d eb t...........................................
From temporary loan, under act February
2 5 , 1 8 6 2 . . / ..................................................
From certificates o f indebtedness, under
acts March 1 and 17, 1862.......................
For 20-years 6 per cent bonds, under act
July 17, 1 8 6 1 ...............................................
From United States fractional c u r re n c y ...

$69,059,642
167,617
3,046,615
1,485,103
37,640,787
----------------- $111,399,760
$17,263,450
175,037,259
1,622
231,260,000
145,050
115,226,762
157,479,261
76,500
20,192,456
----------------- 776,662,361

Aggregate receipts.........................................................




$888,082,128

R e p o rt o f the S ecreta ry o f the T rea su ry.

41

Balance in Treasury July 1, 1862............................................

$13,043,546

1 8 6 4 .]

Total resources......................................................................
From which, however, should be deducted receipts from
new loans, applied during the year in payment o f exist­
ing funded or temporary debt, and therefore only nom ­
inal r e c e ip ts ..............................................................................
M aking the total amount o f r e c e ip t s ..........................

$901,125,674

181,086,635
$720,039,039

EXPENDITURES.

The expenditures were—
For
For
For
For
For

the civil service....................................................................
pensions and Indians.............................. ............................
interest on public d eb t........................................ „ .............
the W ar D epartm ent...........................................................
the Navy Department..........................................................

$23,253,922
4,216,520
24,729,846
599,298,600
63,211,105

•

Total........................................................................................

$714,709,995

To which add payments on account o f pub­
lic debt, as fo llo w s:
Redemption o f Treasury notes, under acts
prior to July 22, 1 8 4 6 ...............................
Redemption o f Treasury notes, under acts
Decem ber 23, 1857, D ecem ber 17, 1860,
and March 2, 1 8 6 1 .....................................
Repayment on account o f temporary loan,
under acts Feb. 25 and March 17, 1862
Redemption o f United States stock loan o f
1842 ................................................................
Redemption o f 7.30 coupon bonds, under
act o f July 17, 1861 ...................................
Redemption o f United States stock, W a sh ­
ington and Oregon war debt.....................
Redemption o f United States notes under
act o f July 17, 1 8 6 1 ...................................
Redemption o f United States notes under
act February 25, 1 8 6 2 ...............................
Redemption o f certificates o f indebtedness
under acts March 1 and 17, 1862...........
Making the aggregate expenditu res..
But from this aggregate should be deducted
payments o f existing funded and tem po­
rary debt, all which are made from new
loans, and are therefore only nominal
payments.
.............................................

$50

2,211,650
67,516,993
2,580,743
71,500
69,650
56,177,390 .
2,099,000
50,359,758
$895,796,630

181,086,635

Making the actual expenditures for the y e a r ...

$714,709,995

Leaving a balance in the Treasury July 1, 1863, of.

$5,329,044




42

Report o f the Secretary o f the Treasury.
ESTIMATES FOR THE Y E A R ENDING JUNE

[January,

30, 1864.

The estimates for the current fiscal year 1864 are founded on actual
receipts and disbursments for the first quarter, which ended September
30, 1863, and on opinions formed upon probable events and conditions
as to .the other quarters.
The follow ing statement exhibits what is actually known and what,
after careful reflection, the Secretary thinks himself warranted in regard­
ing as p roba ble:
For the first quarter, which ended September 30, 1863, the actual re­
ceipts were—
From customs..........................................
$22,562,018 42
17,599,719 59
From internal revenue..........................
From lands...............................................
136,182 99
From miscellaneous sources................
641,542 04
Total receipts for first quarter.. . .
To which add balance July 1, 18 63 ..

$40,939,456 14
5,329,044 21

Making total receipts o f first quarter, except loans.
For the three remaining quarters, ending on the 30th
o f June, 1864, it is estimated there will be received :
From
From
From
From

customs..........................................
internal revenue..........................
l a n d s .............................................
miscellaneoussources..................

$46,268,500 35

$50,000,000 00
60,000,000 00
300,000 00
5,000,000 00
----------------------- 115,300,000 00

Making a total o f receipts from ordinary sources, ac­
tual and estimated, and including balance o f . . . .
To which add actual and estimated receipts from loans

$161,568,500 35
594,000,000 00

Making a total o f actual and estimated receipts from
all sources for 1 8 6 4 ......................................................

$755,568,500 35

The expenditures may be stated as follows :
F or the first quarter ending September 30, 1863, the actual disburse­
ments have b een :
For
F or
For
For
For

the civil service............
pensions and Indians..
W ar Departm ent.........
Navy D epartm ent.. . .
interest on public debt

$7,216,939
1,711,271
. 144,387,473
18,511,618
4,283,628

31
95
97
86
37

Actual expenditures for first quarter........................
$176,110,932 46
For the remaining three quarters the estimates, found­
ed on appropriations and estimated deficiencies, are
as follo w s:
For the civil service...............................
$27,050,872 21
For pensions and Indians.....................
6,129,042 86
For W ar D epartm ent..........................
741,092,037 14




1864]

Report o f the Secretary o f the Treasury.

For Navy D epartm en t.. . .
For interest on public debt

43

94,467,567 74
54,881,508 01
----------------------- 923,621,027 96

Making a total aggregate o f actual and estimated
expenditures o f . ............................................................. $1,099,731,960 42
But as these estimates include all unexpended balances
o f appropriations from former years, they are neces- •
sarily much too large, and there may be safely de­
ducted from their aggregate, as likely to remain un­
expended at the close o f the fiscal year, the sum o f
350,000,000 00
Leaving the total actual and estimated expenditures
for 1 8 6 4 ................................................................................
The total o f expenditures being deducted from the to­
tal o f receipts, there will be an estimated balance on
the 30th o f June, 1864, o f .............................................
From this statement it appears that the total receipts
required for the probable disbursements o f the year,
and including estimated balance at its close, will
amount to..................... ........................................................
O f which there have been provided and applied during
the first quarter..................................................................

$749,731,960 42

5,836,539 93

$755,568,500 35
176,110.932 46

Leaving to be p ro v id e d .........................................................
O f which it is estimated there will be received from
ordinary sources during the three other quarters..

$579,457,567 89

Leaving yet to be provided by loans................................

$464,157,567 89

115,300,000 00

The amount o f debt created during the quarter is ascertained by de­
ducting from the total expenditures $176,110,932 46, the aggregate of
ordinary receipts and balance from last year, amounting together to
$46,268,500 35, which gives as the increase o f debt, $129,842,432 11.
To this sum, if there be added the sum yet to be provsded by loans,
$464,157,567 89, the result will be, $594,000,000 00, from which, if there
be deducted the estimated balance on the 1st July, 1864, $5,836,539 93,
the remainder will be $588,163,400 07, and will represent the total in­
crease, on the basis o f these estimates, o f public debt during the year.
The debt on the 1st o f July, 1863, was $1,098,793,181 37 ; to which, if
this estimated increase be added, the total debt on the 1st o f July, 1864,
will be $1,686,956,611 44, instead o f $1,744,685,586 80, as estimated in
the report o f last Decem ber.
The follow ing detailed statement o f the indebtedness o f the United
States will be found very valuable lor future reference It gives the pop­
ular name, the date o f passage, and a synopsis o f each act under which
the loans com posing the entire present indebtedness have been made, to­
gether with the length o f loan, when redeemable, rate o f interest, amount
authorized, amount issued, and the amount outstanding o f each loan, and
the total debt at three separate dates, to w it: March 4, 1861, June 30,
1863, and September 30, 1863 :




A c t s A u t h o r i z i n g L o a n s , a n d S y n o p s i s o f S a m e.

L en g th
L oan.

L o a n * o f 1P42.—Acts of July 2 1 , 1841, and April 15,1842— Authoriz­
ed a loan o f $ 12 , 000, 000, bearing interest at a rate not exceeding 6
per cent per annum, and reimbursable at the -will of the Secretary,
after six months’ notice, or at any time after three years from the
1st of January, 1842. The act o f April 15, 1842, authorized the loan
o f an additional sum o f $ 5 000, 000, and made the amount obtained
on the loan, after the passage o f this act, reimbursable after six
months’ notice, or at any time, not exceeding twenty years, from the
1st day of January, 1845. This loan was made for the purpose o f
redeeming outstanding Treasury notes, and to defray any of the pub­
lic expenses.
L oan of 1846.—A ct of July 22,1846—Authorized an issue of $10,000,000 in Treasury notes, bearing interest at a rate not exceeding 6
per cent per annum, and payable one year from date. Instead of is­
suing the whole amount in Treasury notes, authority was given to
borrow any part o f it, and issue therefor bonds in the same form and
under the same restrictions, limitations, and provisions contained in
the act of April 15, 1842. The whole amount o f Treasury notes and
bonds issued under this act not to exceed $10,000,000. Authority
was given the Secretary to purchase the Treasury notes at any time.
L oan of 1847.— Act o f January 28, 1847—Authorized the issue of
$23,000,000 in Treasury notes, bearing interest at a rate not exceed­
ing 6 per cent per annum, with authority to borrow any portion o f
the amount, and issue bonds therefor, bearing interest at a rate not
exceeding 6 per cent, and redeemable after the 31st of December,
1867. The 13th section authorized the funding of these notes into
bonds o f the same, description. The act limited the amount to be
borrowed or issued in Treasury notes and funded as aforesaid to $23,000,000, but authorized funding of Treasury notes issued under for­
mer acts beyond that amount. The excess o f the $23,000,000 is made
up of Treasury notes funded under the 14th section.
L o a n of 1 8 4 8 . — Act of March 3 1 , 1 8 4 8 — Authorized a loan of $ 1 6 , 0 0 0 , 0 0 0 , bearing interest at a rate not exceeding 6 per cent per an­
num, and reimbursable at any time after twenty years from the 1st
of July, 1 8 4 8 . Authority was given the Secretary to purchase the
stock at any time.
T exan I ndemnity .— Act of September 9, 1850—Authorized the
issue of $10,000,00|) in bonds, bearing 5 per cent interest, and re­
deemable at the end o f fourteen years, to indemnify the State o f
Te.-tas for her relinquishment (ft all claims upon the'United States
for liability of the debts o f Texas, and f#r compensation for the sur­
render to the United States o f her ships, forts, arsenals, custom­
houses, etc., which became the property of the United States at the
time of annexation.

Twenty
years.

R a te o f
In ter es t

A m ount
A u th o r iz e d .

After
*6 per cent. $17,000,000
Dec. 31, ’62.

A m ount
Issu ed .

$8,343,886

O u ts t n n d 'g O u ts t a n d 'g
O u ts ta n d in g
M a r c h 4, ’61. J u n e 3 0 ,’63. S e p . 3 V 6 3 .

$2,883,361

$302,620

$212,620

*
•
Ten
years.

After
Nov. 12, ’56.

4,999,149

*6 per cent.

1 0 ,0 0 0 ,0 0 0

Twenty
years.

After
*6 per cent.
Dec. 31, ’67.

23,000,000

28,207,150

9,415,250

9,415,250

9,415,250

Twenty
years.

After
July 1, ’68.

*6 per cent.

16,000,000

16,000,000

8,908,341

8,908,341

8,908,311

Fifteen
years.

After
Dec. 81, ’64.

*5 per cent.

1 0 ,0 0 0 ,0 0 0

5,000,000

3,401,000

3,401,000

3,461,000

‘V

........

[January,

♦

1 ,0 0 0

The Indebtedness o f the United Stales.




W h en
R e d eem a b le.

On demand

*3 and G .
per cent.

Demand

On demand

One
year.

One year
after date.

1 mill
to 6 per c.
5 and 5&
per cent.

Fifteen
years.

Afier
Dec. 31, ’ 73.

Ten
years.

After
Dec. 8i, ’ 70.

One
year.

One year
after date.

Twenty
years.

( 2 years.
( 60 days.

20 years.

114,113

114,115

114,115

104,811

104,561

104,511

20,000,000

20,000,000

4,636,800

13,000

12,900

5 per cent.

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

5 per cent

21,000,000

7,022,000

7,022,000

7,022,000

7,022,000

*6 and 12
per ce n t

10,000,000

10,000,000

10,000,000

1,600

600

25,000,000

18,115,000

1,981,000

18,415,000

18,415,000

776,750

512,900

1,021,300

1,016,00ft

After
*6 per cent.
Juno J, ’ SI.

Two years
after date.
Sixty days
after date.

*6 per ce n t.

22,468,100

*6 per cen t..

12.896,850

After
July 1, ’81.

*6 per cent.

2,800,000

1,090,850

The Indebtedness o f the United States.




Demand

1864,]

O l d F u n d e d D e b t . —Consisting o f unclaimed dividends upon
stocks issued before the year l s u u and those issued during the war
of 1*12.
T r e a s u r y N o t e s . —Acts prior to 1857—Different issues o f Treas­
ury notes.
T r e a s u r y N o t e s . — Act of December 23, 1857—Authorized an is­
sue o f $20,(H)0,00() in Treasury notes, beaiing interest at a rate not
exceeding six per cent per annum, and receivable in payment o f all
public dues, and to be redeemed after the Expiration o f one year
from the date ot said notes.
L o a n o f 1858.—Act of June 14, 1S58—Authorized a loan of $20,000,000, bearing interest at a rate not exceeding 5 per cent per an­
num, and reimbursable at the option of the government atany time
after the expiration of fifteen years from the ist of January, 1859.
L oan of I 8 6 0 .—Act-o f June 22, 1860—Authorized a loan o f $21,000,000, bearing interest at a rate not exceeding 6 per cent per an­
num, and reimbursable within a period not beyond twenty years,
and not less than ten years, for the redemption of outstanding Treas­
ury notes, and for no other purpose.
T r e a s u r y N o t e s . —Act of December 17, 1860—Authorized an is­
sue o f $1 u,()00,00.i in Treasury notes, to be redeemed alter the expi­
ration of one year from the date of issue, and bearing such a rate of
interest as m aybe offered by the lowest bidders, Authority was
given to issue these notes in payment of warrants in favor of public
creditors at their par value, bearing six per cent interest per annum.
L o a n o f F e h r u a r y , 1 8 6 1 .—Act of February 8. 1861
Authorized
a loan of $25,000,000, bearing interest at a rate not exceeding 6 per
cent per annum, and reimbursable within a period not beyond twen­
ty years nor less than ten years. This loan was made for the pay­
ment o f the current expenses, and was to be awarded to the most
favorable bidders,
T r e a s u r y N o t e s —Act of March 2, 1861—Authorized a loan of
$ 1 0 , 0 0 0 ,0 0 0 , bearing interest at a rate not exceeding 6 per cent per
annum, and reimbursable after the expiration o f ten years from July
1, 1861. In case proposals for the loan were not acceptable, authority was siven to reissue the wrhole amount in Treasury notes, bear­
ing interest at a rate not exceeding 6 per cent per annum. Authority was also given to substitute Treasury notes for the whole or any
part o f the loans for which the Secretary was by law authorized to
contract and issue bonds, at the time o f the passage of this act, and
such Treasury notes were to bo made receivable in payment o f all
public dues, and redeemable at any time within two years from
March 2, 1861.
O r e g o n W a r . — Act of March 2,1861—Authorized an issue, should
the Secretary o f the Treasury deem it expedient, o f $-,8(JU,00U in
coupon bonds, bearing interest at the rate of 6 percent per annum,
and redeemable in twenty years, for the payment o f expenses in-

A c t s A u t h o r i z i n g L o a n s , a n d S y n o p s i s o f S a m e.

TVh e n
R ed eem a b le.

R a te o f
In terest.

A m ount
A u th o riz ed .

A m ount
Issu ed .

20years.

After
June 80, ’81.

+6per cent.

f 50,000,000

(
3 y'rs.-j

After
)
Ausr. 18, ’64. [■*7.30 p. c.
Sept. 30, ’61.
D em and. . . ♦No interest

Payable
on
demand.

20 years.

O u tsta n d in g
M a rch 4 , ’ 61.

.............

50,000,000

50,000,000

53,003,300

..........

52,981,000

52,725,350

86,995,700

.............

86,989,500

86,953,650

60,000,000

.............

3,351,019

2,022,178

Exch’d for
7.30 notes.

.............

28,500

320,000

^ 150,000,000 150,000,000

.............

147,767,114

147,767,114

250,000,000 \
After
June 80, ’81.

J

) .......................... ..........

♦6 per

*Nono

cent.

5 or 20
After
*6 per cent, 500.000.
000Being issued
years.
April 30,’67.
Not less
After ten
*4 and 5
100.000.000
do
than 30 days’ notice.
p ercent
days.

One
year.

O u ts t a n d 'g O u ts t a n d 'g
J u n e 30,’63. S ep . 30, ’63.

One year
aftor date.

*6 per cent.Notspecifl’d

♦None

do

150,000,000 150,000,000

16S,880,250 278,511,500
102,384,085

104,934,102

156,784,241

156,918,437

150,000,000

150,000,000

Ci

[January




L en g th
Loan.

The Indebtedness o f the United States.

enrred by the Territories o f Washington and Oregon in the sup­
pression o f Indian hostilities during the years 1855-56.
T w e n t y Y e a r ? S i x e s . — Acts o f July 17, 1861, and Aug. 5 , 1861—
Authorized a loan o f $250,000,000, for which could be issued bonds
bearing interest at a rate not exceeding 7 per cent per annum, irre­
deemable for twenty years, and after that redeemable at the pleas­
ure o f the United States.
7 . 3 0 N o t e s , (two issues).—Treasury notes bearing interest at the
rate o f 7 . 3 0 per cent per annum, payable three years after date ; and
D e m a n d N o t e s .—United States notes without interest, payable
on demand, to the extent o f $50,000,000. (Increased by act of Feb­
ruary 12, 1862, to $60,000,000 )§
The bonds and Treasury notes to be issued in such proportions of
each as the Secretary may deem advisable.
T w e n t y Y e a r s S i x e s . — The supplementary act o f August 5 , 1 8 6 1 ,
authorized an issue of bonds bearing 0 per cent interest per annum,
and payable at tho pleasure of the United States after twenty years
from date, which m aybe issued in exchange for 7.30Treasury notes
but no such bonds to be issued for less than $500, and the whole
amount of such bonds not to exceed the whole amount o f 7.30 Treas­
ury notes issued.
t»
U. S N o t e s (new issue), F i v e - t w e n t i e s , T e m p o r a r y L o a n . — Act
of February 25, 1862—Authorized the issue of $150,000,000 in legal
tender United States notes, $50,000,000 of which to be in lieu o f de­
mand notes issued tinder act o f July 17, 1861, $500,000,000 in 6 per
cent bonds, redomable after five years, and payable twenty years from
date, which may be exchanged for United States notes, and a tem­
porary loan of $25,000,000 in United States notes for not less than
thirty days, payable after ten days’ notico, at five per cent interest
per annum. (This last was increased to $100,0t)0,00U b y the follow­
ing acts:)
A ct of March 17,1862—Authorized an increase of temporary loans
of $25,000,000, bearing interest at a rate notexceediug 5 per cent per
annum. (Included above.)
Act of July il, 1862 - Authorized a further increase of temporary
loans of $ ’>0 ,0 0 0 ,0 0 0 , making the whole amount authorized $ 10 0 ,0 0 U,000. (Included above.)
C e r t i f i c a t e s o f I n d e b t e d n e s s . — Act of March 1, 1862—Author­
ized an issue of certificates of indebtedness, payable one year from
date, in settlement of audited claims against the government. In­
to est 6 per cent per annum, payable in gold on those issued prior
to March 4, 1S63, and in lawful currency on tho^e issued on and after
that date. Amount o f issue not specified.
U n i t e d S t a t e s N o t e s . — Act of July II, 1862—Authorized an ad­
ditional issue o f $150,000,000 legal tender notes, $35,000,000 o f which

♦ N o n e ....... N otspecifi’d

150,000,000

...................

50,000,000

.............

20,192,456

17,766,056

104,969,937

.............

89,879,475

104,969,937

T otal......................................................... ...........................................................................................................................................

$68,482,686 1,098,793,181 1,222,113,559

§ Act of February 12,1862, authorized an increase of $10,000,000 demand notes, included in abovo statement.
♦ Price of emission - Par.
t Fifty million dollars at 89.32 to make an equivalent to seven per cent investment.
% Thirteen million dollars at a premium o f 3.25; balance at par.




The Indebtedness o f the United Stales.

N o n e ........

20,192,456

1864.]

might be in denominations less than five dollars. $50,090,000 o f this
issue to be reserved to pay temporary loans promptly in case of
emergency.
P o s t a l C u r r e n c y . —Act of July 17, 1862—Authorized an issue of
notes of the fractional part <*f one dollar, receivable in payment o f
all dues except customs, less than five dollars, and exchungable for
United States notes in sums not less than five dollars. Amount o f
issue not specified.
Resolution of Congress, Jan. 17, 1863.— Authorized the issue of
$100,000,000 in United States notes for the immediate payment of
the army and navy; such notes to be a part of the amount provided
for in any bill that may hereafter be passed by this Congress. The
amount in this resolution is included in act o f March 3, 1803.
Act o f March 3, 1863—Authorized a loan o f $300,000,000 for this
and $ 6 0 0 , 0 0 0 , 0 0 0 for the next fiscal year, for which could be issued
bonds running not less than ten nor more than fort}'years, principal
and interest payable in coin, bearing interest at a rate not exceeding
six per cent per annum, payable on bonds not exceeding $ 1 0 0 annu­
ally, and on all others semi-annually. And Treasury notes (to the
amount o f $400,000,000) not exceeding three years to run, with iV
terest at not over 6 per cent per annum, principal and interest pay­
able in lawful money, which may be made a legal tender for their
face value, excluding interest, or convertible into United States
notes. And a further issue of $150,000,000 in United States notes
lor the purpose of converting the Treasury notes which may be is­
sued under this act, and for no other purpose.
U n i t e d S t a t e s N o t e s (new issue).—And a further issue, if neccessary, for the payment of the army and navy, and other creditors
of the government, of $150,000,000 in United States notes, which
amount includes the $ 1 0 0 , 0 0 0 , 0 0 0 authorized by the joint resolution
o f Congress, January 17, 1863. The whole amount of bonds. Treas­
ury notes, and United States notes issued under this act not to ex­
ceed the sum of $ 0 0 0 ,0 0 0 ,0 0 u.
A ct of March 3, 1863—Authorized an issue not exceeding $30,000,000 in fractional currency (in lieu o f postage or other stamps),
exchangeable for United States notes in sums not less than three
dollars, and receivable for any dues to the United States less than
five dollars, except duties on imports. The whole amount issued,
including postage and other stamps issued as currency, not to exceed
$50,000,000. Authority was given to prepare it in the Treasury De­
partment, under the supervision o f the Secretary.

Report o f the Secretary o f the N avy and

48

[January

REPORT OP THE SECRETARY OF THE NAVY AND THE CHIEF OF THE
Bu r e a u of o r d n a n c e .
T he reports o f the Secretary o f the Navy and C hief o f the Bureau o f
Ordnance contain many interesting facts. In regard to the blockade, the
Secretary o f the Navy states that it now extends over a distance o f three
thousand five hundred and forty-nine statute miles, with one hundred
and eighty-nine harbor or river openings or indentations, presenting a
double shore to be guarded. In addition to the coast blockade, a naval
force o f more than one hundred vessels has been employed, during the
year, in patrolling the rivers, cutting off rebel supplies, and co-operating
with the armies in the suppression o f the rebellion. The distance thus
traversed and patrolled by the gunboats on the Mississippi and its tribu­
taries is 3,615 miles, and the sounds, bayous, rivers, and inlets o f the
States upon the Atlantic and the Gulf, covering an extent o f about 2,000
miles, have also been penetrated and watched with unceasing vigilance.
In the last report, the Secretary mentioned that the naval force at the
com mencement o f this administration consisted o f seventy-six vessels, and
o f these only forty-two were in com m ission. In the follow ing table an
exhibit is presented o f the actual number and description o f our naval
vessels, at the date o f the last report and at the present time :
COMPARATIVE E XH IBIT OF THE N A V Y , DECEMBER
No, of vessels.

Navy at the date o f present report...........
Navy at the date of last report..................
Increase, exclusive o f those lost.
VESSELS OF THE N AV Y

588
427

1862

4,443
3,268

LOST SINCB. DECEMBER,

Captured............................
D estroyed to prevent falling into rebels’ hands.
Sunk ii^ b a ttle ly by torpedoes.
Shipwreck, fire and collision.
\
T ota l.

Double-end iron steamers, 1,030 tons e a c h ..
Single turret iron-clads, 614 tons each...........
Double turret iron-elads, 3,130 tons each. . .
Clipper screw-sloops, 2,200 tons each.............
Scr&w-sloops, spar-deck, 2,200 tons each . . . .
Screw-sloops o f great speed, 3,200 tons each.
Serew-sloops o f great speed, 3,000 tons each.
Total.




Tonnage.

467,967
340,036
127,931

1862.

No. vessels. No. guns. Tonnage.

12
3
’ 4
. 13

48
29
28
61

5,947
2,983
2.201
4,854

32

166

15,985

CE DECEMBER,
Description.

1863.

1,175

161

In what manner lost.

AND

N o. o f guns.

1862.

No. vessels. No. guns.

Tonnage.

7
20
4
12
8
5
2

84
40
16
96
160
40
16

7.200
12,280
12,520
26,400
17,600
16,000
6,000

58

452

98,000

1864.]

The Chief o f the Bureau o f Ordnance.

49

GENERAL EXHIBIT OF THE N A V Y W HEN THE VESSELS UNDER CONSTRUCTION
ARE COMPLETED.
No. vessels.

Iron-clad steamers, coast service.........
Iron-clad steamers, inland service.. . .
Side-wheel steamers...............................
Screw steamers........................................ .
Sailing vessels..........................................
T o t a l......................................................

No. gun 8.

Tonnage.

46
29
203
198
112

150
152
1,240
1,578
1,323

62,513
20,784
126,517
187.892
70,256

588

4,443

467,967

There have been added to the navy during the past year, by purchase,
some thirty tugs, over fifty steamers for blockading and supply purposes,
and over twenty other vessels for tenders and store-ships. A t least twenty
o f the steamers were captured in endeavoring to violate the blockade.
THE ORDNANCE OF THE N AVY,

1 8 6 1 -6 3 .

From the record, it appears that the ordnance o f the navy, at the com ­
mencement o f 1861, consisted o f tw o thousand four hundred ahd sixtyeight heavy guns, and one hundred and thirty-six howitzers, o f the fol­
low ing calibres :
32 p o u n d e r s ................................................................. ............................
8 inch............................................................................................................
10 inch (old m od el)...................................................................................
* X inch (D ah lgren )...................................................................................
IX
inch (D ahlgren)..........................................
X I inch (D ahlgren)....................................................................................

1,872
575
27
19
305
32

H eavy guns..........................................................
24 pounders..................................................................................................
1 _• pounders..................................................................................................

2,830
29
107

Boat howitzers.........................................................................................

1*6

Exclusive o f howitzers, which were then seldom used as deck pieces
these guns were distributed in the batteries o f our ships, as follows :
In frigates.....................................................................................................
In sloops.............................................*.........................................................
In storeships.................................................................................................
In screw frigate......................................................................................... '.
First class steam sloops......................................................* ....................
Side-wheel steamers....................................................................................
Second class steam sloops.........................................................................
Third class screw steamers.................................................................... *
Steam tender................................................................................................

100
232
7
12
90
40
45
28
1

Total............................................................................................................

555

The remainder were either on board vessels in ordinary, receiving ships,
or parked in the several navy yards on the Atlantic coast; not a gun
belonging to the navy was to be found upon the Mississippi or its tribu­
* The Roman numerals are adopted by Rear Admiral Dahlgren to distinguish the
guns o f his design from the old system.




ro

Report o f the Secretary o f the N avy and

[.January,

taries, and nearly ali o f our cruisers were absent upon foreign stations.
To add to the general embarrassment experienced in every department
o f the Government and increase the difficulties o f its position, the Bureau
o f Ordnance was abandoned at this crisis by many o f those who from
long service in it, ample experience, and a thorough knowledge o f its
business, could have best served the country at that critical period.
Fortunately, however, the men who succeeded them clearly understood
the necessity for immediate action and unceasing effort to place in the
best condition and equip for/effectivo service every available gun, in order
to arm the vessels then belonging to the Government, and meet the re­
quirements o f those that were being rapidly purchased.
Consequently, the somewhat obsolete ordnance o f the old system o f
armament was necessarily placed at once in service, while, at the same
time, orders were given to the only foundries then prepared to do such
w ork to fabricate, as rapidly as possible, IX -in ch , X -inch , and X l-in ch
guns. The necessity for prom pt measures was greatly increased by the
calamity at N orfolk and the occupation o f the navy yard at Pensacola by
the insurgents, whereby a large amount o f ordnance stores and a consid­
erable number o f IX -in ch and X l-in ch guns, which then constituted the
most effective pieces in the batteries o f our ships, were lost to the navy.
The follow ing tabular statement affords a comprehensive view o f the
facts embraced in the foregoing remarks, and illustrates the rapid increase
in the number o f effective guns o f smooth bore, and the addition o f rifled
pieces, which has been made in the ordnance o f our navy:
On hand
Made On hand
Claes of gnn.

Howitzer, 12 pounder, lig h t ..
Howitzer, 12 pounder, heavy.
Howitzer, 24 pounder..............
Howitzer, 12 pounder, rifled..
32 pounders, 27 c w t .................
32 pounders, 32 c w t.................
32 pounders, 42 c w t .................
32 pounders, 46 c w t.................
32 pounders, 51 c w t .................
32 pounders, 57 c w t.................
8 inch, 55 cw t............................
8 inch, 63 c w t ............................
8 inch, 106 cw t.........................
8 inch, 90 c w t............................
10 inch, 87 cw t.........................
[ X inch D ah lgren .....................
X inch Dahlgren.......................
X I inch D ah lgren .....................
13 inch m ortars.............. ..
20 pounder Parrott...................
30 pounder Parrott..................
100 pounder Parrott................
150 pounder Parrott................
X V inch smooth b ores............
20 pounder, rifled (Dahlgren)
Total




March, ’61.

57
50
29
177
376
562
57
200
700
172
385
14
4
27
305
19
32

2,966

since. Nov. ’63.

26
208
508
325

503
10
291
200
214
237
180
60
36
13
2,811

83
258
537
325
177
376
362
57
200
700
172
385
14
4
27
808
29
323
200
214
237
180
60
36
13
5,777

1 8 6 4 .]

The Chief o f the Bureau o f Ordnance.

51

The old system o f armament is represented in this table by the class o f '
10 inch, 8 inch, and 32 pounders; the new system by the rifled pieces
and the smooth bore I X inch, X inch, and X I inch guns o f Rear Admiral
D a h l g r e n , and the rifled guns o f Mr. P a r r o t t , to which are added the
ponderous and powerful X V inch guns introduced by Assistant Secretary
Fox, as the special armament o f the Monitors and other turreted vessels.
O f the now system, it is probable that over seven hundred guns o f dif­
ferent calibres that are now in process o f fabrication will be com pleted
and added to the number given in the table by the end o f the current
year.o
In arming our vessels, the primary object has been, recently, to place
on board o f them the heaviest and, consequently, the most effective guns
which they could safely carry without reducing their speed or endanger­
in g their seagoing qualities.
The follow ing general statement o f the batteries o f vessels o f different
classes, exemplifies the manner in which the guns o f the navy are at pres­
ent distributed :
COMPOSITION OF BATTERIES.
M IN N E S O T A — F I R S T

K U T A W ---- T H I R D

RATE.

One 150 pounder, rifled, ) • ,
One X I inch, smooth.
\ Plvot'
Forty-two I X inch, smooth, 1
Four 100 pounders, rifled, >•broadside.
and two howitzers,
)
B R O O K L Y N — SE C O N D R A T E .

One tOO pounder, rifled, in pivot.
Twenty-two IX inch, smooth, )
One 30 pounder, rifled,
>■broadside,
and two howitzers,
J

RATE.

Two 100 pounders, rifled, in pivot.
Four I X inch, smooth,
)
Two 24 pounder howitzers,
>•br’side.
Two 20 pounders, bronze, rifled, )
OW ASCO— FOURTH

RATE.

One X I inch, smooth, 1 . .
One 20 pounder, rifled, \ Plv0 '
Two 24 pounder howitzers, broadside.
N IP S IO .

One 150 pounder, rifled, pivot.
Two IX inch, smooth, broadside.
Two howitzers.

The arm am ent o f purchased vessels is conditioned according to their
character, varying from fifteen guns in the
V A N D E R B IL T .

Two 100 pounders, rifled, p iv ot; twelve I X inch, broadside, and one howitzer.
In the active little tug Dandelion, two howitzers.

For the turreted iron-clads, we have in the
ROANOKE.

Two X V inch, two X I inch, and two 150 pounders, rifled.

And for the Monitors, in the
W KEHAW KEN.

One X V inch, and one X I inch.

Finally, as the representative o f an iron-clad frigate, in the
I R O N S ID E S .

Two 150 pounders, rifled ; fourteen X I inch, Btnooth ; two 50 pounders, rifled, and
two howitzers.

The armament o f the W estern gunboats, built for special service, is
shown in the
CARONDELET.

Four IX inch, four 8 inch, one 82 pounder, and two rifled guns.




Report o f the Secreiary'of the N avy and

52

[January,

Tlie large number o f light draught steamers were furnished with bat­
teries o f two, four, and six howitzers.
T o the above should be added the mortar schooners, carrying 13 inch
mortars, and broadside batteries o f 32 pounders or 8 inch guns.
PROJECTILES.

The projectiles com m only used in the navy may be divided into tw o
classes, the smooth and the rifled, and are used almost exclusively in their
respective guns.
For the smooth bores we have the shot, shell, shrapnel, grape and can­
ister, and the same for the rifles, excepting the grape and canister, which
art not generally provided. The former are spherical, the latter elonga­
ted and o f different forms and devices, as embraced in the systems o:
P a rro tt , H otch kiss , S c h e n c k , and others.
It is hardly possible to state with exactness the number o f each kind
o f projectiles on hand and available March 1, 18tfl ; but the follow ing
tabular statement may be o f interest as showing the vast amount o f all
kinds which has been made at the yards or purchased at private estab­
lishments, for the use o f the navy since that time :
CAST AT THE N AVY YARDS.

For smooth bores—
S h ot.................................
Shrapnel.........................

262,174 Grapeshot, lbs...........
37,095 Canister shot, lb s.. . .
128,600

1,322,559
5,475,084

For rifles—
Shells...............................

6,641

53,489 | Shot...................................
PURCHASED.

F or smooth bores—
Shells...............................
S h o t.................................

113,579 Shrapnel,
) ,b
7,489 Grape & canister, [

F or rifles—
Shells...............................

S h ot...................................
249,37s1 Shrapnel............................

2,637,237
29,167
19,068

GUNPOWDER MANUFACTURED.

Since March 1, 1861, there has been manufactured for the navy by the
several powder mills in the loyal States:
Pow der from foreign n itre................................................................tons
Pow der from dom estic nitre....................................................................
Purchased from individuals....................................................................

2,676
260
44

Total ton s.................................................................................................

2,980

ORDNANCE MATERIAL IN THE CONTROL OF THE W AR DEPARTMENT.

In this connection, we give the follow ing from the report o f the Secre­
tary o f W ar, showing the quantities o f the principal articles o f ordnance
materials in the control o f the department at the beginning o f the war,
the quantities o f those ar.icles that have since been procured, and the
quantities o f those articles on hand on June 30, 1863.




/

1864 .]

53

The Chief o f the Bureau o f Ordnance.
Articles.

Siege and sea-coast artillery.
Field artillery...........................
Firearms for infantry.............
Firearms for cavalry...............
Sabres .....................................
Gannon balls and shells........
Lead and lead bullets, lb s ...
Cartridges for artillery...........
Cartridges for small arms . . .
Percussion caps.......................
Friction primers.....................
Gunpowder in pounds...........
Saltpetre in pounds...............
Accoutrements for infantry. ,
Accoutrements for cavalry..
Equipments for cav’lry bora's.
Artillery harnesses, dou ble..

On hand beginning Procured
Issued since On hand for
of the war. since war began, war began, issue Juno ’63.
927
1,052
1,064
2,088
231
484
2,734
2,481
437,433
836,001
1,950,144
1,650,576
31,263
42,226
838,128
337,170
16,133
82.671
337,555
271,817
1,180,749
363,591
2,562,744
1,745,586
23,024,025
71,776,774
50,045,515
1,301,776
492,504
28,248
2,288,740
2,274,490
8,292,300 522,204,826 378,584,104 151,013,012
19,808,000 749,475,000 715,036,470
74,246,530
1,005,629
7,004,709
84,425
6,082,505
1,463,874
13,424,363
1,110.584
13,071,073
8,155,079
2,923,348
5.231,731
162,010
10,930
1,831,300
1,680,220
194,466
196,298
2,498
4,320
5,582
574
216,658
211,670
586
1,767
18,666
17,485

EXPENSES AND ESTIMATES.

The follow ing are the expenses for the year, and the Secretary’s esti­
mates for the com ing year :
The appropriations made for the fiscal year ending
June 30, 1863, w ere.................................................... ! .
Expenses o f the department during the same tim e ...
Leaving an unexpended balance o f

$71,587,052 00
63,211,105 27
$8,375,946 73

This amount will, however, be absorbed in the com pletion and arma­
ment o f vessels under contract, and the payment o f other liabilities in­
curred prior to the close o f the fiscal year.
The expenditures have embraced, besides the ordinary disbursements
for the naval establishment, the construction in whole or in part, and the
repair, o f seventy-one iron clad vessels on the Atlantic and Western
waters, the purchasing, repairs, and alterations o f three hundred and
sixty vessels, as well as the charter money for the ordinary service, and
for the search after piratical vessels on the coast.
The estimates submitted for the fiscal year ending June 30, 1864, are
as follo w s:
Pay o f the n avy....................................................................
Consumption and repair o f steam m achinery..............
Construction and repair o f vessels...................................
Construction o f armor plated sea steamers...................
Ordnance and m a ga zin es....................................................
Fuel, hemp, arid equipment o f vessels............................
Provisions and clothing........................................................
Contingent and miscellaneous....................................... ....
Navy yards and superintendents.......................................
Marine corps...........................................................................
Surgeons’ necessaries and hospitals.................................
Tables o f navigation, nautical instruments, and Naval
A cadem y..............................................................................
T ota l..........
VOL.

l.—

NO. i.




$19,423,241
39.363.000
32.575.000
19.600.000
8,603,946
7,540,000
6,915,605
3,869,850
2,558,448
1,445,321
358,500

00
00
00
00
00
00
00
00
00
85
00

366,873 55
$142,618,785 40

54

Synopsis o f the Postmaster-General's Report.

[January,

These estimates are, as the Secretary says, large, but they are made
upon a war basis, and the present extraordinary cost o f materia! and labor
renders a corresponding increase o f estimates necessary. On the assump­
tion that the war will continue— and no other rule is a safe one— large
additions are to be made to our naval force, and the hard service to which
all our squadrons are subjected makes the repairs and refitment expensive.
PRIZES.

On this subject the Secretary says :
The number o f vessels captured by the squadrons and reported to the depart­
ment to the 1st o f November, is 1,045, classified as follow s: schooners,547 ; steam­
ers, 189 ; sloops, 181 ; brigs, 80 ; barks, 26 ; ships, 15 ; yachts and small boats, 117.
This is exclusive of a large number destroyed on the Mississippi and other rivers
and on the coast. A table giving their names, dates of capture, and other particu­
lars, is appended to this report.
A t the close of the war o f 1812 there were 301 vessels, including armed gunboats
and tenders, in the navy, and the entire number of captures of armed and unarmed
vessels made by them was 291. Five hundred and seventeen commissioned priva­
teers were afloat during the war, and their captures numbered 1,428— making the
total number of captures by public and private vessels 1,719.
The value of prizes sent to the courts for adjudication since the blockade was es­
tablished is not less than $13,000,000. The value of those already condemned, and
o f which notice has been received at the department, is $6,538,083 4 0 ; the expenses
have been $607 407 64, leaving for distribution $5,897,970 36, as appears by the
following table:
No. o f
cases.

Gross amount
o f sales,

B o s to n ......................................
13
$864,822
New Y o r k ................................
89
2,218,263
Philadelphia............................
57
*1,859,434
Kev W e s t ................................
71
1,432,952
Washington..............................
44
72,091
Illinois.............................................
11
91,619
Total ................................

285

15
29
78
30
62
28

$6,538,683 40

Costs anti
expenses.

$26,188
281,162
149,806
133,291
11,966
5,993

44
07
06
55
12
40

$608,407 64

Net amount for
distribution.

$839,133
1,937,735
1,670,512
1,304,053
60,909
85,625

71
21
97
51
08
88

$5,897,970 36

One-half of the net proceeds arising from the sale o f prizes is by law s$t apart as a
fund for. the payment of naval pensions. The pension roll on the 6th o f November
last amounted to $159,812 55, and the estimated increase during the remaining
eight months of the fiscal year is $32,570. The moiety of prize money dedicated
as a pension fund, and now accumulating, should be made a permanent investment
in registered government securities. Were such the case, it is believed that the an­
nual interest would be sufficient to meet all liabilities for naval pensions. A t least
$2,500,000 can now be invested without interfering with the prompt payment of
pensions. I recommend that the fund now on hand be made permanent, and that
hereafter, whenever the amount shall reach $109,000, at least one-half shall be in­
vested in registered government securities bearing six per cent interest.

SYNOPSIS OF TIIE POSTMASTER-GENERAL’ S REPORT.
T h e Postmaster-General reports that during the last fiscal year the finan­
cial condition o f his department has beeu one o f unusual prosperity. The
revenue has nearly equalled the expenditures, the latter amounting to
$11,314,206 84, and the former to $11,163,789 59. There is g ood rea­
son to believe that the department will be self-sustaining in a brief period
o f time.
» The sum of $39,115 78 allowed to claimants by decree o f court




1864.]

Synopsis o f the Postmaster- General's Report.

56

The whole number o f post offices existing on the 30th o f June, 1863,
was 29,047, being an increase on the preceding year o f 172. Eight hun­
dred and thirty offices have been established, and 658 have been discon­
tinued.
The number o f special agents on June 30, 1863, was 16, with an ag­
gregate salary o f $ 2 6 ,5 0 0 ; and 387 route agents, at an aggregate salary
o f $289,260 ; also 45 local agents, at $27,824. Baggage masters in charge
o f express mails had received $7,440.
The total cost of transatlantic mail steamship service, was $332,184.
This price covered one hundred and thirty-two round trips to various Euro­
pean ports.
The Postmaster-General regrets to state that no progress has been made
in negotiations for a new postal convention with Prussia, embracing the
States comprising the German Austrian Postal Union, on account o f some
obstacle presented by Austria in regard to territorial transit charges.
H e renews his recommendation o f March 3, 1862, to the postal commit­
tees in Congress, that all private ships departing from the United States for
foreign ports should be required, as a condition o f clearance, to convey
mails on such terms as mav be allowed by Congress.
During the year the increased length o f routes has been 5 ,5 8 5 ; but the
annual cost o f mail transportation has decreased $113,258, or about two
per cent.
The value o f stamps issued to postmasters during the year is $9,683,382,
stamped letter envelops $634,821, and stamped newspaper wrappers, $20,545.
The total value o f these sold to the public was $9,624,529, being an excess
over the previous year o f $2,714,397.
The Postmaster-General renews his last year’s recommendation to Con­
gress to authorize him to adjust and allow the claims o f postmasters who
have sustained losses o f stamps and stamped envelops by reason o f the
occupation and robbery o f their offices by bodies o f armed men.
These claims thus far presented amount to about $6,000. He calls at­
tention also to the fact that these postmasters have suffered greatly in the
loss o f private property.
He requests additional legislation in respect to post office thefts, and re­
commends that the stealing of letters and stamps be made a penal offence.
THE DEAD LETTER O FFICE.

There has been a continued increase o f letters, containing money and
other valuables. The number o f dead letters covering deeds, bills o f ex ­
change, drafts, and other valuable papers, received, registered, and returned
for delivery to the writer was 8,322, with an aggregate nominal value o f
$1.544,277— of these 7,559 were delivered to the owners.
L ettcs registered and mailed containing money numbered 18,219. O f
these 15,048, containing $63,627, were finally delivered.
Sixteen thousand seven hundred and sixty-three letters o f less value were
received, nearly 10,000 o f which contained daguerreotypes, and 8,273 were
returned to their writers or owners.
The Postmaster General recommends that a postal order money system
be established to facilitate the transmission of small sums through the mails,
which he is confident would prove not only a great convenience to soldiers
and citizens, but almost entirely obviate the loss o f this class o f remittances.




Treasurer’s Report o f the States in Rebellion.

56

[January,

In i•egard to letters addressed to points in the rebellious States, the Post­
master-General says: “ B y reason o f the continued, suspension o f regular
postal communication with sections o f the country under insurrectionary
control, a considerable number of letters, amounting in the aggregate to
24,314, found their way, by various channels, to the Dead Letter Office.
O f this number 3,312 were foreign, and were returned to the countries
where they originated. Those originating in the loyal States were turned
over to the military authorities, and, after examination, most of them sent
by flag o f truce to their destination.
The Postmaster-General has instructed postmasters to forward to the
Dead Letter Office, except in special cases, all letters remaining unclaimed
one month after being advertised, instead of two months as formerly.
In conclusion, he asks the consideration o f Congress o f the revised code
o f laws submitted by him at the last session, which is mainly a digest of
existing postal laws.

TREASURER’S REPORT OF THE STATES IN REBELLION.
T he following extracts taken from the Treasurer’s report o f the Confede­
rate States is full o f instruction, and shows the wisdom o f all we have said
in these pages respecting the danger o f Government paper issues. Owing
to our greater wealth and resources we have as yet been able to stand up
under the unfortunate financial policy that has been pursued. But can we
do so if this war is to be continued two or three years longer and our paper
money correspondingly increased ? W e tire extremely glad to see that
Secretary C h a s e , in his last report, states that it is his determination here­
after to raise by taxation and by borrowing what we need, and we trust
this course will be pursued.
W h en the war broke out we advised to tax
the wealth and the productions o f the country to an amount sufficient each
year to pay at least half o f the expenses which the war would be likely to
bring upon us, and then to raise the balance by going into the market and
borrowing. A moderate amount o f treasury notes might have been issued,
perhaps, without raising prices, for the increased expenditures o f the G ov­
ernment made room for increased currency. Still, that time is past, and
now all we can do is to provide against future expenditures. W e should act
on the supposition that this war is to be carried on two or three years
longer; for if we do not so act and the war does continue, our system will
be as flat as is that o f Mr. M em m in g r ’ s , and its fall will prostrate, as it ha3
in the South, the vital interests o f the whole country.
W e do not see, however, how the Southern Congress can solve the pro­
blem they have before them.
Their Government is, certainly, financially
in a very bad condition. Taxation, and that o f the most positive charac­
ter, can alone relieve them, and this will sorely try the earnestness and
ability o f their people the com ing year. W e hope these additional sacri­
fices, thus to be met, will lead them to conclude that peace is better than
war.
The following are the receipts and expenditures o f the States in rebellion,
with the funded and unfunded debt for the past year, exclusive o f the for­
eign loan for the same period :




1 8 6 4 .]

T reasurer's Report o f the Slates in Rebellion.
RECEIPTS FROM JANUARY

1

TO SEPTEMBER

57

30, 1863.

For eight per cent sto ck ...........................................................
For seven per cent stock............ .................... (.........................
For six per cent sto ck ................................................................
For five per cent call certificates.......................................
For four per cent call certificates...............................................
Cotten certificates, act April 21, 1862.................................
Interest on loans.........................................................................
W ar ta x ..........................................................................................
Treasury n o t e s ............................................................................
Sequestration................................................................................
Custom s..........................................................................................
Export duty on cotton..................................
Patent fund...................................................................................
Miscellaneous, including repayments by disbursing officers
T ota l.....................................................................................

$107,292,900
38,737,650
6,810,050
22,992,900
482,200
2,000,000
140,210
4,128,988
391,623,530
1,862,556
934,798
8,101
10,794
24,498,217
$601,522,893

EXPENDITURES DURING SAME PERIOD.

W a r Departm ent.........................................................................
Navy Departm ent.......................................................................
Civil, miscellaneous, e t c .........................................................
Customs..........................................................................................
Public d e b t...................................................................................
Notes canceled and r e d e e m e d ................................................

$377,988,244
38,437,661
11,629,278
56,636
32,212,290
59,044,449

Total ex p en d itu res...........................................................
Total o f receipts................................................................

$519,368,559
601,522,893

Balance in treasury......................................................
From which is to be deducted the amount o f treasury
notes which have been funded and brought in for can­
celation, but have not yet been regularly audited, es­
timated.......................................................................................

$82,154,334

Total.......................................................................................

$17,154,334

65,000,000

The public debt (exclusive o f the foreign loan) at the same period was
as follow s:
FUNDED.

E ight per cents............................................................................
Seven per cents............................................................................
Six per cen ts..........*.....................................................................
Six per cent cotton interest b o n d s .. '....................................

$207,128,750
42,745,600
41,006,270
2,035,000

Total.......................................................................................

$292,915,620

UNFUNDED.

Treasury notes :general cu rren cy...........................................
Tw o-year notes...........................................................................
I nterest notes at 3 .6 5 ................................................................




$603,632,798
8,477,976
627,450

58

Treasurer's Report o f the States in, Rebellion.

[January,

Interest notes at 7 .3 0 ................................................................
U nder $ 5 ____A.............................................................................
Five per cent call certificates ..................................................

$122,582,200
4,887,095
25,240,000

Total.......................................................................................
D educt amount o f treasury notes funded and canceled.

$706,447,519
65,000,000

Total.......................................................................................

$701,447,519

In order to estimate tlie amount o f treasury notes in circulation at the
date o f this report, there must he added the further sum o f one hundred
millions for the two months which have elapsed since the date o f the
above schedules.
The balance o f appropriations already made by Congress, and not
drawn on September 30, stood as follow s:
W a r departm ent..........................................................................
N avy department.........................................................................
Civil, miscellaneous, e t c ...........................................................
Custom s..............................................................................................
Total...................................................... .................................

$395,502,698
24,413,645
56,240,996
294,460
$476,451,799

The estimate submitted by the various departments for the support o f
the government, are made to 1st July, 1864, the end o f the fiscal year,
and are as follow s:
Legislative d ep a rtm en t.........................................................
Executive
“
Treasury
“
W ar
“
N avy
“
Post-office
“
State
“
Justice
“

$309,005
52,350
22,583,359
438,078,870
13,624,945
8,908
544,409
222,587

T ota l...................................................................................

$475,498,493

I f these estimates be extended to embrace the remaining six months
o f the calendar year, they must be doubled, and that sum added to the
undrawn appropriations would make an aggregate o f $1,427,448,778.
Mr. O ldham o f Texas submitted to the Rebel Senate, on the 22d o f
December, a plan o f financial relief, the main feature o f which is the levy
o f such a tax as will extinguish a large portion o f their debt. For in­
stance, he proposes a tax o f fifty per cent on all outstanding Treasury notes,
and a certain other tax on all Governm ent securities, on the ground that
the amount left after the tax would be worth as much as the whole is
now. This plan is similar to that suggested by J e f fe r so n D a v is in his
message.




1 8 6 4 .]

A r e U nited S tates T rea su ry N otes a L eg a l T en d er?

59

ARE UNITED STATES TREASURY NOTES A IEGAL TENDER ?
DECISION OF THE COURT OF APPEALS OF NEW YORK.
AVe have already announced the decision o f the Court o f Appeals o f
New Y ork State, holding that Congress had the power to declare treas­
ury notes lawful money, and to make them a legal tender. This question
has now been carried to the Supreme Court o f the United States, and in
order that our readers may fully understand the points at issue and ex­
amine and weigh for themselves the arguments used, we give this month
the opinion o f tw o o f the judges o f the Court o f Appeals, to w it: that
o f Justice B a l c o m , in favor of, and Justice D e n i o against the conclusion
o f the court. W e should be glad to give the opinions o f the other judges,
but their great length prevents our doing so. It will be remembered that
in July last we published opinions o f two o f the justices o f the N ew Y ork
Supreme Court on this same question.
LEWIS II. MEYERS, Plaintiff and Appellant v s . JAM ES J. ROSEVELT, Defendant and
Respondent.

The facts o f the case are as fo llo w s: The defendant held a bond and
mortgage, that the plaintiff had obligated himself to pay, and which be­
came due in August, 1857. They were given to secure the repayment
o f a loan o f $8,000, made by the defendant in gold, or its equivalent, in
1854.
In June, 1862, the plaintiff, desiring to pay and discharge the mort­
gage, tendered to the defendant $8,170 (being the full amount o f princi­
pal and interest due on the same), in notes o f the United States, issued
under the act of Congress, approved February 25, 1862, entitled “ An
act to authorize the issue o f United States notes, and for the redemption
and funding thereof, and for funding the floating debt o f the United
States.”
The defendant refused to receive the same, as legal tender, and claimed
that the repayment should be made in gold coin o f the United States, as
being the money in which the loan was made. But he received the notes
conditionally, under an agreement with the plaintiff, that the question,
whether said notes were a legal tender in payment o f the mortgage debt
and interest, should be submitted .to the cou rt; and if the court should
decide that said notes were a legaktender and discharge of said bond and
mortgage, then the defendant should deliver up said bond and mortgage,
and acknowledge satisfaction thereof, and discharge the same o f record.
But if the court should decide otherwise, the plaintiff should pay to the
defendant the further sum of $326.78, with interest from the 11th day o f
June, 1862, to entitle him to the bond and mortgage and to have the
same canceled o f record.
The Supreme Court held that the United States notes were not a legal
tender in payment o f said m ortgage d eb t; and that the plaintiff must pay
the defendant the further sum o f $326.78 and interest from the 11th day
o f June, 1862, and gave judgm ent accordingly in favor o f the defendant,
The plaintiff appealed from the judgm ent to this court.




60

Are United Slates Treasury Notes a Legal Tender ? [January,
O P IN IO N OP JU D G E BALCOM,

HOLDING THAT UNITED STATES NOTES ARE A LEGAL TENDER, AND REVERSING
THE JUDGMENT OF THE SUPREME COURT.
B a l c o m , J. The bond and mortgage which the plaintiff offered to pay
to the defendant, in notes o f the United States, were given to secure the
repayment o f a loan o f 18,000, made in gold or its equivalent, in 1854.
The borrower was to pay the interest thereon semi-annually, and the prin­
cipal in August, 1857. The plaintiff obligated himself to pay the bond
and m ortgage; and the question in the case is, whether he could dis­
charge the same by a tender o f the amount due thereon in notes o f the
United States.
The notes tendered were issued under and by virtue o f the act o f Con­
gress, approved February 2 5 ,1 8 6 2 , which authorized the Secretary o f
the Treasury o f the United States, to issue on the credit o f the United
States, one hundred and fifty millions o f dollars o f United States notes,
not bearing interest, payable to bearer, at the treasury o f the United
States, in denominations not less than five dollars; and the act declares
that such notes “ shall be lawful m oney, and a legal tender in payment
o f all debts, public and private, within the United States,” except duties
on imports and interest on certain bonds o f the U nited States.
The principal point made by defendant’s counsel is that Congress had
no authority to pass this a c t ; and the principal questions in the case are,
whether Congress has power to make anything but gold and silver coin
a tender in payment o f debts, or to pass any law impairing the obligation
o f contracts.
I agree that Congress does not possess this power if it is not conferred
upon it by the Constitution o f the United States; for whatever power or
authority it has is granted to it by that instrument.
The Constitution expressly confers power upon Congress “ to borrow
money on the credit o f the United States;” “ to coin money, regulate
the value thereof and o f foreign c o in ;” “ to declare war, grant letters o f
marque and reprisal, and make rules concerning captures on land and
w ater;” “ to raise and support arm ies;” “ to provide and maintain a
n av y;” “ to provide for calling forth the militia to execute the laws
o f the U nion, suppress insurrections, and repel in vasions;” and “ to
make all laws which shall be necessary and proper for carrying into
execution the foregoing powers, and all other powers vested by this Con­
stitution in the government o f the United States, or in any department
or officer thereof.” (Cons. art. 1, § 1.)
It declares that, “ the United
States shall guarantee to every State in this Union a republican form o f
government, and shall protect each o f them against invasion.” (A rt. 4,
§ 4.) A lso that “ this Constitution and the laws o f the United States
which shall be made in pursuance th ereof; and all treaties made, or which
shall be made under the authority o f the United States, shall be the su­
preme law o f the la n d ; and the judges in every State shall be bound
th ereby; anything in the Constitution or laws o f any State to the con­
trary notwithstanding.” (Art. 6, sub. 2.)
The Constitution authorizes the formation or erection o f new States
within the jurisdiction o f others; and also the formation o f new States
by the junction o f two or m ore States, or parts o f States, by the consent
o f the legislatures o f the States concerned as well as o f the Congress.




1864.]

Are United States Treasury Notes a Legal Tender?

61

(A rt. 4, § 3.) All the States (subject only to this exception), must for­
ever remain in the Union in the same shape they were admitted. N o
right o f secession is reserved to any State, or its citizens, by the Consti­
tution, and none can be implied or spelled out from its provisions or his­
tory, or by the application o f any principle o f public law. The Union
is indissoluble except by an amendment o f the Constitution, or its abro­
gation, in a legal manner.
The doctrine that the federal Constitution is but a com pact between
the States, and that any State can lawfully withdraw from the Union by
a legislative act o f such State, or a resolution o f a convention o f its peo­
ple, heeds no special notice. It is almost as absurd as the idea that the
Constitution of a State is a mere com pact between counties, and that a
county can secede from a State governm ent at the pleasure o f the inhab­
itants o f such county.
I have enumeratecUbut a small number o f the powers specifically grant­
ed to Congress and the governm ent o f the United States by the Consti­
tution. But I think I have mentioned enough to show that the Consti­
tution provides a strong government, which has the right o f self-preser­
vation, against all unlawful combinations or revolutionary proceedings
for its overthrow. And no one can doubt that an army and navy, as well
as the militia o f the several States, are lawful and constitutional means,
when others are insufficient, for putting down a rebellion and preserving
the Union. The authority to call forth the militia to execute the laws o f
the Union, suppress insurrections and repel zffiyastotts, implies no prohi­
bition against em ploying the.arjny and nayy-Tdg^ucb/fSurposes ; nor does
it im ply that the militia eaSwictt jj£.."tiSed f e V ’supjjresfejsf^ J’ reb.ejlian. as .
well as a mere insurrection.- A "vxmferapy 3biott-ind.wo3jfi:(;nj»[ve>’ t5e|^3vV
eminent o f the United States almost a^./esble .as. tlm .ojd , confederation'
was, which was abandoned by reason of'itslyyjajcn^ss.; 1 : i *.*
These views are entirely consistent "with 'alf 'l&glfinia’te Skftte rights.
They only make such rights subordinate to certpiii gf$at (towers that the
people granted to Congress and the national goJ/eiJnVjtfnt, by the adoption
o f the Constitution o f the United States, in order to form a more perfect
union, establish justice, ensure dom estic tranquility, provide for the com ­
mon defense, prom ote the general welfare, and secure the blessings of
liberty to themselves and their posterity. (Pream ble to Const.)
N o State can coin m on ey; make anything but gold and silver coin a
tender in payment o f debts; or pass any law impairing the obligation of
contracts. (A rt. 1, sec. 10, sub. 1.) But Congress is not prohibited from
doing either o f these things, although it is prohibited, as well as the
States, from passing any bill o f attainder, or ex post fa cto law, or grant­
ing any title o f nobility. (A rt. 1, §§ 9, 10.)
A t the time the act in question was passed, the legislatures, or conven­
tions, in nine States o f the Union, had adopted pretended ordinances of
secession from the Union ; and a large portion o f the inhabitants o f such
States, if not a majority o f them, were in open rebellion against the g ov­
ernment o f the United States, and at least three hundred thousand o f
them were armed and doing all they possibly could to overthrow such
governm ent; and their numbers were rapidly increasing.
So formidable a rebellion had never been known ; and the means to be
provided for its suppression were necessarily greater than any government,
ancient or modern, had ever furnished suddenly for any purpose. It fore-




62

A r e U nited S tates T rea su ry N o te s a. L e g a l T ender ?

[J a n u a r y ,

bode the greatest and bloodiest civil war the world has ever seen. The
very existence o f the Union was imperiled and at stak e; and the ques­
tion that agitated all minds was, can the federal governm ent be main­
tained, or must it be overthrown by the wickedest and most groundless
rebellion ever organized in any age or country.
*
These facts show that a navy o f unprecedented magnitude and an army
o f at least half a million o f soldiers, besides the militia o f the several
States, were necessary to preserve the government, maintain the Consti­
tution, and excute-laws o f the Union.
Congress had the authority, and it was its duty, to provide and main­
tain such a navy— to raise and support §uch an army, and to provide for
calling forth the militia. But such a navv could not be provided and
maintained, or such an army raised and supported, and the expense o f
calling forth and supporting the millitia defrayed, without adequate pe­
cuniary means and without the expenditure o f vastly more money than
could have been borrowed in the entire world.
Could Congress have been justified, by the Constitution, if it had per­
mitted the republic to perish, because enough gold and silver coin could
not be borrowed to save it ? I answer n o ; and the Constitution itself
answers no.
The Constitution plainly requires Congress to pass all laws which were
necessary and proper for raising, maintaining, and supporting a navy and
armies, large enough and powerful enough to put down the rebellion, and
preserve the Union and the Constitution. A nd when Congress could not
do all this without making the not^s o f the United States a legal tender
in payment -of private, as well as public debts, it was its duty to do that,
even though the -act ’ nipai fed fhe obligation 6 f contracts.
It seems to me to be very plait! that the Constitution authorizes Con­
gress to pass such a" law whenever necessary and proper for raising, main­
taining, ancl snpportifi'g'a‘navy arid armies to maintain the Union, pre­
serve the ConstitutiyStJ siqu execute the laws o f the United States. And
the word necessary,'in'tihisieonnection, may mean needful, requisite, essen­
tial, or conducive to. (McCulloch v. The Slate o f Maryland , 4 W h ea­
ton, 316 )
It is not probable that such an act will ever be deemed necessary or
proper in time of peace ; and the one in question will undoubtedly be
repealed, and the notes issued under it called in. and a metallic currency
restored, as soon after the present rebellion shall have been suppressed,
as the interests o f the people shall require, or as such a course will con ­
duce to the general welfare.
W hether this act was necessary and proper at the time it was passed,
was for Congress to determine. But I do not doubt that it judged cor­
rectly and wisely when it determined this act was necessary and proper
in view o f the then existing condition o f our national affairs. That it
judged wisely in passing this act the astonishing success that has attend­
ed its execution fully proves.
N o nation has ever succeeded so well
financially, in any great war, as the United States has in this, by reason
o f this law. All loyal citizens have prospered pecuniarily from the time
it was passed. Such a thing as pecuniary distress, in the loyal States, on
account o f the war, or by reason o f the financial measures o f the g ov ­
ernment-, has not been heard of.
W ith ou t this law there must have been the most terrible distress




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throughout the land.
W e should have had the most frightful intestine
com m otion s; anarchy would have taken the place o f law and order in
our cities and most populous towns. A nd it is probable the republic it­
self would have been subverted ere now, or have becom e too.w eak to bo
respected by other nations, if this law had not been passed.
I cannot doubt, as the States only are prohibited by the Constitution
from m aking anything but gold and silver coin a tender in payment of
debts, or from passing any law impairing the obligation o f contracts, that
Congress may enact that the notes o f the United States shall be a legal
tender in payment o f debts, and designate such notes lawful money ; and
also pass laws impairing the obligation o f contracts, whenever such laws
are necessary and proper for carrying into execution any o f the powers
expressly conferred upon Congress, or vested in the governm ent o f the
United States by the Constitution.
And as this act was necessary and
proper for carrying into execution powers expressly granted to Congress
by the Constitution, to w it : the powers to borrow money, to raise and
support armies, to provide and maintain a navy, to provide for calling
forth the militia to execute the laws o f the Union and suppress insurrec­
tions, Congress had pow er to pass it, unless it is an ex post facto law, or
deprives persons o f property without due process o f law, as to which I
shall soon speak.
I will not say this law could not be sustained on the broad ground that
the government o f the United States has the right o f self-preservation,
and that it was necessary for that purpose. N or shall I hold that C on­
gress was not authorized to pass it, by virtue o f the power granted to it
to coin money and regulate the value thereof. A very able argument
has been made by one o f the defendant’s counsel, to show that this power
authorized the passage o f this law% in which he quotes from Blackstone,
that “ money is an universal medium, or common standard, bv com pari­
son with which the value o f all merchandise may be ascertained; or it
is a sign which represents the respective values o f all commodities.” (1
Blk. Com., 2'76.) But it is unnecessary to determine these questions and
I will not express any opinion respecting them.
This act is not an ex post facto law.
For it is well settled that the
phrase “ ex post facto laws ” is not applicable to civil laws, but only to
penal and criminal laws. ( Watson v. Mercer, 8 Peters’ Rep., 89.)
N or is this act in conflict with the constitutional inhibition against de­
priving persons o f property without due process o f law. (Amendments,
art. 5.) It does not deprive any person o f property, although it requires
creditors to take notes o f the U nited States in payment o f debts, which
their debtois had previously agreed to pay in gold or its equ ivalent: for
it makes such notes as valuable as gold coin, in the hands o f every per­
son receiving them, for all com m ercial purposes, and for the payment o f
all debts, except those for duties on im ports; and this exception is too in­
significant to justify a holding that the act deprives persons o f property
in any legal sense o f the term. I o f course lay out o f view the fictitious
difference created by brokers and speculators between the value o f gold
coin dnd such notes, as having no legitimate bearing upon the question.
That difference cannot be regarded, because it is not recognized by law ;
and all agreements to pay any such difference are utterly void.
A judgm ent cannot be recovered for more than one thousand dollars,
besides interest, for the wrongful conversion o f one thousand g old d ol­




A re United States Treasury Notes a Legal Tender ?

64

[January,

lars, whatever premium may he paid therefore at the board o f brokers in
the city o f New Y ork or elsewhere, and such a judgm ent may be paid,
dollar for dollar, in notes o f the United States.
Each five.dollar note, issued under this act, is precisely o f the same
value, in legal contemplation, as a piece o f gold coin o f the denomina­
tion o f five dollars; and if all citizens would strictly observe this law, as
they should, any person could obtain five dollars in gold coin for one o f
these notes at any place where such coin is to be had.
If a promissory note should now be given for one hundred dollars, for
a loan o f twenty o f these notes, and this law should be repealed before
the repayment o f such loan, the person making the loan could exact one
hundred dollars and interest, in g old and silver coin in satisfaction o f the
debt.
This law must be judged as if every person lived up to it and had full
faith in the ability and willingness o f the federal governm ent to pay these
notes in coin and to maintain itself under all conceivable, circum stances;
and when it is judged in this manner, it does not deprive any person o f
property in a legal sense o f the term.
I have not deemed it either necessary or expedient to g o into the his­
tory’ o f the Constitution, or to refer to the debates o f the convention that
framed it ; or to cite many authorities to sustain the foregoing positions
or conclusions. They seem to me to be so clearly correct and so well
grounded in g ood sense, that such labor is wholly unnecessary.
I will, however, remark that there is nothing in the history o f the
Constitution, or in the debates o f the convention that framed it, or in
any book o f authority, in conflict with the views and conclusions I have
expressed.
F or these reasons I am. o f the opinion the act o f Congress, approved
February 25, 1862, is not repugnant to any provision of the Constitution
o f the United States, and is valid.
It follows that the judgm ent o f the Supreme Court, in the case, should
be reversed, and one given for the plaintiff, declaring that the notes of
the United States, issued under such act, were and are a legal tender in
payment o f the defendant’s bond and mortgage, and that he deliver the
same to the plaintiff to be canceled, and acknowledge satisfaction of
the mortgage and cancel the same o f record, and that the plaintiff re­
cover the costs o f the appeal to this court.

O P IN IO N OF JU D G E D EN IO ,
HOLDING THAT UNITKD STATES NOTES ARE NOT A LE G A L TENDER.

C. J. The subject o f private contracts, em bracing the manner
in which they may be made, and in which they may be discharged, lies
within the domain o f State legislation. The States were distinct politi­
cal communities at the formation o f the Constitution, retaining, notwith­
standing the confederation under which they associated during the Revo­
lutionary contest, nearly all the powers o f municipal governm ent and
local administration. It was not the system o f the Constitution to abolish
or materially abridge these powers o f the State governments, though
they were subjected to some important restraints and qualifications, all
D

e n io ,




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65

o f which, however, assume, so far as private contracts between citizen
and citizen are concerned, the general jurisdiction o f the States over the
subject. Contracts when once made in conformity to the laws o f the
State, cannot, according to a provision o f the Constitution o f the United
States, be impaired by State legislation. But it may be done by Congress
incidentally. Under the power to establish a uniform system o f bank­
ruptcy, for example, debtors may be discharged from their obligations,
through the agency o f the general government. N or is this all. Many
express powers o f great importance, and which were considered, and were
in fact necessary to the existence and perpetuation o f the national g ov ­
ernment, were conferred upon C ongress; which was, moreover, invested
with the pow er to make all laws which should be necessary and proper
for carrying these powers into execution.
In exercising these federal
powers, it has sometimes happened, and- it may occur again in more ways
than can be enumerated or anticipated., that the pecuniary and business
arrangements o f citizens may be interfered with, and their contracts,
though lawfully valid when made, may be annulled or modified. Under
the power to regulate com m erce, and to declare war, acts may becom e
impossible or unlawful, which were before legitimate subjects o f business
stipulations, and in respect to which such stipulations had been actually
entered into. These are the necessary results o f another provision o f the
Constitution which declares, in effect, that itself, and the laws o f the U ni­
ted States made in pursuance o f it, and public treaties, shall be the su­
preme law o f the land, and shall prevail against the State Constitutions
and laws, when in conflict with them. But with these qualifications, the
whole subject o f private property, its acquisition and forfeiture, its mode
o f enjoyment and transmission between living persona, and its devolution
by- will and upon intestacyq and all executed and executory contracts re­
specting it, are left to be regulated wholly by the laws o f the respective
States.
It seemed necessary to state these principles, for, although no question
lias been made respecting them, they have an important bearing upon
the controversy which we are called upon to decide, and indeed, form the
basis o f all ju st reasoning, upon the powers o f the general government.
The mortgage executed by B o w n e and his wife to the defendant, the
alleged payment o f which was in question in this case, was a lawful c o n ­
tract by which real estate in this State was conveyed to the latter to se­
cure the payment o f a certain amount o f money. It is stated to be pay­
able in lawful mouey o f the United States o f Am erica, but I lay no stress
upon that expression. It was a security for the payment o f money, and
that is all which seems to me important.
The lands thus conveyed by
way o f mortgage, have been transferred to the plaintiff' subject to the
lien ; and he claims a right to pay the debt and redeem the incumbrance,
by giving to the creditor, the defendant, an amount equal to the princi­
pal and interest, in the treasury notes o f the United States, issued pur­
suant to the late act o f Congress. The defendant refuses to accept these
notes as payment, and the question is, whether he is com pellab'e by law
to do so. The contract was a valid one under the laws o f this State, and
it calls for the payment o f a certain sum o f money. The question as to
what shall amount to payment or performance, isrprima facie, one which
is to be determined by the State laws.
The federal Constitution, which
is a part o f the law o f the State, prohibits anything being made a tender




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[J a n u a r y ,

in payment o f debts, by State authority, but gold and silver coin. It is
clear, therefore, that the offer o f the treasury notes was not a lawful ten­
der o f payment, unless the act was a legitimate measure for the execu­
tion o f one or more o f the powers which the Constitution has conferred
upon Congress.
That act declares in express terms, that the treasury
notes o f the class which were offered to the defendant, shall be lawful
money and a legal tender for all debts, public and private, within the
United States, except duties on imports and interest on governm ent bonds
and notes. (37th Cong., 2d sess., ch. 33, § 1.)
The single question in
this case is, whether Congress had the constitutional right to enact this
la w ; and that depends upon a comparison o f its provisions with the
powers with which the Constitution has clothed Congress. The problem
to be determined is, whether the relation of means and end exist between
them.
I shall confine myself to that feature o f the law which provides
for forced payment o f private debts; for it is not doubted by any one but
that the government may declare its own obligations receivable in pay­
ment o f debts due to itself.
It has been argued that there is no warrant in the Constitution for the
issue o f federal securities for the purpose o f being used as a currency,
though unaccompanied with a provision making them a legal tender
am ong individuals. If this position could be established the notes which
were tendered in this case, being illegal, would be ineffectual for any pur­
pose. In the view I have been com pelled to take o f the principal ques­
tion, this subordinate one is not necessary to be considered. It is proper,
however, to say that it could scarcely becom e a judicial question in any
case. The right to issue the obligations o f the government for money
borrowed or for property or services furnished for national purposes is
not and cannot be questioned.
The form and denomination o f such se­
curities are matters which belong to the discretion o f the government
making th e m ; and if an issue could be raised upon the intent to have
them circulate as the representative o f money, I should still think that it
would be legally unobjectionable to so accommodate them to the business
wants o f thp community, as to make it the interest o f successive holders
to continue them in circulation, and thus benefit the treasury by defer;
ring the time o f their presentment for payment. It has been urged that,
such issues o f paper would be an emission o f bills o f credit, as under­
stood at the time the Constitution was framed, and that the making of
them was expressly forbidden to the States and not com m itted to C on ­
gress. In support o f this view it is shown that an express authority to
issue such paper was at one time inserted in the draft o f the Constitution,
in connection with the power to borrow money, but was stricken out on
the motion o f a deputy from N ew Y ork. Upon an examination o f the
extract from the debates which was referred to in the argument, I am o f
opinion that it cannot be affirmed that this change was made from an in­
tention positively to prohibit the issue o f such obligations, but that it was
done from the apprehension that if the pow er to make them was express­
ly conferred, the legislature might, under the idea o f declaring their ef­
fect, have engrafted upon them the quality o f a legal tender. If the au­
thority was left as an incident to the power to borrow money, purchase
property, or pay debts, no such consequence, it was thought, would fol
low . If it had been designed to prohibit their issue, under any circum ­
stances, bv the governm ent o f the Union as well as by the States, it is *




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Are United States Treasury Notes a Legal Tender ?

67

presumed that a similar prohibition would have been applied in terms.
If the effect o f this debate was different from what I conclude it to be, I
should still hesitate to allow it any considerable weight in construing the
Constitution. The only safeway, in rhy opinion, to deal with that instru­
ment is to look at its language in connection with its contemporaneous
history and the known circumstances o f the times, and to attach such
meaning to it as we conceive the people who adopted it would have given.
I shall assume, therefore, that there does not exist any constitutional o b ­
jection to the currency which was issued under the act o f Congress, which
we are considering; and that the only question which we can entertain
arises upon the mandate that the notes shall be a legal tender in the pay­
ment o f private debts.
The express power committed to the general governm ent “ to coin
money, regulate the value thereof, and o f foreign coin,” and the denial
o f that power to the States, may be considered as a further qualification
o f the State jurisdiction over private contracts.
W ith ou t these provi­
sions the right to determine what should constitute money in transactions
between citizens, would have remained, along with the mass o f general
legislation, in the several State governments. B u t' the inconvenience
which had arisen from the different denominations o f money which were
in use in the several States, and which had grow n out o f their separate
existence as colonies, and the desire to establish a system o f coined money
upon the decimal principle, which should accurately represent the money
o f account, led to the vesting o f the pow er over the subject o f coined
money in the new government.
I shall spend no time in proving that the coining power referred to
relates; and is limited to the fabrication and regulation o f coins properly
so called. I have carefullly considered the ingenious argument on that
subject, which has been submitted orally and in writing by one o f the
counsel who maintained the validity o f the legal tender provision ; but
those suggestions have not created in my mind the slightest.doubt that
the language is to be understood in its most obvious and natural sense.
Coins are, in our language, pieces o f metallic m on ey ; and the coining
o f money is the formation o f such pieces by such mechanical means as
•are appropriate to such an operation. There is not the smallest reason
to suppose that the word was used in the Constitution in any non-natural,
recondite or figurative sense.
The language is, to my mind, so distinct and precise as not to admit
o f reasoning. But if it were in any manner equivocal, the connection
in which it is found in the several places where it is used in the Consti­
tution would determine its meaning to be such as I have mentioned. In
the principal clause the value o f the coin to be made is to be regulated
by C ongress; but this could not be predicated o f the obligations o f indi­
viduals or o f governments, the value o f which is either the absolute amount
stipulated to be paid, or their worth arising out o f the fluctuating consid­
erations o f the pecuniary means and ability o f the promisors, and the in­
terest to be paid, and the time o f payment o f the principal— the last o f
which circumstances must vary every day by the efflux o f time.
The
value o f foreign coin is also to be regulated, but it is impossible to sup­
pose that this could refer to securities executed in foreign countries. Then
in the clause referring to the punishment of counterfeiting, a sharp dis­
tinction is apparent between the public securities and the current coin o f




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[J a n u a r y ,

tlie United States; and in the clause prohibitory o f the power o f the
States, it is forbidden to them to coin money and to emit bills o f credit,
which plainly shows that these are separate and distinct acts; and in the
same sentence, where the prohibition is inserted against m aking anything
but the precious ruetals a tender, it is called gold and silver coin. If the
determination o f the case depended upon the meaning o f the express
pow er to coin money, I should not, as I have mentioned, be able to enter­
tain the smallest obligations o f the general governm ent in whatever form
they may be issued.
Let us then consider whether the power to make these notes a legal
tender results from any o f the express powers conferred on Congress.
A m ong the attributes expressly conferred is the very extensive power to
regulate com m erce; and the enactment o f the legal tender provision has
sometimes been referred to that clause. But it has no bearing upon the
transactions o f citizens which are limited to a single State; the power
relating only to com m erce with foreign nations, and among the several
States, and with the Indian tribes. This enactment does not propose to
regulate foreign or inter-state commerce, or to be in any sense a regula­
tion o f that subject. It compels the citizens in all places, and at all times,
and under all circumstances to receive the treasury notes in payment o f
debts, whether these debts had any connection with a commercial trans­
action or were wholly foreign to and independent o f it. W hether a law
introducing the treasury notes into foreign and inter-state commerce, and
com pelling their reception as money when offered in connection with
transactions o f that nature, could be sustained, will perhaps depend upon
some considerations, to which I shall presently advert.
It may be said that any measure which tends to prom ote internal
traffic, and facilitate dom estic changes, would incidentally influence for­
eign com m erce. The same may be said respecting the whole subject o f
private exchanges and contracts. But to embrace ail these subjects within
the pow'er to regulate com m erce, would be to breakdow n all distinctions
between the national and State governments, and com m it the whole sub­
ject o f internal governm ent to the discretion o f Congress.
I concede that it is not incumbent upon those who argue for the valid­
ity o f the legal tender clause to select any one express power and to
maintain that the provision is a legitimate execution o f that power. They
may group together any number of these grants o f legislative authority,
and if-the right to enact that provision is fairly deducible from any or
all o f them— their position is established. The power to raise money,
for raising and maintaining a public force by land and by sea, to pay
the public debts, and indeed nearly all o f the enumerated powers, require
o r at least suppose the necessity o f the obtaining, possessing, managing,
and disbursing moneys to a large and indefinite amount. N o idea can
be formed o f the governm ent o f a great country, though the power o f
legislation should be restricted to external affairs, which would not re­
quire such governm ent to be an immense dealer in money and com m od­
ities of almost every kind. The strong public necessity for obtaining
pecuniary means to carry on the governm ent and to effectuate the great
purposes for which it was established, have not been and cannot be over­
stated, whether we advert to the imminent crisis which is this day upon
us, or consider it in its usual condition o f peace and tranquillity. It was
quite appropriate to advert to the present condition o f the country to




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60

show that Ihe necessity for obtaining funds tnay be so sudden, fluctua­
ting, and spasmodic that the public needs will not wait upon the regular
receipts o f revenue, but must sometimes be met by extraordinary exer­
tions, and entail pecuniary sacrifices upon the public and individuals.
Still the Constitution furnishes the measure o f the national authority, in
war as in p ea ce; and, as judges, our duties are limited to the construc­
tion of that instrument, according to our best judgm ent o f its actual
meaning.
The immediate question is, therefore, as has been stated,
whether the various powers committed to Congress, which require, in
order to their due execution, the acquisition and use o f large and often
fluctuating amounts o f money, empower the national governm ent to annex
to the notes, which I concede it has a right to issue, a quality which shall
com pel individuals to receive them in payment o f debts against their
will.
It is a circumstance connected with the inquiry, though not material
to the view which I take, that by the arrangements o f the act the notes
are not payable in coin ; for the quality which makes them receivable
for all public and private debts, authorizes the governm ent to redeem them
in other notes o f the same kind, so that they are to constitute a medium
o f payment and exchange which is to be quite distinct from gold and
silver money, and not convertible into it, and which, by the wrell known
laws o f currency, will displace the latter from circulation, and will cause
it to depreciate, in comparison with that standard, in proportion to the
amounts which may be issued. To force them upon the creditor as pay­
ment contrary to the general laws o f the States, which do not authorize
debtors thus to discharge their obligations, is to enter into the domain o f
the State legislature and to supersede to that extent the operation o f the
State laws. This is not necessarily a fatal objection, for if the provision
annexing the quality o f legal tender to the notes is a necessary and prop­
er law for carrying into execution the powers expressly conferred upon
Congress, and is not forbidden by any part o f the Constitution, it changes
or abrogates, by virtue o f the pre-eminence attributed to federal legisla­
tion, when constitutional, all State laws and Constitutions so far as the
exigency o f the case may require.
W e are to consider, tljen, whether the provision in question is neces­
sary and proper to the execution o f t^e various enumerated powers which
require the obtaining and disbursment o f moneys for national purposes.
And we observe in the first plaee that certain means are specifically p ro­
vided by the Constitution for obtaining funds for public objects. C on ­
gress is empowered to levy and collect taxes, duties, imposts, and excises
to an extent limited only by the public purposes to which moneys may
be applied ; and to borrow money to the like extent on the credit o f the
United States. In addition to these means, it may dispose o f the terri­
tory and other property o f the United States, and o f course may receive
the equivalent for such disposition in money. I do not at this moment
inquire whether the controverted provision is within any o f these last
mentioned express powers, namely, those o f taxation and borrowing, but
whether, under the other delegations o f authority which require for their
execution the possession o f pecuniary means, it was competent for the
governm ent to oblige the citizen to accept these notes as cash, for the
purpose o f gaining, by means o f the circulation which such a quality
would give them, additional pecuniary resources for the purposes o f the
VOL L.--- NO. I.
5




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[J a n u a r y ,

government. I am o f opinion, that this would be quite too far removed
from the delegation o f power to be considered an enactment framed for
its execution. I think, moreover, that the Constitution did not contem ­
plate and does not admit o f the raising o f moneys from the people except
by taxation and by borrowing, or by the sale o f the public lands and
property. Pecuniary means gained by the circulation o f paper not bear­
ing interest, are the profits which bankers acquire by their peculiar busi­
ness. It is a well known pursuit in which individuals may engage, by
governm ent license, when that is required by law, and without it, when
it is not exacted by some legal requirement. I think that so far as the
immediate question is concerned, the governm ent has an equal right to
authorize the national treasury to embark in any other o f the pursuits of
business by which money is acquired as in this o f making profits by the
forced circulation o f its notes, under this legal tender clause. H ence I
conclude that the disputed measure cannot be justified as an execution o f
any o f the powers requiring the possession and authorizing the expendi­
ture o f money.
Then as to the express power to borrow money on the credit o f the
United States, which is the delegation o f authority principally relied on.
The ordinary operation o f effecting public loans is sufficiently simple and
obvious, and I have already said that I perceive no valid objection to ar­
ranging the securities in such a form as that the lenders, and those w ho
may take such securities by transfer, shall be willing to hold or circulate
them instead o f immediately presenting them for redemption. The power
to borrow money implies the g ivin g o f obligations for its re payment.
The form o f these is matter o f convention between the parties to the loan,
and is an incident o f the principal power. To the extent w hich they
will circulate upon the credit o f the government, the incidental advantage
is legitimately obtained.
But it is a step far beyond this to require that all persons shall receive
them in payment o f all manner o f obligations. This has no natural re­
lation to the contract o f borrowing. The parties wdio are thus obliged
to receive the borrower’s obligations are not parties to the loan, and have
no necessary connection with it. True, they are subjects, for some pur­
poses, o f the same political sovereignty which is the borrowing party, and
if that sovereignty was universal in its objects, and was not restrained bv
constitutional limitations, the duty o f receiving the obligations could be
rightfully imposed like any other burden created by legislative authority.
But private contracts and the manner in wdiich they are to be performed
and discharged or enforced are, as has been stated, embraced in the re­
served rights o f the States, and Congress has no general legislative power
over the subject. I f they have any power whatever, it is not direct, but
oblique or collateral. I f in the execution o f the enumerated powers it
becomes necessary and proper to enter upon the domain o f State legisla­
tion, the State laws must yield. This may be made more clear by cases
which may be supposed. The States have the general right to regulate
the interest upon money loaned. Suppose a State legislature to. enact
that none o f its citizens should loan money to any. party, private or pu b­
lic, at a rate o f interest above five per cent, and that Congress, consider­
ing the rate too low7, should provide by law that seven per cent might be
lawfully required o f any borrower by any lender. Such an act o f course
would be void as an attempt to legislate upon a subject not committed to




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the general government, but reserved to the States. Y et there could be
no objection to a statute o f Congress which should authorize the b o r­
row ing o f money upon the credit o f the United States at any rate, how­
ever excessive, which it was thought expedient to allow, and at which
citizens m ight be willing to lend. This would necessarily change and
m odify the State law pro tanto, but it would be sustained, because ii
would be a law made to carry into effect a power expressly conferred
upon Congress, namely, the power to borrow money, which would em­
brace all the usual incidents o f loans. Then suppose that with a view to
facilitate federal loans, and to give the public bonds a ready reception,
Congress should attempt to subject all individual borrow ing in the States
to a low rate o f interest, while the federal treasury was allowed to con ­
tract at a higher rate. This would bear some resemblance to the law'
which is now questioned, and yet it would be preposterous to consider it
a law passed in the execution o f the pow er to borrow money on the credit
o f the United States.
The question how far an act o f Congress could be considered to have
been passed in the execution o f an enumerated federal power has been
discussed in a variety o f forms as particular laws or projects o f laws have
com e under consideration in the administrative, legislative, and judicial
branches o f the government. The discussions most material to be co n ­
sidered, because they are absolutely authoritative with us, are the ju d g ­
ments o f the Supreme Court o f the United States. The debates in these
cases usually turned upon the words necessary and proper, as used in the
Constitution. T o a certain extent, the necessity and propriety o f an en ­
actment must rest in the discretion o f the legislature. But to hold that
the exercise o f that discretion is final and not subject to the examination
o f the judiciary' would be to break down all limitations upon the powei
o f the general government. A ccordingly, I think no judge has ever in­
timated the existence o f any such extreme doctrine. On the other hand,
the question whether a given measure is the most suitable or efficient for
the execution o f an enumerated power must o f course be left to the dis­
cretion o f Congress, and that discretion cannot be reviewed by the courts.
The difficulty lies in determining in a particular case whether the dispu­
ted enactment has such a relation to the power which it is said to be
passed to carry into execution, that it can be affirmed to be necessary and
proper for that purpose. The most thorough examination o f the subject
was that which was had on the several occasions when the constitution­
ality o f the Bank o f the United States came before the Supreme Court.
(McCuiloch v. The State o f Maryland, 4 W heat., 3 1 6 ; Osborn v. 27m
United States Bank, 9 Ed., 738.) The act was sustained on the theory
that it was a necessary arrangement for carrying on the financial opera­
tions o f the government. It was not supposed to be absolutely necessary,
but to be so in the sense o f being appropriate, and directly convenient
and useful. That judgm ent is to be accepted by the State tribunals as a
true exposition o f the Constitution on this p o in t; but the resemblance in
principle between the legislation then in question and that which we are
considering, is not so striking as to afford much aid in the present diffi­
culty. The principles, however, announced by the eminent ch ief justice,
seem to me irreconcilable with the validity o f the legislation in question.
It was conceded that the powers o f the governm ent were limited, and
that those limits were not to be transcended ; but it was maintained bv




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A r e U nited S tates T rea su ry N o te s a L e g a l T e n d e r ?

[January,

a course of reasoning which cannot easily be controverted, that the na­
tional legislature possessed a discretion in the adoption o f the means l>y
which the powers conferred by the Constitution were to be carried out.
It was conceded that the'means must be such as were appropriate and
were plainly adapted to the end authorized to be accomplished. In an­
other part o f the opinion it was intimated that the means, in order to be
legitimate, and to fall within the qualifying words, necessary and proper,
must be such as were either needful, requisite, or conducive to the prin­
cipal object embraced in the delegated power. W a s it ever before sup­
posed to be incident to the contract of loan, that the rights o f other per­
sons, strangers to the transaction, were to be controlled or affected ?
Hither the borrower or the lender may insist upon any stipulation to
which the other w ill consent, and when the former is a sovereign State,
it may agree to any concessions on its own part not inconsistent with its
constitutional limitations, and insist upon im posing any terms o f the
lender which it may be thought expedient to require and to which he
will consent. The arrangement o f these mutual stipulations embraces all
which is material or which can be appropriately attached to the contract
o f loan. A provision which is to control other parties not connected
with the transaction, to their loss though to the advantage of the lender,
cannot be appropriate, for it is foreign to the nature of the transaction,
and has never before been em ployed in connection with .such arrange­
ments. A consolidated government might annex such terms to the con ­
tract, foe it has plenary authority over all its citizens when not constitu­
tionally restrained. A s to being needful, requisite, or essential, it is not
so in any sense w hich wrould enable the governm ent to impose on the
citizens who should have business relations with the holders o f the secu­
rities, conditions which would only conciliate such holders.
The power which the Constitution confers upon the governm ent to
effect loans, is not one to be exercised in invitum, like the taxing power.
It requires only a party willing to advance the funds upon the terms
which may be offered, and it does not im ply anything coercive as to any
one. It requires a consenting party only ; unlike the taxing pow er which
implies legal coercion, and does not seek the consent o f any other party.
But for a single authority, which 1 will now mention, I should think it
very plain that the power to borrow money on the credit o f the United
States, did not authorize Congress to compel individuals to accept treasnry notes in discharge o f private debts payable in money.
In Weston v. The City Council o f Charleston (2 Pet., 449), it was held
that the power to borrow money on the credit o f the United States con ­
tained in itself a prohibition to tax the securities given upon the loan by
State authority. The tax, which was held illegal, was laid upon certain
stock o f the United States, eo nomine, and this court was o f opinion that
the case m ight have turned upon that circumstance, and that money in­
vested by our citizens in federal loans was yet taxable along with the
mass o f the property o f the citizens, under the laws o f this State, which
laws tax all property alike. ( The People v. The Commissioners o f Taxes,
etc-, 23 N. Y ., 192.) On a writ o f error to the Supreme Court o f the
United Slates, our judgm ent was reversed, that court disallowing the
distinction on which we proceeded, and holding that the federal bonds
wore exempt from taxation in any form under State authority. A n act
o f Congress had been passed, declaring in terms that the scrip o f the
public debt o f the United States should not be subject to taxation by the




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73

State?. A fortiori, a State tax imposed upon stock issued since tlie de­
claratory act mentioned, cannot be sustained in the Supreme Court. The
principle has some analogy to the one vve are examining. The laws of
the States on the subject of taxation for State purposes are as fully within
the reserved rights o f the States as those which relate to private contracts
and the payment of individual debts. The general government has no
jurisdiction respecting the legal arrangements which the States may make
on either o f these subjects ; and yet it has been held that the power to
borrow money alone confers upon the securities given for loans a quality
which no other property has, by exempting them from taxation. I hope
it will not be attributed to an unreasonable pride of opinion, that I feel
compelled to say, that I have not been able to appreciate the reasons up­
on which that conclusion was reached. I, however, fully acknowledge
the duty of following the adjudication of the supreme tribunal ; and since
the judgment referred to was pronounced, we have conformed our de­
cisions in similar cases to the rule laid down, and shall continue to do so.
I think the law exempting the federal bonds from State taxation was as
foreign to and as unconnected with the power to effect federal loans as
that which declares the treasury notes a legal tender in the payment of
debts, and I acknowledge the analogy which exists between the cases.
But the judgments o f the Supreme Court did not proceed upon reasons
which would justify the legal tender clause. Those judgments, according
to the published opinions, regarded the public bonds as instruments or
means employed by Congress to carry out the power to make loans, and
as of the same general nature as the Bank o f the United States. It
clothed them with an immunity, but did not propose to render them in­
struments of coercion. Finding this distinction to exist, I d o not think it
proper to act upon the analogy which I have conceded. I am, therefore,
of opinion that the clause in the act. making the notes a good tender in
the payment of private debts cannot be sustained under the power to
borrow money, nor under any other o f the express powers conferred upon
Congress.
But I am of opinion that the legal tender clause is repugnant to ex­
press provisions of the Constitution. I refer to the prohibition imposed
upon the States to make anything but gold and silver coin a tender in
payment o f debts, and to the provision which confers upon Congress the
power to coin money and regulate the value thereof] and of foreign coin.
These provisions are in pari materia and must be considered in connec­
tion with each other, and I think the result o f both is, that it was the
settled determination o f the convention that compulsory payments should
be made only in coin. This position is entirely distinct from the topic
which I have thus far considered. If it were conceded that declaring the
notes to be a legal tender was an allowable means for borrowing money
upon them, still it could not be done if the fair result of other constitu­
tional provisions were that coins of the precious metals were the only
medium in which compulsory payments could be made. I have already
considered the coining power in connection with the argument that it
embraced in terms the power to fabricate money other than metallic
coins, properly so called, and haye nothing to add on that point. But it
was the object of that provision to enable and to require the general
government to cause coins to be manufactured which should be impressed
with the stamp of the national authority, and should be received through­
out the Union as absolutely authentic, and which should be deemed and




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[J a n u a ry ,

taken in all transactions whatever as money o f the precise value indicated
by the stamp o f the national m in t; and that they should in like manner
prescribe the value o f such foreign coins as they should think proper to
have circulated as money’ . This provision belongs to the class to which
I have referred as to some extent militating against the general system
which left to the State governments the regulation o f private pecuniary
dealings and contracts. That system, if unqualified, would allow the
States to exclude any medium o f payment not established by their own
authority ; but they cannot, consistently with the provision, disallow the
absolute authority o f the federal coins. But the power to create money
does not extend beyond the fabrication of coins.
H ence, i am unable to find the ground for further intrusion into the
field o f State legislation respecting the money to be used in private trans­
actions. The federal legislation respecting coined money is absolutely
binding upon all the people o f the Union, and, in my opinion, it is ex­
clusive o f any power, residing anywhere, to make any other description
o f money. The subject with which the convention was dealing was that
o f money which was to be authentic and authoritative everywhere
throughout the U nion. It prescribed coins, to be made by federal au­
thority as such money, and was silent respecting any and every other
kind o f currency. The argument expressio unius exelasio altering a p ­
plies, and would be o f great force if there were no other, but a reason
equally strong to m y mind is, that the convention was acting upon a
subject belonging generally to State jurisdiction, and cannot with pro­
priety be understood as g oin g beyond the provision actually made. The
prohibition upon the State governments to coin money affords an invin­
cible inference that the coins to be struck under the authority o f Con­
gress, were to be the only authentic money to be used in the United
States. Certainly there is an unavoidable implication, that nothing shall
be done by any authority in the nation which shall destroy the value and
usefulness o f this federal money. But can it be used for regulating e x ­
changes and making payments, if another thing o f less or even o f differ­
ent value is declared m oney? There cannot, in the nature o f things, be
two standards o f value. I f the treasury notes are o f less value than the
gold and silver coins, the latter will be superseded and become absolutely’
unavailable for all purposes for which money is required to be used ; for
uo one will make use o f a gold eagle, when with that coin he can pur­
chase twelve or fifteen dollars, each o f which will answer his purpose pre­
cisely as well as one-tenth o f the eagle. The legal tender provision prac­
tically nullifies the coining power. For all practical purposes, it converts
the federal coins, fabricated in obedience to the Constitution, into m ere
bullion. This appears to me plainly to conflict with the provision for the
striking o f such coins.
B ut the prohibition upon the-States against making anything but g old
and silver coin a tender in payment o f debts, seems to me also conclusive
upon the subject. The restraint, it must be remembered, is upon the
sovereignty to whose jurisdiction this subject o f debts and their paym ent
belongs. The general government, as I have shown, had no power over
that subject, except as it may be deduced incidentally from some express
power. It. should be further borne in mind, that the prohibitory m an ­
date is not addressed to the State legislature alone, but to the judges as
well. N o authority o f the States, legislative or judicial, can, by the terms
o f this clause, admit anything but coin fabricated from the precious m et­




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A r e United States T rea su ry N o te s a L eg a l T ender ?

75

als to be a valid payment. It is to be observed, also, that the inhibition
is not limited to values created by State authority. That subject \fas
provided against by the language forbidding the States to emit bills o f
credit. The word anything embraces all imaginable subjects o f which
payment m ight be predicated, irrespective o f their material substance, and
o f the authority by which thev were created. To constitute payment,
there must be coins, that is, stamped p ie c e s.o f metal, and they must be
composed o f the precious metals. W h en the State legislatures, which
are to establish the legal principles respecting payments, and the courts,
which are judicially to determine what shall be payments in any given
instance, are forbidden by paramount and supreme authority to make
anything but coins struck from the precious metals a payment, the natuural, and, I think, the inevitable result is, that nothing except such coins
can be adjudged to be payment in any case whatever. A n d ‘when, in
connection with such inhibition, we find ample provision made by the
same supreme authority, for the supply o f such coins by fabrication, and
by the adoption o f those com ing from abroad, I cannot doubt but that it
was the persistent design o f the Constitution, w hich contains these man­
dates, to require as a fundamental policy the exclusion o f everything else
than the coins indicated from the attribute o f com pulsory payments. W e
are to-day asked, by our judgm ent, to make the treasury notes o f the
United States a payment o f the debt ow ing to the defendant. Our an­
swer ought, I think, to be that we are forbidden by the supreme law' o f
the Union to do it. That law has no regard to the value o f the thing
offered as a substitute, or to the authority by which it was created. It is
forbidden absolutely, and under all circumstances.
An argument has been somewhat pressed upon us, arising out o f the
action of Congress upon the subject of legal tender. After providing for
the establishment o f the mint, and regulating the amounts o f pure gold
and silver to be contained in, and the value o f the various coins to be
struck, the legislature has, at various times, from an early period o f the
governm ent, declared those coins to be a legal tender for the payment o f
all debts and demands. The argument is, that there is nothing in the
Constitution expressly enabling Congress to declare anything to be a le­
gal tender, and yet that body has, with universal acquiescence, passed the
several acts referred to. H ence, it is insisted that the power o f estab­
lishing a legal tender has been universally conceded to exist, and, if the
power exist, it is within the legislative discretion to determine as to what
shall be made such tender. In point o f fact, the coins which have been
declared a tender are such as were com posed o f gold and silver with suf­
ficient o f alloy o f baser metals to give them the requisite consistency for
convenient use. My opinion upon this point is, that the power to coin
m oney and regulate its value is an authority to make money which shall
be legally such in every part o f the Union, and for every purpose for
which money shall be required or needed to be used. The coins to be
struck are national coins and money, and so o f those which are adopted,
and the value o f which is declared, and where any law, State or national,
or any lawful contract, or any other lawful exigency calls for the pay­
m ent o f money as such this national money is the thing indicated.
The word money, as used in the Constitution, ex vi termini, implies all
that is expressed by the words legal tender, and without the use o f these
words in the acts o f Congress the coins struck at the national mint, and




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[J a n u a r y ,

the foreign coins, the value of which has been regulated by Congress,
coitld be used in forced payments in all cases. The express provisions
respecting legal tender are employed for the purpose o f explanation, and
are only declaratory of the effect of the national currency when offered
for the purpose of payment. ] n reference to what had been said respec­
ting the ability o f Congress to debase the national currency, I am o f the
opinion that the several clauses respecting coining and what may be made
a legal tender by the States, together amount to a direction that th«
money to be created under the clause respecting coining shall be com ­
posed of the precious metals, as a principal ingredient, and that coins not
composed of these substances cannot constitutionally be made national
money or legal tender.
I have examined this question, and have come to a conclusion upon it,
as though it involved no other consequence than the recovery, or the
failure to recover, the small sum o f money claimed by the defendant, and
T do not know of any other method of considering a judicial question in­
volving pecuniary considerations. The extended and very able discussion
at the bar, in which considerations of a public character have been largely
pressed upon us, have had the effect, to which they were certainly enti­
tled, o f inducing caution and very mature deliberation upon the legal
points involved, but they cannot legitimately have any further influence.
I shall be well satisfied if a majority of my brethren, and the federal
court in which our decision will ultimately be reviewed, can reconcile th»
legislation which the defendant challenges with a reasonable interpreta­
tion of the Constitntion o f the United States. It is not to be denied that
it constitutes a part of a plan o f public finance which, whether wisely or­
ganized or not, it is extremely important in the present crisis to maintain
if it can properly be done. If mv sense of duty' would allow me to decide
the case, as I should wish the law under the circumstances o f this mo­
ment temporarily to be, I would unite in a judgment which should estab­
lish the validity of these legal tender notes ; for the preservation of the
federal Union, which is said to be involved, is the most ardent, I may say
passionate, desire of my heart; and no one, I think, can honestly pretend
that this can be accomplished except by the vigorous employment of the
armed force of the nation. To that purpose, the realization and expend­
iture of immense pecuniary resources are plainly indispensable. No man
can have a stronger sense of the absolute causelessness, nay, the utter
wickedness, of the insurrection than that which I entertain ; or o f the
duty of every citizen, whether in public office or a private station, to yield
to the constituted authorities upon all questions of policy or expediency,
not only implicit obedience, but a sincere and generous confidence and
co-operation.
ISut-we are placed here to determine the law as we understand it to be,
in the controversies which are brought before us, and I should forfeit my
own self-respect if I could unite in a judgment affirmiug the constitutional
validity of the legislation in question, believing, as I must, that its pro­
visions are repugnant to the letter and spirit of the Constitution.
S ei.d e n , J., concurred in the conclusions o f Ch. J. D en io ; but all the
other members of the court pronounced in favor of reversing the ju d g ­
ment o f the Supreme Court, and holding that the United States notes are
money and a legal tender for all debts.




C om m ercial R egu lations.

1 8 6 4 .]

COMMERCIAL

REGULATIONS.

DECISIONS OK TREASURY DEPARTMENT UNDER THE TARIFF ACT OF JULY
14, 1863.
T he follow ing decisions have been made by the Secretary o f the Treas­
ury, o f questions arising upon appeals by importers from the decisions o f
collectors, relating to the proper classification, under the tariff act o f July
14, 1862, of certain articles o f foreign manufacture and production en­
tered at the port of New Y ork, & a.:
BUFFALO ROBES.

Treasury Department, September 28, 1868.
S ir : A lexander P aul has appealed from your decision assessing duty
at the rate o f 15 per cent ad valorem on certain “ buffalo robes ” imported
by him, and claims to enter them at 10 per cent.
This department decided, under date of January 28, 1862, that buffalo
robes, not being enumerated under the act o f March, 1862, were, by force
o f the 20th section o f the tariff act o f 1842, liable to same rate o f duty as
“ furs on the skin,” to wit., 10 per cent.
The act o f July 14, 1862, section 13, imposes an additional duty o f 6

per cent on “ dressed furs.”
It is admitted that the robes in question are dressed or tanned by the
Indians, and consequently are subject to duty at the rate o f 15 per cent
ad valorem, by virtue o f the decision o f this department o f January 28,
1862, and by force o f the 20th section o f act o f 1842, as applied to the
13th section o f the act o f July 14, 1862.

The decision of the Collector is hereby affirmed.
I am, very respectfully,
S. P. C hase , Sec. o f the Treasury.

To J oseph L emay , Collector, P ort o f Pembina, Minn.
HARES FURS.

Treasury Department, October 31, 1863.
S ir : Mr. E dward C onnolly has appealed from your decision assessing
duty at the rate of 20 per cent on certain “ hares furs ” imported by him,
per bark Maryland , from Bremen, and alleges that “ the only duty which
hares furs are entitled to pay is 10 per cent ad valorem, pursuant to the
24th section o f the tariff act o f March 2, 1861, which says: ‘ On all raw
or unmanufactured articles not herein enumerated or provided for, a duty
o f 10 per cent ad valorem.’ That the article in question is not imported
as hatters’ furs, and never used in the manufacture o f hats as such, but
merely worked into the bodies o f hats for the purpose o f imparting a pli­
ancy thereto.”
The article in question is a “ fur not on the skin
and is undressed, and
under the 19th section o f the act o f March 2, 1861, is entitled to entry at
the rate o f 10 per cent ad valorem.

Your decision is hereby overruled.
S. P. C hase , Secretary o f the Treasury.
To H enry W . H offman , Collector, Baltimore, Md.




78

C om m ercial R eg u la tio n s.

[January,

STEEL RAILW A Y BARS.

Treasury Department, October 30, 1863.
S ir : E dmund S m ith , secretary, in behalf o f the Pennsylvania Railroad
Company, has appealed from your decision assessing duty at the rate o f 35
per cent ad valorem on certain “ steel railway bars,” and claims to enter
them at 25 per cent, as “ steel in any form not otherwise provided for.”
This department, under date o f March 24, I8 6 0 , decided that “ steel
railway bars” were properly classified as manufactures o f steel, not other­
wise provided fo r ; being fitted for immediate use without further manu­
facture.
There are no facts presented in the ease under consideration which ren­
der necessary any alteration or modification o f said decision, and your de­
cision assessing duty o f 35 per cent on the steel in question is hereby af­
firmed.
S. P. C h ase , Sec. o f the Treasury.
To W

m.

B . T h o m a s , Collector, Philadelphia, Pa.
COD-LIVEIl OIL.

Treasury Department, October 30, 1863.
S i r : E. P. D c c o n g e has appealed from your decision assessing duty at

the rate of 50 per cent ad valorem on certain “ cod-liver oil,” imported by
him in the ship Maria Felicite. from Havre.
“ Cod-liver oil ” is not considered a “ proprietary medicine,” and Treasury
Regulations (page 576) authorize its classification as a “ medicinal prepa­
ration not otherwise provided for,” and under the act o f March 2, 1861, it
was liable to duty at the rate o f 30 per cent ad valorem.
The act o f July 14, 1862, imposed an additional duty o f 10 per cent on
“ medicinal preparations not otherwise provided for,” and consequently the
present rate o f duty to be assessed on cod-liver oil is 40 per cent ad valorem.
Y our decision is hereby overruled.
S. P . C h a s e , Sec. o f the Treasury.
To C othbert B ullitt , Special Agent and Acting Collector, N . O.
la d ie s ’ dress

orn am en ts .

Treasury Department, November 9, 1863.
S i r : Messrs. H ughes & C re h a n g e have appealed from your decision

assessing duty at the rate o f 35 per cent as “ manufactures o f worsted” upon
certain merchandise imported by them, styled “ buttons,” and claim to enter
them, as such, at 30 per cent ad valorem, under section 22 o f the act of
March 2, 1861.
Samples o f the goods in question have been submitted to the experts o f
the customs, who report as follows : “ In our opinion they are not buttons,
either in fact, by commercial usage, nor within the meaning and intent o f
the law. They are too fragile, and in structure unfit for the proper pur­
pose o f buttons, but are worn as ornaments on dresses.”
This department, under date o f February 16, 1861, on the appeal o f
B ach m an & L au ren t , decided an analogous case, upon similar grounds.
Your decision is hereby affirmed.
S. P. C h a s e , Sec. o f the Treasury.
H ir a m B a r n e y , Esq., Collector, New York.




1 8 6 4 .]

C om m ercial R egu la tion s.

70

SHIRTING FLANNEL (SO CALLED).

Treasury Department, November 16, 1863.
S in : I. L e w i kb lias appealed from your decision assessing duty, “ as a
manufacture o f wool and worsted,” at the rate o f 18 cents per pound, and
35 per cent ad valorem, on certain goods imported by him, and styled
“ grey flannel o f English manufacture, intended to be used for army shirt­
ing,” and claims to enter it at 35 per cent only, under the classification for
“ flannels.”

The article in question was not, at the time of the passage of the present
tariff, known or commercially recognized as flannel; nor is it flannel, ac­
cording to the term, as well known and understood ; differing from flannel
in texture and dressing, bein’g fulled, which at once takes it out o f the flaunel category'.
The tariff acts now in force impose a duty of 18 cents per pound, and 35
per cent ad valorem, on “ manufactures o f wool, or o f which wool shall be
a component material, etc., etc., not otherwise provided for,” and, in my
opinion, the article in question comes clearly within this provision o f the
law, and your assessment was perfectly regular.

Your decision is hereby affirmed.
S. P . C h a s e , Sec. o f the Treasury.
H ir a m B a r n e y , Esq., Collector, New York.
POWDERED ACORNS.

Treasury Department, November 17, 1863.
S i r : Messrs. A. V o g el er & C o. have appealed from your decision as­
sessing duty at the rate o f three cents per pound on certain “ powdered
acorns,” imported by them per barque Maryland from Bremen, and claim
“ that the said powdered acorns are only entitled to pay a duty, under ex­
isting laws, o f 20 per cent ad valorem; that is to say, under section 24 o f
the act o f March 2, 1861, which states, ‘ that on all articles manufactured
in whole or in part, not herein enumerated or provided for, a duty o f 20
per cent ad valorem
that the aljove cl-.use as quoted from the 24th sec­
tion o f the act referred to, has never been tepealed by subsequent acts ; and
also, that the said ‘ powdered acorns ’ are imported solely for medicinal
purposes, and not to be used for coffee in any sense.”
The 8th section of the act of July 14, 1862, provides that a duty of three

cents per pound shall be imposed on “ acorn coffee and dandelion root, raw
or prepared, and all other articles used or intended to be used as coffee, or
a substitute for coffee, and not otherwise provided for.”
The experts of the customs state that the article in question is the article
enumerated in the above quoted section.
That Messrs. V og e l e r <fe Co. intend or design the “ powdered acorns”
for medicinal purposes cannot avail; the enumeration or description of the
article meant could not well have been more specific or clear ; indeed, it is
not denied or pretended that this is not the article which is “ used as coffee,
or as a substitute for coffee.”
The decision of the collector is therefore affirmed.
S. P. C h a s e , Sec. o f the Treasury.
To H . W . H o f f m a n , Collector, Baltimore , Md.




80

T he N a tio n a l B a n k C u rrency.

[J a n u a r y ,

THE NATIONAL BANK CURRENCY.

The circulation for the banks established under the National Law is
now being furnished; that is,, the lower denominations, lives and tens.
These are very unlike anything that bankers ever saw, and have not much
resemblance to anything that has heretofore represented “ money.” The
bills have neither face or back, so to speak, but both sides highly pictured,
bordered, and wreathed— with very small figures and the beautiful engrav­
ings of the paintings in the Capitol Rotunda blurred by lettering. Some­
body’s “ fancy ” had a large scope to experiment itself in when these notes
were gotten up. The following is a description :
5s, vignette, Columbus discovering America, on lower left en d ; right
end Columbus introducing America to Europff, Asia, and Africa, shipping
and ocean in back ground, the countries represented by female figures.
Other side— vig. Landing of Columbus, ends ornamented by scroll and
lathe work, containing in one oval national eagle and shield with “ U. S.,”
and in another the State arms of, say, Ohio, or wherever the bank is situ­
ated to which the bill has been furnished.
The face contains the following inscription :
N ATION AL CURRENCY.
Tliis note is secured by bonds of
THE

U N IT E D

STATES,

Deposted
With the United States Treasurer at Washington.
L. E. C hittenden,
F, E, S pinner ,
Register o f the Treasury,
Treasurer United States,
T he F irst N ational B ank of

[Place o f the date.]

Pres’t.

Cashier.

On the back appears the following guarantee and warning:
“ This note is receivable at par in all parts of the United States in payment of all
taxes and excises and all other dues to the United States, except duties on imports,
and also for all salaries and other debts and demands owing by the United States to
individuals, corporations, and associations within the United States, except interest
on public debt,”
'
“ Counterfeiting or altering this note, or passing any counterfeit or alteration of it,
or having in possession any counterfeit plate, or impression of it, or any paper made
in imitation of the paper on which it is printed, is felony, and is punishable by 11,000
fine or fifteen years’ imprisonment at hard labor, or both.”

1 0 s, vignette, Franklin drawing lightning from the clouds. Allegori­
cal representation o f Genius o f America, a female figure upon an eagle
in the clouds grasping a thunderbolt. Other side— vig. Lie Soto discov­
ering the Mississippi.
2 0 s , vignette, Battle of Lexington. Allegorical representation o f Loy­
alty, figure of Liberty in fore ground, bearing national ensign, farmers,
artisans, etc., rallying round the flag. Other side— Baptism o f Pocahontas.
5 0 s, vignette, Washington crossing the Delaware. Allegorical repre­
sentation, Prayer for Victory. Other side— Embarkation o f the Pilgrims.
1 0 0 s , vignette, Battle of Lake Erie. Allegorical representation, Main­
tenance of Liberty and Nationality. Other side— Declaration of Inde­
pendence.
5 0 0 s and 1 ,0 0 0 s not decided, but the intention is to illustrate them
by incidents of the present war.




T h e B ook T rad e.

j 8 6 4 .]

THE

Soundings from the Atlantic.

BOOK

81

TRADE.

By O liver W endell H olmes.

Boston: T icknob tit

F ields .

Every one, o f course, loves to read everything Dr. H olmes writes. We equally
delight to have him electrify us with his poetic fervor, amuse us with his wit and
humor, or instruct us with his earnest thoughts, expressed in good old Saxon. This
volume which he now gives us is not a sea novel or essay on the sea, as some might,
from the title, suppose, but a collection of the choicest papers which the witty doc­
tor has contributed to the Atlantic Monthly. W e are glad to see them in this form,
as all will be who love good things eerved up in a good style. The title o f these
“ Soundings” are as follows: “ Bread and the Newspapers,” “ My Hunt after ‘ The
Captain,’ ” “ The Stereoscope and the Stereograph,” “ Sun-Painting and Sun-Sculp­
ture, with a Stereoscopic Trip across the Atlantic,” “ Doings of the Sunbeam,” “ The
Human Wheel, its Spokes and Felloes,” “ A Visit to the Autocrat’s Landlady,” “ A
Visit to the Asylum for Aged and Decayed Punsters,” ‘“The Great Instrument,”
and “ The Inevitable Trial.”
Keep a Good Heart.

New York: D. A ppleton <fc Co.

If good books for children make good children, certainly the coming generation, on
reaching manhood and womanhood, ought to surpass their fathers and mothers in all
that is excellent. When we were children the books we saw, besides those at school,
were ponderous histories or now and then the life of a good boy or girl, all of whom
died very young. This latter class o f publications have been laid aside of late (on
the supposition that the early death was no inducement for following the good exam­
ple), and in their stead we have books of real merit, the influence of which must be
excellent. In fact, very many of them can be read with no little profit by the teacher
as well as the scholar. As an illustration and confirmation o f this remark, we would
refer to the one above mentioned, “ Keep a Good Heart.” W e have read it—every
word o f it— and shall be glad to readjust as many more as the author or authoress
can give us. The style is excellent (a point formerly neglected in children’s books,
and yet children know what good English is,) and the lesson taught is invaluable,
while the mode of presenting the great truth is such that its effect must without
doubt be lasting. We should certainly advise every one who has a child to bring up
to put this book into its hands without fail. Give children good, attractive religious
reading and religion will, to them, never wear the gloom with which some surround
it, but willshine out with its own cheerfulness and loveliness, attracting rather
than repelling.
The Pet Bird and other Stories.

By C ousin A lice. New Y ork : D. A ppleton

&

Co.

This little volume is the last that ‘ Cousin Alice ” will ever give her host o f young
readers. Her death a few months ago has sadened many a child’s heart, and this
final word from her pen will have, therefore, a double attraction. It contains four­
teen short stories, written in the pleasant, graceful, earnest style for which she was
noted—some matters of fact, and others matters of fancy— all delightful reading for
the little ones.

Each story is prettily illustrated.




[J a n u a r y ,

T he B o o k Trade.

82

F r u i t , a n d T h o r n P i e c e s , or the Married Life, Death, and Wedding o f the
Advocate of the Poor, F ir m u n S tanislaus S ikbenkas . By J ean P aul F rederick
R ichter . Translated from the German by E dward U knrv N oel . With a Me­
moir o f the Author by T homas C arlyle . Boston : T joknor & F ields .

F lo w e r s ,

The translation o f this work from the celebrated German author is issued by the
publishers in two beautiful volumes. As may be judged from the title, a large por­
tion of the contents is a narration o f the writer’s personal experience, his trials and
sufferings in poverty, and the subsequent enjoyment of life more congenial to his
taste. A deep pathos, plentifully besprinkled with fine thoughts and brilliant pas­
sages, together with keen insight into human character, is displayed throughout the
work. In fact, as his translator says, J ean P aul is rich and redundant in language
and georgeous in description. “ Some he will please ; others will criticise, perhaps
lightly condemn; but his noble, poet’s soul may stand, fearless of the judgment of
every nation.”
L e v a n a ;

o r, th e D o c t r in e

R ichter.

o f

E d u c a t io n .

Translated from the German o f J ean P aul

Boston: T icknor A F ields .

This interesting work has many valuable suggestions upon home education and
training, and indeed contains so many good hints and real truths, so pertinently put,
that we wish it might be extensively read, especially by parents. Much of the time
the lively wit of the author shines out brilliantly; indeed some reader may think he
is not serious enough upon serious subjects, yet there is so much sound common sense
running through the whole work, and the amount of interesting information is so
large, that it is not worth while to be too critical respecting the manner in which it
is communicated. The author loves and understands little children, and writes of
them with a tenderness and pathos that is pleasant to read.
G a la

D a y s.

By G ail H amilton.

Boston : T icknor

&

F ields .

Unfortunately G ail H amilton , in an inauspicious moment, wrote “ Side Glances at
Harvard.” She there told us many good things, and some that it would have been
as well to have left unsaid. Before that time her star was in the ascendant, but
since then all Massachusetts has been after her. One Boston critic advises her, with
a touch of sarcasm, never to write any more, while many others say she possesses
none, or, it may be perhaps, the least atom (no more) of literary merit, and shows an
entire “ lack of real practical knowledge of all subjects she discusses.” W e certainly
cannot agree with these critics. If her writings showed talent before she wrote about
“ Harvard,” certainly she has it still; and who ever read her essay entitled “ My Gar­
den ” without feeliDg that she possessed unusual cleverness and showed literary
merit of no mean order? In “ Gala D ays” we have several of her mbst popu­
lar papers contributed to the A t l a n t i c M o n t h l y , and among them is this same “ Side
Glances at Harvard” which provoked so much criticism, as we have already stated.
They are all written in a lively, agreeable style and will have very many readers.
We'trust she will continue to publish her thoughts in spite o f the critics.
T h e

R e je c te d

W if e .

By M rs . A nn S . S tephens.

Philadelphia: T. B. P eterson .fc

B rother.

This is a very readable book. The author has taken the leading incidents of B en­
A rnold’ s life, and made of them, with the help of a good imagination, quite a
thrilling romance. Of course, all the incidents are not facts; and yet historical events
are so interwoven as to lend to the story an additional interest.

edict




1864.]
Appleton's

83

T he B ook Trade.

U. S. Postal

Guide.

New York : D. A ppleton

& Co.

This is just the book we have wanted and the public have wanted for a long time,
giving, as it does, all the regulations of the Post Office, a complete list o f the post
offices throughout the United States, besides those thousand and one items of infor­
mation which almost every person who mails letters (and who does not ?) is continually
asking for and ought to know. There are also in it many valuable suggestions, espe­
cially of interest to those having much correspondence.
History o f the Romans under the Empire. By C harles M erivale , B. D.,late Fellow
of St. John’s College, Cambridge. From the fourth London Edition. With a copi­
ous Analytical Index. Vol. I. New York : D. A ppleton <fc Co., 443 <fc445 Broad­
way. 1863, Cloth, $2.00 ; half calf, $3.50 per volume.
W e are very glad to see that the Messrs! A ppleton <fc Co. have begun the re pub­
lication of this valuable work. The first and second volumes appeared in London in
1850, we think, and the others followed, from time to time, but it was not until last
year that the seventh and last was issued. As, however, one by one, these volumes
have been given to the public, they have met with a very warm reception. The Ed­
inburgh Review, speaking of the two first issued, remarked :
“ We have read these volumes with great pleasure, and we close them with even
greater expectation. * * * There wa9 room for a history of Rome, both absolutely.
a9 regards the subject itself, and relatively, as regards the demands of the present
age. Mr. Merivale appears to have discerned both the need for such a work, and the
conditions under which it may be competently executed. * * * He has entered a
field in which he has no rival, and scarcely a competent predecessor. * * * We
may add, that the style is vigorous, and the arrangement lucid ; that the descriptions
are often striking, and that the occasional episodes are skilfully introduced. Our read­
ers will perceive that Mr. M erivale ’s undertaking is nothing less than to bridge over
no small portion of the interval between the interrupted work of A rnold and the
commencement of G ibbon. He comes, therefore, between ‘ mighty opposites.’ It is
praise enough that in this, his first instalment, he proves himself no unworthy suc­
cessor to the two most gifted historians of Rome whom English literature has yet
produced”
Some years later, the same Review says:
“ We great with no ordinary pleasure each instalment of Mr. M erivale ’ s work. * *
In the volumes before us we see no reason to modify the opinion which, nearly seven
years ago, we ventured to give of their predecessors. The historian displays the same
unwearied diligence, the same impartial judgment of men and events, and supports
his opinions and his statements with the same exact and comprehensive learning.”
A s this work terminates where the narrative o f G ibbon commences, it w ill be found
an indispensable addition to every library.

In War Time, and Other Poems.
nor

By J ohn G reknlkaf W hittier .

Boston: T ick -

<fc F ield s .

This pretty little volume is filled with poems, written in Mr. W hittier ’ s usual
earnest style, full o f fervor and feeling, many of which have already appeared in the
Independent and Atlantic Monthly. More than half the volume is devoted to sub­
jects connected with the war, peculiarly adapted for enlisting the author’s sympathies
and exciting his impassioned muse. To our mind, however, the latter portion of the
book, containing the “ Home Ballads,” and “ Occasional Poems,” has more poetical
merit than the war lyrics ; yet the fire of W hittier ’ s genius shines through all,giving
us many beautiful thoughts and stirring passages.
W e are compelled to defer until next month the publication of many other notices
of new Books intended for this number.




T IT E

M ERCH A M V

M AG AZIN E

AND

C O MM E 11 C 1 A L R E V I E TV.
C O i N T E N '1' 8
VO LU M E L.

O F N o .

I .,

VOL.

J AN U U A R Y , 1 864.

L.
NUMBER I.

A

KT .

I. PROSPECTS OF IRELAND........................... ‘ ........................................................................
IL. UNITED STATES BANKS AND P A PE R CURRENCY ve. STATE BANKS AND
TH E SUB-TREASURY............................................................................................................
H I. A N ATIO N A L CURRENCY. By A. K . S hepard ..............................................................
IV . COMMERCIAL LA W . No. 9. A G E N C Y...........................................................................
V. COMMERCIAL CHRONICLE A N D R E V IE W .................... - ...........................................

J O U R N A L OP B A N K I N G ,

CURRENCY,

AND F I N A N C E .

B AN K RETURNS AND BAN K ITEM S....................................................................................... y

**

City Bank Returns..................................................................................................................

32

New York Banks......................................................................................................................................
Boston Banks .................................................
3*
Philadelphia Banks................................................................................................................................... 34
European Finances— Bank of England Returns................................................................................. 38
New York Clearing-house—Annual Meeting...................................................................................... 36
Report o f the Secretary of the Treasury............................................................................................ 39
The Indebtedness of the United S tates.............................................................................................. 44
Report o f the Secretary o f the Navy and the Chief o f the Bureau o f Ordnance........................ 48
Synopsis of the Postmaster-General's R eport.....................................................
54
Treasurer’s Report of the States in Rebellion..................................................................................... 5ti
Are United States Treasury Notes a Legal Tender ? Decision of the Court o f Appeals o f New
Y o r k ...................................................................................................................................................

COMMERCI AL REGULATI ONS.
Decisions o f the Treasury Department under the Tariff A ct of Jnly 14, 18C2.............................
Buffalo Robes.............................................................................. : .............................................................
Hares F u rs.................. ............................................................................................................................
8 ‘eel Railway Bars........ ..........................................................................................................................
Cod-Liver Oil — ......................................... .......................................................................... ...........
Ladies’ Dress Ornaments........................................................................................................................
Shirting Flannel (so called) ...................................................................................................................
Powdered Acorns................................................................. ............................1..................... ............

77
77
77
78
78
78 '

The Nathional Bank Currency....... .......................................................................................................

go

THE

HOOK

Notices of New Publications in tlio United States.




79
79

TRADE.
81