20,876,057 70 Total.... $1,719,895,168 88 $71,699,730 15 The foregoing is a correct statement of the Public Debt as appears from the Books, Treasurer's Returns and Requisitions in the Department, on the 14th June, 1864. S. P. CHASE, Secretary of the Treasury. DEBT BEARING NO INTEREST. No interest. United States Notes July 17, Aug. 5, '61, and Feb. 12, 1862, 60,000,000 00 No interest. United States Notes Feb. 25, July 11,'6%, Am't outstanding, 838,788 00 400,000,000 00 COMMERCIAL CHRONICLE AND REVIEW. EXPENSES OF THE GOVERNMENT FOR THE FIRST THREE QUARTERS OF THE YEAR-FIVE PER CENT LOAN NOT SUCCESSFUL-GOVERNMENT PRESSED FOR MONEY-AMOUNT IN THE TREASURY MAY 1 AND JUNE 1-CERTIFICATES OF DEPOSIT-INTEREST RAISED TO SIX PER CENT. THE SIX PER CENT LOAN-LOAN BY THE BANKS-THE GOLD BILL, MEETING OF BANKERS-OPINION OF BOLICITOR-RATES OF EXCHANGE-COIN IN U. 8. TREASURY-PRICE OF U. 8. PAPER-SPECIE AND PRICE OF GOLD. THE expenses of the government, which have been on a very large scale, are still on the increase, and require larger revenues from loans since the operation of the taxes devised by Congress are prospective. The official statements of the revenue and expenditure, the first three quarter of the fiscal year, 1864, are as follows: Customs.. Lands..... Tax..... Tax, Internal. Miscellaneous U. S. REVENUE AND EXPENSES THREE QUARTERS OF 1864. Total Regular.. U. S. Notes.... U. S. Fractions.. ..... ......... Twenty Year 6's........ 5 per cent 1 year.. 1 year Certificates.. 14,865,000 10 day Deposits. 32,690,014 14,758,928 29,696,784 77,145,721 Total Regular......$176,110,962 $212,632,483 $230,806,095 $619,549,610 23,982,891 60,225,947 Loans paid.... Total expense.... 218,731,583 857,260,081 329,948,872 906,566,424 The gross amount of money raised for three quarters is over nine hundred millions or at the rate of $1,200,000,000 a year, or $4,000,000 every secular day. Of the money raised in the last quarter more than one half was in cur 967,742 392,095 2,618,337 2,286,804 13,925,969 16,655,202 1,927,546 17,500 1,012,908 4,244,054 85,800 $144,627,598 $99,137,777 $287,016,814 1 rency legal tender, the issue of which was accompanied by a considerable rise in gold. On the strength of this redundancy of the currency and consequent cheapness of money the Secretary attempted to negotiate a five per cent. loan which met with no adequate success, accompanied as it unfortunately was by efforts to disturb the market by selling gold and exchange. The Treasury there fore fell largely in arrears, and when the army pay fell due, May 1, was much pressed for money. The funds in the Treasury May 1 and June 1 were as fol lows: New York... PAPER MONEY SUBJECT TO THE DRAFTS OF THE TREASURY. San Francisco. Buffalo. Cincinnati Louisville 1,216.335 02 Pittsburgh. 274,352 46 43,378 27 Chicago. 484,633 88 This shows all the funds at the disposal of the Treasury at the times indicated. The amount with the Treasurer in New York was reduced from $12,880,382.96 to $3,462,351 82 under the severe pressure that the department experi enced for money during the month of May. It will be observed that the amount to the credit of the Treasury at the Assistant Treasury in this city, June 1, was $3,462,351 82, but the amount on hand reported that date was $21,331,419, a sum that gives a very erroneous impression. This was made up as follows: Balance as above. To credit disbursing officers Total.... $3,462,351 82 15,068,655 00 2,939,773 00 $21,470,779 82 Thus, out of the whole amount, only $3,462,351 82 was available. The amount with the national banks held decreased from $26,362,636 to $12,633.016, being a decrease of $13,720,620. We have, then, the fact that the Treasury funds in this city were drawn down during the month of May as follows: This money was drawn in greenbacks and national notes, to send to the army to meet the May arrears of pay. The five per cent loan continued to drag, and as the 1st of June drew near it became necessary to resort to some new means of raising money. This resulted in a determination to raise the rate of interest or the deposits and to issue a six per cent loan in addition to the five per cent loan. The certificates of deposits at ten days' notice had ceased to attract much money. The three last quarterly returns indicate résults as follows: There had been less than $8.000,000 received in the last quarter of the year, the means of the banks and of most individuals being then locked up in the five per cent two year legal tenders, of which $115,000,000 were outstanding, and which it was necessary to hold until June 1 in order to get the interest. Many of the banks would have turned them into the Treasury for depositor's certificates, payable principal and interest in ten days, if there had been any assurance that they should get back legal tenders ard not be paid in national bank notes that would not be available for the payment of their own debts. In fault of this assurance they held the notes. Towards the close of May it became necessary to adopt a new policy. The five per cent. loan did not sell; the arrears of debt were largely accumulating, and the price of gold continued to rise in a manner to make further issues of legal tenders imprudent. The following mea sures were then directed by telegram to the Assistant Treasury : 1. The rate of interest on the certificates of deposit or "temporary loan" is raised from 5 to 6 per cent. 2. The interest coupons due July 1 in gold were directed to be paid off at once. 8. A 6 per cent. loan due 1881 under the law of March, 1863, was announced as about to be offered. 4. You may contradict, most emphatically, all assertions that the Secretary is increasing any legal tender issues. On the contrary, he is gradually reducing them. All new notes issued are in lieu of old notes in larger amounts withdrawn." 6. Sales of gold were permitted also. The raising of the rate of interest on deposits had the effect to draw considerable sums into the Treasury, since that rate was higher than that borne by the legal tender, and more than could readily be obtained in the open market. Notwithstanding these measures gold continued to rise rapidly, for the reason that the demand for it for export was far greater than the supply. The new Joan was offered to the amount of $75.000,000, bids for which were received until the 15th inst., on which day they were opened. The bonds bear an annual interest of six per cent, payable semi-annually, in coin, on the first day of July and January, and are redeemable after the 30th of June, 1881, which allows them seventeen years to run. The denominations of the bonds are $50, $100, $500, and $1,000, and registered bonds of $5,000 and $10,000, also, if required. The bids were payable in instalments, one-third down, onethird June 21st, and the balance July 1. Pending the negotiation of this loan, the Secretary being very much pressed for money, requested a loan of $50,000,000 from the banks. This the institutions were, apparently, very willing to make, but hesitated in view of the dis turbance in the money market which attended the payments of the loan last year, in consequence of the want of facility at the Treasury. Under these circumstances the Bank Committee sent the following letter to the Secretary of the Treasury: HON. L. P. CHASE, New York Clearing House, Saturday, June 4th, 1864. Secretary of the Treasury. DEAR SIR, On behalf of the Loan Committee of the Associated Banks of this City, I beg leave to submit the following inquiries, viz.: 1st. Will such six per cent. Temporary Loan Certificates as may be issued to the Banks of this City, be received from them, without previous notice, at par and accrued interest, in payment of Loans to the Government! 2nd. Will such Temporary Loan Certificates as may be issued to the Banks of this City, for deposits of Legal Tender Money of the United States, when presented by them for payment, after ten days' notice, be paid in like Legal Tender Money? 3rd. Will you receive for such Temporary Loan Certificates of Deposit, the five per cent. Coupon Legal Tender Notes at par and accrued interes: ? 4th. Will you issue such Temporary Loan Certificates to the Banks, in the form known as Clearing House Certificates, available for the settlement of balances between the Banks, it being understood that only such Temporary Loan Certificates as may be issued for Clearing House purposes shall be receivable in payment of Government demands without the ten days' notice? I also beg leave to say, that, the Committee have not been authorized by the Associated Banks to make the inquiries above proposed, but they are of opinion, that if assented to by you, a large sum would be immediately deposited in the Treasury by the Banks of this City, which would probably remain for a considerable period. The Committee would recommend such an arrangement to the Banks. Very respectfully yours. C. P. LEVERIDGE, Chairman Loan Committee. To the above letter the Secretary replied as follows, returning an affirmative answer to all the questions, except that in relation to the payment of the certifi cates in legal tender notes: DEAR SIR: New York, June 7th, 1864. In reply to your letter of the 4th inst, I beg leave to say, that I perceive no ob jection; (1st,) to receiving from the Banks six per cent. Temporary Loan Certificates at par, and accrued interest in payment of Loans; or (2nd,) to receiving for such Temporary Loan Certificates, the five per cent Coupon Legal Tender Notes heretofore issued at par and accrued interest; or (3rd.) to issuing such Temporary Loan Certifi cates in the form of Clearing House Certificates, or to receiving such Certificates in payment of Loans without the ten days' notice. In reply to your enquiry in respect to payment in Legal Tender Notes of Certifi cates issued upon deposits, of Legal Tender Notes, I can only say that no distinction is made in receipts or payment by the Governinent between Legal Tender Notes and National Bank Notes; but the Assistant Treasurer will always be happy to accommodate the holders of Certificates by payments in such notes as may be preferred, when the public interests allow it. Yours very truly, Chairman Loan Committee. C. P. LEVERICH, Esq., S. P. CHASE The Banks not being willing to make the loan unless it was also agreed on behalf of the Treasury to pay the certificates in legal tender notes, the Secretary finally consented to it, and sent the following instructions to Mr. Cisco : SIR: Treasury Department, June 9th, 1864. You are hereby authorized to issue Temporary Loan Certificates for deposits of |