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states, old and new-north as well as south."

On October 25, 1858, Gov. Seward, in a political speech at Rochester, New York, from which an taken, said, "These antagonistic systems (freedom and slavery) are continually coming into closer contact, and collision results. Shall I tell you what this collision means? They who think that it is accidental, unnecessary, and the work of interested or fanatical agitation, and therefore ephemeral, mistake the case altogether. It is an irrepressible conflict between opposing and enduring forces; and it means that the United States must and will, sooner or later, become either a slaveholding nation or entirely a free labor. nation. Either the cotton and ricefields of South Carolina and the sugar plantations of Louisiana will ultimately be tilled by free labor, and Charleston and New Orleans become markets for legitimate merchandise alone, or else the rye fields and wheat fields of Massachusetts and New York must again be surrendered by these farmers to slave culture and to the production of slaves, and Boston and New York become once more markets for trade in the bodies and souls of men. It is the failure to apprehend this great truth that induces so many unsuccessful attempts at final compromise between. the Slave and Free States; and it is the existence of this great fact that renders all such pretended compromises, when made, vain and ephemeral." This same thought had been ex

pressed, though not in so apt language, by the anti-slavery writers and speakers in the North for many years before the great rebellion.

Mr. Lincoln in his speech at Springfield, Ill., gave the best definition of the catching phrase "Popular Sovereignty," showing its absurdity, that has been given by any person, (to the knowledge of the writer): "That if any one man chooses to enslave another, no third man shall be allowed to object."

Still this phrase, invented by Senator Douglas, had great influence upon the public opinion of the Democratic party, and upon the persons not directly connected with the party.

On account of the war of the rebellion inaugurated at Charleston in April, 1861, the question of providing the sinews of war by the United States Government,, when the second session of the Thirty-seventh Congress commenced, in December, 1861, was an important one, with the Administration, with Congress, and with the people. The report of Mr. Chase, then Secretary of the Treasury, has therefore became a historic document, in which he ably discusses the question of finance, and making suggestions which were adopted mainly by the Government in its subsequent financial legislation.

Mr. Chase, in this report, says in substance that he had set forth, with as much clearness and plainness as he was capable of, to the called session of Congress, on the 4th of July,

1861; he then stated in substance, that in that report he had submitted to Congress, in his judgment, the pecuniary means necessary to put down the great rebellion set on foot by criminal conspiracy against the Government and people of the United States.

He then states that the estimates of the several departments then laid before Congress contemplate an expenditure, during the year ending June 30th, 1862, of $318,519, 581.87.

Congress did not adopt the recommendation of the Secretary in full, but substantially, and made provision in regard to customs and internal taxes, as was deemed necessary to secure the sums proposed to be derived from those sources, and authorized loans in the mode and to the extent proposed by the Secretary. They are stated by the Secretary as follows:

"First. For a national loan of one hundred million dollars, or any larger sum not exceeding the whole amount authorized, in bonds or Treasury notes, bearing 7.30 per cent. interest, payable three years after date, and convertible at or before maturity, into twenty years' six per cent. bonds.

"Secondly. For a loan in Europe, or in the United States, at the discretion of the Secretary, of $100,000,000 payable twenty years after date, and bearing interest not exceeding seven per cent.

est 3.65 per cent., and convertible into the three years' 7.30 bonds, or Treasury notes.

"Fourthly. For the issue of notes, payable on demand, and receivable for all public dues, to be used as coin in payments and exchanges.

"Thirdly. For the issue, in payment to public creditors, or in exchange for coin, of Treasury notes payable one year after date, bearing an inter

The aggregate of notes of the two last descriptions was limited to $50,000ooo, in denominations less than fifty, but not less than five dollars. A further authority was conferred by the act to issue Treasury notes of any of the specified denominations, bearing six per cent. interest, and payable not over twelve months from date, to an amount not exceeding $20, 000, 000.

To provide for immediate exigencies was the first duty of the Secretary; and he performed it by issuing, under authorities conferred by various acts for payment to public creditors, or for advancement of cash $14,019,034.66 in Treasury notes, payable in two years, and bearing six per cent. interest, and $12,877,750 in Treasury notes bearing the same rate of interest, but payable sixty days after date.

His next care was to provide for the regular and continual disbursements of the war, under the acts of the July session, and with this view he carefully examined the various powers conferred on him; compared the probabilities of the American and European markets for capital; and considered the relative advantages and disadvantages of the several forms of loan. authorized.

This reflection led him to the con

clusion that the safest, surest and most beneficial plan would be to engage the banking institutions of the three chief commercial cities of the sea-board to advance the amounts needed for disbursements in the form of loans for three years 7.30 bonds, to be reimbursed, as far as practicable, from the proceeds of similar bonds, subscribed for by the people through the agencies of the national loans, using, meanwhile, himself, to a limited. extent, in aid of these advantages, the power to issue notes of smaller denominations than fifty dollars, payable on demand.

Upon this plan he hoped that the capital of the banking institutions and. the capital of the people might be so combined with the credit of the government in a proper provision for necessary expenditure, as to give efficiency to administrative action, whether civil or military, and competent support to public credit. The result thus far had fulfilled that hope.

Representatives from the banking institutions of the three cities responding to this invitation, met him for consultation in New York, and after full conference, agreed to unite as associates in moneyed support to the government, and to subscribe at once a loan of $50,000,000, of which $5,000,ooo were to be paid immediately to the assistant treasurers in coin, and the remainder also in coin as needed for disbursement. The secretary on his part, agreed to issue three years' 7.30 bonds, or treasury notes, bearing even date

with the subscriptions, and of equal amount, to cause books of subscription to the national loan to be immediately opened; to reimburse the advances of the banks as far as practicable from this national subscription; and deliver to them 7.30 bonds or treasury notes for the amount not then reimbursed. It was further understood that the secretary of the treasury should issue a limited amount of United States notes payable on demand, in aid of the operations of the treasury, and that the associated institutions, when the first advance of $50,000,000 should be expended, would if practicable make another, and when both should be exhausted, still another advance to the government of the same amount and on similar terms.

The secretary then explains the purpose of these loans: "First, to place at the command of the government the large sums immediately needed for the payment of maturing treasury notes and for other disbursements, ordinary and extraordinary; second, to secure to the people equal opportunities with. the banks for participation in the loans; third, to avoid competition between the government and the associated institutions in the disposal of bonds; fourth, to facilitate and secure further advances to the government by the associates if required; and fifth, to insure if possible, the maintenance of payments in specie or its natural equivalents and representatives." The secretary then adds: "All these objects were happily accomplished. Fifty

million dollars were immediately advanced by the banks. The secretary The secretary caused books of subscription to be opened through the country, and the people subscribed freely to the loan. The amounts thus subscribed were reimbursed to the banks, and the sums reimbursed, though then coming but little more than half the amount, enabled those institutions, when a second loan was required, to make a second advance of $50,000,000.

These two loans of $50,000,000 each have been negotiated for three years' 7.30 bonds at par. The first of these loans was negotiated and the first issue of bonds bears date on the 19th of August, the second on the 1st of October, 1861.

July 17. This negotiation, though less advantageous to the Government, considered under the light of a simple money transaction than the two prior loans, was in some respects, at least more so. It was coupled with no management for reimbursements, and entailed no immediate expense on the treasury beyond that of preparing and issuing the bonds. It was coupled also with an understanding in the form of an option to the associates, that on or after the 1st of January, a fourth advance of $50,000,000 should be made on the same terms with the first and second if practicable, and required by the secretary.

On the 16th of November a third loan was negotiated with the associated institutions, under the authority given to the secretary to borrow a sum not exceeding $100,000,000 in Europe or the United States, at a rate of interest not exceeding seven per cent. As no reasonable prospect appeared of obtaining terms equally advantageous by advertisements, and as it was manifestly for the interest of the government to negotiate at home rather than incur the expense and hazard of negotiation abroad, the secretary, under the authority of the seventh section of the act of August 5, 1861, arranged this third loan also with the associates, by agreeing to issue to them $50,000,000 in six per cent. bonds at a rate equivalent to par for bonds bearing seven per cent. interest, authorized by act of

In addition to the loans thus made, the secretary has issued United States notes, payable on demand in denominations of five, ten and twenty dollars, of which there were in circulation, according to the last returns on the 30th day of November, 1861, $21,165,220, and there remained in the treasury at the same date $3,385,105. The amount thus issued, so far as it enters into the circulation of the country, may be regarded as a loan from the people, payable on demand without in terest. The secretary then gives the following statement, showing the result of his financial operations :

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in the same month, upon sixty days' six per cent. notes, the sum of.. .... 12,877,750.00 There was borrowed at par, on the 19th of August, upon three years' 7.30 bonds issued for the most part to subscribers to the national loan................... There was borrowed on the first of October, upon like securities.... There was borrowed, at par for seven per cent. on the 10th of November, upon twenty years' six per cent. bonds, reduced to the equivelent of sevens, including interest....... There have been issued, and were in circulation and on deposit with the treasurer on the 30th of November, of United States notes, payable on demand....... Making an aggregate realized from loans in various forms of..








I WAS much interested in Hon. Isaac Smucker's sketch of Captain Samuel Brady, in the MAGAZINE of the current month, though it occurs to me that one or two errors have crept into the account. On page 345, he says an "Indian force was encountered place then called the mouth River Creek, since changed to Brady's Bank." By "Red River Creek" he must surely mean Red Bank Creek,

near a of Red

The secretary then mentions with regret that the receipts of revenue from duties have not fulfilled the expectations indulged at the date of his July report, and he gives two reasons, which are quoted: "The act modifying the rates of duties which received the final sanction of Congress, differed in several respects from the measure which he had the honor of submitting to their consideration In most of these particulars, especially in the diminished duties on tea, coffee and sugar, and in the exemption from the operations of the act of goods in warehouses and on shipboard, the difference, however, warranted by consideration of general policy was certainly disadvantageous to the revenue, while another, and perhaps more potential cause of reduced receipts may be found in the changed circumstances of the country, which have proved even beyond anticipation unfavorable to foreign commerce."


and by "Brady's Bank " he must mean Brady's Bend. These may be errors of the printing office. Captain Sam Brady is one of the local heroes of Western Pennsylvania, and his adventures have been the theme of many writers among us. My friend, Hon. A. W. Bell, of East Brady, upon the site of the adventure referred to by Mr. Smucker, a few years ago contributed a series of papers on local interests to

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