r:.
THE NATIONAL FINANCES.
Jtif.ort yf llir i in Ini of Hie Trimnrj
l tlirliilKil hint I'M, lor t In- lint I r.ft.
TllI'ArrKY PAl.TMl IT, W A Kll I NOT' PoconV
f.ci 3, J 20. In roiifonnily with the r 1,11 rehionls of
Jaw, tlio Sccrolnty lins tin- honor lo make lite- lol .w
jug rcjior! ;
In Ins k i rrt itmlcr date or llio 4'li of Drcom'irr
3'C, the Secretary ps inm'rd, ecC'.rdiPff to tho data
Im-nlslicd li 1 rii I. y this I'cjiarliiiont and by 'he other
loi iirluicnm, tliut tlio cxpt-ndllure of tlio Govern
Tmn.t for the tlirco quarti i of ili fiscal yenr pinling
fnne 3), lPCO, would exceed tlm receipts f 112,131,.
?1T 2i. The result w widely difTTpnt. Tho ro
c-ijit cxc(p(iod tiir p.t matRs 5'in,!ns no i 4i ; t
rxp mliturrs foil short of tlio pS'lmrtlps .200,r(,.
2.V 30. Tlio following stn'omr nt exhibits tho item.
nf inpr'aeoi receipts and (!pprpio of cxpptidtttiros
in comparison with tho nMmntcs :
,sinf, mm of (ho f-:im"'rrl nn,l ArlunJ Herrlpt-i anrl
F.rp mWurex't tl" United .Slates from October 1,
Wr. (Will.' S, lfOrt.
BErnirTa.
Excess of re
ceipts Fstltnnterl
Actn at.
C "Hi tut.... ftp 0 0.0 H.fl HO a 13,U'7,im,s Pi t$2,m 0'IR SI
I 'in 's tOI.OnO-lO 532 J2,(4 40
irilcnnl Uo , I I
.time.... I75.W,l!Ut-im -ill (107 02777 37 607,927 77
JV. i c c 1 1 a-
l.lOl,.,,
I' net U1X
3o o ooo n'
305 flIWI (lP0
6T IBS
48 2S 125 DO
IP 25 125
1,913 04 i 82
J lli l 642 8
395 405 905-41
67,158,615-41
i;2 Ml 4-tl R-
Mil v5,n05 4t
bl
Ocr. i,
S 312 lir.M BIB 4'
F.XPENPITVltKS.
FstlinatCil. ' Actual.
Excess of
estimates.
1,195,50,1 15
l.'l service 4.32,994,05., 38 :il14K,5O0'5
J'; rt-lonsanU
J n-iimis.. ..
TV ir Jif part-1
hi ut !
Xil De
partment . I
Interest on1
jiuli.tc debt'
Iieluct dcfl
cieney In;
m tin ate
p.r irito-j
ru t on I
pnh.Icde'lt' .
12,256 7!'0 94 11 001 285 79
S07 7SR 7-50-57 1 119,080.404 50 138,708,28 V07
35 COO OHO-001 20 8 02 71631 ' 8,187 2x1 89
i
6,R11 86875 96 8 91 260 1 9
$!i0,09.i2 74
80,391 44
Mi'U ,621,235 30
,4H4 85'I,4li2 IK
284,824,227 34
HKOAriTUI-ATIOW,
yif'nal receipts, including
cash balance a48,564,420-88
Faunacd recclp'B, In ;luj-
ui oasli balnnce 372 058 515 44
Fxccsii of rncelota over eatlmaten......
J tuuated cxpoMtluirti.... 44,3,462 4
Actual ixpcudltuies Wi 324 227 34
5H9 933,905-44
Actual expcndiiurcs les thancstlma'd. 210,5.,9.235 50
8'29d 4:iS.14ii"74
I lie followlntr is a etafomnt of rocolptu and oxpen-
tli' urcs lor tlio liccal vi'ar tiKiing Juno 80. 1803
i iiiancc In Treasury, areo-
ali e to warrant, July 1,
I'v5 ft.R58.309 -5
T wlilcli ailu baanco of
mmory trust funds not
included in the above
baauce 2,217 73231
MaUni? balance July 1, 18G3, Including
tniFt fund ft.1,076 042-09
Itocelpto Irom loans 712 81 5.VJ 05
Kicclpta iroiu ouatouia 179,i)46.tBl-M
jhecelpu irom lumla wi5 0.1 1 m
JtccelpU irom dhoct tax.... 1,U74,7M 12
l'.occlptB from lntcrual reve
nue 309 226,813 42
KcooipU Irom mlM-el ancous
sources o..ii!i will
5.58.C32 620 O6
1 273,060.2152.)
FXPP.KnTTrPPH
Kedemptlon of public dobU S20 321 72561
Ji-or the civil
service f41 056,961 54
J'or pensions
and Indiana. 18,82.41 91
For the War
Department 284 449,70182
For the Navy
JUepanmint 42,324 11862
J' or Iniereston
pobltc Uebt.133,067 ,741'G9
, DZU.IDV.tllO'lB
-"1,141,073 606 09
lenvlng t balance In theTreasuiy on tbo
It-nt day el Ju , 181,6..,
....132,887 540-11
The tollowmor Is a ttatcmrnt of the recoipts and
rxpcccituioa lor tlio quaiter ending SoptemDorCO,
1!C:
Halnnce In Treasury, BTeeable to war
rants, alUlV 1, 1T2 RS7540-11
Pccelnis Irom loans
174,011,622 21
Receipts from customs 5U.H43 774 24
Receipt Irom lands tiH 399-72
licctlpli from direct ax.. 340,54 39
Kiceipls irom mwrcal
Kiivenue 89,106,993 08
Jtecelots Irom uilscclla-
i.eoua souicea 7 982,764 24
l58 5ol,386 57
45,4O0,55;T92
SXPFNDITURES.
F'ur the redemption 01 the
public it. bt $243,582,833 41
J- or lie civil service Il,8!i3 7.1t-44
lr or pensions and lnd-ana- 11,788 975 6H
l ol the ft ar Department. 1:) r33,2'4 03
Kor the i-ary Department 7 878,609 17
For interest on 1 he public
dot 83 865,309 91
823,041,768 73
I.eavlni? a balance in the Treasury on the
tirt day ot October, 1866, of. 1I2 418,779 19
Tlio lollowinn statement exhibits the items of
incicape and Uociruso ot the public debt lor the
iisca.1 year endmir June aO.lSOC:
Amourtoi public debt June
;t0, ltKiB. 82.682.59S ,026-52
A mount 01 cash In Trea
sury 8,5808-15
Amount of pub'ic debt Juno 30, 1866,
lerncash InTreasury 82,681 734 717-38
Amount it public debt
June 30, 10 W 783,425 ,879-21
Cash!n ireaury 132 887.B49 11
rrount of public debt June 38, I860,
less cash in Treasury
2.050,538,330 10
31.196 387 29
Net vcieasc.
This decrease was ennsod a' follows, by payments
und incrtme of cash in Trenrutyi
Jtonili, 6pircent actsJuly
21 11141 and Aprl 15 1842. 110, 139 77
3 ri-asiiry notes U percent,,
acts l.eceiiitier ii, 1857,
and Murch A I1 2 VOW
itouds, ft pr cent 1 act Seo-
teiuber 9. 18S0, ( l i xaa in
diumity) 28J OUO00
Tri'tti-urv notes, 7 30, net
J u y 17 lnl 280,750 00
( irtltlcutcs of lndebtsd-
nem 6 per cent,, act
March 11861 89 3x1,000 00
1': t-aniry notes 6 percent,
March 3. 1803 38,884 48C -00
('ompcund Interest notes,
8 perce.it., act June 30,
181.4 34 743 9,10 00
Jtonds, 6 per cent., act
March 3,1bC4 1 551.000 00
tVuiled HiaicH notes, acta
July 17, 1h(i1. and Febru
ary 12 82 2H0.4I1 W
I ' 11 i ted Mutes uotes. acta
february 25, Juiv 11,
M,2 and March 3, lsM... 2,0C8,7C0-0I
I'orftal currency, act July
l i l""Oi X,B"f ,H'I w
Cah In Ureasuri , increused U'2,029 2311-96
Cross decrease....
Froin which deduct fcr increase, by
lionds,6pci ceot.,actB.Tuiy
1, lBi, and July 2 14,
W-sued to cen ral l'acillo
Bui road Comiiuiiv. ntn..
333,52i,6jS 61
lutuiest payable tiuamul
money ,
I'reai-ury notes, 7 I'ls nets
June 30, i4, and Mureti
II. Irrt'. Interest payable
(11 lawful money
Temporary loan. 4 6. and 4
fi r cent , acta July 11,
m,2 ami J una Id, 1,4. . . .
(ju)d eertllicalea, act March
3 int3
Fractional cuirency, act
Maich I. Im.J
Hoi.Js.Operct,
4 784 000 l
134,341,150 00
30,450,13515
10,711,10-(W
4 019,756-OS
act JUiy li,
1-iil 146,0't'l)O
Jion(l,6 perct.
act a.arcti 3,
1rui4 8.882.5U0 00
lionds.O oerct,
ai t J1100 !).,,
IMH 8 2U,U.i'ui
Hol ds 6 per i t.
not Maivli 8
I'.:! 5-!2 .'."0-. 0
115,782 05)011
TIIE DAILY EVENING .. JELEGRAPn. PmLApFJ.PnrA, TUESDAY, DECEMBER 18CG.
I 11. e fnl!(.vini atnt rrfnt exh'lii'o the I'eniaofm
cr' n'o nnc (tic r nK. ol lb" pnl. I10 di bt t r ni" lour
I month Ircrn .lime JO, 18i,(; to Octol-er 31. 18,'i:
An onnt of public dfbt
.lure :ih, imi; 2 783,4:5 879 21
; T1.0111 t 01 iiiNh In TrrA'
I hii).' 132,817 51911
I An. ( not of pil.'lc (tel., June 30, MM Ifxi
i i-i.sii In ' reaury $; (ill,. it 11 1 19
Arennnt orpn1.llc debt, Oc
n.i'i r ;;i 1 $j ia r,v 1C1 ''4
A il.l fimi.iiiii ol o d tiimlpii
ind 111 Hindi (1 1 1 'bt In-
e i.ilf il lu iictit 01 ,1 line, i
i.ii, 1' not in rtiitp'nent. 1H1I5-Ii
2 681.751.(181 82
A 11. tint of co'li in Trea-
131) 320 910-01
An onn'rf t tib'lc debt, PclobT 31, l1"
1 uu in i reafury
.1,561,4 24 1 2 1 20
rt (lccr aa'
99 114 '28 !M1
IT bicli uiprcoso was canned aa follows, by pay
mi Ms :
Howls 6 per cent. . act July
21, Itll. 111 (1 April 15 1842
llnmK H per cent act Janu
ary 28 ixr
It. .m,s. 8 per cent., act
March 31,1-48
Iton.lf, 6 per cent. . acl Sep
tember 11. 18,'s-, (Texas lu
iluin nit) )
'.. nil-, f per cent., act
A arch 3, 18 1, (I en-Ior-tkHj
ft 11, BOO 10
1.572 459 0
617,400-00
175,f '10 00
1 19 750 00
2 629,1 1' -09
6.150 00
75,172 997 78
21,209,0, 0 00
B"0 000 00
11,200 09
10,510,010 00
82 217,230-00
Treasury notes, 6 per cent , acts Decem
ber 2,). 167, anil lliircli 2. 1861
Temporary- l.m-n 4, 8, and 8 per et nt , act
February 25. Match 17, Julv 11 162, and
.1 line 311, 1M.4
Ceitllitatis 01 Indebtedness, 6 per ceul ,
acts Inarch 1. 1862. and ilart.li 3 18t.S...
Treusuiy notes, 5 per rent., one ond two
yenr act Mar. li 3. 1863
I'eaMirv notes 7-30, act JuU 17, 1861
Ci innoiinil inteiest notes, 6 per cent.,
act June 30. 1864
TreiiMirv notes, 7-;,0, acts June 30, 1864,
and V a ch 3 I8l5
l i lted States notes, acta July 17,1861,
hii February 12. 1862
l iil'ed Hia cs notes iicts Fcbruarv 25,
IMi2 July 11. Ib62 and March 3, 1863....
Fosiai cunency, actJulj 17, 1862
3,8.4-R0
1,091 177 00
691 U31 75
201 652,312!T
Cro a decrea-e
From which deduct lor ino coso of
debt and decrease, of etuh In Treasury:
Itondj 6 per cent , act July
181.1
Itouds, 6 per cent., act
March 8. IVA
lb. mis 6 percent. .aets.Tu. r
7 030 on
l..l,738,5C0O0
1,101.4 ami July 1
Issued to Central Farlflc
Itnliroad Company, etc.,
Interest payable In lav.-
lul money 3.R-IA,t00 W
uoio cerinicaica act maicn
8. 1K63
Fractional currency, acta
March 3, 1863, and Juno
30, 1864
Case in 'Jreasary decreased
181,800-00
1 2C8 165-12
2 500 583-19
109,538,103-61
Net decrease ()9,114 -20V0f
1 he following f-tatcmont exhibits the Items ot in
crease and decrease 01 the public dobt, Irom the
lnpliest poiut, Atifust 31, 18.15, to October 31, 18'J5;
Amount ot
public debt
Auust 3i,
1m., as per
siuteineiit 2,81V9"7 626 '
Amount of
old muded
and un
t u n d e d
debt 111.115 18
$2 846 021 742 04
Cash In Treasury 88,218.05513
Amount of Public debt AUffUst 31, 1865,
less cash la Ircasury 2,757 .80-1,686 91
Amount of
public debt
t. tuber il,
iMiii. aa per
aiatement . 2,081,636 960-34
Amount of
o d luoded
and u u-
11 n i id
ucbt 114,115 48
Cash In Trcaaarj'
2,681.751.081 82
1 (0,T26,WW 62
Amount of public debt, October 11, 1886,
li-i cash lu i reasnry.,
. 251,424.121 28
Ket decieaee...
206 379 885-71
Which decrenso was caufed aa follows, by pay
mcnta and luctoaso ot cash in Ircasury :
Konds, 6 percent., act January 28, 1847.. 1,672,450 00
Honda, 6 per cent., acta Juiy 21, 1W1, and
A pill 15, 1842 144 03977
Bonds. 6 percent., act Match 31, 1818.... (.17,400 00
Hotids, 5 percent., March 3. 1864 1,700,75004
Bonds t per cent., actheptember , 1MM),
il'cxas indemnity 1 455,000-00
Treasuiy notes, 6 pec cent , acta Decern
ber23 1957 and Match 2. 1861 8.300 00
Temporary loan. 4. 8, and 6 per cent., acta
February 2i. li 62 and June 30, 1864 62 148,714 00
Certiiliates ot Indob edress. 6 percent.,
acta March 1. 1H62, and March 3, 1863... 81,911 000-00
Tri aur notes, 6 percent., one and two
jeara. act Match , lrJ 31 000,00 09
Trcasuiy uotea. 7-3i, act Jaly 17 1861.... 215,oi8)-00
(Jouipoui d Inurat notes, 6 per cent , act
June 30, 1864 66,512,020 03
Treasuiy notes, 7 JO, act June 30, 1804,
and March 3, 1865 105,985 709 00
Uni.ed Mates uotes. acts July 17, lath,
and February 12. 1862 134,610 00
United States notes, ucta February i5,
1802, July 11, lt-,62, and March 8 1863.... 42 830,174 00
1'osiul currencv. actJulv 17, 1862 3 029 739-63
HuBpended requisitions 2 111 Qjt (H)
4,5,553.897 67
421118 905-49
Increase of cash In Treasury.
Gross decrenso 447,662,803 16
1'rom which deduct for increase:
lioni-s, 6 per cent., acts
Julv 17 and Aufust5,18tit. $114,750 00
It, uds. 6 per cent., act
March 3, 8 882 ,500 -09
Itouds, 6 per cent, acl June
Mi, 1814 8 211 0 0-00
Bonds, 6 per cent., act
ft urch 8. 1865 205 281,000 0
Itouds f percent. actsJuly
1. 1862. and Julv 2, 18' 4,
ii-sued to ( eutrul l'arillc
liitliroad Company . etc ,
liucrest payable In lawful
money 8 624 000 Co
Fractional currency, ects
March H,lh63, auu June
311, 1864 4,273 007 45
Co d ccrtillcau-t.act March .
1,IH,3 10,850 880-00
1 4)211. 283,237 45
Ket decrease 206 379165 7
Theft Rtntcmcnts arc in the liiprliot deree encour
aifiuif llieyain conclusive evidence ol tlie areat
ucps cf our resources, and they c.early indicate the
I atience of the i.eoplo under so f imposed burdens,
and Iheir uuwilliUKUtss that this deot should be a
pcrpctunl iiieumbiuuce upon the country.
It is not expected, nor is it perhaps desirab'e. that
the some rate of reduction should bo continued. A
considerable diminution of taxes was elT.icU)d by tho
ainei.cluntitsof the internal rcveuuo law, at the last
session of (Jonproi-s. A further diminution of inter
nal taxes, and a inodilication or the ttinif, which will
doubtless bad to a icduction of customs duties on
many articles, will be required, in order that produc
tion may be increased and new life mtused into cor
tuiu btancbes ot industry that are now luuguialiinjr
under the burden? which have botn Imposed upon
them.
Hut, after the proper and lucc-ssarv reductions'
shall have boon made, the revenues will doubtless
be sufficient, if the Government Bhall bo economi
cally administer! d, lo pay the current expoiires, the
interest on tho public debt, anil reduce 1 lie principal
at tLe rate of fiom lour to h' ye millions por month.
Id order that this may bo done however, thoro must
be no additional donations to railroads no payments
l.Qt.in the fullilmtnt ot contracts, and no unneces
sary expenditure ol money lor auy purpose what
ever. With proper economy in all tho departments
of 1 be Government, tlio do t can be paid by the
feneration thntcrouted if, if wise and equul reveuue
iiwb shall bo enacted and coutmuod by Con press,
and thete luws are luiltitu'ly enforced by theoflicurt
charged with tboir execution.
That it is the will of the people that it should bo
paid, and not perpetuated, is clearly indicated by
the favor with whic'i its rapid reduotion during the
past year liaa been repardad. The idea that a
uatloiul debt can be anything o'so than a burden
in which thoie are come compensations, but still
burden, a mortuajre upon the property and lndustiy
ol the ici'iie 'b tor unateiy not an American idea.
In countries la which the iucJie expenditures re o
heavy, or ibe resources at-oso small that no reduo
tiou of their pubho debts is practicable, and whore
national securities Leooma uionopo ized capital in
the bands of moneyed aristocraoios, who not only
absorb tho means, but irivo direotiou tolhesjuti
niei.t ol tin- people, public del. 13 may bo regardud as
public bleAiii;'s; but no audi labacy wdl ever be
count. .imiieej by tlie free and int'.-iiicon' people of
tlio Hum ,1 S'.ule. ' , . i
M01I111... m, our history bug croatetf so pinch sur
prise, both ut lu.mo and abroad, as tno reibu-.tioa of
our iititiomil ii i,t. -j be wonder evoliod by th
raj i.hlv W.1I1 vi.-. h it was cieated i primtiy ex
ceeded by tno iiiiiniration of the leMoluuon of the
lax-pav-. s li . 'iiM.lres u,t it shall be siioeul y .-liL)-ui..l..-ii
Joe tony'ciiuu U becoiuini( iantuued
upon iLi.t j...o.''jr mtuil tnat it u iuiportuut tyr
cepiiomy in Hip nn'ional csppofes, for the mnlnt'
11,11 ce ol a tiue 1!. iiuH-iae 111 tno admiinstratioti ot
li t- (.OM-ri'mei.t, tor the cnuue ol (rood mum's anil
ol M.b'io vii 1 lie Hint t lie po icy 01 a Mead y annual
reduction hi the di bt slum il be di finitely and m'-xo-ihblv
I'MablMieU. JS'..lhin short ol this, and thit
rcoiKinvin the natioi nl tx,endtluies wh eh w II
rem er n u aci eablo, will reconcile Ihe p. ojilo to tho
Unci us of ItlXltlOll.
A i.alit-nal debt mus! ever l.e a severe strain upon
republican iiiMitutioti?, and o.irs should not in sub
ji ut t'i it one oar loiiircl lhau is nece-snry. To t 10
t.eiielna'ion ol tic (-Mstir.tr debt o tho I'nited
.sitiles liiere are also. It ma- be proper to rem irk,
'prions objections crowinir out ot the circumstance
ui.ilrr l.icb it was erealed. AUhout-h nine red in
a (rnat trngc e tor the preservation of the Ciovern.
mi i t. and tberelore esrecially PHcred in its charac
ter ils burLcns a.p to 1 e shared bv Ihofe tu who n it
is n n minder of humiliation ami de'eai. It is ex
ei cdiiiyly desirable that this, with other caues of
heart! 111 nines and alienation, sliou'd bo removed as
riminly as possib e, and that a. I should disappear
with tie proerit (rinera'lou, so that theie mav bo
I. 0II1111B in the future to prevent t.tat unity and pood
b e Ing between Ihu sections which are necesary lor
true i.ntioi.al prosperity,
I In. s-ecieimy ictiels, notwith-il'itulhig (bo tnri?p
re luct Ion ol the mil!.. mil l-it , und (I,,. hnt isCmti.rv
eoiiilition, in otlierrespects, ol the Nntionnl Treasury,
Hint little pn iti ess has been made since his lust report
t.ward spee.e payments. Tlio views preen'ml bv
li mi In that re)..r(, ll.hi.iuli Indorsed In tlio II nnii
ol l;eiire.-,entatlves by a nearly iiiiniiiiiions vote, worn
hot Mituine.l by corn spoil. ling leMaUon. Inslead of
I cut auihi rl.sl to reilneetlie p.tper clrciiliul.n) ot the
eiiiinti-.v, iieeordinu to bis lei-omiiieiiib.tions, the
11 11, 01 mt of I 'hi led Males notes w bleb Iih wus per in it IP. I
to tellie was limited to li.,ei.ii,HKi for lb,.' six
months ending Octohei- 11. nnd to l oii.h'IO per ni nlh
llieieiilter. in I lie meant I uie. t lio r-'diietlon ol Hu-e
notes nnii or ttie notes ot the Stnto Hinks. has been
II. 111 ly biilanerd by tin. lnciease of the el 'culatmn of
li e .Natioiml jlnnk; Mini spoele eomiiiands nb-.iitthn
saine preniimn It did when Ihe last Treasury K 11 lit
was pu pated. Having been (bus pn vented Irom
Ink mt tLe lira important step toward 11 itm n lo
Mi, l ie payments, the .Secretary has nvilnly dlrei-tcl
ins attention to iin asuies lookini! lo 1111 lnercns. ol
etlie ency in the collection of tbo revcniiei, to the
i-onveision ol interest bearion notis mtn 5-Ji.
bonds, and to 11 -eduction of Hie public debt. What
has bi en 1. (".'(. inplmhn, I in these rrspocts, an. 1 in not
nlie.idy iindeisioi d by the country, Is eil,,r'ln"d else
wherein this icporl. The Secretiuy has iiltodeem d
II to I 0 bis limy louse such mentis, wit bin hWcou
I nil, as ere, in liU Jiubrtiieiit, best eulciihited to Keep
Hip I ,'iisi: i,r the cuuiitry in steady a p .-sil.le
bile eoiidiicled (.11 (be uncertain basts ol' an irre
deemable cuireni-y. To necomidisli this, be has
thought it neci ssiiry to bold a liHiidsotne reserve ot
coin in the Trea-urv. For doltii so. be hai been criti
cised by many very lnlollik'ont persons, some 01 whom
have condemned the policy us Involvim; 11 heavy bjs
to the country, in tho way of Interest; others have ob
jected to 11 as a failure on Ills part to avail blmself of
means within bis control for reducing- the price or
coin, and thus approximating specie puvnienta; on tbo
contrary, not a lew have pronounced ull miles of gold
by the Government unw ise, on tlio theory that il the
coin received I01 etistotiiH, and not required lor the
j.n.vmetit ot interest, should be permitted to accumu
late until it should roach nbotit tho minis proportion
to the outstanding I'nlteii states notes that, in former
da s, the coin in the vaults of well-mnnagert blinking
institutions Mislained to thofr Immediate liabilities,
i-i ecie pa ments might be resumed, without a reduc
tion ol the currency, nnd without rexurd to the condi
tion of trade between tbo 1,'ni ted hiiite.j and other
nations.
I nder these circumstance, feclintt sensible ot the
picat iesioi.sil.llit of his position, the Secretary bus
deemed It safer ami belter lor tho country, lo acl ac
cording lo the dictates orhis own Judgment, carefully
r.'k-ardii.t; the condition ol the markets and of the
Treasury, rather than to take his direction from Ihoso
who, however intclliuent and able, were under no olli-
I ial obligations to the liovernment, nnd micht be loss
accuiati'.y ndv!ed In regard lo the actual stuteof its
tinaneiul uflaiis. lie has teiraided a steady market as
ol more importance to Ihe people, than Hie saving of ti
lew millions ol dollars in tho way of Interest: nnd ob
servation and experience buve nsBiiieU lii 111 Hint, in
order to secure this steadiness in nny considernblc de
tiee, w hile business is conducted on a paper basis,
l hero must bo power in tbo Treusuiy to prevent suc
cessful combinations to bring nbout fluctuations for
purely Hpcotilattve purposes, llo hns also been clear
in bin convictions thai specie poyments are not to bo
restored by an accumulation of coin in tho Truostiry,
lobe 1 niil out ut a future day in the redemption of
lovei'tiuicut obligations, hut rather by qiiickoneJ In
dustry, increased production and lower prices, which
can ulono make tho Culled States what they ought to
be a creditor and not a debtor nation. TneiA views
explain ihe course that bus been pursued with the
no.a wlilcli, cliirtnai bin arimiulsiration of ilia depart
ment, has come Into the Tre.taiiry, lie bua psinitiitHi
it lo accumulate w ben the use or tho sale of it was not
iiicesfnry lor paying Government o ligations, or to
prevent commercial panics, or success in I combina
tions nguin.st Hie national credit; und he bus sold
whenever sales w ere nece-sory (o supply the, Treasury
wiih currency, to ward off financial crises, or to save
the pi.pi r circulation of the couiiirv us far as prac
ticable, Irom unnecessary unddamau-liigdepreiiatioii.
l-'or making sales lie alone is responsible. II, in eon
ilnctiiig tbetn. any favoritism bus been shown, or if
the Interests of uny particular cluss have been espe
cially regarded, It lins been without his knowledge,
nnd in violation ol his iiiHtrtictlons. lf has not the
sliglitcsi reason to Hiippo.se, however, that they have
not been conducted honestly, fairly and judiciously.
It niny be hardly necessary lor tno Secretary to re
mark that his opinions have undergone no ebuuge in
rixard to the importance of a restoration of the specie
standard, or the means necessary to etojct II. lie
tiusts. however, that lie has not been understood as
entt rtalnliie the opinion that a reduction of the cur-
II ncy would of Itself necessarily bring about specie
I nymenus, ulthouuli the chief nnd essential means lo
elici t the desired result, lie regards a redundant
lecal lender currency ns the prima cause ol our
financial ilillicnltle.s, and a curtailment thereof
indispensable to an increase of labor nnd a re
duction of prices, to Biigtimenlatlon of exports and
II diminution of Imports, whicn ulone will place the
Hade between the United States and other uutions 011
1111 equal und : fttlslactory footing.
Ju order that his views on this point may not b?
misapprehended. Hie Secretary trusts that lie will be
pardoned lor referring (even at a risk of a repetition
ol what he lias horclotore presented in other commu
nications to Onareas und in other w ays to the coiiii
ti y 1 to certain laws, well understood, but too ofmn dis
regarded, which rcuu'nlo international trade and con
trol the movements of coin. We have traveled so far
from the specie standard, and arc so blind. :d in regard
to our actual tinancial condition and our relations
wiih other ci untrles, by an inflated and ii redeemable
1 111 rency, and by the exportation ol our securiiie-i
that ficquent recurrence to inexorable comiiieroi.il
nnd linnmial laws is necessary.
Kvcr since trade commenced between the people of
ditlereut nations, gold und Hilver have been the only
1 eliuble und recognized measure of vulue und urn. limn
of 1 xchui.t;es. While ill their internal trade other
n presentaiives of value have, to a greater or less ex
tent, been used by ull nations, money made of these
metals btiii been pronounced by the Judgment of tlio
world, the only currency possessing the nitiibuies
necessary lor u uniform und universal citculaliiig
miiiitim. From this Judgment there Is no appeal.
Js'ol only Is it the true ntul universally acknowledged
measure of value nnd mi dium of exchanges, but by Its
rcgiilniiii How, it Indicates the condition and the ro
I'lltn ol'lrude between different nations. Water dues
not more naturally seeU n level, ttiun does specie
(low Irom one nation lo another for the payment
01 balances cieated by an unequal exchange of com
modities. Trade between nations Is generally and
chiefly conducted by tin cxeh.mg. Jnf their productions;
but as these exchanges ure pever oxaetly equal, there
lit c constantly occurring balances to be pnhl 11 some
thing else; and, in their payment, nothing but the pre
cious metula is a legal tender. It is lb s necessity lot
paying buluuces In coin which regulates the trade of
nations. 11 la this great commciciul an.', financial luvv
which imikis tile nation Hint sells more than it buys,
t i,c-cri ditor mttiou, and Hie nation that buys more
11,1111 it M ils, the debtor nation, and recognli's no
i ndium but coin In the payment of balances, that de
li indues the question of the ability of the t tilted
Mules tu resume und maintain specie payments. If
ihu b; lance is in our favor, or It' not lu our lnvor. If
t he hl.lu lie o u;;ainst ns is so small that It can ho paid
will out 1111 e. iiaust ing drain upon our precious metals,
t-pecie payments can at once be reiumed. .Such, 11 11
lorltint.tely, Is not the fact. Notwithstanding- our
heavy exports (luring the past year (.thai of cotton
having been 6..(i,6V2 r-211 pounds, or nearly l,(i,m,o'iO bales,
u quuullty greater than our emtio crop 01 the present
year.) the Lulled States urc hugely adobior to Europe.
Alow fi-.cts will put us right on this point, itelwecil
Ihe year w lieu gold was lirst discovered lu t.' ili
loi'iiin, and the fa si of July, lni'S, the product or tho
fold and illyer mints of the United Slal'-s was about
fl mi) out) ft'i, nearly ull of which bus gone Into the
W( rld's general stocK; and His not probable that the
umoiint of gold Mid sliver now In (lie. T'ii!l,:d Stales Is
veiy much larger than It was eighteen years aiu,
miring tho llscul year ending June is.i.i, the
1 lilted States Imported:
I orclgii merchandise free of duty '".8,8 il,7".9
Foreign iiierchuiidi.se paying duly ;ijs,i.,,.. ,1
I2".:!. 19,810
Offoielgn merchuiidiso there w as re-ex tiorte-.l; -
Free ol duty... ?! .! r. ) .7
1. Pliable H.4:!4.".'U
Total (mixed gold nnd currency
value) )l,:ttl,rvi
Which, reduced to currency value, was
equal to f lu.litl.-J:; :
Total net imports foreign merchandise,
valued in gold llr,iH6,577
1 m 1 oris, specie l.:r.'!t..'i
Of which there was re-exported.. Mnoji'i;
Net imports specio
'Jotat nut imports, loivl,n men haudlse
und spec-it-
Imiii it the liscal year ending June :t.i. lii.;ii,
the I tiilcd htaic-s t.xporlud domestic imr
chnndise. eurren.-'v valuo. iiiiS.utii.Sii.'t. ro-
ii.,i-s.tvj
1 l .-,!. I rr.,rt '.-t !" IIV
Specie exported H2,0I3,3T4
Ull. IU IU K'lJ ...im. -
Total domestic exports, vulued in gold ti'.,!iu:,i.".9
A I panut bolnnco of li tide, valued Id gold... i-',t!09,.'i77
ut thwe figines, taken from thu tcporis ut the ens
t. in bouses, do not present the whole truth. For
many yeurs lliero lius been u systematic under- valua
tion of foreign merchandise Imported into the L lilted
Slates, and large umoiiuts bava la-tut smuggle i into
Ihe cotintrv along our extended sea-coasts und
Iroutiers. Tn make up lor iinder-vul.iutlons und
smuggling, and lor cost of trunsportulion pai 1 to
loieign shipowners, twenty per ceut, at least nbould
be added lu the Imports, which would make Hie
baluuce for the past year against the I illicit Mtn tua
nearly (1(hj.0o.i,0(si. It is evident (but Hie balance
have been largely against t tie Lutlv't. s-.:iu toMO'i.e
yean. pn-t. wha'ever inn v Live lienri the en-unm hou-e
1.1111 ni. (in 1,0 nil, (i fioiiud 1 .11 the l.u l l,r a. coante.i
i"i. I .1.1 11 vi r.v huge ni.ioniu i-i Am.-rnri bonds is
now l.i'iil In l uropc, win. li are tUiiiulcl as lollows ,
I en. .1 Mntr'S bonds
Mm.- anil Muiiii Ipa 1 bi nnr .. .". !'!.".',".'
1'-. 11 10a. I ami oilier stocks umi biiii.i-i
.... t" .,OI1 9' .11
... l.ill.M.tUI'Ht
.... 10I,IH),UO:
7, . , , ' Ml -HI.ll.lO
" ''VI' t.f.oin ibese figures, tlo.t the O.il.imei
are m ,. ,0 st 1, h. and chieity t.vtbe exportaiiou ol our
oov . 1 1. incut bunds, nr.. being temporarily and iin
juevidentiy nrrnnaed. temioiuri;v, bo. .110,0 a laro
portion et these bi.mN bavo h.'eu'li.M.hi on specula,
tion. and will be iilely lo bo lelurned wnenever
l.iuineinl iioiibieH in tlio coomri. tn which tlioy me
'"'Id shnil make it neci-Mii y lor th" holders to n ail 'u
upon them, or wbenevel sat Isf.iclorv profits Can be
load,. v returning them, w inch will bo when they
luatlv npproai b their par value in coint improvi
ih nliy, because Ho y are tieini? purcbas. , at very low
prices, end because their exportation Mimi'ilutcs
noporls, nnd tints ei Ipptcs homo Indiisiry, Notliinir
Is moie certain than Ihe (act that there can be tin per
manent resumption of specie payments lu thu Limed
. t : 1 1 -. 1 1 1 1 1 1 1 Die ba ances between lliein and other
i.dMoes shall be m.ideca-y by an cxporiaitou uf Com
m. '(Hiles, Including tn.. products (.1 the mines, equal
at least to our Impovtat Ions, and until provision shall
I. e made lor returning bonds, or lor preventing their
return at uiiprnphions times. This suite or thin. It
Is conceived, cannot be ellucteil without n cbungo in
our linanclal policy.
There being but one universally recognize,! measure
of value, and Hint being it value In itself, costing what
It represents In the labor which Is rennired tu obtain
II. the nation that adopts, either from choice or tem
porary necessity, an inferior standard, violates the
financial Inw of the world, und In evltably sullsrs for
Its violation. An irredeemable, and consequently de
preciated currency, drives out of circulation the cur
rency anpoi inr to Itself: and il made by law n legal
tenner, while its real value Is not thereby enhanced, il
becomes a false and denmral Izing st undurd, under the
Infl. icnces ol which prices advance In n ratio disprn
portioned even to lis bciuM depreciation. Very dif
ferent from this la that gradual, healthy and general
advance of prices which Is the effect of Hie Increase of
the precious metals. The cold which Is obtained In
the gold und silver producing liistricts.ullliougli il iirsl
iill'ecls prices Within such districts, following the
course ol trade, nnd In obedience to Its laws, soon
finds its way to other countries, nnd becomes a part
of ti.e common slock or the nations, which. Increasing
in i.iiioiint try the regular product of the mines, and
lu activity by the growing demands of commerce,
advances the price ol labor nnd com modules through
out the commercial world. Thus, tbo products of Hie
American, Australian and Itussiun mines lend first lo
advance prices In their respective localities, but the
operation ol trade soon distributes these jiroducls, and
enterprise everywhere leels and responds to the in
crease of the universal measure of value. All this is
healthful, because, slow, permanent and universal.
The coin produced lu any country will be retained
there no longer than ils productions and sales keep
the bulai oeol trade In Its favor. As soon as it becomes
cheaper (If this word can tie properly used 111 regard to
standard of value) in the country in which It is pro.
duced limn in other accessible countries, or rather
whon It will purchase more in other countries (adding
Interest, tho cost ol transportation, duties, und other
necessary expenses) than In that In which it is pro
duced, or when il is required to pay balances in other
0 untrles, It Hows to them by a law as regular and as
certain as gravitation. Jlence, although the precious
metals are produced inconsiderable quantities In but
11 few count ries, they affect the prices In all. Mot so
wiih a paper currency, which is local In Ils use, and
In its influence. Its advantages, when convertible,
nre ndmllteil; lor, if convertible, although it swells
thu volume of currency, il rut her increases enterprise
t him prices. Its convertibility prevents expansion,
while its larger volume gives Impetus to trade and
ocentis greater demand for labor, lint when a paper
ctli rency Is an Inconvertible currency, and especially
w lien, being so, it la made bv Hie sovereign power a
legal tender, it becomes prollllo of mischief. Then
specie becomes demonetized, and trade is uncertain in
its results, because the basis is fluctuating; then prices
advance ns the volume ot currency increases, and
, i.-ijiii'r 113 uii-y uuv tin ce. luiiutii uu unions lu tnuciicu
i luting medium, then speculation become rife, 'and
1 4,the f'mv n re riohuri nt. Ilia ynpiisa of Llin tiimiv"
then Industry declines, and extravagance is wanton:
then, with a diminution of products, and conse
quently of exports, there Is an increase of imports,
tuiil higher tariffs are required on account of tho gene
ral expansion, to which they, in their turn, give new
minimus and aupport, while tho protection Intended
to be given by them to home industry la in a great
m i.irusiue nfiiiiriru uioi'ui Hi. it uy tut? ni pwiimon.
I Tills, notwithstanding our large revenues and the
prosperity of many branches of Industry, is substan
tially the condition of the United males, and the Im
pel tunt question arises, What are the remedies?
M ali entire deference to Congress, the Secretary
suggests that they are to be found:
First. In compelling the National Banks to redeem
their notes ot the Atlantic cities, or. what would be
belter, et a single city.
Second, Inn curtailment ol the eurrenoy to the
amount required by legitimate nnd heaUhtuI tradu.
Third. In a careful revision of the tun II, for the pur
pose ol harmonizing it with our Internal luxes re
moving the oppressive burdens now Imposed upon
certuin brunches of Industry, and relieving altogether
or greatly relieving, raw materials from tuxes. In or
der Hiui the product ot labor maybe enhanced and
production and exportation increased.
Fourth. In the Issue ot bonds, payable In not over
twenty years, and bearing interest ut the rule ot not
over live per cent., payable in Knglund or Germany,
to an amount sulliclent to absorb the six per ceut.
bonds now held In Europe, and to meet tho demand
there for actual and permanent Investment: and.
Fifth. In tho rehabilitation of Hie Southern States.
l ii-si. T he utility of compelling National Hanks 10
redeem their notes at commercial centres, as well ns
ut I heir own counters, is uoparont. The oblect ot Con
gress, 111 tho establishment of Hie National Banking
system, was to furnish the people with a solvent cur
rency ol uniform value throughout Hie Hulled States.
The solvency of the notes of the Million. il Hanks is
secured by u deposit of bonds with Hie Treasurer at
Washington; but. as the Hanks are .scattered through
out. Ihe country, and many of them uie in places dif
liciiltot access, a redemption of their notes ut their
respective counters Is not till that is required to make
them throughout tho United Slates a par circulation.
It is true that the notes of all National Banks ure re
el ivuble for all public dues, except duties upon im
ports, and must be paid by the Treasurer in cose tlio
flunks which issued are unable to redeem lliein, but it
will not be claimed Unit the notes of bunks, although
perfectly solvent, but situated in interior towns, ure
practically as valuable us the notes of banks in the
seaboard cities.
It may be urged that, to compel remote hanks thus
to redeem, would be n hardship: bill us very lew well
lmiuugcd blinking Institutions in the United Slates lull
lo keep accounts and balances iu some of the AUuullo
cities, this hardship would be lotind, upon trial, tu be
imaginary rather than real. Jiut It 11 should be a
hai.lshin, it would bo a nccessury one, and the in
terests of the hunks must bend to the interests of the
people. -Hesides, without such redemption, there will
lie practically none ut all, at least until specie pay
ments are resume.!; an. I when there ure no redemp
tions, there is always u constant tendency to lullution
and illegitimate banking. The frequent und regular
return of their uotes is needed 10 keep the Ibusi
11. ss of the banks In a healthy condition, una thus
in vai hibly proves no loss udvuulageous lo the stock
holders than to the public. Unless the bunks shall be
compelled to redeem In United States uotes, many of
them will neither lend their Influence in tuvor of a
return to specie payments, nor be prepared tor them
when, without then- agency, specie payments shall be
brought iibotiU If the delei nilnulioti ol the question
was left to tho Secretary, ull the banks would here
quired lo redeem in New York, Hie acknowledged
coiiuiierclal metropolis of the Union. The designutioii
of I bat citv us the redeeming point for ull National
Hunks would not only give absolute uniformity
tu their circulation, but would bo facilitate Hie
assorting und returning of notes thul practi
cal und general rctlumptiluu would be enforced.
It is certain that ibis will not be done uuder
the existing provisions of tho luw; 11 is nut
ceitain Hint It w ill be, unless all bunks shall be com
pelled to 11 ileum ut a single point. Tills 111I4I11 be
ol.iected lo bv the bunks in other Atlantic cities on
tin ground that it would aggrandize New York at
theii expeu.su. lint NowYoikis already Ibe liuuu-i-iiil
nud commercial emporium of Hie I nn. 11. Musi ot
the Interior bunks keep their chief buluuces in that
cite, because ihey ure more uvuilable and valuable
there than elsewhere, und In compelling ull the Hanks
to redeem at the metropolis of trude. Congress would
1.) only y il l. ling to tin unw ritten hnl l:ui. nulling law
to w Inch slutuues should conform. The course of trade
compels, und will compel, those National banks
whose business is based upoti the products of the
country (and these must always constitute a nia(orlty)
lokeep t heir chief balances in New York.whollier they
redeem there or not. 11 exchanges between that city
t. nil oilier cities should be 111 favor ol the inner,
the redemption by luir Hanks would be made
ut their own counters. und uu saciliice
but thai of local pride would be involved in
their i.tlnff required by law to redeem at ibe common
centre. When New York shall be a debtor city 10
iiostob aiii I'iln-iclplua, the notes of the Hoiton and
1'hlludelplilii Hanks will go home, and not to Sew
York for payment. What is required is an active
regular anil actual redemption of the notes 01 ull the
Nulioiiul Hanks. To eflecl this locul prido should bo
icrlllced and minor interests ahould lie Uirrogarded.
What is said upon this subject by tho Acting Comp
troller of the Currency is lully Indorsed.
'i he second remedy euggosted Is u curtailment of the
cm n-r.i y.
The views of the Secretary upon tho question of a
reduction of tho currency have beou bo frequently ex
pressed. Hint- Il Is only necessary now to consider
whether lliecurlfiilmeiu should bo of tbo United Stales
noies or of the notes of the Nalionul Hanks. Ou this
sibject his opinions have undergone no chauge
since ho coniiiiunioati d them in his reports us
1 omptrollcr ot the Currency, Hunks of issue, organ
ized under Stuto luws, buve been in exisicuce ever
since the fin-minion of the Government. Hy the de
cislut.s ol' the highest tribunals of the country their
constiluiioiiality Inn been ullinned, und (hey buve
become, bo interwoven with the business of the
country, and such largo Investments have been made
;u iheiii. that their destruction would Involve conso
qiienoiss ot a very berlous ehnraelor. Whether or not
l lie country would have been more prosperous with
out Hiemwh ether the Bliuiulua ihey huve giveii to
cnlern tlse and Ihe lucililie they have extended to
Irade have or have not been counterbalanced by
the iirttUclul prices w hich they have created, and
Hie nclual losses which the people have sustained by
Iheeiises thev have occasioned, and bv their ua;ieu
biuns und luiiures It Is loo hue lo conbldor. When
the Iultonul Currency aot was passed by Congress
Stuto Hunk were In full operation, und not less Ihuu
lour hundred millions ot dollars were Invested iu
Hn iu us capital. In some Stutes. by judicious legisla
tion und direful iiuiiiugemeut. they bad allordeil a
locul circulation satisfactory und sate. 1 11 other Sliilea,
where uu reliable security, or Inhiitboieiil security,
bad been required lor Hie protection of the public,
und their maiiagomeul had beu counded loincumpe
tout or dishonest bands, there bad he, 111 liuuioiuui
Holme-, und heavy losses bil l been sirtm.iie.,1 hy Hie
l,..i.liii ot Hieq- notes.
Soon after ttie ( o 1.. meiicenient. of t!ir tt'iielllon, It.
, ' I'l"".'.. .inn. n 1 c;iv v mil uinal
be created, lliein'ere.l und pun Ipnl ot
d.'i.t was t .1
.vhn.li could
emy oe paid t.y a ceneral svsleio ol
volvina ;i iiecc-s ty lor a cireulalim
interna! ta ne. In-
medium 1 urvl in
vi.mc iirou.r 1 14,11 1 t 11. e.inovv, ,.i,,i I-..., ii,
'no eminent to receive in the payment ol dues.
Ibis subject, ol course, demanded nnd received
the em nest nnd caieiul con .idcralioii ot the
1. isilnuuished gentleman at that time Hie financial
minister ol tno iilvi 1 on. cut, who c ined lo lie , r
pareil and submitted to Congtesi a bill "to provide a
national cunenev s cured by u t.led.:e off 11 lie. I Mules
bones, end lo provide for the cir( ulalion and redemp
tion thereof, " which, aller h;, inc been cat. lully coil
sioel ed bud IboroUMhly discussed. On, am.) u law on the
Huh ol February. Isi.i. Prior lo Hie pasige ol lius
net , issues by Ihe (iiivernment bad been ainlnriz-l,
Slid 11 large amount ot ( ovcrniiient notes bad been
put iiitociiculuiion. Hut there is nothing in Hi" acl
iiuilinrizing their issue, or in the 1 0111 munice.tlons of
the Sei ictury, or In the discussions In (nnu,r,ss to
lustily the opinion that lliey were intended to !,. n pr.
mnncnt circulation, (ni the contrary, the provisions
in the Inw tor their conversion into bond, and the ar
guments or the advocates or tb.-ir issue, afford ample
evidence that they were regarded as ineinly tempo
i-Hiy. and Justiliulile only by an emergency 'which it
was supposed nothing e so could bo adequately meet.
Had 11 1. ten proposed that these notes should lie a
permanent circulation and take the place or hunk
noies, there ts good reason tosnppose that the propo
Sdlnn would I, live bad lew, ir any advocate. Nor was
the National Hanking system prepared bv Its nutlior
nor adopted by Congress lo destroy the SI rue Hunks,
nor lu divert cnplinl Irom banking, but rather to com
pel nil bankiiiK Institutions issuing notes as money lo
scenic ihctn, beyond nuy concei vahlo com ingenev. by
deposit, with the Treasurer ol tbo United Slate.; tbui,
without the agency of a National Hung, providing a
nalionul currency which would save Ihe Government
and people from losses, ot which (here was constant
danger, from a local and unsecured circulation. T he
ISiitional 1. unking system was Intended, while not. In
vading the righls of Ibe States, nor damaging privuie
Interests', to furnish tup people with a peruiuiu nt pa
per circulation. '1 be United States notes w-pre InlendeJ
to meet a temporary emergency, and to be ictirod
w hen tho einei L-ency bad passed.
The present Secretary was not the advocate of the
National flunking system, and claims only Hie credit
ol having used his best ellorls, as Comptroller, lo put
it ituo successful operation, lint he bus no hesitation
in J ruiinuncing It a vast In. movement upon tho sys
tems which It superseded, nnd one udtnlrably adapted
to our peculiar form of Government. There are sub
staiillul objections to ull bunks of issno, and ir none
existed in Ibe I idled States. It might be very (pies
I loiinblu I fane Simula be introduced; but having taken
the plnoo ol the State Hunks, and lurnisbiiig, as tnev
do, o circulation ns Ires Irom objection as any that fs
likely lu be provided, iho Secretary Is ol the opinion
Hint the National Jtanks should be sustained, and
that Ihe paper circulation of the count ry should be re
dured, not by compelling them to retire their notes,
but by the w ithdrawal or Hie United States notes.
The Secretary is not unmindful ot ihe saving of In
terest which results lo the Government by the use ot
its own currency, nur of tho fuvur with which this
currency is regarded by the people; but all considera
tions of this nature are m ore than counterbalanced by
(be discredit which attaches to the Govern men l by fall
ing to pay its notes according to I heir tenor, by the bad
Influence of this voluntary discredit uixin the nublio
morals, and the wide departure which acontlnned issue
01 legal tender notes involves, from past usages, If not
from the teachings ol the Constitution Itself, The
Government cannot exercise powers not conferred
by Its organic luw or necessary for Its own preser
vntlon, nor dishonor lis own engagements when
able, to meet them, without either shocking or de
moralizing the sentiment of the people; and the fact
Hint the indefinite continuance ot the circulation
of an inconvertible, but still legal tender currency,
is so generally advocated, indicates bow far we
have w andered from old landmarks, both in finance
and ethics. The views of the Secretary on this point
were so lully expressed in his former report that It Is
not necessary to restate them. It is sulliclent to say
that his opinions are unchanged, and that reflection
and observation during the post year liavo assured
hliu of their correctness. Anxious us he Is lo lighten
the public burdens and reduce the public debt, ho does
not besiiale 10 uilvl.se thai these notes be wltlidruwii
from circulation, nud that the furnishing of what pa
per currency may be required be left to corporations,
under existing laws and such amendments otth.no
laws aa experience may dictate for the belter protec
tion nnd advancement ol the public Interest. How
rapidly ihey may be retired must depend upon the ef
fect which contraction may have upon business and
Industry, andean be better determined as the work
progresses. The reduotion could probably be Increased
Irom four millions per month, as contemplated by the
act of April 12lh, 8il6,lo six millions per mouth for
the present fiscal year, and to ten millions per month
thereafter, without preventing a steady conversion of
the Interest-bearing notes Into bonds, or injuriously
(illis-tlng legitimate business. No determinate scalo of
reduction would, however, In the present condition of
our affairs, be advisable. The pnliry of contracting
the circulation of Government notes should bedell
nltely and unchangeably established, and the proreni
should go on just as rapidly us possible, will, nut pro
ducing a financial crisis, or seriously embarrassing
those brunches or Industry and trade upon which our
revenues are dependent. There is a great adaptability
in the business ot the United states; and it will easily
accommodate Itself to any policy which the Govern
ment may adopt. That the policy indicated is the true
nnd sale one, the Secretary Is thoroughly convinced.
If il sliull not be speedily udiqited, and rigidly but Ju
diciously enforced, severe liuauciul troubles are iu
store ior us.
T he Secretary cordially approves what Is snlrt by the
Acting Comptroller ot the Currency, In his report, In
regard to the Importance of furnishing the people of
Ibe South with the bank note circulation which their
business may require, and agrees wiih him iu the opi
nion which be expresses of the beneficial results, po
litical, linanclal und social, to be effected by the or
giihizulion of National Hunks lu the Souliiorn Stales,
but be cannot recommend uu Increase of the bank
note circulation of the country beyond three hundred
millions of dollars, and hopes that the necessiiies of
those States may be supplied rather by n reduction of
the amount awarded to other States, thun by un In
ci ease (if the volume of currency.
The third remedy suggested is a revision of tho tariff
for the purpose of burmonizing It with internal taxes,
a reduction of taxes upon ruw material, &c. tkc
T he 66th section of the net entitled "un acl to reduce
internal taxation " Ac, approved July 13, lxr.il, pro
vides: 'Tbut Ihe Secretary of the Troasury is hereby
authorized to appoint au ollicer In his Department,
who shall be styled 'Special Commissioner of the Ke
VHiiue,' whose ofticu shall terminate in four yeurs from
the thirtieth day of ,1 une, eighteen hundred and sixty
six. It shall be the duty of the bpecial Commissioner
of the Revenue to Inquire Into ull the sources of na
tional revenue, and Ihu best method of collecting the
revenue; the relation of foreign trade to domestic ni
di, stiy; the mutual adjustment of the systems nt luxa
tion by customs and excise, with the view of insuring
the requisite reveuue wiih the least disturbance or in
convenience to the progress of Industry end the devel
opment ol the resources of thecouniry; and to Inquire
from lime to time, under the direction of thoSecre
tury ol the Treasury, Into the manner In which
olliceis charged with the administration and
collection of the revenues perioral their duties. And
Hie said Special CouiHiissloiior of the Heveuue shall,
from tune to time, report through the Secretary ol' the
Treasury lo Congress, either iu the form of a bill or
otherwise, such modification of the rr.tes of taxation,
or of the methods of collecting the revenues, and such
other facts pertaining lo Ihe trade, industry, com
merce, or luxation of the country, as he may lind, by
actual observullou of the operation of the luw, to be
conducive to ibe public. Interest."
Ou the 16lh of July lust, Mr. David' A. Wells
w as appointed Speclul commissioner of the Heveuue,
under the authority above recited, and be was Instruct
ed to proceed at once to perform the contemplated
w ork, giving his oilier attention to the tnrllf. with the
view ol ubcertiiiiiing what modifications are required
to adjust it to Ihe sstem ot Internal taxes, stimulate
Industry, nnd make labor more productive,
'J be iibllitv displuyed by Mr. Wells In the perform
ance ol his duties us one of the Commissioners for the
revision of the Iniernal Revenue luws. and tho hear
tiness with which he Is prosecuting his investigations,
give the beet assurance that he will perform the work
111 a muiiner credilublo lo himself, mid smisfuetory to
Congress and the people. T he Secretary addressed lo
him 011 thu Iflh duy of September, lsiki, a letter, from
w hich tlio lollowiug is extruded: " In view of the
fact lliut Iho revislou of the turllf is oertalu to engage
the attention of Congress at its next session, I con
sider It especially desirable that the T reasury Depart
ment should be prepared to furnish as much Informa
tion pertinent iu the subject as can bo obtained and
collected within the limited time available for the
iiucessury luvestlgutlons. You are, therelore, hereby
requested to glvo the subject of the revision of tho
turill especiul attention, and to report a bill, which, if
approved hy Congress, will be a substitute for all acts
Imposing customs duties, and which will render the
ndinini.sirntion ol tnls branch of the revenue system
more simple, economical and e fleet ive.
'in tiiw dlscbaige of una duty, you will consider the
necessity of proviillug for a large, certain and perinu
1, col revenue, rr colliding the fact Hint tbo existing
tin III has ..rovvd most elloclive In this direction. You
will therefore endeavor, first, to secure for the ties
voi omenta reveuue commcusurnto with Its necessi
ties; und secondly, lo propose such modifications of
the turiffluwa now In fun-o as will better adjust and
equalize Iho dullt s upon furetgn lui ports with the In
iernal taxes upon home productions. J f ibis last result
can be obtulned without detriment to the revenue, by
reducing taxation upon ruw materials and the ma
chinery of home productions, rulLor than hy Increas
ing the rules o4 Imports, It would, in my opinion, by
decieusliig the cost of production and Increasing the
purchasing power of wages, greatly promote Ihe iate
1 est s tf iho whole country.''
There is no subject which has in times past pro
voked so much discussion, nnd In regard ti which
opinions have differed so widely, as the turllf. It lius
bs-cn a standing mutter of sectional and political
stiile for nearly ball u century, and the sentiment of
Hie people lu regard to It Is still quite as much di
vided us when the discussion of It commenced. Al
wavs a complex and illlticult question. It is parlicn
hiily so at the present time. Prior to the Rebellion it
had 110 relation tu internal taxes, tor this lortu of
ledeial taxuiion wan then unkuowu to our people. It
bud l.tlle connection with Ihe currency, lor until the
-.ear although the bunks hud repeatedly sus
pended specie pay monts, specie was the only legally
iwiii hum a standard of vulue In the United Msies.
Now th question of the larllT la to be considered la f
connection Willi u permuuwiiv jsiuin 01 niteiiiui
luxes end a depreciated, but It is hoped a tem
porary legal lender currency. It is obvious that
u scale of duties upon imports which might
have been sulllcient, judicious and boneilclul when
there were no internal Federal luxes and business was
c. uduclvd upon a specie basis, may be Insulhcienl, In
judicious and inturloua now. A large revenue Is at
pnsei.t Indispensable for the payment of the ordl
nuiy expense ol Hie Government, (lie Interest upon
the nublio debt and for a gradual and regulur reduc
tion ol the principal. iToe liuite, altuough iu accord
witli the ptiuciples ol toe Coveruuiwiil and the In
Mini ts of the people, cannot be adopted as a polluy as
li 10. us the nublio tl"hl exists In unyUiluu like Its pre
sent inugnituJe. T he lung hoped lur period when
there snail be no le;:sl obsl ructions I
lu a in
roe exPlinnge
of rommeddirs between tbo Uuitel Kiv''"' n"d n'her
( (. nnii .in is still far In tl e utnre, iui,,'M "P"" "
oi is ni e nol only ncees.ai'i' for 1 e venue, Is"
ihe pieieeiinn 0) tho-e honie Iniprenis opt, ') hicli
bi av y 1 nt ei mil taxes are lo he assessed. '1 ,1, 'e-'tiuu
1 10 iv be 10 re Ihe country Is, 1 hert lore, one ol ad.ipu'1
tut her I hun principle. How shell the nccessury rk'VB'
nee be raised under system of Iniernal and exrrSx '
taxis without Hied al n nur monopolies, wilhoiH .re
pie . sing inittislry, will. nut (liscour.iging enterprWrt,
without oppressing labor ? In other words,
liovv shall the revenue be raised In a man
lier Ibe bust oppressive to the people, without
checking the prospei ity und growth of I he toinuryr
'Iho Secreiarv Is mil di -posed to discuss I lie imestion
In this 11 port, 'in is will, II is expected, be (lone
eliil.oraleiv nnd thoroughly In the report of th Com
missioner. e desires, bo veyer, to cult iiitenii'in- to a
l. iv Impcrtmit facts in regard lo some branches of
hi. slues In the United states, lee eoiisbhtrntbin of
which lin-.v lend to hi ve a pi . l ei il ireet ion 10 me pub
lic mind noon aqnestlnti so absorbing nn.l iuipnrtaifi
No single imeresl iu the Limed suites, losteresf.
tilth. .nub 11 insv be by leaislat ion, an long prosper Rt
ti e expense ol olhur (ireal Interest.. Nor can any Im
portant Interests be crushed by unwisoor unequal laws,
wit bout ether interests being thereby prejudiced.
For Illustration: tho ople ol tbn United Stales are
11 nt nrnlly n commercial and maritime peode loud of
adventure, bold, enterprising, persistent. Now, the
(lisam eeablo fact 111ust.be admitted that with un
eqnuled lacllitlcs for obtaining the materials, and Willi
acknowledged skill in shiu-hiiiiding with t liotisunds of
mile ol sea-coast, ludenind with the ilnest harbors In
the world with surplus pioducis tliat require in their
e.x portalion a larire and Increasing tonnage we can
Hell her prudishly build ships nor successfully com
pete with English ships In the transportation of our
own production. 'I wenty yeurs ago II was anliol
paled that ere this the t nliml state would be the
first maritime power In (lie world. Cinlrary tn our
nniiclpal ions, our foreign commerce has declined
nearly llfiy percent, wiibintbe last six years. 'Ibe
toiniaeeo! A inericaii vessel eiiu'sited iu 'the- foreign
carrying trade which entered Culled States ports
was
7m.
In Iswe S.(il,2s.
lu I. 2.i:l,Si,l
In tstii ,372,ii
The tonnage ofsueli vcwel which wore cleared Irom
the Lulled Slates wus
'bit.
In lH.'.O C.lli 1,924
In ISC- ;l ,(, I. n
In lsiifi 3,:ts;t,l7
'Ibe loimuge ol (ureign vessels Which entered our
poi W wus
r.iui.
In lsco a.-t-sw.wit
fn 1. f :i,ita,'ii7
In lsofi 4,41K,m
The tonnage of foreign v..-,li which were cleared.
Wus
7b n.
In lst'.O 2,6M,aoc
In ls.i,,.TO 3,t.,l2;l
In Isjiii 4,4W.1I
Il is true tbut u laigo proportion of this dun million
of shipping nnd shlp-bulldlug wus the effect ol the war.
'I he great destruction ol merchant vessels by Rebel
cruisers 1101 only induced sales 10 neutrals, but dis
coursed building. Alter Hie war. however, tho
fccurcity of American vessels ought 10 have produced,
und, but for a redundant currency und high tuxes,
would have produced activity in our ship yards, and a
rapid increase of tonnage; but this has not been tho
case. The prices of labor and mutonols are so high that
sbtp-bulldlng cannot be made profitable In tho United
Slates, and many of our shipyard are bulng practi
cally transferred to the Krllisli Provinces. Ills only
a few years since American shine were sought
niter, on account of their superiority and cheapness;
ana large numbers of vessels were built in Maluoanil
other stales ou foreign account, or sold to lorelgtier.
xv bile, at the same lime, our own mercantile marine
was being rupitlly increased. Now niunvof our ship
yards are abandoned, and iu others very little activity
prevails. It is true there boa recently been some In
tra ,se In our foreign ton'riuge, but a good part of this
Increase Is apparent only, and is the result of the new
rule ol admeasurement. It Is an luiportaut (ruth thai
vessels can bo built very much cheaper in the HrlttsU
l'rovinees than in Maine. Nay, lnrlbeq, that uintw-x
can be taken from Virginia to ihe proviuces. and from
these provinces (o England, ami there made iulo ships
which can be sold at a profit; while the same kind of
vessels can only be built In New England at a loss by
the most aklltiul and economical bunders. Jiut the
evil tioes not stop here: it the only loss wus that which,
the country sustains by the discontinuance ot ship
building, there would be loss cause ol complaint. It.
Is a well-established general fuel that the people woo
build ships navigate them, and that a iiuliou which ,
censes to build ships, ceases, of consequecce, to be a
commercial and maritime uutlon. Unless, therelore,
the causes which prevent the building ot ships in thej
United States Shalt cease, the torelgn carrying trade,
even of our own productions, must be yielded to other
nations. To this liumliiallon and loss the people ot
the United States ought not 10 be subjected, if 01 her.
branches of iudustry are to prosper, if agriculture is to
be profitable, and manufactures are to be extended, tbo
commerce or ibe country must be restored, sustained,
nnd Increased. The Uulted states will not be a first
class power among the nations, nor will her other in
dustrial luterestsi continue long to prosper as they
ought, II her commerce shall be permitted lo languish.
The Fame causes a redundant currency and high
taxes- timt prevent shlp-bulldlug, tend lo prevent tno
building of Iiouses and even of manufactories. Ms
high are prices of every description that men limHate.
to build dwellings as fast as Ihey are required, and
thus rents are so advanced as to be oppressive to
lessees, and the healthy growth of (owns and cities la
retarded. So ills in regard to manuiactories. Mills
which were built before the war can be run profitably,
but so expensive are labor and materials that new
mills cannot be erected and put Into opjration wilU
uny prospect of lair returns upon the investment,
unless 11 (.on the expectation that taxes will remain us
they are, and prices he sustained, 11 they are not ad
vanced. Tlio same cause are iujuriously allectlng
agriculture and other interests which It Is not neces
sury 10 particularize. Il la every where observed that
existing high prices are not only oppressing the
musses of Hie people, hut are seriously checking
the development, growth, and prosperity of
the country. It Is not denied that the fosse
which the country bus sustained of able-boil led
men by the war Is one cause of existing high prices,
but mainly they ure the result ot a redundant cur
rency and high taxes.
To raise the large revenuo which Is now required,
by systems ot Internal ami external duties, which,
working in harmony, shall neither repress Industry
nor check enterprise, and which shall be so devised as
to unike taxation bear most heavily upon those who
ure most benefitted by luxes and by the debt whloli
renders taxation necessary, requires great practical
knowledge and wise statesmanship. This subject,
always an Interesting one to the heavily !uileiud
nations of Europe, has become, as one of the results
of the war, deeply interesting to the people of the
Unitid stales. The Secretary does not, as befors
stated, intend to discuss it, but he ventures lo Suggest
thul the following general principles, some of which,
have been ucleU upon by Congress, and the. correct
ness of all ot which have been proved by other na
tions, may be safely adopted as a guide to the legisla
tion that Is now required:
1st. T hat the lowest number of arllnlea. consistent
Willi the amount of reveuue lo be raised, should be
subject to internal taxes, in order that the system may
be simple lu its execution, and as little olleusiv and
unl oving as possible lo the lax payers.
2d. Thul the duties upon Imported commodities
should correspond nud burmonlze with thetaxes upon
hi me productions; and thul these duties should not be
bo high as to be prohibitory, nor 10 build up home
monopolies, nor to prevent that free exchange or
coniuioditios which Is Ihe life of commerce. Nor, ou
Hie other hand, should (hey Ire so low as to seriously
impair the revenues, nor to subject the home uiauu
facuiiers, burdened with heavy lnterual taxes, to.
a competition with cheaper labor aud larger capital
which they muy be enabled to sustain.
Jul. Tiinl the raw materials used in I building and
niaiuiii.oiurliig, and which arelo be largely enhanced
in value by tho iabor which is to be expended upon
them, hhsuld be exempted from taxuiion, or that ihe.
luxis noon them should be low In comparison with
Hie (axis upon other articles. 1 his Is me policy of
other enlightened nations, and It is believed tlimtha
diminution of direct revenue which it would Involve,
il n.lopled by the United states, would be snore than
11 ade up by the augmented value which it would
give to labor, und by ibe lucretuu of productions and
ol exports w hich would be sure to result Irom it. It -should
be constantly borno In mind, thai luxes upon
ruw materials directly Increase the cost of production,
und thus tend either to reduce the product of labor or
to prevent exportatiuus to foreign markets.
4tli. Thul the burdens of taxes should lull chiefly upon
those whose luieresls are protected by tuxatiun, und -upon
those to v. hemp he publlo ilobi is a source of
iieulth and prollt, and lightly upon the laboring
classes, lo whom taxation und ibe dobt ate without
bo many compensatory advantages,
T he next of ihe series f proposed remedies It aa
issue 01 bonus, bearing interest ut the rale of not ex
ceeding five per cent, and payable la Europe, to tun
uuiount suthcieiit to absorb tuo six per cent, bonds la
foreign bunds, and supply tho European demand lor
1 lilted Mates securities lor permanent in venmeul.
No one regrets more than tho Secretary the fact that
so large au amount of our bonds is held abroad, or the
linforftinule condition of our trade that has trans
ferred Ihetn thither. The opinion that the country
has been bench lied by the exportation of Itssoc-urUles.
Is foundid upon the supposition tbut we have received -real
capital in exchange for ihem. T his supposition
is, to a laige exieut. unfounded. Our bonds have gone
bbioudlopay for goods , which, without ll.eui, might
not have beea purchased. Not only have weexported
I he surplus products of our mines and our fields, Willi no
sniiillaiin tint of our iiiuntifueturos. but a large umuuut
ot n-curlllesalso, to pay for the articles which we havi
putchssed fromotiiercoiiritr.es. That these purchases
have been stimulated and Increased by th faciltty el ,
laying for them lu bonds, cun hardly be doubled. Our
iliporlatious of goods bsve been increased by nearly
the amount of tho bonds which have been ex pot led.
Not oiiedollsr tn five or Ihe amount or ttie (ive twen
ties now held in England and upon toe continent, has
been returned to the Culled States lu the form of real
eantlal. Hut 11 (bis wore not a I rue statement of Hie
case, lb fact exists, as has been ul ready atated. tbut
some three hundred and 11 fly millions uKluveiiiiimtit
bonds not lo mention St, ns und rullruiid bonds and
other securities nre in the hands of the citi 'ens of
other countries, which may be returned ut any lima
for stile In Hie Umtt-d states, nud which,- being mi
held may seriously embarrass our effort to return to
specie payments." Alter giving the aubjeut csre
Jul consideration, the Secretory bus concluded 1
that it IS advisable that ho should be authorised
to issue bonds not having more lhau twenty
years lo tun, and bearing alow rule of interest, py.
libit. In England or Germany, to be used In tukinft
. p the six per cents now held abroad, and in
meeting any foreign demand lor investment that
may exist. The question now to be oonsutered is not
bow shall our bon is he prevented irom going libretti),
lor n iurs-e amount has already gonu, uuJ, others will
foil, w as long as our credit is guod and we coi.Unus tu
buy more than wo cun pay for In uny other w ay. but ,
bow shall they be preventod li out being thrown iijmu
the Inline innrkel, lo thwart our c-lturu, in est.i use
lb spool standard. The Sec-relary sees no pim-i -a'il
sSnX,""-"
nrt liiSft,i(liiailli irl, 1 1IS111W