•
Secretary of the Treagur) . o Report.
DErATZTXt.NT, WASIIP.R4TO7.4,
NOVCIIIner 14.
in rot:comity v, ith law, 111 , Secretary a the'lT'Teat.. ,
try has the honor to submit. to Cougrists.thiti regtt.:l
lay annual report. • vi 1
The finances of the United .States,
the continued depreciation of the, curtincy4 are hrst
intielit wore satisfactory condition then thOy
when the Secretary had
the honor. to Intake to ett . W.• . '
Kress his last anneal report : Stneethe firati"day'Of
November. 2493990.CiA34 of intereatbearing
notes, certhicates aiddebtedeesa and of temporary
joime, have been por converted into .bonds; and
the public debt, deducting therefrom thecash in the
Treasury ,
which is to be applied to, Its payment,,
hall been reditetal $59,803,Fame 353.7r Tinting — the
period ~decided improvement has . also
beta . Mitneseed in the general • econordle,al
condition of the country. ' 'rile policy' ti on
rroctiog the currency, slthouelt not enforced to the
extent authorized by law. has preVented an e7nsion •
of credits, to which a redundant and eslieciall de
preciated currency is always an Incentive, and las hail
Po little influenei in stimulating labor and increasing
ddetion. Industry has been steadily ref uining
to
the healthy channels from which • it was diverted
timing the war, and although 'incomes 'have been
and trade generally ,inactive, in no other
co mmercial country has there been less financial ern- •
barrasement than in the l'itited States.
In order that the action of the Secretary, in the '
financial administrivion of the Department, may be
properly understood, a brief reference.to 'the condi
tion of the Vasury at the time the war was drawing,
to a closd, and at sonic 'subsequent periods, seems to
be necessary.
On theillst of March. ISOS, the total debt, of the
United States was $2,360,955,077.34, of the following
descriptions, to wit:
Funded debt $1,100,i3d1,241.80
'M , . 949,420.09
'Natured debt
Temporary loan certificates •
5
Certificates of indebtedness 1712:1,5:0r00. 29
0
Cert 0
Interestlicaring notes , G26,81%00.00
Susperided or untraid 114,24548,93
tufted States notes, (legal tenders)... 433.100,509.00
Fractional currency 24,234,091.07
Cob in the Treasury
The resources of the Treasury consisted of money in
the public depositories in different parts of ' the coon
try,amounting Re above stated to $56,481,924,84; the rev=
elates front internal taxes and customs - duties, and the
antboritty to issue bonds, notes and certificates, under
the following acts toAhe following amtonte:
Act of Felpary 23, 1865, boucle $4,053,600.00
Act of March 3, 1864, bonds 2 7 , 5 4 900 ,0 0
Act, of Jane 80, 1864,bonde, seven-thirty
or compound interest notes
Certificates for temporary loans, act
June 30, 186 4 • . 97,546,471.71
tailed States notes for payment of tent- .
porary loans. act July 11, 1862.... .... 16.880,431.00
Fractional currency, act June 30, 1861.. 234745,905.93
Act of March 3, nitro, bonds or interest ' , •
bearing no,tes 553,587,200.00
Malting a total of.,
Certificates of indebtedness, payable one year from
date.eir earlier at the-option of the government, bear
ing interest nt the rate or sLe per cent, per,annum,
might be issued to an indefinite amount, bu only to
public creditors desirous of receiving them in satisfac
tion of audited and settled demands against the United
States.
Early in April. the fall of Richmend and the sur
render of the forces which. had so long defended it,
rendered it certain that the war was soon to, be ter
minated, and theproviaion must be made for the pay
ment of the army at the earliest practicable moment.
The exigency was great, and the prospect of raising
the money required to meet the present and prospec
tive domande upon the Treasury, under the laws then
existing, was sufficiently discouraging to create solic
itude and anxiety in the ivied of a Secretary little ex
perienced in public affairs, upon whom the responsi
bility of maintaining the credit of the nation had been
unexpectedly devolved. There was no time to try ex
periments or to correct errors, if any had been com
muned, in the kind of securities which -had been put
upon the market. Creditors were importunate; the
unpaid requisitions in the Department were largely in
excess of the cash in the Treasnry,the vouchers issued
to contractors for the necessary supplies of the army
and navy were being sold at from tee to twenty per
cent. dieopent—indicating, by their depreciation how
uncertain was the prospect of early payment—while
nearly a million of men were soon to be discharged
from service, who could not be mustered out entil the
means to pay the large balances due them were pree
videil. There was no alternative but to raise money
by popular subscription to ,government securities of a
character the most acceptable to the people, who had
subscribed so liberally to previous loans.
As a considerable amount of the seven-thirty .notes
had recently been disposed of satisfactorily by the De
partment, and bad proved to be the most popular se
curity ever offered to the people, the Secretary determ
ined to rely upon them, (although• on the part of
government, they were in many respects Objection
able,) and, in order to-insure speedy subscriptions to
place them within the reach of all who might be will-
Illg to invest in them. In every city and town. and
village of the loyal, and at some points in the disloyal
States, subscript ious were solicited. The Frees; with
its immense power; and without distinction otparty;
seconded the efforts of the enetgetic and skillf al agent
who had charge of the loan. Tha stational banks gave
efficient aid by liberal subscriptions: white ihotirtm.Ly
of persons in humble life and with limited means,
hesitated not to commit their entrtence to the honor'
and good faith warts,e governinent. Before the tied of
.I,lly the tenre exceeding five huudred millions,
was ennscrteed and paid for, mid the Seeref4ry was
enabled with the proceeds, together with the receipts
front customs and internal revenues, and the use to a
limited extent, of , some of the other means at his dis
posal. to pay every requisition -upon the-Treasuryouel
every matured nal - Ideal- obligation. As evidence - of
the neeee , ity.thet existed for prompt action in the ne
gotiatieti of this loan, and the straits to which the
Treasury was reduced, it will be remembered by
those who examined- carefully the monthly State- -
items of the Department, that although during the
month of April, upwards of one hundred millions of
dollars had been received from the sales of 7.30 notes,
the unpaid requisitions, at its close, had..increased to
$120,470.1N)0, while the cash (coin and currency) in all
the public depositories amounted only to SIO.S 35.80 e.
If few men, entrusted with the management of the
finances of a great e nation, were ever in a position so
embarrassing and trying as was that of the Secre
tary of the thited States Treasury in the months of
April and May. There none certainly were ever so hap
pily and promptly relieved. The Secretary refers to
this period of his administration of the Department
with pleasure, because the success of this loan was to
him not only a surprise and a relief, but because it in
dicated the resources of the country, and gave him the
beetled courage for the performance of the great work
that was before hipa.
Between the first days of April and September, 18&i,
the Secretary used his authority to issue securities as
follows!:
Bonds under the act of February 25,
1862 1 . M 3.600. 03
Bends under the act of June 30, PM... 0,000,000.00
Compound interest notes, act June 30,
1864
Certificates for temporary lotin9, ago June
30, 1864
Fractional cunenev, act June 30 e ase.i
Scree-thirty notes, March 3,
On the 31st of August, 1865, the public debt reached
the highest point, and-was made up of the fullowin;
items, to nit:
Funded debt.
Matured debt
Temporary loans
Certile-ates of Incli-htedness
Five per cent legal-tender. notes.:.... 3:3,034,230.0+1
Compound interest legal-tender notes. R 17,024,160.00
7-30 notes 830 000 000.00
U. 8 4:13,10V,a
. notes, (legal tenders). , 1..
89,00
Fractional currency ' '28,844,742.51
Suspended regulations uncalled for.. 2,111,000.00
Total
Deduct cath in Trow:ury
Of these obligations, it will I,e noticed, 5W31,138,059
were a legal tender, to vtit
United States notes
Five , per cent. notes
Compound interest notes
. -
A very large portion of which were in circulation as
currency.
The temporary loans were payable in thirty days
from the time of deposit, after a nutice teu days.
The Svc percent. notes were payable in lawful
money, in one and two years from December 1, lair;
The compound interest notes were payable hi three
years from their respective dateeAll becoming due be
sweee the tenth day of June, 1807, and theisisteeatit
day of October, /8 6 8.
The seven-thirty notes were payable, in about equal
prcportioaF, in August, 1807, and Jane and July.
in lawful money, or convertible at maturity, at the
pleasure of the holder, into fiyeytwenty bonds.
The, cenificates of indebtedness would mature at
various times between the thirty-first day 'of 'August,
and, the 'second day of May, 1867. .
During the month of September, 180, the army, hay-,
Dig beet reduced nearly to a peace footing, ft beuunle
apparent that the ' internal revenues and the receipts
for customs would be stithelent to pay all the expenses
of the government and the interest on 040 - 011 e debt,
so that thenceforward the efforts of the decretary were
to be tarried from borrowing to fundin Besides the
United' States notes In circulation, there were.
nearly 41,t)(g), 000,000 of debts in the.
form . at interest-bearing notes. tempo
rary leans, and certlllea.tes of indelitednees, a portion
et „web were maturi n g dally, and all of whiCh. with
tile exception et the temporsa loans, (which, being
to the nature of hens on call, might or might not be
continued, ate.ording to the wino( the holders,) must
eneverted into beads or igtid in money betore the
16th et October, ltigl rho country had passed
through* war-unexampled in . its expernivenete and
sacrifice of liveic it was afflicted with a redundant'
and deureeiated currency; prices of property and the
'test 0 huleghl a4valleed correspondingly with the
Mamie of the eareolgitig meniuro; estiMaiithg
their Means by a fa* atiatt4ted,et value, naG , beghhlgt
gockieirs and extra t'; tPelr talonethreis and
belief butireas, ''in Ole absence of.if stable
,
haste, 'was nneteady , e • and
~, Speculative. and.
great financial trots Ih., flick usual result ofir
expepnive win's. seems ' •:.iie i T tinevitek. It „„
tindeliefech circumetan *. the Übe work of Lamb ' .•.%
thins/44 dly-maturing o nate a . " of thelgovectimen s
ineotiest finialitthe rape ' •etan ' d wase,o,ll.o.',feoin
blended' Virbileethe la ' obis Could nbt ho brought
! ic.,
ahoultil the"fornier bee ''.fteconioltstiedi,ff Wile'
highlef iportant that t '43 nece ' sty of ahrearretulti,
to speedo payments elio id never lost:Sigh 'Of. Qty
tips dint° time, it Heemed to, the Seerediry t are ,1
turrtiethe time • menintrerof lalfte. ; lenveyer Alealirible;.!:
of
net Of.eutielent-Inipiartandeto Jim* the admition
of such measures as might, prevent funding, and in
juriously affect those branches of industry from which
revenue was to be derived, much less such measures
as might, by exciting alarm, precipitate the disaster
which ad many anticipated and feared._ Thus theme:
dition of the country and the TreatnitYdeterinined the
policy of the Secretary, which has been to convert the
interest -bearing notes, temporary loans, &c.. into geld•
bearing bonds, and to contract the paper circulation by
the redound ion of United States notes:- For thelnet two
years this nolicy•line been steadily, but carefully pur
eued, and the result upon the whole has been satlsfac
toiy to the Secretary, and, as he believes, to a large
majority , of the people. Since the first day of Septenf-.
liar, 1861, the temporary ... l6RM, the 'certificates of in
debtedness, and the five per cent. notes • haVe all been
paid (with the exception of, small amounts of each not
presented fop payment); . the compound • interest notee
have been reduced from . :8211,024,160 to 871,875,040,
($11,560,000 having been taken up with three per cent.
:*certificatee;) the • seven mind three-tenth notes front
8,8n0,000,060 to 8887,1118,800; the United States notes,
including fractional currency, fr0m.5459,505,811.01 to
`5887,871,477.80—whi1e the cash 'in the 'Treasury . has
been increased from $88,218,056.18 to 8183,998,808.02.
and the funded debt has been increased to $686,584,800.
,While this has been accompliehed there hati been no
commercial crisis, anti (outside of the Southern States,
which are still greatly suffering from the effect:3 of the
war and the unsettled state of their induStrial interests,.
and politicanffairs) no, considerable finnucial .embar
•rassment- ,I. '-.: . , . ~ - . . • .: • .. • . .
In , his hot- report, the Secretary . remarked that
"After a careful, survey:of the whole field, he was of the.
opinionthat 'Specie payments might be resumed and ,
ought to bereaumed, as, early!. as the ,first day of July,
1868; 'while he indulged the hope that such weitid be
the character of future legislation and such the condi- •
lion ofourprodlictive industry that this most:desirable'
event might be brought about at a still earlier day!'
These anticipations of the Secretary: may not be fully
realized. The grain crops of 4866 were. barely saffi
'ffieut • 'for, borne co unnition.., The, expenses
of • ' the War Den rttnent "by reason .of
.Indian hostilities/-and• the ~ establishment of
military ; governments ' in .:the 'Sof:Ahern , States,
• have greattreareeded . the estimates. The geVera
meut has bece:lefranded of a large.part of the revenue. •
upon distilled Manors, and tb condition of the South.
has been disturbed and unsatisfactory. Theft) facia,
and the apprehension created in Europe, and to some
extent'ut home, by the utterances of some of our nab.
tic men Upon the subjects of finance "and taxation,
thatthe - public faith might not be maintained, may
postpone the time when specie•payments shall be re
sumed. But, eptwithatanding these unexpected em
barrassments, much preliminary work Me been done,
and there is not; in the opinion, of. the Secretary, any
insuperable difficuffy in, the way of an early and a per
manent restoration of the scie 'standard. It may
not be safe to fix the exact -time, but, with favorable •
crops next year and with no legielatiou unfavorable
to contraction at this session, it ought
not to be delayed beyond the let of January, or at the
farthest the Ist of July, 1869. Nothing will be gained,
however lay a forced resumption. Wen the country .
is in a condition to' maintain specie payments, they
will be metered atra necessary consequence. To
such condition of national prosperity as will insure
a permanent restoration of the specie standard tho
following measures are, in the opinion of the Seem
tarry,. important, if not indispensable:, ..- -
Fleet. The funding or payment of, the balance of
interest-beating notes, and a continued contraction
of the paper currency.
Second. The maintenance' of the public faith in
regard -to the funded debt.
Third. The restoration of the Southern States to
their proper relations to the Federal government.
If this opinion ho correct, the question 'of per-
manent specie payments, involving as .it - does. the
prosperity of the country, underlies the ,great ques
tions of currency, taxation, and reconstruction, which
are now engaging the attention of the people, and 1
cannot. frill to receive the earnest and deliberate atten
tion of. Congress. In. view of the paramonnt • import
ance of this great question the• Secretary deems It. to
be his duty briefly to discuss the measures regarded by
him to be,necessary for an early and wise dtepoffition
of it, even at the risk- of erepetitlim of ' , what he has
said in previous communications to Congress,
• The measures regarded by him as important, if not
Indispensable for national prosperity, and as a conse
quence for a perimment resumption are—
First. The funding or payment of the balance of '
interest-bearing notes, and a continued contraction of -
the paper currency. - ..
By ; the act of March 2, 1867; the Seffittary r au
thorized and directed to issue three per cent' i . n cer
tificates to the 'amotint of fifty millions of dollars. for
the purpose of redeeming and - retiring compound in
terest nottse . and such certificates, on the Ist instant,
had been issued to the amount of 811.560.0:1; in re
demptional the note! imeoming due in October . and
December. The notes still outstandingwiff be either
taken up with certificates or paid at maturity. The
seven and"three-tentli notee, bele,,g payable .in lawful
money or convertible at the option of the . holderg into,
•
five-twenty bonds 'will be paid or converted according
'to the terms of the contract. Fortunately all the inter
est-beariug,notes are to be paid or . converted within
eleven mouths; arid they need not therefore be regard
ed as a serious impedimeneto a return to the true stand
ard of value. As to the redemption otthese notes, and.
tbe manner in which they' should be redeemed, there
-,
m 5t..1..... TaG.t.•
C 211.1. elf course be musb_dtlerPr 3 e'' r''' . •
- in recant to is- contract - mu 3.: In currency, anti upon
which of the two kinds of currency—United States
notes or. the notes of the national.. banks—contraction -
should be brought to bear, that a
,ilifference of seal- -
ment seems to exist.
In his report to Congress; under date of the 4th of
__Des:ember, 1e65, the Secretary presented, as fully and •
clearly ashe was able to do, iris VICWB "neon the sub
ject of the currency, and • the necessity of action for
the pu pose of bringing about a return to specie pay
men... The views thus presented by him were • ap
ci
pr by the Renee of •Repreeentatives on the Bth of
December, ISt;:,, by the adoption,of the following reso
lution, by the decisive vote of 144 to 6:
.7t , xolced. That this House cordially concurs in the
views of the Secretary of the Treasury in relation to
the necessity of a contraction of the currency, with a
view to as care , a resumption of specie payments as
the business interests of the country willt permit: and
we hereby pledge co-operative action- to this end as
peedily as practicable.
Among the views thus emphatically endorsed were
the following:
•••• "The right of Congress, at all times, to borrow
Money and to issue obligations for loans in such form
as may be convenient is unquestionable; but their au
thority to issue obligations for a circulating medium
as money, and to make these obligations it legal ten
der, can only be found . in the unwritten law which
sanctions whatever the representatirees of the people,
whose duty it is to maintain the government against
its enemies, may consider in a great emergency neces
sary to be done. The _present legal-tender acts were
war measuriif, and, while the repeal of those provis
ions which made the United States notes lawful money
is not now recommended, the Secretary. ta of the opin
ion that they ought not to remain in force one daylonger :
than shall be necessary to enable the people to prepare
for a retort' to the constitutional currency.
• "The reasons which are sometimes urged
in favor of - United States notes as a per-.
manent currency are; the , saving of inter
est and their perfect safety and uniform value.
"The objections to such a policyare, that the paper
circulation of the country should be flexible, increas
ing and decreasing according 'to the requirements of
legitimate business, while if furnished by the govern
nient, it would be quite nicely to be governed by the
nuccesities of the Tteaeury de the interests
rather than the deniands'of cemmerce and trade. lie
sides,
a permanent government currency, would' he
greatly in the way of public economy, and would give
to the party in possession of the government a power ,
which It might be under strong temptation to use for'' .
other pui•poses than the public good—keeping the .
question of the currency constantlyaefore the, people
as a political (lunation, than which few things would
be inure injurious to business: •
. - —While, therefore, the Secretary Is of the opinion
that the inunei4atc .repeal of. The legal-tender mei.
eio»sof the acts referred to would be, unwise, as being '
likely to effect, injuriously the legitlialate;bieffnese of
the cenntry, upon the prosperity of which depend the
welfare of the people and the revenues ,which, tire, ne
cessary for the intuntenaliceof the national credit. einj ,
unjust to theholdere of the notes, he is of the opinion
that not Only those provisions, but the acts alee,slioald
be regarded as only temporary, and that the work of
retiring the notes which have been issued under them
should be panimenced without • delay, and. carefully •
and persistently continued until all are retired. .
" The rapidity with which the government notes can
be withdrawn - will depend upon the ability ofthe Sec
retary to . dispose •of , securities. The inflegrices of
funding upon themoney market will sufficiently pre
vent their too rapid withdrawal. The Secretary, how
ever, believes that a decided movement towardstecom:
traction of the currency is not only a public necessity,
but that it will speedily, dissipate the anomi:Melon.
which very generally exists that the effect of such i
policy must nereasarilyte to• make motley scarce, and ,
to diminish the prOsperity• •of - the countr3r. it left, '
well-established fact, which has not escaped the atten
tion of all intelligent observers, that the demand toe..
money increases (by reason .of an: - advent° of prices)
witb the supply, find thatthis ; demand is not unfree : I
qttestlp most pressing when the volume of currency is a
the largest and inflation has reached the culminating
Point. Money being,_an unprolitalffe article to hold,
very little is withheld from active ttee; and in proem
, tion to he increase prices advance; on the other hand,
a reduction of It reduces price., and as prices are re-:
duced the demand for it falls oft; so that, paradoxical
a diminution of the currency mayin.
?•11418cri'ttNii:ocrarYner'ecdthit'heeractilbeViLy apprehension that. a' retitle
tion of the currency—unleas it boa violent ..one--Will ,
w inj ui er e l e on o n l y n a t it io e n e a t i z a l
It r i pr i t n y i . a. '
s L try abo h r oi ta a „ ri th a e b ' iy gr d e e a,..t
clines on an inflated curTen ,i . a .• ...
. : ..
After discueeing flee eubjeet at con icl •11 I . I •
sustainipg his views by a ?dere , B AM i 8 (Int I,
/CC to the experience of
the country ' finder pevione inflation's of the curl' C. rucy, :
the Secretary' Concludes his remarks as follows: .
'Every consideration, therefore, confirmsthecorrect
riel43 of the viewe he has _Presented. If the,hueiness)
of, the . country,; , Ivaco upon a sable pmts,
or it ereditli could be kept from bein g , st ill
further increased, there would be f„,,,,
..,
_.
sloe for solicitudeon this I &Meet. .But such IS not
the Let.' Beeineriala not in ehealthY condition; it Is
t ef a l l n t u io lf ia le ile f f e e r rr e ed zieb. )Ers •Alli ase nerta cttio in; 4l ' Seery daytphroeeveeanate!„.
1 4A lftlaso4o.o4ll)o o .: . ok*w ,Pd Otsine Vl4l not
..
2,42.3,437,002.111
56,481,924.84
2 366 UM 077.24
79,811,000.00
78-1,788,508.04
24,975,300.00
54.690,281.87
2,090.'118.44
:49.157,200.00
MIIMEM
51,109,568,191.4
1,503,020.00
107,148,718.10
83,094,00.1.0
2, f 345. 007,626.56
88,218,055.13
2,757,(it39,571.43
$43:3,160,569.00
31,951,Z11,00
217,u24, 11;0. 00
$681,1:39,959.00
_ ,
THE DAILY EVENING BULLETIN PIIILADELPHIA; WEDNESDAY DECEMBER 4, 1867.
411111111111
.
~..remaineallig.sjoro. The tide <i ill either recede or ad
''',,v'ilfe* OdAtt - WW. not recede without the exercise of
''t et:Mite ng - Power of Congress.'
_ jThese*Wrivere not only approved by the House of
Htienge.scaltitives,but they seenieflakthetime to be heart.'
~ ily tearibtfleitto by the people. By . ,tbecet of April
r ie,'
1066,4116fteretary was authorized.A9 receive Treasury
.nete,asendbther obligations of thegOvertimentoithetileil
berititginterest or not, in exchange feichonds, with al
- trivitleiAbtat, of United States :#otes,!'rat more than
ten.. -',millions of dollars* :should*, be can
,. Celled strithin six months litiatie., , Sthe passage
of the net, and thereafter gust minute 'than tour
millions of dollare in any one iribptho - ',This proviso,
while ir fixed a limit to the amcittnr.tf notes which
should be retired per month, so far frean indenting an
abandonment of the policy of contraction, confirmed
and establielied it- To this policy (although for rea
sons that seemed to him to be judicious, the regular
monthly reduction hasten always been made) tile ac
tion of the Secretary has been conformed, and the ef
fect has been so salutary, and the continuation of it
would be ettobvionsly wise;: that he would not consider
it necepeary.to say one word in its favor were there not
indications that, undeethe'teachiiigs,orthe advocates
of a large End consequently a depredated currency,
such views are being inculcated as, if not, corrected,
may lead to its abandonment
_.
: ..Idoney is simply a medium of exchange and measure
of value. As a medium it facilitates exchanges, and
by doing, this necessarily stimulates production. It
does not follow, however, that exchanges are Will
toted and production stimulated in proportion to its
increase. It is a measure of value, but it does nut
necessarily create values.' It is an indispensable agent
in trade between. individuals, and in cornmette - be
tween nations: the great incentive to enterprise and
labor in the wide range of human energy , and skill;
'but, great as is its power, and essential_ as it is to the
progress of the race in civilization' ad refinement,
there are limits beyond which its volume cannot; be ex
tended without a diminution of its usefabiesS. A cer
tain amount is required for facilitating exchanges and
determining values. The exact amount required can
not of course be accurately determined, but the excess
or deficiency of money in a country is always pretty
accurately indicated by the condition of Its industry
and trade. In all countries there Injtuit as much money
needed as will eucou , age enterpriae,„.give -employ
ment to labor; and ternirth the meads: for a
ready exchange of property, and ' rib more.
Whenever the amount itt circulation exceeds the
Amount required for these purposes, tho fact will
become apparent by a decline of . industry, an advance
of pricea. and a tendency to speculation.. Especially
will this be thecaac when an irredeemable currency be
comes the standard of value by being made a. legal
tender. Coin, being the circulating medium of the
world; flows from one country to another In obedi
ence to the law of trade, which prevents it from be
coming any where, for any .considerable period, ex
cessive in amount: when this law is not interfered with
by legislation, the evils of an excessive currency are
corrected by the law itself. An increase of money be
yond what is needed for the purpasies* Onto named,
according to all experience, not only inflates prices,
but diminishes Ober; and coin, as a 'consequence,
flows from the Omar, in which the excess exists, to
some other where labor is more active and prices
are lower; to .flow back again when ' the loss
by one_ country and :the (gain by . another
produce the natural results upon industry and produc
tion. Thus, coin is not only the .regulator of coin
, melte, but the great Stimulator of industry and enter
prise. The same may be said of a convertible paper
currency, which by being convertible will not for any
considerable period be excessive; but it is rarely if
ever true of an inconvertible currency; which is no:es
. molly local, and would not he likely to bo,inconverti
ble if it were not excessive, and by being excessive
and inconvertible. is fluctuating and uncertain in
value. The only possible exception to this rule would
be found In the limitation of the amount in circula
tion to what might be absolutely required in the pay
ment and disbursement of the public revenues, 'No
mattes what lava he enacted to give credit and value
to it, an irredeemable currency must, unless limited as
above stated, always he a depreciated currency.
- The
attempt to give value to paper promises by maing
them lawful money is not original with the
United States. The experiment has been tried
by other nations, and generally with the
same injurious, if not disastrous, results. in
deed, with rare exceptions, nations that have com
menced the direct issue of paper money, have con
tinued to issue it until prevented by its utter worth
lessness. There may be no danger that this will be
true of the United States; but there will always be
ground for apprehension as long as an irredeemable
and depreciated currency Is not regarded as an evil—
an evil to be tolerated unit so long as may be necessary
to retire it without great derangement of legitimate
business. InConvertible and depreciated lawful motley
is an agreeable but demoralizing deception. It is
agreeable because it is plentiful, and because it deludes
by the creation of %mama wealth. It is demoralilipg.
by familiarizing the public mind with dishonored ob
ligations. The prices of most kinds of property in
the . United States advanced near three-fold
during the war, but this • . advance was
mainly the result, of the increase of the circulating
medium. and in reality only indicated its deprecia
tion. The purchasing power of the money 111 circu
lation • was diminished in the' ratio that its volume
was increased.' The farmer, for example, received
threedollars a bushel 'for his wheat, but, except for
the payment of debts, those three dollars ,were of no
more value to him than one dollar was before the sus
pension of specie: payments. The same wag true of
. other kinds of .property and of labor. The advance.
except so faze it was the result of an increased - de
mand, -was apparent only and unreal. The same
cause is sustain rig prices at the present time, and will
continue to do so as long as the cause exists, but the
advantages resulting' from it are merely imaginary.
while the evils are positive and actual. No -sane
man suppeses that iris own wealth, or the wealth-of the
, nation, is inrreased, .x.
by re the depreciation of the standard
ey , writ= it is mea ua. .. el, A n , oue etricin A ti ou of
the United States Should be doubled during, thy next,'
year. and the prices or' property` should be likewise
doubled, would it , be . imagincli that the real valve of
property would tints be advanced:- Or, if alb 'paper
currency should during the same period, be reduced
fifty per cent., and prices of property should decline
correspondingly, would it. follow that the real value of
- -property Would-thus-decline ': In the one -case the
value of the currency would be increased in value as it
was diminished in amount. The increase or decrease
of prices would. if no counteracting causes interveoed,
be the natural result of the increase or decrease of the
measure of valife, while real values remained un
changed.
The United States notes were made a lc ml tend..r
and lawful niouey because it was thought that this
character wai'necessary to secure their currency. By
reference to the first debates of Congresa upon
the subject. it will be noticed that those
who advocated their issue justified them
selves on the ground of necessity. No one who spoke
in favor of the measure, favored it upon principle, or
hesitated to express his apprehensions that evil con
sequences might result from it. But the government
was In peril, the emergency was pressing, necessity
seemed to **action a departure from sound principles
of finance, it not from the letter of the Constitution,
and an inconvertible currency became the lawful money
of the country. While the action of Congress, in au-
thorizing the issue of these notes, scented necessary at
the time, and was undoubtedly approved by a large
majority of the people, there can now, hi the light of
experience, be no question that the apprehensions of
those who advocated the Measure
,as a fleece•
tiny were well Minutest Had they not been
rustle a legal tender, the amount in Circula -
ti st would not hate been excessive, and the
national debt would doubt!ess have been hundreds of
millions of dollars leas than it is. The issue : Would
have been stayed before a very large amount had been
put in circulation. not because the notes would have
been really more depreciated, by not being tirade law
ful money. but because their depreciatiou would have
been manifest. By being made lawful money they
became the legalized measure of value—a substitute
for the precious metals—Which, as a consequence,
were at once demonetized and converted into articles
of traffic. Made by statute a legal tender, they were
of course popular with those who had debts to pay or
property to sell: costing nothing, and yet seemingly
adding to the value of property supplying thu means,
fur spiculation and for creating au artificial and a
delusive prosperity, it is an , evidence of the
Wisdom of Congress that the issue was stop
ped before the notes bad become ruinously
depreciated, and the business of the country involved
In inextricable difficulties. But, although the issue
of these notes was limited, and we thus escaped the
' disasters which would have overwhelmed the country
without such limitation, it can hardly be doubted that
the resort to them was a Misfortune. If this means .
of raising inone bad not been adopted, bonds would
have undoubtedly been sold at a heavy discount, but
the fact that they were thus *told, without debasing the
Currency, would have induced greater economy in the
use of the proceeds. while the discount on dm bonds
would scarcely have exceeded the actual depreciation
'of the note s below the coin standard. As long as
motes could be issued, and bomis could be Bola, at A
premium or at par, for what the Altana made money,
there was a constant temptation to liberal. it not un
necessary expenditures. ' Had ,the specie standard '
been maintained, - and bonds been sold at a discount
for , real.,- money, ~ t here would have been
an ecoiierny in , all the branches of the pub
lic service, which tinfortunately, was not wit
, nested, and the country won't have escaped the evils
restittiug from A disregard or the great international.
law, which no mitten can violate l Eith impunity, the
one that makes gold and diver t only true measure
of value:. The financial evils and which the country
has bevel. suffering for softie years past; to say nothing
Of the dangers which lopm up in the future, are, in a
`great degree, ,to be ' traced. to the direct issues by the
government of an inconvertible. currency with the le
gal attributes, of money ,
Uponthe demoralizing itifluences of au Inconvertible
government currency it :is Mit necessary to enlArge.
They are forced.upon our atteirtiort by:every days ohs
servatio,u, and we cruinot be blind to them if we would.
The government is vArtnally repudiating its own obit
, gat i ens byfailing to redeem' its n rites aciaird ing to their
tenor. These notes are payable, to bearer on demand.
In dollars, anetiot one of them is beteg so paid. It Is not
tobe tnipietkd' that a people will' be more basest than
frills °Y
r t n o
' the government:tinder 'whinh they live and whilcitha,
rln kfi t of 'the Thaited Staten leftism to pay Bel
notes aceordingloaheir tenor,' or at least as long as it
,proper: 'ettort. to :de -so, it practically
teaches to. the people the doetrine,of repudiation.
Tile general 440941 legblation nutitlie admintstra- ,
tion of the fluancea dart* fbe war I:eilent the highest
credit ap e ntjoAkresa'aritittie dlittingnistied geatie men
'then at.tbebeaoleft tbe-Tennenty 'Department They
'-have coinnuinded ithe.: admiration - of intelligent Mid
InpartlanooittihniinessdabToad:, In speaking MSS
sPlitifilY A tit!,ll(mairOltdorgititett.i the; Secretary intISC
not„therm PQ*lo,o 4 4lAlt ittlakilitht the , hat. ;
gun e ki Ai .einnt..„., in tent,i p nettherp erktielgo.
ette is
•,nor li Vtlitlitui 110 Op, of
ttcf,XPregli , o l P'.
''dec der c vistiow4)t . ttos danger oti.repottop,or,;
toro twa , tip yphatespiiteneelies i Shorrn to, 400,
been in nanitlen hilt;'lrePertitnt'linittter, tnifeitunate
ileghpetlon.
If the views, thus presented, are correct, there Min
he 1111(111e8tiOn that ' there is still en excess °Train's'
mousy in the United States; and that the legal-Metier
notes are, an obstacle , and: unless reduced in amou nt, must continue, to be an obstacle. to it retureto a stable
tetilvery ranch turtailol eince 1861, tind'•%ales are made
nig°Onlp%titstattlitlibteasse ', :li alf:t (l ni b- ? ' hasi'a man t
chiefly, for &rah, einneli larger amen& of ,earremy
required than formerly fir thninoudertient transaction
of buelnesa; that there is hand no excess of money,
in the Visited State's, but that. on the contrary, an
increase is required ter Move the crops. encourage in
oacrtithviistyotpoiniterander.efe As an
l e s vid m e a nz
to the -tightness , of the money market,' in the corns
a
menial cities, and the scarcity of money in the agrl
oterrit"hri.p.s correctness nd v
agri
cultural districts.
It Is undoubtedly true that the effect of a curtail
ment of credits would have been to increase the legiti
mate demand for currency, if no other mealls had in
tervee', inter counteract the effect of it. But such means
haveened. In all tile eitie6llll ll towns through
out the country, Checks upon Credits in banks, and
bills of exchange have largely taken the place of bank
notes. Not a fiftieth part, of the business of the large
cities is transacted by , the actual use of money, and
wlist is tree reard to the businees of the chief
cities is metteur in
abli g true in regard to that of towns and
vilingcs' throughout the country. Everywhere bank
credits and bills of exchange perform the ofllces of
currency to a much greater extent than in formeryeare.
Except In dealings with the government. for retail trade,
fdr the payment of labor and taxes, for traveling ex
penses, tile purchase of products at first hand. and for
the baukers'• reserve, money is hardly a necessity. The
increased use of bank checks and btlls of exchange
cOunterbalances the increased demand for money re
sulting from the curtailment of mercantile credits.
That money la in demand, and is commending full
rates of interest, is true, but this does not, indicate a
scarcity of it. Tile rates of interest in Englgnd and
France have bee as low as within the last
months, and 'yetrarely
fin. n
commercial or manufacturing
purpose% money hart not often been so difficult to be
obtained. 'The speculative reaction or over-produc
tion of manufactures, together with apprehensions of
political troubles, have caused business to be
sluggish and unprofitable, and made capitalists
cautious and timid. Thus, in those .coun
tries, money was never moreplentiful,
and yet' apparently never more scarce. Its -apparent
scarcity in the Urdted States Landtributable to high
pricee. to its uncertain value;to ors inactivity.
Money by no means becomes abundant by an increase,
or scarce by a diminution, of its volume. The reverse
is more likely to be true, especially when, as is gener-
Ally the cases high prices are speculative prices, and
prevent activity in exchanges. Money is ill demand
at the present time, not so much to move crops as to
hold them—not to bring them at monad() price%
'within the reach of coreumera, but to withhold them
'nem market until a large advance of prices can be es
tablished. Let the great staples of the country come
forevard and be sold at market prices, at such prices
as, while tile producer Is fairly remunerated, will in
crease consumption and exports—let capitalists be as
sured that progress towards a stable basis is to be un
biterrnpted—tind money, no' considered scarce, will
be found to be abundant. The actual legitimate busi
neesof the country is not larger than it was in lentl,
when three hundred millions of coin and bank
notes were an ample circulating medium. mid
when au addition of fifty millions would have blade it
.excessive. Throughout n considerable portion of the
beet grain-crowing sections of the United States there
has been. dnrine, the past year, great plaintcoma of a
ecarcity.of money, and aet no single article it
tura' precinct. except wool, was to be sold there for
which there was not a .purcheser at more than re
moneratiess if not exabitant, juices. There was nu
hick of money in these sections, but a lack of products
to exchange for it. The hard times complained of
were the consequence of short crops, and not of de
ficient circulation. To tile farmer who had little to
eel' and much to buy. nn increase of the 'Oren-
Istiou would have been an injury; a curtail
ment of it a 'benefit. and yet, by men in such
circumstances the policy of contraction has met with
a condemnation second only to that which it has
received at tile hands of speculators ill stocks. Next
to the stock board of the commercial metropolis, the
opposition to the policy of contraction has been
most decided ill those sections where, by reason of
short crops, tile people haveheen less prosperous than
heretofore. Unfortunately. in the same sections, the
harvest has been again unsatisfactory,and the de
mand, nut only for a cessation of contraction, but for
an increase of paper money, may thee be more pressing
than ever. This demand. no matter front Whet quart&
it collies, or by what intereet sustained, +doted, in the
opinion of the Secretary. be inflexibly resisted by Con
gress. To lvcfeaso the volume of paper money for
the purpose of giving relief to the country, would. be
to foster the cause in order to cure the disease. else,
stay the ;recess of contraction this year will but
prepare the way for an increase of circulation the
next. Whenever the • pulley of reducing the
paper circulation of the • country. with the view of a
return to specie payments, shall be abandoned, it is to
be epprohended that the demand for an increase will
be ineeletible, and that the country will plunge into
bankruptcy. The specie standard must be sooner or
later rester-ed. - - Whether this shall be accomplished
by elevating the currency by teaselling its volume, or
after lessening its value by increasing Ica volume, it is
for-Coeerees to denermine. That this question will be
determined promptly and wisely, the Secretary, ts not
permitted to doubt. Some progress has been made In.
the right direction during thespast year. but there is
still in the United States a plettiora of paper money.
If this is not so, how liaptems it that coin commands."
a premium of some forte per cent. over legal -midi
ncteese that a Welt tariff bas proved poweriese to pre-
vent excessive hesitate
ht reeara to the trees 'to which, they shall put their
sees sioe means?—that imeiness is speculative
and , uncertain:— that expenses of itvine
are, driviug - thousands into ' crime and
n :Wye di honesty excusable, while honorable
en of limited 1.11e01113 are indignantly and justly com
e , Hitting that they earnest live oil incomes that for
merlynave them a handsome" support s Money may
' be inactive, but it is not scarce. Its inactivity is in
'fact the rerun of its uncertain value. With a circus
100 that is to-day at a discount of thirty per cent.,
and Which may by a change of policy lie increased to
sixty per cent. within the next year, with what safety
Can men engage iu enternri see which look into the
future, and which are needed to develop the slumber-
ins resources of file country ? Lei, the paper donee
Indy represent the dollar in coin. Let men of capital
and enterprise feel that tile curreney has come, or is
steadily centime to the '• hard pall of specie. and
there will be a stimuitte given to enterprise and labor
which will banish all complaints of a scarcity of
money.
ff. then. it be admitted that the paper circulation is
excessive, the question arisen why should not the
contraction be applied to the notes of the national
banks instead of the United Stateeinnes, and thus:merge
' saving of interest to the, government be effected? This
question has already been answered inferentially, but
its importance n quires that it shall receive more def
inite consideration.
Prior to lelia the banking institutions of the country,
with the exception of the thank of the United Stares,
were created by the' States, and were subject to ante
authority alone. They were Slate institutions, over
which the general government exercised no control.
The right of States to create and to matinee them had
been so long emended that no interference with them
by Congress, and no decision by the courts adverse
to the constitutionality of their 'SKIM were appre
hended,
soon after the commencement of war it became
manifest that a system of internal taxation must be
adopted for the support of the government and the
maintenance of ita credit, and that this would involve
the necessity of a national currency of uniform value
and undoubted solvency. To meet this necessity
(United Btates notes being then regarded as only a
temporary expedient) the national banking syinem
was created, not to destroy the State banks nor in
juriously to - affect their business, but to furnish,
:through their agency and that of new institutions
•I which might be organized under it, a pennanentma-
Sone) bank-note circulation. Iled it been supposed
that the object of those who advocated the measure
was to bring the State banks under the control of the
Federal government for the parpofie of destroying
them, or that such would be its effect, it would never
have been adopted. No such object was avower or
Intended by its friends,And no such effect was
anticipated by the banks. With that spirit
of patriotism wlech was so marked a charac
teristic of the people of the North during the
war, the etecbholders of the State banks Min
quielled. at tile request of the government, the
gretver privileges possessed by them under State hoes.
and, in connection with the new banks organized
under the law, became efficient aids in negotiating
the public loans and enetaining the public credit. To
all banking systems under which circulating notes are
issued there are grave objections, and if there were
none nu existence in the United States, the Secretary
would hesitate to recommend or to endorse even the
most perfect that has been devised. The question
now to be considered, however, is not whether banks
of issue should be created, but w bother the national
banking system should be sustained. In the present
condition of the country, and in view of the relations
that the national banks sustain to the gov
eminent (Ignoring in this connection the queetion
of good faith) the ; Secretary has' no
difficulty in corning to the conclusion that they should
be sustained. They areas inter woven with all branches
.of buelvess,'find are so directly connected with the e
credit of the government, that they. could not be de-.
• stroyed without precipitating upon rho country finan
cial troubles which it is now in no'condition to meet.
At some mere propitious periods When the Union shall
'tarn been fully restored, and .all • the States ehall have
attainedthat snbetantial prospeeity• Which their great ,
resources and the energy of their pegplearmet sooner
or later secure for them, it :may ; perhaps be wise for
Congress to considerwhether the national banking sys
tem may net be dispensed with. The: present is note
favorable time to consider this questitlti. The condi
tion of mar political and fintemialaffaire is too critical to
justify any actiontbat would comptilthe national banks,
or any contiderahle number of them, to call in their
loans and Ind.their. bends ~hp n, the market for the.
purpose of providin„.• the niestuts Of retiring their or-
ConstarvatiVelegielation is now inclitmensae
ble. The ptiblie mind is too sensitive, business istob
unsteady, and the pollticalthture is too uncertain to I
warrant any financial expekiments. Fortunately none'.
are required. The leafleted bunking 'system has ace
complished all that was anticipated by its Advocates
and more.. .It , bap fonaiehed aeircolation, depreciated.
it le true, like the United States ito4.e. but, solvent best,
yond quelitioneand entrant thrOtighont the Union. ' It :
has la - vented banksmcitepabire. and limed note' fields
ers front losses. it ;ham aided in• regulating &Mottle
exchanges, andfundeheil the government with !valua
ble tinanetal ageete.,:e Mad!
.it .not been adopted, State
Welke would linveceentlinedi es, tinges
elated, td ittaritsh the egent,ry, t Witli, bank - Aottols ' 44
most nf the States; baritewere'riet , required to depOeit
mocha I'M." the 'security Of tbetilatitea; end 1rt,t49 6 9
StatercAVhere deciiiityr wttiliorcquirei 1 l; taste:
limit to the amount Of bonds that might be deposited,
' . asid consequently .no limit to thesanount,Of notes
eetifit might be put in circulation. In othereStates
.therelyas no security beyond the capitOe of thcebanite,
frequently unreal, angethoefeertial habtlity,orstocic
holders4.generaliy
da:tritc'Whai; o° l estilteete the.
extent of the injury Wit e„h people and thegottera-'
etoenterOuld have an edit inetttutleithe withet
eouterny other restricthits t wereeeforcetiA l t State ;
taws bad been permitteti, during the war, teepee-apt'
the fields All having eutipended !peeler payme eesee,
thereby been relieved from the necetisitysof ht phitiles
evidence of eolveney, Lanka unwisely of die on:esti - ft
managed would have steed Or.te,,losel w ith those-which
were managed wisely rind heti:Wetly. While the latter
would have found it difllculetesisegaeleistame
in reasonable limits, so Militated, as ditav
been, to Irene freely, by the necemities•ot the govern-s
mem and the increasing demand for. =Witty, which is
nlw eye the result of an increased supply, the former
would have poured out their irredeemable promises
until deal ruet created panic and panic disaster. That
the mitionalsbanklng system, with Its limited and se
cured circulation, and It restricted rovisions, by
stipereeffing he State eyste s
ms, has prev p ented a finan
cial crisis, there can be but little doubt , . For ,this it iv
entitled to credits end for this curl for °thee reasons
suggested It should be sustained until a better system
shall be devised, or the country is in , a "condition to
dispense with banks of issue altogether.
Ole arguments in favor of compelling the banks toe
retire their notes and yielding the field to the notes of
the government. are based upon the supposition that
if three hundred millions of United States notes were
substituted for the three hundred Millions of national
bank notes now in eircalation, the government
would save sonic eighteen millions of dol •
basin interest which is now a gratuity to the brinks.
That there would he no such saving, nor any *seine,
by the proposed enbetitutlon is clearly ehowd by the
Comptroller of the Currency, in his accompanying re
port, to which the attention of Congress la especiallY
asked.. le an account were opened with the banks,
and they were charged with the interest on g300,000,-
000, andthe losses sustained through those that have
failed, and credited with the interest on the United
, States notesheld by theta as a permanent reserve, with
the taxes paid by them to the government and the
States, and with a commission covering only what has
been saved in transferritg and diebtireing • public
money, it would be ascertained that the banks were
not debtorm to the United States. It is not necessary,
however, for the Secretary to- dwell on this point, as
his main objection to the substitution would not be
removed if a saving of interest would be effected by it.
Regarding as tie does the issue of the
United Sinus notes In the first instance as having
been a misfortune, and their continuance as a cir
culating medium, unities the volume shall be steadily
reduced, as fraught with mischief, the Secretary can
-conceive of no circumstances that wouldjustify e fur
ther issue.' These depreciated but legal-tender notes,
notwithstanding the reduction that has taken place,
still stated in the way of a return to specie payments; a
substitution of them for bank notes- would be regarded
by him and by the country as a declaration that re-,
sumption has been indefinitely postponed. If those
now outstanding shall be retired at the,
,este of only
tour million., per month, the amount inectual
circa
• lation will soon be so reduced that they
may not seriously retard the restoration of
the true measure of value. ef, on the
I contrary, tinder any pretense, or for any pur
pose whatever, their volume should be increased, cape
chatty if they stowed be made the sole paper circulation
of the country, a false measure of value will be elm
tinned. apecnlalion will be stimulated, industry will
decline, and the great risk he incurred that financial
health will only be obtained by a revulsion, the effect
•ol which upon the ll:Art . 4 interests apd credit of the
country no one can estimate. sutls'a revulsion the.
Secretary is most anxious to prevent: and he there
fore cannot approve the ,proposition of substituting
the notes of the United buttes for tht se of the 'lanolin!
battle but recommends that t ter policy of contraction
he continued. The apprehension that this policy we
embarress healthy trade is In his judgment unfounded.
isetainmaie business has not sulfured by 'the curtail
ment winch tuts taken plate Withal the last two years,
nor se II I it permanently stiffer by • such a contraction,
prudently enforced. ae may be weavers to bring the
precious metals again in eiresplation. What business
requires is a stable curremet What enterprise die
mends.. is the assurance that it shall not be
. balked of its just rewanle by an unreliable 111C1MICO of
value. It S> frequently urged by those who admit that
the currency is redundant. that the country is not now
In a condition to hear farther contraction; that its
growth will soon render contraction unneesetary; that
businees, if left to it-elf. will rapidly increase to each
en extent as to require the three lelfitered anti eighty.:
eigla millions of United States notes and fractionel
currency, and three hundred .millions of bans notes., e ,
DOW outstruiding, for its proper and needful accontruo-!'
dation. ISothing can be mere fallacious than this un
fortunately popular idea. Apt ireedeenmble currency
"1, , a financial disease wheel retards growth histead cif r
encouniging it; which stimuintes speculation, but .di
inlnishes labor. A lie:ilthy growth is to be seemeht by
the removal of the disease!, pad not by postponing the
proper treatment of it in the extiediiihni that the vigor
ous come:Bethel of the patient-will ...e_veptually over
come it.
The text subject to be considered, in Mentection
with the permanent resumption of specie payments,
is the maintepance of the publiclaith, which' his
wolves t be_necessity of vid4e and stable . ieeenue laws,
impartially and rigorously enforced: economy in the
public expeedit ens; and a recognition of the oblige•
tion of the government to pay its bonds iii accordance
with the underetanding under which they were Leaned.
The remarks of the Secretary in this report upou the
subject et the public revenuers must necessarily
, brief ,and general. Fortunately the accompanying re
; ports of the Commissioners of the 'Revenue are so
eettanstive as to render any, elaborate discus
; sloe of 'this great subject' on hlis 'pan utuaeteetsary.
1" The power to tax Li one of the most envwe:Ant
-powers exeri•ised by governmental. Tel tax
..to Ilse large revenues .WllllOl,ll
.pp
pre-Onlr. indastry, i= one of • the most difficult ditties
' ever devolved upon rite law-making, power. `Taxation
can never be or and it he
comes. especially so when subject to frequent chattel:at.
It is. therefore, of great Impotence that revenue laws
slimed be stable. fly this ft. is nit meant that they
Pbuitld be unchaneetable; but that while, trout time to
time, they may be modified to meet. the ciartneine
condition of the country, the principles upon which
they are bas=ed should be so wise and just as to give to
them permanency of elieracter. Perhaps as much ens- •
' chit f has resulted from the frequent changes in the
tariff laws of the Untied St., tes as from their defects.
Freest the 'line when the first tariff was trained in 17e9
up to the last session of Congress the tariff ley been
a fruitful,..:ubje , t- discussion, and at no period
has the policy of the government In regard to cus
toms , luties been rtgaracd as deilmitOv settled. There
has been a c,:nt tent struggle between the advocates and
opponents of protection and free trade, the mom
dency gem-rally being with the proteetiontets. The
thrifts of lent, of issel, 1838, 1e42, and 1801, were ad of
a highly protective character. Those °Carel and 18-16
reduced the duties largely, and looked in the direction
of free trade. So evenly, however, have parties been
divided, that although protective laws have generally
ben in force, at no period from 1789 to the present
day have importers and manufacturers lad any region
able assurance., that existing tariff la We might not be
suddenly and materially altered. That the effect of
, these changes—actual and apprehended-has been
, highly injurious to the country cannot be questioned;
that it has not been disastrous indicates the readiness
of the people of ' the United States to adapt their
business to the policy of the government. whatever it
may be. The frequent changes of the tariff laws are
attributable to the fact that in tone of them has•
revenue been the principal object. There has never
been in the United States a strictly revenue tariff, and
consequently, there has been no; stability in the
tariff laws. Up to net, the revenues front
customs, under any scale of duties adopted, were sant
elem. to defray the expenses of the government, and
therefore the question, now so interesting, was hardly
a prominent one. In the present financial condition
of the cannery large revenues are indispensable; and,
in adjusting the present tariff, the question of revenue
must necessarily be the question of paramount im
portance.
When the government wits substantially free from
.debt, and the public expend' tares• were small, as • was
the, case before the rebellion, a revenue tariff, properly
adjusted to the public necessities, would have been a
low tariff. But now, when a heavy debt and liberal
expenditures create a• necessity for large rev
el)llC,3, a considerable portion of which must, for
some years to come, be derived from customs, it is
(Meta to perceive how, without excessive impute
' riots, a strictly revenue tariff can fail to be a high one.
It may thus turn out that the necessities of the &meal:E
inem. may give incidentally to American manufacturers
. the protection they are supposed to require without
sptanal legislation—always odious mud generally unre
• liable—in their behalf. Inasinneli as large and per
manent revepues cannot be realized unless laws are so
framed as nut to bear heavily upon industrial patentee
a tariff which, harmonizing with internal nixes,
should year by year yield the largest revenned would
undoubtedly prove to be the least prejudicial to
national growth and prosperity. A high tariff, by re
dufitng importations, or by oppressing important
branches or .trade and industry whiten are
subject to internal duties, nught prove to
be 'as tinfieorable to revenue as a lose one,
and equally unsultea to the public necessities.
The present tariff, although a high one
' lute not,
proved to be protective; While, for the pasttwoyears,
it has been highly productive of revenue; but its failure
to protect those interests for whose benefit it was in a
great written framed; and the large revenues which
have been derived from it do nnee' prove to be iti any
jest, sense a reeetine; tariff: It has frilled to . 'ghee to
Americanmenefactiirers the protection it was in
tentied to afford, and it has - yielded . numb larger rev
epees than weretantielpatedt beettuthee Itliehien prices
preVailintein the United States have stitutileted tumor
tatione.. it does not -follow, because it Is producing
large revenues now, that it will continual° do so when
buSiness and the currency 'shall be restored . to' a
healthy copditien, The: ime will soon e,orne vvhen the
United States will cease to be the most favorable coups
try, eo sell in, and when,' It must- pay. for Whet it pur
chases, not in its bonds, but in Hamm productions. In
order. that the- present • tariff should., be a revenue
tariff, " important modifications will be necessary
Which cannot be intelligently made until liminess
ceases to be subject to' derangement irredeerna-,
ble curreey., The Seeretary e does I not,;eherefore, re
connect a complete revision of the tared at the pres
ent session; but there- are some features . of it, and
setae matters .ereinectell with,it, which require early
• attention." • •. • . 1" r '
The experience of the PePartment enserosee inane(
dioadventageo attendraittintrothe cellectiohl of, duties
' tin imports when the rates arehigh . and 'estitaated on .
ad valorem basil For the collection of oath du
; thee machinery more or less complicated is neees rtationseary
,• for ithe.veriflcation. abreftd.of invoices eemme
f
an fent the exaMbiatiors iii#ltEileor° l " mar "'
telt:Sadie e OD' it& aravalthebiff;:eotitrea ;o'lall'Y
in
•-• puree .teolopgriewillttiqldred) betweenithe Invoke
ePtinlag;:Autt,fllo:!geSteifak rilattOit -:the principal
of ' tie ,countru iitatro , :s .',4 o lnTodltY! ie
v.,, ,t,;•
. ,
exported: ',Mx 0 - 414111nultifoi . (is. staining the forolga
market NAirfibliftially,iii cases where a commodit f
is manurnetnre ;etresAly for exportation. affords /
temptirv.ipporthhit fro.for successful undervaluation,
t r
find therldigh rates; duty offer inducements for
&Won mote Midi cci##norisuritto with the dell of de
tection. ~:, • ' ''''.-.•::.
/Since iliiipintshgerfrehe tnrlfY act of March 2 1801,
thellatesof . duty, whletr from 12,40 ;to that period were ,
extlaslveli , ad valoreldf , have on many articles, been
spetilfic. 4 1lie system of . specific duties appears t%
have given much satisfaction to honorable dealers and
to officers of the customs Or the ease with which the
character and quantify:of merchandise imported can.
be determined; for the uniformity with which duties.
may he assessed at different ports ; and purlieu.
forty as it precludes the possibility of fraudulent nu
dervalnationic Without recomnfendink an oielesNe
adoption of specific duties, the 'Secretary would ang—
gest for the conSiderstion of, Congress whether; the'
system
system might not With propriety IM extended to all"
commodities on which the duty neara a large propor
tion to the value, or Of *hl ai the 'foreign tharket
price is subject to great fluctuations: or 18, from other
causes with dlfiledity ascertained ' The Special Com
missioner of the Revenue Will in his report present the•
result of his'inVcatigations as to the extent to NvhicV
the **valorem rates ;of the :present tariff van head—
vantagenuelf converted Into corresponding specific
Out les.
• Our commercial relatiOns with' ,Ipain . awl her colo
nies. tinder the Acts cif 'July ltJ. 181 &, and June 30;
'particularly po •far as they, reilde to trade with Cuba
and Porto itico, have been many years the source of
much perplealty'and have, given rise to frequent dis
cussions. The acts above cited were designed its re
t allot ory, measures to induce by a sort of coercion a re
laxation of the extreme protective system adopted by.
Spain in relation to hercolenial trade. Not only have
they entirelVfalled to produce the desired effect but their
operation fiats proved.on 'the contrary positively in-
furious to our interest in every respect. Their , effect,
in connection with i3panish exactions, has bee* to
drive the greater part of Cuban and Porto•ltlcan trade
from our markets to others where the , same policy.
does not prevail.
The counterrailing systent,thua brings no benefit ,to
our shipping interests, and largely curtails our
commerce, while considering the proriliq of
these islands, should include the greater of
their foreign traffic. It is, therefore, worthy o grave
consideration whether sound, enlightened policy does
not dictate the repeal at least of the act of IM
Recommendatiows to this effect haYebeen atearlons
times made to Congress, by my predecessors, ;particu
larly Mr. Walker In 1819, and in 1852. by. Mr. Corwin`.
The experience of the past, fifteen years has fully jus
tified the views then expreeiled.
The shipping interest of the United States, to a
great degree prostrated by the war, has not revived
during the past year. • Our ship-yards are, with rare
exceptions, Inactive. Onr eurpois products are being'
chiefly transported to foreign countries I n foreign
vessels. The Secretary I' still forced to admit, In the
language of his last report ; "that with unequaled fa-•
cilides for obtaining the materials,and with-acknowl
edged skill in ship-building, with thousands of miles
of sea-coast, indented with the finest blithers in the.
world, with surplus products that require in their •
transportation a large and increasing tonnage, we can
neither profitably build ships nor onceessfully compete
with English ships lu the transportsitson of our own
productions:"
No change for the better has taken place; since that
report wits_ made. On the contrary, the indications
are that the great rhiptuthllng interest of the Eastern
and 'Middle States has been steadily declining, and
that consequently the United Stales is gradually eats
log to he a great maritime power. A return to specie
payments will do much, but will not be 'efficient, to •
avert this declension and give activity to our ship—
yards. The materials which.enter into the construc
tion of vessels should be reileved 'from taxatioh" by
means of drawbacks; or if this maybe regarded as ha
practicable, subaldiee might be allowed as an offset to
taxation. If subaldiee are. objectionable, then it Is re
commended that all restrictions upon the registration
of forehm-built vessels be removed, so that the pee- '
pie of the United States who cannot profitably build
vessels, may be , permitted to parch/13c theta is the
cheapest market. It is certainly utt`'.?.4o;estesehrilrerit
the statute books a law restrictive upon,eommerce
when it no loneer accomplishes the object for whicir
It ono enacted. This subject is one of great Interest
to the whole country. The attention of Congress is
again earnestly calli2d to it.
The Special commissioner of the Revenue, since
the adjonnanent of the Thirty Ninth Cons-pea, has
been actively merged in the wide range of duties as
signed to him by law, and, ander the chrection of the
Secretary. has devoted a portion of his time to a per
sonal study and examination of the revenue systems
and Industrial condition of Great Britain and the lead
ing countries of Europe.. The result of his investiga
tions will be transmitted to Congreas at an early day.
In his report the Commissioner wilt diteese
tie; subject of government expenditures se
bearing upon the question of the abate
ment ,of LIMPS, the present industrial con
dition and recent progress of. the 'country, the prices
of labor and of raw material at home and abroad, the
revision of the internal revenue system both as res '
tpeets adnrirdetration and specinc taxation, and the
' relations of the present tariff to revenue and domestic
industry. This report, and that of the Commissioner
"elinternal Revenue, which pr Bents 1 is views la re
gard to What Is needed to-relieve the-excise-from some
of its moat burdensome features, and secure greater
efficiency in the administration of the law, wilt Ito
found to be so able and comp eta as to make it quite
unneceseary,,as before suegeeted, fir the Secretary us
do more than to conneend those to the attentkat Ofi
Congress...
While the amount of revel - me 'to be srabted, by in
tent:ll taxes must continueto be large, it is evident
that many articles, now taxable, must be t sieved from
taxation, in order that the number of revenue ()Ricers
may he reduced, duplication of taxes avoided, and the -
system rendered lees obnoxious -to tax-payers. It Is '
also evident that the adminhdration of the law mast '
besitore efficient than it is at present if the service is
to escape utter demoralisation. The. Internal reyen-1
ues or the past year would bare largely exceeded the
estimates but for the failure of rite revenue officers to
(elect the tares upon distilled liquors Thie failure
is well known to the country. and has been the cause
of deep regret and not a lade humiliation to the
secretary as well its to the Commletiotier.
The duty upon distilled Nem" is so high that there
has been a animation to avoid its psymoth which
has. so a great extent, demoralized both the manatee
t v rers and this officers of thereat:rine. Ai.tax of tyrodol
late per gallon upon au article which can be made for
thirty rents triuthl be a difficult. tax to collect, even in
a small country, where appointments to revenue posi
time; depeed upon merit alone, and where dise
honesty Is promptly and severely punished. It is es-
jos:laity difficult in a country so vast as the United'
States. where politics are apt to Influence, if not to
control, selections for office. and where 411,111 in evad
ing the requirements of revenue • laws Is not
among the least decided characteristics) of the
(bailee. The Secretary is not of the opinion that this
tax cannot be collected, but he does not hesitate to say
hat even if the meter which- Ms bet-n adopted, and is
intended to be brought into general use, shall acorn- •
plith what is expected from it, the collection of to
heavy a tax with thoroughness will be impossible,
unless a higher standard of qualificationfor revenue
officers than now exists shall be established. The
views of the Revenue Commissioners on this t
worthy of especial constideration.
The necessity of economy in the public expenditures
in the present financial condition of the country
18 so apparent, that no suggestion from the
.Secretary are needed to impress it upon the attentloa
of Congress. Taxation is weighing heavily upon the
ipeople and they have a right to demand, and they
are demanding, that their necessary burdens shall not
be Increased by unnecessary expenditures: Public
economy is. in all nations, a rare virtue, and it is a
singular truth that nations which are most deeply in
debt, and whose otters ought, therefore, to be most
prudently maneged, are the very nations where the
least economy is observed. This truth, so interesting
and instructive to tbo people of the United State!' at
the present time, is largely attributable to the well
known facts that the contracting of large public debts
to unavoidably attended with imprudent if not reek- •
less expenditures, and that when those intrusted with
or possessing governing power have once
enjoyed the luxury of using •or • impending
freely the moneys under their control, (and this is at- •
wart the case during' the e xceedinglyprozras t V ware')
proper economy Is afterwards c-edifficult to •
be enforced. Thus, national debts become chronic,
and efforts to reduce them are rarely successful. The
debts of nations, the most heavily burdened, instead
of being stationery, or on the increase, might be in the
process of rapid extinction, if the 11+1030 economy were
practiced now that was practiced before their
debts come into existence.. It is of the
last Importance that the debt of the 'United States,
should not, like that of most other • r
trattoria,' he , pe
petuated by habits formed during the period of its
creation. It is large, but fortunately it has not yet be- -
come chronic. It was incurred under the pressure of
a war so vastand so momentous*. that economy was, in
a large degree, loot sight of in the absorbing pobile in
-tercet which it excited. It is undeniay furretdable
in amount, but the experiencee of the past two Years,
during which, under the most nupropitlotte circum
stances, it has been largely diminished, must settafy the ' e
least sanguine that the reduction of it can be continued,,.
and that, even with diminished taxation, it can be to
tally extinguitthedatithin the present century if a rigid'
economy, which, perhapp, ceald not beprecticed dar
ing the war, and unfOrtunatelyehres not been praCticed
aince, - Is hereafter faithfully enforded in all brimeheet
of the public service. .Extravagance in the adminis
tration of the governMent has not become so fixed as
to be beyond correction. There le no substaritiel dllll-•
citify in the way of public economy now, but•'there
may be a few years hence.- It is not proper, perhaps
for the Secretary of the Treasury
to advise in yegard;
to the precise manner, in which ',this ecouoreyahMlbe
enforced, blithe venterestO'auggestS That , the army, 1 .;
at the
ea
at moment, be red u ced 'hi the
minimum required to garrison forts, and'proservethe
peace on the frontiers and along the, lines sof
Pacific roads; , that the expenses 'Of ; the' navy:
be reduced, as far as can be &Me consistently„ .
with the protection of . our commerce' and the
tnain
tonance of our reputation as a maritime power; that'
retrenchment be introduced into all branches of the
civil service; that there be no' payment of , damages
which were the unavoidable incidents 'of ' ar;
there be no additional grants to
railreads , and no con
siderable donations of any: character unless, •in con
nection with the appropriation, 'a special tax shall bo
levied for, their payment:
But the public faith,doert net +depend, : along, .Apes ,+.
adequate revenue laws. nor smolt economy in the ad-
ministration of the governments `it rests 'also upon , .
'the observance of; contracts, in the spirit Se Well as*
the letter. In fact; withent his there-WM - he PeittrOre
efficient adminiatratieri of 'reve nue laws nor economy'
in expenditures.' Nothingbat aka° ; ;
vency will save'` from they infrunye',`Of','s fOinldikss ,
tion windiest that does's hot+' pay' he' `debts tecorde
ing to the understanding at the time they were con- -
sracted; and whet a nation voluntarily violates thin
j+nederatanclings it will goolabn u»Able, from tly3l,Try, ;
.
effect of liewn Crimple, to enfarce r ltitletrenier
and its expenditures will only be checked Its inn
' Nifty to collect. How much of the demoralization
which exists in the revenue service of the ' United
states is attributable to the failure( of the govennneat
to redeem the legal render yeses According to their
tenor, weald be an Interesting eubjectlof inquiry, but
hardly appropriate for a communication like title. In
his report for the year OKA the Secretary' used the fol.
'rowing language in regard to the national debt: '
"The maintenance of
- public, faith is a natiojeni ne-
Ceesity. .Nationsdonot and cannot eafoly =Mutilate
moneys to be used nt a future dny, and exigencies are
couetantly oceun'ing in: which the richest and most
poweiful are under the necetiiitY of borroveing. The
millennial days, when eltaltheat s their swords
into plough-shares and theiroiipears Into pruning
hook, • and., learn war ao more, are yet,
. according to: all 0;1010.. liallcatlolll4, tar In the
future. Weak and delimiting nations may main
, tain a nominally lectepentleut existence, but it. will ho
by reason of the jetitonsiee, rather than the forbears
since, of stronger powers. No nation is absolutely
safe which is nut in a condition to defend itself: nor
• cnn it be hi this condition. no matter how strong In
other respects, without a welt-established' financial
credit, 'Salons cennot,ltherefore, nfford 'to be un-:
faithful' to their 'pito:whey obligations. Credit to
them, as to indlvidtude, is money: and money is the
war power of this age. But for the unfaltering cone-,
denee of the people of the loyal . States lo the good
faith of the government, the kite rebellion would have
been a success, and this great nation, go rapidly be
coming again nntted rand harmcmloise would have been'
brokenllllo weak and belligerent fragments.
"But the public faith or the 'United States has high
er consideratione than thesis for lie sepport rests
not only instil the intereate rift the peoptd; r . upon
their iritegrityied'virtuti. ~ T ice: debt .01 , th . United
States has been created by the .p pies in
their enticeesfoletretigle for inttlivided, and -
Wel nationality: it As not a debt Imposed upon nriwlll
Mg subjects by despetic authority, but one incurred by
the people theme:hers. go; : the preservation of -their
govammenthy the presereation of which those who
have heentertgued together for its overthrew are to he
es really benetitted as those who have been battling
for its maintenance. As It is a debt voluntarily in
curred for the common good. its burdens will ho cheer
fully borne by s tile FeeilleS. l o o will not permit them to
be permanent. -, • • .
i'.ow, to what is the United Stales pledged in regard
to the public debt': le it not that it shell he paid ems:
cording to the understanding between the government
and the subscribers to its loans at the time the sub
ecriptions were Kith:heti and obtained: And can theist
be any question In regard to the nature of the tinder
is Wasit not that. while the interest be ring
should be converted into bonds or paid in law 2
'lel moneyethe bonds should tie paid, principal as well
as interest, in coin? Was not this the undiestandlng
of the Congress which paseed the loan bills and of
the people who furnished the money? Did any
nieniber of the House ore( the Senate, prior to 194,
In the exhanatlve dl, cuseioes of these bills, ever inti
mate that the hands to he Issued in rrecerdance with
their provisions might he paid, when redeemable, In a
'depreciated currency Was there a single ,tiliseri
her to the Ilve.t went y bonds or to the sevenSufil th rite
telith notes, which by their terms were convertible
into bonds, who did not believe, and who was not
riven to underetand br the agents of the goverment.
that both the principal and interest of these Meets
.vvere pa - Table in coin r. Doei toy one snippiest that the
.pecpie of the United Stetes, self-sacrideine as they
were it the support of the aovernment. would have
void their stocks. their Miele, the products of their
fame, of their factories and their ehops, and invested
tile Proceeds in live-tWettry bonds and seven and three
t t h notes, rot:vs:it I tne Into Ellch If. they
had understood that these bowls were to 1t redeemed
after live ynus from their reepect ive dates in a cur
rency of the value of which they ceula form no reliable •
estimate Woukl the Secretary of the Treasury, or •
would Congress—when the fate of the nation Iva ,
trembling in the balance, and when a failure to rale
money for the support of the Federal army emild have
'be e n stocees t o the rebellion and ruin to the Union
. cause--have da red to at tempt the experitient pf ralei
looney on bonds redeemable at the pleasure of the gov
ernment after five years, ill a currency the convertible
value of which might not depend apon the sot veney
of the government, hut upon the amount in circula
tion:: No such.understanding exissed, and fortunately
no such experiment was tried. Tile bonds were no
,.
go - tilted with the dearate understanding that they
were payable in coin, and the seven and
t hree-tenfli notes with an equally ' definite
understanding that they , were convertible
at the option of the bolder into bonds of a similar
etutracter or payable in lawful money. The contracts -
were Made in good faith on both sides, a part of. thorn
when the government was in imminent peril and
needed money to preserve it- esistence. the balance
when its necessities were scarcely less urgent, for the
payment of its just °lineations to contractors and to
the gallant men by whom the nation had been _eaves
(reed faith and public honor, which to a nation are of
priceless worth, require that these contettets should he
complied with in the spirit in which they were mate.
The holders of our bends at hens and abroad. who
rinderatand lii: character of the people of the United
States and the grentneae of the national re , tirces,
ought not to need an aesortinee that they will be so
complied with.
Here remarks upon a Sni*ct which it. ought not to
be necessary to discuss might be closed, but the great
interest and alarm excited by the 'doctrines recently
promulgated stem to justify &reference to the debate.;
when the act of February - 2.3, lfista in some respect
the most important of the loan hills, was under con
sideration, in order that the action and intention .of
('engross in regard to the lent tender notes and to the
bones which it auttionzeti the issue of may be under-
This act authorized an issue of one hundred and
fifty millions of Univei states notes, which were made
receivable for all government dues, except duties ,on
imports, and of all claims aglinst the CMOs! States.
eiceptfor Interest upon bond+ and notes. which was
to he paid in COll3. It :deo authorized till' issue of live
hundred millions of bond., redteennble at the pleasure
of the government after five years from date. 'rho
purpose for which these bonds were to he issued was
stated to be •'to enable the Secretary of the Treasury
•to fund the treaeury notes and floating debt
of the United States, - and he was , author
ized to dispose of them 'at the market
'slue thereof, for coin of the United States or tor ally
Treasury notes iseued under ally formerliet of Om
' press. or for the United Marts 7(0155 that rely//
alio/ ohder this act." Regarding only the act itself, it
is not supposable that Congress intended to provide
for lundlug the floating debt in bonds which might, at
the (-spina ion of five years. be called It 401 d 140. d. iii
me very notes which, with the Treasmy notes, were
thus to be funded. These bonds, like all others since
and previously Issued, were intended to be a port of
- the funded debt of the United States, the right to re
deem them after five years having been reserved by the
government not that they might be called in anti paid
In a depreciated currency, but in order that boupe hear
ing a lower rate of interest might be substituted for
them, if it should eo happen that before
their maturity m ney •could 'be borrowed on more
favorable terms. The qct provides that the United
tates notes of which it authorised the issue shall be
receivable in payment .cd all claims and dienatets
against the l.nited Statei, of every kind whatsoever.
except interest upon bonds and note,, which shall Ise
paid in coin." It is not said that they shall not be re
ceivable for the principal of the bonds, for the very
obvious reason that they were expec ed, to be but a
temporary circulation. AIM/vision that these notes
--intended only to meet a temporary emergency--
eltould not be received for the payment of the princi
pal of bonds which were not redeemable for live years,
would, if it had- been advocatee and insisted upon,
have been quite likely to have prevented their issue.
glie public judgment had not then been perverted by
an irredeemable currency, and a proposition that indi
cated a long-confirmed departure from the specie
standard would have found few supporters in Congress
or among the people.
But. if the intention and understanding of COngleSS
are not sufficiently indicated by the language of the
act, all doubts must be removed by a reference to the
debates ohne it was under consideration. From those
debates it is clear that the issue of the legal-tender
notes was expected to be limited to One hundred fled_
fifty millions. Onthisperint one of the Representa
tives from the State of New York spoke as follows:
"Then the whole secret of our financial succes e
simply lu borrowing five hundred millions,or rather
in funding the floating indebtedness convertiblyreps
resented hy the Treasury notes, see that their issue
Deed ffever exceed that, authorized bV this bill, and
which is conceded to be the einem limit consletent.
with safety to private interest end public credit. No
body has proposed to rely upon this currency beyond
that amount, but, on the contrary, the idea of any
further similar Moue has been expressly repudiated by •
every supporter of this bill."
One of the Representatives from 'Massachusetts put
" to the distinguished Chairman of the Committee of
Ways and Means the following question :
"Let me ask tint gentleman 'from Pennsylvania
whether he now expects in managing these financial
matters to limit the' amount of these notes to one
hundred "and fifty millions. is that his expecta
tion t"
To which question he received the folleVving reply :
"It is. I expect that is the maximum amount to be
issued."
Later in the debate, the saute dietingelghed gentle
man need the following language :
"When this question was discussed before, the die
' linguished.geatleman'from Kentucky (Mr. Critten
den) asked me svhether it was the intention or expece
talon oftheMoneetogo on and issue more than one
himdted and fitty mlinons of legal tender notes—a
pertinent whicisl 'saw the full force of at
sthe time. It,old,htin it -watt my expectation that no
more would be homed by the „eovemment; that they
would be' received and funded in the twenty-year
bonds."
It hi', clear from,. these gnotatiOne, and the whole
timer of the debitti3l that it woe the intention of Con
gress that one hundred and fifty millions should be the
limit of the legal Wilder circulation; and that listens
-confidently expected that this circulation would soon
be converted into the live-twenty Wade, known as the
.bonds of 1862, and wineli fireMlWretldemaide Rewriting
to their tenor. This' of itself Is a inifllatent Militants
tion of the fact that it 'was deemed unnecessary:to
Igetlde that these notes ellneld net, he receivable for
; apse' principal of the bende; r * Liir. - the 'amount to be Is
sued waslimited to one hundred and fifty millions, a
provision that they should not be receivable for the
principal of fisteionedred pillions of ,hooda s to be its
sued under the linenet, ihitlitch they wereeaPected
to be funded , - and - which Were riot to' be
subject to the control of the government
for fiveyttre week! s Orf. llllll Y have been
iiegstOdLss. nt i se k i .i4siets:4l it would havebenn
unnecessary. Mthis is net . All. The same gentlo-'
man who, as Chairman of. UM Committee of Ways
and lean, was the exponent of tho views of the
Jicistee, Remotes quesqop, in ispeeleing s of these bonds,
Maur re,llo‘vat.'; ,
" "A. oiler to a misers , safe, unprodnitive, is it' r 'sore
disturbance. Where coOld theyinvest it? In - United
:10tatos bans at six perucont., lodeentable IA gold in
twenty years—the best and most valuable permanent
investment that could he desired."
Wentd hiehavelegaPaed these bonds& meet
perensuent Ineeatieent if he bud Supposed that
they 'night lateredetened a'depreelated% currency at
the expire t liee Years fr.* , date , be
'Said: "But widows and °teatime ere interested and in
tears lest their estates should be badly invested. I
itarno IMO tub Juts money anyeated in; the United
Stntes betide payable hi gold itt twenty Yeats, with ine
tercet semi-annunlly,"
In there debates very little was Said epee the t
of the payment of the prinelpid of the betide. appar
ently for the reason that no one 'supposed that teeswould or could be paid in anything - else thin in the
heretofore recognized cenetttutional currency of the
country. The eame eittaabe suld hi regard to the de e
hates 'upon the little mithoilzing subsequent issues.
The tide of March :1, 1863, and Tfarch It ar e the
only acts which state expressly' (bet. the bonds to be
. letued tinder them shall be pliable In coin: and this
provision in these atte, If not neeldeutal, attracted nor , .
attention at the time. either iii Congress or with the.
public:. 7Under the former act eevent l eet ee m ini on , of
twenty-years slit percent. halide (pint of those known'
as. bonds lee]) were issued. raid .ttuder
. the letter act , Dearly two hundred mil- .
'• ; Of Ave. per emit. bonds, known as
ten4orties; and the fact that these sly per cent. bonds
have bad no higher reputation than other bonds of the
same class, and that the fire per'cent. bonds never
Were a populnr eeeurity, and have, 'in the market, en-.
til very recently: possessed a value correspond
' Big With the six per cent. flyeetstentlem, shows ton
sfiely that 'dement in government Dt - viritlv'P+, and the
people generally, have not regarded this provision as
placing them 011 a different footing, as to the kind of
money in which they are to be Mud, front the bonds
leeued under 'lets containing no such provision. Then;
was nothing In the"condition of the country when
the-c sets were passed that required nu unusual
provision, in order that the loans authorized by them
might he successfully negotiated: on the contrary', the;
national credit was better then than at periods when
other loan hills were parsed ; nor was there any-'
intimation by any 'member eof , Congress, nor
was it 'ever thought by the of acera of the Trotter, De
partment; that the bonds authotiked by them were of a
ditierent character bruin those heeled under other acts.
his unreasonable to suppose that it was the Intention
of Congress that the bonds authorized by the acts of
February 25, letel. and June a, 1861, might be paid
it legal-tender notes,: while those authorized by the
acts of March a. 1i4.1 ,and March 8.18e4. could he paid
only - in coin, The yarieu s Jostles or bondi, cons Utah eg,
the maiden! funded debt. stand upon the same footing
and all ahould be paid in calm fealty are so paid.
National debts are subject to the month law of the
nations. Whenever there Is no expression to the
contrail, cola pa mehta In such obligations are hon
orably implid, The policy of the government of the
1 etitialeitatea In 'regard to the payment of its debts •
has been unlfonn and consistent. Prior to February ,
25, 1E62, there was in the United States no lawful
money but specie. - eoneequently its Tref - leery notes,
and its bonds previously t-sued," were
pay able in the same currency. Subse
quently all interest-Leanne notes were • made payable
'in lawful Money, bnt no change was made ,M the form
.rat the obligation of the bonds. Titus the eeveti and
three-teien note Is-tied after that date. the five per
cent. note*, end the compound interest notes, were
nutdepeyableiu lawful moneyeaviele the bends not
being so mide payarde have es er been recognized by
conerees, by the Treaeury Department, and by the
peoph ee . a• arable (myth cone. The,e different
clan-cif Mearlties were negotiated with this distinct
understanding—an understanding which is as bind
in; upon the honor of the nation its if it were explicit
•ly stated in the teat no, It 'as -true that tee bonds,
end notes coevertlble into heeds issued after the pas
seee of the its-t legal-tender act, were paid
for in a depreciated curreney, and "were,
therefore. in lace eold at a discount: bat
'it:le not denied that fay sere -sold fairly, and that
every one had mimic opportunity to eubseribe for them.
Agencies , •7 0 ert:i l )lished, and enleceipt ions selieited
in every part of the country; and liberal mtle-criptiong
were regraded a, evidence of loyalty. 'l'6at they were
peel for in a deprecieleceeurrency was not the fault of
the subscribers. They were sold at the highest price
that c oup; t e • obreineel for them—not chiefly to the
capitaliste of the cities. but to men if moderite ;neaps
throughout the country, Who subecrlbed for theme not
fur rpeculation, hit to old the gown/meanie its strue
e with a gigantic rebellion; and It is a sienificant
tact that, with rare exceptions, the compleint- Hutt
titer IV , TI, sold at a discount come from thee; who. :
doubtful of the result of the conflict, declined. ;
inveet . thorn.. now wonld. :the govern
mem of the United States stand before the
said—how would it vend in the estimation of
to own people. lilt should decline to pay, according to
.agreement. the !none:aft borrowed when its very eX-
era- in peril. and, without which It could not ,
have eroeceuted the war, on the ground that the lead
ere took advantage of its necesettlea and purchased its
securities at lese than their volute
But if the honorof the nation were not involved in
the question, titeireedry arises, in what shall the
bombs be "paid if nit in coin? Some live hundred and ;
nfteen millions of live-twenty bands are nownxieem
able according to their tenor. No one certainly would
propose that sonic of them should be called in • and
Paid in a currency now worth seventy cents[ on- the '
dollar, while the nee Omit remain unnelemmel wall
the eurreney shall be still more dettraciated by ad-
(Miens to its volume or appreciated - by coutraction.
The holders of these bonds stand on the same Nether,
if any are to be paid before maturity inn depfeciated
currency, the whole should be eo paid, and
iu a currency of equal value. But tic
goverimtent. lute no United Settee notes in the
Troteary, and a the annual receipts are not likely
hereafter to be much in excess of the expendituree,
and as a new loan to raise money for the purpose of
violating an agreement under which a previous loan
wee negotiatett would be impracticable, there would be
no way in which the bends: now redeemable could he
paid asher been proposed, except by patting the print
nue presses again at work, and Issuing more promises.
which must themselves eventually be paid in coin.
converted into coin bonde, or repudiated. Thie pro
ceee of making money.seems an easy one. but our own
experience. and the experience of every other nation
that has tried it. prove it to he neither judicious nor
p teltuble. As the paper circulation of the ceantry is
already redniudant. It would be lessened in value' by
every addition to it, and, by the dietruet thud cre
wed, its depreciation would doubtlees be in a greater
ratio even than the addition e would beer to the volume
to which they would be added. It is not too much to
say. that an additional issue of lave hundred millions
of United States notes would reduce the seven hun
dred millions of paper money now in circulation td
one-half their present ;due; so that a legal-tender
note or a national bank note, now worth seventy per
cent. in coin, would not be worth moretban thirty
nye per cent., even it the apprehension of further
iesnes did not place it on a par with Confederate notes
at tbecollapee of the rebellion. The bonds would of
centre decline in value With the currency in which
they'would be payable. Can any oneseriouely propose
thus to depreciate. .if nut to render valueless, the
money alio securities of the people t Can any
one, knowing the effect which :quit an
Ingle , would have upon the government
bonds, upon the currency now afloat. upon
buoinegg, upon credit, ' upon the public moral , .
seriously athocate such a measure. not a , a matter of
neeresify, but to anticipate the payment of debts due
many years hence? The statement of the proposition
eSposes its wickedness. When fairly considered. it
cannot-fail to be stamped with universal condemna
tion. It is a proposition that the people of the United
Sates. who own lour-tit ths of the national obligations;
tdsall, by their own deliberate act, rob and ruin them
eels es, and at the same time cover the nation with in
expressible and ineffaceable disgrace:
In opposition to all such expedients for paying, or
rather for getting rid of, the public debt, is the up
right, world-honored economical policy of paying
every obligation of the government according to the
understanding with which it was created L-the policy
of appreciating the paper dollar until it shall repre-,,
sent a dollar in coin, of giving stability to business
and assurance to . enterprise, and wiping froni the
country the reproach that rests upon it by rea
son of the low price of Its securities in the great
marts el the world. That this la the policy which will
be sustained by the people and their representatives.
the Secretary has the littlest, confidence. There may
hereafter be nations which. ignoring their honorary
obligations, may look only to their own statutes for
the measure of their liabilities. If there shall be such
• Ilona. the' Repnblicef the United States will not be
found among them.. It has essentially suffered by the
actual rei diation of some of the States and the vir
tual rept tion of others: it is still suffering from the
same use, although more than a quarter of a century
has elapsed since this stigma was fixed upon American
credit, It is suffering also from the fact that Hansa
chlisetta and California alone, of all the
States, have continued to pay the interest on their
bonds in coin. But although it has suffered, and I. still
suffering, from the bad faith or false economy of its mem•
bets, its own financial honor is unsuited. It has com
mitted the mistake of making its "Incontrovertible pro
mises a legal tender, hut it has never taken advantage of
Volate its engagements by
its own legislation to lessen In the hands of the holders
the value of its securities or
covert repudiation. In the des est hours of the rebellion
it filtered not in the observance of its contracts. Shall it
falter now, win n its ability,to pay to the uttermost far
thieg, even without oppressive taxation, cannot ho ques—
tioned?
The importance of the restoration of the Southern States
to their proper relations with -the Federal tiovement
cannot be overestimated. A. -curtailment of the
currency and the maintenance of the public: faith
are not all that, is required to restore the COU
try to perfect l
financial health.,. We need In. , addl.
tion to these, a united country—united in fact ' , towel as
in name. it may not be proper for : the Secretary in-this
report to aiscueB the measures regarded by' him *as best
calculated to bring about this most desirable result. This,
however, he feels it ; to,be his duty to say, as he substan
tially said in his last year's report, that the question of
reconstruction, as a purely financial question, is, In his
Judgment; second In importance to none that Congress
will over be called upon to consider.„ The great staples
of the South have for many years constituted& largo, per
tion of our exports. But for the cotton:held-in that sec-
tion at this close of the rebellion, the ' foreign exchanges
would have been so largely against the United States that
a commercial - revulsion would have been imminent, If
not unavoidable. Even in the deplorable condition of
these atates, last year niers thantwo-thirds °four exports
consisted of theirproductiona,andit is the crop of the Pre
sent year—small though it may be—that is to (MVO us from
ruinous indebtedness to Europe. It le of the greatest mo•
ment.therefore, that the productive power of the Bentham,
States should be restored as rapidly as re ; possible. Little
progress bas been made in 'this dhection during the peat ,
two years, and no real progress will be made until their
political condition is determined r by their restoration to
the Union with ail the hts end pallier of othehStabis
under the Constitution. rbeVerret i g glee n0!;.4 gip to
this subject for toe piwpose bt lie attention Of
Congress to it. This Is unnecessary. t is absorbing tlia
public attention, and the further action of Congress in rir.
tarn to be watched by the people with intense
tifit4o.cr ('pen the judicious settlement of it depend",
in a great degree, the national prosperity. TO views
presentee by the Seeretery, i t i r
at t tag e ig .t t,i i t e hia tag
re gt r tio a r r oreg Y ttr y w ele . 1s&;, the thepresent
tined the
491Joadmg anguagetaregattl„to, 1 7:1'11 e AMYI a
Vl l l4l4 , :dtftZtt,i ~gittoiait. 64' v'e'iri4B.t
securities from taxation is by many persons considered
an unjud disoripobtafipa IA their Laver, affprig, way be
THE DAILY EVENING BULLETIN.-PHILADELPHIA, WEDNESDAY, D.ECENBER
.0867.
mode to (ndtme Cowers to legislate uPon)the subject bf
their taxation. Of course the existing exemption front
State and municipal taxation of bonds' and occultist, now
outstanding will.. be ecrupulously regarded..., That
exemption „ is. a part Of the contract under which' the
eectuities have been hinted and the money lottnett there.
on to the Goveenment, and It would not only he nneetniti
tutienal, bukain•eacit of the public faith of the etatibn• to
die regard It. Zl would alto, in the judgment or trio Sure.
torY, !Jemmies, for Congress to grant to, the Retest the
power Which they will not pOSIICHS unless conferred by
• express Congreentina enactmeut, of imposing taxer upon
securities of the United tltateg wince may he hereafter
bolted. Such !sinners •in any form would result
' in serious. if not fatal, :embarrassment to the Govern
ment, tied, instead of reneging, would eventually injure
the meat masa of tne people, who are to boar .theittull
proportion of the :burden- of the public debt, This in ,
subject in relation to which there ghoul(' be no difference'
•et opinion. ItVery taxpayer is' personally interested In
having the teiblieelebt placed at home. and at a lowante
of Intereet, which cannot be done if the public weenies
are to be enbject to local taxation. Taxes vary largely in
different States, and% different countiet and eithil of . tiro
'tame Stite s end arestiverys) hereto high that, unlege pro
' teeted nertinet (hem 'the bonds into which the present
debt meet be funded cannotbe distributed netting the
people, except income fevered localities, nukes they beat
a rate of interterno high as to mnke;the debt severely op
ermine!, and to render, tine pro s pect lie extinguishment
weltpighliopeleen. Exempted from local taxation, ;the
debt can, it le expected, be funded at nn early day at live
per cent.: if local taxation is allowed, no considerable
portion of the debt which falls duo within; tha next four.
years can be funded at home at lege than eight percent.
The tax.payere of the United Staten cannot isliord to have
their burdens them Increaged. It is also evident that the
relief which local tax-payera would obtain from Govern,
ment taxation, as the remelt of a low rate of interest on
the, national eeeurities would at leant be
an great as the increase of local taxes to
`which they would be eubjeeted on account of the exemp•
don of Government neuritic,; while if those securities
should bear a rate of interest aullletent to eecure their
pale when Puttiect to local teem few, it any of them,
would long remain where those taxes co uld
. reach them.
They wonide bet rapidly transferred to other countries,
into the hands of foreign capitalists, and Limiest last the
burden of paying a high rate—el interest would be loft
upon the people of this! country `Withoutcompensation or
. • .
,--The views of the SliferetarYS th , ne expressed, have un- •
'''tiergetto no change, but the exemption from taxation of
any kind of property's by which special privileges are, or
teem to be, granted to any clue of citizens, is odious to
the heavily-hardened mama in all countries, and is
especially so in a Republic like ours. local taxes in all.
the States are heavy and no matter what the law .may
say upon the sub ject, no matter what the contract
may have been under which they were negotiated,' there
is a general eentlment among tint payeris that. the exemp
tion of Government boude from local taxation isnot ex
actly right, and that It ought to be income way avoided
in future iSilll4. The Secretary has no hesitation in ad
mitting that be bin empathy with this sentiment.. The
tilt:teats. in the way, however, as hie been suggested,
*riles from the fact that if the bonds hereafter to be is
cued were to he subject to local taxation, very few would ,
be beld where taxes are high, and there would be a con. •
'tent tendency to a concenti ation of them in the States
and counties andAties where taxi.* are low, or in Nolen
countries, where they would escape taxation altogether.
It is a matter .of great importance that the Government
bonds should he a desirable invenment in all parts of the
country, and it le obvious that the States should be in
some manner coMpeneated for the right now denied of
taxing them, en other kinds of property arc taxed. After
giyuig the subject careful conelderation, the Secretary
can suggest no better way of doing it than bran issue of
bonds to be known as the Comsoltdatedl)-bt of the United
States, bearing eta per cent. Interest, and having twenty
years to run, into which all other obligations of the Gov
ernment shall as rapidly as posslble be Converted;—one
sixth part of the interest at eech semi-annual payment to
be reset veil by the Government and paid overto the States,
according to their reputation. By thm means,all the bonds,
wherever held, would be taxed' a li ke; and a general •
distribution of them he secured. . State, taxes, including
the levies, for county and municippl purpose', now, as
a general Gape, exceed one percent., but wheu the debt.,
incurred for the payment of bounties are paid (and in
most of the .Statoe they are already in the
. process of rapid
extinction) and economy is again practiced in the ad
ministration ot State engin), title indirect aseemstnent tell
be quite likely to equal the. tax assessed upon other pro
ty. If the debt to be funded shall amount to $2.00,"
maw), the amount to be reserved and paid to the States
nnnually would he s2o,eatheu, which would give to each
of the titatee, In geld. as nearly as can now be eetitnated,
the following sums'. to be reduced of couree with the re
duction of the debt.
_Maine ..trf..5.609 ;6
11121F-.Zeilunetts.. 748,370 431
N. iltuor.sliite., 10.1,411 171
Verm0nt.....,..1K02009,
Conneeti t.t2,410 01
I:hode island, 107,174 16
New York 2. 30L82589,
New ..I e 412,466 Irk
Pennsylvania,. 1.70 , 3,047 12
Michigan.
n inoi...
Vt, I consia.
I iwa
Inneeota
ourL
Kentucky
renne . rBce
Arkansas.— W7,:259 its
'I he advantages to be derived from this, plan are PO ob
vieum as not to require discussion. It would secure, as
has been already stated, such a distribution of the bonds
throughout the States and counties and cities as could
nit be exf ected if local taxes should be imposed upon
them. It would create an interest in the bonds in States
the people of which arejurtly responsible for the debt. i
but where early and complete restoration to the Union is I
eo dssirable and important, and would give to them'
needed aid in their efforts to build up again their own '
prostrate credit. It would put an end to all discussions i
and doubts in regard to the kind of currency in which I
the bonds are to be paid, to all complaints of exclusive
privilege', and place the public credit on a basis worthy
a nation whose resources, young as it is, are second to
those of no other nation, and of whose future resources
the present are but an indication. :
The Londe, the issue of which is thus recommended,
- would be six per cents to the Government and five per
cents to the hoidens, which la as low a rate of interest as
can be expected to prevail in the United litotes for many
Sean to come. Of the practicability of converting the
outstanding obligations of the Government into this con
solidated debt at an early day, at no considerable -ex
pense, the Secretary entertains no doubt
It is the efore respectfully recommended that the act
of March Ks", be so amended as to authorize the Seem
-tary of the e ury to issue six per cent gold bearing
bonds, to be own as the Consolidated Debt of the
United States, liming twenty years to run, and redeems+.
blelf horsy be thought advisable at an earlier day, to be
exchanged at pot for any acid all other obligations of the
Government—one-sixth part of the intereet on which, in
lien of all other taxes. at each semiannual payment, shall
tile reserved by the Government and paid over to the
States aecorditie to population.
The following is a statement of the public debt on the
let of July, IStil
I , EIVT ISZAT:IN6 INTTII7F.T.
6 per cent. bandit $1:43,431,350 00
6 per cent. bonds 01'1%7 and
I; pCrcent. bonde, 1861
6 per cent. 12U bonds
Nary pennon fund.
$1,637,530,641 SU
pElrr 11EATUNG (,1I 111 v INT1.111:51.
ti per cent. bonds 14,70:L0W 00
year compound interest
n0tee....... ..... ......... En:194,430 00
3-year 7-30 4.3F0347,42.3 (0)
Matured debt notpresented for payruent
Fractional currenc3
tiold teruticatt.B . depoAt 19.::117:5241 00
Tntnl debt...................... ....... 2,V2,11+9,215
linonnt Irenrury.cuin.. P:8,..41i..6:38 02
• " " " Currency.. 71,979,564, 77
Amount of debt, leas mall
lu Trettaut ........
The following is it. statement of the public debt on the
let of November. 1667; •
T.P.OT 1:11A11 - NO COTS INTEREsT,
per cent.bonde_ tit 186,845,850 00
6 per cent. bonds of 1867
and 1868 14,0 0 ,941 80
6 per rent. bonds, 1881 8.83,675,600 00
6 per cent. b•W bonds , 1.267,698,100 00
Nary pension ..... 13,000,000 60
• t• ----7- $1,776,110,981 hi
Mier RE.LILINO OUNNENCT INTIOU4I.
6 per cent. bonds..
.....,... 818,612,000 Ou
3•year compound Interest
notes .. 50,558,1;40 00
3.year 7.30 notes 831607.700 00
3 per cent. certificates . 11,560,000 00
----- 5426.768,610 hi
NIATTIINT) DENT NOT PRINENTTD TON RENT.
3-year 7.30 notes, due Au.
gust 15, 18187. ..... 8,371,100 00
Compound interest notes
matured June 10, Jfly 15,
August lb, and October
lb, 1867 ......... .... 9,316,100 00
Bonds, Texas indemnity.. 263.000 00
Treasury notes, acts July •
17, 1861 and prior thereto, 163,661 61
Bonds. April 15, 1842 51,061 64
Treasury notes, March 3,
1663. .. . ..... ...........
Temporary loan.
Certllicates of indebtedness
8453,240 00
4,168,375 56
'34,000 00 •
18.27.531 83
TRIIT 11ENIIINO 1 , 40 4 - NTrnEsT.
C. S. notes.. 357,164,844 (6)
Fractional currency, . 59,706,638 89
Gold certificates of deposits 14.514,200 00 A
402,385.077 59
Total debt 2,625,' 502,840 02
Amount in Treasury, Coln. 111,540,317 35
Cur
' reney........ ..... ... . .... 2,458,080 67 '
133,998,32 02
Amount of debt,less cash in Treasury.. 1,401,50.1.450 00
The folloxving is a statement of receipts stnd• expendi
tures for the fiscal year ending Juno 80, 1867:
Receipts from Customs $176,417,810 88
Landa..,,, ..... 1,163,675 76 • ,
Direct Tax... . 4,28U,233 70
Internal Re-
venue 260,087,537 43 '
. Miscellaneous •
sources 48,814,852 60 . •
$490,634,010 97
Expenditures for the civil _
service..., . 94110,037 27
. Peaslona and. , ,
Indian' 24579,084 48 '
• War Depart. , •,••
markt. ... • ' 96a31.413 63
. Navy liepa:t-'•
• went........ 81,034,011 84 .
Interest on
the public
.• ' :. J . • debt......... ;143,781;691 91 • , ~
.!. • . '",,... ' ' ,', 4.• • , 9;8,799,1119 83
• _
Lonna paid
Receipta from 1081113
' lledUCHolll,./01:7..!
The following is it'iititement of receipts And el l poncli..
tures for the quarter ending Be s
tember Ni t 1867: .5
Receipts from Custome 48,081,907 a i
' yuld., . . 287,400
i t
treat ia311.1.., 647,070 43
Internal rave-
DllO 63,784,027 48 I
Miscellaneous
,: acjimc es. ,5 , .4.. ; .§ 111i.3t11.41P 62 r '43 '
' ). . 1 , -$111461; r
Exponditorga , for the civil
service...—. 13,14348 08
Pensions and
4
- ' $
tir I AVILOW . “ 1 0 4 ,K 47 . 1 i Ut
: att. i4l ~,
moat mysta;f3s6 as - i
1 4 16‘7 Depazt
meat 6,676,704 67
114 00 4 141 1 :::,,e417'
.0.. , . ;,„ A to €O4
X 6014.16 Wad. ~,,, .1111,11.1111.40 .119•176,868 81
Iseniing a surplus of enttniatedreceipts over
eetimated expenditeree of ' , "1,000,000 1$
The foregoing snumatea as, e made on the general ave
rage of the receipt, and expenditures for the past nine
months. The !secretary le hop-ful, however, that Con.
grow will take measures to largely reduce expenditures
in all brunches of the service, so that a steady reduction
of the debt may be continued.
In retard to the national debt, npd the necessity of
commencing at once the payment of it, the Secretary, in
his report of 1865, remarked ;' '
ilVerneed not be anzfoua that future getterdions 'shall
beara the burden with us. Wars arc not at an end. and
posterity will have enough to do to take care of the debts
Of their own creation."
"In a metier of so great Imwtance is this, expert
s
ilent/rare out of place. The plkin, beaten path of expo,
nonce is the only cafe ono to tread." ! -
"It in of the greatest importance, In the management
of a matter of so surpassing interest, that the right start
should be made. Nothing but revenue will sustain the
national credit, and nothing less than a fixed policy for
the reduction of the public debt will be 'likely to prevent
its Increase."
The right start in the direction suggested hag' ilen
made. Hine° the first day of September, 1885, the' debt
hair been reduced esieltri,l2l .43. Nov, if wren a reduc
tion could be made while the industry of one-third part
of the country, by reason of the wee and the unsettled
state of its political affairs, has been exceedingly de.
pressed, and the other two thirds have, by no means, ex
erted their lull productive power; if such a reduction
could be madenotwithstanding the liberal miscellaneous
appropriations by Conerese, the payment of bounties, and
elle greet iorpense of maintaining large military forms
upon the frontier and in the Southern Stake, can there
be any good reason why the reduction; so successfully
commenced ureter, the moot innuspicioun circumstance's,
• should not be ear/termed eteadily- and without interrlip.
lion until ee ere dollar of It lo extinguished? The
Secreeen• indolgeee • • •tho. hope that the. policy
• which fbes been .inaugurated, and which,
in 'Lis ' e jodkinent,. is so essential to the na-
Lionel credit. r; not to The preservation of republican in
stitution., will not be abandoned. Old debts are hard
debts to pay. The longer they are continued the more
, odious do they become. If the present generation should
threw the bui den of this debt ellen the mat, •it - will be
mete likely to be handed down from one generation to
another—a perpetual, if not a constantly increasing bur
den upon the people. Our country is full of enterprise
'Louisiana 9431,540,7: . and resources. The debt will be lightened every year
. 1:43.X8F , , 5:15,772 49 1 with great rapidity by the increase of wealth and pope-
Alabama ' 59J,51253 lather. With a proper reduction in the expeneen. of the
Mississippi 471,7e2 see Government, and with a revenue syetem adapted to the
lieorgia. ....... 648,915 9e industry of the country end not oppressing it. the debt
Florida..... , e , Kee' go ' may be paid before the expiration of the present century.
South Carolina. 431,905 13 The wisdom of a policy which shall bring about such a
North Carolina. 613,634 24 result is vindicated in advance by the history of
Virginia-- .. 7310g 3 ssnations who..e people are burdened with inherited
West Virginia, 249,04 - 11 debts, and with no prospect of relief for themselves or
Maryland 431.6e0 53 their reeterity. In the appendix to this report there Will
Delaware r,:a,r173 41 be found a table prepared by a very intelligentgentleman
ganea,.... _ , ~
~156.,3,53 ee of Masi artier-elle, which shows how soon the debt may
el. ;
Nebraska...... 'll6 86 be paid by the regular increase of population alone, at the
California...... :1-33763 14 1 rate of three per cent per annum on a recibir annual
Nevada ;1-tO4B 73 Der caplet tax of eight dollars and sixty cents, selecir is
.Oregon - ........, 4.1,000 76 now much beiow the preirent rate.
_ 13y a resolution approved hebruary ifi, 1847. the prod.
20.000,00 u o n • Pions of the joint resolution to proVide for• codifying the
- _ -laws relating to customs, approved July 26, letie, were
continued in force until the first day of January in the
year ISt.B. ,
Under the authority and direction of these resolutions,
the Department has caused to be'. prepared the draft of
an act embracing allprovisions deemed necessary,
for regulating the foreign and . coasting trade, the
assessment arid collection of duties en goods im
ported-- ;rem- foreign countries, ^ and for censoli.
dating and perfecting the - navigation - laws. e. This
draft was trausinieed to the House of Representatives on
the oth - of Mardi lac& and the report accompanying it
gives a general view of its scope, and an outline of the
most important changes in existing laws proposed to be
made.
The laws relating to the foreign and coasting trade, and
the collection of the revenue from customs, are now diems
‘seteused through many volumes of statutes, and have been
so frequently modified by amendments of their original
provi. ions, that on many points tt• iss difficult for mer
chants, so well as for the officers whose duty it in to con
strue and execute them, to determine sweat L 5 the law In
.
force.
It Is of great importance that laws regulating into
rests so various and • vast, should be so syste
matized that the • rights and duties of the classes
whose interest are most directly affected by them' may
be clearly apparent. Their present complication is a
source of -serious value rossment to the mercantile com
munity, and it is not lees embarrassing to the otheens of
• the customs, a hose positions demand wompt action and
an intelligent application of law to facts as they arise-
The Department hiss endeavored to obviate theee eel
barraermentr, as far as practicable, sby regulations and
instructions; but these measures arc only a partial re
medy. and fall short of supplying the want of a uniform
and consistent code. In view of these considerations, it
is hoped that the proposed act will receive the early at.
tention of Congress.
The Secretary respectiully recommends the reorganiza
tion of the accounting Mecca of this Treasury Department,
so Its to place this branch of the public service under one
responsible head, enrording to what ISeCIIIII to have been
designed in the original ergeuization of the Department,
and hollowed until the increium of liminess led to the crea.
ties of eke Mace of Second Comptroller, and subsequently
to -that.of Commissioner of Customs. There are
now three officers controlling the eettlement of accounts,
each independent of the othere, and, as a consequence,
the nurses and decisions arc not uniform where the same
or like questions arise. In the judgment of the Secretary,
the cepcentration of the accounting °elves undo
one hft-• d e ould . eecure greater ellicesncy, as
well as greater uniformity of peactice . that-can be ex.
petted under a divided enperrision . It is believed, also,
that it would he ads'entageous, to relleve,the Commis-
,lonerof Custom' of the duty of settling accounts, and to
confine his inhere to the eupervision of the revenue from
(erste mr,13011" euteciently large to demand his whole time.
It is therefore recommended that the °Mee of Chief
Comptroller be crested. having general supervision of
the accounting °Weer, and appellate jurisdiction from
their decisions; to which should be transfened the duty
of examining and countersigning warrants on the Trea
sury, and of colli.cting debts duel the Government, now'
constituting a part of the duties of the First Comptroller;
and that the aditietnient of accounts pertaining to the
customs be restored to the latter "Mee. •
' The Secretary also renews the recommendation con
' tained in hits last eternal report, of a reorganization of
the len eaux of the Department, and most respectfully
end earnestly eolicite tor it the I assemble action of Con
gress,. The compensation now paid ii' inadequnte to the
..exeices performed, and 'simple justice to gentlemen of
the ability and character of those employed in the De.
eart men), requires a liberal addition to their present eOlll
- ince rho rates of compensation now allowed
were established, the duties, labors, and responsibilities
of the litireaux have been largely increased. end the ne
cCteitry expenses of living in Washington have been more
then doubled. •
The report of the Director of the Mint contains the
usual lntortuation relative ,to the +coinage for the past
year.
The total value of the bullion deposited at the mint and
brunches - during -the fiscal year {vile $41,e93,100 76, or
which e40,06e,e00 06 was in gold and $1,110.3,900 10 in silver.
Deducting the redeposit, the amount of actual' deposit
was $34.6.17,048 39.
Iho coinage for the year was, in gold coin, f1rA1,21.7„-
- 187 60; gold bars, 8311,621,691 44; silver coin; $989,871; silver
bare, 3576,MW 18; nickel, copper, and bronze coinage (one,
two, three, and tivecemt p1ecte),e1,879,540. Total coinage,
0i1,01.5 , ,598 80. Total liars stamped, $l2 197.514 50.
'file gold depoeiee of domestic production were, at Phila.
dolphin, $2,418,19, 89; at San Francisco *17.936,169 40; at
New York. $10,T20,821 56; at Denver, 19130,669 70. The
surer deposits were, at „Philadelphia, 837:199 72; Sat'
Francisco, 19744,387 48^ • New York, 564, 893 19. e
'rho gold and silver deposits of ftereleti production Were
82,674,619 46.
' The amount of gold coined at Philadelphia was 0110,-
072,060 Ye: at San Frauciseo4llB,726,ooo; of eilver,at Phila
delphia, 8857,490 118; at San Francisco,. 5780,048. 54 I of
breeze and nickel and copper, at Philadelphia, $1,819,-
610, '1 otal number of pieces struck $54,111,384. _
A valuable site for a branch mint in an Francisco
has been purchased during the past year, and an addl.
tional appropriation will be required for the purpose of
erecting a mint building complete in all its appointments
upon the tactile-coast
The Director of; the Mint recommends the opening cif
tile branch mint.at New Orleans, epee an economical
basin, for the 'coinage .of nickel-copper pieced. Thu
branch mint at Charlotte, North Carolina, is being re
patted and 'placed lo condition for melting and assaying
the precious metals. It will be unnecessary ever to exe
cute coterie° at Denver, or Charlotte, and the bronchi
mint( at those points ahouldhe converted into amity of.
trees and'thue expoulleri reduced. • • ' .
Tit Director also recommends the repeal of the coinage
ell argert he tale en bullion, tied the redemption of the cent
coinage.. his remarks upon. international coinage, and
his suggestions for the protection, of gold opinefrenyile.
basement, are worths- of careful consideration. t i
An appropriation of ten thotwand dollars was made by
Cougreas on the Men ol July, 1806 e to' enable this . Seer°.
tar.Y of: theneasury,te collect- ireltable statistical infor
mation concerning the gold and silver, mines .of ,the
Werterribtates , and Territories. Under the authotitY
thus conferred uon this Department, Mr. J. ROSIII
Pl'Oe'tle was appointed apecialcommissioner for the min
eral regions svest of the stocky Mountains. His .prelimi,
nary report was submitted to Congress on the Bth of Jan
miry, 1867 The districts of New Mexico, Coloradd,
• Montana, inotiti and MintiestaiS -- Wer Imbrued to - -Mr.
Jatneti W. Ta log e Wholte irepott. ware 804'41.40d Othe
• 18th "of ' February', lEM37. "eel oodetell de InforMatlentree
specting our mineral resources, the nature
and extent of the metalliferous veins, the mode and
cost of working the mines, or the yield of bunters;
lid previously appeared in form. Little,
i faa
known of the local rule, en tegulations or "tho praii al
etlect of federal legielatien o the eubjeetof ' the " - mit cal
lauds. The value of the information contained in these
reports has been attested in a marked degree by the
.PUblic9 l YryitliAqpLouthr bay° l'ot!,thciiivoli through.
0 40 1 °A It llo RAW KWh t pittri f lLPETlr mid increat
sing inform' has been man eis exploration and
development of our mineral regions, both seat 7and west
of the hooky Mountains. As stated in Letters of the be.
partment, dated JalisulLette o r tw i t/ olio ., keg ,
reports were merely ele ' . ;Son
wade bY the appropriation act or alai
um . 9r icon'
tinuance t this service..the special commitudoner. Li*
.lirowne. ii, . ota u during ' the present year in a
}MANIAI O
i
wimrtida 4. ,_BAvoled extensiveiy ol'ef
the principal minips regions ofxMo ?settle slope, and colt
- lected mut& valuable informanitia". "Fire scope of his in.
vestigatioas, • reaching from British 'Columbia to th 4
Mexicali be nit r was too e ve to permit of a mon
r illitt ti ' . 4 Agin
secure a
ermined!' and statia Maui to ald ape *mignon
of hltd4tiga, gposAil isitruotioatt wow alve•to , ttiva
1,449469 by
M 36.727 hi'
472,916 81
1.."//0 0 )2 56
521,Z,54 49
4`.4159
774840 91
575,1531 '74
51.0.3t45 45
to - Ji.l4'; 55
MIME
~a;~o zsu ai
. .
1,127,531,t00 00
13,04)0,000 t.O
MUT REARING INTELEST.
rA)
‘ . 2.)4,14n,523 112
2.511,5.00,013
746;350,625 114
640426,210 29
105,928,615 65
Reeelptß from Imo
=MI
, • . •
The Secretary CPtirrintes ti/itt the receinta end oaPt'ude
tnrcal. for the three quarters ending June SO, 1863,1011
as follows : . •
Recciptil I rem Customs..." $1 1 .64 00 ;0 00 • ' '• "
• Lando. . .... 71)CS000 „
• Internal reve."; • '
nno 165,000,000.00 r \ •
• ' Miscellaneous
resources ...!.1± L OIN),000 vU OOO,OOO .
Time spen ditiires for the name Period. AC '
cording to his estimates, will be--
Yor the civil service...... .. :37.000,000 00 -
For pensions and Indians.... ` 21,000,000 00
For the War I)epartment, •
including d!24,1;tx.1,0e0 for
bounties. . .. . ...• • • 100.000.004 00 •
F o r the Pjavy DopartMent.. 22,000,000 00 •
For the Interest on the pub.
tic debt.. ............ 11000,000 CO •
205,000.000 00
. --
Leavlag a surplus of estimated receipts •
' over estimated expenditures of 1.000.00 n 00
The receipts and expcmiltbren for the next fiscal year,
ending June 1E69. are distirrinted lui foliolvs
-Receipts trete Qustorns $140,e00,000 011
Beecham from Internal
revenue.. . ........ . 205.000.400 Ott
Recelptit from I.snds - • 1,000.00000
Receipts front Mitcellaneous •
nottrces oo,oUsb,oou oo
us
The expenditures for the Bathe period are uooLooo,ouo
estimated as follows:
For the civil service....... $51000,000 00
For pensions and .• 01,000,000 00
For the ‘Var Department.
eluding 0.25,00),000 for boun
ties. .. VOOOO.OOO 00 C
For Sheli:ii;iy 30,000,000 00. • •
For tho interest on-the Pub:
lie debt 100,000,000 00
62.1,XL1A15
b,:07,595 PJ
419,507, u 72 52
1 k 0,9.99,201 79
I In writing. interesting peon them the necessity cfseautfort
I. in the reception of unverified Rtutementa from interested
parties, and the ittapoftence of accuracy end a'Critical ad
herence to the faetein ttWr oWn. Through the services Of
these assistants, vrhelhave Visited in petson neatly all the
districts described. he has been enabled to obtain detailed
reports on the products popplition and characteristic
features of 'LIMN Western lildntsMa, Idaho. Weighing=
Territory ; Oregon. Nevada; Califortia, find Arizona. The
adjacent !Metall territories in , which American capitalis
invested are also briefly' noticed. Partieulen attention is
given to the topographical. geolbgical and 'mineralogical
feature' of ~, : each St ate .1, and, Territory; to
the variouseYstemis , f willies; the cyst of
• labor and production; t 0 Yield of hornet Curl loss
in reduction: and, frieddentally. to the climates,. facilities
for communicating agricultural capabilities and Indira+.
loony to immigration, and the Inyestment o f capital. An
important featere 'cennecned , with the deVeloprnent Of
the mining interest is presented in the tabular atatementa
accompanying the report. , While the
of t h e ta KT
rally favorable, and the , permanency or the m aerial
Posits attested by ' Indisputable' evidenie, the- lofts Ana
tatted in the treatrhent 01 the ores is represented seise'
rious drawback to the prosperity of this great interest.
On the Comstock lode, where gold eking thiefly pl an
upcombined form, the pereetithge of lose on that metal is
comparatively Small; but the loss of silver, Is so, great as
to su
um est the necessity of Rome means by .which the el.
trnor hoary, drain n the productive industry of tile
country may be arrested. With all iMprovernents derived
ftom seven years , experience, ft appears that• the even-age
Cield of all the,ores worked at the present time from the
omstock lodtidoes not exceed 65 per cent. of the assay
value' The net product this year will probably arnoleat
to sl7,l,oU,Oul3—showleg an actual loss to the country, on
this single lode, of it1i,253,856. of which, by a, more ocm:to
mical system of, working, 1a large proporttOn might be
'Saved. 'ln other districts the loss is greater or lees,
accordin to the character of the ore and the faoilltiee for
its reduc on. Annotate our total gold and silver product
to be $75 000,000 for tho ealender year 1136;, ft is estimated
that the a egate loss ' On the production of this anfonnt
of bullion oes not fall short of $25,000,000. I.ndian,hos.
Mitten an other causes have retarded the progre ss Of
the' Mini g interest in Montana, Idaho, Coloradd awl
(m y .
-.Ariz ; but, under the Most: ,favorable circumstance',
laugh a drain upon our resource! as that to which atten
tion is now galled would appear to ,demand the aerimia i
consideration of uovernmen..
The Speeial Comninsioner recommends, as the onlj'
possible remedy, the cetabLishment at some . central
pojnt. w est of the Rocky Mount-alum of a national mining
school, organized neon comprehensive principle), anal fi
goes in its general design and scope to the greed mining
schools of Lurope. By the concentration of scientific ex
perience upon the proceeees of wining and Inetaliorglf,
and the analytical and working tests that could be ap
plied to the different ores, where individual enterprise
; hag so long and so signally failed, Atte believed the results
would he beneficial. Wlthogit assuming to &mama 14 ,
what means tide Abject could he best accoMplished thb
Secretary , deems it due to the enterprising pioneo l ament
West, who have , opened up a vast empire to set
and civilization, that their , wishes, as
represented by the Commissioners, should 'Meet
with the most favorable consideration, Whatever , cati
be done to promote their welter° will be stational benefit;
and none will question that the tendency of. scientific in
stirotione is to strengthen the bonds of interest and sym
pathy between a people separated by a diversity , of pur
suits and the eircumetances of their geographical position.
An interesting and Instructive report, by Mr. Taylos,
upon the situation and prospects of gold end silver reining
east ofe Rocky Mountains, embracing genie notice of
the Alio entail and Canadian goldfields, la addition tb
the min ing statistics of Now Mexico, Colorado, and East
ern Montana , will also be presented t, Congress. ..
The report from the Eight-Moue Board, with estimate s
of appropriations for the year commencing July I, latkii
herewith submitted, is recommended to the favorable
consideration of Congress. The progress made in reno
vating and restoring the aide to navigation,, so seriously
injured during the late war, is all that could be expected
from the means and time at command. •The establish
ment increases with the opening of new aliennale to com
merce andAhe rapidly increasing popular ion orlhe coon
try, and Congress may rely on the judicious application
of all means appropriated to that end. . l
The operations of th e Coast niirvey have been thalinued
dieing the pnstyear with accustomed vigor, and progre4
has been made in all portions of the coast heretofore pro
ceded for by appropriations,. The estimates for the next
fiscal year have Luta-prepared with a view to keeping up
the work efficientlyon the scale to which it has been
developed by the de'ninds of navigation, and accompany ,
this report. •
For the collection of the 'revenue from customs in the
territory reeerrly acquired from }Media, until permanent
arrangements shall-have been made by Congress, espe
cial urgent of the Department was despatched in August
last to bltka, in company with the agent designated by
the State Department, to receive the formal transfer of
the territory; and, for the further 'protection of
the revenue, es well as to obtain information tp
guide in the • establishment of ports ands collection dis
tricts, the steam cutter Lincoln was ordered to extend
her cruising limits to these pneseesions. An otticer of the
service, familiar with the coast, accompanied by
rs several
office of the Coast Burvey,--was sent from the Depart
mein, with detailed instructions, to take charge of the
vessel for the cruise. A general reconnoissance of, the
coast was ordered, including soundings, location of Hittite,
and ascertainment of available channels of commerce.
Attention was also especially directed to subjects of
scientific inquiry suggested by the dmitheouian Lod
tution.
The steamer sailed late in July, and a full report of her
operations is expected within a brief period. When re
ceived it will be promptly communicated to Conga e.s,
with such information as the Department has been able
to collect from other sources, and suggest one es to the
creation of collection districts for customs and internal
revenue.
The Revenue Marine consists at present of fort' three
vessels. comprising twenty - five steamers and :e ighteen
sailing VCMISCIN of which seventeen of the former and six
teen of the latter are employed on the Atlanta waist, two
of each description ou the Pacifica and six steamers, each
of over five hundred toes burden, on the Great Lakes.
live steamers, of three hundred and fitty tow burden and
upwards, have been sold, in pUrsuitnee of the power con
ferred upon the Department by the act of-April
2,e, 18613, and eight' eailing vessels, ranging in
burden from one hundred and twenty to two
hundred and twenty tons, better suited to the wants
of the service, have been constructed. Four of the steers
(ere now now in commission'are small tugs, employed
two at New York one at Boston, and one at New Or
leans) in a special boarding and inspecting service.'
These are,tinuid to be so serviceable that others like
them will no employed, as occasion may couture, in place
of the larger vessels not so well suited to the service,
which will be dis Posed of as mu)" be found convenient.
The expenses tif the service have considerably increased
within a, few veers past, owing not only to the increased
number of vessels which the chauffedences of our com
merce required, and to the consequent employment of
additions I officers and men, bust chiefly to the unprece
dented advance in the price of all necessary supplies,
and consequent indispensable increase in the pay of o f
firers and men. since 1861 these supplies have advanced
at rates varying from thirty-three to one hundred per
cent. All there etcpensee aro now ,peld • from
the general customs fund, and arc • Melted in
amount , only by the direction o the Secretary.
They have now attained such a magnitude as to make it
desirable that Congress should signify its views is regard
to the subject by providing a. specific appropriation for
them. A bill ter that purpose was presented a few menthe
since by the Depurtment, which received the approval of
one branch of the legislature, but did not become a law. -
The exrenses of the serviee will form distinct items in
the regular estimates to be submitted for the coming
fiscal year.
'the expenses of tire' Diarine Hospital establishment
continue quite large, nonvithatanding peraLtent efforts
to secure economy. The reeelf ts from the tar are still
found insufficient to meet them, and it win he necessary
to provide for the deficiency, as heretofore, from) the
public treasury. It is suggested that, in accordance with
the example afforded by the military establish
ment, authority , may ha given for the annual
OPPropriation of so much of the proceeds of iiIIC4, penal
ties and forfeitures finder the customs law* as may
suffice to meet the deficiency unarm ided for by the tux.
Efforts for the prevention and detection of smuggling
have been actively continued during, the year. with con
elderable success, at a comparativel y moderate expense,
and without any charge upon the public treasury, the
proceeds of fines, penalties and forfeitures having proved
ell flicient to sustain the charge and pay into the Treasury
a surphubsd more Bum $300,10011.
Quite n large amount of stock of private-corporations is
held by the Lnited States, in the custody of the Depart
ment, which lea covalent source of embnrrassineut to the
Goverinnent,and to the respective companies. A schedule
is unnexed exhibiting these stocks, and the mariner in
Ni Lich they Were obtained. it will be observed that they
were acquired by subscription finder epecial authority of
law in aid of projects of Internal improvement, • How
ever proper and beneficial such measures May have been
at the thee of their inception, no good. purpose can now
be observed by longer retaluing the interests thus ac
quired, and it is recommended that afftheirity be con
ferred by law for the tittle of them. Such a course, it is
believed; will be altogether acceptable to tiro various cot.
Forst ions. ,
A portion of the first annual report of the Directors of
the Bureau of Statistics is submitted herewith, the,entire
report being in course of preparation for separate publics,
tion. It contains a survey of the' operation* of the, Bu.
reau ; a careful analysts, illustrated by numerous tables,
' of our commerce during the past year; together with late
retinue of population, hamigra•ion , mauu.factures,
miring and agriculture. These subjects are partle,ularl i
interesting at the present time, and. the report of the
Di
rector cannot fall to attract the attention of Congress an
the people. . , . • .
Front the report of the Third Auditor, to which utter.
tin is invited, it le apparent that ,' a: change, gthould, be
made in regard to the adjustment and setUement of this
war claims that come before his Burealitlthat &period
should be fixed within which dahlia should be ,presented,
and that measures ghould 'be adopted to:petipetuate the
testimony in &wee of cla.uns that are disallowed. Even.
now, while all the facts are fresh and atteinilble, fraudu
lent claims are frequently presented; and; when, by "e
lapse of time, it will be difficult, if not iinpossible, to ob- ,
tale; testimony iii regard to their true character, fruedu
lent claims will be quite likely to incrolumni numbers and
The report of the Treaanrer, calla Ring, .aa it does, the
condition of the Treasury and the extent of Its opera*
theme during the past year, and presenting views upon
some interesting matters by an officer. or large experi
ence, merits especial attention. The reperts of the other
Bureau officers are also of unusual interest and velure.
The worts upon the public buildings throughout the
'ccuntry has been prosecuted with unusual °notify. It
h ' s b ee n the aim of the alleervishig Architect, under the
direction of the Secretary. to have all poetic buildiuell
constructed in the lutist iftibatantial manner and con
pleted- with a view_te cconeiny— as rapidly as possible.
The rapidity with Whiclithe north wing of the Tniasury
Is Rpm/aching completion must be gratifying to Con
, consi d erationThilDeoo tate has referred to this Depart
ment, for the offielatreeort of the proceed
higs of the "bitterns tional Monetary tionforenee" held at
Parte in June and July of the present year, and also the
'report'of, birotiamuel li. Regalia!, the delegate in that
Conference - from, the United States of America., Thik
Conference Wes diplomatic In Its; couotitution;ihreVing
been formally called by ago Government of France, by
official invitatiots to most of the civilized nations, Its
object, 1/8 stated by the Minister of France at.,Westring t .
' toil; was a general interchange of vieinf, and' dine "to
seek for bees for ulterior negotiation? = the rubjact4
Im mo co i nage f or th e muss of tire worla. It appears
to f acial
~ re port that the Confereneu, ; on. ,tuu
deliberation, has agreed on such a, 'bitsiteich
is now transmitted to the . di ff erent .na „f or
t heir consideration and decision releetively. , e Met.
tern thin s
i presented atre of high mone my interest to 'the
Unite *Hines, and merit the atteut Ye arid careful ev
amine on ol its public authot Rica, executive and loth , .
,it s ,ti ve ,, They aro !idly diSetilistid/ ha tduissw.at9 roport of
Mr. Buggies, under the following beads:
.4, !The composition and tatigranterrter w tk .Oonferonpe,
embracing nineteen eetatr.ater natjona, a population
ca isineeneed inhabitants.' lo ; , , , ~, ~ 4 rl
2 , lbe importune of including, i n . the pro posed mono
-1 Lary roforiii , the nations of :Urea ' Cal ; and Rth America,
, a. 'rho necessity of me etary *on between thit East
(Anti.* te, ,'• t . ~ 1 , $
4. , Jit aintonmediate P rim s of the two Americas beg.
tween Western Europe d lotiterei Asia and their duty
.as re t bl thejerintitial , Prdo et the goltl ill the wet*. .
A Tne coat of evequirod by the proposed itnifl.
Cattail W illi fi t t i :l4 B 2t thtlee .age. Pale tf erg
tity,
sent,o the Uni is preatiyritain and Fra nco. ,
IThputeld Oehler:, or rate& at/tee-Irons i
I'm to ) Ilk ttr tee to her been. $1 lei 0
Brest te, srosaltildtelssl... . .... . ..... 480404, ,
PA graffcei,fflm 711,44,8,1. ,,, ,..-!. . •••••••i•• P 14 ," 9 12
iA ' ' lll ' tq 1 4 , *tffli fe• , •'. ; ' ;•:• . . 904, olta
~fevonviiim ‘u telturs?.: ..................... .
takitifi11i11a11t"..i5p..4.;...).,. , i.., ,,,, -.)•• .„,,a ellikilteb:o3
erne...,... ......... ..,...,.., ...
~M, -kg
.
it liiiri igt• 1 - - ' • ' lag ILO'
133,103,282 00
#6.olaosil
374000,000 00
O. The probable rate of future product of geld In the
United States
7 end S. The IlistorY otthe 'Varying et/hp:ages Europe and their gradual consolidation.... r •
O. The contraerprelented by the Mango the United
kfitates_. as unified or the Constitution.
10. The. necessity of intercontinental monetary eon
' !trances ,of nations. First attempt in the Congress, at
'Hein in'liert
-11: Quadripartite monetard treaty of December, 1160.
' ,b , direcn , France, lgiu witlerAnd., an With
aubsequent adhesion of e Btateit and of
Greece. partially unifying Enron&'
•M. The nectssity of a single standard nicht/lively 'of
gold. Timbal/toy and impossibility of n double standard
of go] and silver.
Is, common denominator, " or - intik" of
.134,11 of e.
lined weight and value rends lug "dollarieranot "fronts"
eynonymous or mutually convertible. - • -
(4 14. Action '
,the onference by. the ' , delegate/1 from
reat
15. TBrithe ain.
consent o 7 France to issue a' "now gold coin of
fraocs to circulate' side by aide with the half.eagle of
therUnited States,
and the sovereign of Groat Britain.
when reduced to that value. Y,
Thn proper examination of a subject sq compreheMdite
chit 'hardly fail to benefit the Gevertitnol?;
of the United States.. In commanding the rePorttri
Ana „consideration . of, Congrhea the eicerctary,deeme it
forlhe Present, ' conctirrence
In'
rathe view eduty embodledta the fo,7otringear
tct : • ,
"Let ,
never 'forget that that tho twit Muerte/Ware
• Christtanmetablint of -the great family of *nation% and
that the,unyticskametLey may he close akin to other
and. , hlkhor Jetts Mr itMnstian concord. ;We cannot
wiselyfor'll htftillyti„rotnain in continental is o l a ti on ,. I n _
zanni portions °Etna mighty organism of modern civili
tion, lot us ever fraternally and pp/until' take our part
in the world-wide Works of peace,
HuolpiGet'LLOCH,
•- • trecrataty of the Treasury.
Hon., 011uviza cor,Fuc.-
B , „.•
Speaker of the ott.e of Befiennitatiree. • '
S I/PE 4 M Avi4k3MV4lN'
lir FARMPES''AIiP , hig.CHAN,W4r: ATAT./9N4L
' BANK. •
' , •
For the convenience of its Stockholders,.an will
pay to the Hee& ver oblate* the State Telly 131ple Milts
now duo upon their respective shares. ,
W. 81T51.4.J5.. •
'mgr. AN :ADJOURNED MEETING OF TAB STOCK
holders of the MULLENGAR OIL COMPANYwiII
, be held at the Office of the Company, No. l bil _North „wit
atteet, on THURSDAY, December stl4.at 4 O'clook..P .M.„
for the porporo of acting. on the'Reeolution offered at. the
het meeting. viz. 1 to dispoe of tho property of the Cone-
MIA ,and bring it to a 01 00.
A. it FOU RA
dO4t•
AN ADJOURNED MEETINSi OR TIDE STOOK
holders of the Groat Central Dashi.,oli , Company.
will be held at tho office of the Complain' Nor.--11, North
Front street, on,FßlDAY,Dpoember 6th,at 4 o'clock P.M..
for the purposo of acting on the resolution , offered • at the
last meeting, viz,, to dispose of the, property of theCour
,
pany.
maw. BATCRELOR'S HAIR DYE.-THIS SPLENDID
Hair D_yd is the best in the world, The only true
and Perfect Dye—Harmless, tantanoona' No
disappointment. , N °ridiculous tints. • jiatutal Black or
Brown. Remedies the effects of Bad layeß. Invigorates
the hair—km*ln, it soft and beaptifuL The genuine fa
signed WILLIAM A. BATCHELOR- All others are imi
tations, alsil shotddlio avoided. • Sold by all Druggists and
Pert= ere*. Factory 81 Barclay streek Pies/ York
ngwARE OF A EBB NTER.REIT. - - del-f,M.WXY
Stirdi%l 7 APPorOtir'irilitAME,, ritit tat NUT STNEET.
PIIITATELPIITA, Nov. 25, 18e7.
The Annual Meeting sf tho Stockholders of "The Roll
ance Inourauce Company of Philadelphia." and the an
nual election of thirteen (13/ Directors, to eerie for /ha
ensuing year, will be held at t_lds office en MONDAY.
December 16,1867, at'l2 o'clock M. -
nolitodel63 THOS C. HILL, Scc'y.
•
air DELAWARE AND RARITAN CANAL CO.,
AND
CAMDEN AND M ABOY ON RAILROAD AND TRANS-
, • PORTATI COMPANY.
The Directors of the above Ciotupaules have ordered
that the Transfer hooks of Capital Stock be closed on
January 15th and July 15th, in each yeantuatil the day
of the following month and any dividend declared. will
be payable to the stockholders, standing as such, on the
books of the Companies, on the fifteenth day of the
month in Which tho'dividend is declared.
RICHARD STOCKTON, Treasttrer.
PTI (lATON, N. J. Dec. 3,1867. no2i)-tit
AT A GENERAL MEETING OF THE SOUTH.
/115r AMERICAN GOLD AND SILVER MINING COM
PANY; OF NEVADA, held on Monday. December 2,1187.
the following named Board of Directors was duly elected:
Robert. John Q. Cresson, Samuel 11. Perkins, B. Mitchell,
t. Patterson, John Barnard, William. J. Philips.
James Slorrell, Jr., Joseph G. Mitchell; Peter Farnum.
And at a meeting or the Directors, hold the-same day.
the organization of the Company, under its Charter and
By -laws, wee effected by electing' JOHN C. CRIMSON
President; SAMUEL H. PERKINS, . Treasurer, MO
WILLIAM J, THILIPS, Secretary.
de.3.3t0 1 . • W., J. PHILIPS, Secretor ••
SAILLIS4,
AT PUBLIC SALE
In West Chester,
Thursday', Dec. 5, at P. M., .
Desirable three-story brick dwelling on Smith W ALNwr
Street, 20 feet front, three-stmied doable back building,
with modern conveniences. Lot gl by ES feet. Garden
and handsomely hild-out side yard, with flowers and
shrubbery. Immediate possession and easy terms.
JACOB GILBOUGH.
irBALE. -0N FORTIETH, BELOW. FINE
, Street,'West Philadelphia—
Arvery desirable Cottage .reeidence. replete with
every convenience. • • . •
- . .
Stable, Coaoh.house and Groon.housa, 'Grounds hand
somely laid out with a profusion of fruit trees in full
bearing. Lot, 76 byffe feet. Thu grounds adjoining; 7d
feet front, can bo had if desired.
n0.1,1m.
GEIMANTOWN—FOR SALE.—A Handsome
Double-stone ilcsidence, with stone stable and car
riage house, and about ono acre of land, situate on
Tulpohocken street, within tea minutes walk from the
railroad depot; woe erected and finished throughout . its
the best manner, expressly. for tho occupancy of the pres
ent owner L with every city convenienm and is in perfect
Order. J. H. GUMMEY & SONS, 608 walnntbtreet.
rFOR SALE—A GOOD PROPRRTY, ON 601100 L.;
house lane, near steam and bone cam—Stone
'House, 10 rooms, large parlor, hall and modern
conveniences. Lot 45 by 475 feet. Shade, manes, pgara,
and garden, very desirable for business or retired citizen.
Immediate possession. Apply to " CONRAD,
e02612t• 4774.4tatn street, Germardelreh
riARCHSTREET.—FOR BALE—THE HAND
'acme (minatory brick residence , with tbreheiblrry
" double heck bunt loge, situate No. 1308 Arch, street.
lies every mode en convenience and fraprovement. Said ti
in verfret order Lot 20 feet front by 140 feed deo Im
mediate pocc.edon given. J. M. OHIdIdEY 50N13.6011
Walnut street.,. - ,
. r FACTORY FOR BALE OR RENT,—A
three-story brick Factory ilunding, havfng frodtaont
three streets, Ia bantht them:Lost substantial van.
ner, nearly neW and PI perfect order. Lot 84 feet front by
116 feet deep. Iruniediata _POssesidorr given. For Airtime
particulars apply to M.
, qIUI.IIIthIEY b 2010,508 Walnut
TO RENT.
ri FOR RENT. FURNISIIED Olt UNFURNISHED.
—ThB four-story hriek Residence, with three•story
"doubletbatk buildings, situate on the northw
corner of •Twentie .1 wed Arch streets; ha* varier, dlnilt
room; kite ben, out iltchen, library, 8 chambers, 2 ba ..
rooms, 2 crater closets, &a., dte. J. M. 0 [MALEY &SON&
609 walnut 'street.
TO . BENT.— A 'CREEL-STOIC/ DWLLIIII:1 4
1i0.2012 !donut Vernon etreet, with all ttindinst=.
prevements, Immediate Tormentor. Also the :throw
'eters Drmlling, 8. E. comer of Broad and Volainbia±
emo, all modern Improvements. Immediate jN'eattlaidont.
Apply to COPPUCX dc JORDAN. '4ll Walnut , tree •
AnMARKET STREET-FOR RENT—A VALUABLE.
store property, 25 tacit' front,Lwith.lotlso feet , deep
eltunte on Market street, between Seventh and
Eighth streets. Possession Eebruary lat. PRki.
OUMMEY At SONS, 608 Walnut street.
TIIIRD STREET—FOR 'RENT, TILE 'Fr.
story granite and brick Store PronertY. No. sk ores
Third street. Immediate possessieu. J. M. IP&
MET dt SONS. 618 Walnut street. • r.t
TO RENT—A STABLE, BACK OF,IOOB. WAL.
nut street. Accommodations for 8 horses aid 4 car.
Itumedlato possession, and in good order.
Apply to COPPtiCK J inDA,N,41313 Watot. West.
. .
FOR RENT—FROM DECEMPD . RI:
,r new Stare, on Delaware' eve,: tt tablet st.
Apply to . JOB. B, BIJ C O., D
nob ti • • " 108 Bokith ware arenas
mo RENT—Wl'ru "'AIMED! 'IT POSSESSIoN, THE:
aecoad tird, tourtn and Ofth damn of vfla
premtnes a ntarkat ahret: Andyikrl3. a SLEEP &
..14 Market a • ' dat
Litiadii 'NOVICES.
TN THEIRTRT" OF 'COMMON PLEAS FOR THU
. 1 - and county of Phitadclphla.—ln the matter of
theagemmed 'state, of WORK; MeCOUOII C0. , -The
- 10 .1tir ALPPOinted by•the Court to audit. settle , and ikit
'Jul 0 Prat account of GEORGE SERGEANT, Assignee
"of 110 Eat ate of WORK, MoCOUCkt and to report
distribution of 0113 balance I'OllllllllW In,the hand* in the
scretrotant, will meet the purthe Interestedifor tier Par
preen of lice appointment,. on 'Monday, December 9W.
IW, ; t'o o'clock. P. SI., at tag O ffi cer, Nolan Arab etreet.
in the city. of Philadelphia.
31029.f,nt0r6t* J. SEM:JD/LW!' Aiditot.
:IN THE COURTIOP COMMON !.PL :, - : 'FOR THE
t a. City_ and County_ of Philadeleble, - xned, Estate
of BAmiTEL 'NEEDHAM. , Tho , lAndittir- ‘ appottOct
.by thu court to , audit, settilmal, VII ' I "
first and final ' account of " E VE R .. ALL.
e affineo for tho .benetltOr'. creditor!! of NANUEII.
NEEDtrib
HAM. and to report diaUtion of thdbaftneelit
fli rti
the hands of the accountant, min meet tke ripitti in
terested for the pumoses. of hie ap_polntraent, ori i "fon
December :Wu DMZ. at ,d'Mock. P. M.. 4t.iit ogle
House, No. NA Ijantaipl y attmet. In the Ci tyo Ph a.
delphis: ' ' ,'''' ',j, • ' ! • • ' c •' n• .w.f.ralito
IN TIME ORPHANBr i?. yourr ,FOR) THE, CITt ANZIO
County of .1"41104 alp a,--Estato el MAW hl.OO
,-
doceared.-The Atiditm appointed INtkii court to audit;
soak and adjust hr
account of 8
au'
Administrator's° the estate of Tli . au. , moon
aud,to,ropOrt distritnefOn of 016)14144v hi -thp
the accountant. will meet the Eartm interested /
l l R C el e ttt l otevv. t . r t ell.rrdfvo,im i x
A
.tro. now t. l n,.. ) b vt i l tv at: Rum .
, D AVR E T!..t . i m i c A lc -k7f . 1 2 aril:
JAPAI
A. B. FOLTGERAYrets ,
sec*?
SAMUEL FIELD.
No. 142 South *out Street.