The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1862-12-19

another opinion, not unfrequently expressed
that any actual excess In due to the issues ol
the United States notes already in circula'
tion. Il Is true that gold commands prcmi.
um in notes. But it is also true that on the
suspension of specie payments and tho SUBJ
stitntion for coin Of United States notes. con.
vertible into Fix per cent. specie bonds as the
legal standard Of value. gold became an arti.
Gle Of merchandise. subject to the ordinary
fluctuations Of supply and demand, and to
the extraordinary fluctuations OF mere specu-
lation. That the consequent rise In the mar.
ketable value Of gold is not due wholly or
manly to the increase OF the currency, is ev.
ident from the facts, (r That the whole
quantity Of circulation did not at the time
exceed the Legitimate demands OF payment.
(2) The whole, OF nearly the whole, increase
in the volume Of the currency which has tax.
en- place. was, 1t is believed, legltimately de-
manded by the changed condition OF tho
country in the year between the two dates.
(3) That on tho 10Th day Of October, when
the actual circulation. national and corpor.
ate, was about $500, 900 900, the premium
on gold was 81 So: whereas, on the 29th
day of November, when the circulation had
increased by more than millions, the preml.
um on gold was 90 to 30 per cent. But IL
the fact Of considerable redundancy in circu.
lation be conceded, it by no means follows
that il is the circulation Of the United States
notes which is redundant, and upon this
point the secretary concludes that II Is the
part of wisdom and duty to support the Uni.
ted States circulation, and reduce the bank
note circulation.
UNIFORMITY or CIRCULATION.
He still adheres. however, to his opinion
before expressed. that circulation furnished
by the government, but issued by banking
associations, organized under general act OF
Congress. is to DO preferred to either. The
central idea of the proposed measure is the
establishment OF one sound, uniform circula-
ton, Of equal value throughout the country,
upon the foundation of national credit com.
bined with private capital. These associa.
tions would be entirely voluntary. and every
dollar of circulation would represent real
capital, actually invested in national stocks,
and the total amount issued could always DO
easily and quickly ascertained from the books
of tho treasury. The plan Is recommended
by various reasons, but chiefly by the firm
anchorage it will supply to the Union OF the
states. Every individual who holds dollar
OF the circulation secured by such deposit;
every merchant, every farmer, every mechanic
interested in transactions dependent for sue
A. nf hak a,x LAT xrilI
feel as an injury every attempt to rend the
national unity, with the permanenco and
stability Of which all their interests are so
closely and vitality connected. Had the sys-
tenn been possible. and had 1t actually exis.
tod two years ago, can It be doubted that the
national interests and sentiments enlisted by
il for the Union would have 90 strengthened
the motives for adhesion derived from other
sources. that tho wild treason Of secession
would have been impossible?
GOLD AND SILVER A PERMANENT BAsIs.
The Secretary recommends, therefore, no
mere paper money scheme, but on the con.
trary, a series Of measures looking TO a safe
and gradual return to gold and silver as
the only permanent basis, standard, and
measure Of values recognized by the con-
which and an irredecm.
able paper currency, as he believes, the
choice Is now to be made. No country
possesses the true elements OF q higher
credii-no country. in ordinary times, can
maintain higher standard OF payment and
currency than the United States. The
government is less costly than that of most
other great powers. The expenditures OF
the current fiscal year, excluding those OF
the war and navy departments, can hardly
equal those Of the last year. which amount
ed to S245ll,476 66. Estimating those Of
these departments at double the expendi.
lures Of the last year before the rebellion,
they would for the current year, hsd the
war ended before last midsummer, as was
anticipated at the date OF the last report,
amount to the sum Of S55,Si5,S4 is. The
interes, on the public debt IL for the current
year estimated at sos, ,04l $50 OF. and will
probably 90 over that sum. The whole ex.
penditurcs Of the government for the cur
rent year, on tho supposition Of peace,
would therefore not exceed Sl05,371 ,Sf3 81.
This aggregate must be increased hereafter
by the addition Of the interest on the loans
of the current and future years, and by
pensions, the precise amount Of which can.
not be foreseen. Estimate the former at
fifty, and the latter at ten millions year,
and the total annual expenditures in peace
will reach, emitting fractions, to Sl6s OO0,-
600. The expenditures Of Great Britain
during the year ending March 81, 1862,
were s36i, ,436, ,6s2; those Of France for
1862, according to French official estimates,
will reach s42l, ,s23 900; and the annual
expenses Of Russia, according to the best
accessible information, do not fall short Of
s230, 100000. To meet our annual eS-
pcnditurcs, and to ensure beyond contin.
rency the punciual discharge Of the inter-
est Of the public debt, and tho creation Of a
sinking fund for its reduction, Congress has
provided a revenue from customs even now
reaching nearly seventy millions year,
and a revenue IRON internsl duties which |
will not probably fall short Of one hundred
and fifty millions year. Without reckon
ing any other resources than tho.e already
the revenue, therefore. will annu
ally exceed the expenditures by fity.five |
millions, which sum may be used for the re-
ductipn Of the public debt. II, then, the |
war shall be continued, contrary to hope
and expectation, TO midsummer OF 1864,
md the public debt shall reach the utmost
limit now anticipated, Of seventeen hundred
and fifty millions Of dollars, the excess OF
will reduce that debt, during the
fret year Of peace more than three per
cent.
REsouRcEs or rHE COUNTRY.
But the American republic possesses i'm
mep.e resources which have not yet been
called into contribution. The gold.besring
region of the United State stretches through