The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1863-01-30
REVIEW or OUR FINANCES.
AND or TIE
Report of Hon. S. P. Chase
SECRETARY OF THE TREASURY.

SECRETARY or THE TREASURY.
HON. ROBERT J. WALKER.
Late Secretary OF sIse Treasury.
fTso. Alvsnes Sheets o. this Continental Monthly
for February
Our national finances are involved in ex
tseme peril. Our public debt exceeds $72O,
600, 600. ard is estimated by the Secretary
Of the Treasury, on the 1st Of July mex,
1858. at el.744 6S5.586. When we re
hscs that this is nearly one half the deb
Of England and bearing almost double th
rate Of interest, it is clear that We are ap
preaching a fatal catastrophe. Nor is thi.
the most alarming symptom. Gold nov
commands a premium OF 80 per cent. a
compared with legal tender Treasury notes
and, with largely augmented issues, mus
rise much higher, with q correspondent in
crease Of our debt and expenditures. In
deed should the war continue, and there be
no other alternative than additional Treas
ury notes. they will. before the close OF the
next fiscal year. fail to command forty cent,
on the dollar in gold, and our debt exceed
several billions of dollars.
What, then. is the remedy for our depre-
ciated and deprccisting national currency
The Secretary Of the Treasury anticipated
the disaster, and proposed remedy 10 1851
gave his bank plan then my earnest and
Immediate support. Well would it have
been for our country if it had then been
adopted, and gold would not now command
. premium Of 80 per cent. After years
experience and deliberation, the Secretary
reiteratss his former recommendation, with
words Of solemn import and arguments OF
great force. His is the chief responsibility.
To him is mainly intrustsd the custody Of
the public credit. HIS is now the duty OF
saving us from National bankruptcy. AT such
time l would differ from him, on such a
question, only on the clearest convictions,
and then only upon the condition that had
y better plan ss n substitute, and that mine
could become law now, and be carried
now into practical execution. Ii all this
could not be done, would support the plan
Of the Secretary, as all admit that delay or
inaction is death.
The plan Of the Secretary is clear, simple,
comprehensive. practical. and effective. 1t
is the plan of an uniform circulation, furnish
cd by the Federal Government to banking
associations. organised by Congress. secur-
ing prompt redemption by the deposit of the
same amount of United States six per cent
stock in the Federal custody, the principal
and interest OF this stock being payable in
gold. This plan, with me, is q necessity.
and not . choice. II is the plan Of the Sec
rotary. and not mine, and is therefore sup.
ported by me by no vanity Of authorship.
Nay, more, il required me to overcome
strong prejudices against any bank circuls-
ton. and especially any connected in any
way with the Government. II is. however.
. strong recommendation Of the plan of the
Secretary. that the proposed connection Of
the banks with the Government is not po-
liticAl. and attended with none OF the for
midabls objections to the late Bank of the
United States.
The national disbursements for the pres
ent and succeeding fiscal year, as stated by
the Secretary, together with his remarks on
that subject, supercede the necessity OF any
further argument in proof Of the absolute
impossibiity Of specie payments now by
the Government. We are compelled to re-
sort to paper. and the only question is as to
the character and extent Of the issue. IL is
my opinion that we should limit this paper
curre ncy, % far As practicable, that il nay
be as little deprecated now as possible, SO
that when the rebellion is crushed the banks
payments at the earliest moment. 1 favor
The plan Of the Secretary mainly because.
by arresting depreciation, it would furnish
. currency approaching specie now more
nearly than can be accomplished in any 9TH !
Or way. aud because when the war is over
il provides the best means for n return, in
the shortest possible period. to specie pay
ments.
The issue OF Treasury notes as = legal
lender was favored by me rs necessity, su-
psrinducsd by the rebellion. and as a sub
,titute for the present bank issue. Such
notes would be deprecated much less when
made legal tender. aud, to that extent our
expenditures would be diminished, and spe-
lie payments could, therefore be resumed
,ventuslly al much earlier period. Why.
then, it is asked, not continue and extend
hat system, rather than adopt the plan REQ
by the Secretary? Because. Con
press refusing to prohibit bank circulation, ,
such increased issues of Treasury notes
would cause further great depreciation of
such notes, TO that extent augment our ex.
peuditares, and postpone, perhaps indefin |
tely, the resumption Of specie payments
Sold now commands premium OF thirty !
Two per cent. payable In Treasury notes;
Bat il such issues be increased one half. 4
hey would fall to fifty per cent. and if doub |
led, to at least sixty per cent. below prices. !
At the last rate, if our yearly expenditures.
paid in paper, reached 500, 900. 900, this
would command but $3.50 900. 600 in gold /
thus subjeciing the Government 10 a loss of
$420, ,O0o.0 900 per annum. and at thirty two
per cent. discount, S2a4.o0o,0o0 per an.
mum. These notes, il is true, bear no in
terest, which at six per cent. on $3.50 ,ooO..
600. would save SIG. 500 900 year Bat
as under the Secretars's plan, thereafter de- \
veloped. the Government would only pay
an annual interest Of four per cent. on this /
loan, the saving would only be Sill 200 ooo.
Deduct this interest thus saved from the
os2o. DOC. 900 of Increased annual expend-
i.urss. arising from such depreciation of
Treasury notes, and the result is net loss
OF S4OS. S00.OoO per annum to the Govern
meus. from the use of such redundant aud
deprsciated currency. Surely. such . sys.
tenn would soon taruainata in h.ok !