The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1864-11-22
THE REPORT OF THE SECRETARY OF
THE TREASURY.

The accounts of receipts and expenditures, which,
with some other matters OF less importance, make
nm the rest of this document is already sufficiently
known to the general reader from the synopsis OF
it in the Presidents Message:
"Tbe currency demands the Immediate and the
pravest consideration of Congress. Unless uni
form and stable value can be given to the Treasury
notes the efforts carry on the war through their
ipstrunentalitv must Of necessity be abandoned.
Acauiescenee in its deplorable depreciation is to
cont the ruin to which it leads. One hundred and
thirty five dollars in currency, the prices obtained
for one hundred dollars in six per cent bonds, is
equal to six dollars only in specie and to sell the
bonds at this rate is in reality to dispose OF them at
ninety four per cent. discount; or, IN other words,
to give bond for one hundred dollars in consid-
Grafton of the loan of six dollars.
There is not man of property in the country
who would not prefer any fair measure OF taxation,
rather than procure a temporary and treacherous
prosperity by the sale Of mortgages on his estate at
this runous rate
The depreciation Of the currency, proceeding
from redundancy and the want of confidence IN Its
ultimate redemption, only be corrected by
measures that shall both diminish its volume and
sustain the public confidence
The measures adopted by Congress to reduce the
currency did not combine these essential elements
of success. Those who had taken the old notes,
finding them suddenly deprived of one-third of
their nominal value, became alarmed and received
the new notes under strong appreheuslons OF
repetition Of the measure. At the time, too, that
the currency act provided for circulation exceed
ing four hundred millions of dollars, it crcum
scribcd and reduced the demand for the notes, by
making the four per cent. bonds receivable in the
payment of taxes. BY the first day of August
$4,000 900 of the new notes had already been
Al. emilio tnrf q
payment of the taxes collected at that date. De-
probation commenced at once, and proceeded at
20 rapid rate, that by the first day of October
gold was selling at twenty-five dollars for one
The necessity of providing speedy and efficient
remedy for this condition of things is obvious
The bonds have to be sold for this currency; the
taxes must be collected in it, aud hence all the
means of the Government for the purchase OF sup
plies will consist of this medium. Admitting that
the amount VI which may be raised from these sources
is nominally equal to the estimated expenditures,
there is yet no security against such further de-
cline in the value of notes as will disarpont pre-
sent calculations, and add enormously to the accu
mutation Of the public debt. The time therefore,
seems to have arrived when Congress should take
measures to restore and sustain the currency, or
make provisions for its honorable redemption, or
resort to the use of specie and bank notes. The
adoption of the last alternative, it is feared would
and the impossibility of obtaining adequate sup
ply of specie and bank notes for the wants of the
Government would create the necessity for sys-
tenn of universal impressments, followed by meal
culable suffering and distress.
That the Government must be supplied with
sufficient means to carry on the war are all agreed
Our enemy offers US no terms short of unconditional
surrender of life, liberty and property, and no
choice is left US, even if disposed to hcsi
-. L. Int kho
The adoption, therefore, of permanent and eff
cient system of finance is indispensable to the full
development and unrestraned use of our resources.
The return to specie payment being for the present
mpracticable, the inquiry is, whether 1t is possible
to restore and maintain the value Of the Treasury
notes currency. The accomplishment of this
end is of such vast Importance that it is, of all
others, that to which the resources OF the country
should be devoted and applied. Were it possible
to anticipate the productions of future years of
peace, and convert them into money for immediate
use, the expediency of resorting to such measure
could not be doubted. May not near approach
to it b. made by devoting portion of those future
productions to the purpose of impartng to the
Treasury notes high and stable value .? [ submit
that this may be done, and respectfully propose
plan for its accomplishment.
1t is an act pedging the faith of the Government
against the issue of Treasury notes beyond the
amount authorized by the Act of 18th February,
1864 !; exempting the notes from taxation pro-
viding for the application of twenty per cent. of
the taxes annually to the reduction of that amount
until peace be declared, or the outstanding sum be
reduced to Sl50,0OO000; continuing the tax in
kind after the war, and appropriating asccrtaned
proportion thereof annually to the redemption or
payment Of the circulation, until the whole shall be
retired.
propose that the redemption shall be made from
the tithes of cotton wheat and corn prices fixed
by the Act, namely: cotton at fifty cents per pound
wheat at four dollars per bushel, aud corn at two
dollars per bushe that the notes be received after
the war, from all persons liable to the tax in kind,
in Communication Of their tithes and that the Secre-
tary of the Treasury be authorized to issue certi6
Gates in exchange for Treasury notes, bearing six
per cent. interest, secured aud redeemabe in the
same manner and on the same terms as the notes
themselves, free from taxation and receivable after
the in payment of the tax in kind, and that all
notes, received into the Treasury for these certif
Gates, be cancelled.
The effect of this measure would be that, at pre-
sent prices, the entire population would be inter
ested in exchanging their productions for Treasury
notes. They would constitute not only safe cur
rency, but profitable investment, for in the ratio
OF ten dollars for one, compared with specie the
produce obtained in payment at the close of the
war, would cost the following prices, viz cotton,
five cents per pound, wheat forty cents per bushel
and corn twenty cents. These nominAlly low prices
would not operate to the prejudice Of the agricu
'turist, for his tax being in kind would neither be
increased nor diminished by the prices 1t is true
he would have collateral interest in common vii h