The sun. [volume] (New York [N.Y.]) 1833-1916, 1864-12-07
DEPARTMENTAL REPORTS.
Report of the kecrelary of the Treas ar

The annual report Of the Secretary Of the Treas
ury recounts the ability of the country 10 discharge
oil the obligations imposed It for it's seli-prc-
servnton. The financial history Of the entire per-
cd from the Commencement OF the TO the period
Of Mr.. Fessendcn's assumption Of Office is
viewed. The circumslnGcs the Inauguration Of
tho vnrious loans aud The Increase on the Imports
and internal revenue irou time 10 time
are set { rth TOR the better Clucidation of the
present condition n O'M finances. Government
paper, as a substitute .or con, was le2sdled by
Congress 10 the amount n ciGht hundred and hliy
millions. -Four hundred ana my millions were IN
Unitol States treasury notes without Interest, and
the remainder carried interest at sN per cent pay
able in legal tender nDtes. Among the important
subsidiary measures for special purposes, but not
affecting the general result, may Ue Clssed the act
OF Marcel s. 1868, authorizing the issue oi q irac-
tonal currency.
NJ. Fesscnden deduccs from the history Of the
acts a Congress Ia relation g. nusnce aud the est
mates Of his predoces@r
FIRST lLe nttrr i.uposNbty, in tins1 ike the
present, Of asccrta.nhs with any degree Of Ger.
tainty prospective demands upon me Treasury.
Estimates upon lie most nbcrul scale may lie, as
they have UeSu, found inadequate. Hence arise
large GehG cuc4 $, occa6ioncd ty an unexpected in
creas OF military force In the first place, and upon
arse Of pr ces for material, invariably consequent
upon milItary operatiOns conducted upon gigantic
scale, even # the currency could be maintained in
9 sound and natural c1nuitlou.
cy no, su loct TO the contingencies oi the hour II
s In the secrcta y's judi gmeui, not only difficult,
but LIl oss,ulc, 10 nIply n1ed rules TO q condition
Of atiG.rs constantly cua.Rng, or 20 meet coutu-
gcpues which 10 human N.sGom can iuresce by n
steady application oi general laws, especially In a
government and with pc pc where public opin-
ION ia Il g cJntrOllng element, and thai opinion 10
not unucr the direction oi those who NAV happen
10 administer public Gfars. Accordingly, IL mas
been ~ en- that the attempt 10 conduct hnGn ial
ou,ratiors on bU !mLAtuee s>aie upon o specie
bass soon proved prA ,ucablc. Resort TO some
other spe,!es oil currency Of a national character
bccame unavoidable, as vas unnnswerably demon-
sra,ed y my predecessor IN his Report OF De-
cemb,I, loOI
Fraught With dauser as government paper has
almost invariably proved. there Was ul4er tie
circumstuucu-, no o,hor resource.
o course he danger incrtl'es with enlarged
deLauls Lpol tht Ire .sLry groNing out OF IN
crelsUd Expenditure, a r.sc o. prices occas'o s'oned
ty Nh increase ol taxation Ou ar;.e!ts Of consunp-
ron, the withdrawal Of Auor rom productive pur-
suits, acco upanIed by an aggravated denAnu Tor
products AM material ncd NJ a state VI war.
Tue problem 10 re solve. is hJw % mitigate the
eylt Il Il oauuJt lie fully avoided. II loans can lie
NEGOTIATED at reasonable rates, GuQ the Treasury
and thus be kCpt IA - condition T. meet earnest
Demands 10 Is not uifhcut TO Restrain ihe cnGua
mon O. government PAPER within saie lmlts. Bat
his not alWayb certain IN 'me OF Peace, thoug a,
win abundant resources, It always should be, IL
nlten louua impossible, when war upon u iargt
scale and long continued has created disIrust
Henge IL has followed thGt, uuuer the acts referred
-, our bonds nave assumed various forms 70 sui
thnt WINS f,i,nosed 10 be the choice OF lenders Our
po,os have L.own a similar diversity OF character
While IL has been found impossible 10 AVOID th,
ueoessty Of using them to sn extent which coulc
uot but sggravate the troubles Incident 10 the ne