The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1865-12-21
Abstract of the Report of the Secretary of
the Treasury.

! The report of the Secretary of the
Treasury discusses the three questions OF
the Currency, the Public Debt, and the
Revenue. He goes into full exposi-
tion of the objections to United States
notes as permanent currency the chief
of which he states to be the fact that the
government of the United States is one
of limited and defined powers, and that
the authority to issue notes as money is
neither expressly given to Congress by
the Constitution. nor fairly to be inferred
except as measure of necessity in great
national emergency. He holds it to be
the "crowning glory of the Constitution
that this great war has been waged and
closed without the power of the govern
ment being enlarged or its relations to
the States being changed"
The paper circulation of the United
States on Octobe. 3lst, was S7O4.21S,-
04820.
The Secretary after very ably meeting
the varions objections to a reduction of
the currency, recommends
First, That Congress declare that the
compound interest notes shall cease to be
legal tender from the day of their ma
turity.
Second, That the Secretary be authoriz-
ed, in his discretion, to sell bonds of the
United Staaes, bearing interest at rate
not exceeding six per cent, and redeem
able and payable at such periods as may
be conducive to the interests Of the Gov
ernment, for the purpose of retiring not
only compound interest notes, but the
United States notes.
In reference to the debt, the Secreta-
ry believes that, if kept at home, it need
not be oppressive but that it is still ma
tional burden, and the work Of removing
it should not be long postponed.
The Secretary sees no way OF remov-
ing it, but by an increase of the expendi
lures. 1t should be our ambition not to
bequeath it to our descendants.
The first step should be to fund the
maturing obligations. The next should
be to provide for raising, in the least obi
Gus manner, the revenue necessary to pay
the interest and certain definite annual
amount for the payment Of the principal.
Mr.. Mccullough hopes that Congress
will be decided and emphatic on this
point.
The debt on the 31st of October, was
S2,S08, $40 437 SO deducting moneys in
the Treasury, it was S2,74O, ,954, 100
He estimates it on July |, 1866, at S3,-
000000,000,. The annual interest, if
funded at !! per cent, would be $780,
100000, but if funded at 5 per cent, it
would be $3.50, 100000
If s200,000,0O0 per annum should be
applied to pay accruing interest and to
reduce the principal funded at the high
er rate of per cent, the debt would
be paid in thirty two years, or at 6 per
cent, in little over twenty-eight years.
The secretary believes that no act of
Congress would be more popular than one
which should provide for such an extin-
gushment of the debt.
Upon the subject of Internal Reven-
ues, the Report recommends:
First That the collection of internal
revenue taxes which accruded before the
establishment of revenue Offices 10 the
States recently in rebellion, be indefn-
itely postponed.
Second, That all sales of property in
those States, under the direct tax law, be
suspended until the States shall have an
opportunity of assuming Gas was done by
the loyal Sta es,) the payment of the tax
assessed upon them
Third, That all transactions IN such
States, which may be invalid by the
non use of stamps, be legalized as far
as it is the power of Congress to legalize
them.
The Secretary regards the national
banking system as one of the great CON-
pensations of the war, and gives some In