Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1865-12-11

RAAE]lE5tlls Il; ~ =
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N1T10NA1sr F1NAN09e.
The st,temepls end .Fssp9nsndations Of
- ea~vssrs Il microscopic tis Ia repess
n1S,iIso Ssssbss roo sss,Assss - .. his
s6aiJB6 on the present a"sne'sl se"diss'ss
z, g sll.rts out y recommending . prsnps
~ S,e;dei contraction Of TIE CURRENCY
~. ~ ~ be clothed with al The author
N Necessary to compass that md withope
unnecessary delay. To effect this b r.
the passage Of IN aca BY Oon-
.rs.s providing that The interest bearing
Treasury notes. amounting TO nearly 2oo,-
600 90 shall not be legal tender aflsr The
date Of their maturity, and then asks for
sssndrisy y cell six pr seat. gold-bsAring
bonds, reasonable at the pleasure Of the
government, to retire the plain legal tender
notes, Of which, ~ believes, It will not be
necessary 70 retire above tl00, 000, 900, or
600, ooo. 900. ct ~ outside, TO aecemplish
the desired pefpose. Az the currency is
Y 30 retired BY the sale Of bonds in the
market, b, dpes not believe that It will pro-
iced WITH rApidity sufficient 10 produce
any coomsrcial disturbances, but, on the
contrary, viii BE regulated solely BY the
condition Of commerce. He replies to sew
seai Il shs arguments urged against con
traction Of the currency, giving In diff s"'
lights his reasons for urging it. rne secre-
tasy y consistent in his pos'aon, Tor ne e.
pressly disapproves Of an addition to the
National bank c;-~ ulation. which he thinks
fully - lars. Is could be supported on the
return - specie payments. lie states that
nk j. nsssssasy to provide national banks
Tor the south, they can soon Be provided
with circulation by an assignment Of that
which the national basis Of the north will
fail 70 float, in consequence Of the contrac-
ton into which retiring the legal tenders
will force them
With relation to the national banks, the
secretary appears TO entertain high hopes
Of the usefulness and stability Of the sys
tom. bat believes that frequent redemption
Of tseir notes il necessary to tcaclsthem
that their notes are not money. simply from
the promise 70 pay, and, in order to render
che currcscy ofa uniform value everywhere,
he endorses recommendation Of the comp
troller of tho currcncy-that all the banks
be required to redeem their notes either at
Boston New York or Philadelphia, AZ well
~ It the place of issue.
With relation TO the ultimate paymcntEoi
tho public debt, he recommends the reduc-
ton Of tho rate Of interest, and shows that
by 1881, the rate ofinterest, can be reduced
to 500 per cent. At per cent. the annu
al application Of e2OO, O0O, 900 to the pay
ment Of the interest and the principal
would pay off the debt in 90 years. After
submitting these facts, he recommends that
$500. 100000 be set apart annually for
this purpose and submits tables of the
present and prospective capital Of the coun
try. from which It appears that after aiding
oil other expenses Of tho government, the
federal tax would be at tho rate Of j pei
cent. on the resources Of the country for
the first year, gradually decreasing each
year, to 7-10ths Of per cent. in 1900.
The Secretary desires to convert the short
Obligations Of the Cover nment into long
loans, and he asks for authority to sell sir
per cent. gold-bearing bonds to retire the
i've per cents. and compound interest notes,
amounting to t2O5, GAO ,O4o, and also any
obligations Of the government maturing
prior to 1869, VIII ich would let In oil thu
seven thirtics, nearly 5000, 0o0,O more
He also asks authority to convert seven
thirties into six per cent. gold be- airing bond.
ct any time previous to maturity, believing
that this privilege, IL extended at an carly
day, would induce holders to convert then
more readily than ON the day Of redemption
He also requests that he be permitted to cx
ercise the authority he now possesses tc
make temporary loans and issue certificates
II 10 ammo uncsd that there is deficiency
Of e112,194,0 90 between estimated
receipts from Sept 30, 1865, to June 80,
1866, not including $32. 536.9O1 five per
cent. notes maturing this month, and he
asks for authority to sell bonds to supply
The deficiency. During the next fiscal year
commencing with June 80, 1866, there will
b surplus Of gill, 02S,Sls 70 to be ap-
piled to the reduction of the public debt,
over el60,O00 Of which natures during the
year 1866.
He opposes the proposition to allow states
% tax govern ment bonds, because he con-
'iders it violation Of the implied contract
under which the government sold the bonds,
because he thinks it impolitic, in view Of
he quantity Of government bonds sure to
10 sold on the ;market, and because he
kinks the tendency will BE- to drive them
into the hands Of foreign holders. lie rec
ths passage Of an act expressly
that The principal Of the 20
bonds Of February IS, 1869. and June 20,
1854. shall be paid 10 gold, an opinion hav
ING gained ground in foreign countries that,
y the expiration Of five years, they would
b called in and paid in currency.
He states that the necessities Of the treas.
nry have been such that it was impossible
10 observe the provision Of the oct Of Febru
ny Is. 1869 providing that the surplus
'oin in the treasury should be ussl in the
parchase,of government bonds for a sinking
land. After the present year, however, the
Of this law could be observed.
but in view of his previous recomme ndation
FOR IN appropriation of 5000. 900 900 annu-
ally to thA Qaymcn mt Of the interest and ? rim.