Baltimore daily commercial. [volume] (Baltimore, Md.) 1865-1867, 1865-12-06
REPORT OF THE SECRETARY OF THE
TREASURY. ON THE STATE OF
THE FINANCES, FOR
THE YEAR 1865

From the annual report of the Hon. Hugh Gull
och Secretary Of the Treasury, a lengthy and care
fully prepared document, submitted to Congress
through the Hon, Schuyler Colfax Speaker of the
House of Representatives, make the following
tracts: The report sets forth that
Next in importance to the great questions involved
IN the restoration OF the Federal auhoity the
Southern States and the re-establishment of civil
government therein under the Constitution are the
financial questions embracing
The Public Debt; and
The Revenue:
all of which demand the early and careful attention
Of Congress.
The fact that means have been raised without for
eign loans, to meet the expenses of protraced and
very costly war, is evidence not only of the great
sources of the country but Of the wisdom of Congress
IN passing the necessary laws and OF the distinguished
ability OF the immediate predecessors of the present
Secretary in administering them. 1t is hardly neces
sary to suggest however, that the legislation which
proper and wise during the progress of hosties
may not be appropriate or even justifable in time
The right Of Congress- at all times to borrow money
an to issue obligations for loans in such form as may
pc conVeheIt, uhqueSllonaole nut their a!thorl-
y to issue 9Dhgatlons Tor circulating medium as
money, and to make these obligations legal tender,
can only be found in the unwritten law which
ions Whatever the representatives of the people,
whose duty 1t Is to MAINTAIN the GOyernlnent against
lis enemies, may consider in great emergency
cesSsaiy to be DONE The present legal tender acts
were war measures and while The repeal of those
provisions which made the United States notes law
ful money is not now recommended the Secretary is
of the opinion that they ought not remain in force
day longer than shall be necessary enable the
people to prepare for return Of the constitutional
currency. 1t is not supposed that it the inten-
ton of Congress, by those acts, to introduce stand
ard Of value In times of peace, lower than the coin
standard, much less to perpetuate the discredit
which must attach to great nation which diShouors
its own obligations by unnecessarily keeping in cir
culallpn an iIredecmable paper currency.
1t has not, in past times been regarded as the pro-
vince If Congress to furnish the people directly with
money in any form. Their authority is Ito coin mo-
| ney and fix the value thereof" and inasmuch as
currency. nan nj Sppria has
| been found to be a commercial necessity it would
seem also TO be their duty to provide as has been
done by the aonai Currency Act, that this
rencv should be secured beyond any reasonable con-
tngency. Tog beyond this, however and issue Gov
| eminent obligations, making them by statute a legal
tender for all debts public and private is not be-
| lieved to be- under ordinary circumstances within
| the scope OF their duties constitutional powers
The reasons which sometimes urged in favor of
United States notes as permanent currency the
saving OF interest and their perfect safety and uni
The objections to such policy arc that the paper
circulation OF the country should be flexible increas
ing and decreasing according to the requirements of
legitimate business, while if furnished by the Gov
| eminent II would be quite likely to be governed by
the necessities OF the Treasury the interests of
ties rather than the demands of commerce and trade.
Besides, permanent Government currency would be
greatly In the way Of public economy. and would give
TO the party In possession of the Government power
| which there might be strong temptations to for
| other purposes than the public bookkeeping the
question OF the currency constantly before the people
as political question: than which few things would
| be more injurious to business.
But the great and lnsuperable objection, already
stated to the direct issue of notes by the Govern
ment as policy is the fact that the Government of
the United States is of limited and defined pow
and that the authority to issue notes as money
is neither expressly given to Congress by the Consti
tution fairly to be inferred, except as measure
| of necessity in great national exigency No con-
slderaton of mere pecuniary character should in
duce an exercise by Congress of powers not clearly
| contemplated by the instrument upon which our
| political fabric was established.
The Government, in the great contest which has
been recently closed, has not sought to increase its
own powers nor TO interfere with the rghtfu powers
of the States. The questions decided BY the war are
that the Union Is ndssolube that whatever is essen
tally opposed to it must be remoyed that the Fed
erai authority within ITS proper sphere, is supreme
and that the validity OF acts of Congress IS not to be
determined by the States, but by that tribunal which
the complex character Of the Government made ne
eessty 1t is the browning glory of the Constitution
that this great war has been waged and closed with
out the powers Of the Government being enlarged OF
its relations to the States being changed.
The issue OF United States notes as lawful money
was measure expedient, doubtless and necessary
in the great emergency in which it was adopted, but
this emergency no longer exists and however desira
BILE may be the saving of interest and however sat
isfactory these notes may be as circulating me-
dunn, thes considerations will not it is respectfully
submitted Justify departure from that strict con
structon Of the Constitution given to it previous
the by patriotic men of all parties and which
} essential to the equal and harmonious working o
our peculiar institutions. The strength Of the Gov