Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1865-12-11
FINANCIAL s COMMERCIAL.
sArrnpAY EvExIve. Dec. 9, 1865.

SATURDAY EVENING. Dec. Q, 1865.
The report of Secretary McCulloeh is re-
garded in all parts of the country as a most
practical, judicious and b~usiness-like doeu-
ment and with a few exceptions as to minor
matters its suggestions and recommenda-
tons are fully approved. The persPieuity
with which the Secretary gives his views,
the elearness with which he states the prin-
eiples Of his policy. and the logical manner
in which he answers the objections raised
to that policy, are marked, features Of this
able state prper, and strongly impress the
obseryant reader both as to the enlarged
experience Of the Secretary, and the pro
found study he has given to all branches of
his Important subject. And this experience
and study brings the Secretary to the ney-
table conclusion that the business of the
country is in an unhealthy eondition-spec-
~ulative, feyerish and u~ncertain-and that
!" every day that contraction is deferred in
creases the difficulty of preventing a fnan-
cial collapse Contraction can be accom-
plished. the Secretary believes, without 4
shock to trade, and without a d~iminution-of
the public wen or Of productive indus
try"
In relation to the numerous plans sug-
gested for the payment of the publie.debt,
the Secretary simply remarks that he sees
no way of accomplishing it but by an in
crease of the national income beyond the
national expenditures" I'm a matter of SO
-raat ;,.r,rf.p.a - tbfs a~ra-;,ua,t -
out of place. The plain beaten path of ex-
p%erienee is the only safe one to tread" He
says:
The first step to be taken is to institute
measures for funding the obligations that
are soon to mature. The next is, to provide
for raising, in a manner the least odious and
oppressive to tax payers, the revenues ne
| eessary to pay the interest on the debt, and
a certain definite amount annually for the
reduction of the principal.
TIL following recommendation are made:
First. That Congress declare that the
compound interest notes shall cease to be a
legal tender from the day of their maturity.
Second. That the Secretary be author
lied, at his discretion. 10 sell bonds of the
United States, bearing interest at a rate not
exceeding six per cent, and redeemable and
payable at such periods as may be condn-
GIVE to the interests Of the government, for
the purpose of retiring not only compound
interest notes, but the United States notes.
In addition to the above, he also asks au-
thority to sell, in his discretion, bonds of a
similar character with the above to meet
any deficiency for the present fiscal year, to
reduce the temporary loan by such amount
as he may deem advisable, to pay the eerti-
feates Of Indebtedness as they mature, and
also to take up any portion Of the debt ma
turing prior TO 1869 that can be advantage
ously retired.
The Secretary estimates that the debt will
amount TO three thousand millions on the
LIST of July, 1866. lie submits a calculation
showing that if the debt is funded at ) per
cent, and two hundred millions per annum
applied to the p~aymentof Interest and prin-
cipal, the debt could be entirely paid in. a
little over twenty-eight years, beginning
with a charge upon the national resources
of less than FIVE per cent, and ending with
seven-tenths of one per cent.
The local money market was without i'm
portant change to day. There was a pretty
free checking by depositors, but the dis
count demand was only moderate, and was
met in all cases where coming from regular
customers. The banks are generally quite
comfortably situated for currency, and the
tendency of balances is toward improve
ment-
Exchange is in a little better supply, but
the market is still close. The demand is
quite moderate. Rates are steady at par
buying and 40 premium selling.
New York advices show a general decline
in prices there, and an unsettled feeling
Gold closed at l445. Governments declined
ia per cent, in consequence of forced sales
by speculative holders. In this market to-
day coin and governments were quoted as
| E,IlowE.