The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-03
The Report or tho Secretary OF en-
Hf#~a4 Treasury. ak


at~se en Treasury. Ah
Tbs report OF Mr.. McCnHoch to Congress Is
already in type, and will very shortly be laid
before the people. Probably similar docu-
ment was never looked for with more general
interest, and ii will be perused with greater at
tention and curiosity than are usually bestowed
upon Treasury report. Since the former an
nual exhibit of the finances was submitted to
the nation by Mr.. Fessenden the entire aspect
of affairs has undergone such an important
change that we look for . corresponding
alteration Of tone In the forthcoming report.
The prospect was then gloomy and unde-
fined, whereas IL is now clear and decided. We
know that in round numbers our public debt
does not exceed three thousand millions. and
that our internal revenue and customs re-
ceipts are on a scale which is more than suf-
ficient to maintain the national credit unsullied
and afford a fair surplus to defray extraordinary
expenditures incidental to the settlement of
war debts, and afterwards to establish sinking
fund, should the current receipts continue in
excess Of the expenditures. But we have at
the same time not far from thousand millions
of paper money in circulation, and the issues
Of the national banks are constantly increasing
this volume at the average rate of more than
three and half millions week In directing
his policy, therefore, the Secretary Of the
Treasury will have to deal very carefully with
the currency. The war issues carried US 70 q
pitch OF imitation from which we cannot descend
to a hard cash basis for probably eight or
ten years TO come; but we are all anxious to
make the return as speedily a. may be con-
sistent with the financial and commercial in.
tercsts Of the country. II would be an alb
surdity, however, to suppose that after sc
cumulaling debt so gigantic within the short
space Of three years we can 90 back to specie
payments with equal celebrity. Imitation is
proverbislly ~ easy to bear ~ contraction is
painful, and time is an important element in
the progress Of the latter.
While the war was matter Of uncertain
duration and paper money was being poured out
with rapidity which recalled to mind the his
tory Of the French assignats We foressw the evil
OF it and pointed out its danger, urging con-
traction Of those immense issues and gradual
curtailment Of the currency. We do the same,
acting upon Me same principle, to-day; but the
real science Of finance lies in the application
rather than In the assertion Of principle.
The Treasury d no longer issuing currency
by the hundred weight, and the South, re-
opened 70 commerce, has absorbed large
part Of the currency, which, in effect, IL the
equivalent Of contraction. The whole country
is at the same time recovering from the pros
trating influence Of the war, and now life Is
being infused into industrial pursuits and
made tributary TO the development Of our re.
sources. Under this peculiar state Of affairs
further contraction than we have already ex-
perienced would DO al present premature, and
give . shock 10 commercial interests which
would be disastrous in its results a. well az
greatly embarrass the Treasury in making the
necessary provision for its maturing obiiga-
tions. But in the course Of time natural causes
will favor contraction and specie resumption,
and the dangers Of a forced withdrawal Of cur
rency from circulation will DO avertes. nf
Mr.. McCulloeh in his report will doubtless
dcgmatize about contraction, but his arguments
viii only exert moral influence upon
the community when Hey reach be-
You'd his ability 10 put them into prac-
ticc. His principles are identical with our
n.v. lat ,s ,,a. 1;tr,Y ~ II NO 'ina 81 -4rt .