The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-06


vantage was much more thaa countsrbaianced By the
largely increased expenses Of the government and OF tho
resulting rom the very cause INA. p.oaoced the
tage no longer exists The advance OF prices IN the
United States notwithstanding the continued high rate
OF European exchange Is now checking exports and In
wiling imports and creating balance IN favor Of
Europe that Is likely to be the greatest obstacle n the
way Of an early resumption OF specie payments Nor
must II be forgotten that while the export Of produc
tons stimulated by tho high rate Of exchange this
high Of exchange enabled Europe 70 purchase
them at exec dinghy low prices
Unless Usual demand for our products Is created
In Europe by extraordinary causes Will be ascertained
crease and exports diminish under the influence 81
redundant currency But reference 70 figures hardly
tated BY the statement Of it. country which high
prices pre- all an inviting one for sellers out an unn
vitng one for purchasers such country Is unioItu
however that there may be misapprchension on this
pc MT the attention OF Congress respectfully cal ed to
clear and interesting paper nom Dr. Elder satiscian
Of thus department, accompanying this report
BUSINESS IN AN UNHEALTHY CONDITION.
to the mind Of The Secretary confirms the CORRECTNESS Of
the views he has presented. II the business Of the
country rested upon stable basis or IL credits
could bc kept from being still further increased there
would DO loss occasion for socitude on this subject But
such Is the fat business 10 not IN healthy condt
that contraction deferred increases the difficulty Of
preventing financial collapse Prices and credits Will
not ~ & are no rs sos sou the e.erse
the controlling power OF Congress
HOW TO REDUCE THE CURRKSoY
The Secretary therefore, respectfully but earnestly re-
Frst-That Congress declare that the compound inte
rest notes shall cease to be legal tender from the day
Of their maturity
SeoondThat the Secretary be authorized in his dis
crcon to self bonds Of the United States sing into
st at not exceeding six per cent and 10 eemablo
and payable such periods be conducive to the
interests Of tho government for the purpose OF retiring
only compound interest notes but Tho United states
notes.
NO INJURIOUS EFFECT TO De APrREHtNDED.
II is the op Mon Of the Secretary has been already
stated thai the process OF contraction cannO be in
uously rapid and that II will not DO necessary to re-
tire more than one hundred, or at most two hundred.
mil ions of United states notes. In addition to the COM
pound notes. before the desired result viii be attained
But neither The Of reduction, the time that
will he req rcd bring up the currency TO the specie
standard, can now be- estimated with any degree Of
accuracy Tho first thing To be done Is 10 establish the
policy OF contraction. When this is effected the Sccre-
tary beliegcs that the business OF the country will read
II, accommodate itself TO the proposed change In o
action of government. and that specie payments may
be restored without shock to trade, and without
dimnuton Of the public revenues or Of productive in
dustry
NATIONAL cRRpIr
At tho close OF great war which has been wagcd on
both sides with vgor and energy and with an cxpend
ture Of money, without precedent IN modern times,
the people of the United States encountered with
debt which REQUIRES the immediate and careful consider
alton Of their personalities
Since the commencement of the special session OF
1851 the most important subject which has demanded and
received of Congress has been that Of pro-
vidng the TO prosecute the war; and the success
wisdom devised for this purpose, well
the loyalty CT the people and the OF the
country. No nation within the Same period ever Dor
rowcd 80 largely, or with much facility II is
be demonstrated that publican government cannot
only carry war on tho most gigantic scale and create
debt OF immense magnitude bat can place this debt on
satisfactory basis, and meet every engagement with
fidelity. The wisdom which has been exhibited by
the national councils in providing the means Tor pre-
serving the national unity VIII not be wanting in devils
ing mcasur for establishing the national credit
NECESSITY or MAINTAINING THE PUBLIC FAITH.
nniulQn apreui a
Nations do not and cannot safely accumulate moneys TO
be used at future day. and cxgences are constantly
under the necessity Of borrowing. The mlennial days.
when nations shall beat their swords into p0ughshares
and their spears into pruning hooks and learn war no
more yet according to oil existing Indications far
In the future. Weak and defaultng nations may main
tain nominaliy independent existence but u will be BY
Of the calouscs rather than the forb Of
stronger Powers No nation is absolutely safe which s
not in condition TO defend itself nor can Il be In this
condition. how strong in other respects without
n welestabshed financial credit. Nations cannot,
therefore, afford to be unfaithful TO their pecu-
mary obligations Credit to them, to individuals
is money; and money IL the war power Of the age But
for the unfacrng confidence OF the people OF tho loyal
States in the good aith OF the government the late re-
billion would have been s,cccss and this great nation
rapidly becoming again united and harmonious would
have been broken iOto weak and bcilgxent fragmens
But tho public faith OF thc United states has higher
considerations than these for it, support II rests not
only upon tho interests Of the people but upon their in
has been createdvby tho people in their successful
struggle for undivided and iDdivisibe nationality.
1t Is not debt imposed upon unwilling subjects BY
despotic authority but one incurred by tho people
themselves for the preservation OF their governmenby
the preser, alton of which those who haCe been cagued
together for lis overthrow are ~ DO really benefited
who have been battling for its maintenance. As
4 i debt voluntarily incurred for the common good IN
not permit them TO be permanent
WHAT THs DEBIT RErREsHNTs.
The public debt Of tho United States represents po1
ton of the accumulated wealth Of the country While
debt OF the nation, becomes the capital Of the citt
Tie means Of the merchant, manufacturer and
der have been literally invested In Il; and II IL an in
teesng faca practical evidence Of the great resources
OF the co1ntry-tha SO large an amount OF their wealth
embarrassing industrial pursuits Notwithstanding more
than two thousand millions OF dollars OF the means OF
people of the United states have boon thus loaned
branch useful industry has suffered by the Investment
Il Is undoubtedly true thai IL the wealth which has been
invested ia United States securities could have been
ploy ed in agriculture in commerce. In mining and
factures Npcnng farms and the better Improvement OF
those already under cultivation In building railroads and
ships In working the mines and In increasing the variety
aud amount Of manufactures the nation would have
been far in advance Of what II now is In material pros
pcry. Hut II Is also true that, Notwithstanding the
large Investments py the people OF the United States In
the securities Of the government Notwithstanding also,
alone we're for longer or shorter periods IN tho military
service and least seven hundred thousand for good
part or the time tho war continued were constantly
under arms and Notwithstanding the immense waste OF
life consequent upon operations 30 extensive and
battles 20 sanguinary as characterised this me.
has stll, since 1880, progressed both in wealth and
population. The loyal States have advanced
N material prosperity IN spite Of the great drain sha.
closed the Union Is longer poru, and tho that
made the armies both sides 30 ehective and form
dahe 70 be again employed In profitable pursuits
the onward march Of the country-even II temporary
reaction result Of the and the redundancy OF
the currency, shall be be decided and
resistless,
THE DEBT A NATIONAL sUnDES-r sHoULD AZ
EARLY POSSIBLE.
The debt large but II kept at home, a. It s desirable
49, ba n iudic 9yg
not be oppressive II 10, however, debt While II Is
capital 10 the holders Of the securities, Il 10 still
. nat onal debt, and an encumbrance upon the
national estate Neither Its advantages nor Its
burdens or can be shared or borne
equally 10y tie people. Its influences are anti-repub
II adds 70 the power Of tho Executive by incrcas
ing federal patronage. Il must be dstaseful 70 the
people because n6 the country with ipformers and
x-gatherers II is dangerous 70 the public virtue be-
involves the collection and disbursement Of vast