Smyrna times., 1865-12-13
The Treasu er's Report.


the New York T.tbuae:.
l. The Currency key to the polio
which the Secretary advocates NAV he foun,
in the declaration of his belief that the outbor
lty OF Congress to make the obligations of tb,
Government legal tender resides outside O
the Constitution, and that the imitation wbicl
mas followed upon the necessary exercise o
that authority during the war is preiudicial t.
Doth pubic and private interests. While
therefore, he does not advocate the repeal o
the legal tender acts, nor believe it is nossihl,
to reduce the volume of the currency by yjo
lent measures, he is of opinion that those act,
should 6c regarded as only temporary, and tina
the work OF retiring the notes which have bee,
ISSUED under them should be commenced with
out delay, and carefully and per>istcntlv con
ttnied until all are withdrawn. The rapidit,
OF the process will depend upon the ability tt
dispose to securities The specific measure, o.
recommended are as follows:
FIRST: That Congress declare that the com
pound interest notes shall cease to be lega
tender from the day of their maturity. These
notes were intended to be II security rather than
a circulating medium, and such declara;o,
by congress would be neither injurious to the
public nor an act Of bad faith to the holders.
Second. That the Secretary be- authorized in
his discretion to sell bonds of the United State
bearing interest at a rate not exceeding six ne,
cent, and redeemable and payable at such pc
RODS as may cOnduce to the interests OF the
government, tor the purpose of retiring nos
only compound interest notes but the United
States notes.
The amount which the Secretary estimates
as necessary to be retired in order to bring th,,
currency within proper limits is from one hun
dred to two hundred millions, in addition to the
compound notes, the amount of which latter
vet. 81. was SlI3, ,0l2, i4l, all due in 1867 and
1898; The total paper circulation of the Uni
ted States at that date was S704. DIS. .O3S. to
which should be added 100000. 600. the esti.
mated amount Of compound interest notes ac-
tuaily IN circulation The total is likely TO he
Stlll further increased by the issue of notes to
the National banks now daily going on. and
destined to continue till the limit of $3OO. 600.
wy authorized by law shall have been reached
as 1t VIII be at no distant date. As but SIS5.
oOo,OOu OF National Bank notes are included
In the estimate of $734.2lS.O3S 20. there re-
mains SIl5,0OO,OOO to be added and the ar
Eregate amount Of circulation will then be
$Sf9 ,2lS,O3S 20. 1t the recommendations of
thc secretary IN regard to contraction be fully
carried out by retiring $500, 0OO, 900 of United
States notes and the $50. 900, 900 of cOmpound
interest notes actually in circulation, there will
still remain total circulation Of S6l9.2lS. OBS
~, even suppOSing that no extension of the
amount OF National Bank notes now authorized
to be issued be granted by Congress. 1t is,
perhaps, i'll view of these or similar circulatons
that the Secretary adds to his suggestions the
remark that neither the amount of reduction
nor the time that will be required to bring nm
the currency to the specie standard can now be
estimated with any degree of accuracy. The
HrSt htHg To be done Is to establish the policy of
III. The Iiabtic Dcbt-The Secretary regards
1t as public burden, the work Of removing
"hlch should not long be postponed. lie sees
no way OF dong that except by an increase of
the national income beyond the national cxpen-
dltures. The first step is to fund the oliiga
tlons soon to mature. The next, to provide for
raising revenues necessary to pay the interest
On the debt, and certain definite amount an
nualiy for the reduction of the principal. On
the 3lst OF Oct, since which time no material
change has taken place, the public debt amoun
tcd to S2,S0S, ,549, 437 55. Receipts for the
hscal year ending June 80, 1868, were 81. .S9S.-
5@2,j j33 "a. Expenditures, 81 ,897, ,674, pa o.
Interest on public debt, $77,397,7 ,7I2. Total
Increase OF public debt during the year, $94I,-
gO2, 537 OF.
Inc past due debt on the 3lst of October.
beside the compound interest, the United
otates :. and the fractional notes. amounted to
: 800, ,92O 90; debt due in 1865 and 1866 to
, 10 10 ,o49, ,646 &c; debt due in 1867 and 1868 I'm
0d0' 0d0' oz@'?9l 81: of the latter item, $3.50 00O
UoU IJ,l'iSt OF 80 notes AS they are con
tIJ oIJlDic iI'o ponds only at the pleasure of the
holders, the Secretary desires to he autbo,;anI
to iund them, whenever it can be advanta@o
ously done, IN advance of their maturity 10
meet deficiency for the present fiscal wear Lo
desires authority to SELL in his discretion. hopJS
OF similar character, to reduce the temnorarv
loan, to pay maturing certificates of indebted.
ness, and also to take up any portion of the
debt maturing prior to 1869 that can be adyan-
retired. I" 1t is not probable" !" re-
marks the Secretary, that it will be adyisa-
ole even II 1t could be done without pressing
them upon the market, to sell much larger
amount OF bonds within the present or the next
Iscai year than will be necessary to meet any
deficiency OF the Treasury, to pay the past due
and maturing obligations of the Government,
and part OF them temporary loan, and to re-
ire an amount of the compound interest notes
ana United States notes sufficient to bring back
me business OF the country to healthier con-
lltion. But no harm can result from invest
ng the Secretary with authority to dispose of
bonds II the condition of the market will Justify
u IN order to anticipate the payment of those
opIngatlons that must soon be provided for"
ne Total debt on the lst Of July, 1866, is
j LL'iI..n@'eu y. aC S5lOOO,OOO,OOO. The Secretary
ceheVes the whole amount may eventually be
FUNDED at rate of interest from 5 to 81 per
cent oe % and ne suggests the application of $500,
OO0'Oo0 per annum to the payment of princi-
pal and interest together, by which the whole
would be extlngulshed in from % to 321 wears
Ill. Internal Rerenue. The Secretary re-
commends frequent and careful revision of the
system OF taxation, with view to its becoming
always more simple and productive. For spe.
cifc recommendations he awaits the report of
the special commission, expected early in the
present session. In reference to the Southern
States, the Secretary recommends that the col
lection Of taxes aecruing before the establish.
ment therein Of revenue offices be indefinitely
that sales of property for direct
taxes be postponed till the States have an on
portunity of assuming those taxss as the loyal
States did and that all transactions invalid
for want of stamps be, legalized SO far as lies
in the poEaNpf Congress. ..-