Evening star. [volume] (Washington, D.C.) 1854-1972, 1865-12-05
THE REPORT OF THE SECRETARY
OF THE TREASURY,

the serious interests affected by his policy and
recommendations. Secretary McCulloch, in
TINS able document, says that the present legal
tender acts were war meas ures, and while the
repeal OF those provisions which made the
United States notes law full money is not noxv
recommended, the Secretary is Of the opinion
that they ought not TO remain in force one day
longer than shall be necessary to enable the
people to prepare for return 10 the constitu-
tLonal currency, and that the work of retiring
the MOTIFS which have been issued under them
should be commenced without delay, and care.
fully and persistently continued until all are
retired.
The rapidity with which the Government
notes can he withdrawn will depend upon the
ability of the Secretary to dispose of securities
The influences of funding upon the money
market VIII sufficiently prevent their too rapid
withdrawal. The Secretary, however be.
lieNes that decided movement towards a con-
traction of the currency Is not only q public
necessity, but that 1t will speedily dissipate the
apprehension which very generally exists that
the effect of such policy must necessarily be
TO make money scarce and To diminish the pros.
perity of the country.
Secretary McCulloch proceeds ut cousidera
bic length to show that there need be no APP
preheDSion that q reduction of the currency
unless it be n violent one-will nluriously at
feet real prosperity, and he points out the
plethora OF paper money is not only under
mining the morals of the people by encouraging
waste and extravaganza, but is striking at the
root of our material prosperity by diminishing
labor. The evil is not at present beyond the
control of legislation, but il is daily Increasing
and If not speedily checked, will, at no dis
Iant DAY, chlmlnate In widespread disaster.
The remedy, and the only remedy within the
cohlroi Oh congress, II, In the oprlon of the
Secretary, to be found in the reduction Of the
currency.
1t appears that, without including seven and
thIee-iehlhs hotes, many OF the small denomi-
NATIONS Oh Which were In circulation as money,
ana az oi "h!In tenu III some He;lsur to swell
amounted, on the 3st of October to the sum
Oh S'ot'Tio''-','<", ~hich mas been daily in
sIeas.u ~ t'ie no',S euCe lurmshed to The
Natlohdi bahhs, ana Is likeiy TO be still fur
ther increased by those TO which they are
utitu, until tne amount authorized by In "
(3N"G@COv) SHAH nave been reached, subject
10 Sucn ieuucIon Us may be made by the with
dTawal OF me notes OF the State banks.
ihfHe Hgurea are a history IN themselves,
exhlpitihg not only the past and present condi-
tion OF the country, In matters OF exceeding
interest,", put indicating unerrIngly the danger
gus uiiectioh III winch the financial CURRENT is
s"reephiheo3 ping, -.
~, Ol N me n.h Ea Septtmoer iast, me deposits
~, ,te ~: iuhs 'Ioile amounted 10 S1ii,-
ioc.iSf' ~ o"us-tsuin;itlhg their national
saIS III e,o DIS ioaa 10 me Government-to
Sea, insroosaG dnrir th items must nave
Lia , ,h ~ ~ nf 10, 80 ~ VI oSlooer
h.nIr .Id natinnsI h,d raanbad III .i G .i:
amounT 90 ,n,uord. of s~nn o,sn fnn nT ling
"d 1i fa,sna, u rr;ra NSih!ng
orsa. ~ = .t,on nr 70 aynIa;, ~ co ~ .he
., a.,d aS ,,no;OS ,ii;' -, IL ISIS VI Tue
loved The exnansionse 81 r. ~ and iSsS ioi.
nnst he tho cpnsennencps Of the nra.o~, 80, VIZ
Si.l MI ynha bod
~, ,,n1oInhtadiy, 80 49, 80 ECU
ON n,,ch 49, Eel, f- naab 10 10 IS Carried
The casa nrexioms 20 rc6I and tba, 80, We ever
- - - ,,ro,Sor -, - - 'icIc Is Il
- ,ennid 10 - 80 $50 .O .iiou,s man
10 ON crodit 10 a,so 80 80 ss nei e'o-
49, i,and IN a,, q 80 80, g. 80, 'hele Is
80 ~ nDanntacturers for tSa ,,,,-ot " tie
prat;Ias d., TnaL;nt ~ 49, % $500 -n' VI n OPP
60 60 ~ irnraanass 49,, S ai a'o~-
M -, ~ ~ ,r "a - " ueihalu AL
sung rom tn'se causts ana from the dyance
OF the country In business ana population, il
is apparent from the foregoing statements, II
the dYance in prices did not establish the fact
that Inc circulating medium OF the country is
altogether excessive.
Every consideration, therefore, that has been
brought TO the mind OF the Secretary confirms
the correctness OF the views he has presented.
II The business OF the country rested upon q
stable basis, or IL credits could be kept from
being SUN 1uTtner increased, mere would be
such is not the fact. Business is not in q healthy
condition; it is speculative, feverish, uncer tain
livery day that contraction is deferred in
creases the dlfncuity OF preventing financial
collapse. Prices and credits Will not remain
as they are. The tide will either recede or adj.
vance; and II VIII not recede without the exer-
else OF the contIoiiins power OF congress
The Secretary, therefore, respectfully but
earnestly recommends
FIRST. mat congress declare that the COM
pouhu IhIeie 81 NOES snaii ctase 70 De legal
telutr from me DAY OF tneiF maturity.
second nat the secretary De uthoriZed, in
ms oiscreuon, TO sell bonds OF the United
Ho'a'oS, oeoiiis iAleieSt IL u iaie nole&ceedlng
Elk pei cent, anu reueehapie ava payable al
such porous as may De cohaucive 10 The inter-
rsts Oh tue government, lot the purpose OF
ienrIne not oniy compound interest notes, but
tne Ihi'eu States notes.
rs the opinion OF the secretary, rs has been
already slated, that the process OF contraction
cannot he lnJuriously rapid; and that II Will
not De NECESSARY 10 retire more than one hun
aTea, or al most TWO hundred millions of
ohilea states notes, IN addition to the COM
attainad' Bnt netiher The anoun resu. VIII De
nor the time thai vii, he ra Uua OF reauction,
the currency 10 The snacia stantarS LIE W
h.. estimatei win an " 1erraa 81 ao,o t ,,,
first thing to he done is 70 astahIiSh rb 81 ne
of contraction When this is eff.ctad ,bpp 81.
retary believes that the business of tho go,
fry viii readily occommodare ;,SoIF 20 ~ = go
n0sed change I'm The action or the c,o,1on nv pr
and that snacia n,ymsnts 49, - '-nt.iou';
without shocE 10 $50 90 80 &c iestoltu
utiUn of The nubiic revenues ~ nrodno,i,n In
dustrv Va P1o0"@"'e iH-
Vor,ous n,.ns baya ,aar s,...,
nsvment az III. dsb, bUt ,h e"ss%teu LOT the
no w.y of occon1nI;Sbinr - -, I e'utNy sees
of ,he national INCOME hsronG ,h ny a., INC eIse
nendi,nrps Tn a nattsr ~ Wv. na.ional ex-