The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1865-12-12

Unlss. q anasual dsnand 70. our prodssts|
lisnnente6 =. Ennnnaal lAn1nnan ennaalp
& yin IS ascefsdined, 81 reference = proper
po DsI di$in;s6, under ths ialisnoe d rsdan-
s s:ss,l 1s .s E s ssess !.
t.s. county in With Ssra ps;JeS prevail
i "A inxifine ons for sellers, but m uninyi-
| ting one for purchasers, Such = country IA
dnfortanAtely the United SsAtcs At the p>es6ho
time. In order, however, TINT there may be
e, gDs:: $ a.sasss; ss lie ', .
lclear, and inerestisx payerksnsDx Elder,
statistician OF this department, accompanying
this report. & I.5l0L eaLL
To which it may be said, that it is better
that the banks should be embarrassed now
than bankrupted hereafter. Their business
and their customers are now upder their CON.
troll What win be their condition in these
tnspects, if the expansion coniilusss and
swells o year or two longs,sit is difficult to
predict While there has been no unhealthy
expansion of credits in the United States for
| which the banks have NOT sbcee- largely re-
sponsible, there has been none BY. which they
4 have not been ultimately the losers Unless
their sentiments are misunderstood by the
i Secretary. the conservative bankers of the
country are quite unanimous in favor OF q
curtai mentdf thGcunency, with view to
an early return to specie payment
Again 1t is said that the excessive bank
deposits have a. mach influence in creating
and sustaining high prices as q superabundant
currency. This is unquestionably true but
! it is also true that excessive deposits are the
effect of excessive currency, and that when
ever the currency is reduced there viii be, at
! least a corresponding, if not a greater, re-
/ duction OF deposits.
The last objection which will be noticed to
I the measure recommended is, that it would,
! by reducing the rate Of foreign exchanges,
, reduce exports and increase imports.
Every consideration, therefore, that has
+ been brought to the mind of the Secretary,
confirms the correctness OF the views he has
presented. lf the business Of the country
/ rested upon stable basis, or if credits could
be kept from being still further increased,
there would be less occasion for solicitnde on
+, this subject. But such is not the fact Busi-
ness is not in healthy condition: it is spec
4. ulative, feverish, uncertain. Every day that
: contraction Is Ue1pTfeu lnEEehSbs the ulIUGuitN
of preventing final collapse. Prices and
credits will pot remain IS they sra. I've tide
viii either recede or advance and II will not
recede without the exercise OF the controlling
power of Congress.
I RECOMMENDATIONS OF THE SECRETARY.
4 The Secretary. therefore, respectfully but
earnestly recommends:
: First. That Congress declare that the com.
pound interest notes shall cease to be q legal
tender from the dag Of their maturity.
Second That the Secretary be authorized.
/ In his discretion. TO sell bonds of the United
States, bearing interest at . rate not exceed
ing six per cent. and redeemabie and payable
At such periods as may be conducive to the
4 interests of the Government, for the pnrpose
of retiring not only compound interest notes,
but the United States legal tender notes.
II Is the opinion of the Secretary as has
been already stated, that the process of con-
traction cannot he iniuriously rapid and that
it will not be necessary to retire more than
! one hundred, or at most two hundred millions
of United States notes, in addition to the
compound notes. before the desired result
, will be attained. DO. neither the amount q
reduction, nor the time that will he required
to bring up the currency TO the specie stand
! ard can now be estimated with any degree OF
accuracy. The FIRST thing to be done 10 TO
! establish the policy Of contraction. When
that is effected. the Secre.ary believes that
/ The business OF the country @lh readily a.
commodore itself 20 the proposed change in
the action of Government, and that specie
payments ma be restored without shock TO
/ trade. and without . dimnmtlo of the public
/ revenues or Of productive industry.
sAISTExaXcE or THE PUBLIC FAITH.
The maintenance Of public faith is ma
J Il Az, Il ,oS
safely accumulate money to be used at fa
ture day, and exigencies are constantly occur
1 ing in which The rlshest and most powerful
are under the necessity Of borrowing. The
millenial days, when nations shall beat their
swords into ploaaaHhsres, and their spears
into pruning hooks. and learn war no more
are yet. according to all existing Indications
far in the future. Weak and defaulting ma
lions may maintain u nominaliy iudependsnt
existence. but i, viii be by reason Of the jeal-
ousies, rather than the forbearance, Of
stronger powers. No nation is absolute "
safe which is not in a condition to defend it.
self: nor can it be in this condition. no matter
how strong in other respects. without we'll
established financial credit Nations cannot.
therefore. afford to be unfaithful to their pc
cuniary obligations. Credit TO them as to
individuals. is money and money is the war
power of the age. But for the unfaltering
confidence of the people of the loyal States
in the good faith of the Government. the late
rebellion would have been a success. and this
great nation, so rapidly becoming again unit
ed and harmonious, would have been broken
into weak and belligerant fragments.
But the public fith of the United States
has higher considerations than these for its
support. 1t rests not only upon the interests
of the people. but upon their integrity and
virtue. The debt of the United Stiles has
been created by the people in their successful
struggle for undivided and indvisible nation
ality. 1t is not debt imposed upon unwil-
ling subjects by despotic authority, but one
incurred by the people themselves for the
preservation of their government-by the
preservation of which, those who have been
leagued together for its overthrow are to be
as really benefited as those who have been
battling for its maintenance As it is a debt
voluntarily incurred for the common good,
its burdens will be cheerfully borne BY The
people, who will not permit them to be per.
manent
THE PUBLIC DEBT.
The public debt OF the United States repre-
sents portion of the accumulated wealth oil
II the country While il is n debt of the nation