Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1865-12-15


Precious gifts he brought;
Satin, sandn skcn dress;
Richer ne'cr wrought;
Gems that made the daylight dim,
Plumes in gay gold set
But the gaud gave to him
Father-I forget!
Ora pro inc!
Father Father confess
Hes my beautys thrall;
In the lonely wilderness,
In the festive nall;
All his dreams ure aye of me,
since our young hearts met;
What my own may sometimes be-
Father-l forget
Ora pro me!
4 Report of the Secretary of the Treasury.
The annual report of Mr.. McCulloch is Of SO
great length as to preclude its publication en-
tire in our coums. lie begins by alluding TO
the great importance Of the financial questions
embracing the currency, the Public Debt, and
/ the Revenue, all of which demand the early and
careful attention of Congress. The fact that
means have been raj ed TO carry on the war
without recourse to foreign loans is considered
not only as evidence of the great resources Of
the country, but Il the wisdom of Congress,
and the ability Of the Secretary's predecessors.
The right Of Congress, at all tines, to bor-
row money and to issue obligations for loans in
such form as may be convenient is unqueslion-
able ; but their authority to issue obligations
for circulating medium as money, and to make
these obligations legal tender, can only be
found in the unwrilten law which sanctions
whatever the representatives Of the people,
whose duty il is to maintain the government
against its enemies. may consider in great
emergency necessary to be done. The present
legal tender acts we're war measures, and while
the repeal OF those provisions which made the
United States notes lawful money is not now
recommended, for the reason that it might in
juriouSy affect the business OF the country, 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 a
return 10 the constitutional currency.
The Secretary proceeds to argue against the
expediency and constitutionaity of the govern
ment undertaking TO furnish permanent cur
rency for the people, making ii legal tender
for public and private debit He recommends
that the work of retiring the United States
| notes should be commenced at once, and con-
tinued until all are retired. In regard to the
interest bearing notes, it is recommended that
after their maturity they should cease 10 be a
legal tender
The rapdity with which the government
! notes can be Withdrawn will depend upon the
ability of the Secretary to dispose ol securities
market will sufficiently prevent their too rapid
withdrawal The Secretary, however, believe,
that decided movement toward Il contraction
OF the currency is not only a public nece sy
but that it will speedily dis>pa!e the apprehen
sion which very generally exists, that the effect
! of such a policy must necessarily be to make
money scarce, and TO diminish the prospert,
ef the country.
The Secretary explains the disadvantage
! arising from an irredeemable paper currency
and its disastrous influence upon labor, trade
and commerce, by al undue enhancement g
| prices.
1t is admitted that undue expansions of Tho
| currency sometimes occur while the banks ar,
nominally paying specie.
The great expansion of 1885 and 1886 end
ing with the terrible financial collapse Of 1887
was the consequence of excessive bank crcula
ton and discounts, and an abuse of the crrdi
system, stimulated in the first place by Gov
ernment deposits with the State banks anC
swelled by currency and credit until, under tn,
wild spirit Of speculation which pervaded tn,
country labor and production decreased t.
such an extent that the country which shoull
have been the great food producing countr,
OF the world became an importer ofbreadstufis
The balance of trade has been for a long ii i'm
favorable so Europe and against the United
| DldteS, ana also III ldNOr ul tnt COmnefCll
cities OF the seaboard and against the interior
but a vicious system of credits prevented til,
prompt settlement of balances. 1t then seem
ed to he more reputable to borrow money thai
to earn ii, and pleasanter, and apparently NOR
profitable, to speculate than to work and 81
the people ran headlong INTO debt, labor de
creased. production fell off, and ruin follow ed
The financial crisis of 1857 was the result q
a similar cause, namely, the unhealthy exten
sion of the various forms OF credit.
The initiation following the suspension @
1861, is the result OF heavy expenditures by tn
Government in the prosecution of the war an,
introduction of new measure of value in tn
form Of United States and Treasury notes a
lawful money The country, as whole is ia
in advance in real wealth of what it was i
1857, when the last severe financial crisis &c
cured. The people are now compalativel
Iree from debt; the banks, with their secure
circulation and large Investments in Govern
ment securities, although doubtless too niue
extended, are, it is believed, generally solvent
but the sane causes are at work thu produce,
the evils referred to. There is an immens
volume OF paper money in crculation-undt
the influence of which prices, already enor
mously high, are steadily advancing. and spe,
ula;ion-is increasingly must be conrac
ed if similar disasters would be avoided.
There are no indications OF real aud permi
= nent prosperity in our large importstcns of to
eign fabrics in the heavy operations at OF
commercial marts in the splendid fortune
l reported TO lie made by skiliu manipulation
{ the gold room or The stock board no evidence
OF increasing wealth in the facts that railroad
and steamboats, are crowded with passenger
and hotels with guests, that cities are full
e overlooking, and rents and the prices Of Il
$ necessarles OF life, as well as uXurieS are dai
5 advancing. AN these things prove rather lh
q foreign debt is being created, that the nun
u Ger of non-producers is increasing and tn
u productive industry is being diminished The
Is is no TACT more manifest llan that the petho
y OF paper money is not only undermining II
= morals OF the people 10y encouraging waste al
70 extravaganza, but is striking at the root Of o'
, material prosperity by diminishing labor. II
y evil is not at present beyond the control of lie
" islaIion, but it is daily increasing, and il II
)" speedily checked, WILL at no distant day, c,
inmate in widespread disaster The remed
- and the only remedy within the control Of Co
N gress, is, in the opinion of the Secretary, TO
found in the reduction of the currency.
y The paper circulation of the United Stat,
il on the 3l,t of October last, was substantial
f as foows
ne I. 5. and fractional currency S4642ls,o3s;
2 Notes Of the National Banks $4,000 900,
.y 3 Notes Of State Bunks Including
IS outstanding issues Of State Banks
al converted into National banks, $4,000 900
H. sT0l2ls ,o3s
10 Of f1 sba1t tn ta N,t RAJ