The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-04-21
The FINANCIAL SITUATION.
An Important Letter from Score
tary McOulloch,
His Views in Regard to an Early
' Return to 3 Specie Basis. ]

q M1' mVOuAiOCu, 10 answer 20 COmmu.
nication from 3. @. Carey, Esq, Of Phil
adelphia, writes under date of April 4. a
long letter, giving his views Of financial
policy, and explaining ID detail the mean
ing be wished to be attached to ia, FOL
LOWING, sentence in the address he recently recently
made TO eohcerso of his Departments
Ny chief aim WIN, Of course, b to- nto,,d.
the means to- discharge tho olaii6s u!ssm ~
Treasury Department at the, earliest iisv rr.c'
ticable; and 70 institute measures to brinc the
business Of the country gradually back to Z spe.
Gle standard, . departure from which (althoaivh
aging and demorslizine to tho people thaS AZ
pepsiye TO the Government. . roc -
Mr.. McOulloch says this, is the only
avowal Of policy which he had made or
expects to make, at least for the present
He then proceeds aF IN paa 9Ia -
eTs The former Of these objects, Is receiving
my FIRST attention. The sales ofthe 1910
notes Ghani which no more desirable seen !
rity will be offered to the public), which
have been temporarily diminished by the
Wall street panic, will /. am. hopeful be
soon again 80 increased as to put the Trea-
sury, in q condition. to. meet all SUSPENDED
acquisitions, and honor an drafts that NAV
b. made upon it; 90 that the different de-
partments, BY being in aconditien prompt
ly to meet their engagements, may be en-
abled to reduce largely the expenses Of the
Government. 70 ggig13m siti Bod sav
E9n The latter object seems to be in the
right train for Accomplishment by the ef.
+ fective blows of our military and naval
forces without anys interposition of the
Treasury Department, and in the face of
daily increase of currency through the
fundamentally of the National banks. III
You seem to be apprehensiye that the
return to specie payments is to be effected
by contraction of Government issues !;
and you cay that sin one thing all have
been disposed to unite, and that was that
+ an early resumption was the cardinal point
of my policy, and that it was to be sought,
at whatever cost to the capitalists and
workingl men Of the country" 0fl3
A resumption of specie payments is
with me ''cardinal point, because be-
ieve that the specie basis is the only safe
and healthy one for business; and because
Ram clearly of the opinion that the inte-
rests Of capitalists and working men will
be promoted by it; but no policy could
be more, unwise than that which should
attempt to accomplish it by such cur
tailment. Of the currency as would prostate
or niunously affect those great interests
upon the prosperity Of which the Govern
,mept depends for its revenue, and which
cannot be broken down or severely de-
pressed without depriying labor Of. its
proper reward. - '''''
The history OF, Wall street within the
last ten days sustains the correctness of
the opinion which, in another position,s l
have frequently expressed, that the high
price in gold was to be attributed in part,
at least, 10 other influences than the ex.
pansion of the currency, and seems to in.
dictate that the paper circulation Of the
country which has been issued or secured
by the Government, even whileits volume
is being increased, may appreciate nearly
to the specie standard. liu.lI Wass1i3il.,f'1
As the war draws to q CLOSE, and the
restoration of the Union ia no longer doubt
full, gold and currency approximate rapidly
20 each other In their market value, and,
Of course, all those articles which were
/ made to follow the former in its ascent,
must sympathize with 1t in its decline.
This cannot be prevented BY any action of
the Treasury, even II. the interests OF the
country required it, 1t might have been
better for the country and the people if
the decline Of coin should have BEEN more
gradual than has been the case for b week
OF two past, but it Is better that It should
have come down as It has, than that it
should not have declined at all. ''a's
81 It Is understood, believe, among those
whose habits Of personal indulgence lead
them into protracted excuses, that sober
/ ing off rapidly is dangerous experiment,
but dangerous as it may be it is preferable
to continued intoxication. go a,~,
=, It does not, follow, however, that be-
cause gold has declined from 1856 to 146,
and may speedily decline still further,
prices generally will fall to the same ex-
tent; MOI. do ]. believe that any permanent
decline which is likely to occur win pros
trate the great interests Of the country.
| On the CONTRARY, I am of the opinion that
when the specie standard is restored, or
nearly reached, the assurance which this
state of things will create-that the bust
ness of the country is to be transacted on
q frmer basis-will divert capital from
speculation, and stimulate, instead of pros
trate, productive industry. -
T. The, close, of the war will remove the
government in a. good degree from the
market, both as borrower and pur-
chaser; and while the business Of the coun-
try is being accolnmod dated to The new or
der Of things, there viii be, to consider.
able extent stagnation and embarrassment;
but as hostllities, are now likely to termi..
nate before speculation has resulted in
large Individual indebt eaness, the traapsi-
ton is likely TO, be effected without the
f disasters s which 50 al many any have appre-
liabilities Of the people are 8 small,
the circulating medium is So ample, and 40
well secured, the resources Of the nation
are so yasty and our political f future il so
brilliant that the embarrs ssnents Which a
che Tho h,,s,