Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1865-10-21
THE NATIONAL FINANCES.
SECRETARY McCULLoCH's OPINION
OF THEM.
An Important speech from Him.


The Gazette publishes speech made by |
Secretary McCullech, at Fort Wayne, Indi- |
aua, on Wednesday night, in which he gives |
his views on the national finances He said |
he was not one of those who seem to repudi-
ate coin as measure of value, and to make
a sound paper currency the standard; on
the contrary he belonged to that class OF
persons who, regarding an exclusive metallic
currency as an impracticabe thing among
enterprising and commercial people, ,neverthe-
less looxsppon an irretieemable currency as
an evil v]>ich circumstances for time may
render NECESSARY, but which is never to be
sustained as policy. BY the common con-
sent of nations gold and silver are the only
two measures of value they are the neces
sary regulators OF trade,
He favored well secured convertible pa
per currency. No otker can to any extent
be proper substitute for coin 1t is not
expected that there will be dollar in coin
in reserve for every dollar Of paper in circu-
lation; that is not necessary. For all ordi-
nary home transactions paper currency is
sufficient; but there are constantly occurring
periods when the balances between countries,
and in the United States between the differ
ent sections, must be settled in coin. These
balances are insignificant, and, in compari
| son with the transactions out of which they
arise, and when vicious system of credit
does not too long postpone settlements, they
are arranged without disturbing the move
mcnts of coin. Whenever specie is needed
| for this purpose, or for any other purpose,
the paper currency of the country should be
convertible into it; and circulation not so
convertible will not be, and ought not to be,
tolerated by the people.
The present uncOnverti be currency of
the United States was necessity OF war;
but now as the war has closed, and the
Government ought not be q borrower. the
currency should be brought up to specie
standard and he saw no way of doing it
but 10y Withdrawing a portion of the circn-
lation. He had no faith in u prosperity
which was the defect of deprecated cur
rency; nor could he see any safe path to
tread but that which leads to specie pay.
ments The extreme high prices now pre-
vailing indicate that the business of the
country is in an unhealthy condition. We
are measuring values 10y false Standard
We have Il circulating medium altogether
larger than is needed for leglmate business
and the excess is used in specuations.
The United States to-day is the best mar.
ket in the world for foreigners to sell in
The consequence is that Europe is selling
us more than she buys from us, including
our securities, which ouhgt t. 60 abroad
and there is debt rolling up against us
that must be settled in part at least in coin
The longer the initiation continues the more
difficult it will be for Us to get back tc
specie payments to which we must return
sooner or later If Congress shall, early in th,
approaching session, authorize the funding
of the legal tenders, and the work of rcduc
ton is commenced, and >cheerfully and pru
IDENTITY carried on, we shall reach it probably
without injury and embarrassment to lega
business. If not, we shall have n brie
period Of seductive prosperity, resulting ii
WIDE spread bankruptcy and disaster. He
spoke of the evil tendency of the present in
: flation on the public morals, converting
the business Of the countrY into gambling
and seriously diminishing the labor of the
country. We are apparently getting richer
when morality langulshcs and the produc
tive industry CT the country is being dimn
ished. He was hopeful that by wise legisla
ton we will escape financial collapse, ant
that the currency may be brought to til,
specie standard without these fnancia
troubles which have in all countries follow
ed protraGted and extensive wars.