The Indianapolis daily herald., 1865-12-09

Nothing beyond this statement is required to
exhibit the present imitation or 10 explain the
causes Of the current and advancing prices.
III disaster followed the expansions of 1857 and
1857. what must be the consequences of the
present expansion unless speedily checked and
reduced!
The Secretary proceeds 70 answer objections
to the reduction Of the currency. He SAYS il
will not bc rapid enough 20 cause serious in
fury. lie thinks II will but temporarily re-
duce the public revenues. As it will lead to
solid steady business. He does not think il
will retard the sale Of bonds. and he thinks
the contraction i necessary to save the nations
al banks from explosion. The mode of re-
ducing the currency will be by converting
sreenbacks into long bonds. He proceeds:
The last objection which will be noticed TO
the measure recommended i. that il would. 5y
reducing the rate Of foreign exchanges, reduce
experts and increase imports.
1t Is doubtless true that a high rate Of ex-
change did for "A time increase the expectation
0f our productions. and diminish the impOrta-
tion of foreign articles, but this adv antage
was much more than couuter-balanccd 10y the
largely increased expenses Of the government
and Of the people resulting from the very
cause that produced the high rate OF exchange.
Besides. this apparent advantage no longer cx-
lets. The advance Of prices in the United
States. Notwithstanding the continued high
rate Of European exchange, l. now checking
exports and inviting imports. and i creating
q balance in favor Of Europe that II likely To
be the greatest obstacle in the way Of an early
resumption Of specie payments. Nor must il
De- forgotten. that while the export Of our pro-
ductlons was stimulated by the high rate Of
exchange. this very high rate II exchange en-
ablcd Europe to purchase them At exceedingly
low prices.
Unless an unusual demand Tor our products
j. created IN Europe hy extraordinary catlse-.
II viii be a>ccrtaiued. by reference To the
prVpcr tables. that our imports increase. and
our exports diminish. under the influence of
a redundant currency. But reference To fic-
ure> i hardly ne,'e>.ary to substantial thu
proposition. II j. suhStantated by the Stale
ment Of il. \ country in which high prices
prevail i inviting one Tor sellers. but IN ln-
inviting one fer purchasers. such a country
i unfortunately the uItc,l STATES AZ the ure>-
ent time. I'm order. however. that there may
be no Apprehension On thi> point. the attention
Of Congress i respectfully callCdto 4 clear and
Interesting paper from DR.. Ellcr. staii>tieian
e tEi~ department. accompany inS this report.
Lsery consideration. Therefore. that has been
brought ~ the mind ~ the Secretary confirms
the CORRECTNESS OF tllc views he has presented.
Ii the business of the country Rested upon a
stable basis. or il credits could lie Kept from
lcing still further Increased. there would be
lt>> occasion for Solicitusle on this subject But
such i not the fact Business j. not in
healthy condition: IL i speculative. feVcri>h
uncertain. Every day that contraction i de-
h.rred Increases nc difficulty 81 pres emitting
financial collapse. Prices and credits viii not
remain A. they are The tide will either r.
ceie or att anco; aHd IL viii mt reeedc with
out the exercise of the controlling power If
Congress
The SECRETARY. therefore. respectfully bat
earnestly recomulends-
itrss That Congress declare that the COM
hound interest note> shall cease % - legal
tender ftam the day of their maturity.
>.,cond Inst tn SECRETARY De- authorized.
Al thtlr discretion. - sell bonds Of the United
Stat.> be.rius interest 40 : rais not exceeding
siX pr ssst.. and rssieeW ahle and payable NJ
such periods n may be conducive u the in
tsrests OF the Go, eriimeHt, for the purpose II
retiring not onl- compound interest notes, hui
the nited states notes.
The SECRETARY al, anccs % the