Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1865-12-20
THE TREASURY REPORT.

THE TREASURY REPORT.
Below we give synopsis of the report of
the Secretary of the Treasury, containing
its most important statements of fact and
opinion, including the three topics of Cur
rency, Public Debt, and Revenue. and pur
suing the order in which they are treated
by Secretary Mccullough:
|. The Cureacy The key to the policy
which the Secretary advocates may be found
In the declaration of his belief that the au-
thority OF Congress to make the obligations
of the Government legal tender resides
outside OF the Constitution, and that the IN
hation which las followed upon the necessa-
ry exercise of that authority during the war
is prejudIcial TO both pubic and private III
interests. While, therefore, he does not
advocate the repeal OF the legal tender acts,
nor believe 1t possible to reduce the volume
of the currency by violent measures he is
of opinion that those acts should be regard
ed as only temporary, and that the work OF
retiring the notes which have been issued
under them should be commenced without
delay and carefully and persistently continu-
ed until all are Withdrawn. The rapldlty OF
the process will depend upon the ability
60 dispose of securities. The specific meas
ures recommended are as follows:
First: That Congress declare that the
compound interest notes shall cease to be a
| legal tender from the day OF their maturity.
| These notes were intended to be security
| rather than circulating medium. and such
declaration by Congress would be neither
injurious to the public nor an act OF bad
| faith to the holders.
| Second That the Secretary be author
| lied in his discretion to sell bonds of the
mt at a raj ta
| exceeding six per cent, AID redeemab!e and
payable at such periods as may lie CONDUCIVE
| to the interests of the Governments for the
purpose of retiring not only compound III
terest notes but the United States notes.
The amount which the Secretary estl-
mates as necessary to be retired In order to
bring the currency within proper, limits Is
| from one hundred to two hundred milhenS,
in addition to the compound notes, the
amount of which latter, Oct 81, was $l73,-
OH, l4l, all due in 1867 and 1868. The to-
tai paper circulation of the United States
at that date was $I34 2lS,03S, to which
should be added $50, 600 ,O0O the estimated
amount of compound interes; notes actually
in circulation. The total is likely to tie stil
further increased by the issue of notes tc
the National banks now daily going on, and
destined to continue till the limit of $4,000,
600. 900 authorized by law shall have been
reached, as it will be at no distant date
As but $lS5, 900, 900 of National Bank notes
are included in the estimate OF SI34, 2lS, 03e
20, there remain SII5, 1000, 600 to be added
and the aggregate amount of circulation VII
then be SS49 2lS, 03S 20. If the recon
mendations of the Secretary IN regard tt
contraction be fully carried out by retiring
$500, 600, 900 of United States notes ano
the $50, 900, 600 of compound interest note
actually in circulation, there will still re
main total circulation of S619, PISCES 70
even supposing that no extension OF th'
amount of National Bank notes now author
lied to be issued be granted by Congress
1t is, perhaps, in view OF these or simlla
calculations that the Secretary adds to hl
suggestions the remark that neither tnt
amount of reduction nor the time that vii
be required to brir G up the currency to tn
specIe standard can now be estimated VIII
any degree of accuracy The first thing q
be done IS to establish the policy Of contrdc
tiOn
IL. The Public Debt-The Secretary re
CARDS it as public burden, the work OF re
moving which should not be long postponed
He sees no way of doing that except by au
| increase of the national income beyond the
national expenditures. The first step is t.
fund the obligations that are soon to ma
, ture. The next, to provide tor raising feve
nues necessary to pay the interest on tn,
debt, and certain definite amount annual
| ly for the reduction of the principal. VI
the 3lst Oct, since which time no materla
change has taken place, the public deo
amounted to S2,S0S, 549, 437 90; Tor tn
items of which TOTAL readers may refer !
the report itself Receipts for the flsca
; year ending June 80, 1865 were Sl,s9e'
532, E33 "a, of which 1864, 1868, 499 IL wer
from loans applicable to expenditures, AM
SCOT, 36l ,24l 6S from loans applied to pay
ment of public debt, and s2os, AGA 30 =
from Internal revenue Expenditures wer
81, 1877 GA, 224 Oe, Of which the War De Je
!, partment is charged with 81 ,03l 323. 36o -
redemption of debt sabove stated interes
on public debt. ST., ,397, 7l2. Balance Jui
| / ,2S65, 1858, 309 Is. Total increase OF put