, 1865-04-12
NATIONAL FINANCES
Important Letter from Secretary
McCulloch,
The Resumption Of Specie
Payments Eousidered,

sS<t&A6&U6&00s
lac 1oAowing letter has just been sent
aenf5 =. Carey, tile political economist,
1onaoelpna, hy the ne. Secretary Of il
| ohhAsoRf DxPARTNHNT, April 4, 1885,
UE4R e1R Your favor of the 9Th attn
"ouia nave received IN earlier renIv hnt r
pressing official duties, [ have ,,oE .on1
ume 70 remark briefly that I am not reano,
sin.e shae to1 Tnst the newspapers may have saj
secrat oas Inc i 1nanclal policy1. ahal adopt
| amid the great events that ara transnsrin
IN the United States, oyertnrning ti'eari. i.
sna eontounding the wisdom Of the risest.
secretary Of the Treasury who should aro1
Or even determine definitely in hls own min;
Ms future policy, would be pronounced a bo1i
~ Timer 1lan sensible man. What shs
a14 a. th 20 10 u TO Watch carefully thu progrcs
- ri ine s,S Ssenas H. mat may be unable to cor
administration Of the Treasury to thos
events a. to maintain the credit Of the Gov
people. 'AA's'Se'' VI vi
II the brief address which made to tb,
EnI1oc1ple officers Of the Department on In
cbcf n s' ~, IN faia ~ among other things
means to discharge the claims upon th' III
Ireasury Department at tha sar1test 5s,
Practicable, and to Institute measnras =
bring the business Of the country 0rad,a,H'
hack to the specie Standard, dcpsrtnr. fron;
which (although for tin. being neceasltY
10 no less damaging and demora!iztng TO Ii;
people tHAn expensive to the Government =
Inns is the only aYowal of policy which
made or expect to make, at least fol the pres
The former of these objects IL r.co,vinr r,.
first attention. The sales of the SoYen-thirty
notes than which no more desirable securit1
VIII be ofiored to the pnb1ic) n nhich have been
temporarily diminished BY the Wall street
creased ~ to put the Treasury In q condit1nn
70 meet ~ suspended acquisitions, aad honor
- ~ dIaIts I That may be made upon it; 30 that
ths different departments, bT being In ron
dihon promptly 10 meet their engngensnts
may be enabled to reduce largely the e1psnsei
of the Government.
The latter object reems to be in the rjeht
train tor accomplishment by the etTectlys
blows Of our military and naval forses t viii.
cut any inte5position Of tho Tressurv D.n.rt. %
ment, and IN tho face of a daily iricreaso Of
currency through the iastfumentalIty Of tke
national banks. - s"'
}on seem to be apprehcnsive that the r..
tuin 70 specie payments Is to he effected bF 4
contraction OF Government Issues; and Tou
cay that in one thing all have disposed to
unite, and that Has that an early respmntIos
vas the ca1di, Il point OF ny policy. and that
1t WAS 20 lie sought at Whatsoever cost to the
capitalists and working men Of the country. y
A resumption Of specla payments il with
me :. car diual point" because I belieys that
the spectu basia IL the only safe and healthy
one Tor buslness, and because an
clearly Of the opinion that the Interests Of
capitalists and working men will be promoted
BY 1etu,n to It; but no policy could be
more unwise than that which should attempt
to accomplish It BY such curtailment Of ttlo
currency as would plostrate or iniuriously IT.
feet thoso great interests upon the prosperity
Of which the Government depends for its
revenue, and which cannot be broken down
OF severely depressed without depriving labor
OF Its proper reward.
The history OF Wall street, within the 1ast
ten days sustains the correctness Of the opin-
ion which In another position I hxve frs-
quently expressed, that tho high price OF
geld WAS to be attributed in part, vt least, to
other Influences than the expansion Of The
and seems to indicate that the pa
per circulation OF the country which has
been Issued or secured BY the Government,
even while its volume is being increased, NAV
nearly to the specie standard.
a. the war draws to close, aud the resto-
ration Of the Union IL no lonEsr doubtful.
gold and currency approximate rapidly TO
each other in their market value. and of
COURSE all those articles which were made to
follow ths former In its ascent must sympa-
thizc with 1t in its decline. This cannot be
prevented BY any action Of the Treasury,
even If tho interests Of the country require It.
It might have been better for tie country
and the people that the decline ofcoln should
have been more gradual than has bsen ths
case ior the week or two past, but It i1 better
that II should have como down as 1t has than
that it Ahonld not have declined at all.
It is understood, I believs, among those
whose habits or persona1 indulgence lead
Them into protracted c1ccases. lhat "8obsr.
ing OF" rapidly IL dangerous experiment;
but dangerous ns It may be, 1t il preferable
10 continued lnto1lcanon.
Il does not follow, however, that because
gold has declined from 1856 to 14G, and may
speedily decline still further, prices generally
viii tall to the .ame extent; nor do believe
that any permanent decline which IL likely to
occur will PROSTATE the great interests OF the |
country. On the contrary, am Of the opla-
Esn that When the specie standard il restored,
or neal reached, the assurance which this
state OF things will create-th2t the business
.: the country is to be transacted on a flrmer
basls-N1ll divert capital from speculation,
md stimulate, instead Of prostrate, produc-
live industry.
s1nrnent in good degree from the market,
white the business Of the country i. being &C.
,emmc6atea to ths new o,dsr Of things, there |
viii be, to considerable extent, staynatlon |
md embarrassment; but as 'heBtllltles are |
row likely to terminate before speculation |
has resulted in large individual indebtsdasss,
lhe transition il likely to be effected without
the disasters which 80 many haTs appte- |
aepded.
The liabilities Of the people are 70 small,
tbe circulating medium is so ample and 10
veil secured, the resources Of the nation are
10 vast, and our political future is - brilliant,
hat tie e1nb4rraasments which 4 change In
he business Of the country must bring aoout, |
will be but Temporary, and the indications |
.5s new decided that ey the tims reso1sir1s "a, T.
luicksned fnte new Il, and with its natex7ity !
Established, "a 10 only a7ayoaek Hpo. !
'ie': upon the natbnal escutcheon
tmovea, ths great Republic vii.
move forward again on us career of prosper
t. and honor, scalce!y staggered by such |
trugglc With gigantic 1ebellion II would
lave hroAen ANY yother nation into fragments.
fou will perceive By the statement Of the
lat The Government circulation has not
zen diminished. Nhetherfor to what extent |
bis circulation will BE- reduced depends upou !
rcumstances that cannot now be clearly
'reseep. I have been, and still am OF the
p!nion, that 1t must be curtailed before a
tufn TO specie payment can be effected
1t IT cannot be denied that lhc course Of the !
arkct for the past month has been such as
justify reconsideration Of the opinions |
a1eh have been 30 generally entertained in
latlon to the ln1atiOn of the currency. The
creased demand for money which Is the re-
II Of the aiminution Of Individual credits,
y not have been fully estimated and 1t
- turn out that no considerable reduction |
paper circulation will be needed for the
EtoIalicn Of the specie basis. at all events,
c Government will have no interest in re.
ing its diHct Issues If the desired object
shout it.
That sny vnluble interests are to be perma-
ntly injured by return TO specie payments
hardly cndiDle, and I cannot but think
at your apprehensfons of disaster to the |
anu'act turing interests Of Pennsylvania, ns
c result Of it, are without reasonable
II dation-
The general tariff policy is, apprehend,
tiled By our national debt. The discussion
1t, Therefore, at the present time is uunec
sary. That the present tariff needs revi-
"A is undoubtedly true. This revision 1t
II receive By the commission which IL to be
pointed to revise the revenue laws, from ,
loee lahors I anticipate the hest results. a !
The necessities Of the Government will gIye
our manufacturing interests all the protec-
n they will require to shield them from
reign competition and before the close OF
c present Administration confidently eI-
ct to see these interests more prosperous
ions shall make to Congress- upon the
riff question, am not now prepared to
=. expect to be able to endorse the bill | !
at shall be prepQrea BY the commission, |