The sun. [volume] (New York [N.Y.]) 1833-1916, 1865-12-06
SECRETARY OF THE TREASURY '

The Annual Report Of Hugh heCuiloch, the sccrs-
tAry Of the Treasury, presents . full exposition OF
the condition Of the national finances Tho seere-
tsry eonsrsustss the country the fact that II has
been enabled TO bear the expenses Of protraotcd
and eo-,y war nom its own r-.ouree-, and without
aid from foreign capitalsts, and derive, favorable
autury Of the ability OF tho nation to quidite all
the obligation, which IL has contracted Mr.. MeCul-
,OSh .ihrm. ,ho rsh, q GSqsr'.: ions q. all lime, ., to
convenient but tho risht 70 make Il, obllg lgs,onsa
legal tender for the psymen, % all public and private
which sanctions whstever acts may DO committed b.
the representatives Of the people for the defence Of
the nation In time Of extreme perl Tbs emergency
should no, be continued QUO moment longer
70 's specie payments. NJ II may not bo desirable
,o repeal the lav. Immediately, but a. Consre..
ecass ecsrs ".' msssur. m ,Ea vs. ONLY Intended an
emergency Of var, Is 70 tho credit Of the Govern
ment and the interest Of the people, 70 restore hs
conclusion the irredeemsbe pspcI money which
must reflect certain discredit upsn the uosernment
.Ss ,U%s sayansod IN favor q mailing 1si.ed
States notes pc rmsnent currency, ana sta'es tne
date i.ef 70 ,he wants Of trade and hrnishsd by
the Government, II would be liable 70 be Influenced
by the ysn. Of the IIe,sury ana me nser ~ ,Ss
people Secretary Mccullough traces the rel.tionship
between currency .na enc & ,ro ,sa
an inflated circulation produces oyer,trsdns and
high pricos, While contracted circulation causes
trade 70 a healthy basis. In 1904 the paper clreus-
tion amounted 10 S2Ul ,lO2vOp at tho present une
s7o4 4ocooc A. this eIeessiye circulation Increases
the cost Of Living and induces an unhealthy fsvct
,h state Of business the Sseieisy pr,es an imned,
ieeomm ends that CongIess shall declare thst thc
compound Interest note. shall cna,e TO be . loSh
tender IRON the date Of their maurity and that the
secretary 10 authorized to soll bonds ~ not
than st per cont. interest for the purpose Of
retiring not only the compound interest notos but
also the nited States notes Tho Secretary roiutes
the assertion that the policy OF contraction Will ehet
oise an uniayorsble influence on uushss Pc ms ~
national debt, which Amounted on the 5lst oi oct
last to total including fund. In the Lre.nry OF
f2S S,S49 43f. lie estimates that the total lndebt
edne. will he incre as.d the close OF the hseA year
July Goth, l.O6 W sa,OoOUnVo The secretary osti,
males that there viii DO deficiency o. Sll2lgtytI
year lsoi are Receipt. s99e,goVO. EIpsnditufes,
s2e4,sl1,lsl. surplus silio9-s' y, o.. N.,,onsi a.S,
| the SecIet.ry recommends the conversion OF
tho present bonds into Securities bearing
interest At hye and Eve aud half per cent WIN a
Arm but equitable system Of taxation to point that
will produce income over expenditures OF szVnOVU9
poa a,.ts., Of ia. nstiona debt The Interest on
| s3,OV1 OlOO0 at b per cent. amounts 70 sionVoNVo
m.pt q ths principal durins The mt year. A. The
amount Of interest will decrease With the successive
psym.nH Of the vsrIed sd Of a
years. The secretary thinks this plan s entirely
and In sccordanee With the resources Of
the country, and recommends its consideration by
Congress lie thinks that revision Of the tnx laws,
and . reduction and repeal Of the tar on certain
articles would tighten many Of It's burdens aud pro-
duce an increase Of revenue, The Reciprocity Treaty
| 10 regarded more favorable to Canadian than
United States Interests and It's continuance 10 not
| desirable. modification OF our tarin for the pro-
tectIOn Of United States pIoduceus IL recommended.
| Secretary McCuloch endorses the recommendation
OF the Comptroller OF the currency that the National
hanks shall be required W redeem their currency In
/ New YORK, Boston Philadelphia he number of
hAtona Banks red the 5lst Of October last,
VAS l6Ol, to which S2G5,OJ1UC In circulation had
been Issued. He opposes ANY immediate Increase an
| the further clTculA.iOn of national Bank Notes.
| (SigneD HrGu hOCULLoCn,
| A.cretaIy q tlG lIeAsurY.