Evansville daily journal. (Evansville, Ind.) 1863-1866, 1865-12-11
The Treasury Report.


The report of the Secretary of the I
Treasury we print in full elsewherei IN I
this column we present a synopsis OF us
most important statements OF fact ana
opinion, including the three topics OF
Currency, Public Debt, and Revenue,
and pursuing the order in which they
are treated by Mr.. McCulloch
/. The Currency - The key to the
policy which the Secretary advocates
may be found in the declaration of his
belief that the authority of Congress to
make the obligations of Congress legal
tender resides outside of the Constitu
ton, and that the imitation which has
followed upon the necessary exercise OF
that authority during the war is preja-
dicial to both public and private inter
ests. While, therefore, he does not
advocate the repeal of the legal tender
acts, Nor believe it possible 10 reduce
the volume of the currency By violent
measures, be is of opinion that those
acts should be regarded as only tend
porary, and that the work of retiring the
notes which have been issued under
them should be commenced without de-
Law, and carefully and persistently con-
tinued until all are withdrawn. The
rapidity of the process will depend upon
the ability to dispose of securities. The
specific measures recommended are as
follows: -
First: That Congress declare that the
compound interest notes shall cease TO
be legal iender from the. date of their
maturity. These notes were intended
TO be a security rather than q circulating
medium, and such a declaration-by Con-
gress would be neither injurious tosthe
public nor an act of bad faith tor the
holders N 8 8
~ Second: That the Secretary be author
lied in his discretion to seltbonds of the
United States, bearing interest at arate
not exceeding six per cent, land redeem.
abe and payable at such periods IS may
be conducive TO the interests of the
Government, for the purpose of retiring
not only compound interestnotes but the
United States notes. z . -
The amount which the Secretary es-
Inmates as necessary to be retired in, or
der to bring the currency within proper
limits is from one hundred to two hum
dred millions, in addition TO 7the com
pound notes, the amount ofwhichlatter,
Oct 81, was $l73,012,I4I, all due in
1867 and 1868. The total paper circu-
lation .of, the Unfted States at that date
was $704 ,21S, OBS, to which should be
added $4,000, 900, a,thea estimated
amount of compound. interest notes
actually in circulation, The total is
likely to be still further Increased by
the issue of notes to the National banks
now da,lu ro;pr ~ ord iJaaf;raJ fS~cov,
tinue till the limit of 100000, 600 au-
thorized by law shall have been reached,
as it win be at no distant date. Asbut
& $185, 100000 of National Bank notes
are included in the estimate of 1874.
2l8, 03S 20, there remain Sis, 100000
to be added, and the aggregate amount
of circulation will then be $849,2I8,
038 20.@aIf the Recommendations of the
Secretary in regard TO contraction be
fully carried out by retiring $500, 000,-
600 sof United States notes and the
$50, 100000 of compound interest notes
actually in circulation. there win still
remain a total circulation of $619,2l8,-
OBS 20, even snpposing that no exten-
sion OF the amount Of National Bank
notes now authorized to be issued be
granted by Congress. 1t is, perhaps, in
view Of these or similar calculations
that the Secretary adds to- his sugges
tions the remark that "neither the
amount Of REDUCTION nor the time that
will be.required to bring up the currency
, to the specie standard can now be esti-
mated with any degree of accuracy
The first thing Il, be done Is to 'estab lish
The policy Of contraction" * 4-
IL The Public Debk-Tle- Secre
tary regards il as public burden, the
, work of removing which should not be
Hong postponed he sees ne way Of do
ing that except BY an Increase :of-the
national income beyond the national
: expenditures. The first step is to fund
! the obligations that are soon to mature.
The next, to provide for raising revenues
necessary to pay the interest on the
debt, and certain definite amount an
nually for the reduction OF the .princi
< pal On the 3lst Oct, since which time
no material change has taken place, the
public debt amounted to 80, S0S, 549,.
437 So; for the Items of. which total
readers may refer to the report itself
Receipts for the fiscal year ending June
S0th, 1865, were 81 1896, $50, 533.24s OF
a Whch $oo4,ooSt4551I were from loanl
applicable TO expenditures, and 1907,
3el ,24l.68 from loans applied 30 pay
s ment of public debt, and $209s464, 2l5.
8 rs from internal revenue. sExpendi
! tares were $l.S9I674, 224 90, ofswhich
the War Department is charged with
81 ,03l, 1923, 36079; redemption of debt a;
8 above stated; interest on public. debt
OIL 81, 397,712 Balance July IstS 1865
$S5S, 309.15. Total increase of public
4 debt during the year, $941, 900, 53T04
- The receipts for the quarter ending
Sept Both, 1865, were $40, 226, ITO q
: expenses, 1878, O68, 254. SO; leaving bal
o ance Oct l, SCI, 158, 515.44S Estimated
receipts for the remaining 5three1 quar-
ters Of the year ending June. 30th3 1866
II are: , .