Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1865-12-15
REPORT OF THE SECRETARY OF
THE TREASURY.

THE TREASURY.
The Hon. Hugh McCulloch, Secretary
ofthe Treasurer has submitted his annu-
al report to Congress. 1t is clear, sat
isfastory document, and represents, the
finances of the country to be in very fa-
vorable condition. He regards, as next
important to the restoration of Federal
authority over the Southern States, the
great questions of Currency, Revenue and
Public Debt. These subjects are present
ed in plain business-fke style, and dis
cussed in mannerwhich shows close in
vestigation and thorough knowledge Of
all their details. He does not hesitate to
present his own views in relation to the
subject, and very candily ask Congress
to consider them and reject or accept as
their wisdom may direct.
He says, ''the fact that means have
been raised, without foreign loans, to meet
the expenses Of a protracted and very cost
ly war, is evidence, not only of the great
resources of the country, but Of the wis
dom of Congress in passing the necessary
laws, and of the distinguished ability of
the predecessors of the present Secretary
in administering them" Following this
he goes on to say that the legislation which
was eminently just and wise during the
progress of the war may not be proper
now that peace is restored. This he Of
fers as an introduction to a discussion on
the right of Congress to borrow money,
negotiate loans and place before the peo-
pie circulating medium sufficient to
carry on the Government in times when
the national safety is at stake he thinks
unquestionable; but argues that such cir
culation should not be continued longer
than necessity requires. In considering
this the Secretary says: "The present
legal tender acts were war measures, and
while the repeal of those provisions which
made the United States notes lawful mon-
ey is not now recommended, the Secreta-
ry is of the opinion that they ought not to
remain in force one day longer than shall
be necessary to enable people to prepare
for return to the constitutional currency"
1t will be seen that no violent reform is
recommended, but gradual contraction
ofthe currency by which no class Of per-
sons will be made to suffer. He deplores
the theory that favors United states notes
as a permanent currency because they
save interest and are of inferior value,
urging as objections, that the paper cir
culahon should be flexible, increasing and
decreasing as business demands, instead
of being governed by the necessities of the
Treasurer or the interests Of particular
parties; and that the United States Gov
ernment being one of the limited powers
and possessing no authority for issuing
notes as money, cannot legally do SO un-
less in great exigencies. The war being
over, the ,ecretary advises that all laws
exercised for the preservation of the coun-
try, which are not express y granted in
the constitution, be gradually abolished.
The change recommended is not an i'm
mediate one, which would have ruinous
effect upon business, and seriously de-
range the welfare of the whole country,
injure private property, spoil the country
Of its revenues and hurl gross injustice up
on the holders of government bonds; but
a noiseless and steady withdraw of notes
as fast as such work can be effected. The
inteIest-bearing notes, however, which are
security instead of circulating medium,
he advises Congress to take up as soon as
they shall mature, claiming that it will
neither be bad faith to holders nor ipiur-
ious to the public 50 to do.
The Secretary believes that public ne
cessity demands movement towards
contraction of the currency, believing that
it would dissipate the general apprehen-
siou to the effect that such policy would
make money scare and injure the national
prosperity. His theory is this: "Money
being an Improbable article to hold, very
little is withheld from active use, and in
proportion to its increase prices advance;
on the other hand, reduction of it redu-
ces prices, and as prices are reduced the
demand for it fails; so that paradoxical
as it may seem, diminuion of the cur
rency may, in fact, increase the supply o,
it."
The Secretary advocates coin basis as
it has, everywhere, the same standard val
ne; and thinks we suffer in our intercourse
with other nations from the fact that we
must either pay in coin expand our credit
or carry forward the balances, thus en-
baressing ourselves, when, if our money
obstacles were not in the way we might
be pretty nearly even. He think the VIC
ious system of credits prevents the speedy
settlements of balances, thus leaving the
balance of trade with Europe instead of
the United States. In noticing the ex-
pansion of currency, he refers to the great
Initiation of 1856, resulting in the fnan-
cial collapse of 1887, and also to that of
1857. The comparison drawn between
then and now is very favorable to the
present time, even though we have just
emerged from fearful and oppressive
war; it is this: "The people are now
comparatively free from debt; the banks,
with their secured circulation and large IN
vestments in government securities, al
though not in an easv condition, and doub+-
less too much extended, are it is believed,
generally solvent" He asks for con-
traction il the currency while the evil can