The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-04-21
THE FINANCIAL SITUATION.
An Important Letter from Score
tary McCulloch.
His Views in Regard to an Early
Return to q Specie Basis.

Mr.. McCulloch, in answer to commu.
nication from Il. O. Carey, Esq, Of Phil
adelphia, writes under date of April 4, a
long letter, giving bis views Of financial
policy, and explaining in detail the mean
ing be wished to be attached to the fol-
lowing, sentence in the address he recently
made to the officers of his Department
y My chief aim win, of course, BE- to provide
the means to discharge the claims upon the
treasury sDeparment at the earliest day prac-
tica6le; and to institute measures to bring the
business of the country gradually back to 4 ara.
Gle standard, departure from which (althourh
for the time being necessity ID no len I3asn-
aging and dem0ralizing to the people than ex.
pensive to the Government. j, 80 - =
Mr.. McOulloch says this, is the only
avowal Of policy which he had made or
expects to make, at least for the present
He then proceeds: ~ 'Jil4 'I u, -
e7a The former Of these objects is receiving
my FIRST attention. The sales ofthe 1910
notes than which no more desirable secu-
rity will be offered to the public, which
have been temporarily diminished BY the
Wall street panic, will, I am hopeful be
soon again 80 increased as to put the Trea-
sury in q. condition to meet all SUSPENDED
acquisitions, and honor all drafts that may
be made upon it 90 that the different de-
partments, BY being in aconditien prompt
ly to meet their engagements, may be en-.
abled to reduce largely the expenses Of the
Government. 70 g7s5.i1aaI =. lid 2#-.
IN The latter object seems to be in the
right train for accomplishment by the eff.
fective blows of our military and naval
forces without anysinterposition of the
Treasury Department, and in the face Of
daily increase of currency through the
fundamentally of the National banks. 10
You seem to be apprehensive that the
return to specie payments is to be effected
by contraction Of Government issues !;
and you say that sin one thing all have
been disposed to unite, and that was that
an early resumption was the cardinal point
of my policy, and that it was to be sought,
at whatever cost to the capitalists and
workinglmen of the country" i
A resumption of specie payments is
with me "cardinal point" because be-
lieve that the specie basis is the only safe
and healthy one for business; and because
lam clearly of the opinion that the inte-
rests Of capitalists and working men will
be promoted by it; but no policy could
be more unwise than that which should
attempt to accomplish it by such cur
tailment. Of the currency as would prostate
or iniuriously affect those great interests
, upon the prosperity of which the Govern
ment depends for. its revenue, and which
cannot be broken down or severely de.
pressed without depriying labor Of. its
proper reward. .----
The history of Wall street within the
last ten days sustains the correctness of
/. the opinion which, in another position
have frequently expressed, that the high
price in gold was to be attributed in part,
at least, to other influences than the ex.
pansion of the currency, and seems to in.
dictate that the paper circulation of the
country which has been issued or secured
by the Government, even while its volume
is being increased, may appreciate nearly
to the specie standard. aN '.az1s.a.. -
As the war draws to q close, and the
restoration of the Union is no longer doubt
full, gold and currency approximate rapidly
to each other in their market value, and,
of course, all those articles which were
made to follow the former in its ascent,
must sympathize with it in it's decline.
This cannot be prevented by any action of
the Treasury, even If the interests OF the
country required it. 1t might have been
better for the country and the people if
the decline Of coin should have been more
gradual than has been the case for b week
OF two past, but it is better that 1t should
have come down. as it has, than that it
should not have declined at all. ''
It is understood, believe, among those
whose habits of personal indulgence lead
them into protracted excuses, that Sober
ing off" rapidly is dangerous experiment,
but dangerous as it may be it is preferable
to continued intoxication. ts 49,
,- It does not follow, however, that be-
cause gold has declined from 1876 to 146,
and may speedily decline still further,
prices generally will fall to the same ex-
tent; nor do believe that any permanent
decline which is likely to occur will pros
trate the great interests of the country.
On the contrary, am of the opinion that
when the specie standard is restored, or
nearly reached, the assurance which this
state of things will create-that the bust
ness of the country is to be transacted on
a 6rmer basis-will divert capital from
speculation, and stimulate, instead of pros.
trate, productive industry. 60.
|" The close of the war will remove the
government in good degree from the
market, both as a borrower and pur-
chaser; and while the business of the cOun-
try is being accommodated to the new or
der of things, there will be, to consider
able extent, stagnation and embarrassment;
but as hostllities are now likely to termi--
nate before speculation has resulted in
large individual indebtedness, tie transit
ton is likely to, be effected without the
disasters which 50 many have ,appre-
54; The liabilities of the people are SO small
the circulating medium is SO ample, aud so
well secured, the resources of the nation
are soFasts and our political, future i So
brilliant fhot fho opa &c 81 ~,