Litchfield enquirer., 1865-12-14

~ 70 and good will; and finally does up our foreign .,aa relations with great ability. a L ------~> ss.; , ,..;.a Report of the Treasury.
 '.sg The public debt on the 3lst ult, was s274O, ea 854,750. The Secretary urges the importance
 of funding the national debt and recon mends that Congress declare that compound interest < notes shall cease to be legal tender from the
 day of their maturity that the secretary be au sr thorzed at bis discretion to sell United States o1 bonds bearing interest st a rate not exceeding !" six per cent, and redeemable and payable at aS such period as may be conducive to the in. 'E terests of the government, for the purpose oi eoreliving compound interest notes. t'e"a,as
 ~, He is in favor of taking immediate measures |, to reduce the principal of our debt, and propo- ses, as means for that object, system of tax Il ation to a point that will produce permanent
 income, over expenditures, of S200, 100000 per year, which shall be applied to the payment of the principal and interest of the National debt. oa The interest on $3 1000, 100000 at 5 per cent, a amounts to $l5O,O0O ,0OO. leaving balance of {, $50o00,000 over the payment of the interest 'o during the first year. As the amount of inter- est will decrease with the successive payments
 of the principal, it is calculated that the entire E. debt may be flquidated within period of so twenty y-eight years. < s.. @ ' ,s,s7 To show how easily this could be done, he
 says that the products of 1860 were 26.Os per.
 cent of the wealth of the country which was
 (slaves excluded) $l4,ls3,OOO,ooO, the decenni- -aal inerease tsince 1860, having been l2s.7 per s cent Estimating the increase to 1870 at l25 sd percent, in the loyal states, and putting the -crwealth of the other states at the same figures ie as in 1860, we have a property valuation of s $27, 0oG,o00, and g product of $6,s94,5O0,. GO 900 for 1870, of which the S200,0OQ0o0 that c-ths Secretary proposes to raise would be ? g
 per cent, In 1880, the capital will be $62 050,- s. DOG, 900, the product Sl5,5l200O,OO0, upon aa which the change of s2oo, 900 900 will fall to ysiI:2s per cent. h 1890. the wsalth estimated s at an increase ot only 100 per cent. upon that ss,ofl 860, gives the years products at $3l0OO,- 1000 GOO, upon which $2OO,0o0,OOO amounts to " only 0,sA per cent, or less than two thirds of ssohe per cent, and in the year 300, the tax up- sdop the products of the year would fall to O322 e1psr cent, or less than one-,hrd of one per @ cent. Or in general statement, Ito use the aaSecretary's own language) the total estimated exchanges the national government for the pay aifnent of the debt in thirty years, and ali other .sofdnary expenses, begin ut less than per cent. :s of the resources of the country, and end in s3seven tenths of one cent ra r9ea baa z noigt Mt. McCu.loch traces the relationship be- tween currency and prices, and deduces from
 si the fnancial panics oi 1887 and 1857, the con- '7cclusion that m iofated circulation produces
 overtrading and hign prices. while contracted scisculaton causes reduction ia pric es of com sS modities, and restores trade to healthy basis
 in 1860 the circulation amounted to SPOT IO2. !, Ai000;i at the present time it has attained the ssstartliug proportion of S700,OoO,o0O He says Sahowever, that the country is far in advance in wealth of 1857, that the banks are generally believed to be solvent, and that when sys-
 wtem Of contraction of the currency (which is in- ssdispsnsable to safety) has been effected, he be- .4alievesl that the business of the country will xasadilyi laccommodate itself to the proposed 11sxhange in the action of government, and that ,ospecie, payments may be restored without a. sSehock to trade, and without diminution of the iopdblic revenueso or of productive industry \ ,se, The Secretary endorses the recommendation
 s.of the Comptroller to compel banks to redeem
 thsif'notes in Philadelphia, New York or Bos- ton, He also declares the establishment of the national banking system as one of the greatest .aachievements of the age, and it is not probable
 that an increase in circulation, limited by law, 7 will be required. < X ssua5This ia most important report. and seems, -sto give very general satisfaction in financial E citcles. gisFss .p9t HRs 4fa s z 5