The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-10-20
THE NATIONAL FINANCES.

I06 Nh tOUHb TIVHN06Os -
Important Speech by the Secretary
..- Of the Treasury. = '-,-.@
. A banquet was given to the,Hon. HUeH
McCULLooH, Secretary of the Treasury at
Fort Wayne, Indiana, on the 11th instant.
Mr.. MoOuLLocH made'a Speech heartily
endorsing President JoHNsoNis reconstruc-
ton measures, and in regard to the na-
tional finances, he said: 60 D..
expect to be, Secretary of the Treasury. To
this fact attributed in great degree the good
feeling and indulgence that have been mani
tested towards me in the very trying and re-
sponsible position that occupy. accepted
the Office of Secretary of the Treasury with
great distrust of my ability to meet the
public expectation, but with sincere desire so
as to aid in restoring the credit of the Govern
ment which had been damaged by the great
ness of the public debt, and the uncertainty in
regard to the duration, if not to the result of
the war, and in bringing up the obligations of
the Government to the specie standard
/ am not of those who seem to disposed
to repudiate coin las measure of valae, and
to make secured paper currency the standard
On the contrary, belong to that class of per-
sons, who, regarding an exclusive metallic cur.
rency as an impracticable thing among an en-
terprising and commercial people, neverthe.
less look upon an irredeemable currency as an
evil which circumstances may for time ren.
der necessity, but is never to be sustained as
policy. By common consent of the nations,
rS1w 10
value. They are the necessary regulators of
trade. Ihave myself no more doubt that these
metals were prepared by the Almighty, for this
purpose, than have that Iron and coal were
prepared for the purposes in which they are
being used. l favor well.secured convertible
currency. No other can to any extent be q
proper substitute for coin. Of course, it is not
expected that there should be dollar in coin
in reserve for every dollar of paper in eircula-
ton. This is not necessary. For all ordinary
home transactions paper currency is suffi.
cent, bat there are constantly occurring pc
riods when balances between countries, and in
the United States. between its different sec
tions, tmust be settled by coin. These balan-
ces are Insignificant in amount. in comparison
with the transactions Out of which they arise,
and when vicious system OF credits does not
too long postpone settlements, they are ar
ranged without disturbing movements of coin.
Whenever specie is needed for such purpose,
or for any other purpose, the paper currency
of the country should be convertible into it,
and circulation which is not so convertible
will not be, and ought not long to be tolerated
by the people. The present inconvertible cur
rency of the United States was a necessity of
the war, but now that the war has ceased, the
Government ought not to be longer borrow
er, this currency should be brought up to the
specie standard, and / see no way of doing this
but by Withdrawing portion Of it from circu-
lati0n.
l have no faith, Sir, In prosperity which is
the effect of deprecated currency, nor can
see any safe path tor rs to tread but that which
leads to specie payment. The extreme high
prices which now prevail in the United States
is an unerring indication that the business OF the
country is in an unhealthy condition. We are
measuring values by false standard We
havea circulating medium altogether larger
than Is needed for the legitimate business-Lne
excess is used in speculations. The United
States are to-day in the best market in the
world for foreigners to sell in, and among the
poorest to buy in. The consequence is, that
Europe is selling Us more than she buys of us
(including our securities. which ought not to
go abroad.) and there is) debt rolling up
against Us that must be settled in part at least
with coin. The longer the inf .,iou cont,pues
the more difficult will it be iuc Us to get back
to the solid ground of specie payments, to
which we must return sooner or later If Con-
gress shall early in the approaching session,
authorize the funding OF legal tenders, and the
work of a reduction is commenced and carried
on resolutely but carefully and prudently, we
will reach it probably without serious embar-
rassment to legitimate business-n not we
shall have brief period of hollow and seduc-
tive prosperity, resulting in widespread bank
ruptcy and disaster.
There are other objections to the present in
lat fs II foo1 fba
morals. 1t is converting the business of the
country into gambling, and seriously diminish
ing the labor OF the country. This is always
the effect of excessive circulation. The kind
of gambling which it produces is not confined
to the stock and produce boards, where the
very terms which are ussd by the operators
indicate the nature Of the transactions. but it
is spreading through our towns and into the
rural districts.
Men are apparently getting rich while mo-
rality languishes and the productive industry
of the country is being diminished. Good mo-
rails in business and sober, persevering indus
try, if not at a discount, are considered too old
fogyish for the present times. But / feel that
this is not the occasion for croaking, and Der.
haps ought to apologize for the train of re-
marks into which l have been led.
Whatever financial troubles may be before
us, Fort Wayne will suffer as little from them
as any other city in the country. Good fipan-
cial seed was sOwn here at an early day.
If property is high here, there are no in
cumbrances upon it. If expensive buildings
are being erected, the owners are not indebted
for them. Business is done here on the cash
principle. Our merchants generally buy for
cash and sell for cash. We shall doubtless
wake up some fine morning and find our pro-
perty worth apparently a good deal less than
at present, but if We have no debts to pay in
dearer currency than that 10 which thew were
contracted, we shall have little to fear from
any crisis that may occur.