Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1865-12-09

OF the report Of the Secretary OF the
Treasury we present synopsis OF its most
important statements of fact and ofopinion,
including the three topics of Currency,
Public Debt and Revenue, and pursuing
the order inwhich they are treated by Mr..
McCulloch.
III The C,,rreacy.-The key, to the policy
which the Secretary advocates may be
found i'm the declaration of his belief that
the authority of Congress to make the OBJ
LEGATIONS of the Government legal tender
resides outside of the Constitution, and that
the imitation which has followed upon the
necessary exercise Of that authority during
the war is ppjudicial to both pubic and
private interests. While, therefore, he does
not advocate the repeal of the legal tender
acts, nor believe 1t possible to reduce the
volume OF the currency by violent meas
ures, he is of opinion chat those acts should
be regarded as only temporary, and that
the work OF retiring the notes which have
been issued under them should be com
menced without delay and carefully and
persistently continued until all are with
drawn. The rapidity OF the process Will
depend upon the ability to dispose of Sc
curities. The specific measures recom-
mended are as follows: iiaT4
First. That Congress declare that the
compound interest notes shall cease to be a
legal tender from the day of their maturi-
ty. These notes were Intended to be Sc
curity rather than circulating medium,
and such declaration by Congress would
be neither injurious to the public nor an
act Of bad faith to the holders. i.f
Secjnd. That the Secretary be authorized
in his discretion to sell bonds OF the United
States, bearing interest at a rate not ex-
ceeding six per cent, and redeemable and
payable at such periods as may be conduc-
i've to the interests of the Government, for
the purpose of retiring not only compound
interest notes but United States notes.
The amount which the Secretary esti-
mates as necessary to be retired in order to
bring the currency within proper limits Is
from one hundred to two hundred millions,
in addition TO the compound notes, the
amount of which latter, Oct. 81, was $l73,-
Ol214l, all due in 1867 and 1868. The total
paper circulation OF the United States at
that date was $704,2lS,O3S, to which should
be added $30,000,000, the estimated amount
of compound interest notes actually in cir
culation. The total is likely to be still
further increased by the issue of notes to
the National Banks now daily going on, and
destined to continue till the limit Of $780,
900, 900 authorized by law shall have been
reached. as it will be at no distant date. As
but SlS5,O00, 000o of National Bank notes are
included in the estimate of $13A 2lS, OBS 20
there remain $ll5,0O0,000 to be added, and
the aggregate amount of circulation will
then be $SI9. .2lS03S.20. If the recon-
mendations of the Secretary in regard to
contraction be fully carried out by retiring
$500 100000 of United States notes and the
S300OO.OOO of compond interest notes ac-
tually in circulation, there will still remain
total circulation of S6l9,2lS03S. 20, even
suppOsing that no extension 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 cal
culations that the Secretary adds to his
suggestions the remark that ''neither the
amount of reduction nor the time that will
be rec cuired to bring up the currency to
the specie standard can now be estimated
with any degree OF accuracy. The first
thing to be done is 10 establish the policy Of
contraction"
III. The Public Debt.-The Secretary re-
CARDS it as public burden, the work Ofre-
moving which should not be long postpon-
ed. lie sees no way of doing that except
by an increase of the national income be-
yOnd the national expenditures. The first
step is to fund the obligations that are soon
to mature. The next, TO provide for rais-
ing revenues necessary to pay the interest
on the debt, and a certain definite
amount annually for the reduction OF the
principal. On the 3lst of October, since
which time no material change has taken
place, the public debt amounted to 81, S0S-
549, 1875. Receipts for the fiscal year end
ing June 80 1865, were 81 ,S9S, 532 533.4, of
which 1884, ,S63, 1917 were from loans ap-
Dlicable 10 expenditures, and S607, 1861, 2n.-
IS from loans applied to payment of public
debt, and sos. l64, ,2l525 from internal rev.
enue. Expenditures were $l,S97, ga, ,224.09,
of which the War Department is charged
with SI,03l, 1873 360.79; redemption of debt
as above stated; interest on public debt,
81, ,7l2. Balance July ], 1865, $S5S,309.-
10. Total increase of public debt during
the year, S941, ,902,537 .04. ---r
The receipts for the quarter ending Sep
tember 30, 1865, were $40, ,77027; ex-
penses, 1878 S254S3; leaving balance
October /, S67,15S,5l5.44. Estimated re-
ceipts for the remaining three quarters of
the year ending June 80, 1866, are: