The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-13


Secretary OF the Treasury. Mr.. McCulloch un-
derstands our financial position much better
than the fnanciers Of Great Britain did thai of
their country after the wars with Napoleon. His
constitutional arguments do not amount to
much; but on the financial question he is sound,
anc if Congress directs the resumption of
specie payments Mr.. McCulloch is the man to
secure it. -.
This is the first time within our remembrance
that sound, practical man has had the man
agement Of tie financial affairs of tho country.
Hitherto the heads of the Treasury Department
have been mere politicians, who have had no.
proper conception of the magnitude Of the
duties Of the Office, and they administered the
financial concerns of the nation more with an
eye to party advantage than for the promotion
OF the interests of the country. Now we have
the right man in the right place-one who is
full of common sense, and takes the right view
Of The difficulties and dangers that surround his
position. He ia not one Of those crazy theorists
who are always in fearful state of alarm and
trepidation whenever the currency becomes
over-inAated, and predict ruin and disaster
whenever such periods arrive. Mr.. McCulloch
properly appreciates the dangers that may
arise from this cause; but at the same time he
holds that evils are as likely to accrue under
hasly and improper system of contrac-
of the currency. He argues against a
too rapid return to specie payments;
and, while advocating the return, holds that il
should not be done until it can be with safety
to the commercial, manufacturing, banking
and all other great interests of the country,
and with perfect security to government credit
The resumption of specie payments, whenever
it is judicious to do so, should not be accele-
rated by Incorporate exertions or precipitated
for superficial reasons. Whenever the proper
period arrives to resume, 1t should be done
practically and not nominally, as was the case
with the Bank of England from 1872 to 1919
and in 1926. He proposes to fund the public
debt by sort Of easy sliding scale, 80 that the
fountains of trade and commerce may not be
improperly disturbed by q too heavy and
rapid withdrawal of the national currency.
His object is to show how soon specie pay
ments can be resumed without producing
financial revulsions and bankruptcies. He
conscientiously believes in the Jacksonian
policy: that 1t is dangerous to allow the un-
limited issue Of government notes, and regards
that policy as calculated to place too much
power in the hands of partisans who may tenn
porarily hold the reins Of the government He
makes several sagacions suggestions in rela-
- of <ha Tufo 81
law, having in view the more harmonious Opc-
ration of that law with the tariff and the tariff
with the Revenue law. II is calculated that
the general revenue will not be reduced, but
increased some forty or fifty millions by pur-
suing this policy. It is gratifying to learn
that the prospects for the next fiscal year are
so satisfactory. II appears that, according to
reliable estimates, the receipts of that year
"will be Sufficient to pay all current expenses
Of the government, the interest on the public
debt, and leave the handsome balance Of
Sill, G82,818 to be applied towards the pay-
ment Of the debt ITSELF"
What contrast does our country at this
time present when compared with England or
France after great and exhausting wars!
During the Napoleonic conflicts England was
perpetually the scene of public disorder, riots
and internal difficulties. Bankruptcies and
financial distress were continually occurring,
specie payments were suspended, loans were
negotiated with great difficulty, and at one
time the national debt reached some four thou.
sand one hundred and fifty millions in dollars.
The most formidable of these financial difficult
ties occurred in England from the year 1872 to
1919, and again in 1926. Just after the news
of the escape Of Bonaparte from Elba reached
England there we're sixty-one bankruptcies in
England within week. In 1919 the finance
report was considered in fact ssvirtual decla-
ration of national bankruptcy" Before this
France had her financial revulsions, with her
assignats and mandats, which were both even
tually repudiated-in the case Of the mandats
because the people would not take them.s In
short, when we refer to either England or
France we find the history Of their wars to be
replete with instances of internal disasters,
bankruptcies, commercial prostration, mobs,
riots, and all kinds Of local commotion, cul-
minating in national bankruptcy and social
revolution.
Now look at the United States. We have
carried on stupcndous war for four years with
a courageous people. II has cost more than
any of the wars of England or France, or any
other wars in modern times. We organized
and equipped splendid army Of over mil
lion Of men, improvised magnificent navy,
invented new styles Of armed ships, employed
new and costly implements Of war, and paid
for them oil without producing commercial
panic, or any bankruptcies Of moment One
third Of our entire national debt was paid to
the brave men in onr armies, and hence was
not lost to the country, and instead Of prostrat-
ing business and breaking down merchants,
we have made the fortunes Of thousands Of
those who were before the war in but indif-