Baltimore daily commercial. [volume] (Baltimore, Md.) 1865-1867, 1865-12-06


Again it is urged that contraction of the currenC
| would reduce the public revenues.
G 1t IS possible that this might be the immediate e
lcct, but 1t woud be temporary only. The publ
n | revenues depend upon the development of our nj
u92nai resources, upon our surplus production:
transactions based upon false standard of value
from interests that only flourish in speculatiy
tunes, are not those upon which reliance can be place
Tor maintaining the public credit. What health
ana reilahle business requires is stable basis Tbi
1t cannot have as the country is inflicted with an in
fGnvertoler currency the value Of which, as well
it, is tuctuating and unreliable, and may he in NJ
small degree controlled by speculative combinations
| 1t is also urged that the proposed policy would
endanger the rrsblic credit, by preventing funding
and that it would compel the Government and liz
people, who are in debt, TO pay in dcarer currenc,
than that in viii Oh their debts were contracted.
The Secretary is unable to perceive any substantial
ground for This objection lie cannot undcrsan,
the continuance of prices their present high level
or how the credit Of the Government is to be restored
| by the perpetuatlon oil an lTredecmabc currency
especially as that currency consists largely of it
own notes.
While it is hoped that carly provision will be mad,
torthe commencement of the reduction Of the natona
debt an early payment of it is not anticipated MOI
Is 1t understood that those who are apprchensive
The effects OF contraction entertain the opinion that
the present condition Of things should he continued
until any considerable portion of this debt shall be
s. far as individual ndebtedne5- Is regarded, il
may be remarked, that the people OF the United
| States, if not free from debt Us they were six
months ago, arc much less III debt than they have
been in previous years and altogether less than they
| will be whom the inevitable day of payment CONES
round if the volume paper money j. not curtaiicd
financial policy which would prevent the creation
OF debts and stimulate the payment Of those already
EXISTING. so far from being injurious would be in the
| highest degree beneficial.
1t is further urged that a reduction of the Govern
| lnent notes would embarrass the National Banks if
1t Ild not force many Of them into liquidation.
Iq which il may be said, that it is better that the
| banks should he embarrassedsnow than bankrupted
| hereafter. Their business and their customers arc
now under their control. What will be their condi-
ton IN these RESPECTS the expansion continues and
SweiS year or two longer, II Is not difficult to pre-
| diet. While there has been unhealthy expansion
Of credits in the United States for which the banks
| none by which they have not been ultimately the
losers Unless their sentiments are misunderstood by
the Secreary the conservative BANKERS of the cOun-
try are quite unanimously in favor Of II curtalment
otthe currency. with view to earyre to spc-
Again 1t is said that the excessive bank deposits
| have as much influence in creating and sustaining
| nigh prices as superabundant currency. This is
unqueSonaby true; but it is also true that excessive
deposits are the effect Of excessive currency and that
| whenever the currency is reduced there will he at
least, corresponding ii not greater reduction of
| deposits.
The last objection which will be noticed to the
measure recommended Is, that would, by reducing
the rate OF foreign exchange, reduce exports and IN
| crease imports.
The Secretary, thercfare respectfully but earnestly
First. That Congress declare the compound interest
notes shall cease to be legal tender from the day of
| their maturity.
| Second. That the Secretary be authorized in his
discretion, to sell bonds Of the United States bearing
interest at rate not exceeding six per cent and re-
deemable and payable at such periods may be con-
duclve to the interests of the Government for the
purpose of retiring not only compound interest notes
| but the United States notes.
The Secretary says our debt is large but if kept at
home, as it is desirable it should be- with judicous
i!stem OF tI9ton' L need not he oppressive. i is
OF the securities. 1t is still National debt. and an
e9eumbrance upon the National estate; Neither its
advantages nor its burdens arc can be shared or
borne equally by he people. Its influences are anti
republican It adds to the power Of the Executive
| by increasing Federal patronage; 1t must be d $
tasteful TO the people because it fills the country with
public virtue because it involves tho collection and
| disbursement of vast If money, and renders
| rigid National economy almost impractcabe. Its
| in word National burden and the work of re-
moving it--no matter how desirable il may be for
| individual mvcstment-shOuld not be long post
| poned
Various pans have been suggested for the payment
Of inc hcbt my thc secretary secs no way OF accpnl
pshing it, but by an increase of the national income
beyond the national expenditures. In matter Of 50
great Importance as this, experiments Nrc out Of
place. The plain beaten path Of experience is the
| only safe one to tread.
Tho first step 10 he taken is to institute measures
Tor funding the obligations that are to mature.
The next is TO provide for raising, in q manner the
necessary to pay the interest on the debt and
acertain definite amount annually for the reduction
of the principal.
The Secretary respectfully suggests that on this
subject the expression of Congress should be decided
and emphatic 1t IS of the greatest importance in
the management of n matter OF 50 surprising in
tereSt that the right start should be made Nothing
but revenue will sustain the national credit, and
nothing less than fixed policy for the reduction of
the public debt will be likely to prevent its increase
The debt of the United States was increased during
tho fiscal year ending June 80, 1855, SOL 902 5S o.
and during the first quarter of the present fiscal year
Fl5Sl13U922 The Secretary has, however. the sat
staeton OF being able to state that during the months
Of September and October the public debt was di-
minl5hed TO the amount OF about thirteen millions of
dollars.
Ii the expenditures for the remaining three QUAR-
tiers of the present fiscal year shall equal the csti
mates, there will be deficiency to be provided for
by loans of $1l2 l44 q7 20 to which must be added
81 536,l for the five cent. Treasury notes part
dp aRd dsh 6w Se6 raid cut al t m int
Treasury and all ether payments which NAV be made
on the public debt.
The heavy expenditures of the last fiscal year and
of the months of July and August of the present
year, the result of the gigantic scale on which
the war were prosecuted during portion Of this pc
tered out of the service The large estimates of tho
War Department for the rest Of the year are for the
payment of troops which TO remain in the ser
vice. and of those which are to be discharged and
for closing up existing balances.
The statement of the probable receipts and cxpen-
dturcs for the next fiscal year H. in the highest de-
gree, satisfactory, According TO estimates which are
believed to be reliable the receipts of that year will
be sufficient to pay all expenses of the Gov
eminent the interest on the public debt and leave
the handsome balance of 81 l6S!SlS L to be applied
toward the payment of the debt itself
By the statement Of the public debt on the SlSt of
October, it appears that, besides the compound in
terest, the United States. and the fractional notes
nie Pt1t uuc ucp, ItSG - PI2.p!lu3
Inc 9ept cue ~ 4Sg IlG 49, tO''..' Io2t96f9I3
Inc ueFt auo III t9I' anu ino9 to'".' Sto22.9 lSU
purlhg the month OF OOtopel ABOUT S2oW',Vp OF
tle coVuu IsC ilEloa Meie luhueu n '--D sA
pgi sgu I'll 1 SGU ""ei 'o PioF-s|'-s VI the aet VI
March > ls0o'
Inc Secretary would pc gfalihed II the treasury
cOuIa pc put Ut once IN Il conuItioh 10 oovlat9 the
necessity o ISSUING any more OF hdeoted
less, u tIs,s igcS % any hInu OF tqmpoTaIy
tOdI;i' LUZ t l, AZ d oioiS eii ~ oe og'HtI 10
ia Va A-t' nv" iutl,HitHeu ~ law
for meeting current expenses and other proper de-
treasury
1t Is important therefore,, mat our revenue system
should DC frequently ana carefully revised IN order
that II may De accommodated TO the habits and char
acter OF Ihe people 10 the industry OF the country to
labor ana capital 10 wages at nome ana wages abroad
IL is also OF He gHest Importance that there should
be carelul PUNISHMENT o our internal To our eXter
nal re! enue system: .
IN view, VI ne recent ana present condl
uoh u int 2outleLH 'tatos' the secretary recon-
menus r,..,,,.. c.-.,
ma Sl % Ie'ehue taxes
WHlcn acelueu pelolc lhe tSt1pshient Oh revenue
"cea III tho Etdtes teoeHllS III ieoeiIoh pc lnden-
| uItels P3a'hi fSt tn -,- = . IL, O.. 49,
oScou, iHat an 'ale5 VI properly IN t1ose States
t III I'll 49, "a law, .? suSpenue! uIlll INC
I ~ I ~ - ~ ~. % as' m US was
o ~ ~ d, H''e'' ttie pup hicii' VI Tue 'dA as
| Tb;rd IL Thot oil ,ronsoot;o,s; :, s,,l c.+. L;h
NOV ho nTai;d hy tba - - t,S I u
a. - in tbc $500 f =, H. 81 IS a. @
W. aotan = ~ sb0i,Sd 10 - SO ~ ny; e
r 1900 ~ 10 uitS ,b ~. h te i 49,
" iI IS, u. - = -. 90 W. @ ~ IL ! y y. =
9Giu uuel ING ut9et oaA iaw, anu Is ~" eiu ~ tne