The Norfolk post. [volume] (Norfolk, Va.) 1865-1866, 1865-12-09
'T'!jhc Aurfalk 9ost.
SATURDAY, DECEMBER 8, 1866.
THE SECRETARY OF TREAS
URY'S REPORT.


THE SECRETARY OF TREAS
URY'S REPORT. = 5..
The Secretary of the Treasury's repor
at thistme is a matter OF Eiore than or
binary interest to every citizen in thu
United States, and, we may add, tt
every civilized nation, inasInuch as il
records on the page of history the linan.
cial condition of a great nation after an
exhausting civil warof -four years dura.
ton. The government legal-tender ir.
redeemable paper.naoney system used
for supplying the ways and means fol
carrying on this civil war, and the sue.
cessfil Termination of the same, have
made It's statement Of more than ordi
nary interest to thoughtful men on this
continent and in Europe. Mr.. McCul.
l0ch's report is equal to the occasion,
and commends itself to the prudent and
conservative portion Of the nation i'm
its calm review of the origin of tile ire
deemable paper-mOney system i'm the
supposed necessities of the rebellion in
its clear exposition of the evils of that
system; in its unflinchng demand for
the return. at the earliest dnte possible,
TO the old constitutional standard for
currency, from which the loyal State of
California has never deviatcd, namely
gold and silver rs the only proper meas
ure of value" for the reason that "irre-
deemable paper currency may be a me-
cesslty, but 1t can scarcely fail, if long
continued, to he a calamity to any
peOple.p The Secretary recommends /:
lsl. '"That Congress declare that the
compound interest notes shall cease to
he II legal tender from the date of their
maturity The amount of these three
years compound interest legal-tender
notes was $l67, 0I2 1iI according to
the official statement of the public
debt on November 80. The with
drawal Of the legal tender privilege.
even if Congress sanctioned it, is, there
fore, distant from two to three years
hence. I'd, "That the Secretary be au
thOrized, in his discretion, to sell bonds
of the United States bearing interest at
| a rate not exceeding six per cent, and
redeemable and payable at such periods
as may be conclusive to the interests of
the government, for the purpose of not
only retiring compound interest notes,
but the United States notes" These
two paragraphs embrace the whole
scheme of the Secretary's policy for
takenlin the programme is the Negotiation
of government six per cent. bonds at not
less than par, it requires no argument to
prove that an unusually easy condition
of the money market is u prerequisite
suggested by Mr.. McCulloch. The ex-
change-funding operation, or so-called
''loan" for $50,O00 900, negotiated on the
aose, Of ff,pf yn p tx,e ct
gold bonds, has depressed their price to
so, and their quotations to-day is
995. This fact evidences that the mar
ket is at presentOverloaded with govern-
ment bonds at current quotations, and
that further attempts TO issue more, at
least for some time to come, must even
tuate in further decline, perilons to the
whole fabric of national, banking and
mercantile credit. Herein reststlie ma
terial guarantee that no unduly rapid
strides toward contraction of the cur
reGcy can be made by government. -
q Mr.. McCullOch goes on to state some
of what are called "the blessings of
debit to wit: "The public debt of the
United States represents portion of the
While il Is tile debt OF the nation, il be-
is the seductive fallacy Of the paper
money theorists, or John Iiawism in its
worst form, and seems to us strangely
out of place on Mr.. McCulloch's lips.
About forty years ago, Lord Lauderdale,
a scotch nObleman, annually amused
the House of Peers in great Britain by
descanting on the theme that "a national
debt was national blessing, and that
IN. Inl,
an increase to the national wealth. The
irreyerent spendthrifts of the House
prayed his lOrtlship to address and pros
elytize the Queens Bench where debt
and crime were Synonymous terms.
In regard to final payment of the debt,
Mr.. McCulloch blnntly remarks: eva
rjous plans have been suggested for the
poyment of the debt, but the Secretary
aees no way of accomplishing it but by
an increase of the national income be-
yond the national expenditures. In a
matter of so great importance as this,
experiments are cut of place. The
Main. beaten path of experience is the
nuly safe one to tread" These seDten-
ces mark the good sense and practical
business ability of the Secretary. The
fnllrVing emphasizes even more strong
nurs,led by the Government:
The first step to he taken Is to insti-
tute measures for funding the obliga-
tions that are soon to mature. The next
il to provide for raising, in manner
the least odious aud oppressive to tax
Dayers. the revenues necessary TO pay
the interest on the debt, and certain
definite amount annually for tire reduc-
tion of the principal. The Secretary
respectfully suggests that ON this sub,
iect the expression Of Coneress should
he decided and emphatic 1t is of the
greatest Importance, in the manage
ment of q matter of 80 surprising inter
est. that the right start should be made.
Nofdina but reUenuc UiH sustain the ma
UooaI credit, and nothing less HdI, q
fred policy for the reduction 81 the pub
/ lie DEBT wiH be ikety to preocm its in
The national debt on October 81, with
unt deducting funds in the treasury, is
oot,ted ut 50 SOS, $40 1877 IS. The receipts
Sor .he fiscal year ending June 80, 1860,
ore stated at 81 ,S9S, So, 53S 81, and the
eynenditures for the same period at
q S9I GA, 224 90, leaving a balance III
az trnosl,ry on July 1, of 1858 800 10.
The following statement exhibits the
;to,,s of increase aud decrease of the
nnblic debt for the fiscal year 1860:
g n,llc debt June 90, 1865, q 026 50
ho',t If nbc debt Jnne 80 1851, l'io6oo4se -
r,,.l increase ....-,......-.-,. s9ii@v- aJi vi
| rha Secretary estimates that the re-
| o;,,ts Tor the remaining three quarters
III ,,eor ending June 30, 1866, Will he