The day book. [volume] (Norfolk, Va.) 1857-1867, 1865-11-18
Specie PAYMENTS.

The doubts which exist in the minds of bu-
siness men as to the course likely to be pur-
sued by Secretary McCulloch in regard to
the currency of the currency, retards business
operations to much greater degree than is
generally supposed. Any sudden return to
Specie payments" would prove most disas-
trous to men in trade, who might be caught
with their business greatly extended.
A definite policy in regard to the currency
of the country should be adopted at an early
day by the Government, and SO soon as an
nounced, we should find that back bone of
commerce, confidence, permeating all the trade
avenues of the country, and Our
merchants "taking hold" in earnest and
pushing their business to that limit, which the
great productions Of the country would iusti-
fly. The difficult problem to solve in regard
to specie payments is, how and when shall it
be done? We have recently met with some
important suggestions on this topic, which we
give to our readers. The writer says:
The only road tospecie payments, is by the
old beaten path of lessening the paper issues
of the country, till they totally do not exceed
double the amount of available specie in it.
| With rapid development of the cotton, tobac-
co and rice fields of the South, and the usual
abundant harvests of the North, with no ex-
cess of importations from abroad, and having
meantime no foreign complications politically,
specie may within two years again become
| the standard of values; but with the failure
from either section of these necessary articles
of export, or unhappily should the last named
contingency arise, the people will be called
upon to deal in the promises to pay OF either
the Government or private banks for long
time to come. -..-..r
THE FIRST STEP TOWARDS RESUMPTION.
The first step towards a resumption of spe-
Gle payments is to reduce the volume of the
currency to the amount for which there is 6
commercial demand at the present time in Thu
community. Should resumption be at
tempted before such reduction, specie will bt
called for in exchange for paper, and will bt
lexported in exchange for various articles o
capital which people need more than they Dc
an excess of currency.
In intimate connection with the subject o.
specie payments, is the amount of revenue
likely to be derived from internal taxes ant
from customs. On this subject, We give the
following "conjectures" from the New York
Commercial:
San increase of twenty-five per cent, can
not be considered improbable during the next
fiscal year, which would bring up the interna
tax revenue to about $47O,0OO,OOO per an
mum. If to this be added 800, 100000 fol
customs, it would appear that next year thu
total revenue of the Government may reaci
the immense aggregate of $57O,O0O,OOO
| What is likely to be done under these pros
poets? The income will probably exceed tn,
Expenditures by $780, 100000. Does thu
Secretary of the Treasury propose to devot.
his surplus to the liquidation of portion O
the debt-say the Seaen-thirties and com
pound Interest notes-or does he favor per
manently funding the short date debt, and re
ducing the taxes to the extent of the surplus
This is an.mportant question, whethe
viewed in its bearings on the value of Govern
ment securieties or upon the heavy taxation
to which the commerce of the country is nov
subject. If the statement of Washington
letter writer, given in this column, may be re
lied upon, the Secretary would appear to favo
the policy of keeping the taxes up and reduc
ing the debt.