The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1866-12-06

Amount OF cash IN Treas
ufN-.-....-..s....---..i5- ,ois ~
Amount of public debt, June 80, iseG,
less cash In Treasury. 2O505s,SjO ~
Net decrease, .................. S1,lse,3s7 20
oct. 81, $780, -. 80 CA, T5I, 0eI ~
Amt OF cash in Treas'ry, Iso,s2c,s6o CO
Amount Of public debt, OFT 81, Is0G,
Iess cash IN Treasury, .s2,55l, 424,l2i 20
Net decrease since june 80, 1885,, s9s,Il4, 9ns 90
Net decrease since June 30 1866. si3O, 3o,59C Is
Il will be observed that during the fiscal
year ending June 30, 1866, the decrease of the
debt was due to the accumulation of cash in
the Treasury Since that date the large de-
crease is duo TO the payment Of our obliga-
lions, the cash on hand remaining at nearly
the same figures. The payments include, be-
sides temporary loans, certificates of indebted
ness and treasury notes, Sl03OO,OOO in COM
pound-interest notes and $685., 593 in Unit
ed States notes. Mr.. McCulloch thinks it is
not perhaps desirable TO continue the same
rate of reduction. A further dimnution OF
taxes and modification of the tariff, he be
leves, may be safely undertaken, leaving still
sufficient revenues, with an economical adj
ministration of the government, to pay cur
rent expenses, accruiHg interest, and four or
five millions of the principal Of the debt
monthly. With such rigid economy as the
people have a right to demand, the debt may
be paid BY the generation which contracted
it, anl the burden of taxation may be copsid-
bic easier to bear.
In the Secretary's opinion, specie payments
July /, 1888, if not before; but he is clear in
his conviction that they are not to be restored
by an accumulation of coin in the Treasury,
to be paid out at a future day in the redemp-
ton of Government obligations; but rather
by quickened industry, increased production,
and lower prices, which can alone make the
United States what they ought to be-a cred
itor and not debtor nation. The balance of
trade against us, as shown by the custom house
returns, was for the year ending June 30,
1885, ,009057-that is our imports exceeded
our exports, both being valued in gold, by
about eight millions. Allowing for undervalua-
ton of foreign merchandise, for smuggling,
and for transportation in foreign bottoms, the
balance against the United States is estimated
at nearer S1O0,O00O00. As gold is the only
International currency, this heavy balance
must be paid in gold. 1t is certain, then, the
Secretary argues, that there can be no perna-
nent resumption Of specie payments in the
United States until the balances between them
and other nations shall be made easy by an
expectation OF commodities, including the pro-
ducts of the mines, equal at least to our i'm
portati1ns, and until provision shall be made
for returning bonds, or for preventing their
return at unpropitious times. This state of
things, it is conceived, cannot he effected
without change in our financial policy.
The changes which the Secretary suggests
to Congress- consist
First In compelling the National Banks to
redeem their notes at the Atlantic cities or
what would be be ter, at single CITY,
Second. In = curtailment of the currency to
the amount required by legitimate and health
ful trade.
Third In a careful revision of the tariff, for
the purpose of harnonizing it with our inter-
nal taxes-remoying the oppressive burdens
now imposed upon certain branches of indus
try, and relieving altogether, or greatly reliev
profits OF Labor may be enhanced aud produc-
ton and expectation Increased.
Fourth. In the issue OF bonds payable in
not over twenty years, and bearing interest at
the rate OF not over i've per cent, payable in
England or Germany, to an amount sufficient
to absorb the six per cent bonds now held III
Europe, and to meet the demand there for ac-
tual and permanent investment; and
Fifth. In the rehabilitation of the Southern
States.
/. He regards some system of redemption
as a natural and necessary preparation for an
ultimate return to specie payments.
2. He believes the curtailment of the
currency should be effected by reducing the
circulation OF United States notes and re
stricting the circulation Of the National Bank
notes to its present limits. The National
Banking system was intended to furnish a
permanent paper circulation. The United
States notes were not so intended, but were
issued as promises TO pay, and should be re-
tired now that the emergency which required
their issue is past A strong opposition Will
be found in Congress, both to the retiring OF
United States rather than Bank otes, and to
any reductionof the currency.
B. The Special Commissioner OF the Rev.
enue, Mr.. David A. Wells. appointed by au-
thority of Congress, has been instructed to re-
wise the tariff and report bill for the consid-
Grafton of Congress
4. Bonds payable in England and Ger
many may easily be placed at lower rate OF
interest than is possible while the coupons
have to be collected with great trouble and
expense in this country, and will be less like
ly to be thrown upon the home market when
we resume specie payments.
g.. Mr.. McCulloch believes like everybody
else, that it would be better for the country If
the Southern States could be pacified. He
thinks they would be transformed into order
". industrious communities by the simnle ex-
pedient of admitting their representatives tn
seats in Congress. Congress does not SO be-
lieve.
In conclusion, the Secretary says he "does
not mean to assert that the adoption of all
these measures (although he regards each as
importantly is absolutely necessary to specie
payments, nor that other remedies may not
be adopted by Congress to rescue the country
from impending financial troubles. He pres
SCENTS, as he considers it to be his duty to do,
his own viewsAnd asks that they may receive
careful consideration, and be adopted if they
commend themselves to the wisdom of Con-
gress, and rejected if measures better calculat-
ed to secure the desired end can be devised"
1t is 10 be hoped that Congress will give these
recommendations an early and reasonable con-
sideration, and adopt or reject them with
as little delay as possible. II, as Mr.. Nc
Culloch believes, I'VE have been for some
time, and still are, moving in the wrong di-
rection" the result nevertheless shows that
wrong policy is better than none. Let the
conditions be fixed and trade win accommo-
date itself to them.