The Lancaster gazette. [volume] (Lancaster, Ohio) 1863-1886, 1866-12-13

the Treasury.

' W WV '"''""'"E Bi"uPibB VI the
recommendations Of the Secretary Of
the Treasury:
He thinks the reduction Of the pub.
lie debt need not proceed as rapidly
as last year--s2O6, ,s79,965 II for tie
year.
There should be further diminu.
ton Of internal taxes. and q modifica-
tion Of the tariff-nntiI the public debt
shall he reduced at the rate of four or
five millions per month
No additional donations should be
made to railroads, no payments but
in fulfilling contracts, and no unneces-
sessary expenditure Of money for any
purpose-and thus the debt may
be paid by the generation which ere
ated it.
The Secretary don't believe that
public debt is a public blessing; and he
urges lis speedy payment He amia
aely suggests as Il reason for its pay.
ment that il is a perpetual reminder OF
humiliation and defeat TO those who
caused 1.-THE rebels and democratic
party. for instance
Ho complains that Congress limit
ed him in the retirement Of the curren.
cy which protracts return to specie
payments.
He held large reserve of coin in
tho Treasury to keep the business of
the country steady, wbicbhe supposed
would otherwise be unsteady in conse.
quence of the large amount of ire.
deemable paper currency af6at. He
thought steadiness more desirable than
the saving Of the interest. And, we
rema' TX that, on several occasions, he
made everything unsteady by "bear-
ing his gold in Wall street.
He. thinks it wise to hold gold in
the Treasury to prevent combinations
To produce fluctuations in prices, and
we add that the most injurious Auctua.
tions Of the year We're produced by
his appear ny in Wall with Govern
ment gold.
He thinks specie payments are not
to be restored by accumulation of coin
in the Treasury toreduce Government
obligations in future, but by increased
production in the country, &c which
he says explains his policy in accumu-
laling gold
lie has allowed it TO accumulate
whe the sale of il wasn't necessary
to pay public obi ations, or TO pre-
vent panics. or successful combinations
against national credli aud has. sold
when necessary to supply the Treas.
ury with currency, to ward off crises.
and save paper currency from deprecia-
ton
Reduction of the currency will not
of itself restore specie payments, bnt
it is the essential means OF bringing it
| about.
He regrets the legal tender curren-
cy IA ',he prime cause OF our financial
difficulties, and cLrtallment thereof
as indispensable TO public industry
and prosperity. @
We can resume specie payments
when we become the creditor nation.
and not the debtor-ihat is, when we
sell more than we buy, and the balance
in cashis due MS .'a.
We are the del tor nation, as appears
by the fact that Europe holds $780,
600, 900 worth of our stocks and bonds,
of which 1850, ,000, 900 arc u S. secu-
rites. $3.50, 900 0U0 State and munici
pal bonds, and Sl00,000,000 Railroad
bonds .
Thus specie payments cannot be re-
stored until we restore balances by
increased production and expectation
of products, and until we can control
the return of our bonds held in Europe.
This cant be done without change
in our financial policy.
Specie being the only universally
recognized measure of values, is driv-
on out Of market by deprccated cur.
rency, which, if made q legal tender,
becomes. q demoralizing standard, un.
der which prices advance in a ratio
diSproporliOned even to it's actual de-
probation.
The evils of expansion are increased
by making it legal tender.
Remedies tor the evils of expansion
from which we now suffer, are to be
found,
First-In compelling the National
Banks TO redeem their notes az the At
lantlc clties-or, what would be better,
Now York alone.
Second-In curtailing the currency
to the amount required by legitimate
trade. ''
Third-In revision Of the tariff, so
US to harmunize it with internal taxes,
reducing taxes on some things, and
exempting others.
Fo0rLh-In the issue of long five
per cent bonds, payab,e in Europe, to
an amount sufficient TO absorb the six
per cent bonds now held there, and TO
IN eet the demand for United States se-
curities.
Fitth-In the rehabilitation OF the
Sou hern States.
The Secretary supports these fine
points BY Argument. He thinks bank
notes of the seaboard banks practical
ly more valuable than those remote
from the financial center, because the
latter are not SO readily redeenable.
Without such redemption there will be
none ut all until a return to specie
payments, and imitation Of prices
must be the consequence. Frequent
and regular return to the center il
necessary to healthful circulation.
Touching curtailment Of the curren'
Nv The Secretary prefers to retire