The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-04

man o. The oroe II DICK Connolly and -
most incompetent h Nike Connolly, although
be il very jovial, good lbllow. Absst half
dozen Of those in the leading Ones Of ths
Corporation are Irishmen, and We are not
certain whether II would not be . good plan
to turn all the Americans and Germans out Of
Office and I'LL the places up with men from tho
Emerald Isle I; but there must not be cross
In the blood. They must be thoroughbred
Irishmen to the backbone, like Dick and Mike.
Tho Report ofthe Secretary Of tho Treasury.
In another part Of the paper we lay before
our readers the annual report Of the Secretary
of the Treasury to Congress. Making up the
books Of any great establishment Is always
very interesting matter to those concerned,
and there certainly never was q period in our
history when an exhibit of our national 6nan-
cial condition and prospects excited greater
interest than now.
The facts presented by the Secretary arc
highly gratifying. The figures show that No
are prosperous beyond every precedent and
ell calculations. The receipts from all the or
binary sources. Of revenue, Independent of
loans, for the fiscal year ending June 30, 1856,
were five hundred and ffty-eight millions.
For the quarter ending September 80, 1866.
the amount was one hundred and ffty-eight
millions The actual income exceeded the
estimates for the first three quarters Of this
year. beginning in January and ending In
June, over ninety Millions and for the follow
ing quarters in greater proportion. Mr..
McCuIloch had no idea, and perhaps few had,
of the stupendous resources of the country.
The expenditures were two hundred mil
lions less than estimated for the fiscal year.
The enormous estimate of over three hundred
millions was made for the War Department
before peace was fully restored and while tho
bulk Of our armies were in service. The De-
partment has expended only about one hun
bred and nineteen millions, which makes
nearly the difference of two hundred millions
between the estimates and actual expenditures.
The balance in the Treasury on October Of
this year was one hundred and forty-two mil
lions. ..a-5..~s..
The public debt on June 80, 1865, less cash
in the Treasury, was $2,681 100000. June 30,
1866, it was $2,65Oy 600, 900 showing net de-
cline Of So, 100000 for the year. But four
months after, that Is, on October 81, 1866, the
debt was $2,551, 900, 900, showing decrease dur
ing these four months of $99,O00,000. With the
present vast income Of the government the debt
would necessarily continue to decrease more
rapidly, because nearly all of the claims foa
war expenses have been paid. But the Score
tary says, at il not expected, nor Is it desira-
bic, perhaps, that the same rate Of reduction
should be continued"
He proposes to diminish the internal taxes
and a modification of the tariff. which will re-
duce the duties on importations. lie thinks tho
tariff should be 90 revised as to remove tho
burdens on industry, and especially ON that
which weighs upon the production Of raw
materials. He is decidedly opposed to taxing
raw materials. The amount OF revenue hs
wants is only enough for an economical ad.
ministration of the government and for reduc
Ing gradually the principal Of the national
debt. He thinks four or FIVE millions month
should be applied in extinguishing the debt
But he says there must be economy, and, above
all. there must be no additional donations 10
railroads and other companies. "The debt"
he urges, "can and should be paid by the gene
ration that created it." He wisely maintains
that ga national debt is burden and se-
we're strain on republican Institutions"
He proposes to issue twenty years. i've pes
cent bonds, payable in England or Germany,
to absorb the six per cents now held in
Europe. This is very well as far as II goes
but it would be much better to consolidate the
whole debt into five per cents and for longer
period. This would render the debt uniform
and less expensive, as we'll AZ more simple 10
manage. The longer period would give .
greater value in the transformation Of ons
stock for another, and would not prevent ths
government buying the debt up at any time
with its sinking fund.
Some OF these views are sound enough; but
when Mr.. McCulloch gets on his old hobby
OF forcing specie payments he shows that In
this respect he is man Of one idea. He re-
grets that Congress did not give him moro
power TO contract the currency. He has done
all he could by withdrawing legal tenders, buS
the increase Of the national bank currency has
kept the amount Of circulation much Ms II was
when he made his last report. He regards -
redundant legal tender currency as the prime
cause of our financial difRculties.r What anan-
cial difficulties Where are they Are they
found in his overlooking Treasury or in the
universal prosperity and active industry of the
country, They are nowhere but in his i'm
agination. The truth is Mr. McCulloch appears
to be incapable Of learning either from the
actual condition Of things or the lessons Of
history. He says specie payments ought to be
resumed and could be by the first day Of July.
1868, and he hopes the legislation Of Congress
win be such as to bring II about earlier. There
are no financial difficulties now. nor are there
likely TO be under our present gradually pro-