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

mists1 70 accumulate un$ n should reach about the
same proportion 70 the oStsudng United States notes
that In former days. Cd IN the vaults OF well man
aged banking institutions attained their immeoiAte
liabilities, specie payments igbt be resumed without
reduction OF the currency anWhou regard TO the con-
diton OF trade between the led States and other ma
tons
SALES on GOLD FRO THE TREASURY.
under these circumstance feeling sensible OF tho
kas responsibility OF his potion, the Secretary has
deemed II safer better foithe country to act &C.
cording to the dictates OF his Sn Judgment carefully
regarding tho condition If the nkes and Of the Treasi
~, rather than TO take his dirion from those who
however Intelligent ana able wei under no ofcia obi
adv oa in regard 70 the ac sas be less accurate,
Affairs He has regarded STEADY rartst as M more in
nosrs 10 t , people man ne sng Of few million.
experience have assured him tRt IN ordsr Q
secure THIS steadiness In an considerable d.
basis, there must be power In the Trcs ~ n,svan &C.
cessfui combinations to bring aboS fluctuations Tor
purely speculative purposes. he has aSo been cea in
restored by accumulation Of coin in The TrsasuT
be pa out 1t future day In the redempt OF rovrn
%ens obligations but rather By aulctsne. induy
alone make tho United states what they oagt TO
beIa creditor and not debtor nation These view ex
pain the course that has been pursued with tina yod
which, during his administration Of the Department has
come into the Treasury. He has permitted 10 &C.
cumulate whom the the sale Of IL was not pces
sary paying government obligations or to prvent
commercial tAuics, successful combinations apinst
the national credit; and he has sold whenever sass
rsAey - ward or financial crises 10 save she
paper -clgpaist,on Of tho country, far as rae
0cA11x HON unnecessary and damaging deprocjtion-
Dor ixk sass he alone responsible r. in connecting
chem, Any sortism has been shown if the i!oress
OF any psrcslar cass have been especially reg II
has baen without his knowledge and In violatoD MS
structiooS He has not tno slightest suppose,
however, that they have not been conducte honestly.
fairly and jud ciousy.
INVITATION or IHx cURREScY-sfxm rHx orr STANDARD
VALUE.
NAV be hardly necessary FOR the Secsary 70 remark
hal annin nn0 hap annAa
4 importance OF restoration OF the pocie standard or
ne means necessary 70 effect It. He trss however that
thaa reducon currency wout OF itself
Drng a1oas sp,eie payments, although the Chief and
essential means 70 eacs the desired result He regards
rodundant ega tender currency As the prime cause OF
our financial difficulties and cartailment thereof In
dispensabe TO an increase Of labor and reduction OF
prices, to an augmentation Of exports and dminution
OF imports which alone will pe the trade between the
United States and other natonon an equal and satsac
In order that his views on this o,pt NAV not be mis-
apprehended, the Secretary trussthat he will be par.
doned Tor referring teven at risk repetition of
ne mas heretofore presented In 0th to
Congress and In other ways to country TO certain
laws we'll understood but too often disreparded which
regulate trade and oontr the movements
ard and blinded in regard TO our actual financial
condition and our relations with other countries BY an
fnna ed and irredeemabe currency andby the expora-
tion Of our securities that frequent recurrence to nexo
rabo commercial and financial laws is necessary
Ever since trade commenced between the people of
different nations gold and silver have been the only re-
liable and recognized of value and medium OF
exchanges. While in their internal trade oher repre-
used oy all nations money made OF these netas has
been by the judgment of the world the ony
currency possessing the attributes necessary for uni
FORM and universal circulating medium From this judg
mont there 10 no appeal Not only 10 II the trc and
universally acknowledged measure OF value aud medium
o. exchange. but oy M regulating dow I. indicates the
nations Water does not moro naturally seek aievei
than does specie TOW from nation another the
payment OF balances created by unequal exchange OF
commodities Trade between nations is generally and
chiefly conducted by exchange their produclons
put a. these exchanges are never exactly equal here
are constantly occurring BALANCES 70 DO paid In
ching else, and In their payment nothing but the pre-
cious metals 10 lega tender II is this necessity for
paying balances In coin which regulates tho trade o
t0nA II is this great commercial and financial law
which makes the nation that sells than buys the
creditor nation and the nation that buys than
soils tue Debtor nation, and recognizes medium but
coin IN the payment Of balances that determines the
question Of the ability Of the United staes 70 resume
favor II not In our favor il the balance AGAINST us ia
60 small that Il be paid without exhausng drain
upon our precious metals specie payments at
ne resumed Such. unfortunately, 10 not the fact Not
wlthstand'ng heavy exports during past year
hat Of cotton having been $50 pounds or nearly
Se 5nsa gu. .rs s .rs.y
debtor 70 Europe.
Hrosn o. srsus-rRADE sALAScrs LARGELY AGAINST
THE UNITED STATES.
Few facts will put us right on this point Between
che year 1885, whom gold was nst discovered in Cafor
ana mines Uu.d ssss ., ". tho sa
o. 600 ooo nearly all OF which has gone Into the
.os.as general stock ana !. = no, proS.D: sh.s the
very much larger than It was eighteen years ago.
During the fiscal year ending July 49, 1885, the United
Foreign MERCHANDISE frss Of a,
Tsssisn n:ich.nd:. paving '''''''''
ouAy.. .................... S0S, S,OSl
Total. .:.......;-..:.... :. .sA27, sos.slo
OF foreign merchandise there was re-exportsd:-
Srss 2. duty. eleo1,ls1
Dusiable. .......................... s,A3l,2es
Total mixed gold and currency value. sIi.a4i, 400
equal to...................... lo,2ea, 2ss
Total net imports foreign merchandise,
valued in gold. ......... ........... Sn7,ole,s7,
Imports, specie. ACKNOWLEDGEMENTS. 10,329, 150
" which there was reexported. $4,000
Total %. imports. foreign merchandise and
specie. s42as75,oss
1859. the United States exported domes-
tic mers handse. currency value, e48s,.
04o, eo3, reduced 70 gold value 49,. 322,0 s6
specie exported .............. 62,6S3,374
Total domestic eIports valued In gold. AIS 1896, $50
Apparent balance OF trade valued In gold ss0os,577
But these figures taken from the reports the Gus
tom houses do not present the whole truth For many
years there has been Systematic under valuation OF
Foreign merchandise imported into the United States
and large amoun,s have beeu smuggled into the
country along our extended seacoasts and from.
tiex To make up for under valuations and
smuggling and for cost d transportation paid 10 foreign
shipowners twenty per cont least should be added
the imports which would make the balances for the past
year against the United states nearly $780, 600 OOO l,
u evident that he balances have been largely against
she Uni cd States tor some years past whatever may
have ben the Custom House returnG On no other
ground can tho fact be accounted for that very large
amount OF American bonds Ia now held In Europe which
are estimated as follows, 70 wit
United States bonds e3sO OOO
State and municipal bonds. $50 900 900
Railroad and other stocks and bonds. 100 900 600
SoOu,
ND>vtdent, from those figures that the balances are
ssaiLS and, chiefly by the expectation Of our gov.
ernmenl Dcnds are being temporarily and improvi.
IDENTITY arranged; temporarily because large portion OF
these bonds have been bought speculation and will
be likely 70 be returned whenever financial troubles IN