The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-06-15


that temporary increase is unavoidable, our
first thought is 20 measure the possible in
crease. When he assures us that he has not
for some months past reduced the circulation
of United States notes, we naturally turn TO
rebuke our Wall street friends for their con-
slant clamor against contraction, which they
pretend is the cause of the tight money mar
ket; and when, on the 18th day of May, seven
days after being written, this important doou-
inept is published in the New York papers
and gold and stocks begin to advance there
upon, we dare not rebuke the heartless men,
Wall street speculators and gold gamblers,
who insinuate that IL was nice thing for the
forty three Bostonians to have known the
Secretary's views in advance Of the outside
public. ''-,'----~--
If il were not lamentable, however, it would
be laughable TO see the contrast between Mr..
McCulloch's letter dated May %, and the
statement of the Secretary of the Treasury to
the people of the United States dated June l.
The increase in the debt, which on May % was
unavoidable has ON June / become decrease
of So, ,171O00; the contraction which on May
IL had for some months past, and for four
excellent reasons, been suspended, has on
June 1 resulted in a withdrawal of cur
rency amounting to the enormous figure of
S39, 600, ,000 and the faith Of the forty-three in
Mr.. McCulloch's ability to administer the
Treasury so as to merit their and their fellow
citizens' confidence is somewhat rudely shaken.
The fact is, that Mr.. McCulloch and all
future Secretaries of the Treasury had better
confine themselves in their after-dinner
remarks or their ante-dinner letters to simple
facts, and not indulge in prophecy. The pre-
sent Secretary has scarcely ever made public
statement relating ever so remotely to the
future which has not been completely con-
tradicted by himself, or falsifed by events
within very short time, and each time the
result has been more and more mischievous.
In the present instance we can only wonder at
the mysteries of the Treasury accounts which
could have kept the Secretary himself so
entirely in the dark. We do, seriously and
sincerely, believe in Mr.. McCulloch's integrity
Of purpose; but we also believe that he is con-
trolled in many things, against his will, or
! without his knowledge, by unprincipled un-
derlings and vicious system, both inherited
from the time of Mr.. Chase, both symboized
! by Mr.. Chases "private memoranda both
| demonstrated by Mr.. Fessenden's unwilling
ness to put his name to any important paper
emanating from the Treasury both bearing
| fruit in the present condition of the Govern
! ment balances in the national banks-to which
we refer below-and both lending color to the
rumors current in Wall street that the state
ment has been made to look favorable by the
intentional Withholding of acquisitions and
other measures well known to the initiated.
1t is not, however, for the sake of pointing
out Mr.. McCulloch's minor errors, or in order
that we refer to this remarkable letter. Our
main object is to protest against Mr.. Cul-
loch's Interpretation of the duties to which he
is assigned. The Secretary of the Treasury is
appointed to obey the laws made and provided
for the collection and disbursement of the
public revenues. When he seeks to make
laws, when he undertakes, in imitation of the
sumptuary enactments of bygone ages of
ignorance and barbarism, to force the people
of the United States, at his bidding, to in
crease their production, to cease their specu-
lation, to diminish their extravaganza, he only
renders himself ridiculous. Mr.. MoCulloch
wants to check speculation by contracting the
!, currency. Does he forget that there are bears
in Wall street as we'll as bulls-men as ready
to speculate for fall as for rise Is he
ignorant that his letter has done more to in
duce speculation than any one event of the
last three months
Mr.. McCulloch wants to increase production
by contracting the currency and lowering
prices. Does he not know that men hesitate
to produce on declining market, and that the
stoppage of production is more than half due
to his foolish and persistent threats of thai
contraction and return to specie payments
which never comes Mr., McCulloch wants tC
| restore to the American people their former
, habits of economy, all by the magic wand O
currency contraction. The American people
are quite competent to Judge of the wisdom O
their expenditures. They began to economize
as many pinohed face and threadbare Goa
> will prove, long before Mr.. McCulloch under
2 took the care of their individual
pockets. Whatever remnant of extravaganza
may have remained is rapidly disappearing
before a more impressive teacher than con
traction-the tax-gatherer. The law autho
: riZes Mr.. McCuloch to contract four millions
! a month. He breaches contraction on al
occasions, but ''for some months past has no
reduced the circulation" ''He is as muct
4 persuaded as ever of the Importance of con
f traction" but he fails to contract mainly il
order that contraction may not be accused
, of causing some existing financial evils. On
: May p he writes page after page to maxi
this clear to all mems minds, and on Juue
shows that he has virtually contracted thirty
! nine millions during the month.
We have directed Mr.. McCulloch's attention
; to the national balances in the national bank
for the following reason:-At the close o
: March it was commonly reported in Wal
q street that the Treasury was very short of cur
rency, and no little surprise was expressed OF
, the appearance of the April debt statemen
showing currency balance in the Treasury @
: over thirty-four millions. The surprise dim
r inished, however, when the subsequent quar-
G terly bank statement showed that the Trea
I suTy had over twenty-seven of the thirty-fou
millions ON deposit with national bank
z throughout the country-of course free Of in
terest. Now, it is a remarkable fact that 70
the last six months the amount thus depo
t sited has varied very little, and certainly ha
not fallen, as far as the public is aware, beloy
!. twenty-seven millions, looking very much a
: though these twenty-seven millions were on
# sort of permanent deposit or could not be en-