The Portland daily press., 1867-12-06
The Nniional Finances.

Secretary McCulloch's report may NC 'u
mod mn in n Sinale sentence: Honesty is the
hest nolicv He rejects with indignation the
on;hblas hv which some politicians are trying
20 ox,,,oin away the public debt; he declares |
,hot tbe debt must be paid according to the |
.,,,derstanding with which it was created; and |
he recommends as the best possible provision
for its payment years hence, when it falls due,
return to specie payments now, at the earli-
est possible moment. SO far he is unaues-
tionably in sympathy with an overwhelming
majority of his fellow citizens Business can
never be established on firm basis, until we
know what dollar means. At present and
SO long as the present state of things lasts, we
are like haberdasher selling ribbon with an
indiarubber tape measure instead of an OAK
yardstick Our measure of value, the dollar,
is worth 70 cents to-day; last week it was III;
who knows where Il will be next week? We
cannot consent to do business on SUCH terms
moment longer than is absolutely necessary.
How shall we prepare for resumption? For
individuals the rule is simple enough: Keep
out of debt. The question which Congress
has to consider is more difficult Mr.. McCul-
loch believes that the currency is still redund-
ant, and that as this is no time for expert
ments, the plain, practical road to resumption
lies through continued contraction of the
currency and the accumulation of an ample
coin reserve. In justification of this policy be
shows that while nearly sixty millions of the
public debt have been paid during the last
year, and seventy millions of United States
notes have been withdrawn from circulation
during the last two years, industry has never
theless been steadily returning to the healthy
channels from which il was diverted during
the war, and no commercial country has suf-
tered less from financial endorsements than
the United States. The apparent scarcity of
money he attributes to the absorption OF money
by the holders Of agricultural products and 9TH
ergoods,who are unwilling tosell a t the falling
prices which the approximation OF greenbacks
TO gold requires. Some kinds of goods have
already given way, but short crops have en-
abled the grain SPECTATORS to hold on a little
longer. Meanwhile the scarcity of money,
like the scarcity of any other article, tends to
increase its value, bringing it nearer and near
d er to gold, and preparing the way Tor resump.
tion.as .rs -. ~ 49,.
oiiGIhls Is Mt. McCulloch'sD theory. On the
I other hand, the Tribune believes we can re-
sumo Tomorrow, and If the cure ncy is not re-
dundant undoubtedly we might. Tbero il
just that doubt which renders the expoIrimant
hazardous; for if we should make the attempt
i and be forced into suspension again, after ex-
changing the hundred millions of gold in the
treasury for greenbacks, dollar for dollar, we
should undoubtedly have made very bad
bargain. There can be no question which pol
icy is SAFEST the case does not appear to justi-
fy the heroic treatment recommended by the
Tribune. Something, however, must be done
We cannot stand still, and nothing can now
JUSTIFY further issue OF paper money. 1t is a
pity that nobody can prone our present ability
to resume, but until somebody does, there re-
ally seems no prudent course open to us, ex-
eept to continue the gradual process of bring
Ing the currency to par by reducing its
volume. ~ i..4i.'l - .ft
si The Secretarys proposition respecting the
taxation of government bonds is novel and will
be read with interest. 1t seems rather cum
bersome plan, for the national government to
collect the tax, and afterwards distribute it to
the States, when the States may Just as we'll
be authorized, as Mr.. Pike suggests, to collect
y.
we see no objection to this method of eoualiz-
ing ing taxation. The shipbuilding interest, we
are glad to see, is again recommended to the
consideration of Congress. Backed by the
recommendation of the Secretary of the Treas.
ury, Mr.. Lynch's bill allowing drawback of
all duties and taxes on materials used in shin
building, ought to receive early attention.
The acts of July 10, 1882 and June 30, 1884
relating to trade with the Spanish colonies.
have been so long in force that our merchants
have almost come to regard them as natural
laws, and the Secretary's proposition to repeal
Them, though only repetition of similar prop
ositons made by his predecessors in office, will
be received at first with an emotion of sur
prise. The first of these acts provides that
vessels owned wholly by Spanish subjects,
coming from any of the colonies of Spain, shall
pay in the ports of the United States the same
tonnage duty levied ON American vessels
In the colonial port from which the Spanish
vessel comes, this duty however to be abolished
by the President whenever he is satisfied that
the discriminating or countervailing foreign autr
ties ON American tonnage have been discontin-
ued. The second act provides that Spanish YES
N'S-NsNSt@-hs AASih "a OiCutiils w VI OrJO
Rico shall pay in the ports of the United States
such datyin addition to the duty payable under
any other law, as shall be equivalent to the
duty that would be impoe- |
posed upon the same cargo if exported from |
or imported into the port of Havana in an
American bottom; also that no Spanish vessel |
shall clear for any destination except Cuba or
Porto Rico, without giving bond in double the |
value of vessel and cargo that no part of the |
largo shall be landed in either of the islands |
lamed, the bond to be cancelled on producI
ng certificate from an American consul
that the cargo has been landed elsewhere in
good faith. This act, like the former, is to be in
oree only so long as the Spanish regulations
which it is designed to offset are continued in
Orees The effect of these laws has been to
rive Spanish vessels from our ports. The eff
ect Of their repeal would be to re call them,
nd to give an advantage over Amer can bot
oms. This would probably increase our COM
nerce somewhat, but it remains to be eonsid-
red whether it would not at the same time
njure our carrying trade to such an extent as
20 eounterbal ance that advantage m d. .s.5s, /