The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-12-05
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Mr. MoCuIloch's annual report 10 congress
is a very long one, and we wish we could say
that its ability corresponds with its length;
Int we cannot, for it abounds with absurd
and pernicious financial theories, and shows,
rybat we have always said, that the Secretary
is merely a small country banker, and has not
the first qualification of statesman. But
before we proceed to touch upon his arguments
and recommendations let us look at his figures
at the actual financial condition of the
country. The total debt on the lst of Novem-
ber, 1867, was 81, 625, 500, 643. OF this there
was bearing coin interest, $2204 879, 631;
bearing no interest, $402, 3S5, S4S; besides over
eighteen millions of Texas bonds and other
items of old Indebtedness. There was in the
Treasury, however, $l11, ,540,31 in coin and
$22, ,0s0 in currency; leaving the debt,
less money on hand, 81 491 ,504, 450.
The receipts from all sources for the fiscal
year ending June 80, 1867, were $780, 634, ,010.
The expenditures for the civil SERVICE inclu-
ding Pensions, Indians, War Department,
Navy Department, and interest on the public
debt, were $346, 729. 129. OF this the interest
on the debt was Sl43, 78l, ,5S1. The loans
paid, as they are called, were $746, $50 525;
and the receipts from loans were $640, ,426, $40.
That is, in the payment and transformation of
LulS DOTIiOu VI Lu6 ueDb lubI6 WAS u Oh
of $105, ,923, ,615. This would make the total
drain upon the Treasury $452 652, 734, leaving
q balance of income over expenditures OF
$37 961, ,276.
The estimated income for the three-quarters
Of the fiscal year ending June 80, 1868, is
1926 900, 000 and the expenditures 1926, ,000,-
900, leaving a surplus of a million. The Sec-
retary makes an estimate, also, of the next
fiscal year, ending June 80, 1869.
But we must remark that, in view Of the ex-
traordinary changes that are likely to take
place, and the Secretary's ridiculous mistakes
about the income and expenditures of the
Government, this seems to us superhuous
labor, and very unreliable.
The Secretary still clings to his resumption
theory. While he conlesses that the trade,
revenue, and condition of the country have
been such as to check him in his efforts to
contract the currency and force specie pay
ments he still hopes resumption may be
reached within short time. He did expect
to reach this by next July, and nOtwithstand-
ing the adverse circumstances, as he regards
them, operating against him, he says 'the lst
of January, or at the furthermost the lst of
July, 1869, specie payments should be re-
sumed." He takes credit for having done
"much preliminary work" to bring this about.
OF course he means by that that he has con-
tracted the currency and thereby brought us
nearer specie payments. In this we think he
deoeives himself AT any rate, we are con-
Vineed he has brought uG nearer financial
trouble and that unless Congress checks him
serious disasters must soon follow.
By far the greater part of the report is oc-
oupied with discussion of the national bank
system and about contraction of the currency
and specie payments. Mr.. McCulloch comes
to the conclusion that the national banks
should be sustained. He argues that they
are $50 interviewer with all branches of busi-
ness, and are so connected with the credit of
the Government that they could not be de-
stroyed without precipitating upon the
country financial troubles Yet he thinks
that when we shall have attained substantial
prosperity 'it may be wise for Congress to
consider whether the national banking
system may not be dispensed with" Did
any one ever see before such a tumble of
contradictions The national banks are the
greatest blessings to the Government, to
Its credit, to the trade of the country, and
they cannot be destroyed without breaking
faith and doing them great injustice yet
the time may come when it may be wise to
break them up. What absurdity If they
are to be broken up at all, the tim 9 to do that
is before they Eecome firmly established, be-
fore they are rooted and interviewer in all the
transactions and property of the country, At
present they may be regarded only as an ex-
pertinent, but il they should continue long in
existence they may claim vested rights and
privileges However great the evil may be- it
VIII be hard to remove it when firmly estab-
nshed. 1t took years Of the most desperate
struggle with all the power and will of An
drew jackson to put down Biddle's United
states Bank; but that was a weak institution
compared with the national bank combina-
tion. A vast moneyed power like this, when
deeply rooted, cannot be removed without the
greatest NEUTRALITY-SUSPICIOUS. a struggle that
would shake the foundations of the Govern
ment. If it be an evil, now is the time to
remove it or never.
The Secretary speaks of the banks being
connected with the credit of the Govern
ment." He has not the hardihOod to say they
are necessary to its credit. Yes, they are CON
nected with the credit OF the Government
that is, the Government lends them its credit
to bank upon, and makes in addition a
gratuity to them of national circulating
Medium. II is a One-sided affair, and the
banks get all the benefit. They are Of no
earthly use to the credit of the Government
and never can be. They draw seven-and- "a
half to eight per cent. in currency on their
bonds deposited and make about as much on
their circulation. 1t is a monstrous monopoly,
drawing upon the credit lent to them, and the
circulation given to them, fifteen or sixteen
per cent. from the industrial earnings of the
people, Mr.. McCullOch and the Comptroller
Ot lne currency endeavOr to make il appear
that 1ne banks do not receive this enormous
Dsnent, ana Mat there would be no saving by
ths supS'ituuSp of legal-tender currency for
nAslOnat pahK a. "A STculatiOn, and they particu-
Lg iSioI ~ s@1Ses the banks pay by the
"S This is. simply ridierss S" argument
the common sense of the ,aI;ov aI% an insult 70
IrnoUn that the property or IL Is well