The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-11-28
a SYSTEM OF FINANCES.
In IA Letter from John j. Cisco, Esq,
FOrmreIS Assistant Treasurer OF the
United States AT New YORK.

United States AT New YORK.
DEAR SIR: l have been asked by
several members OF Congress, at differ
ent times, to write out my views of
what should be done in the present
condition OF the public finances. 1 have
decided to answer all these requests
by addressing my reply TO you.
The condition OF the. Treasury is this:
Besides few bonds of the old debt,
due next year, and few overdue, and
some thirty-year currency bonds, the
aggregate OF these being unimportant
in amount, it owes day (January
l, 1881 /. 81, ,3s5, ,oOo, 900 Of 8 20 ana ota-
er gold bonds; none of the principal OF
which eau be demanded for fifteen
years, except few aves OF 1874. On
these it is paying syery year AN interest
Of Ssl, ,OOO, 900 in gold.
2. Sl45, 100000 OF compound interest
notes, due in 1867 and 1885, principal
and interest payable in currency.
8. S677, ,0OO, 900 of $40 notes; principal
due in 1867 aud 1888
The holders of these may demand
payment Of them when due, or may de-
InHnd, at their option, $50 bonds in
exchange for them. The interest on
these notes Is now payable in currency:
when exchanged for POS, the interest
will thenceforwGrd be payable in gold.
1. S400, 100000 OF legal lender notes,
Including fractional currency, payable
oil demand, and of course payable IN
gold.
The resources of the Treasury are:
l. A revenue in gold which is at pres
ent largely i'll excess of the annual gold
interest.
2. A revenue In currency equal to the
expenses oil government and the inter-
est which is payable in currency.
6. A present reserve OF gold coin of
$50, ,0OO, 600.
The Treasury Is not in perfect credit;
its notes payable on demand being de-
preoiHted 27 per cent. below gold, and
its six per cent. bonds selling much be-
low par in gold, although the interest
is payable in coin.
To this condition of things 1 should
apply, simply, the same rules of con
duct AS 1 would apply to my own af-
fairs IL they were In the same condition,
or as u prudent manager of u bank or
other private company WOULD apply to
IL like condition of its affairs:
1. Being under u heavy load of in
debtedness, would seek first of all to
Improve my credit, so as to make my
promises, Of all kinds pmss at less de-
probation; this would be good econo-
my, for, with my credit improved, l
could make future loans more cheHply.
2. a large portion of my debt being
in the shape oil promises 10 pay on de.
mdnd, 1 should do all could TO increase
my ready means in cash, knowing that
If I raised the credit of the snort prom
ises, my long promises would be sure to
pass ut higher riteS.
3. / would take care that my income
was kept up for the future SO as fully
to equal my future expenses and pay
ments of interest, and if part Of my
interest had to be paid in currency
more valuable than that in common
use, 1 should take especial care that this
part of my future Indebtedness should
be we'll provided for by securing an
ample income i'll that special currency.
4. would let my creditors see that 1
had in the management of my affairs u
fixed, plain, direct system.
Applying theseideas to the Treasury,
IL should in my judgment:
l. HaVo all sales OF its gold forbidden
by Law; letting 1t be we'll understood by
the law itself that the coin WAS kept as
"a reserve and guarantee fund against
the future gold interest, and against the
leuul tender notes, so as to enhance the
current value OF these latter; just as a
bank keeps a reserve against its liahtll'
ties. The loss Ot interest on the gold so
reserved would be compensated fouror
five times over by the Improvement OF
the government credit and of the prices
of its stocks.
The only legitimate demand for gold
among the people is for payment of
duties. The Treasury now pays out
coin for interest six times year, and
the aggregate amount SO paid out in
year $50 .0O0 .OOO), together with the re-
ceipts from our own mines, is more
than sufficient to supply this demand:
2. Stop all contraction of the legal
tender notes; leave them where they
are, In the p Ickets of the people, aud
take measures for making them good,
as above suggested, thus avoiding any
disturbance of business, which would
react upon the public revenue and upon
the prices oflgnvernment securities.
3. Issue no more gold bearing bonds
at present; our gold interest amounts
now to Ss1 900 600 year; onr gold rev.
euue year before last WAS only $50, ,O00,-
600; last year II was $3.50, 900, 600, but it
is not prudent to count upon such
revenue aIways; trade is subject 10
sudden and great Viclssitudes. More
ov0r IL Is bad economy for the Treasury
TO huy in las it is now dOing) its notes
bearing z 3.I0 interest in currency, and
to issue bonds in their place bearing
six per cent in gold, which is over eight
per cent in currency. Time enough TO
do this when we have to do II, that is
when the notes come due.
/. The rs 10 notes are soon coming due,
when, as matters now stand, our gold
interest will be $3.50, 600, ,0O0a year. Be
tween now and that time Is our oPpor-
tunity for strengthening the Treasury
in gold; after that our power to do so
will he in great degree, II not entirely,
out off. ..,.--.s.
have an inconvenient option 10 accept
s 20 bonds or to demand payment when
they come due. They cannot be de-
prived of this option except by their
own consent. 1t is desirable 10 cave
these notes provided for at once before
maturity, always with the consent OF
the holder. We must pay for such con-
sent. 1 would offer TO take them All
up by funding them at once. But with
a view ofguarCling the gold revenue as
long as possible, and keeping 1t under
control of the government, would not
offer to Iund them in bonds which bear
gold interest. / would otferto exchange
Them for bonds having a definite term
of wears to run. say twenty years. these
bonds to bear 8 10 interest IN currency
with the option TO the government TO
pay instead off 1Otn paper, b per ceh''
in gold, AFTER the tirSt three years.
8. / would apply the same class OF
bonds TO the funding OF the COMPOUND
Interest notes, II any shall need 10 pe
funded, that Is, if the surplus lnteFnnI
revenue should not SuLnce Tor paying
them.
7. Repeal all laws aud parts OF laws
which authorizes The Issue of any class
~ bonds or obligations other than those
above proposed; so that the powers OF
the Treasury may be defined.
q would make no special effort to
reiuce the principal of tho debt. l