Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1867-12-13
From the National Intelligeucer.
Report of the secretary of the Treasury
ITrnn the Finances.

interest, is of more general importance at
the present than any former time IN the
financial history of the country. This re-
port, it will be Observed is made annually
by law, not to the President, but to Con
gress-the body to which is contided the
entire subject Of revenue. taxation and
the maintenance Of tue public cledlt.
The Secretary opens the report with the
assurance that the finances Of the United
States notwithstanding the continued de-
probation of the currency, are IN more
satisfactory condition than they were
year ago. Nearly five hundred millions OF
Understanding notes, certificates OF IN
debtedness, and of temporary loans, have
been paid or converted into bonds, and the
pablo debt has been reduced by sixty mil
lions:
'Iho policy Of contracting the currency, al
! though not euf rced to the extent authorized by
law, has preye nted an expansion o. credits, to
which d rcdludaut and especially GeprecSted
curr -ncl Is always q" incentive, and has had no
Ii e i Il encG III stimulating LABOR and lncrea lS
pIOduc ion. Indus " k4- beeu steadily returning
to the healthy hannets from which Il was oil
vert,d during the War, and although incomes
have been e1na i. and trade generally inactive, III
no Other commercial country has there been less
finan iai embarrassment than IN the Uni ed
Sta es."
A contrast is drawn by the Secretary be-
tween the critical condition Of the finances
|
| parativply satisfactory state OF things. The
Secretary relied much upon the authority
to issue the seven thirty Treasury DOtea.-
/ The people, with the Jealous and able sup
| port of the public press, without dlStlnc-
| ti0n Of party, promptly look up the entire
| issue, to the great relief of the Govern
ment. The national banks. too, gave eff
cient aid, by liberal subscriptions, to the
effort for the support OF the Government
credit.
She CONDITION Of the country and the Treas
ucy determined the policy Of the ) cretHry, which
/ has te to convert tic Understanding notes,
| temporary .Oaus, &c, into Gold-hcariug bonds,
and to contract the aPer circulation by the re-
demption CT United States notes For the last
two wears this policy las been steadily, but care
fnlly pursued, ard the result upon the whole, has
been satisfactory to the Secretary, aud. as he be-
leves, to q larg" majority OF the people"
The Secretary suggests, as the time when
specie payments may be wholly resumed, the
1st of january, 1869, or, at the farthest
! the LIST OF July, 1869.
The conditions indispensablefo for resump-
ton are
g Fret The funding OF payment Of the balance
/ Of interes.-Dearng no'es, and a continued con-
traction OF the paper currency.
! ''SccOId The maintenance Of the public faith
! in regard to the funded debt.
! Third Che restoration OF the Southor States
! in their proper relationa to the Federal Govern
/ ment.
. II his opinion be correct, the question OF per
mGnent specie payments, involving as II does the
prosperity OF the country involves tn" great ques-
! ton Of culTcscY taxation, and reconstruction,
which engaging the attention OF the pco-
pc, and cannot fad 10 receive the earnest and de-
4 beratc attention OF Congress-"
The Secretary proceeds TO discuss, with
great force and clcarness, tho great ques-
ton of return to q specie standard. The
views presented by him in his report two
years ago, III favor OF a return to specie
PAYMENTS were promptly approved by u
resolution Of the House Of Representatives,
and seemed to be heartily responded to by
the people. Congress limited the extent
of contraction, and the Secretary has con-
formed with it, continuing the reduction,
with the exception Of some months when
the state Of business rendered it injudi-
ciOus.
The continuation Of this policy he con-
sidtGs as obviously wise, and proceeds to
show that it has had the happiest results.
He refers especially to the demoraizing
influences of unconvertible Government
currency, to which no one can be blind.
The report goes into an argument to
show that the contraction should be APP
piled to the legal tenders, rather than to
the national bank notes. It does not APP
prove the proposition Of substituting the
! legal tenders for national bank notes, and
recommends that the policy of contraction
be continued.
In connection with tie mountaineering
ton of specie payments, the report treats
the subject Of the preservation OF the ma
tional faith, wise and stable revenue laws,
/ vigorously enforced, economy i'll the pub
/ lie expenditures, land a recognition Of the
obligation of the Government to pay its
! bonds in accordance with the understand
ing under which they were issued
Commerce and industry cannot thrive,
nor can national faith be kept without re-
sumption Of specie payments. He says;
An irredeemaole curren,y is q financial disease
which retards growth instead Of encouraging 1t !;
| which stimulates speculation but dmInohes Ia
Dor 4 healthy growth is 10 be secured by the
removal Of the disease, and not by pOstpouiug the
proper treatment Of 1t il the expectation that the
vigorous constitution OF the patient VIII eventually
overcome it.
The excessive duties levied upon some
/ foreign imports are shown TO be very pre-
judicial to our foreign commerce, naviga-
tion and building. Reduction is re-
commended of such duties.
AS to the internal revenue, he recon-
mends the system OF reduction proposed by
MIR. u. A. Wells.
The Secretary makes statement to show
that it was the design and understanding
of Congress that the fye-twenties be paid
in gold, both interest and principal.
Upon the popular question OF taxing the
United States securities, the Secretary
sympathizes with the view that they ought
to pay a share on the public burden. He
proposes plan for this purpose, as fol-
lows
"Afte giving the subject careful consideration,
the Secretary can suggest no better way Of dong
it than by issu. OF bonds to be known as the
consolidated debt Of the Uni'ed States, bearing
six per cent interest, and having twenty years to
run, into which ali other Obligations Of the Gov
eminent shall rapidly possible be converted
onesiXth part Of the interest at each semi nnual
payment TO be reserved by the Government and
paid over to the States, according to their pOpu-
ton. BY this means all the bonds, wherever held,
would be taxed alike and general distribution
Of them to be secured. 'uCh taxes, inciud ng the
leyies for e county and municipal purpOsee,
now, as general thing, exceed one per cent, but
when the debts incurred for the payment OF boun-
ties are paid, (and in most Of the states they
already in the process Of rapid eXtinctIOn,) and
economy is again practiced in the administration
Of sta affairs. this indirect assessment will be
quite likely t equal the tax assessed upon other
property. If the debt to b. funded shall amount
to g 00Q, coo, 000 the amount to be reserved and
paid to tho States annually would nc $40, 600, 600,
which would give to each Of the States, in gold,
the sums named in the report"