Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1867-06-06

pended-sThe Publtc Debt May he Tenn
porsriIy Increased--HopefuI Views OF
the Future.
The Secretary of the Treasury has
written letter TO certain Boston gentle
men, in the course of which he expresses
himself as follows, on the financial situ-
alton: t.
You must not expect that our monthly
statements for the rest of the present, and
the early part of the next fiscal year, will
| be as satisfactory as they have been for
| many months past. The donations or
bounties to soldiers, preparations for q
threatening Indian war, even If war it.
self should be avoided, and the very lib
eral. appropriations of q miscellaneous
character, will cause unusually heavy
drafts on the treasury; while Oh the other
hand the general failure of the wheat
crop and partial failure of the corn crop
last year, slow progress in the restoration
of the Southern States TO their proper re-
lations with the Federal Government.
dullness of trade throughout the country,
partly the result of a decrease of pro-
duction and partly Of a reaction which
always follows q period of excitement,
/ togetherwith the reduced taxes, will very
considerably affect our revenue. This
combination of adverse circumstances
may retard q return to specie payments,
and, with the large issues of bonds to be
made to the Pacific Rail Road and. its
branches or divisions, will prevent, for
brief season, the reduction of the public
debt, and may even render temporary
increase of it unavoidable, but it will not
weaken my faith in our ability to move
on again in the right direction at an early
day.. On the contrary, believe that this
check to our progress will lead to inn
provement in our revenue laws, and to
increased efficiency in their execution;
hasten representation in Congress of
Southern States and secure greater econ
Omy in all branches of the public service.
Some surprise may exist that have not,
for some months past, reduced the circu-
lation of United States notes according
to authority conferred upon me bS Con-
gress, and inference may be drawn from
1T that my opinion upon the subject of
contraction has undergone a Change
Permit me to say, therefore, that am as
much persuaded aseverof the importance
of an early return TO specie payments,
and of reduction of the currency as
means of checking extravaganza and
speculation, and of increasing production
without which all efforts to restore per-
manently a specie standard will be inef
fectual. What the country needs in or
der that specie payments may be resum-
ed and maintained, and real prosperity
secured, is an increase of industry and a
restoration of our former habits of econ
omy as people among ourselves. We
must earn more and spend less. In our
trade with foreign nations we must sell
more or buy less. Any different pre-
scription for existing financial evils is in
my Judgment, quackery. That contrac-
ton will tend to bring about this desira-
BILE condition of things, / have never
doubted; but L have nevertheless slIs-
pended reduction of the circulation of
United States notes; and for the follow
ing reasons, either of which would per-
haps have justified my course, and all of
which have had more or less influence in
determining it.:
First The views of a majority of the
members of Congress, as indicated by a
number of votes last winter, were ad-
verse to immediate contraction, and |
have not felt at liberty to place myself in
practical opposition to the law-making
branch of the Government, without
whose support must be powerless.
Second. There have existed for some
months past anxious forebodingsof finan-
cial troubles, and while they continued
have been apprehensive that contrac-
tion of the currency the object and cf-
terpreted, might produce panic i'm the
principal cities, and such extending over
the country and beyond speculative in
terests, would injure and affect the legit-
innate business and the revenue depend
ent upon it.
Third. A large amount of interest
bearing bonds are to he paid or converted
within the present and next fiscal year,
to which it seemed prudent for me first
to direct my attention, leaving the ques-
ton of a curtailment of circulating notes
to be determined from month TO month
by the condition of the country and the
Treasury.
Fourth. Anticipating that the failure
of the crops, and other circumstances al
luded to, would seriously affect business,
L have considered it important that the
public miEd should not be diverted by
the criticisms and complaints of those
who are opposed to contraction from the
real causes of trouble, that sound policy
should not be put in peril by being made
"scapegoat" for evils resulting from
different causes.
Finally, you will not infer from what
have written that am not hopeful in
regard to our financial future. 1t has
been my constant aim so to manage the
national finances as to aid in bringing
the country to healthy financial condi-
ton without being subject to severe dis
asters, which many judicious persons
have supposed large debt and derange-
ment OF business, and diminution of
industry occasioned by war, and re-
dundant currency would render inevit-
able My faith that this can be accom-
pllshed is unshaken. Causes which are
now operating against us are exceptional
and temporary. The prospect of good
crop of winteTwheat was never better.
More spring wheat has been sowed, and
more corn has, or will be planted this
season, than ever before. The people are
beginning to comprehend again the i'm
portant truth which seems to have been
disregarded for some years past, that
prosperity is the result of labor; that in
dustry and economy are as indispensable
to national as to individual wealth. /
shall be grievously disappointed if an
other year does not witness large in
crease of industry, enterprise and reve-
nue.; decided progress toward a resump-
tion of specie payment, and steady re-
duction of the public debt. H
Q The money editor of the Cincinnati
Gazette comments upon this letter as fol-
lows:
Mr.. McCulloch has written a letter to
Boston merchants, in which, the tele-