The weekly Butte record., 1867-11-23
Finanee-Inperts-ExPerts-Be.ds.

The hopes Of an early resumption Of specie pay
nent in the United States. brought about by the
Secretary of the Treasury's Fort Wayne speech.
have proven delusion. A few trials of csntrac-
ton soon satisfied the Secretary and his advisers
that any great reduction of currency would result
IN revusion and an inability the part Of the peo
pie TO meet the heavy taxation necessary for the
payment of the interest in the national debt, and
it was also feared that such a resulsion as might
follow rapid contraction would reduce the ability of
the people to purchase foreign commodities to such
an extent as to lessen the revenue from imports
too largely for the safety Of the national necessi-
ties. Under such . state Of facts the finances Of
the nation are drifting gradually bat steadily along
toward embarrzssments that in the end will
require the ablest and frmest measures to save the
natisn from deep humiliation. To Illustrate the sit.
uation as far as practicable in condensed article:
According tothe Treasury report on foreign and
domestic commerce, published in 1864 the estima-
ted amount of capital held by foreigners in the
United States, including State, national, railroad
and municipal stocks and bonds. was $500 900 900.
Add to the above 81 900 900 900 of national
debt, sent abroad since 1868 to pay for trade bal
ances, and We have the enormous aggregate of
81 500 900 600 Of interest bearing debt now held by
foreigners. Estimating the average rate Of interest
at six per cent. and We have the handsome sum of
$50 900 900 to pay to Europe annually that does
| not appear in our custom-honse returns but nlast
be sent in coin. bonds, or agricultural products.
Our import and export account for 1866 (see treas
ury report of 1867 is as follows:
nrln ding freiohta
Actual value Of exports. $40, 900, 00O
Balance oi imports exports. $14s, 500. 900
Add annual interest as above shown. 90,ooO 0oo
And we have aggregate of. $233. $40, 900
Of annual balance to pay Europe. This balance is
paid by selling our national and other securities at
about Y cents on dollar, and it will take about
1924 900 900 of securities to pay this annual differ
ence between the trade and interest balances con-
stantly accruing against US. 1t is no uncommon
event for from IS 900 600 to 81 900 900 of our
tioual bonds to be shipped to Europe in a single
week. This process may possibly last two years
longer, but the scarcity of bonds for expert, will
begin to be severely felt by the time 5000 900 900
more of them are CLEANED from the country to sup
ply the demands of our foreign customers. When.
ever bonds for export begin to be scarce more spe
Gle will be demanded and higher prices for coin
will be the result; and the people of this country
need not be surprised if coin should rule high as
$50 before the lst of January. 1870. Would the
redemption Of the $40 bonds in currency send gold
above $50? We are now drifting to that point with
our bonds still out standing. None Of them are
taken by our foreign customers except upon
currency basis Did export of products
pay for importations of merchandise and our inter
est securities held abroad. leaving specie to &C
cumulate in this country with view to ultimate
resumption of specie payment, the situation would
be healthier. How can this be.efected If the
currency of the country is contracted to rem
der the people unable to purchase foreign ommoG-
tiles, thus making our exports exceed our imports,
how the people to meet the heavy taxation
necessary for the payment of interest the public
debt If we attempt to make onr exports exceed
our imports by increasing the duties mportstons
! to such extent TO make it improbable to i'm
| port so large amount now do, will we not
lessen the from imports too largely for the
safety of the national necessities, and create de-
fciency to be supplied by direct taxation? Con-
gress and the people may as we'll begin to look the
facts in the face, if they would save the country
from revulson and at least, temporary bankruptcy.