The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1867-12-06

( extended to all the commodities on
which the duty bears 2 large proper
/ ton TO the foreign market price, which
is subject to great fuctuatjon, or Is,
from other causes, with difficulty as
certained.
The Secretary argues that the
United States is pledged to pay its
bonds, principal and interest, in
gold; that, as they were negotiated
with that understanding, good faith
and public honor require that these
contracts should be complied with
In the inspiration in which they
were made Holders of our bonds
at home and abroad, who under
stand the character of the people of
the United States and the grea tness
of our National resources, will not
need assurance that they will be COM
piled with.
q The importance of the restoration
of the Southern States to their pro-
per relations with the Federal Gov
ernment is not over estimated. A
curtailment of the currency and the
maintenance of the public faith of
the Government are not all that Is
required to restore the country to its
proper financial health. We need, in
addition to those, q united country
united in fact as well as name. 1t
may not be proper for the Secretary
In this report to discuss measures re-
garded by him as best calculated to
bring about this most desirable re
suit. This, however, he feels it his
duty to say, that the question Of re
construction, as purely a financial
question, is, in his Judgment. second
in importance to none that Congress
will ever be called upon to consider.
There Is a general sentiment among
the tax payers that the exemption of
Government bonds from local taxa
ton is not exactly right, and that it
ought TO be, IN some way, avoided Ia
future issues. He has no hesitation
IN a mitting that he is In sympathy
with the sentiment. The difficulty in
the way, however, as has been sug-
gested, arises from the fact that if
bonds hereafter to be issued were
10 be subject to local taxation,
very few of them would be
sold. Where the taxes are high
it is matter Of great Importance
the Government bonds should be a
desirable investment ia all parts Of
the country, and it is Obvious that
the States should be 10 some manner
compensated for tie right now denied
them of taxing them as other kinds
o property is taxed. After giving
the subject careful consideration, the
Secretary can suggest no better way
of doing it than by the Issue of bonds,
to be known as the consolidated debt
Of the United States, bearing six per
cent, and having twenty, years to
run, into which all the other obiiga-
tons of the Government shall as
rapidly as possible be converted,
one sixth part Of the interest
at each semi annual paymentto be re-
served by the Government and paid
over to the States according to their
proportion. The Secretary estimates
the receipts for the three quarters of
the year ending June 30, 1867, at
1926, 100000; expenditures for the
same period, 1926. 900, 600; leaving a
surplus OF 81, 100000 The receipts
for the next fiscal year are estimated
al 1881. 100000; the expenditures for
the same period are estimated at
1872, 900, COG; leaving surplus Of es-
timated receipts over expenditures of
$4,000, 600
Since the 1st day of September,
1865, the debt has been reduced
1856, 185, 121. This reduction has been
made under unfavorable circum-
stances, but there is no COON reason
why it shonld not be continued steadi-
IL and without interruption until
every trace of the national debt is ex-