The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-12-05

the decree in his previous annual report. On
the other hand, the estimate may prove
$2b, 600, coo too high or barely up to the sum
of gold interest required to be paid, should our
foreign trade and commerce, sympathiziug
with our domestic interests, as they nearly
always do be convulsed by the question re-
ferred to.
To the rapid funding process of the past
twelve months, nearly five hundred millions
in amount, we have nothing at present to
object except to say that if it had been
confined to the four hundred millions of
73O per cents, taken up and cancelled in
place OF including about one hundred mil
lions OF common and compound greenbacks,
the grand total Of $1,000, 900, 600 of gold
bearing bonds would have more nearly
covered the remaining z 30 per cent: than
it is likely to do If contraction of green
backs had not so persistently adhered to.
The Secretary, in his present report, con-
tinues to insist upon this favorite but un-
equal and oppressive theory to depress gold
and TO arrive at early resumption. We be-
lieve that herein he makes grave mistake
or we should say that he repeats the blunder
OF his Fort Wayne speech and the grOsser
miscalculation of his last annual report
The latter he taoitly admits by extending
the time a whole year. The New York
gold room tells the story of the Fort Wayne
speech.
The Secretary now says that he deems it
important, to this end to fund or pay OIL the
remaining interest bearing s-compounds
and 7'30 per cents-and to continue to con-
tract the paper currency-greenbacks Sc
condly, to maintain faith in regard to the
funded debt, to which all good men should
heartily assent. Lastly, the restoration of the
Southern States. All these look to an early
return (July, 1869 of the specie standard.
He admits that he "was authorized and
directed by Congress to substitute $50 OOO,
900 of new three per cent. legal-tender ce riff
Gates for the compound legal tenders, falling
due from June to December, 1867, inclusive.
Thus far he has used only $ll, 800, 900 in re-
demptiOn of October and December compounds.
We deem it almost certain that the Secre-
tary cannot reach his object of specie pay
ments by the inexorable contraction of green
backs, or by destroying their circulation alto
gether, which seems to be the ultimate end of
his theory. 1t is quite certain that thus far,
such contraction has not brought down the
premium on gold. And it is tacitly conceded
that the third element to resumption is the
restoration of the Southern States as an essen
tial element; and how remote this is, at pre-
sent, will be understood by reference to the
Presidents Message. The second element,
the funding or paying OF the remaining interest
bearing notes. is also deemed essential to the
resumption of gold payments by the Treasury,
but not by the national banks. We do the
Secretary the credit to believe that he contem-
plates no partial resumption.
The banks must resume at the same time
with the Treasury to make it general. They
cannot do so with nearly all the available gold
in the country locked up in the Treasury and
the greenback legal-tender circulation, which
would be the equivalent of gold under Trea-
sury resumption, wholly Withdrawn from en-
ployment reference to the last quarterly
bank statement is sufficient to demonstrate
this dificuty-$537, ,000,0 600 of deposits and
$293, 000 900 of outstanding circulation,
against which an average reserve of 20 per
cent. or $207: 500, 900 in greenbacks or gold is
required to be held by law, and would be de-
maDded to be held by public confidence to
make resumption permanent.
We have not time or space to follow Mr..
McCullOch in his unsupported assertion that
we have far too much currency for the busi-
ness of the country, as it is now conducted
while he admits that even paper money is
now scarce at the financial centres--nor to
enter, at present, into the discussion of his
novel proposition to create consolidated six
per cent. collaborating loan, upon which only
five per cent. shall be paid to the holder of
the bonds and one per cent in gold divided
annually to the States by way of quieting
their claim or pretensiOn to tax the present
securities of the Government, which Congress
has said shall not be taxed and which the
Supreme Court will never suffer to be taxed.
The States have preferred no such claim
thus far, and made no demand upon Con-
gress to grant the right of such taxation.
When they do so in form, either by menace
or memorial, it will be time enough to alter
our funding laws, which have already so very
nearly accomplished their mission. We had
supposed that the War of the Rebellion had
quieted the pestilent doctrine of State rights:
and the right to interfere with the power of
the General Government to borrow money on
its own terms is about the last we should
have expected TO see revived, under the sane
ton or sympathy" of the Secretary of the
Treasury.
The eNstiOna al BaDkS-Bank NOteE-Gresn-
backs.
From The ~ Y. Times.
The Report of the Comptroller of the Ma
tinnal Cnrrencv Ia an axlranaIr safisfanfnrrr