The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1867-04-11

vestlgating COmmitte, and his attempts to
do so does not bear a favorable appearance
A System of Finances, ina Letter from
John ], Cisco, ESQ, Formerly Assistant
Treasurer of the United States at New
York
DEAR SIR II have been asked by seve-
raj members OF Congress- at different times,
to write out my views of what should be
done in tue present condition of public f.
nances. i have decided to answer all these
requests by addressing my reply to you
| The condition of the treasury is this:
Besides few bonds Of the old debt, due
next year, and few overdue, aud some
thirty year currency bonds. the aggregate
Of these being unimportant in amount, it
owes to-day Dan, l, 1867, 1st. 1885,
100000 of 500 and other gold bonds; none
Of the principal of which can be demanded
for fifteen years, except d few fves of
1874, On these it is paying every year an
interest of S8l, 900 in gold
2. $I45 900 of compound interest notes,
due in1867 and 1868; principal and int
rest payable in currency.
3. $677, 900, 900 Of z $40 notes prin-
cipal due in 1861 and 1868
The holders of these may demand, nav |
ment Of them, when due, or may demand, |
at their option, 5 20 bonds in exchange for
them The interest on these notes is now
payable in currency when exchanged for
5-20s, the interest will thence forward be |
payable on demand, and of course in gold |
The resources of the treasury are
|. A revenue in gold which is at present
largely in excess Of the annual gold int
rest.
2. A revenue in currency equal to the
expenses OF Government and the interest
which is payable in currency
3. A present reserve Of gold coin of $50,
900, 600.
The Treasury is not in perfect credit; it's
notes payable on demand deprecated 27
per cent. below gold, and its six per cent
bonds selling much below par in gold, al |
though the interest is payable in coin
20 this condition of things, should APP
ply the same remedy as | would to my
own affairs if they were in the same
condition, or as prudent manager of a |
bank or private company would apply |
to like condition of its affairs
l. Being under heavy load of indebted
ness | would seek first of all to improve my
credit, so as to make my promises of all |
kinds pass at less depreciation this would |
be good economy, for with my credit i'm.
proved, | could make future loans more
cheaply
2 A large proportion Of my debt being
in the shape OF promises to pay on demand, | !
should do all | could to increase my ready
means in cash, knowing that if [ raised the |
credit OF these short promises my long prom
Uses would be sure to pass at higher rates. |
3. would take care that my income was
kept for the future so as fully to equal my
future expenses and payments of interest, |
and if part Of my interest had to be paid in |
a currency more valuable than that in com
mon use, | should take especial care that
this part of my future indebtedness should |
be we'll provided for by securing an ample |
income in that special currency.
4. [ would let my creditors see that |
had in the management Of my affairs a
fixed, plain direct system.
Applying these ideas to fine treasury, it
should i'll my judgment.
l. Have ali sales of its gold forbidden by
law, letting it be well understood by the
law itself that the coin SO to be retained in
the Treasury was kept as reserve and guar
dnle6 luuu aS5tBiLlSG the future gOIu interest,
aud against the legal tender notes, so as to
enhance the current value of these latter
just as the bank keeps a reserve against its
liabilities The loss of interest on the gold
$50 reserved wonld be compensated, four or
five times over, by the improvement of the
Government credit and of the prices Of it's
stocks.
The only legitimate demand for gold
among the people is for payment of duties.
The Treasury now pays out coin for interest
six times year, aad the aggregate amount
so paid out in year $50, 900, 000), togeth-
er with the receipts from our own mines, is
more than sufficient to supply this demand.
2. Stop all contraction of the legal ten
der notes.; leave them where they are, in the
pockets of the people, and take measures for
making them good, as above suggested
thus avoiding any disturbance of business,
which would react upon the public revenue
and upon the prices Of Government securi-
| ties.
/ 3. Issue no more gold bearing bonds at
/ present; our gold interest amounts now to
over SSl, 000 600 year; our gold revenue,
year before last, was only $85, 00O 900, last
year it was $3.50, 000 900, but it is not pru-
dent to count upon such a revenue always
trade is subject to sudden and great vicissi-
tudes Moreover, it is bad economy for the
! Treasury IN huv i'm (as If is noKu doinoN Ifs