The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-12-05


amount in actual circulation will soon be
reduced SO that they may not seriously re-
tard the restoration to truc measure
value. If, on the contrary, under any
prctcncc, or for any purpose whatever,
their value should be increased, especially
if they should be made the sole paper cir.
culation OF the country, false measure OF
value will be continued, speculation will
be stimulated, industry will decline. and
great risk be incurred. That financial
health will be only obtained BY a reyul.
sion, the effect of which upon the material
and credit Of the country no one
can estimate. Such revusion the Secre-
tary IS most anxious to prevent, and he
therefore cannot approve of the PROPOSE
ton Tor substituting notes of the United
States for National Bank, but recommends
that the policy of contraction be con-
,inued.
1t Is frequently urged by those who adj
mt that the currency is redundant that
inc country is not now in a condition to
pear further contraction that its growth
Will soon render contraction unnecessary
that business, if left to itself, will rapidly
increase TO such an extent as to require
three hundred and eighty millions of
United States notes and fractional cur
rency and three hundred millions Of bank
notes, now outstanding, for it's proper and
accdfnl accommodation. Nothing can be
more iallacious than this unfortunately
popular idea. An irredeemable currency
IS financial disease which rctards growth
instead OF encouraging it which stinu-
lates speculation but diminishes labor. A
healthy growth is to be secured by re-
moval Of disease, and not By postponing
the proper treatment Of it in the expecta-
ton that the vigorous constitution Of the
pa;icHt MI eventually overcome it.
Tho next subject to be considered in
connection with the permanent resump-
ton OF specie payments is the maintc-
nance Of public faith, which involves the
necessity Of wise and stable revenue laws,
and vigorously enforced; eco
uomy in the public expenditures, and a
recognition Of the obligation of Govern
mcnt 70 pay its bonds in accordance with
the understanding under which they were
issued.
TAXATION.
To tax wisely. so as to raise large rcve-
nues without depressing industry, is one
Of the most difficult duties ever devolved
upon the law-making power. Taxation
can never be otherwise than burdeuSome,
and it becomes especially so when sub
jcct to frequent changes. 1t is, therefore,
nf rroat ;mnortancet that in. revenue laws
.hould he stable.
=" @'''''f'
In ORDER that the present tarlli should
be revenue tar'l'' important modlhca-
tons VIII be necessary, winch cannot be
intelilSehuy inaae uA'il business ceases 10
DC S",y@c' ~ uei ""f Ir,'l 10y pS an i IRE
''ce'.tole cu'' 'no9. nv S'o'o '"tt uoo'
NO. '"Vr.,o'., I,SY'.'.io''1 " iio.: 49,
$50. VI 'i1o ''' ~ ~ '.4o i'l'Sc!.V oeS'io
oUt ''leie "ic "oIle 'oH,u'co Vi IL auu SUM-
tuat'cIs C"n"cV'c" Will IL WHICH leqUno
cary "''cH''"u. ;.
nc cApcllG''oG VI tno Dep'l',noul us
cioScs tI"n! u's"H van, ''n."scs ':'chu,',iV uPol
.,o co.ioN',o'' vi ""t'0' oi 'n' L0l.' VIZ
lNc '"''o ''c ''o4 'n" e''iNi''eo VI Oh ."
o"''Te"' OASIS
STRICT OBSERVANCE OF CONTRACTS NECES-
sARY.
Public faith does not depend alone upon
adcouetc revcuue laws. nor upou economy
in the administration Of the Government
il rests also up,n the observance of con.
tracts in spirit as well as in letter. In
fact. without this there will be neither ar
efficient administration of the revenue
laws nor economy in expenditures. No.
thing but absolute insolvency will save
from the inramv OF rcpuGiation nation
that does not pay its debts according to
the understanding at the time they were
contracted; and when nation voluntarily
violates this understanding, it will soon be
unable, from the very effect OF its own eX-
to enforce its revenue laws, and its
expenditures will only be checked by It's
inability to collect. How much of the
decentralization which exists in the revenue
service ofthe United States is attributable
to the failure OF the Government to redeem
legal-tender notes according to their tenor
would be an interesting subject of inquiry
but hardly appropriate in communication
like this. Now, to what is the United
States pledged in regard to the public
debt? Is it not that it shall be paid ac
cordinr TO the understanding between the
Government AID the subscribers to il
loans at the time subscriptions were solicit.
ed and obtained? And can there be any
question in regard to the nature of thi:
understanding Was it not that while
Understanding notes should be converted
into bonds or paid in lawful money the
bonds should be paid, principal as we'll as
interest, in coin Was not this the under.
standing Of the Congress which passed the
loan bills, aud Of the people who fur.
nished money? Did any member Of the
House or Senate, prior TO 1864. in the
exhaustive discussions Of these bills,
ever intimate that the bouds to be
issued in accordance with their provisions