The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-03
The NATIONAL FINANCES.
Abstract Of the Annual Report OF the secre-
tary Of the Treasury.
s2.elA. TlLFsRAa 10 TIE HEaall.

jug houot 70 submit 10 Congress tuts MS regular
annual report The finances Of the United states not
wthsta,dng the continued depreciation OF the currency
arc in much more satisfactory condition than
hcy when The Secretary had the honor 70
Congress hast annual report Since the ls. day Of
November 1884 S4sa $780, 263 OF interest bearing notes.
certificates II Indebtedness and Of temporary loans,
have been paid converted into bonds and the public
debt deducting hesefrom cash In the Treasury which
70 to be applied To- ito payment, has boon reduced
SIS. sos, sos. During the same period . de-
cded Improvement has also been witnessed
in tho general economical condition Of the country
The policy Of contracting the currency, although not
enforced TO that extent authorized law has prevented
expansion Of credits which redundant and espe-
caiy deprecated currency 10 always incentive and
has had no little influence stimulating labor and In
creasing production Industry has been steadily return
ing 10 the healthy channels from which diverted
during the war, and although incomes have beon small
and trade generally inactive, in other al
country has there been less financial embarra ssment
than In the United States
Since the 1st day OF September, 1865, the temporary
notes have all been paid, with the exception OF small
amounts The compound interest have been reduced
been taken up with s shrss per cent cssaca,ss;
seven and thres.tentn notes from $3.50. 900 600
nn.od States s notes INCLUDING s1;
white the cash In the treasury has been increased from
sss2is05s 70 slssses sos; and tho funded debt has
compished there has been commercial crises, and
outside Of the Southern States which still greatly
Sss been NO consaer.ss s0 financial embsrss,msnt e
In his last report the Secretary remarked that after
careful survey Of tho whole field, no Of opinion
that specie payments might be resumed, and ought 70
be resumed as early as FIRST day OF July. 1868 While
he INDUCED the hope that such would be the character
81 industry that this most
desirable event might be brought about at
s, earlier DAY These Of The
1865 were barely sufficient for home consumption Tho
expenses OF the War Department. by reason Of Indian
ments In the Southern States having greatly exceeded
the estimates. Tho government has been dcfrauded OF
LAT. large P Par ao0ao revenue upon soS SsS qSos
disturbed and unsatisfactory. Thsse facts and appre-
hensons created Europe and TO some exton at home
BY the utteraLces OF OF our public mon upon the
subject OF finance and taxation thar public faith might
not be maintained may postpone the time when specie
Ing those unexpected endorsements, much pre-
iimtnary work has been done, and there Is not
S tho usy ns s any
soration OF specie standard 1t not DO safe TO fix
the sxac. time but with favorable crops next year. and
with no legislation unfavorable to contraction Al this
tho LIST Of January. or at farthsrmost The Is.
Sowevsr BY forced resanpsSn When tho country
In . condition TO MAINTAIN specie payments they will
DO restored as necessary CONSEQUENCE TO such con.
ditton Of national prosperity will insure permanent
restoration OF the specie standard the following
ures are In the opinion Of the Secretary important II
not Indispensable
Firsi--The funding or paying Of tho balance OF the
interest bearing notes and The continued contraction Of
Srond-The maintenance OF the public faith Ia regard
to the funded debt.
TAird-Resioraton Of the Southern states to their
proper relations TO the federal government
In the present condition OF the country and 10 view
Of the relations that the national banks sustain to the
government ignoring In this connection the question Of
good faith the secretary has difficulty IN
coming to the conclusion that they should
ali branches Of bushes and arc 50 Directly connected
with the credit Of the government that they could not
be destroyed without precipitang upon the country
Al proptous period, when ths Union shall
havo been fully restored and all the States shall have
resources the energy or their people must sooner
later secure for Thorn, II may perhaps DO wise
banking system may not Be dispenssd WITH the pres
ent Is not favorable limo TO consider this question.
The condition Of our political and financial affairs too
tona banks any considerable nhmber OF them call
= their oans and put their bonds upon the market Tor
iation. Conservative legislation 10 now Indispensable
The public mind 10 too sensitive, busness is too I'M
steady and the political future TOO nn-
certain 70 warrant any financial experiments.
Fortunately required. The national banking
system has furnished circulation deprecated, II Is
true hike United States notes. but solvent beyond ques
ton and current throughout the Union II has aided in
regulating domestic excnsnges ana furnished govern.
been adopted the State banks would have continued
long they tolerated to furnish too country
with bank notes. In most OF the States banks not
required depost for security their notes. and
States where security required thcro
limit To amount Of bonds that might be deposited,
consequently limit TO amount OF notes that might
put 10 circulation. In other States there was no
security beyond the capital Of banks. and frequently
the unreal partial liability Of stockboderA Generally
deceptive, who estimate the extent Of injury which
the people and government would have sustained
II state institutions. without any other restric-
lions than were enforced by state laws. had
been permitted during the war TO occupy the
field All having suspended specie paymeu Is,
aud thereby bosn relieved from the necessity OF fur
pishng evidence of solvency. banks unwisely or dis
honestly managed would have stood on a level with
while the latter would have found u
difficult 20 keep their issues within reasonable
freely by the necessities Of tho government and tho
increasing demand for money, which always tn: result
Of Increased supply 1hs former would have poured
out the irfed.emablo promises until dstrust crested
panic ani panic disaster. That The national system
with us limited and secured circulation and its re-
ssrlced provisional By suspsndny the State sysons has
prevented a financial CRISIS there can be but
little doubt For tins II IL entitled 90 credit and for
this and FOR other suggested u should BE-
tanned until a better sysem shall be devised OF the
country Is In condition TO dispense with bank issues
altogether.
their and yield the cd TO the notes Of the gov
eminent are based upon the suppostion that II snree
substituted for three hundred millions or ma.
tioral bank notes now IN circulation the
government would save some eignfeen mihons oenaTs
Interest which Is q gratuity 70 the banks That
there would bo such saving. nor any saving, By hs
proposed substitution, 10 clearly shown ~ the
report which the attention OF Congress especially
asksd n account were opened with the baeks, and
they were charged with interest on three hundred
millions OF dollars. and the losses sustained through
those that have failed and credited with interest
on this United States notes beld by tham
a a permanent reserve with taxes paid BY
than % the government and states, and with commits
covering only what has been saved in transferring
and dsbursing tho public money, IL would be ascss
tanned that the banks not debtors 70 the United
states
Il ia not necessary, however, for the Secretary TO
dwell this point as bis main objection 70 the subs-
tuition wonld not 10 removed " o saving OF in
tsrsst would DO effected by H. Regarding, A.. no
docs, the issue OF United States notes 10 tho
arss Instance having been . misfortune,
and their continuance az a circulating medium, unless
toe volume shall DO steadily reduced as ffaught with
mischief, tue Secretary can conceive no cifSun-
stances that would justify . further issue. Thass
deprecated bat legal tender uotos, Notwithstanding
the reduction that has taken place, stii sand In tns
A. = IN NAV mou "A