Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1867-12-06
yEMPIIS APPEAL
THE NATIONAL FINANCES.
Reports of IlIe Secretaries Of lhs
Treasury and Interior and
the Comptroller Of the
Curreney---Sinking
Fund.
TREASURY REPORT.


The Secretary OF the Treasury reports
the finances OF the United States, not.
wlthstanding the continued depreciation
Of currency, In a much more satisfactory
condition than at the last annual report.
! Since November, 1866, 81, ,S99r 263 Of in.
terest bearing notes, certificates OF In
debtsdness and temporary loans have
been converted into bonds, and the pub
lie debt, deductiDg therefrOm cash in
tarest, reduced $50, sos, ,555 during the
4 same period. A decided Improvement
has been witnessed in the general
economical condition Of the country.
The policy Of contracting currency,
I although not enforced to any extent or
authorized by law, has prevented the
! expansion Of credits, and had no little
/ influence in stimulating labor, and in
creasing the production. Industry has
been steadily returning to the healthy
channel from which it was diverted
during the war, and although incomes
have been small and trade generally in
active, in other commercial countries,
1 there has not been less financial embar-
raasmebt than in the United States.
Since the Ist Of September, 1865, the
! temporary loans, certificates Ofindebted- :
ness and five per cent. notes have all
/ been paid, excepting small amounts
| The compound interest has been reduced
from 81, 20, ,469 to sll SIS, ,040, 81, $50 900
! having been taken up with three per
cent. certificates. Seyen-thirty notes
have been reduced from $3.50, ,000, 900 to
/ S73Z SIl .577. while the cash in the
I treasury has been increased from S., 80, .
/ sos to S1S3 9gS 39S. and the funded debt
| increased to S6s5, ,504, 500. In his last re-
port the Secretary remarked that be
was Of the opinion that specie payments
might be resumed as early as the first Of
july. 1855. These RHticipations may
not be fully realized. The grain crops of
1885 we're barely sufficient for home con-
sumption. The expenses OF the War De-
psrtment, by reason of the expenses and
establishment of military Governments
in the Southern States, greatly exceeded
the estimates.
The Government has been defrauded
OF a large part of its revenue upon dis
titled liquors, and the condition OF the
South has been disturbed and unsatisfae-
tory. These doubts and spprehensions,
created in Europe and to some extent at
home, by the utterances of some of our
public men on the subject of finance and
taxation, that the public faith might not
be maintained, may postpone it till spe
Gle uavments are resumed; but nOtwith-
standing these unreasonable embarrass-
ments. much preliminary work hs- been
done, aud there is not, the Secretary
thinks. any insuperable difficulty in the
way Of an early and permanent restors-
ton of the specie standard. It may not
be safe to fix the exact time, but with
favorable crops next year, and no legis-
latiOn unfavorable 20 contraction at this
session, though not delayed beyond the
Ist Of January, or at farthest the lst of
July, 1859, nothing will be gained, how
ever, by the aforesaid resum ptiOn. When
the country is III a condition to maintsin
specie payments they will be restored as
a necessary consequence to such a cOndi-
ton of the national prosperity as will
insure a permanent restoration and pre-
else standard.
The following measure, in the opinion |
Of the Secretary, is important, if not in
dispensable:
First, funding or paying of the balance |
of the interest bearing notes and con- !
tinued contracting Of the paper eur
rency. Second, The maintenance Of 4
public faith in regard to the funded 1
debts Third, The restoration of the 4
Southern States to their proper relations \
to the Federal Government. The Sec
retary argues that the National Banks 4
should be sustained, as they could not be /
destroyed without precipitsting upon the /
country financial troubles which it is |
in no condition to meet At some more 1
propitiOus period it may be wise for
Congress to consider whether the Ma
tiOual Banking system may not be dis
pensed with. That the national system, /
with its limited and secured circulation
and restricted provisions, by sUspendiDg
the State system, has prevented finan
cial crisis, there can be bat little doubt.
1t is entitled to credit for this, aud for
other reasons suggested, it should be sus-
tanned until q better system shall be
devised, or until the country is in a con-
dition to dispense with bank issues.
Regarding, as be does, the issues OF notes
in the first instance Rs having been /
misfortune, their continuance as a cir
culating medium, unless the volume I
shall be steadily reduced without mis-
chief, the Secretary can conceive of no /
circumstance that wOsld justify further
issue Of these deprecated, but legal
tender notes.
Notwithstanding the reduction that
has taken place will stand in the way Of
a return TO specie payments, as a substi-
tuition of them for bank notes would be
regarded by him and the country a.
declaration that resumption has been in
definitely postponed. If those now out
standing shall be reduced at the rate of
four millions per month, the amount in
actual circulation will soon be reduced
so they may not seriously retard restOrs-
ton to the trse measure OF values. If,
on the contrary, under any pretense, or
for apv purpose whatever, their value
should be increased; if they should be
made the sole paper circulation of the
rouatry, q false measure Of value will be
continued, speculation will be continued,
Industry will decline and q great risk be
incsrred, and the financial health will
only be obtained by reversiOD, the effect
Of which upon the material interests and
credit Of the country none can estimate.
Sucb revulsion the Secretary is most
anxious TO prevent, and, therefore, be
cannot approve Of the proposition OF
notes of National Bank is
sues. but recommends the policy of con-
traction be continued. The next subject
he considered in connection with the
permanent resumption of specie pay
mepts is maintenance of public faith
which involves the necessity Of q wise
and stable law, impartially enforced
economy Of public expenditures and
Of the Government to pay
ItH DODQ5 IN dtbOEudnCb Win TIC uuQeE- I
standing under which they were issued
to tax wisely, so as to raise large reve-
nues without depressing industry, is one
Of the most difficult ever devOlved upon
the law making power. Taxation can
never be otherwise than burdensome,
and it has become so, especially when
.ke subject so frequently changes. 1t is,
therefore, Of great Importance that the
revenue laws should be stable. The
present tariff, although high one, has
been proved 10 be productive, while, in
the past two years, it has been highly
protective.
The Secretary does not, therefore, re-
commend a complete revision of the
tariff at the present session, but there are
soune features Of it and some matters
with il which require stten-
ion. The system Of specific duties so.
pears to have given much satisfaction to
honorable dealers and officerso Of customs.
recommending an exclusive
Of specific duties, the Secretary
would suggest for the consideration OF
Congress, whether the system might not
With propTiety be extended TO ali com
nodities which duly bear large proper
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