The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-04
~. Repor, q tho ssess.ary q the rrea.

sury. -
We publish in full to-day Mr.. McCulloch's
annual report to Congress 1t is very long
one, and we wish we could say that lis ability
corresponds with its length but we cannot,
Tor 1t aboands with absurd and pernicious
financial theories, and shows, what we have
always said, that the Secretary is merely
small country banker, and has not the first
qualification Of statesman.
But before we proceed to touch upon his
arguments and recommendations lot us look
at his igures-at the actual financial condition
OF the country. The total debt on the LIST of
November, 1867, was s2,625,5o2, S43. OF this
there was bearing coin interest So, 204, $40 631
bearing no interest, s402, 1856, S4S; besides over
eighteen millions Of Texas bonds and other
items of old indebtedness. There was in the
Treasury, however, slll,54O.3l7 in coin and
$22,45S,0S0 in currency; leaving the debt less
money on hand, s2,49l, 5O4, 45O.
The receipts from all sources for the fiscal
year ending June 80, 1867 were $490,634,0lO.
The expenditures for the civil service, including
pensions, Indians, War Department, Navy
Department and interest on the public debt,
were S346,729, 129 or this the interest on the
debt was $l43,7Sl, 59l. The loans paid, as they
are called, were STAG, $50 ,525 and the receipts
from loans were 640,426,9l0. That is, in the
payment and Transformation Of this portion of
the debt there was falling Off of 05,923,6l5.
This would make the total drain upon the
Treasury s452,652,734, leaving balance of
income over expenditures Of S37.981,276.
The estimated income for the three quarters
of the fiscal year ending June 80, 1868,
Is S296,000,000 and the expenditures
1926, 100000, leaving surplus of million.
The Secretary makes an estimate also of the
next fiscal year ending June 80, 1869. The
figures will be seen in the report on another
page But we must remark that, in view OF the
extraordinary changes that arc likely to take
place and the Secretary's ridiculous mistakes
about the income and expenditures Of the gov
eminent, this seems to us superfuous labor
and very unreliable.
The Secretary still clings to his resumption
theory. While he confesses that the trade,
revenue and condition Of the country have been
such as to check him in his efforts to contract
the currency and force specie payments, he still
hopes resumption may be reached within short
time He did expect 10 reach this by next
July, and Notwithstanding the adverse circum-
stances, as he regards them, operating against
him, he says "the 1st of January, or at the fur
thermost the lst OF July, 1869, specie payments
should be resumed" He takes credit for having
done "much preliminary work" to bring this
about Of course he means by that that he has
contracted the currency and thereby brought
US nearer specie payments In this we think
he deceives himself At any rate, we are con-
vinced he has brought us nearer financial
trouble, and that unless Congress checks him
serious disasters must soon follow.
By far the greater part Of the report is occu-
pied with discussion of the national bank
system and about contraction of the currency
and specie payments. Mr.. McCulloch comes
to the conclusion that the national banks
should be sustained. He argues that they are
$50 interviewer with all branches Of business,
and are so connected with the credit Of the
government, that they could not be destroyed
without precipitating upon the country fnan-
cial troubles" Yet he thinks that when we
shall have attained substantial prosperity ait
may be wise for Congress to consider whether
The national banking system may not be dis
pensed with" Did any one ever see before such
. tumble of contradictionss The national banks
are the greatest blessing TO the government,
to its credit, to the trade of the country, and
they cannot be destroyed without breaking
faith and doing them great injustice
yet the time may come when it may be wise to
break them up. What absurdity! If they
are to bs broken up at all the time to do that
is before they become firmly established,
before they are rooted and interviewer in
all tho transactions and property Of the
country. At present they may be regarded
only as an experiment, but If they should
continue long in existence they may claim
vested rights and privileges. However great
the evil may be it will be hard 70 remove 1t
when firmly established. 1t took years Of the
most desperate struggle with all the power and
will of Andrew jackson to put down Biddle's
United States Bank but that was weak insti-
tuition compared with the national bank combi-
nation. A vast moneyed power like this when
deeply rooted cannot be removed without the
greatest NEUTRALITY-SUSPICIOUS. struggle that
would shake the foundations of the govern
ment. Fit be an evil, now is the time TO re-
move II or never.
The Secretary speaks Of the banks being
CONNECTED with the credit Of the government"
He has not the hardihood to say they are
necessary TO lis credit. Yes, they are con-