The New York herald., 1867-03-12

Message from the President Through Private
Mnes O'ReiIly-The Financial Affairs Of the
Country.
Although President johnson did not think
proper to send in message to the Fortieth
Congress at the commencement Of Its first ses-
sion few days ago, he has issued one In
formally to the country through Private Miles
O'Reilly and the columns of the Citizen. 1t is
in the form of letter from Washington, and
is headed "a Talk with the President" The
views expressed, as we'll as the words gen.
orally, are those Of the President, and, as the
writer says, "nothing has been set down to
which the full assent Of Mr.. Johnson was not
given" This communication, which we copy
in another part Of the paper, refers mostly to
the important subject of our national finances
and national debt, though the political situa-
ton of the country is treated of In connection
with that
Whatever mistakes Mr.. johnson may have
made In bis conflict with Congress and the
dominant party in power, we must admit ne
possesses a good deal of sagacity. He sees
that the 'main issue looming up In the i'm
mediate future" is the great financial one.
and that this "must swallow up all minor ques-
tons" We agree with him; we have repeat
edly asserted the same opinion. But while he
is correct in this and expresses some sound
views with regard to financial matters, the ma
tional debt and the necessity Of economy, he
evidently is not master of the whole subject
He is confused, like one who gropes along
with only flashes Of light to guide him through
darkness. He dwells gloomily on the prospect
Of reputation and . great financial crash
There is morbid exaggeration Of danger in
his mind which the actual condition Of the
country and the future prospect Of our affairs
do not warrant Still we agree with him that
something must be done to prevent great evils
with which we are threatened. Our whole
financial system must be remodelled; we must
provide for tightening the burden of the ma
tional debt and for its payment in the easiest
manner possible, in order to prevent the ques-
tion of reputation being agitated. He says
truly that if the debt be made too burdensome
the people will begin to talk Of reputation.
"Our debt might be easily paid" he asserts,
"provided the brakes against excessive ex-
penditures could be turned on quickly enough;
but now is the appointed time, and now or
never the work must be commenced. If that
debt is ever to be paid we need economy
in every branch of the public service"
The President comments severely on the
extravagant and reckless appropriations Of
Congress as hurrying us on to reputation,
and he warns the "bondholding aristocracy,"
action Of Congress, that they are working for
their own ruin.
Mr.. johnson docs not point out specifically
the way of safety, though his remarks of
general character about economy and so forth
are well enough. He does not see the way
clearly; probably he has never studied the
subject much. It is subject, however, of the
first Importance, as he says, and If he would
make himself master of It. he could recover
his popularity and make himself the foremost
man in the country.
What should be done, then, to save MS from
financial disasters and the perpetual burden Of
an enormous debt, OF, as Mr.. johnson thinks,
from reputation! First and foremost Con-
gress must check its reckless extravagance in
appropriations Of the public money. In fact,
1t ought to retrace its steps in this respect
and undo much that It has done. Nothing
short of strict economy in every branch of the
government can save rs. The enormous grants
for bounties and other purposes must be
stopped.
The next thing to be done is to abolish the
three hundred millions Of national bank cur
rency by substituting non-interest bearing
legal tenders in place Of that. With these
three hundred millions Of legal tenders the
government could buy up or cancel the
bonds now deposited as security by the
banks for their circulation. The govern
ment would save about twenty millions
o year by this operation in the interest on the
debt Practically the debt would be reduced
three hundred millions. And who would
ufferi No one but tho national bank mo-
nopolists. Injustice would be done to. nobody
The volume Of currency afoat would not be
increased It would be simply substituting
legal tenders for national bank notes. There
would be this advantage, too, that We should
have . uniform and . better currency. The
banks could do their business with legal
tenders just ~ we'll as with national bank
notes. They are now . most dangerous
moneyed power and political machine. Hper-
mitted to retain their privileges they win alb
sorb all the profits Of industry and control the
destinics Of the nation. Let the axe, then, be
put to the root Of these dangerous establish
ments.
Another plan that should be adopted to
tighten the burden Of the debt is to pay or the
debt ~ 1t becomes due by the issue Of legal
tenders ct whatever might be their value In
the market This should be done, however, a.
gradually a. possible to avoid great food Of
paper money Then, in order to keep the
volume Of currency within reasonable bounds,