The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-05-29
the FINANCIAL SITUATION.

Recent and Impertant Views Of che Secretary
Of tho Troasary-Inoreaso or tho Pablic
Debt Unaveidablo.
The Secretary OF the Treasury having been invited by
pliment Of public dinner in that city, makes long
reply, in which no regrets his inability TO visit New
England ct present. and makes the following rsmarks
upon tho present financial situation may 92):-
need not assure you, gentlemen. that Il shall be nv
earnest purpose continue 90 administer nv once
%e You must not expect however ,Sss oUr os,si1
for the rest OF the present and tho early part
Of the next fiscal year will be - satisfactory they
have been for many months past The donations or
bounies TO sodes preparations for threatening Isdan
war; II the itself should be avoided and very
cause unusually heavy drafts 70 be made apsn tSe ,rss
sury whio the other hand the genera failure Of the
wheat crop and the partial failure Of the crop ass
States their proper relations with the federal goveru
men the duiness Of trade throughout the country
partly Of the natural reaction which always follows
periods Of excitement and OBSERVATION-DISCLOSURES with
reduced taxes will considerably affect revenues
This combination Of adverse circumstances may retard
return to specie payments. and with Largo ISSUES OF
bonds to be made to the Pacific Railroad and its branches
divisions will prevent for brief season reduction
OF the public debt, and may render q temporary
increase Of 1t unavoidable; but il will weaken my
fah in ability to move again in the right drec-
this check to progress will lead improvements
revenue laws and TO increase OF efficiency their
naSIeQ DISSERTATION Congress
Southern States and secure greater economy IN all
branches OF the public service.
some surprise may exist that have not for some
months past reduced the circulation Of United States
notes according TO tho authority conferred upon BY
Congress; and an inference may DO drawn from IL
that my opinion upon the subject of contraction has un-
dergone change. Permit say, therefore. that
much persuaded ever Of the importance OF an
early return 70 specie payments and of reduction Of
the currency, of checking extravaganza and
speculation and Of increasing production without which
all Efforts TO restore permanently the specie standard
win be Intellectual What the country Deeds, 10 order
That specie payments may be resumed and
maintained and real prosperity secured, ID an
increase Of industry and . restoration Of our
former habits Of economy. AZ people, among
ourselves, must moro and spend less. In our
trade with foreign nations must soil moro or buy
less Any different prescription for existing financial
evils ia my judgment quaokery That contraction will
tend bring about this desirable condition Of things
have doubted but nevertheless suspended
and for tho following reasons either OF which would
haps have justified my course and all Of which have had
moro or less influence in determining It
Nrs.-The views OF . majority Of the members Of
Congress- indicated by NUMBER Of votes last winter,
adverse to immediate contraction, and have moi
the law-maltng branch OF the government, without
whose support must be powcrlesa
Secnd There have existed for some months past
forebodngs of financial troubles. and while
they continued l have been apprehensive that con.
traction OF the cureacy tho object and eject Of u beng
IN the commercis Cities ~Sich sxisndiaS over the
country and beyond the speculative interess wonld H.
juously aect Legitimate business and ths revenue de-
pendent upon Il. tt. fsf efe
Third Large amounts OF Understanding notes ars
to be paid converted within the pgesent saA nsKi
fiscal year. - which II seemed prudent Tor he 1Est "a
direct attention, leaving the question or castA
ment Of the circulating notes TO be determine0 from
month 70 month. By the condition OF the country and
Of the Treasury.
Fourth that the failure OF the crops and
the other circumstances alluded to would seriously
Affect business considered II important that the
public mind should not b diverted, by the criticisms
and complaints Of those who opposed to contraction
from the real causes Of srouble-that . sound pocy
should not put In peril by bong made the Escape
goat" for evils resulting from different causes.