The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1867-12-06

Co ? Ill pun
The expenses of the War Depart
ment, by reason of the expenses in
Cured in the establishment of mill
| AIRY governments in the Southern
States, greatly exceeded the est
ma 'es.
The Government has been de-
frauded of a large part Of its revenue
upon distilled liquors, and the con-
ditiOn of the South has been disturb
ed and unsatisfactory; the fears and
apprehensions created in Europe, and
to some extent at home, by the utter
| ances of some of our public men on
the subject of finance and taxation
but for this the public faith might
be maintained, and it may post
pone the time when specie pay
ment shall be resumed but notwith-
standing these unexpected embarass-
ments, much preliminary has been
done, and there is not, in the opinion
of the Secretary, an insuperable diff
Guilty in the way of an early and per-
manent restoration of the specie
standard. It may not be safe to fix
the exact time, but, with favorable
crops next year, and no legislation
unfavorable to contraction this ses-
sion, it ought not to be delayed be-
yond the first of January, or, at the
furthest, the first of July, 1868.
Nothing will be gained, however,
by a forced resumption while the
country is in no condition to main
tain specie payments. They will be
restored, as u necessary consequence,
when such a condition of national
prosperity Is reached as will insure
tier permanently.
To effect this the following meas
ures are, in the opinion of the Secre-
tary, important, If not indispensable:
/. Funding, for paying off the bal
ance O. the interest bearing notes,
and the continued contraction of pa
per currency.
2 Maintenance of the public faith
in regard to the funded debt
3. The restoration Of the Southern
States to their proper relations TO the
Federal Government! M
The Secretary argues that the pa
tional banks should be sustained, as
they could not be destroyed without
precipItating upon the country fnan-
cial troubles, which it is now in no
condition to meet. At some more
propitious period it may Devise for
Congress to consider whether the ma
tional banking system may not be dis
pensed with. That the national sys-
TEN, with its limited and secured cir
culation and restricted provisions, by
suspending the State system has pre-
vented a financial crisis, there can be
but little doubt. For this tits emit
tied TO credit, and for this and other
reasons suggested that it should be
sustained until a better system shat
he devised, or the country in condi-
ton to dispense with bank issues. Re
garding, as he does, the issue of
United States notes in the first in
stance as a misfortune, aud their
continuance as circulating me
steadily be reduced without mischief,
the Secretary can conceive no circum
stance that would Justify he further
issue Of these deprecated but legal
tender notes. Notwithstanding the
redu1tions that have taken place will
stand IN the way of return to specie
payments, a substitution of them for
bank notes would be regarded by him
aud the country as a declaration that
resumption had been indefinitely
postponed. Those now outstanding
Shall be reduced at the rate CT four
millions per month The amount in
actual circulation will soon be re-
dueed so they may not seriously re-
tard restoration to the true measure
value, bat on the contrary, under 40
pretense, OR Tor any purpose what
ever, their value should be in
creased, or if they should be
made the sole paper circulation Of
the country. a false measure of
value viii be continued; speculation
VIII be continued; industry will de-
cline. and such great risk be incurred
that financial health will be emily at
tanned by a revulsion, the effect OF
which upon the material interests and
credit of the country no one can esti-
mate. Such a revuls on the Secretary
+. most anxious to prevent, an / there
fore he cannot approve OF the propo-
sition for substituting notes Of the
United. States for notes Of National
Back issue, but recommends that the
policy Of contraction be contiBUed.
The next subject to be considered III
connection with permanent resump-
ton of specie payment is the nain-
tenance Of public faith, which in
wolves the necessity of wise. reveHve
laws, impartially enforced economy
in the public expenditures and a
recognition of the obligation of
the United States Government to
pay its bonds in accordance with the
understanding under which they we're
issued; to tax wisely. so as to raise
large revenues, without expressing in