The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1867-12-13
SECRETARY oFrHn rRnAsuRY

The report of Secretary McOulloch on the
condition of the Treasury and state of the
National Finances Is an elaborate document.
The National Debt has been reduced, in the
past year, about sixty millions of dollars.
The currency aud other evidences of indebt-
edness have been contracted as follows: All
the temporary loans, certificates of indebted
ness and per cent. notes; compound in
terest notes have been reduced from $2I7.
O24. l6O to $7I,s75, ,O4O; I 3 10 notes from
$3.50, 100000 to 1887 SIS, 800; U. S. uotes,
including the fractional currency, from
J$459, ,3Il, to 1881, 81 AVS; while the
cash in the Treasury has been Increased
from sss,91s.O55 to $ls3, ,99s, SOs.
The Secrstary of the Treasury savs IL
may not be safe to fix the exact tpe for a
resumption of specie payment, hut thinks
that with favorable, crops next wear. and no
Legislation unfavorable to COP, traction at this
session, it ought not to be delayed beyond
the lst of January 1863. iH7 8 a'as
He takes strong positf IN against the aboIi-
tion of the National Be uks, Maintaining that
an issue of greerhac ks instead of National
Bank notes would l,e equivalent to fuinous
imitation Of the currency. -
In regard to paying the bonds in green
backs, be lays no such understanding e1-
lsted; that the bonds were negotiated with
the definite understanding that they were
payable in coin; that the contracts we're
made in good faith on both sides /; and good
Faith and public honor, which to the nation
are of priceless worth. require that the con-
tracts should be complied with in the spirit
in which they were made.
Asto s1ation of the Bonds, the Secre-
tarys report says: There is general senti-
ment smong the Taxpayers that the exemp-
tion Of government bonds from local taxation
is no. exactly right, and that it ought to be
in some way avoided in future issues. The
Secretary has no hesitation in admitting that
he is in sympathy with this sentiment. The
difficulty in the way, however, as has been
suggested, arises from the fact that If the
bonds thereafter TO be issued were to be
subject to local taxation, very few would be
held where taxes are high, and there would
be constant tendency to a concentration of
them in States and counties and cities whose
taxes are lower, and in foreign countries
where they would escape taxation altogether.
It is matter of great Importance that govern
ment bonds should be desirable investment
in all parts of the country, and it is obvious
that the States should be in some manner
compensated for the right now denied of
taxing them as other. kinds of property are
taxed. After giving the subject q careful
the Secretary can suggest no
better way of doing it than by an issue of
bonds to be known as the Consolidated
Debt of the United States, bearing 6 per
cent. interest and having 20 years to run, in
to which all the other obligations Of the
government SHALL as rapidly as possible, be
One-sixth part of the interest at
zach semi-anuual payment to be reserved by
the government and paid overlto the States
according 10 their population. By this
means all bonds, wherever held, could be
taxed alike and a general distribution. of
them secured, State taxes, including levies |
for county and municipal purposes, now, as
a general thing, exceed one per cent, but |
when the debts incurred for the payment of |
bounties are paid-and in most OF the States !
they are already in process Of rapid e1tinc-
economy is sgain practiced in the |
of State affairs, this indirect |
will be quite likely to equal the
tax assessed upon other property. If the |
debt to be funded shall amount to s., 000,- |
900. 900, the amount to be received and paid |
to the States annually would be $2,0OO,OOO.