New-York tribune., 1868-03-26
FINANCLlL PROSPECTS

From Occasional Correspondent
WAsHISGToS, March u, 1868.
We have been swinging istlcssly round IN a big
eddy ever since Congress arrested contraction but
at last the ebb tide has fairly set IN, and now wc are
drifting straight ont 10 Up to January We were
heading toward resumption OF specie payments and
moving steadily toward it.. Since then, till now, We
have been heading nowhere. Unless Congress shall
exhibit more intelligence and more moral courage
than they have thus far shown evidence of possess
ing on the financial question, stand fair chance
of getting quite ont sight of land within the next
twelve months.
We have been and in fact are now, pretty near Ia
resumption and if our legislators resolute and
intelligent TO grasp the situation as they might grasp
IT, we would be out of difficulties in six months
But they are letting slip their golden opportunity
and by so doing they are allowing things to run into
a condition from which we can see reasonable
prospect Of extricaton within any definite period.
AT this moment we are flush. The Treasury has
had large income and shows good balances. II it
could be allowed to retain both, and be permitted TO
fund about one hundred millions of its interest bear
ing and plain legal tenders it cond by the aid of
sufficient foreign credit mot difficult TO securel main
tain its hold and control the situation TIL it carried
the country triumphantly through resumption. But
unless it can maintain its reserves, it is going to
lose its power to do any such thing. The specie in
the Treasury is the only basis the country has for
resumption The banks won't keep any, while they
can pay in legal tenders. They have got no coin /;
and catch them buying it while they can bank at the
expense of the Government innocently paying
them three per cent interest on large portion of
their reserves.
Now see what Congress is doing. II is slicing down
the revenues in all directions. Ii has gone so far
already as to establish positive prospective deficit,
on the most liberal estimate OF receipts Just far
these estimates fail Just so much more will be the de-
felt. The most experienced calculations believe
shall fall short of the revenue TO meet our ex-
penditnres in the next fiscal year by forty fifty
millions Where is this going 10 leave ms year from
the coming Spring. Why, with One-haf our present
specie reserve disspatcd, and with no diminution
whatever Of our volume of paper mOney-lndeed
we shall be lucky If il is not increased If this pros
pect be realized and there seems to be no doubt II
will be, is it not plain that our ability TO resume
specie payments will gradually decline from this
hour and not be anything like rs great year hence
as 10 is now Arc not then drifting straight out
TO sea- with prospect of being entirely out OF sight
of land within one or two years If Congress Will
not even consent to hold on to its present position OF
strength but deliberately rclnquishcs It's resources
and position because il is more agreeable not to pay
than il is to pay, does anybody suppose that year
hence in the hurry Of short session. and the agita-
ton of an incoming Administration ii s going to be-
come suddenly virtnOus and undertake to dam the
currents il has knowingly set in motion Yes it will
do it just so surely as tho Ethiopian will change his
skin or the leopard his spot The fact is palpabe
that the action of Congress is shaping results
for the next two years, and when shall have run
astern hundred millions, as we now seem likely odo