The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-09
NATIONAL DEPARTMENTS.
T HE TIRE AS q R Y.
REPORT OF HUGH M'cUlLoca.

IN compliance with the requirements or law the
Secretary OF the Treasury has the honor 10 make to
Congress the following report:--
In his former communications the Secretary has
expressed 80 fully his views upon the great subjects
the currency the revenues and the public debt that
1t may be thought quite unnecessary for him again
to press them upon the attention Of Congress- These
subjects, however, have lost none OF their impor.
aance. On the contrary the public mind during the
past year has been turned to their consideration with
more absorbing interest than at any former period.
the Secretary will, therefore, he trusts be pardoned
for restatng some ofthe views heretofore presented
by him.
II there is any question in finance or political econ
Omy which can be pronounced settled BY argument
and trial, 1t Is that inconvertibe and deprecated
paper money Is injurious TO public and private in.
ierests. positive political and financial evil, for
which there can be but one justification excuse
to wit, temporary necessity arising from an
unexpected and pressing emergency; and It
follows, consequently. that such circulation
should only be tolerated until, without financial
shock, it can be Withdrawn made convertible into
specie. II an irredeenabe bank note circulation IS
an evidence OF bankrupt or badly managed banking
institutions, which should be deprived OF their fran
chses compelled TO husband and make available
their resources in order that they may be prepared
ct the earliest day practicable 70 take up their dis
nonored obligations, why should not an irredeem.
able government currency DO regarded as an evi-
.dence OF bad management OF the national finances
II not OF national bankruptcys And why should not
such wise and equal revenue laws be enacted and
such economy in the OF the public moneys be
enforced as will enable the government either judic
ously to fund or promptly to redeem its broken
promisesf The United States notes, although de-
cared by law to be lawful money, are, nevertheless
dshonorcd and disreputable currency. The fact
that they are legal tender, possessing such attri-
butes OF money as t he statute can give Them adds
nothing to their real value, but makes them all the
more dishonorabe TO the government ana subversive
of good morals. The people are compelled to take
as money what Is not money and becoming demora
iized by It's constantly changing value they are in
danger OF losing that sense OF honor in their deal
Ings with the government and with each other
which is necessary for the Well being OF society. 1t
"a vain to expect on the part OF the peop faithful
ful1lment Of their duties to the government as long
ns the government is fa!thless 81 its own obgations
nor win those who do not hesitate to defraud the
public revenues long continue to be scrupuous in
their private business. Justliabe and necessary az
the measure then regarded il is now apparen mt
shat an unfortunate step taken when Tired eem-
able promises were ssued "a lawful money; and
especially when they were made valid tender In
payment OF debts contracted when specie was the
legal as well as the commercial standard OF value.
The legal tender notes enabled debtors to pay their
debts in q currency largely inferior to that which
was alone recognized money at the time they
were incurred, and thus the validity OF contracts
was virtually impaired. II all creditors had been
compelled by law to pay iuto the public treasury
fifty per cent or ten per cent or indeed any portion
of the amounts received 10y them from their debtors
such law would have been condemned as unequal
and UNJUST and yet the effect OF It would have been
10 lessen. TO the extent Of toe receipts from this
source the necessity for other kinds oil taxation aud
thus to relieve in some measure the class unustly
because unequaly, taxed by the Legal Tender acts
virtually confiscated for The benet Of another with.
out increase thereby Of the public revenues, and,
consequently. without any compensation to the IN
1ured class There can be no doubt that these acts
have tended TO blunt and deaden the public con-
science, nor that they are chargeaDle In no small de-
prevails
The economical objections to these notes as lawful
moDey-stated ut length in previous reports OF the
Secretary-may be thus briefly Iestated They in
creased immensely the cost OF the war, and they
have added largely to the expenses Of the govern
ment since the restoration OF peace; they have
caused instability In prices, unsteadiness IN trade
and put check upon judicious enterprises: they
have driven specie from circulation and made Il
merchandise; they have sent 10 foreign countries the
product OF our mines, at the same time that.
creasing, and has reached such inagni
tude as 10 be . heavy drain upon the national re.
sources and q serious obstacle In the way OF
return to specie PAYMENTS; they have shaken the
public crenit b. raising dangerous questions in
gard 10 the payment OF the pubic debt: in con-
necti0n with high taxes ito the necessity for which
<'iey have largely cOntrbuted) they preventing
ship building and thereby the restoration Of the
commerce which was destroyed by the war: they
are an excuse for f indeed they do not necesstate
protective tariffs, and yet fail, by their fuctuating
value 70 protect the American manufacturer against
ns foreign competitor; they filing the coners Of
rhe rich, but, by reason OF the high prices which
they create and sustain. they are almost ntoerable
10 persons al limited incomes. The language OF one
not too often, quoted Is none too strong in it, de-
scriptons OF the injustice and the evils OF incon
vertble currcncy:-
OF all the for cheating tho aborins classes OF
mankind has been more eiectua than that which de-
sion, excessive ,asaoa-tS-ss bear sSy on the happiness
currency and ne roSserie BY paper
more than enough OF he demoraizng .endeacy The
and the ntocrable oppression the vlous and we'll
way countenanced by government
The experience OF all nations that have tried the
experiment OF inconyertble paper money has proved
the truth OF the eloquent words OF Mr.. Webster.
u our country - IN measure prosperous with such
an INCUBUS upon i II IS because It is so magnin-
cent in extent, so diversified Ia climate, 80 rich In
soil, 80 abundant in Minerals with people 50 full
OF energy that even debased currency can only
lard but not put stop TO its progress.
The Secretary still adheres 10 the opinion FIRE.
quently expressed by him that a reduction or the
10 the specie standard was the true solution OF our
financial problem. But as this policy was emphati-
caiIy condemned by Congress and IL u now too late
90 return 10 IL he recommends the following meas
ures rs the best calculated to erect the desired
result.
Agreements for the payment Of coin secrd 10 be
che only ones not contrary TO good morals the per-
Romance OF which cannot be enforced in the courts
'Coin cOntacts executed before the passage OF the
legal tender acts az well "a those executed since,
are satisfied in oil the states except California, by
the payment OF the amounts called for IN deprecated
notes. THIS shackle upon commerce, this check
upon our national Progress, this restriction upon In
dvidua rights should no longer be continued. II Il
be admitted that the condition OF the country during
tue and for time after its close, created
cessity Tor laws aud decisions making promss0ry
notes calculating Ia value according 10 the result VI
battles and OF speculative combnationsl the medium
IN which contracts should be discharged, TINS ne.
rlssliy no longer exists steps should now be taken
" give stability to business and security TO enter
grise and 90 this end specific contracts TO he exc.
ruted ia coin sAould 81 once be lega2ed. perhaps
40 law could be passed which would be productive
u better results with so little private public i'm
convenience. Sach law would simply enable the
ritzen DO wha. the government Is doing in 10 re-.