Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1868-02-07
THE FINANCIAL ECoEGEF OF TEE
EEGEEB STATES.


No. 8.
Having stated the truth Of Financial
Economy and discussed the origin and
causes of the Financial and Economical
troubles Of the country, Mr.. GALLATIS
thus continues:
TIE MEASURES HERETOFORE PROPOSED
FOR RECONSTRUCTENG Z ECONOMI-
CAL AFFAIRS.
Numerous measures, or plEns, TO re-
store our economical affairs to q healthy
condition have recently been promul-
gated.
The following brief recapitulation al
these plans embraces the most important
of those which have come 10 my notice.
J.. You have Ia your message sounded
the keynote Of al measures Tor restor-
ing 10 the nation a system Of sound
financial economy, in these words /.
The restoration Of the currency 10 the
standard established by the C5nstitu-
ton" To this suggestion you have
added the f0ur following:
.. a revision Of the revenue system,
suppression OF frauds, and the policy Of
looking more to the taxation of luxl.
ries.
g.. Retrenchment and reform.
4. Economy.
s. Restoration OF the United States
upon the principles Of the Constitution.
The Secretary OF the Treasury pro-.
poses measures Of q kindred nature, i'm
mediately connected with his depart
meut, viz
@ The funding or payment Of the in
terest-beariug notes. and a continual
contraction of the psper currency.
:. The maintenance OF the public faith
IN regard 70 the public debt.
s. The restoration Of the S1lthern
States TO their relations to the Federal
Government.
9. The creation Of a consolidated stock,
or issue Of an omnibus loan, for two lh0u-
sand millions, at six per cent, one-sixth
Of the interest to be kept back and paid
half yearly 10 the States, according 70
population, as a compromise OF the new
question Of State taxstion-this new
stock 10 be issued to redeem the five
twsnties, etr., a. these latter mature.
The Comptroller Of the Currency urges
with great force this most important
measure g. regards the circulating notes
Of the banks, viz:
10. To have al national bank notes
redeemed al q common center.
II. Hon. r J. Walker proposes lin an
excellent paper, full Of research and i'm
p5rtant suggestiOIs) a Two hundred and
fifIy million loan 10 Eur0pe, with which
% procure gold enough 10 resume specie
payments,
j.. Hon. John d. Van Buren,, Of this
State, proposes to pay seven and three
tenths per cent interest in paper on the /
f~ve-twenty bonds, instead Of six per cent. |
in coin, REd accumulate gold in the
Treasury 10 resume specie payments
with.
-. Senator MOrrilPs bill o 10
national banks 10 accumulate
the gold interest received on the five.
twenties, but provides Tor the sale Of any
gold ia the Treasury exceeding seventy
five millions.
"A A pamphlet, entitled 4" The National
and Their Circulation" has been
circulated anonymously, urging the
withdrawal Of the hank notes and the
Of more legal teader irredeemsbie
paper, "to buy up and cancel three hun
bred millions Of the debt"
Is. Another plan has been published,
proposing the sale Of Government de
msnd notes redeemable in coin, and re-
,sivable as coin, 81 the highest premium
,btainable.
%. A plan similar 10 the fourteenth
hove named, proposes to contract the
NA4A GAaN AAAAe@H Habs Naa| 1AaAA ANAEa Z
Ire all withdrawn, until gold becomes
oar in the legal tender paper.
u. "a Board OF Currency, has been
uggested, to be composed Of the SecTe-
airy Of the Treasury and experts ia GBRu-
.ial affairs, to regulate the currency and
debt.
REVIEW OF II FOREGOING MEASURES
REASONS o APPROVING sOAIE AND
REJECTING OTHERS.
Your own suggestiOns-the first FIVE
re indispensable to the Ie~storatiOn of
Dur whole economical system to 8 nor
condition and the next thrse-Nos.
, Z and S-proposed by the Secretary. u,
nearly or wholly identical in spirit .
With the first i've, are important Rut
he ninth, which has been ranro- {
in part In Senate hin No f,
07, proposes 10 distribute smo1g ,
be States a part OF the Interest,"
/. be collected from the Deonjs ~ {
lxss. The principle Of exemutin0 ~ 3
ational debt from State taxation has
REVEALED throughout u whole history
nd for obvious reasons. Once admit
rat taxes may be collected by the State
non the national debt, or that subsidies 1
iaI be collected from the people and :
aid 10 the States, nader q shadow Of !
CHIT 1 u these States TO tax the national !
ct, and there viii be no end to pro !
,eted national debts, and projects Of .
ans 70 create national debts the adj =
lission will grow into a right, and one
lOre element Of evil will be placed in
Pand0rA's Box which political de-
Iagoguism opens and closes at will :
taIe taxation OF the national debt inn Z
les State Sovereignty, qualification, Sc Z
Senate bill No. 207 also PROPOSES o
maintain the Issues Of legal tender y
,uer at q maximum of four hundred '
iiIIons, Of which fifty millions NAV be Il
spt 10 the Treasury 70 buy in bonds for @
equal amount, and the bonds may be
ID 10 replace the fifty millions, as the
Bile may desire. This would, I pre- oil
me. in practice, keep the bonds about o.
mar in the legal tender paper, and o,
,intain the imitation of the paper to
opey at q rate corresponding very 70
anv with what It is noW, preventing IT
approach 70 specie payments. AS al
As einking fund system proposed in v