Democratic enquirer. [volume] (M'arthur, Vinton County, Ohio) 1867-1873, 1868-12-31
yostrp.
TIVE NATIONAL FINANCES.
Abridgement Of the Report of the Sec
retary Of the Treasury.
Treasury DEPARrNEST, |
Dec. ], 1858.

In compliance with the requirements of
law, the Secretary.of the Treasury has the
honor to make to Congress the following
report.
VIE CURRENCY.
If there is any question in finance or
political economy which can be prononnc-
ed settled by argument and trial, it is, that
inconvertibie and deprecated paper
money is injurious to public and private
interests, positive political and financial
evil, for which there can be but one justih-
cation or excuse, to-wit, q temporary neces-
sity arising from an unexpected and press
ing emergency; and 1t follows consequently,
that such o circulation should only be tole-
rated until, without q financial shock, 1t
can be withdrawn or made convertible,
into specie. If an irredeemable bank no
circulation is an evidence Of bankrupt %
badly managed banking institutions, which
should be deprived Of their franchises, or
compelled to husband and make available
their resources in order that they may be
prepared at the earliest day practicable to
take up their dishonored obligations, why
should not an irrredeemable government
currency be regarded as an evidence OF bad
management of the national finances, II
not Of national bankruptcy
tits vain to expect on the part OF the
people a faithful fulillment of duties
to the government as long as the govern
ment is faithless to its own obligations;
nor will those who do not hesitate to de-
fraud the public revenues long continue
to be scrupulous in their private business.
Justifable and necessary as the measure
was then regarded, it is now apparent that
an unfortunate step was taken when ire
.deemable promises were issued as 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 currency largely in
ierior to that which was alone recognized
rs money at the time they were incurred,
and thus the validity of contracts was vir-
tually impaired If all creditors had been
compelled by law to pay into the public
treasury 90 per cent. or TO-, or, indeed,
any portion of the amounts received by
them from their debtors, such law would
have been condemned as unequal and un-
Just; and yet the effect of it would have
been to lessen, to the extent OF the receipts
from this source, the necessity for other
kinds of taxation, and thus to relieve in
some measure the class uniustly, because
unequally, taxed. By the Legal-Tender
acts portion of the property of one class
of citizens was virtually confscated for the
benefit of another, without an increase
thereby of the public revenues, and, con-
rpffhnv1k nm f0
the injured class. There can be no doubt
that these acts have tended to blunt and
deaden the public conscience, nor that
they are chargeable, in no small degree,
with the decentralization which so generally
prevails
GOLD CONTRACTS.
Agreements for the payment of coin seem
to be the only ones, not contrary to good
morals, the performance of which cannot
be enforced in the courts. sS'Coin con-
tracts" executed before the passage of the
Legal-Tender acts, as well as those execut-
ed since, aresatisfied in all the States ex-
eept 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 individual rights, should no longer
be continued. If it be admitted that the
condition Of the conntry during the war,
and for time after its close, created ne
cessity for laws and decisions making prom
i5sory notes (Huetuating in value according
to the result of battles and of speculative
combinations) the medium in which con-
tracts should be discharged, this necessity !
no longer exists. Steps should now be
taken to give stability to business and Be-
curity to enterprise; and to this end, sPE-
CIFTo CONTRACTS TO BE EXECUTED IN COM
should at once be legalized.
The receipts from customs for the last
three years have been as follows:
For the fiscal year ending June
80, 1866. ........,......,....S S179, ,046, ,651 SO
For the fiscal year ending June
5U, .............,.,..... l76, ,4l7, ,6lO.6o
For the fiscal year ending June
30, 1858 8.................... 164, ,464, ,599.56
While il appears from-these figures that
the customs receipts since the commence
ment of the fiscal year 1865 have been, in
revenue point of view, entirely satisfac-
tory, the question naturally arises, what
do these large receipts, under high tariff,
indicate in regard to our foreign trade and
10 our financial relations with foreign ma
ions
BONDS HELD IN EUROPE.
1t is impossible to ascertain with precis-
ion the amount of orr securities held in
Europe, nor is there any perfectly reliable
1ata for ascertaining, even, what amount
has gone there annually since the first
bonds were issued for the prosecution of
he late war In his report of 1866, the
Secretary estimated the amount of United
States securities of different kinds, in
,luding railroad and other stock,
held in Europe, at 100000, 900,
de soon after became satisfied that
his estimate was too low, by from
,ne hundred to one hundred and fifty mil
ions. II would be safe to put the amount
70 held at the present time, exclusive of
stocks, at eight hundred and fifty millions
If dollars, of which not less than six hun
lred millions are United States bonds,
learly all Of which have left the United
States within the last six years. The
AMOUNT is formidable; and little satisfac-
ion is derived from the consideration that
.hese securities have been transferred in
payment of interest and for foreign COM
and just as little from the con-
Iideration that probably not over five hund-
ed millions of dollars in gold val
les have been received for these
light hundred and fifty millions of debt. In
his estimate of our foreign Indebtedness,
ailroad and other stocks are not included
IS they are not debt but the evidence
merely Of the ownership of property in the
United States. Fortunately, for some years
past, individual credits have been curtail-
ID, and our foreign and domestic Gtrade.
in this particular, has not been unsatis-
factory. In addition, then, to the stocks
to, and the individual indebted
ness, ofwhich no acurate estimate can be
made, Europe holds not less than eight
hundred and fifty millions of American Sc
curities, on nearly all Of which interest, and
on the greater part ofwhich, interest in gold
g being paid. Nor, under the present
'evenue systems, and with depreciated
paper currency, is the increase Of our for
sign debt likely to be stayed. With an
abundant harvest and q large surplus of