The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-12-11
The Repors of The seer tary OF She TreHs-

Appropriate Subject; Confidence fraSe
Meetings.
The Report of the SECRETARY of She TFehs-
uFy.
A careful abstract of the anhuai iepoi' y,
the Sc cretary of the Treasury, emDracihS al
its salient points and depriving 1t oil some
THING its wealth OF detail, will prove more
attractive TO the general reader than an una
hr;doed cony of that vouminous and very i'm
nortant document. Such an abstract we under
take to give. the summaries given in advance
of lis authorized publication by romancing
Washington correspondents having been to
the last degree vague, meagre and unrelia
ble.-
THE CURRENCY.
In his very first annual report the Secretary
began vigorous iwar upon cur deprecated
currency. He still adheres to his oft expressed
opinion that lthe issue of legal tenders was
costly mistake at the very outset, ana gives
the following reasons:
The economical objections to these notes as
lawful monev-stated at length in previous
reports of the Sscretary-nay DE- mus orleny
restatpd They increased Immensely the cost
of the war aud they have added largely to
the expenses of the Government since the
restoration of peace; they have caused nsta
biIty in prices, unsteadiness in trade, and put
q check upon iudicious enterprises; they have
driven specie from circulation aud made it
merchandise; they have sent TO foreign coun-
tries the product of our mines, at the same
timo hat our European debt has been seadi-
ly increasing, and has now reached such mag
nitude as to be heavy drain upon the M
tional resources and a serious obstacle in the
way of a return TO specie payments: they have
shaken the public credit by raising dangerous
QUO stions in regard TO the payment Of the
public debt; in connection with high taxes, Ito
the necessity for which they have largely con
tributed,) they are preventing shipbuild'ng,
and thereby the restoration Of the commerce
winch was destroyed by the war: they are an
excuse for protective tariffs, and yet
fail by their fluctuatinS value, to protect the
American manufacturer against his foreign
competitor; they are filling the Golfers of the
rich but by reason of the high prices which
they create and sustain, they are almost in
tolerable to persons of limited incomes.
For these reasons the Secretary has uniform
ly favored gradual withdrawal of legal ten
ders from circulation as a necessary prepare
ton fol return to specie payments. Having
however, been oyerruled by Congress on this
point, he now abandons with great reluctance
that part of his policy, and substitutes in lieu
thereof two recommendations, in his opinion
less likely to prove efficient, but nevertheless
well calculated to bring about the result SC
earnestly desired by the whole people-a re.
turn to specie payments. The first of these i:
statute legaizing SPECIFIC CONTRACTS TO BE
EXECUTED IN COIN On this point the Secre-
tary says:
Perhaps no law could be passed which
would be productive OF better results with SO
litCe private or public Inconvenience Such
q law would simply enable the citizen to do
what the Government is dol: z in its receipts
for Gust. ms and in the payment of its bonded
debt; It would merely authorize The enforce
mept of con racts voluntarily entered into, ac-
cording t. their letter. The effect of such a
law would be TO check the outflow of Snecie TO
other countries, creating necessity for
TN use OF 1t at home: tosepcOurag" enterprises
extending into the future, by removing all I'M
certainty in regard to the value of the curren-
cy with which they are TO be carried on.
Such law wonld remove formidable en-
barrassment in our foreign trade, would famil-
iarze our people again with specie as the
standard OF valne and show ,how groundless
is the apprehension so generally existing, that
withdrawal of deprecated notes or the ap-
probation of these notes TO par, would pro-
duce scarcity OF none :, by proving that
specie expelled from the country by an inferior
circulating medium, will return again when it
is made the basis of contracts, and is needed
in their performance. Business is now neees
sarily speculative because the basis is undreli-
able.
The second measure proposed by the secre-
tary with view to a return to specie pay
ments is that Congress fir a particular day for
resumption. He says:
The Secretary believes that they should and
he therefore recommends, in addition to the
enactment by which contracts for the payment
OF coin can be enforced, that it be declared,
that after the first d v of January, eighteen
hundred and seventy, United States notes
shall cease to be legal tender in payment of
all private debts subsequently contracted; and
that after the first day of January eighteen
hundred and seventv-oue, they shall cease to
be legal tender on any contract, or for any
purpose whatever, except Cover nment dues
for which they. are now receivable. The law
should also authorize the conversion of these
notes, at the pleasure of the holders, into
bonds, bearing such rate Of interest as may be
authorized by Congress on the debt into which
the present outstanding bonds may be fund.
ed. The period for which thew would continue
to be legal tender would be sufficient to en-.
able the people and the banks to prepare for
the contemplated change, and the privilege of
their conversion would save them from depre-
ciati)n.
Mr. McCulloch dwells at great length upon
the influence of an irredeemabe currency in
increasing our debt abroad by encouraging ex
travagance and the importation of foreie Il
Inquiries. The revenue from customs was S179.
0a}651 in 1856, SIG $40 in 1867 and Sl64,
464y599 in 1868. But The Secretary is not at al
pleased with these figures, though from til,
revenue standpoint they are extremely satis
factory Eight hundred and fifty millions o
our debt is held abroad and since 1919 clever
hundred millions of the previous metals have
gone out OF the country. These grave disadvan
tages he considers more than an offset for tn,
derfved Inv he r..
ports, and he closes this branch of the subiec
with an earnest plea for s)und currency tina
shall make our own people the owners of the
public debt by inducing a return of the bonds
from Europe and Shall at the same time check
the purchase of Injuries, which now constitute
twc-thirds of all our imrorts.
THE REVENUE
The recommendations of the Secretary with
respect to the revenue are very important
For the last three fiscal years the receipts from
internal revenue have been as follows:
For the year ending June go 1866, $3O9 226 si3 4.
For The year ending june 30, 1>67, 26e. Oz7927 4:
For the year ending June 30, 1860, l9l,0s7,5s9 a
1t thus appears that the internal revenue
receipts Tor the year ending June so, 1867. tell
below the receipts for the year ending June
80 1896. S43 1875, 275 SO, and that the receipts Tor
tue year ending June so. 1883, fell short OF the
receipts for 1867, $74, 939,94S OF. The receipts
for the first months of the present fiscal wear
were $4S, 1861 48 33. If the receipts for these
months are an index of those for the remain
ing eight, the receipts for the present fiscal
year will be Sl45 200 OLA.
The suggestions of the Secretary may be
concisely stated as follows:
First, there having been Il marked falling off
In internal revenue receipts on account of a
reduction OF taxation and inefficient collec-
tons, economy should be introduced in all
branches of the government in order to save
an increase either of taxation or The public
debt.
Second, the annual expenditure should be
absolutely limited to $500, 900, 900, a sum that
may readily be realized from such an adjust
ment OF internal and external taxes as shall
harmeDize them with each other Of this
$500! 1000 900, $50 600 900 should be devoted 10
paying off The principal of the national debt.
Fourth, the harmonizing OF the customs
with internal taxes may be brought about bv
diminishing the former and iacreasinq the
latter.
Fifth, for increasing the receipts from nter-
nal revenue sources three plans have been
suggested an increase of the tax on distilled
spirits; restoration OF the tax on manufac-
lures abolished last spring; an increased and
UNIFORM tax on sales. The first two plans the
secretary nnequvocally rejects, and the last
he earnestly recommends
THE TARIFF
MIR. McCulioch strongly recommends that