The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-12-11

nafions of public moneys in the form OF boun- |
ties or of additional subsidies to railroad COM
pauiss-with proper economy in the adminis-
tration of the general government, and with
judicious amendments of the revenue laws,
and proper enforcement thereof, the public
debt, without oppressive taxation, can be rap
idly diminished and easily extinguished with
in the period heretofore named by the Secre-
tary.
An interesting point in this part of the re-
pott is a refutation of the extravagant Cop
perhead estimate of the annual expenditures
of the government since the close of the war.
These estimates show an annual expenditure
OF $5OS GAG 66l, by dividing the total revenue
received during that period, and the increase
of the public debt since April, 1865, amount
ing to 81, S81 y55O537, by the number OF years
that have elapsed since that date. The rom
Guiding paragraph in refutation of this fallacy
| is as follows:
| 1t is thus shown that within period of three
wears aud seven months, the revenues of the
receipts from all sources of the revenue reach
ed the enormous sum of 81 662 499 O12 20, and
that $500 ,43l ,125 80 were paid oa debts which
were actually due at the close of the war, and
for bounties which, like the pay of the army,
were part of the expenses of the war. Adj
ding the amount thus paid toNhe debt as ex-
hibited by the books of the Treasury on tie
10
of the United States at that time was So 997,-
1856, 203 a, and that the actual reduction has
been $40, 256 $50 AZ; and but for the advances
10 the Pacific Roads, and the amount paid for
Alaska, would have been S519 $780, $50 AZ.
The report insists that $175 ,O0O,O 900 shall be
set aside annually for the payment of interest
and the reduction of the principal of the cebt
1t is when he speaks of the payment of the
debt that the difference between his moral
constitution and that of his superior in office
appears in the strongest light. He admonish-
es c ongress that il it had declared in 1865, as
the Secretary recommended, that the five
twenties would be paid in gold, the public debt
would have been less than it is now and that
the reduction of the rate of interest would
have been in rapid progress. We quote:
The Secretary begs leave to suggest, as he
has substantially done before, that alienation
of the public debt is TO be Obtaiped-not in a
decriai OF the national credit-not in threats
of national reputation, not in a further issue
of irredeemable notes, not in arguments adj
dressed to the fears of the bondhoders, but in
a clear and explicit declaration by Congress,
that the national faith, in letter and spirit,
shall be inviolably maintained, that the bonds
of the United States, intended to BIO negotiat-
ed abroad as well as at home, are to be paid
when the time OF payment arrives-in that
currency which is alone recognized as money
in the dealings of nation with nation. Let
Congress say this promptly, and there can be
but little doubt that the credit of the govern
ment will so advance that within the next two
| years the interest on the larger portion oi the
debt can be reduced TO a satisfactory rate -
| He therefore earnestly recommends til t it be
| declared without delay, by joint resolution.
| that The principal of ali bonds OF the United
| States is 10 be paid in coin.
The views of the Secretary on funding the
debt are as follows:
1t is also recommended that the Secretary
be autharized 10 issue $500,O00,O0O of bonds,
$50,O00 900 of VIII CHI shall mature annually; the
Fl st $50 100000 to be payable, principal and in
terest IN lawful money-the principal and in
tereSt of the in com; and also such furth,
amount of bonds as may be necessary % take
up the outstanding six per cents aud the non
interest bearing debt, payable in coin thirty
years after date, ana redeemable at any time
after ten years at the pleasure of the Govern
ment-the interest to be paid semi-aDoualy in
coin, aud in no case to exceed the rate of fly
pr cent; provided, that the Secretary NAV, IN
his dlscre ion, make the principal and interest
OF S5OO0ooOO0 OF these bonds payable at such
city or cities in Europe as he may deem best
The fact that according to the recommenda-
ton, S50,O00,O00 of the bonds to be ISIS ned are
TO become due each year for ten consecutive
year, at the expiration of which time all the
bonds Won be under the control of the Gov
erpment.) would insure an annual reduction
of S50,0000 900 of the public debt, and impart
credit to the other bonds which would insure
the negotiation of them ON favorable terms
MISCELLANEOUS.
The Secretary admits that the internal reve-
nue. service is in demoraized condition. and
he finds for it the same remedy that the whole
country has found with the exception of Con-
gress the passage OF the Civil Service bill.
As to the national banks the Secretary has
little more to say than is embraced in the re-
port of the Comptroller of the currency, an
abstract of which has already been laid before
our readers He regards the system as inf
nitely superior to the State banking system in
existence before the war, denounces the New
YorK banks for the laxity and recklessness
with which their business is conducted in at.
fording loans on call, and certifying checks not
drawn on actual deposits, and endorses the
Comptroller's recommendation that the re-
| ports of banks be furnished on Gays fixed by
| that official, and that central redee ming
| agency be established. He regrets that the
| suspension of specie payments renders it i'm.
possible to remove the limitation upon the ag-
| gregate amount Of notes that may be issued
| but suggests as remedy for the unequal dis
trbution of bank currency among the States
a reduction OF the circulation of the banks of
large capital only, or q limitation of the amount
of notes to be furnished to all the banks-say
to 20 per cent. of their respective capitals
Mr.. McCullock, as in 1866 and 1867, favors
the allowance of drawback on material used
in the construction Of vessels, or the granting
of subsidies as an offset to taxation. If neither
of these measures for the relief of the perish
ins shipping interest be thought jndicious, be
would rep al the laws that forbid the resistra-
ton of foreign vessels. He iavors the renewal
OF the reciprocity treaty with Canada as soon
as our revenue system is satisfactorily settled
and harmonizad, and Canadian policy has
been adopted looking to the enlargement oe
the Welland and st. Lawrence canals, so as to
permit the passage of vessels of thousand
tons; but until then he would not allow the
subject of reciprocity to pass from legislative
| control.