The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-07
Tho Rspo4 Of tho Secretary Of the TTes-

| sury.
Secretary Boutwell,, in his communication
to Congress, takes pride in the large reduction
of the national debt, the details Of which have
been already given to the public in the debt
portion Of the document Is the testimony 1t
bears to the fidelity with which General Grant
in assuming the administration Of the govern
ment has carried out his promises in the mat
ter Of the revenue and expenditures of the
nation. During the fiscal year ending
June 80, 1869, the excess of receipts
over expenditures was in round num-
bers fifty millions of dollars, three
fourths of which accumulated during the
first four months of his term of office. That is,
General Grant, in one-third Of the year, saved
three times as much as the previous admins
tration did in two-tbirds of the year. In other
words, the present administration of the gov
eminent is nine times as efficient as the pre-
vious administration. The receipts for the first
quarter Of tAs current fiscal year are already
over twenty-three millions In excess Of the
expenditures, and it is estimated that the
excess for the three remaining quarters will be
over seventy millions-maklng total saving
of ninety-three millions for the fiscal year
ending June 80, 1870. An estimate for
| 187O-71, based upon the continued operation
Of the present laws; promises an excess of one
hundred and two millions.
| In the matter Of a resumption Of specie
| payments Secretary Boutwell's position is wise
and conservative. He points out the condi-
! tions prerequisite to the restoration Of our
paper currency to a specie standard. In the
first place he remarks that the ability of the
country to resume will not be due to any spe-
cial legislation upon the subject, but to the
condition of it's industries and to it's financial
relations to other countries. We must so
develop these Industries that our exports shall
be substantially equal to our imports. In the
next place the diffusion Of the currency over
the South in the progress of Its recuperation
from the prostration of the war, and to the
Western States and to California, where paper
is likely to take the place Of gold, will tend to
diminish the difference between paper and
coin. He favors mild policy Of contraction,
but touches the subject with an evident desire
that it may not be done with any risk Of COM
mercial disaster. He confesses that the exact
wants of the nation as to the amount Of paper
currency are problem, the solution of which
he leaves to be determined when prior and more
| important issues have been settled. He only
favors contraction because he inclines to
| the belief that the volume Of the cur
rency, with restoration of specie pay
ments, is more than sufficient for
the business requirements of the country
He also deems it unwise to resume while SO
| large portion of the national debt is held
abroad by European merchants and bankers,
| whose investment in our national securities
has been speculative and temporary and not
permanent. Any sudden appreciation in the
value of government securities would only
induce their reshipment to secure the profits
Of the rise. On the other hand, steady pro-
gress to specie payments, while rendering the
foundation of the national credit more stable,
would tend to render these foreign invest
ments permanent and prevent the danger
of panic such as occurred in Europe in 1866,
when upon the outbreak of the Austro- Prus-
sian war there was general sending home
of the different national bonds. He desires
that when the country does resume there shall
be no backsliding into suspension In fine, in
the language Of his report, the practical ques-
ton is not merely the resumption of specie
payment as a measure by itself, but the pro-
blem is to resume under such circumstances
that the position can be maintained, not only
in times Of tranquility, but also in periods OF
excitement and peril. In discussing the
details which are to assist in paving the way
for resumption he dwells upon the necessity
for taking steps to revive and develop
our commercial marine, and ingeniously
proves the important part which the
extent Of our shipping interests play in modi-
flying the balance Of our foreign trade. The
voyage of every American vessel is bill Of
exchange in our favor.
In funding the national debt Secretary
Boutwell, thinks it will be necessary to
deal with the fve-twenties only, and with
$1,000, 100000 only of tue whole loan anoat of
this class. He recommends that the new bonds
be divided into three loans Of $500, 600, 900
each, the first redeemable in fifteen to
twenty years. the second in twenty to twenty
five years and the third in twenty-five to thirty
years; that the principal and interest be made
payable in coin expressly; that the five
twenties shall be received in exchange for
them; that the rate of interest shall not
exceed four and one-half per cent; that the
interest shall be payable in European cities
~.
finally that the new bonds shall be exempt
from all taxation. It is doubtful whether
the last condition Wii. meet Wild