Evening star., 1869-12-06

4 ne act ti rtorCary =, isb2, provided that the
com received for duties upcn imported goods
Should be annually set apart As a sinking fund to
tle extent of o-.T-rcc7..1 Of the entire debt OF
the United States. In Conformity Will
bonds 10 the anorrt OF SD,di.S0, and
Ce-igrated them as belonging to the sinking
fUIC- These purchases are a substantial COM
Plia- ce with the statute from the ith OF
k.arch last. 7 have not felt myself authorized
or required 20 make any provision for the tiIne
ttat eilpSed after the fass1ge of tie act and
,-rvi0uS 20 the commencement of the presert
aCn niniStTs;'On- With the excess of means at
my command have purchased bonds in add
the amount Of SIS 80 00n. These are held as a
SpeCia' fund. subject to the action Of Congress,
sLd 1 respectfully recommend that they be
aided TO the SinkiD-, fund. and that any future
yurCLases that may bc made be 20 added until
the gross amount shall constitute a fund
equal To that which wculd have been created
n there had lecn no delay in the execution OF
the iaw.
The depreciation oC the currency is due 10
tVc cau>'---fT>j, an excessive issue ,and..ecouG
y. to tie want OF faith in the Government; and
tie extent of the influence Of the frst-nameh
cause cannot he aSct rtained until the sacOn,I j.
removed substantially Whenever our credit
shall I've 80 much improved at home and abroad
that holders Cf our bonds are disposed 10 r,tain
mem, even when the Iu'lic mind l. excited
nron financial subjects. shall he able To-
judge more accurately The extent of the over
l-sue OF paper money. Ii = alsO true that the
quantity Of currency necessary for the transar-
non ofvthc business OF the country cannot
70" be fixed accurately. Stree the
close of the war the wants of
the States of the South have increased, and.
con>efrently, large amount of currency has
been Withdrawn from other sections to supply
the demand there created. The amount neces-
sary Tor tl,e purposes Of the South will steadily
Increase for the next tSo wears. The con,truc-
ton Of the Pacific railroad i likely to result in
tie substitution Of paper for coin by the people
on the racine coast. " is probable that the de-
.nand lor paper for that purpose will not he less
than thirty millions Of dollars As a conse-
auence, very large quantity of coin will be
HlthdraWn from circulation. and thus practi-
eally the coin will be increased upon the Allan
nc coast AMI the paper in circulation in the
States cast of the Rocky Nouns aims viii be ma
terially reduced These changes will tend To
Cihinhsh the dlHerence between paper and coin.
The ability of the country 10 resume specie
-. ments v III rot be due To- any special leg-la-
t"n upon that subject bur to the condition of
a. industries, and to It's financial relations to
other countries These. of course. will be more
ar le>s dependent upon the general policy of the
Government. The war exhausted the country
o. IT'S material wealth. and the States of the
South were literally impoverished. y necessary
condition for the resumption Of specie payments
Wa the development Of the industry of the ma
tiOn. both South ami North. and the cOnse-
qucnt accumulation Of the movable products of
1 industry to Such an extent that our exports of
I hose products should be equal substantially to
our imports 80 long a. IL i necessary to pay
Tor merchandise imported BY the transfer of
Government bends or other evidences of indeSt-
etiEC>> tO other countries, long il will be i'm
practicable to resume and maintain specie pay
nlent>. When the products Oi industry exported
shall be equal substantially To the products of
other countries imported, there will be no de-
mahd for specie Tor export, except what may
arise from the circumstance that our
tcnts held abroad are sent home. sold in
our markets, and the proceeds exported in coin.
Ehfn the credit OF the country shall be fully
eStai h~hed IN Europe, AMI there shall be no
dOrbt either OF our ability or disposition to meet
a! our Obligations. bonds here tofore. and now
t. large oStent held by N n'rehsnts and bankers.
will be transferred 70 capitalists for permanent
Investment. When this change shall have taken
place, the probability of oar securities being
sent home Under TIE influence OF political or
Enane,al disturbances in Europe VIII be very
sught, and when, a ccncurling tact. our
exports. exclusive or public securities shall be
cgu4i 70 our imports, specie payments NAV lie
resumed iIEcut even n temporary e.ul,arIa>,-
nent to the business of the country.
One OF the ni"~t efficient means of strength
CHING the country in lit financial relations with
other countries II the development of our com
ilercial marine. b6TctUrBs show that a very
large aIfiount of the foreign trade Is in English
hands We are EOt Cnly thus dependent upon "a
Iiyai country for the performance Of the bust
Ee~> which shouid b. in the hands OF our own
I-Voiic. but our ability tO maintain specie pay-
Eien'> l. materially diminished. III the entire
foreign trade Ot the country. botE O; exports aud
imports. were carried cn M American ships.
tie caIhiH.> wOuld not be ,c>s than >eVsntv-tiNe
I'i.Ii"n "f dollars year. ~ present thF freight,
ci the -STeign trade ia American ship, ,io not
exceed twenty Eight million OF dollars. Were
The ua,is' exclusively in American hands. a
large part Of this tiiiftT-ne of f,.rty->,.yeu mil
Ioh ti NpaiIF~ NGltiU NH due CITIZENS
of the United States. and pay:lie in other
COUntTie-- This amount would be thus ADDED
tD our ability to pay for goods imported from
ta0~e countries Ii. fer example. an American
citizen puTchaS.: ia New York a Thousand
barrels OF flour fer SiN thousand dollars. and e..
Port it 10 Liverpool in au American vessel. ami
II i there sold for seven thousand dollars a bill
OF exchange nlay be 'iTawn against the proceeds,
and an invoice Of goods OF the value of seven
thousand dollars purchased in England entirely
lquldated, although at the custom house at
there would "A balance
against the country CT one thousand dollars.
GUt II, or the other hand. the thousand
barrels Of rUur are exported III a Brit
i>h vessel the proceeds of the Hour real
IZed IN New York. and which can he
applied 70 the payment Of goods bon ylt in
England. will De only six THOUSAND dollars. ami
theTc viii remain aE actual balance against the
cOGntTV ut thousand dollars. This familiar
example shows the importance Ot rG-vstablI~il-
ing OuT commercial supremacy upon the ocean.
Ana deefa u. therefore, essential To our pros
Itrlty that the shipping interest % the country
D. fOsteTed. h0t only a. nUr>"Ty for ssaIncH,
tUt alsJ a. az. essential agency in enai'lin. the
GOSeTEmenI TO institute and maintain specie
yay IaCHt>- IL j. am interest also. which, ia IL
CcVcioI ment. j. ~ important 10 tie STATE, and
people remote from the >eacOg>t as u i 10 the
J aritime sections. Every ad'iit"a 10 t.scil-
I.s> for the export of tc products yf she interior
J. as advsE'a sr"u> I" the producers To the
merchants and >hipJuiidcr> OF the coast.
Whi'r 90 not anticipate that Il will be neeos-
s9ry 20 delay resumption until our proper COM
ilrrcIai position n regaincd. am satisfied that
the development of the navigation and shi,
EdIi,:iHg interests viii im;,tOy.. the credit and
Rapidly augment the wealth of the country. The
Stgg StiOIi> tiat have m.,ie indicate nv OIifi-
lOn that il will not be wise tn resume specie paw
1AsEts whIc ~ large part ci the intereSt-5caT-
ing debt Oi The country j. rei.Tc>s nted 10y five
twenty bonds, and hcld by European iner-
chants. bankers, and manufacturers. Qucs-
tons that have been raised ia T, gard to ti,.
nature Of the Obligation a~~Umed d. thu.
Government IN the issue OF the>, bonds have
Undoubtt dly deferred n4aHy persons from pur-
cE2sidg them a a permanent Investment. and.
consequently. they are largely heit in this cOun-
try and in Europe Tor speculative PURPOSES by
persons v ho design 10 put them upon the mar
ket whenever the advance shall fUrn!s, n sufsi-
cieEt inducement, or when political on financial
disturbances NAV create q demand Tor money
Tor other purposes IL = proranic that from
seven to nine hundred millions on these
bonds are new held IN Europe. and To
considerable extent by persons whO v III dis
pose OF them under the influences 10 which 1
have referred. Such panic a. existed III Eu-
rope in lS,t, at the opening OF the Austrian and
frussian war. would Dc likely 10 induce The re-
turn Of a sufficient amount To this country Ion
sale TO embarraSs business. and. in case of re-
sumption. to cause the suspension Of Tie banks.
~ is therefore, in my judgement. essential that
The larger part Of the hvc-twenty bombs be With
drawn and that other bonds be substituted i'm
their place, issued upon terms aH! conditions
which admit Of no doubt la fine The practical
question Is not merely the Tc.umption of
specie pay ment>-.ls 4 measure hS Itself il