The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1869-12-07
REPORr or THE SECRETARY OF
THE TREASURY.
WAsnlNoroN, pec. 0, lsOO.

The following Is the concluding par
ofthe Report Of Secretary Boutwell,
One OF the most efficient means o
strengthening the country In liz tinan-
clal relations with other countries II
the development OF our commercial
marine. The returns prove that {
very large amount Of the foreign tradl
Ia In English hands. We are moi
only thus dependant upon rlva
country for the performance OF the bu
siness which should be In the hands o
our own people. but our ability tC
maintain specie payments is mate.
Rally diminished. II the comemrce
OF country, both OF exports and
imports, were carried on In Ameri.
can ships, the earnings would
not be less than seventy.tiVs millions
OF dollars. Were the trade exclusively
In American hands the large part Of
this difference OF forty.ssven millions
Of dollars would be due to the citizens
OF the United States, and payable into
her Golfers. This amount would
be thus added 10 our ability to
pay for the goods imported from
those countries. II, for example,
an American citizen purchase In New
York, one thousand barrels Of flour for
5000 and export 1t 10 Liverpool In an
American vessel, and 1t Is there sold for
$1,000, a bill or exchange may be drawn
against the proceeds and an invoice ol
goods and the value Of 81, 900 purchased
In IEngland, entirely liquidated, al-
though at the Custom House at New
York, there would be u balance against
the country Of 81, 900; hut on The other
hand the thousand barrels OF flour are
exported In British vessel, the pro.
ceeds OF the flour realized In New
York, and which can be applied 10 the
payment OF the goods bought In Eug-
land, would be only 5000, and
there will remain In actual balance
against the country, q thousand dol.
lars. This familiar example shows the
importance OF restoring orr commer-
cial supremacy upon the ocean, aud
deem 1t that therefore Il Is essen
tial to our prosperity that the ship
ping interest of the country be
foslered not only rs nursery for
seamen, but also NJ AN essential agency
In enabling the government to institute
and maintain specle payments. It is
an interest also which, In Its develop.
ment, IL as important 10 the States aud
people remote from the sea coast, As It
TO the marStime sections. Every addI.
tlon to our facilities for the export OF
the products OF the interior ls as RdvAn-
tRgeous 10 the producer rs 10 the mer-
chant and ship builders of the coast.
While do not anticipate that II will be
necessary TO delay resumption until
our proper commercial position Ii re-
gained, am satisfied that the develop.
Inent Of the navigation and ship build
Ing interest will improve the credit and
rapidly augment the wealth OF the
country. The submissions that have
made Indicate my opinion that It will
not be wise to resume specie payments
while SO large q part OF the interest
bearing debt Of the country Is repre-.
sented by tive-twenty bonds, and held
by European merchants, bankers and
manufacturers. Questions that have
been raised In regard to the nature OF
the obligation assumed by the Governs
ment ln the issue Of these bonds have
undoubtedly deferred many persons
from purchasing them as permanent
Investment, and consequently they are
largely held In this country aud
Europe for speculative purposes by
persons who design 10 put them upon
the market whenever an advance shall
furnish a sufficient lnducement, or
when political or financial disturbances
may create u demand for money for
other purposes. 1t IL probable that
from seven to nine hundred millions Of
these bonds are now held In Europe and
to considerable extent by persons
who will dispose Of them under the in-
1uences to which have referred. Such
u panic as existed In Europe In 1856 ut
the opening of the Austrian and Prus.
sian war, would be likely 10 induce
the return Of o sufficient amount to
this country for sale to embarrass
business, and In case Of resumption 10
cause the suspension OF the banks.
It is, therefore, In my judgement,
essential that the largest part OF
the $40 bonds be Withdrawn and
that other bonds be substituted
In their place, Issued upon terms
and conditions which admit OF
no doubt. In fine, the practical ques.
ton Is not merely the resumption of
specie payments. AS measure by
Itself, II is not difficult, but the prob
lem IL TO resume under such olrcum-
stances that tho position eau be main.
tRlned not only In times Uf tranquility,
but also in perllous times. Our course,
II seems TO me, IL plain. Every meas
ure OF the Government bearing upon
the subject should tend 10 appreciate
the value oISOur paper currency. II 10
probable that some decrease In the VOL
ume OF paper will ultimately be neoes.
sAry, and therefore respect fully Bug.
gesI that the Secretary Of the Treasury
be clothed with authority 10 reduce The
circulation of United States notes In an
amount not exceeding two millions In
any one month. Thus will the country
be:brought gradually 1T may bs,Rnd yet
without disaster, into condition
when the resumption bf specie pays
ments will be easy if not una.
voidable. On tho l1t OF December,
1869. the principal OF the public debt
Of the United States not deductlng
bonds and cash OH hand amounted 10
81, ,6O5. $50, ,7808 80. Cithls amount the sum
Of 1856, liz, ,25S so was represented In
United States notes bearing interest,
The larger part OF this is needed In CIR
GulaklOuI bub Sue HLAOuuN Gdu De re-
duoed irom the ordinary revenue OF the
country, II Congress shall consider It
expedieut to make provision tor such
reduction. The fractional currency
In circulation was $SS,SSj, ,664 90, and
therei Is no occasion for any legislation
In reference TO this. Oithe public debt
there were outstanding also, certit Gates
ior gold deposited In the treasury to
the amount OF $50, ,S02, $40. These cerIiti-
Gates are Eedeemable on presentation.
These three Items amount In the
aggregate to 1881, 1861, ,7G3 la, and In
makluG provision for the public
debt they are not necessary to
be considered. OF the loan of jan
uary lst, 1861, the sum Of SO, 2l2, 600 Is
outstanding and payable on the lst OF
January, 1871. The loan OF 1868 OF
$50, ,OOO, ,0OO Is payable In 1873. The
bonds known Rs 10 40 bonds, amount.
Ing 10 $l9l .567. 300, are not payable un-
III 1874, The O per cent bonds, payable
In 1881, amount to SIS, on, 900. As the
bonds known as Sis and 10 .40s, amount
ing In the aggregate to $i7S. .2i4 900, are
not due and cannot be paid previous
10 1874 and 1881, 1t Is not necessary to
consider them In making provision for
a new loan. The $50 bonds, amount.
log In theaggregate to 81, ,602. .G7l, 100, are
either due or will soon become due;
and II Is to this class OF the public debt
alone that attention should be direct.
ed. or this amount the sum OF $685.