The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1869-12-08
Rpport of Secretary Of the Treasury
c.crntary Boutwell,. in his sf,nu., re,o


IN Congress, treats first Of matters OF admin
;Straticn, and then Of measures of public
,,olicv and gives very clear and compre-
Scnsiye statement of the national finances.
The following are the more important state
nsnts:
sI&.$Sl,&%2 lot the first tive months of the
nres2ut 5scal year over the same period last
The Secretary is clearly Of the opinion that
me Government ought 70 rely upon public
Ulcers for the proper performance OF their
dn.!es without stimulating them BY any
rhutingent advantages. lie recommends an
Increase Of the salaries Of custom-house
nSicers and the abolition Of the system of
civ!rgto them R share Of fines, penalties. and
torfCitureS.
TaE DEPRECATED CURRENCY.
The depreciation Of the currency Is due
q two c8uSeS--f'rst, al excessive issue,
and secondly, 10 the want Of faith in the
6overnment; and the extent of the in.
Ippncc Of the hrSt-uamed cause cannot be
sstcriained until the second is removed SUBJ
stzatially. Whenever our credit shall be so
mach improved ut home and abroad that
holders Of orr bonds are disposed to retain
Them. even when the public mind is excited
mon financial subjects, we shall be able To
Ut-c more accurately the extent of the
crer-j>sue Of paper money. 1t is also true
tbs. .hc quantity OF currency necessary for
The transaction OF the business Of the coun-
,gv cannot now be fixed accurately. Since
the close of the war the wants of the States
Of the South have increased, and, conse-
QuCptiy, large amount Of currency has
Teen withdrawn from other sections to sup
piy the demand there created. The amount
necessary for the purposes OF the South will
stasGjly Increase tor the next two years.
The construction Of the Pacific railroad
is likely 10 result in the substitution of pa
per Tor coin by the people on the Pacific
coast. 1t is probable that the demand for
paper for that purpose will not be less than
thirty millions CT dollars. As q consequence,
avery large quantity of coin will be with
drawn from circulation, and thus practically
the coin Will be increased upon the Allan
&c coast, and the paper in circulation in the
states east OF the Rocky mountains will be
materially reduced. These changes will
tend 10 diminish the ditiel ence between pa
per and coin,
SPECIE RESUMPTION.
The ability Of the country TO resume spe-
cja payments will not be due to any special
legislation upon that subject. but TO the
condition Of its industries and TO its finan-
C.. relations TO other countries. These, Of
course, will be more or less dependent upon
l.b 2tuGIai sJDILI VI li!c 1UNeIuIuSul. Inc
war exhausted the country of its material
wealth, and the States Of the South were
lteraliT impoverished. 4 necessary condi-
ton Tor tie resumption of specie payments
was the development OF the industry of the
patton both South and North, and the con-
seQuent accumulation of the movable pro-
duets of industry 10 such IN extent that our
exports OF those products should be equal
Substantially to our imports. SO long as
lis necessary to pay Tor merchandise i'm
ported by the transfer of Government bonds
or ether evidences Of Indebtedness to other
countries, SO long it will be impracticable
- resume and maintain specie payments.
When the products Of industry exported
Shall he equal substantially 10 the products
O! other countries imported there Will be
40 demand tor specie 70! export. except
what may arise from the circumstance that
our bonds held abroad are sent home, sold
IN our markets, and the proceeds exported
il coin. When the credit OF the country
shall he fully established in Europe, and
there shall! be 10 doubt either Of our ability
or disposition TO meet all our obligations,
horls heretofore. and now to a large eN-
tent. held by merchants and bankers will
be transferred to capitalists for permanent
Investment. When this change shall have
taken place the probability Of our securities
being sent home under the influence Of po-
Utica! OF financial disturbances in Europe
viii be very slight; aud when, as concur
ring fact, our export, exclusive Of public
securities, shall be equal to our imports,
specie payments may lie resumed without
even temporary embarrassment to the bu
siDeSs Of the country.
II will not e wise to resume specie pay
ueuts while SO large 4 part of the interest
bearing debt Of the country is represented
" $40 bonds, and held by European mer-
chants, bankers, and manufacturers.
Cur course, it seems to me, is plain.
Ey4Ty measure OF tho Government bearing
%pon The subject should tend TO appreciate
tie value Of our paper currency. 1t is pro.
bahle that some decrease ID the volume OF
paper will ultimately be necessary, and /
therefore respectfully suggest that the Seere-
taTy Of the Treasury be clothed with au-
thority to reduce the circulation Of United
States notes in an amount not exceeding TWO
millions OF dollars III any one month. mus
will the country be brought, gradually II
may be, aud yet without disaster, into a
condition when the resumption OF specie
payments will be easy, if not unavoidable.
FUNDING THE FIvE-TwENTlEs.
Under these circumstances, it does not
seem To me TO be wise to authorize the fund
ing OF the whole amount Of the tive-twenty
bonds, which. as is now anticipated, viii be
outstanding on the Ist Of July next, but
that $3.50, coo, 900 at least should be suffered
u remain either for purchase or redemptIon
previous TO 1874. Should the sum Of $780,
600, coo be left for that purpose, the entire
uublic debt would be in q condition to be
easily redeemed. Between 1874 and 1881
vision also made Tor the redemption Of the
bonds which will become due in the year
1881. Il may be wise to reduce the proposed
loan to 81 ,0UC, 100000, which would then
leave for payment previous TO 1881 the sum
Of 500, 900, 900, or hardly more than &c.,
10000 i gear.
Assuming that the proposed loan will be
for an amount not exceeding u ,20O, oOO, 0OO,
l recommend that it be offered in three
classes. Of 800, OOO, 900 each. The first class
Of 500, COO, 900 to be payable in fifteen years,
and TO be paid in twenty years. The second
class Of $500, 0O0, 900 TO be payable in twenty
years, and to be paid in twenty-five years.
The third class Of 300 900, 900 to be payable
IN twenty-five years, and to be paid In
thirty wears.
The essential conditions Of the new loan
appear to me TO be these:
!. That the principal and interest snail De
made payable in coin.
.. That the bonds known as the 500 bonds
shall be received in exchange for the new
bonds.
9. That the principal be payable in this
country, and the interest payable either IN
The United States or in Europe, as the sub
scribers to the loan may desire.
4. That the rate of interest shall not ex-
coed ~ per cent. per annum. ;,
6. That the subscribers in Europe shall
receive their interest at London, Paris,
Berlin, or Frankfort, as they may elect:
6. That the bonds, both principal and 10
terest, shall be free from all taxes, deduc-
lions, or Attachments Of any sort, unless II