The national Republican. [volume] (Washington City [D.C.]) 1866-1870, 1869-12-07

~ NatlOus questions that arise In the admin
isttdtion Of the system that attention which
hessential 10 the service.
The duties Of experimenting the collection
ol the customs revenue are, so varied, delicate
exclusive attention OF the most competent
person whose services can be obtained, The
tration OF the interval revenue system, and
The collection Of the excise tax, j1stifes the
opinion that the establishment Of the once OF
commissioner OF customs revenue, correspond.
Ing 10 powers and position to that of the Office
OF Oommissioner OF Internal Revenue, and the
appointment Of a competent commissioner,
would render the execution OF the customs
revenue laws much more efficient and har.
monious, while the revenue would probably be
dollars sanSsily. Nor Is Il probable That The
expenses would be materially greater.
Including interest earned and not paid, and
States, on the frat OF March last, was "a, S2S,.
tG],2o0.0i, and subject to the same conditions,
II was s2,iS3, jj9,T2S21 on the frat Of the pres.
S ~ %O'''' showing decrease OF "'''0''
This apparent DECREASE Of tie public debt Is
less than the actual decrease. Considerable
sums have been paid on account Of war and
other old claims not previously ascertsincd,
and therefore not included In any debt state
mcnt.
The account Of March LIST, from the necessity
Of the case, included only the interest accrued
and not then payable but, as a matter Of fact,
there were outstanding and overdue Interest
coupons, and of these several millions have
since been paid out Of the ordinary revenue:
Previous to March lst no interest aecou had
ever been kept with the several loans. Such
measures rs were found practicable have since
been taken 10 ascertain the exact condition Of
these accounts.
The bonds Issued by the United States Ia aid
OF railways, amounting to t02, O25 $40, being In
the nature OF a loan, are not included 10 the
foregoing statement
During the fiscal year ending June 30, 1869,
there was an excess OF receipts over oxpendi.
lures, including interest on the public debt, OF
slg,t53,ls91O. OF this excess, sl2 20 !,3I0.OJ, as
nearly as can now be ascertsined, arose pre-
vious to March l, and the rom ainder. 81, 49,.
1903, between that time and the frat day Of
July. This excess was applied from time to
time to the purchase OF Hye.twenty bonds, and
the excess OF receipts since July has been
amounted ia The aggregate, on the sSth day Of
November, TO 5a1J,soJ. A. large psr OF
the exces. OF receipts was realized In coin,
sales Of gold have bsen nsde from time TO time,
and the proceeds applied to the purchase OF
bonds. with the exception Of the sale OF
moderate amounts Of coin In Chicago, New
Orleans, st. Louis and Baltimore, for the pay
ment OF duties, the sales OF gold and tho pur-
chase Of bonds have been made uniformly
ufsP New SSFE and Without sny
to the Government, except the comparatively
small amount paid for advertising the pro.
since March has been % $40 per eent, and
and the average premium paid for bonds has
been 10 eS-loo per cent Upon the b,'i, Of the
average price paid for bonds. In coin, has been
ID,
tho coin received for duties upon Imported
goods should be annuSfoy set apart as 4 SINK.
Ing fund to the extent 81 ons per centun OF
the ontire debt Of the United ststes Ia con.
formity with thls requirement, l have put.
chased bonds to tho amount Of 80, Oh, 800, and
Designated them AS belonging TO the sinking
fund. These purch ises are substantial com.
plianco with the statute from the ith OF March
last. / have not felt myself authorized or re-
quired to make any provision for the time
that elNpsol after the passage OF the act and
previous to the commencement OF the present
Naturalization. with the excess OF means at
my command have purchased bonds In addi.
tion to those purchased for the sinking fund
to the amount OF SIS, 49,. 900. These are held
Especial fund, subject to the action OF Con.
be added to the sinking fund, and that any
future purchases that may be made he so
added, until the gross amount shall constitute
q fund equal TO that watch would have been
created II there had been no delay 10 the exc
cutiOn OF tho law.
The depreciation OF the currency /. due to
two cAusos-hrst, an excessive issue, and,
sec Jndly, to the want Of filth In the Govern.
meat; and the extent OF the influence Of the
nTst.namcd cause ciunDt be ascertained until
the seeoni 10 removed substantially. Whenever
our credit shall be 50 much Improved at home
and abroad that holders OF our bonds are
disposed to retal them, even when the public
mind Is excited upon hnanclsi subjects, we
shall be able to judge more accurately the
extent OF the ovefissue of money. 1t Is also
true that the quantity OF currency necessary
for tho transaction OF the business OF the
country cannot now be lxcd accurately. Since
the close OF the war the wants OF the states
OF the South have Increased, and consequently
large amount of currency has been with
drawn from other sections to supply the
demand there created The amount necessary
for tho purposes of the South will steadily
increase for the next two years. The con.
struction of the Pacific railroad Is likely to
result IN the substitution OF paper Tor coin by
the people on the Pacific coast. 1t Is probable
that the demand for paper for that purpose
will not he lcBs than thirty millions oil dollara
As a consequence, very large qutntlty OF
coin will be withdraw from circulation, and
thus practically the coin vii be increased
upon the Alrntic coast, and the paper In
circulation in the States east Of the Rocky
mountains viii be materially reduced. These
changes will tend to diminish the diheFepce
between paper and coin.
The ability Of the country to resume specie
payments will not be due to any special legis-
Iation upon that subiec', but to the condition
of its Industries, aud to Its financial relations
with other countries. These, OF course, will
be more or less dependent upon the gen.
eral policy Of the Government. Tho war ex-
hAusted the country Of Its material wealth,
and the States Of the South were literally
impoverished. A necessary condition for the
resumption OF specie payments was the dc.
velnrm""' ~ tk2 .::a.-sry Of the nation, both
South aud North, and the consequent accumu.
such an extent that our exports OF those
products should be equal substantially to our
Imports. So long Asit Is necessary to pay for
merchandise imported, by the transfer OF Gov
eminent bonds or other evidences OF Indebted.
ness to other countTlcs, 80 long II viii be I'M
practicable to resune aud maintain specie
payments. When the products OF industry
exported shall be equal substantially to the
products Of other cOuutrie, Imported there
will be no dC N aud for specie for export, except
what may arise from the circumstance that
our bonds held abroad are sent home, sold In
our markets, and the proceeds exported In
coin. When the credit OF the country shall be
fully established In Europe, and there shall be
no doubt either OF our ability or disposition to
meet all our obligations, bonds heretofore,
aud bankers, will be transferred to cspit alists
for permanent Investment. When ms change
securities being Sc mt home under the influence
OF political or financial disturbances In Europe
will be very slight aud when, asa concurring
fact, our exports, exclusive OF public securi-
ties, shall be cqutl to our imports, specie pay
ments may be resumed without even tempo
rary embtrr tssmcnt to the business OF the
country.
One OF the most efficient meanS Of strength
ening the country In its financial relations
with other countries Is the development ofour
commercial marine. The returns show that n
very large amount OF the foreign trade Is in
English hands. We are not only thus depend
ent upon y rival country for the performance
OF the business when should be In the hands
of our own people, but our ability to maintain
specie payments 10 materially dimini shed. II
the entire foreign trade OF the country, both
OF exports and Imports, were carried on In
American ships, the earnings would not be
less than scven'y-nvc million dol lars year.
At present the iTuights OF the foreign trade In
American ships do not exceed twentyeight
millions OF dollars. Were tho trade exclu-
siyely in American hands, alarge part OF
dollars would be due to the citizens OF the
United States, and payable 10 other countries,
This amount would be thus added to our ability
topsy for goods imported from those countries.
II, for example, an American citizen purchase
In New York \ thousand barrels OF hour for
six thousand dollars, and exportto Liverpool
In an American vessel, and It Is there sold for
seven thousand dollars, Abill ofexchange may
be drawn gainst the proceeds, and an Invoice OF
goods OF the value OF seven thousand dollars
purchased In England entirely llquldsted,
although At the custom house At New York
ha Mt hall U.in nat
the country OF Que thousand dollars. But II,
on the other hand, the thousand barrels OF
Hour are exported In British vessel, the pro.
ceeds OF the -four realized In New York, and
which can be applied to the payment Of goods
bought In England, will be only six Thousand
dollars, aud there will renal an actual bal
Ance against the country OF thousand dol
lars. This familiar example shows the i'm
portance Of re.estshishing our commercial
supremacy upon the ocean, AMI deem II,
therefore, essential to our prosperity that the
shipping Interest Of the country be iostered,
not only as nuraery for seamen, but also hs
an essential agency In enabling the Govern
ment to institute and maintain specie pay
a. IL l.a UalI h In 4