The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-07

old claims not previously ascertained, and therefore
not included in any debt statement The account OF
ci aasa only the me interest," se accrued and
then payable; but as a matter OF fact
there were outstanding and overdue interest
since been paid out OF the ordinary revenue. Pre-
vlous to March no interest account had ever been
kept with the several loans. Such measures were
the exact condition OF these amounts. The bonds
issued by the United states IN aid OF railways,
amounting to $780, being IN the nature OF Q
loan, not included In the foregoing statement.
THE SALES or GOLD AND PURCHASE OF BONDS.
During the fiscal year ending June 80, 1859, there
an excess OF receipts over expenditures tnclud-
lug the interest on the public debt, OF ASS 49, OF
this excess sl2,eo2,370 as nearly as can now be
ascertained, arose previous to March J. and the re-
nander, $50 AGO 779 between that time and the LIST
day OF J uy. This excess was applied from time to
time to The purchase OF five twenty bonds, and the
excess OF receipts since July has been used In tho
same manner. The purchases amounted In the az
gregate ON the 30th day of November to $75476 500.
coin, sales OF gold have been made 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 payment OF duties, the sale OF
gold and the purchases OF bonds have been made
uniformly through the agency Of the United States
Treasurer In New York, and without any expense TO
the government except the comparatively small
amount paid for advertising the proposals Tue
average premium on gold sold since March has
been thirty-two and eighttenths per cent, and the
average premium paid for bonds has been 169 S-l00
per cent Upon this basis Of the sales OF gold
paid for bonds in coin mas been eighty eight
aud nfty-fve one-hundredths per cent. The
act OF February 20, 1857 provided That the coin re-
ceived for duties upon imported goods should be
annually set apart as sinking fund TO the extent
OF one per cent OF the entire debt OF the United
States In conformity with this requirement have
purchased bonds TO the amount or 500 044. SOO and
designated them as belonging TO the sinking fund.
These purchases are substantial compliance with
felt myself authorized required to make any pro-
vision for the time that elapsed after the passage or
administration. With the excess OF means
at my command have purchased bonds
IN A., addition to those purchased IL for ~ the
are held as special fund, subject to the action Of
Congress- and respectfully recommend that the
purchases that may be made be so added until the
gross amount shall constitute q lund equal to that
which would have been created II there had been no
delay III the execution OF The law.
THE CAUSE OF DEPRECIATION OF THE CURRENCY.
The depreciation OF currency Is due TO two
causes:-First. an excessive issue, and secondly to
the want OF faith In the government and the
extent OF the influence OF the nrst named
cause cannot be ascertained until the
second Is removed substantially. Whenever our
credit shall be 80 much improved at home and
abroad that holders or our bonds are disposed to
retain them, even when the pubic mind Is excited
upon financial SUBJECTS we shall be able to judge
accurately the extent OF the overissue OF paper
money. Ii is also true that the quantity OF cur
rency necessary for the transaction OF tile BUSH
ness OF the country cannot now be fixed accu-
ratey. Since tine close o the war the wants OF the
States OF the South have increased. and conse-
quently u large amount OF currency has been With
drawn from other sections to supply the demand
there created. The amount necessary for the pur-
poses OF the South will steadily increase for the next
two years.
The construction Of the Pacific Railroad IL likely
to result III the substitution OF paper for coin by
the people on the Pacific coast. II Is probable that
the demand for paper for that purpose viii not be
less than $50, 900. AS consequence very large
quantity Of coin VIII be Withdrawn from circulation
a,a1 t,Yta Ito II
upon the Atlantic coast and the paper In circulation
In the States, east OF the Rocky Mountains, will be
materially reduced. These changes VIII tend to
diminish the difference between paper and coin.
THE QUESTION OF RESUMPTION OF SPECIE PAY
MEST5.
The ability OF the country to resume specie pay.
ments will not DO due to any special legislation upon
that subject. but to the condition OF It's industries
aud to It's financial relations to other countries.
These, OF course, VIII be more or less dependent
upon the general policy OF the governments. The
war exhausted the country OF its material wealth
and the states OF the south were literally impover
specie payments was the development OF the INDUS
try OF the nation both South and North and the
quent accumulation OF movable products OF Industry
10 such extent that exports OF those products
should be equal substantially 10 our imports. So
long as 1t is necessary TO pay FOR merchandise i'm
other evidences OF Indebtedness to other countries
so long 1t will be mpracticable to resume anu main
tain specie payments When the products OF indus
try exported shall be equal substantially TO the pro-
ducts OF other countries imported there viii be no
demand for specie for export except what may
arise from the circumstances 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
ether OF ability or disposition 10 meet all our
obngarlon bonds, heretofore and now 20 o large
extent held by merchants and bankers, will be
transferred to capitalists for permanent invest
ment--when this change shall have taken place the
the influence OF political financial disturbances in
England VIII be very slight and when, as concur
ring iact our exports, exclusive OF public securi-
ties, shall be equal to imports, specie payments
may be resumed without even temporary embar.
rassment TO the business OF the country.
TIE SHIPPING INTERESTS or THE COUNTRY.
One OF the most efficient means OF strengthening
the country in ITS financial relations with other
countries Is the development OF our commercial ma
rine The returns show that very large amount OF
the foreign trade is in En- ylish hands, We are not
only thus dependent upon rival country for the
performance or the business which should be In the
hands Of our own people, but our ability to maintain
specie payments IS materially diminished. Ii tine
entire foreign trade OF tue country, both OF exports
and imports were carried on in American Ships the
earnings would not be less than $75 ZOO, 900 year.
at present the 1regnts OF the foreign trade In
American ships do not exceed S2S, 100000. We're
the trade exclusively in American hands O large
part OF this difference Of &47,0o0,o00 would
be due to citizens OF tho United states. and
payable IN other countries This amount would be
from those countries. II, ion example, an American
citizen purchase III New York thousand barrels Of
nour for six thousand dollars, and export Lv-
erpoO III an American vessel and 10 Is there sold for
seven thousand dollars, Dill or exchange may be
drawn against the proceeds ana an Invoice OF goods
OF the OF seven Thousand dollars purchased Ia
England entirely liqudated, although al the Custom
House at New York there would be an apparent bal
ance against the country OF one Thousand dollars.
But II, on The other hand the thousand barrels OF
flour are exported In British vessel the proceeds
OF the lour realized IN New YORK and which can DO
applied to the payment OF goods bOughl IN England
VIII be only six thousand dollars, and there Will
remain an actual balance against the country Of a
thousand dollars. This familiar example shows
the importance OF re-estabishing our commercial
supremacy upon the ocean; and deem Il, there-
fore, essential TO our prosperity that the shipping
interest OF the country 30 iostered, not only as .
nursery for seanen, but also as an essential agency
IN enabling the government to institute and main.
tain specie payments 1t Is an interest also which
Ia It's development IL as important TO the States and
people remote from the seacoast 1t Is to the mari
time sections. Every addition TO our facilities for inc
export OF the products OF the interior IL adyan-
tageous 10 the producers as to tue merchants and
shipbuders oil the country.
While do not anticipate that II VIII be necessary
10 decay resumption until our proper commercial
position is feqaincd. am SATISFIED that the develop