The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1869-12-16

Elections were called in Mississippi and
Texas. to commence November 3Oth-two
days in Mississippi and four in Texas. The
elections have taken place, but the result is
not known. 1t is hoped that the acts Of the
Legislatures of these States, when they
meet, will be such as to receive your approv-
al and thus close the work Of reconstruction.
THE RESUMPTION OF SPECIE PAYMENTS.
Among the evils growing out Of the re-
belliou, and not yet referred to, is that OF
an irredeemable currency. It is an evil
which I hope will receive your most earnest
attention. It is duty and one of the high
est duties Of Government, to secure to the,
citizen a medium of fixed an unvarying val
ue. This implies return to a specie basis,
and no substitute for it can de devised. 1t
should be commenced now, and reached at
the earliest practicable memcnt consistent
with fair regard to The interest Of the debt
or class. Immediate resumption, if practi-
cable would not be desirable. It would
compel the debtor class to pay beyond their
contracts the premium on gold at the date Of
their purchase, and would bring bankruptcy
and ruin to thousands. Fluctuations, how
ever. in the paper value of the measure Of all
values-gold, is detrimental to the interests
of trade. It makes the man of business an
involuntary gambler, for in all cases where fu-
ture payments is to be made, both the par
ties speculate as to what will be the value of
the currency paid and received. | earn
estly recommend to you, then, such legisla-
ton as will insure gradual return to specie
payments, and put an immediate stop to the
fluctuations in the value ofcurrency. The
methods to secure the former Of these results.
are as numerous as spectators on political
economy To secure the latter, | see but
one way; and that is to. authorize the Trea-
sury to redeem its own paper at fixed value
whenever presented, and withhold from cir
culation all currency SO redeemed until sold
again for gold The vast resources of the
nation, both developed and undeyeloped,
ought to make our credit the best on earth.
With less burden of taxation than the citi-
zen has endured for the six years past, the
entire public debt could be paid in ten years,
but it is not desirable that the people should
;oe made to nav It in that time. Year BY year
the ability to pay increases in rapid ratio, but
the burden Of interest ought to be reduced
as rapidly as can be without a violation of
contract. The public debt is represented in
great part by bonds having from one to
forty-fve years to run, bearing interest at
the rate Of five and six per cent. respective
ly. It is optional with the Government to
pay these bonds at any period of the least
time mentioned upon their face. TIE tilne
has already expired when great part may
be taken in, and rapidly approaching when
it may well be belived that all which arenow
due may be replaced by bonds bearing rate
Of interest not exceeding four and half per
cent, and as rapidly as the remainder become
due they may be replaced in the same way.
To accomplish this it may be necessary to
authorize the interest to be paid at either Of
the four money centres Of Europe, or by
any of the assistant treasurers of the United
States, at the option of the holders Of the
bonds. I suggest this subject for the consid-
Grafton of Congress, and also simultaneously
with this the proprety Of redeeming our cur
rency, as before suggested, at its market
value at the time the law goes into effect, in
creasing the rate at which currency will be
bought and sold, from day to day or week to
week, at the same rate Of interest as the
Government pays upon its bonds.
The subject of tariff and internal taxation
will necessarily receive your attention. The
revenues Of the country are greater than the
requirements, and may, with safety, be re-
duced but as the funding Of the debt in
four or four and o half per cent. loan would
reduce the annual current expenses largely,
thus, after funding justifying a greater re-
l..a4:o,, ,f 70 . ot;o,, thor would nnw ha ey-
pedient, suggest a postponement of this
question until the next meeting Of Congress.
II may be advisable to modify taxation
and tariff in instances where unjust or bur-
densome determinations are made by the
present laws but Of general revision Of
the laws regulating this subject [ recon-
mend the postponement for the present.
THE INCOME TAX.
also suggest a renewal of the tax on in
comes, but at reduced rate, and this tax
to expire in three years.
With the findings of the national debt, as
here suggested, feel safe in saying that
the taxes and revenue from imports may be
reduced safely from sixty to eighty millions
per annum at once, and may be still further
| reduced from year to year as the resources
| Of the country are developed.
FISCAL STATEMENT OF THE GOVERNMENT.
| The report Of the Secretary Of the Trea-
sury shows the receipts of the Government
for the fiscal year ending June Both, $27o,
| 943,747, and expenditures, including boun-
ties, &c., 1921, 400, 597. The estimates for
| the ensuing year are more favorable to the
| Government, and will no doubt show much
larger decrease of the public debt. The re-
ceipts in the Treasury beyond the expendi-
lures have exceeded the amount necessary to
be placed to the credit Of the sinking fund,
as provided by law. To lock up the surplus
in the Treasury and withhold it from circu-
! lation would lead to such a contraction of
currency as to cripple trade and seriously af-
feet the prosperity Of the country Under
| these. circumstances the Secretary Of the
Treasury and myself heartily concurred in
the propriety Of using all the surplus cur
rency in the Treasury in the purchase Of
| Government bonds, thus reducing the inter.
est-bearing indebtedness Of the country, and
Of submitting to Congress the question of the
disposition to be made of the bonds SO purch-
ased. The bonds now held by the Treasury
amount to s75 ZOO, 900, including those of