Litchfield enquirer., 1869-12-16

cial message during the sesspn of Con- 1 eress. At the March term, Congress, by joint resolution, authorized tie Executive
 to order elections in the Statas of Virginia,
 Mississippi and Texas, to sutmit to them
 constitutions which each of hem had pre- viously ill convention frames and submit the constitutions either entiH or in sepa-
 rate parts, to be voted on d he discretion of the Executive Under tis authority
 the election was called. In Virginia, the
 election took place on the 9h of July, 1869. The governor and iertenant gov ernor elected have been insalled. The
 legislature met and did all required by this
 resolution, and by all the reconstruction
 acts of Congress, and abstaiIed from all
 doubtful authority. I recommend that
 her senators and representative be admit
 ted to seats. and that the stat be fully re-
 stored to it's place in the faney of states
 Elections were called in Mbsissippi and
 Texas to commence on the 4thsof Novem- Der, 1869, and to last two days in Missis- sippi and four days in Texas The cleo
 tions have taken place. but the results are
 not known. It is to be hoped that the acts of the legislatures of these states, when
 they meet, will be such as to receive your approval, and thus close the work of re- construction. p s..t
 Among the evils growing out of the re-.
 bellion, and not yet reformed, is that of an irredeemable currency. It is an evil
 which hope will receive your most ear-
 nest attention. It is 8 duty and one of
 the highest duties of a government to se.
 cure to the citizens medium of exchange of fixed, unyarying value. The return l to specie basis, and no substitute for it can exist, should be commenced now and reached at the earliest moment consistent
 to fair regard of the debtor class. I'm
 mediate resumption, if practicable, would not be desirable. It would compel the
 debtor classes to pay beyond their con- contracts the premium on gold at the date of their purchase, and would bring bank
 ruptcy and ruin to thousands. Fluctua- tion, however small, in the proper values of gold, is detrimental to trade. It makes the man of business an involuntary gam
 bier, for in all sales where future payments are to be made, both parties speculate. Employ such legislation as will insure a gradual return to specie payment and put an immediate stop to fluctuations in the value of currency. The methods to secure the former of these results ara as numer- ous as are the speculators on political econ omy. To secure the latter there is but one way, and that is to authorize the treasury to redeem it's own paper at a fixed price whenever presented, and to withhold from circulation all currency SO redeemed, until sold again for gold. The vast lhsources of the nation, both developed anP undevel- oped. ought to make our credit the best on earth with less burden of taxlticn than the citizens have endured for six years past. The entire debt can be paid in ten years, but it is not desirable that the peo- pie should be taxed to pay it in that time. Year by year the ability to pay it increases in rapid ratio, but the burden of tha in- terest ought to be reduced as rapidly as can be done without the violation of con tract. The public debt is represented in great part by bonds having from five to twenty and from ten to forty years to run, bearing interest at the rate of six per cent and five per cent respectively. It is op- t1onal with the government to pay these bonds at any period after the expiration of the least time mentioned upon their face. The time has already expired when a great part of them may be taken up, and is rapidly approaching when all may be. It is believed that all which are now due may be replaced by bonds bearing rate of in terest not exceeding Az per cent, and as rapidly as the remainder become due, that they may be replaced in the same manner. To accomplish this, it may be necessary to authorize the interest to be paid at either of theithree or four money centers in Flu rope, or by an assistant treasurer of the United States, at the option of the holder of the bonds, and I suggest this subject for the consideration of Con- gress, and also simultaneously with this, the propriety of redeeming our currency, as before suggested, at it's market value, at the time the law goes into effect, inGeas- ing the rate at which currency will be bought and sold from day to day or week to week, at the same interest as the gov- ernment pays upon it's bonds. The sub- ject of tariff and internal taxation will ne- cessarily receive your attention.
 The revenues of the country are greater than the requirements, and may with safe- ty be reduced, but as the funding of a debt in Az per cent loan would reduce the annual current expenses largely, this funding justifying greater reduction of taxation thsn would be now expedieut, l suggest the postponement of this question until the next meeting of Congress. It may be advisable to modify taxes and ta- riffs in instances where unjust and burden. some discriminations are made by the pres. ent laws regulating this subject. recon mend the postponement of this for the present. l also suggest the renewal of the tax on incomes, but at reduced rate of three per cent, and this tax to expire in three years, with the funding of the na- tional debt as here suggested. l feel safe in saying that taxes and the 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. .t .-.--..3 s.., ..ae
 The report of the Secretary of the Treas
 ury shows the receipts of the government for the fiscal year ending June 30, 1869, to be $37O, ,943, 747, and the expenditures. in. cluding interest, bonds, etc., to be $321, 490, ,597. The estimates for the ensuing year are more favorable to the government, and will doubtless show 8 much larger de
 crease of the public debt The receipts in
 the Treasury beyond expenditures, have exceeded the amount necessary to place to the credit of the sinking fund, as provi ded by law. To lock up the surplus in the treasury and withhold it from circulation would lead to such . contraction of the currency as to cripple trade and seriously affect the prosperity of the country. Un. der these circumstances the Secretary o
 the Treasury and myself heartily concur
 red in the propriety of using all the sur.
 plus currency in the treasury in the pur. l. l. af--.