Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-12-07
REPORT OF THE SECRETARY OF
THE TREASURY.

TAnnexed is the report of Mr.. Bout.
well to Congress, which body assem-.
bled yesterday:
Mr. Boutwell, says:
One OF the most efficient means Ol
Strengthening the country in its financial
relations with other countries is the de-
velopment OF our commercial marine.
The returns show that = very large
amount Of the foreign trade is in English
hands. We are not only thus dependent
upon a rival country for the performance
of the business which should be in the
hands OF our own people, but our ability
20 maintain specie payments Is materi-
allydiminished. If the entire foreign trade
of the country both Of exports and im-
ports were carried on in American ships,
the earning would not be less than S75,-
900. .O0J Were the trade exclusively in
American hands, a large part Of this
difference Of 50, ,000,O 600 would be due to
citizens ofthc United States, and payable
in other countries. This amount would
be thus added to our ability 70 pay for
goods imported from those countries. If
for example, an American citizen puT-
chase in New York a thousand barrels Of
flour for 5000, and export IL to Liverpool
sn an American vessel. and IL is there sold
gor 5000. a bill of exchange NAV be drawn
against the proceeds. and an invoice Of
goods cf the value Of 5000, purchased in
England. entirely liquidated, although at
she Customh0use at New York there
sgould be an apparent balance against the
country of $1,000; but II, on the other hand,
the one thousand barrels of flour are ex-
ported in a British vessel, the proceeds Of
The -four realized in New York, and
which can be applied to the payment
for goods bought in England, viii
be onlv $1,000, and there will re-
Haaf 1.1f afa.s5# 80.
country Of Sl0J0. This familiar example
shows the importance Of re-establishing
our commercial supremacy on the ocean,
and I deem, therefore, essential to our
prosperity that the shipping interests Of
the country De fOstered. not only as
nursery Of seamen, but also as an essen
1ial agency in enabling the Government
90 institute and mainLsin specie pay
aeuts. IL is an interest also, which, IN
Sc development, is as Important to the
States and people remote from the
sea coast, rs IL Is 70 the maratime sections.
Every addition to our facilities tor the eH-
d0rt OF the products Of the interior is as
advantageous TO the producers as to the
merchants and ship-builders OF the East.
While ! do not anticipate that il VIII be
NJ -cessary TO delay resumption until our
uror,. n commercial position is regained, ]
an sat, SIZED that the development of the
,,g,-ie,sfio,r - and ship-building interest viii
ir,nT9ye the credit rapidly and augment
the wealth of tie country.
The suggestions hat have made indi-
cate my opinion, thai u Wiil not be wise
10 resume specie payme-u Whiie 50 large
a mart Of the interest-bearinS DEBT OF the
country is represented by ve-twenty
bonds and held by European melS Sha.hIs,
bankers and manufacturers. Questions
that have been raised in regard 70 the
nature Of the obligation assumed by
the Government in the issue OF
these bonds have undoubtedly De
TERED many persons from purchasing
them as a permanent Investment. and
consequently they are largely held in this
country and Europe for speculative pur-
poses hv persons who design to put them
upon the market whenever an advance
shall furnish a sufficient inducement OF
when political or financial disturbances
may create demand for money for other
purposes. II is probable that lroin seven
10 nine hundred millions of THESE bonds
are now held in Europe, and to a eonsld-
cradle extent by persons who VIII as
pose of them under the Influences 70
which have referred. Such panic as
existed in Europe in 1896, al the opening
81 the Austrian and Prussian war, would
be likely to induce the return OF fsuihelent
bonds TO this country for sale 10 embar-
rass business, and in case Of resumption
20 cause the HAH HIltllHlDll Ol INC DtiAtAas -
is therefore, in my Judgment, essential
that the largest part Of the dve-twenty
bonds be Withdrawn and other bonds be
substituted in their place, issued upon
the terms and conditions which admit Of
no doubt. In fine, the practical question
is not merely the resumption OF specie
payments. As q measure by itself II Is
not difficult, but the problem is TO resume
ander such circumstances that the posi-
zion can be maintained not only IN times
Of tranquility but also in peril. our
course il seems to me is plain. Every
measure of the Governmedt bearing upon
the subject should tend 10 appreciate the
value of our paper currency. IL is proba-
ble that some decrease in value OF paper
viii ultimately be necessary, and / there
fore respectfully suggest that the Secre-
fary Of the Treasury be clothed With au-
fhorjtv to reduce the circulation of United
states notes in amount not exceeding two
million of dollars in any month. Thus
viii the country be brought gradually,
81 NAV be. and yet without disaster, into
A condition when the resumption Of spe-
eie payments will be easy, il not invalua-
ble. -..-..r
cannot omit to call the attention of
Congress to the inadequacy OF the salaries
paid TO officers in the Treasury Depart