The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-12-06
FIFTH ION
THE TREASURY.
The Annual Report of the Secre-
tary Of the Treasury-The
Financial Situation of
the Country.

cludng and most essential portion OF the Secretary
One OF the most efficient means OF strengthening
the country in its financial relations with other coun
tries is the development 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 q rival
country for the performance OF the business which
should be In the hands OF our own people, but our
ability TO maintain specie payments Is materially
country, both OF exports and imports were carried
on In American ships, the earnings would not be
less than seventy i've millions Of dollars year. At
present the freghts OF the foreign trade in American
ships do not xoeed.twentyeight millions ofadollsrs
Were the trade exclusively in American hands
large part of this difference OF fory-seven millions Of
dollars would be due to citizens OF the United States
and payable in other countries This amount would
ported from those countries. If, for example, an
American citizen purchase in New York thousand
barrels OF flour for six thousand dollars, and export
and it Is there sold for seven thousand
the proceeds, and an invoice OF goods Of the
value OF seven thousand dollars, purchased in Eng
land, entirely liquidated, although at the Custom
balance against the country OF one thousand dollars.
But IT, on the other hand the: thousand barrels o.
1our are exported in British vessel, the proeec
of the -four realized in New York. and which can b.
applied to the payment OF goods bought in Engl nd
will be only six thousand dollars and there will re
main an actual balance against the country q
thousand dollars.
re-establshng our commercial supremacy upon the
ocean. And deem 1t therefore essential to our
pTObpeT1ty JnhJ bHe shipping VI Luo
be fostered not only as a nursery for seamen, but
also as an essential agency In enabling the Govern
ment TO institute and maintain specie payments. 1t
portant to the States and people remote from the
sea coast as 1t Is to the maritime sections. Every
addition to our facilities for the export OF the pro-
ducts Of the interior is as advantageous to the pro-
ducers as to the merchants and shpbuilders OF the
coast.
While do not anticipate that it will be necessary
to delay resumption until our proper commercial
position is reganed am satisfied that the develop
ln-DI
will improve the credit aad rapidly augment the
wealth OF the country. The suggestions that have
made indicate my opinion that 10 will not be wise TO
resume specie payments while so large part OF the
interest Wearing debt OF the country is represented
by Five-twenty bonds and held by European mer-
chants bankers, and manufacturers. Questions
that have beeu in regard TO the nature OF the
Issue Of these bonds have undoubtedly deferred
many persons from purchasing them as permanent
Investment, and on,e4uently they are largely
held in this country aud in Europe for speculative
purposes by persons who aesgn to put them upon
the market wneneuer the advance shall furnish
sufficient inducement or when political or financial
disturbances may create demand for money for
other purposes. 1t is probable that from seven to
nine hundred millions OF these bonds are now held
in Europe, and to q considerable extent by
persons who will! dispose Of them under
Ie 70 IN Tncn mro IN ndSe s IRE S1Ca
the Austrian and Prussian war, would he likely to
tndnce the return OF sufficient amount to this
country for sale to embarrass business and IN
OF resumption to cause the suspension of banks. 1t
Is Therefore In my Judgment 6 essential mt that the
and that other bonds be substituted in their place,
issued upon terms and conditions which viii
rfaoC. aaS question as '0qs IS not mere; tRs tRs
resumption Of specie payments as a measure by
under such circumstances that the position can be
maintained not only in times Of tranquility, but also
In periods of excitement and peril.
Our course, IL seems to me, is plain. Every mea-
sure of the Government bearing upon the subject
should tend to appreciate the value of our paper
currency. 1t is probable that some decrease in the
volume of paper will ultimately be eceSSary. j
therefore respectfully suggest that the secretary
OF the Treasury be clothed with authority to reduce
not exceeding two millions OF dollars In any one
month. Thus will the country be brought gradually
it may be and yet without disaster, into condition
when the resumption of specie payments will be easy
if not unavoidable. On tue 1st of December, 1869,
the principal of the public debt OF the United States
not deducting bonds aud cash on hand, amounted to
So, Cos, ,2S6 1889 or this amount the sum OF
1885, 80 is represented by United States notes
not bearing interest. The larger part of this is
needed for circulation, but the amount can be re-
duced from the ordinary revenue Of the country il
Congress shall consider 1t eXpedent to make prOvi-
sion for such reduction. The fractional currency in
circulation was $685. 6s, and there IS no occa
sion for any legislation in reference to this item OF
the public debt There also outstanding certi-
amount Of s36, $40 These certificates are
redeemable on presentation. These three
items amount in the aggregate to
s4s lG81S, and in making provision for the pub
or the loan of January /, 1861, the sum of sI,O22
900 is outstanding and payable on the 1st OF Janu-
Wi
lars, is payable in 1873. The bonds known as ten
forty bonds amounting to s194 800, are not pay
able until 1874 The six per per 14 cent It.: bonds pay &
bonds Known as eghty-ones and ten-forties,
amounting in the aggregate to s76244, 900, are not
due and cannot be paid previous to 1874 and ISL it
for new loan. The Five-twenty bonds, amounting
in the aggregate to 100, are either due or
will soon become due, and 1t is to this class of the
public debt and to this class alone that attention
OF this amount the sum of s75,44T 800 has been
purchased since March last, and the
ponds are now held by the Gov
ernment Before any measure for funding the
nye-tWenty bonds can be consummated the Govern
ment will be able to purchase at least seventy-fve
million dollars more. There will then remain on the
hrst of July next about sl,45O 100000 of the five
OF the entire indebtOnness OF the United States only
the unimportant sum OF twenty-seven million dol
lars will b. due and payable previous to 1874.
Under these circumstances II does not seem 10 ME
to be wise to authorize the funding OF the whole
amount OF the five-twenty bonds which, as Is now
anticipated will be outstanding on the lst of July
fered to remain, either for purchase redemption
previous TO 1874 Should the sum OF $3.50 600 900 be
isiS saS Tor win 'na' be n Condition % puOtlC
be easily redeemed Between 1874 aud 1881 the
ten-forty bonds could be paid, and provision alsC
become due In the year 1851. 1t may be wise to re
duce tho posed loan to 81 600 0O0 which would
about $50 90 6O6, or hardly more than $50 1000
year. Assuming that the proposed loan will be fo
an amount not exceeding sl,2e0 100000, / recon
S400 200, 900 each. The first class OF $500 000o 0O
to be payable In fifteen years and TO be paid il
weny az and 10 @ pG
twenty years. The third class OF 900 dol
lars to be payable in twenty-five years and to b.
paid in thirty years. The essential conditions OF TIN
new loan appear to me to be these:-
First. That the principal and interest shall b
made payable in coin.