The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1869-12-21
WASHINGTON.


COMMISSIONER WELLS REPORT.
WASHINGTON, Dec. DETERMINATIONS Wells
report states that the revenue for the fiscal
year ending June 3, 1869, was $3.50 ,943, 747 q.
The national dn1 expenditures Tor the same period
we're 1921 400 1915, leaving an excess of reve-
nue. over expenditures of Sal ,453 ,149 40. The
reduction OF the public debt for the current
calendar year has been $S7, 147 466 OF, and since
the LIST of September, 1865, 1904, 129, $500.
The Commissioner figures out the total cost
OF the war, the FIRST time such statement has
been attempted, as follows:-N National indebt-
edness, March Z 1861, S76,455, 299 49, receipt
of the Treasury from April 1, 1861, to April l,
1865, S675,799, 691 "a; receipts from April l.,
1865, to june 3d. 1869, 81 90S, 567 625 90; amount
of public debt, less cash and sinking fund in
the Treasury, June 80 1862 $2,4S9,002, 480 So;
deductng the puclc debt at the breaking out
of the war-$76,4 55, 299 2S-leaves the sum bor-
rowed tor war purposes, and not repaid out of
the above receipts, 81, 5S4 367 317 %, m liking
the total expenditure IN the eight and quar-
ter years of the war and its effects of 81 $685.
914, 1888 deduct what, but for the war ,would
have been tue average expenditures of the
Government, say $l00000000 per year. which
wonld make 1925 100000, leaving $4 III .914,-
49S 30 TO represent the cost of the war to the
United States Government down to June 30,
1867 10 this, however, should be added the
value of the pensions now paid, if the same
were capitalized This at eight years pur-
chase OF the present annual PAYMENT Would
large figures, representing only the cost to the
National Government, the Commissioner adds
S4,023.O00,O0O for the Increase of the State
deb and for estimated losses to the loyal and
Confederate States and other causes.
The total immigration to the United States
since 1865 has been 2,91S,213 Five thousand
miles or railway have been built the past year.
and $4,000 miles since the close of the war.
Assuming The present population of the United
States to be 10000 900, and the average valne
of the held nv
nominally increased from $451 26 in gold in
1860 to $500 in currency in 1869, the present
valua ion of the United States would be $23,-
400,OOo,O30. an increase since 1860 of So 216,-
1887, Or TO per cent. The increase 10 yalu-
alton during the decade ending with 1860 was
about % per cent, or allowing for omissions
and I'm ler-estimates in the census, certainly
not in excess of per cent This last, if con-
tnued, would give total valuation in 1870 of
$25 529 100000 Adding 80 per cent. to this
amount for the premium on gold, the currency
valuation at this time would be $S33, 1888 OOO, 600
Deducting the cost OF the war as given above,
say SO, 1000, 0000 900, we should have left 1914 1885,
GOO, 900 as the accumulated wealth of the coun-
try at the close of the present decade.
The present gross annual product of the ma
ton is estimated at Sc 825, 900 GOO in currency.
This estimate is based on a pro rata capital
product OF $175. The total estimate of agricul-
The estimated valuation of industries, manu-
features OF cotton, wool, leather, paper, railway
service and fisheries is 81 ,295 900, eco.
The total amount of government securities
held abroad is estimated at s., 600, 100000. The
estimated amount of State and railway bonds
railway shares mining shares municipal bonds
and miscellaneous bonds and other American
capital invested or held in foreign countries is
S465, 100000 The interest on the total amount
held abroad calls for a foreign payment annu-
ally of $S7 100000.
The account of the United States with for
egn countries for the fiscal year ending June
80, 1869. may be exhibited substantially as fol-
lows: Imports of merchandise (gold valued
SLY 81 ,165; exports (gold value) $275611 691;
re-exports, etc, $10,907753; total, $286,5l9.-
3H; excess of imports, $130 ,S52 421; less excess
of foreign goods in bond, 1869 over 1868, S14,-
702,O79; adverse balance on 1868 and 1869, mer-
chandise account, $40. Movement of
specie and bullion exports, $42915966; re-ex-
ports, $14 ,222,414; total, 81, 13S,38O. Imports,
&19, 654 776; loss of specie and bullion, $3 4S3.-
COZ. If we suppose the excess of specie and
bullion exports to have been devoted exclusive
ly to the liquidation of the balance incurred on
the merchandise account and the remaining
balance On this account to be settled for in the
same manner it would be $7S, 766, 73S. To this
sum-must be added the following other items:
Obligations for interest paid, estimated $780,
OOO,OO0; excess of freightS carried in foreign
bottoms, 1924, 100000; expenditures of Ameri-
cans In foreign countries, $25 100000. Assum-
ing that the sums chargable to smuggling and
ed by differentiation of exports, the sum total
of the adverse balance of indebtedness of the
United States to foreign countries will at the
present time probably average about $210000,-
900 per annum. To meet and settle this con-
stantIy increasing and adverse balance, there
would seem to be under the present conditions
OF prices and cost OF production in the United
States but one resource. viz to remit certif-
Gates of Indebtedness, national, State and cor
porate, and this process is undoubtedly adopt
ed and n rnontb aft NTH nd on af-
ter year without occasionng thus far any
marked disturbance in the trade and com
merce of the country.
After considering the disturbances at work
which initiate against the equitable distribu-
ton of the national wealth, he comes to the
conclusion that an inflated, irredeemable cur
rency and excessive and unequal taxation are
the Two principal agencies which tend to i'm
poverlsh the people and unequally transfer the
gains of producers to the hands OF non produce
ers. On the currency question he thinks it
iallacy that an increase of money will increase
trade. He contends that the present volume
of currency is in excess. This excess is proved,
he argues, by the fact that the prices of domes-
tic commodities is in eXess ofthe prices in other
countries and out of all proportion to prices be-
fore the war; The excess is also proved by the
further fact that the amount of currency in
circulation has been arbitratraly increased
during the past eight years considerably more
than two fold, although the increase of popula-
tiOn production and accumulated wealth du-
ring the same time has been, by general agree
ment, in very much smaller proportions; and
although at the former date the amount of cur
rency in circulation was not limited by any Sc
rious restrictions upon the creation of banks or
issue of paper, really or nominally redeema
BILE in SPECIE
AS to the resumption of speciepayments.
Mr.. Wells argues that unless resumption i'm
plies contraction it will cure but small por-
ton of existing evils. If it was possible to in
stitute 100000 900 in gold for the S700000000
paper in circulation and hold that amount in
the country there would be the same initiation
Of prices and the same dsproportion between
imports and exports and the same inability to
dispose of the products of domestic industry in
foreign markets. To be sure it would be i'm
possible to Ietain such an amount of gold in the
country except by the laws of impossible bar
barism; but wherein would the reduction of
the gold currency, then, through expectation,
differ from the reduction of the present paper
currency through q .judicious and well ordered
withdrawal. There is no such thing possible
as resumption and continuance of specie pay
ments with continuance of our abnormal sys-
tenn of foreign trade and exchanges and for the
single reason that gold will not stay here and
would long ago have left us to the last dollar
had not the bonds of national government
been available for the settlement of adverse for
eign balances in place of gold. We must re-
duce prices so that foreign nations will be will
ling, because it is for their interest,to exchange
product for product, and to accomplish this
there must be contraction; for to reduce prices
permanently and equitable while maintaining
100000, 600 of irredeemable paper money is
simply an impossibity. 100000 600 of paper
cannot be kept redeemable with less than
500, 600, 900 of gold, because with such an
amount of currency it would inevitably be de-
preciated, and hence gold would bear premi-
UNI which every holder of paper would be desi-
rous to realize. With $500 900 600 of paper on
the other hand $10000O,000 gold would proba-
bly, be ample, because the currency, not being
in excess of the wants of commerce, would not
suffer depreciation, and gold and paper being
Oh otherwise equal terms paper would be pre-
ferred for it's greater convenience in use, Just
a. in 1860, the banks were fully able to redeem
all OF their circulation which was presented for
payment, although having but IS cents of
specie for each dollar of immediate liabilities. -
1t is not the ratio between gold and paper that
needs regulating, but the ratio between the
amount OF paper in circulation and volume of
national production and exchange, of which it
| is the instrument.
The Commissioner in view of the above con-
sideratiops is constrained to believe that con-
| traction, direct and undisguised, is one neces-
| sary for the situation. In considering the cues
| ton of future taxation the Commissioner esti-
| mates that at the present rates the surplus for
| 1869 and 10 will exceed that of 1868 and 80,
! viz SS0,000,000. The gain for the same time by
the reduction of expenditures is estimated al
| $26,000000. We shall also gain he thinks, by
| the elasticity of the revenue, say from ST.,
100000 to $15,O0O,OO0. The sum of these item:
| makes the estimated surplus for the Gu rem
| fiscal year 1924 600 900.
| The Commissioner favors the application o
| the surplus in the Treasury to the abatement
| or removal of taxes, and recommends the sun
of $780, 100000 as the first measure of reduction