The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1869-12-08

yet referred to, is that OF an irrodeemable cur
rency. 1t is an evil which hope will receive,
your most earnest attention. It is duty, and
one Of the highest duties of Government, to
secure to the citizen a medium of exchange,
OF liked, unvarying value; this implies o
turn to a specie basis, and no substitute for it
can be devised. 1t should bo commenced now
and reached at the oarlieat practicable mo-
m5nt consistent with fair regard to the in
forests of the debtor class. Immediate re.
sumption, if practicable. would not be desir-
able. 1t would compel the debtor class to pay
beyond their contracts tho premium in gold at
the date OF their purchase, and would bring
bankruptcy and ruin to thousands. FIuc,ua-
tion, however, in paper value of the measure
csts OF trade; it makes the man OF business
an involuntary gamblcr-for, in all sales
whero future payment is to DO made, both
parties speculate as to what will be tho value
OF currency to be paid and received. 1 ear
nestly recommend to you, then, such legisla-
ton as will insure gradual return to specie
payment and put an immediate stop to the
thods to secure the former Of these results are
numerous with specustors on political econo-
my. To secure the latter, 1 sec but one way,
and that is to authorize the Treasury to re-
deem it's own paper at a fixed price whenever
presented and to withhold from circulation all
currency 80 redeemed until sold again for
gold: The vast resources Of the nation, both
DEVELOPED an and undeveloped, ought to make
our credit the best on earth. With less bur-
den Of taxation that tho citizen has endured
for six years past, the entire public debt could
DO paid in ten years, but it is not desirable
that the people should be taxed to pay it in
that time. Year by year the ability to pay in
| creases in rapid ratio, but the burden of in
| terest ought to bo reduced as rapidly as can
be without violation of contracts. The public
having from five to twenty, and from ten to
forty years to run, bearing interest at tho rate
OF and per cent, respectively. 1t is op-
tionsl With the Government to pay these
honda al hn y,,ir 80
least time mentioned upon their face. The
time has already expired when gront part
may be taken up, and rapidly approaching
when all may be. It is believed that All which
arc now due may be replaced by bonds bear
Ing rate of interest not eHcekding Al per
cent. and as rapidly as tho remainder become
due that they may be replaced in the same
way. To accomplish this it may be necessary
to authorize interest to be paid at either of
three or four Of the money centres of Europe,
or by any Assistant Treasurer of the United
States, at the option of the holder of tho
bonds. suggest this subject for tho conside-
ration OF Congress, and also simultaneously
with this the propriety of redecming our cur
rency, rs before suggested, at its market value
the rate at which currency will be bought and
sold from day to day, or week to week, at Same
rate Of interest as the Government pays upon
it9bonds.
Will necessarily receive your attention. The
revenues OF the country are greater than it's
requirements, and may with safety be re-
duced; but as the funding of the debt in four
or four nd-a-half pcr cent. loan would reduce
the annual expenses largely, thus, after fund
ing, justifying greater reduction Of taxation
than would be now expedient, 1 suggest q
postpOnement of the question until the next
meeting Of Congress. It may be advisab Bile to
modify taxation in instances where unjust or
burdensomc discrimination arc made by the
present law, but a general revision of the laws
regulating this subject recommend a post-
OOnemGnt /
renewal Of the tax on incomes, but at reduced
rate, say three per cent, and this tax to ex-
pire in three years. With the funding of tho
national debt as here suggested, I feel safo
in saying that taxes and revenue from imports
may De reduced safely from SEQ, 900, 600 to
$50 ,O0O, ,O0O per annnnl at once, and may be
still further reduced from to year to year, as
the resources Of the country arc developed
Tho report of the Secretary of the Treasury
shows the receipts OF Government for the tis-
cal year ending juno 80, TO be 1870 ,9i3, TAT;
expenditures, including interests, bounties,
&c, to be 1921 ,49o, 597. The estimates for the
ensuing year are more favorable to the Go
vernment and will no doubt show a much
larger decrease of tho public debt. The re-
ceipts In the Treasury, beyond expenditures,
have exceeded tho amount necessary to place
to the credit of tho sinking fund as provided
by law. To lock up the surplus in the Trea-
sury and withhold it from circulation would
lead to srch contraction OF currency as to
cripple trade and seriously affect the prospe-
rity OF tho country. Under these crcum-
stances the Secretary of tho Treasury and
myself heartily concurrod in the propriety of
using all surplus currency in the Treasury in
| the purchase of Government bonds, thus re-
ducing the interest bearing indebtedness of
tho country, and of submitting to Congress
the question of the disposition to be made of
bonds 80 purchased. Bonds now held by the
Treasury amount to s75, 900, OoO including
those belonging to the sinking fund. re-
commend that the whole be placed 10 the Gre
dit OF the sinking fund.-
Your attention il respectfully invited to the
| recommendation Of the Secretary OF the Trea-
sury for the creation of an Office of Commits
eioner OF Customs Revenue; for the increa 90
OF the salary OF certain classes Of officials.
and substitution OF Increased national bank
circulation, to replace outstanding per cent.
certificates, ard most especially to his recon-
mendation for the repeal OF laws allowing
shares OF fines, penaltios, forfciturcs, &C., to
officers OF Government or to inforners. The
Office OF Commissioner of Internal Revenue is
one of the most arduous and responsible un-
der the Government. 1t falls little short Of q
Cabinet position in its importnnco and respon-
sibilities would ask for it, therefore, such
legislation as in your Judgment, will place the
oitico upon footing OF dignity Commensurate
with it's Importance, and with the character
and qualifications OF class of men required
to fill it properly.
AS the United States is the froest OF all ma
tions, 80 too its people sympathizc with all
peoples struggling for liberty and self-govern-
ment; but while 80 sympathizing, it ID due to
our honor that we should abstain from euforc-
ing our views upon unwilling nations, and