Evening star. [volume] (Washington, D.C.) 1854-1972, 1871-12-04

ration, and will be submitted 90 Congress
The removal OF duties from a large class of
articles used in manufactures. and the reiue-
ton Of the duties upon coal, furnish an oppOr-
tunity for a moderate decrease in the rates OF
duties upon those products whose cost VIII be
diminished by these changes.
While nothing, as the consequence of legisla-
ton, could be more disastrous TO the public
prosperity than policy which should destroy
OF the country, II is still possible, BY wise and
moderate changes adapted 90 the condition OF
business and labor, "a reduce the rates OF duties
with benefit TO every class OF people.
The average premium on gold for the wear
1865 was SS.5 per cent; fOT the year 1869 IL WAS
1886 per cent. premium; for the year 1850 IL
was i43 per cent. premium; and for the first
eleven months OF the year 1871 10 was l2.l per
cent. premium. The value OF the paper cur
rency OF the country during the years 1859 aud
$50 Was apparently appreciated by the in
creased use of paper money in the South, but
chiefly by the establishment of the credit OF the
United States upon firm basis. On the first OF
January, ISL, the last named fact was fully ac-
complished, and since that time the appreciation
Of the paper currency has been due wholly to the
increased demand for IL in the business affairs
Of the country. The difference between the
value OF paper money at the present moment
be attributed TO the latter cause, and furnishes
the best means which the country has vet had
for ascertaining the quantity OF paper cur
reney which can be used and its value kept at
par with gold.
The result of this test concurs with what
seems TO me 10 be the best opinion upon the
subject, that the amount of paper money in cir
culation is still great that il cannot be main
tanned in value at par with coin. There are two
modes of relief: One is to reduce the volume OF
currency, as was recommended by me in my
annual report submitted TO Congress in Deem
Der, 1863; the other mode Is 20 await the growth
of the country, and the increasing demands OF
business which in time viii produce the desired
result.
The chief means OF securing the end sought,
without a reduction in the volume of currency.
would he the use of paper money upon the
Pacific coast. With this object in view, steps
have already been taken by this Departing mt for
the purpose of ascertaining whether IL Is practi-
cable TO substitute paper for coin, and I have
reason 80 to anticipate that change may be made
TO that result, which will not affect unfavorably
the general character of the system"
The report of the Controller of the Currency
shows that one hundred and fCrty-ive banks
have been organized under the act approved
july II, 1871, providing for the issue of ftyfour
millions OF dollars of additional bank circulation
and that the sum of Sd ,3S3 800 has been issued.
BY virtue OF the same act the Treasury has
redeemed So, go 900 Of the three per cent. GER
tifcates then in circulation, leaving the sum of
ofsuggesting, that il appears 10 me to be wise TO
leave the distribution OF the circulation author
lied by said act As il now stands.
Should the States that have already received
their proportion of circulation be authorized to
take what may remain, only brief period will
elapse before q demand will be made from
States with limited circulation for an increase.
Ii pr udent, therefore TO retain the balance
of the ffty-four millions for distribution those
States now having a claim to IL, ON the basis of
equality of apportionment-
The details Of the subscription to the loan
show that the national banks have, upon the
whole, acted liberally-more than a hundred
millions Of dollars having been subscribed for
by them on their own account.
1t is not unreasonable to tender 20 these
institutions the opportunity TO subscribe for
bonds under the act u July II, 1870, TO an
amount equal to the deposits required of them
as security for circulation, and 10 couple that
offer with provision that, after ninety DAYS, to
the extent that the offer may be declined, other
banking associations may be formed in the sew
failed to make the required subscription and
the circulation tranferred from such banks TO
the new associations.
The banks now organized cannot justly COM
plain, If, having an opportunity TO pursue the
business upon q e new bonds, and declining IL,
other association shall succeed to their fran
chises and rights.
The business of the Bureau of Engraving and
Printing has been carried on with diligence
during the year, and with satisfactory results.
Although some efforts have been made at
counterfeiting the special papers used by the
Department, they have not been successful,
and the specimens captured are 80 crude as not
TO excite serious apprehensions as TO ultimate
success.
Since the first of July, 1869, seventy million
sheets of paper lave been manufactured, all of
which have been accounted for ON the books OF
respectfully recommend that an appropria-
ton lie made for new issue of national bank
notes. Those now in Use are much worn and
very successful counterleits OF several denomi-
The Secretary advises the erection OF a gov
eminent building at Chicago, i'm place Of that
destroyed by fire, of a character suited to the
wants of a frst-class city. Also, recommends
appropriations for pavilion hospitals at various
points. Also, recommends the passage of q bill
Tor the organization of Mint Bureau.
lie .ta
importance of increasing the salaries of the ba-
reau officers and heads Of division in the Treas
ury Department. At present there is great in
equality and injustice existing. He urges the
restoration of the Solicitor of the Treasury and
Solicitor of Internal Revenue from the Depart
ment Of Justice to the Treasury Department.
cessfIl pegotiafion of the National Loan au-
thori2ed by act Of July II, 1879, and says that
on the 1st of September public notice was given
that certain fve-twenty bonds, to the amount of
one hundred millions of dollars, OF the issue of
1s62, specified by number as nearly a. was prac-
ticable, according to the provisions of the act of
July IA, $50, would be paid on the LIST Of De-
cember. and that the interest would cease on
that date. of the bonds so-called, more than
eighty millions of dollars are now in the possess
| sion OF the Department, Of which amount seven
teen millions of dollars have been paid in coin,
and the r6 mainder have been received or depC-
sited in exchange for the five per cent. bonds.
The most serious obstacle in the way of negc-
| tiatiBg the four and fOuT-and-a-half per cent.
bonds i'm Europe is the inadequacy of the COM
missions allowed. The Secretary advises such
an allowance for commissions upon the four and
four-and- a-half per cent. bonds as will secure
the negotiation OF them with the least possible
delay. Returns for the fiscal year 1s70-7l
show that the ocean commerce of the United
States is passing rapidly into the hands Of
year 1se0, nearly seventy-ode per cent.
of the foreign commerce of this country was In
American Ships in 1sG4, it had fallen to forty
six per cent; i'm 1868, to forty-four per cent;
and in 1871, il Is reported at less than thirty
eight per cent.
After careful consideration of the whole sub
ject, the Secretary advises, for the restoration
of our commerce, the passage of law guaran-
teeing to persons who may employ in the foreign
trade Amercan-built first-class iron ste amships
Of not less than two thousand tons burden each,
an annual payment, for the period of i've years,
Of the sum of thirteen dollars per ton. The sub
sidy should be proportionatey less to vessels Of
lower classification.