The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-12-06

| do not undertake to state precisely the
causes which have contributed to the public
prosperity, there is no substantial reason
for questioning the truth of the statement
that the last few years have been the most
prosperous in the history of the country
years without example in our own affairs,
other government.
1t is practicable to dispense with all rev.
cnue from internal sources except that de-
rived from stamps, spirits, tobacco, and
malt liqnors. These sources should furnish
for the year 1872 '73 revenue of about
one hundred and ten millions of dollars,
making a reduction of taxes of sixteen mil.
lions of dollars. The revenue from GUS
toms under existing laws, and from lands
and miscellaneous sources, would amount to
about two hundred and thirty-three millions
more, making total revenue for that year
OF three hundred and forty-three millions OF
dollars.
The expenses of the government, not in
GLIDING the amount payable on account Of
the sinking fund, are estimated at $685.
OBS, 773.99.
If to this sum be added fifty millions Of
dollars for payments on account Of the pub
lie debt, including the amount due on the
sinking fund, there remains balance Of
about twenty millions, within which reduc-
tons may be made in the revenue from
customs. This amount. added to the re-
ductions proposed under the internal rev.
enue laws, gives total reduction of thirty
six millions.
In this view, i respectfully recommend
IN tho cidaratir,, IF Coprraco tho ,,aJ,,o-
ton of the duties on salt to the extent Of
fifty per cent; the duty on bituminous coal
to fifty cents per ton I; the reduction of the
duty on raw hides and skins and the re-
moval of all duties from large class Of ar
ticles produced in other countries, which
enter into the arts and manufactures of this
country, and which are not produced in the
United States, and the revenue from which
is inconsiderable. Such list, with the
revenue derived from each article is in
course of preparation, and will be submit
ted to Congress-.
The removal of duties from large class
of articles used in manufactures, and the
reduction of the duties upon coal, furnish
an opportunity for moderate decrease in
the rates of duties upon those products
whose costs will be diminished by these
changes.
While nothing, as the consequence of le-
gislation, could be more disastrous to the
public prosperity than policy which
should destroy or seriously disturb the
manufacturing interest of the country, it is
still possible, by wise and moderate
changes adapted to the condition of BUSH
ness and labor, to reduce the rates of duties
with benefit to every class of people.
The average premium on gold for the
year 1868 was 1854 per cent; for the
year 1869 it was 1886 per cent. premium
for the year 1870 it was 1883 per cent.
premium and for the first eleven months
of the year 1871 it was 12.l per cent. pre-
MUM. The value of the paper currency
of the country during the year 1869 and
1870 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, 1871, the
last named fact was fully accomplished,
and since that time the appreciation of the
paper currency has been due wholly to the
increased demand for it in the business
affairs of the country. The difference be-
tween the value of paper money at the
present moment and its value on the frs. oi
December, 1870, may be attributed to the
latter cause, and furnishes the best mean
which the country has yet had for ascertain
ing the quantity of paper currency which
can be used and its value kept at par with
gold.
The result of this test concurs with what
seems to me to be the best opinion upon
the subject, that the amount of paper mo-
ney in circulation is still so great that il
cannot be maintained 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 re-
port submitted to Congress in December
1869; the other mode is to 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 enc
sought, without reduction in the volume
of currency, would be the use of paper
money upon the Pacific coast. With this
object in view, steps have already beer
taken by this Department for the purpose
of ascertaining whether it is practicable to
substitute paper for coin, and have reason
to anticipate that change may be made
in the laws relating to national banks tend.
ing to that result, which will not affect un-
fayorably the general character of the sys
tenn"
'sThe report of the Controller of the Cur
rency shows that one hundred and forty.
five banks have been organized under thu
act approved July II, 1871, providing fol
the issue Of fifty-four millions of dollars o
additional bank circulation, and that tht