The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-10-04
THE NATIONAL FINANCES.
Secretary BoutweIrs Ohio Spec III
What has been Done and What is to
be Done Next.

Secretary Of the Treasury Boutwell, delivered
a speech at Cincinnati on the 2sth instant. he
led off with few general remarks IN criticism
of the Democratic party, and then entered
upon review of the financial operations OF
the government since the close of the war, 10
the course Of which he said:
On the 1st OF September, 1871. the net debt
of the United States, including accrued inter
est, was 81, ,274, ,l22, $50 38, showing decrease
from March l, 1859, of s251, $40, ,6sS 63. Ia the
same period the annual interest account
was reduced from sl26, $50 to lll,43s,.
1856 so, or about million and quarter per
month.
he alluded to the improvement in value of
the government bonds. while the debt re-
mains precisely the same, except upon the
theory maintained by our opponents, that the
bonds themselves are 10 be paid In green
backs, and no provision made for the redemp-
ton of the greenbacks. II the greenbacks are
TO be paid In coin, as one would suppose tney
ought to be paid, then nothing would be
gained by compelling the public creditors tc
lake the greenbacks In exchange tor their
bonds, unless 1t be the saving OF interest, ana
this seems poor compensation ior the de-
struction OF the public credit and the disgrace
OF the country.
FUNDING OPERATIONS.
Mr.. Boutwell, recapitulated what provisions
had been made with view TO fundlnS por-
ticns of the debt at lower rate OF interess.
The act of July ID. 1870, for refunding the
national debt. provided that the proceeds OF
subscriptions shOnld be used for no other pur-
pose than the redemption of outstanding hVe-
twenty bonds, and also that three months no.
tice should be given to the holders OF such
bonds, and that after It's expiration interest
thereon should cease.
These two provisions OF law involve neces-
sarily a loss OF interest TO the government
upon such subscriptions as might be made, as
the government would be obliged to Issue the
bonds upon payment of the par value OF the
same iu coin, and hold the money until the
bonds called should mature.
The national bank act authorized the Secre-
tary of the Treasury to designate certain banks
as public repositories. He did, accordingly,
designate them as repositories tor such
moneys as they might subscribe toward
the new five per cent. bonds. until the
interest on the old bonds should cease, and
they should be presented for payment. II Is,
of course, to be accepted as tact that there IS
loss of interest 70 the government, Dut IL IS
also true that the loss is que to the provisions
of the act referred to, and Is properly incident
to the duty Of the government 10 give notlce
to the holders of the bonds Of future time
when the principal will be paid, and when the
interest ceases.
In my annual report for 1870 stated that
the public debt ought to be reduced at least
fifty millions a year, and to that opinion
adhere, and this can be accomplished with
such reduction of taxes as will meet the de-
mands of business and remove most OF the
Objectionable features Of the tariff system.
INTERNAL REVENUE.
The amendments made to the Internal reTe-
nue. system have relieved the people OF most,
if not all, of the taxes really burdensome. Un-
der that system there are now but seven SUBJ
iects of taxation. First, the income tax OF two
and half per cent. on the excess income
over $1,000 year, which expires, unless there
Is further legislation, In 1872. The other SUBJ
jects OF taxation are stamps, ba 9, gas, dis
all these sources 1t Is expected that about one
hundred and twenty-five millions dollars q
wear will be received; and 1t cannot with truth
be said that these taxes bear heavily upon the
people, or that they are an embarrassment TO
business.
THE VOLUME OF CURRENCY.
Another course recommended by me in my
annual report of December, 1869. Is to reduce
the volume of currency, for which then ASK
ed authority for an amount not e3ceeolnS Two
millions of dollars per month. 1t is the desire
and The purpose of the Republican party, OF
the President, and of those associated With
him In the administration Of the government,
to do what is practicable to render the paper
of the country as valuable as gold at the ear
liest moment, without violence or injury to The
business interests of the country. The means
must be left 10 Congress.
GENERAL RESULTS.
In addition to reductions already effected,
our iinaucial condition at this moment Is such
as to justify the expectation that at the next
session of Congress the taxes may be reduced
At least $50, ,O00, 900 more. The net expenses,
,rcludinq the interest on the public debt, pen
,ions, bounties. the cost of the internal reve-
nue bureau, and oil expenses resulting from
he war. have been reduced from $l73, ,520,37l
n for the year ending June 80, 1868, to $685.
sia ZOO 2n TOR the year ending Iune 30. 1871.