Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1872-12-03
SECRETARY BourwELL's REPORT.

SECRETARY BOUTWELL'S REPORT.
The Treasury report says that necessity
exists for q new issue CT national bank
notes.
The Secretary eXOnerateS Assistant
Treasurer Hillhouse from neglect of duty
in the stamp division defalcation in the
Assistant Treasury az New York.
The Secretary again recommends the
passoge of bill to amend and consolidate
the navigation and customs collection laws
of the United States. AS the leading pur-
suits of the country are now stronger than
ever before, in the possession of adequate
capital and a supply of intelligent laborers
there may be moderate reduction from
time to time in the rate of duties as the
diminishing expenses of the Government
shall permit without either alarming at
that or injuring labor.
He says the circulation of the banks
should be fixed and limited and that pow
er to change the volume of paper in circu-
lation within the limits established by law
should remain in the Treasury Depart
ment. A degree of feXibility in the volume
of currency is essential for two reasons.
First, the business of the Department can
not be transacted properly if limit is
made and the power to raise the circula-
tiOn above OF reduce it below that limit is
denied. Secondly, there is q necessity
every autumn for moving the crops with
out delay from the South and West to the
seaboard that they may be in hand for eX-
port and consumption as wanted. The
problem is to find way of increasing the
currency for moving the crop and dimin-
ishng it at once when that work is done.
This is q necessary work and inasmuch
as it can not be confided to the banks the
power should be retained in the Treasury
Department.
Believing that the country is not pre-
pared to sustain the policy of contraction
the Secretary considers the means by
which the value of our currency may be
improved. The basis of policy Of inn
prOvements must be found in a steady re-
fusal to add to the paper in circulation un-
til it is Of the same value essentially as
coin, this being accepted as the settled pur-
pose of the country, there can be no per-
manent increase of the difference between
paper and coin, and an opportunity will
| be given for the influence of natural
causes, tending upOu the whole to a better
| financial condition. All legislation limit
! ed III Its operation to the paper issues OF
the Government, whether bearing interest
or not, and which in its effects shall tend
to diminish the market value of coin, will
be found upon analysis to contain q plan
for contracting the volume of paper curren
cy, and all legislation so limited which
does not contain such a plan will prove in
effectual.
The Secretary, without proceeding to the
discussion of the general subject of resun-
ing specie payments. thinks all will have
been gained that is of value, when the
treasury shall be prepared to pay the de-
nand notes OF the Government in coin,
and the banks shall be prepared to pay
their notes either in coin or legal tender
notes, and then our good fortune will clear
ly appear in this, that our paper currency
is not exclusively of National Rank notes,
nor exclusively of United States notes.