The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1872-12-13
THE JOURNAL.
Tho Treasury Renort.

Il KILL - ~ ~ Il ~ ~ A1<o t
The Treasury Report. E
The most interesting and impor-
tant features of the annual report of.
Secretary Boutwell, on the operations
ofthe Treasury Department and the
condition of the national finances,
are those relating to the public debt,
the carrying trade, and the future
financial policy of the government.
The first of these alone is satisfac-
tory; the other two showing a con-
dition requiring remedies which, we
are free to say, do not appear TO be
at hand. 1851
ThereductiOns effected in the pub
lie debt and in Federal taxation, not
only during the last fiscal year, but
for six years past, are marvels in
their way. The aggregate of debt
reduction between March /, 1869,
and November l, 1872, that is, under
Grants administration up to date,
was $363, ,696,999 81. And the ag-
gregate reduction in taxation during
the same petiod amounts to $685.
350,17l per annum. The total annu-
al reduction in taxation since July,
1856, reaches the enormous figure of
5000, 369, ,l7l-showing to how great
extent the industries of the, country
have been relieved from the extraor-
dinary burdens imposed by the war,
while, at the same time, the public
debt has been materially reduced.
This is result to be proud of, and
augurs well for the financial sound
ness and future prosperity of the
country.
There remain, however, tEo prin-
cipal evils, consequent upon the civil
war, which time has not removed,
namely, the loss of our carrying
trade, and an irredeemable paper
currency. Secretary Boutwell, dis
cusses these evils at length, and
marks out the policy which the pub
lie good requires in order to counter
act and remedy, if not remove them.
And, in a word, the Secretary's pol
icy for reviving our foreign COM
merce is to admit all materials for
ship building free Of duty, and still
further to foster this industry by
government aid, though in what man
ner, is not explicitly stated; and his
policy for resumption is to refuse all
expansion of the currency, and wait
for the country to grow up to spe-
Gle standard of currency value.
We shall have occasion hereafter to
discuss at length both these propo-
sitions; but the latter is especially
Important as bearing on the present
condition of momentary stringency.
Mr.. Boutwell, recognizes the neces.
sity Of elasticity in our circulating
medium, and argues in favor Of re-
posing in the Treasury Department
the power to contract or expand,
within certain legal limitations. But
the only occasion which he recog7
nizes for an excess of currency
above the ordinary supply, is in the
fall of the year and for the movement
of the crops. But the experience Of
this season shows that the demand
for 9nelastic or increased currency
is not confined to the marketing OF
the years htrvests. The bulk of the
crops is already moved, but without
sensible relief to the money market.
This shows that the country needs
broader philosophy than Mr.. Bout
wells, and a more ample remedy than
his own injection of currency into
the market in October, only to with
draw it in November and December
under conditions of more absolute
necessity for its remaining. than
those under which it was reissued.
Mr.. Boutwell, is right in "believ-
ing that the country is not prepared
to sustain the policy of contraction. u
But then Mr.. Boutwell, is just now
engaged in this very business. To
say nothing of his recalling the S.
100000 lately issued to relieve the
October stringency, he also contin-
ues, at the same time, to call in the
three per cent. certificates, having
Just served notice of the redemption
of another $800,000. AS these GER
may be held by the bannks
in their legal reserve, the Secretary's
call compels the retirement of an
equal amount of currency to keep the
reserve up to the legal standard,
Thus the effect of the Secretary's
policy is the reverse of his
theoretical belief that the country
cannot stand contraction. Mr.. Bout
wells theory is better than his pres
ent practice; and the latter goes far
to defeat his claim that the power OF
the volume Of currency to
the varying demands of trade should
be left with him. The country looks
TO Congress to examine into this |
matter, and to devise some means by
which the currency may be made in
lerently elastic, and without depend
ence on the clumsy manipulation Of |
,he Treasury department. While it /
will be generally admitted that we
ought not to look awayfrom specie |
oasis by permanent currency ex-
oansion, we are equally confident
hat the country will demand some
lirect relief from the stringency oe-
by the growth of the coun-
ry, the increase in the volume OF
business, and the inevitable contrac-
ion OF the currency by tbs wear and
ear of constant use. The subject
s one which calls for the early and
arnest consideration of the Com
nittee on Currency and Banking,
nd of Congress itself.
The Story of a Very Bad Indian.
On the reservation there once lived
n Indian who was so thoroughly
ad in every respect that he was
enerally known by the soubriquet
f f.~The Yuka Devil" He commit