The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-12-03
Report Of the secretary orthe Treasur,

By TELEGRAPH TO THE DISPATCH.
WAsH1NsToN, December 1.-The Treasury
report says that the, necessity exists for a
new issue Of national bank notes. The Sec.
rotary exonerates Assistant Treasurer Hill.
house from neglect of duty in the stamp
division of the Assistant Treasury at New
York. The Secretary again recommends the
passage of bill 10 amend and consolidate
the navigation and customs collection laws
of the United States. He says as the
leading pursuits of the country are
now stronger than ever before in
the possession of adequate capital and
q supply of intelligent laborers there
may he moderate reduction from time to
time in the rate Of duties, as the diminishing
expenses Of the Government shall permit,
without either alarming capital or injuring
labor. He says the circulation Of the
banks should be fixed and limited, and
that power to change the volume of paper
in circulation within limits established by
law should remain in the Treasury De
partment. a degree Of flexibility1 in the
volume of currency is essential for two
reasons. First, the business of the Depart
ment cannot be transacted properly if a limit
is fixed and the power to raise the Cir
culation above or reduce 1t below that limit
is denied. Secondly, there is necessity
every autumn for moving the crops without
delay from the Southwest to the seaboard,
that they may be on hand for export and
consumption as wanted The problem is to
find way OF increasing the currency for
moving the crops. and diminishing it at once
when that work is done. This is a necessa-
ry work, and inasmuch as it cannot be con.
fided to the banks the power should be re.
posed in the Treasury Department.
Believing that the country is not prepared
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 Improvement must
be found in a sturdy refusal to add to the
paper circulation until it is of the same value
essentially as coin. This being accepted as
the settled purpose Of the country. there car
be no permanent increase of the difference
between paper and coin, and an opportunity
will be given for the influence of natura
causes tending upon the whole to better
financial condition. n7 ~
AlIlegislation limited in its operation to the
paper Issues of the hanks and of the Govern
ment, whether bearing interest or not, anG
which in its effect shall tend to diminish tht
ll!di hct Sdluc vi Colus VIII w iOuuu upOL
analysis to contain plan. for contracting
the volume of paper currency; and all legis
lation so limited which does not contain
such a plan will prove Intellectual. Tht
Secretary; without proceeding to the discus
sion of the general subject of resumins
specie payment, thinks all will have beer
gained that is of value when the Treasury
SHALL be prepared to pay the demand notes o
the Government in coin and the banks shal
be prepared to pay their notes either in coli
or legal-tender notes, and then urgood futur,
will clearly appear in this, that our pape
currency is not exclusively of national banl
notes nor exclusively Of United States notes