The Portland daily press., 1873-12-04

coin have been greater than the needs of the
government. But unless matters change there
will be deficiency of currency receipts
which must be made up by additona. taxation.
every possible reduction in the appropriations
The refunding of the debt, as begun under
Secretary Boutwell,, is going on. Taking what
has been done under the five per cent. loan
and by the receipt OF the Geneva award, it will
appear that the whole amount converted into
five per cent bonds since the passage of the
refunding act will be three hundred million
dollars, reducing the annual interest charge
three million dollars The Secretary afirms
that the credit OF the United States has not
STOOD nlgher since the close of the rebellion
than it does at abe present time, and it is be-
lieved that the refunding of the six per cent.
debt at lower rate of interest can be still fur
ther continued
The Secretary reviews the early stages of the
panic, and the pressure which was brought
bear upon his department to afford relief to the
business community by issue of United States
hotes ana by buying foreign exchange; and he
emDodles his answer to the New York Produce
Exchange. which has already been published.
1t seems, also, that he was obliged to refuse
the Charleston Chamber of Commerce asimilar
request to loan money for the purchase of New
York exchange. The only form of relief that
seemed admissible was the purchase of bonds,
which was carried out to the extent OF about
thirteen millions of dollars. The Secretary
thinks that some good was accomplished in this
way, but the deepening loss OF confidence could
not be checked by any amount of currency at
the command of the government.
The Secretary has no doubt that the practice
of paying interest on bank deposits is pernic-
ious, and he explains why He therefore rec
ommends that national banks be prevented
from paying interest on deposits, or that they
be restricted and limited therein either by di-
rect prohibition, by discriminating taxation or
otherwise. ~
On the question of the elasticity Of currency,
no definite recommendation is made, but the
whole matter is earnestly commended to the
attention Of Congress, which is invoked to avoid
further imitation and to aim at ''the most de-
sirable of all financial results to be attained,
namely, permanent return to the sound bas-
is of specie payments, and gold standard to
which our paper issues shall be made of equal
valne
He thinks that some provision might well be
made allowing national banks some discretion
in the use of their reserves at different seasons
of the year. But he would deprecate any large
increase of the legal tender issue in time of
peace, as contrary to the avowed policy of the
Government and calculated to postpone the re-
turn of specie payments. upon which the PEG.
pie are evidently determined. The volume of
the currency must be reduced or that of coin
must be greatly increased The conflict of the
statutes with regard to the limit of currency
issues is explained, and its removal is recon-
mended.
Attention is called to the provisions of law
respecting worn and mutilated notes, and it is
recommended that banks be required to pay for
all new notes furnished them, whether printed
from old or new plates.
The statistics of the foreign trade are given,
from which it appears that for some months
past and at present the balance of trade is in
favor of the United States and gold and silver
have flowed into the country during the past
two months at q rate more rapid than ever be-
fore, except in the year 1861
The carrying trade shows slight gains, and
the statistics Of ship building are very encour-
aging.
The revision and codifcation of the tariff
laws are recommended, and various suggestions
are made under this head Attention is also
called to some anomalies in the levying of the
tonnage tax. A reorganization of the customs
districts on the Atlantic coast is favored.
The state of the internal revenue for the year
is detailed. and the number of districts is said
to have been reduced about one half The sys-
tenn of collecting taxes by stamps and without
assessments has been found to give general sat
isfactiOn.