The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1873-12-27
sTRTNGENeY IN THE MONEY MARKET

| Department by those who favor n policy OF
expansion, to increase the issue of notes tn
! the maximum limit by the purchase of bonds
or otherwise; while on the other hand those
who favor the policy of contraction win bring
equal pressure to keep the issue down to the
minimum limit. He adds:
Assuming that it is the settled policy of Con-
gress, us declared in the act of June 40 1884
above cited, that the total amount of United
States notes, issued and TO be issued shall never
exceed four hundred million dollars, / am of
opinion that it would be unwise to REQUIRE the
amount in actual circulation to be kent IN to the
maximum or to any amount above the present
minimum. The Treasury depending princpaIIy
upon the receipts from customs and internal AKA
ton, without the power of borrowing or other
wise increasing iis resources, with liabilities
created by Congressional appropriations which
must be met in currency to the extent of nearly
two hundred million dollars year, ought ALWAYS
to hayea large reserve upon which ii can draw
to meet the ordinary demands upon it in case OF
emergencies, when the revenues suddenly and
unexpectedly diTninish by reason of a national
calamity or fnaTcial derangement which from
time to time are liable TO occur in all nations
Such ia reserve is also rendered necessary by
the fact that the fractional currency authorized
TO be issued to the amount of fifty million dollars
now in actual circulation to the extent OF more
than forty milliondo1aTs, is redeemable in United
States notes at the option of the holders.
In order that there may be no naisunderstand-
ing as TO the circumstances under which the
amount between the minimum and the maximum
may be issued, and that it may not be issued for
the purpose of initiating the paper currency of
the country, recommend that it be declared i; re-
serve to be issued temporarily whenthe ordinary
demand upon the Treasury shall require it, and
in payment of such demands and for the redemp-
tion OF fractional currency, the amount SO issued
to be returned 10 the reserve as soon as the
condition of the Treasury shall warrant it,
and that the purchase Of bonds shall be forbidden
so long as the outstanding United States notes
shall exceed the minimum fixed by the actof Feb
ruary 4, 1865.
1 believe that such reserve, SO restricted.
would be proper and reasonable protection
against any contingencies whereby the revenues
of the country might temporarily be diminished,
and would give GO reasonable cause to fear per-
manent imitation.
EXPORTS AND IMPORTS.
After giving some statistics showing the
amount of the expectations and importations
during the fiscal year ending June 80, 1873,
the secretary Says that for some months past
the exports have increased and the importa-
ton of goods has diminished to such an extent
that the balance of trade is in favor of the
United States, aud gold and silver are flowing
into the country. at a more rapid rate than ever
before except in the year 1851. He says that
the increase of ahipbuilding in the country is
decided, and thinks that in view of the high
price of iron and coal and the recent advance
in the cost of labor in Europe, together with
the demonstrated superior tensile strength of
American ship plates, there is reason TO ex-
pect that this branch of industry will make
rapid strides of progress. He adds:
H.
more important to the welfare of the country
than that of turning and retaining the balance OF
trade in favor of ahe United States, by a healthy
stimulation of the agricultui al and manufactur-
ing industry of the country, the reduction in the
cost of production at home, and of the transpor-
tation of merehandise from the interior ts the
seaboard, and the building of ships and vessels
to do the carrying trade, now mostly in the hands
of the people of other countries; and no iegisla-
ton should be neglected which may assist the in
dustrious people of country in attaining these
desirable rGsltS.
With the balance of trade in favor of the United
States, a return 10 ospece pay ments may be easily
reached, and wht.n reached may be maintained If
such wise financial measures are adopted as will
prevent overirading, extravagance, and specula-
tion. and encourage economy, industry, thrift,
and only well-difecfed and prudent enterprises
conditions rs essential TO the prosperity of na-
tions as to individuals.
After giving his reasons for the revision and
codifieation of the tariff laws, the Secretary
especially recommends the repeal of the tom
mage tax ON American vessels, and the enact
ment of new laws regarding the enrolment
and license of vessels employed on the inland
waters of the States.
MARITIME CONSIDERATIONS.
The application of the navy pension laws to
the officers and seamen of the revenue marine
service, and the adoption of a system of re-
wards in the form of medals of honor to be
giyenfOr notable acts of bravery to keepers
and crews of life-Saving stations are recon-
mended. The Secretary also recommends
that the erection of public buildings should be
limited to suchIas are mperatively demanded
by the necessities of the public service, and
where suitable temporary accommodations
cannot be provided at a reasonable cost. Af
ter detailing the work performed by the SUI
pervising Architects Office and compliment
ing its head anil his assistants, the Secretary
says
Theigreat extent and rapid increase the COM
rnerce of the port of New York, where are COL
lected about sixty-seven per cent. of all The
duties levied on imported goods, has already
rendered the Custom Iiouse accommodations
there quite insufficient. With the certain in
creast of business which this port must attain in
the future, and with the prospect of its becom-
ing Ihore and more an exchange center Tor
other countries, it is a matter of the first
Importance to select, at early day site for
new Custom House larger scale, together
with the buildings needed in connection there
with, where the situation, convenience, and ae-
eomIaodatlons will be adequate to the require
ments and worthy of the position of This great
mart The expense of erecting the building may
well be extended over a series of years. he
present Custom House lot may be sold 10 adyant-
age. when no longer required in part reimburse
menttof the expense / earnestly commend this
subieht to the Consideration of Congress.
The report concludes with reeommenda-
ton for further legislation in relation to the
Louisville and Portland Canal.