The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1874-12-18

sufficient period shoHEda elaEsss e enable the
people and banks to prepare for the latter by
such gradual processes in business as will
neither lead to violent contraction IN credit
and values, nor suddenly increase the obliga
tions Of debtors. The time should not in the
opinion of the secretary be extended beyond
three years, and might safely be made as much
less as in the judgment OF CONGRESS would
sufficiently protect the interest OF debtors and
avoid the evils OF too sudden connection
. The law shouid also authorize the imme-
date conversion Of legal-tender notes into
bonds bearing a low rate of interest, which,
while inviting conversion, should not be so
! high as to appreciate the legal-tender notes
rapidly, and thereby operate oppressively on
/ the debtor class AS an additional inducement
/ to the conversion of United States notes into
these bonds at a low rate OF intel est, authority
/ should be given for making them security for
| the circulation of national banks The law
/ should further provide the means for the re-
| demption OF such notes as may be presented
| for that purpose when the period of resump-
| ton shall have been reached To this end the
/ secretary should be authorized TO make loan
not exceeding the total amount of notes
naming uIlcOnverted at the time of resump-
! ton, less the surplus revenue. to be made
| applicable to such resumption. 1t Is probable
| that the gradual aud continued revival Of
| business VIII so far Increase the revenues that
a large loan viii not be required for this pur-
! pose but it is advisable that the secretary be
| authorized to make it in order to meet the
| contingency of failure of sufficient surplus
re .enues. Such a loan should be made by is
| suing bonds to run for such time the Wis
| dom Of congress may suggest, and to be dis
| posed of from time to time as the necessities
! of the case may require. In the opinion of
the secretary, these bonds should run for
! long period and should bear interest at a rate
not exceeding the lowest rate which the gov
eminent may then be paying in refunding It's
six per cent. securities. Any substantial or
useful movement for resum ption necessarily
| involves supplying the treasury with increased
! amounts OF coin, either by increased revenues
| or an adequate loan. The present condition
| of the credit of the government, which would
be further enhanced by the adoption of meas
ures for return to a specie basis, leaves no
room for doubt that loan for such purpose
| would be readily taken at a lew rate of inter
est. Measures should also be adopted requir-
ing the banks to hold gold reserves prepare
| tory to resumption on their part.
''But the secretary does not deem it proper
! to pursue the matter into further detail. If
congress shall conclude, as he earnestly hopes
it will, that the time has arrived for the enact
ment of law having for its object resump-
ton of specie payments, its own wisdom will
supply the necessary methods. That which is
Of the highest Importance is the adoption Of a
definite policy for resumption. When the gov
eminent shall have resumed specie payment,
it may be expected that gold will flow into the
country in obedience to the law of supply and
demand; the export OF our gold product viii
greatly diminish and the millions Of gold
which now constitute only a commodity Of
trade will resume its proper functions by be-
coming again part of the circulating medium.
With the adoption Of the policy of resumption,
free banking may be safely allowed, and the
deficit of the actual amount Of coin available
for circulation can be supplied by bank notes
convertible into coin, in lieu of an incOnvert-
IDLE paper currency
The business Of the country has not yet
recovered from the disasters of the last year 5
financial panic, the causes of which is by no
means difficult to trace. 1t was the direct and
| TnS171t M GaV6lOTD-
ment OF speculative enterprises, over-trading
and initiation of credit which invariably follow
large issues of incOnvertible paper currency.
The almost bOundlees resources and energies
Of the country must compel the gradual re-
establishment of business, but capital, with its
accustomed sensitiveness to danger. is slow
to return to the avenues of trade. Values are
| HuctuatIng and uncertain Labor receives Its
| reward in q currency that is unsteady, and
| whose purchasing power changes almost daily.
Neither the reward OF labor nor the value
of commodities is measured by any certain
standard.
- he enactment of a law having for its
| purpose the substitution of a sound and sable
medium of exchange for an irTedeemable pa
per currency viii tend to restore confidence,
and thus cause a revival Of industries and
general business.
"There will be no better time in the
future to enter upon the work of returning
to specie basis, and the secretary feels that
he cannot too strongly urge the adoption of
the measures he has indicated. or such Others
as will more certainly lead to the desired end. y
ECONOMY RECOMMENDED.
The secretary recommends rigid economy 10
| public expenditures.
NATIONAL BANKS
After calling attention to various changes
needed in the national banking system, the
| report says that the facts AID figures furnished
by the comptroller of the currency fully estab-
lish the conclusion that there is a large
amount of currency in excess of the legitimate
needs of business, which would servo to dis
nal FolIa hat nQTc GgO
rency is the proper remedy for the general
depression and contraction Of the volume OF
business
REVENUE FROM CUSTOMS.
Under this heading. the secretary TINS
squints at re-establishing the duties on tea
and coffee: ''On the importatiOns Of coffee
in 1878, the rate of three cents per pound
would have yielded nearly $4,000, 900 and two
cents per pound almost Sc, 600 000- The record
of foreign prices for coffee tends strongly to
the conclusion, making due allowance for the
effect of short crops on prices, that the duty
| repealed by the act of 1872 was added to the
selling price abroad, with no advantage to con-
sumers here, while the country as a whole,
has paid more than before for the entire stock.
The repeal of the duty on tea caused little or
no reduction of prices to consumers here, but
an increase of prices abroad"
INTERNAL REVENUE.
| The receipts from internal revenue were
$114, 075 456 06 in 1873 and S102. ga, SO IN
1874 falling of of 81, 43O. 7O91O, which IS
attributed to various causes. The suggestion
of the commissioner of internal revenue that
the taxes now collected by stamps on bank
checks matches, perfumery, cosmetics, etc,
may be abolished, and compensation made
therefor by increasing the tax on spirits ten
cents per gallon, Is commended to the con-
sideratiOn Of congress. By making this change
the items of internal taxation would, the SEC
rotary thinks, be considerably reduced, and
the system simpGfed without loss Of revenue.
EXPORTS AND IMPORTS.
The total excess of expo rts of merchandise
specie and bullion, over i'm ports of the same
was S57, 052, 1900 during the past fiscal year
COTTON CLAIMS.
OF the claims that have been presented to
the department, $50 have been submitted for
decision. and acted on follows
Continued for further evidence and still
under examination. Observation-Disclosures. 1S8
Allowed -.---.......-... 70
OF the aggregate number Of claims pre-
scented there remain. not yet fully prepared or
submitted for final decision. 696 The claims
allowed as aforesaid we're for the proceeds of
], 346 bales, ana the amount paid out on such
claims is Sl33, 01S.27.
There remains in the treasury SIC, 495. S33. "a
on this account, against which claims to the
amount of S36 S34, 07S.04 have been fled. It
is submitted for the consideration of congress
that the treasury department is not suitable
tribunal for the ultimate decision of such
claims. They belong properly, the secretary
power to ascertain the truth, and are better
organized for this purpose than an executive
department of the government.
The Value of Brains.