Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-12-08
NATIONAL FINANCES.
Annual Report of the Secretary
of the Treasury.
Legislation for the Resumption
of Specie Payments StrOn-
Iy Recommended.
But 1t is a Matter of Time, and
We Must $50 Slow

After showing the total receipts and ex
penditures for the past fiscal year, ending
| June 80, 1873, to have been S453, 365, 56S.3S
and 1902, 6S3, S73. 76, respectively, leaving q
balance in the treasury Of $50, % ], 1914. SO
at the date named, and that the net reve-
nues were S2S9, AIS, 1896, while the ordina-
~ expenses were 1921, 133, S73. 20, leaving a
surplus revenue of s., "a, $3.50, the Secre-
tary says:
"For the current fiscal year, Judging
from the actual receipts and expenditures
for the first quarter, and from the estimates
of the same for the remaining three quar-
tiers, the estimates being based on the as
sumption that Congress will not increase
the expenditures by deficiency or other ap-
propriations, it is expected that the reye-
nues will amount to S2S4,31S, 2S5.99, and
that the ordinary expenses will be S275,-
315, 1892; which will leave a surplus rev.
enue of $1,000, 1857 to be applied to the
sinking fund.
"The sum of $3I,096,545 will be re0uir-
ed under the law for this fund, and, there
fore, unless the revenues shall increase
beyond the amount anticipated, there will
be deficiency in the sinking-fund account
for this year of So, 093, 74S 49,"
1t is estimated that the receipts for the
fiscal year ending June so, 1876, will be
1926, 900, 900, and the ordinary expenditures.
$272,77S,000. On this point the Secretary
remarks: 'sShould these estimates of the
revenues and expenditures prove to be an
proximately correct, there will be a surplus
of revenue of about $20,222,0OO. The
amount necessary for the sinking fund is
not included in the above estimates of ex-
o,,I 20 IL s., "a IL 4.
$32, ,914 will be required. The surplus
revenues which can be applied to this fund
GO, 220, OOO) will be insufficient to the ex-
tent of S11 ,92O, 914, and there will therefore
be a deficiency Of that amount.
During the past fiscal year, the public
debt has been reduced S., 1852, 447.65
The Secretary here gives history of the
negotiations by which S55,000,0O0 of the
public debt was refunded at per cent.
Resumption of Specie Payment.
This, the most important topic touched
upon in the report, is deliberately and ably
treated. The Secretary says:
"TO attempt an enumeration of the COM
plicated mischiefs which flow from an un-
stable or inconvertible currency would
carry this report to inexcusable length, and,
after all, would be but a repetition of what
has been often said. No nation can long
neglect the wholesome maxims, founded
upon universal experience, that uphold
public credit without suffering financial
disturbances and bringing serious conse-
quences upon its people. 1t will not be de-
MED that the existing issue Of legal-tender
notes, as circulating medium, would never
have been made except in the great emer-
gency OF a war involving no less an issue
than the preservation Of the nation.
Whether the argument in support of the
validity of the legal-tender acts be rested
upon the war powers conferred on the Gov
eminent by the Constitution or on other
provisions Of that instrument, it is clear
that Congress could not have been induced
to pass such acts under any other circum-
stances than in a time of the most pressing
and urgent need, such as a state of war only
produces. The most earnest defenders of
the power to issue government obligations,
and make them by law legal-tender for all
debts, public and private, would scarcely
be found to advocate the exercise of the
power except under circumstances of ex-
treme necessity, and then only for the time
of the emergency; and there is abundant
evidence in the debates and proceedings of
Congress, and in the statutes themselves,
that II was not intended to make the legal
tender notes the permanent currency of the
country. The acts authorizing the issue of
such notes provided for their conversion
into bonds of the United States bearing in
terest at the rate Of six per centum per an
mum.
"The act of March IS, 1869, in terms de-
clares that the faith of the United States
is solemly pledged to the payment in coin
or its equivalent of all obligations of the
United States not bearing interest, known
as United States notes. The same act
further afirms that the United States
solemnly pledges its faith to make pro-
vision at the earliest practicable period for
the redemption Of the United States notes
in coin.
"The purpose of the act is well expressed
in its title, which declares it to be AN act
to strengthen the public credit and that
such was the effect of the act cannot be
doubted, for it is an unconditional assur-