The Portland daily press., 1874-12-08
WASHINGTON.
Reports Of the Secretary Of the
Treasury.
Receipts and Expenditures.

treasury.
Receipts and Expenditures.
WASHINGTON, Dec. 1.-THE Secretary of the
Treasury estimates that for the current fiscal
yeDr the revenue of the government will amount
to 1924, 31S, $780, 80, aud that the ordinary eX-
penses will be 1926. 3l5, 498 AZ, which win leave
surplus remaining of $9002,796 81 to be APP
piled to the sinking fund. There will, however,
be deficiency in the sinking fund account for
this year $22, 092, 748.43.
For the fiscal year ending June 30, 1876, he
estimates the revenue will be 1898 100000, and
the expenditures $272, 778, 900, leaving surplus
revenue in excess of expenditures of $40. 220,-
600 to be applied to the sinking fund, which
will be insufficient to the extent of $11020, 914
Specie Payments.
Concerning the resumption of specie pay
ments, the Secretary says: So much has been
spoken and written within the last decade, es-
pecally at the last session of Congress, ON the
financial question, relating to and growing out
of our currency system, that further extended
discussion of the subject at this time would
scarcely seem to be necessary. The opinions
entertained and expressed by public men aud
communities of people, as well as the sense of
Congress as heretofore indicated by votes of the
two Houses, must be accepted as one of the
factors of the financial problem. Nevertheless
the great and paramount importance of arriv
ing at an ultimate solution of the matter, ami
OF restoring to the government and the people
a sound and stable currency, induces the Sec
rotary to bring the subject again to the atten-
ton Of Congress, and to ask that decisive steps
be now taken by the law making power for
return to specie basis.
To attempt an enumeration of the complcat-
ed mischiefs which flow from an unstable cur
reucp, would carry this report to iuexcusable
length, and after all would be but repetition
of what has been often said. No nation can
long neglect the wholesome maxims founded
upon universal experience that upholds public
credit without suffering financial disturbance
and bringing serious consequences upon its peo-
pie. 1t will not be denied that the existing
issue OF legal tender notes as a circulating me-
dunn would never have been made except in
the great emergency of a war, Involving no less
an issue than the preservation of the nation.
Whether this argument in support Of the valid
ity of the legal tender acts be rested upon the
war powers conferred upon the government by
the Constitution, nor on other promises of that
instrument it is clear that Congress could moi
have been induced to pass such acss under any
other circumstances than in time of the most
pressing and urgent need such as state of
war only produces.
The most earnest defenders of the power to
issue government obligations and make them
by law legal tenders for all debts, public and
private, would scarcely be found to advocate
the exercise of the power except under circum-
stances of extreme necessity, and then only
for the time of the emergency, and there is
abundant evidence in the debates aud proceed
ings of Congress, and in the statutes them
selves that was not intended to make the legal
tender notes the permanent currency of the
bountry. The acts authorizing the issue of
such notes provide for their conversion into
bonds of the United States bearing interest at
the rate OF six per cent. per vnnum.
The act of March LIST, 1860, in terms declare
that "the faith of the United States is solemnly
pledged to the payment in coin or its equiva'
lent Of all obligations of the United States not
bearing interest, known as United States
notes." The act further sffirms that "the
United States solemnly pledges its faith to
make precision at the earliest practicable pc
Rod for the redemption of the United States
notes in COIN"
The purpose of the act is we'll expressed in
its title which declares it to be ian act to
strengthen the public credit and that such
was the effect of the act cannot be doubted, for
it is an unconditional assurance on the part of
the government, not only that its notes shall
be paid in coin, but that this shall be doue at
the earliest practicable period. The faith of
the government could not be more clearly or
absolutely pledged than is done by this act of
Congress, to say nothing of the previous legis-
alton.
The length of time has now elapsed since
the final overthrow OF the rebellion, as well as
proper regard for the faith of the nation adj
monish us that the initiatory steps towards
the redemption OF its pledges ought not to be
longer postponed. 1t is not unworthy of re-
mark that the era Of the war will not be closed
until the period of redemption shall have beeu
reached.
1t is sometimes urged by the advocates of a
continuance of our paper circulation, that its
amount being now definitely fixed by law, it is
not liable to the fluctuations in volume which
attaches to a currency that may he increased or
diminished at the will of the Secretary; but this
suggestion leaves out of view entirely the fact
w
to change the volume of currency rests, the DIFF
ference being only in the degree of probability
ofits use. The existence of the power at all
and the apprehension Of its being called into
consequences are likely to flow. The quality Of
fiexibility governed by the law of trade and
commerce, and which regulates the increase or
diminution Of the volume Of the circulating
medium according to the requirements of legi-
innate business, is Of value; but that which is
controlled by the legislative will and may de-
pend upon party exigencies or the supposed
necessities of the Treasury, or the demands of
speculative enterprises, is Objectionable in the
highest degree. Such currency is liable to
sudden and violent expansion or contraction,
having no necessary connection with the legiti-
mate demands of trade and commerce.
In country like ours, with varied industries
and extensive commercial relations among it's
different sections and with other nations and
peoples, stability of the circulating medium is
".
which necessarily enters largely into CONNER
cial transactions, can only be steady and secure
when it has for its foundation stable curreney,
The quality of stability in money attaches only
to coin, which. by common consent of man
kind is the vertble into it at the will of the
holder, the truth will be understood and acted
upon.
1t is obvious that there can be no resumption
by the government SO long rs the volume of
paper currency is largely in excess of the poss-
Bile amount OF coin available for that purpose
which may come into the Treasury in any year,
and while no provision is made for the CONVEX
sion of this paper money into anything having
a nerer relation to coin; nor is it possible for
the banks or the people to resume so long as
the large amount of irredeemable paper now in
circulation continues to be by law legal tender
for all private debts with reference both to the
lasts gold will continue to flow from MS, and
find employment where the natural laws of
trade uEobstructed by restraining legislation.
make its daily use Indispensable
The Secretary, therefore, recommends Con-
gress to provide by law that after an early and
fixed day United States notes shall cease to be
legal tenders as to contracts thereafter made.
But this provision should not apply to official
salaries or to other ordinary expenditures of
the Government under then existing contracts
or appropriations. Between the day thus to
be fixed and the time of final resumption a
suff Gent period should elapse to 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-
tons of debtors. The sudden and immediate
appreciation of the paper dollar to its par
value in gold is not only no necessary element
of redemption, but, as far as practicable, should
be avoided. The time should not, in the
opinion of the Secretary, be extended beyond
three years, aud might safely be made as much
less as in the Judgment of Congress would
SnfficiantlV nrntect the intarests Of dehtors and