The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1874-12-24
NATIONAL FINANCES.
Annual Report OF the Secretary of the
Treasury.


ditures for the past fiscal year, en1inR June
80, 1873. 70 have been S453, 865 SOS SO and
$500, 936. S73.76 respectively, leaving a balance
in the treasury OF Si5e, 79I, 69l.63, at the date
named, and that the net revenues were S2S9,-
478 756O6. while the ordinary expenses were
S2Sl l38.Sf3.76 leaving a surplus revenue OF
S2,344, Ss2 80, the secretary 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-quarters the
estimates being based on the assumption that
congress viii not increase the expenditures by
deficiency or other appropriations, it is eX-
pected that the revenues will amount to 1924 -
BIS. 25s SO, and that the ordinary expenses will
be S275,3l5, 1892; which win leave a surplus
revenue OF $1,000, 1861 to be applied to the
"The sum Of S31. Oo6. 545 will be required
under the law for this fund, and therefore
unless the revenues shall increase beyond the
amount anticipated there will be deficiency
in the sinking fund account for this wear OF
S22 093, 1888"
It is estimated that the receipts for the fs-
cal year. ending june 80 1876, viii be s293, =
600, 0OO and the ordinary expenditures sop,
77s 900. On this point the secretary renarls /.
should these estimates Of the revenues and
expenditures prove to be approximately cor
rect, there VIII be a surplus OF revenue OF
about $50, 222, 900. The amount necessary for
the sinking fund IL not included in the above
estimates OF expenditures, and to provide for
u tho sum OF S32, 140 9t4 viii be required.
Ihe surplus revenues which can be applied TO
this fund GO 900 00O) Will be insufficient to the
extent OF ell. 900. 9l4, and there Will therefore
be deficiency OF that amount.
During the past fiscal year. the public debt
has been reduced S6,762, 447.65.
Inc secretary here gives n history or the ne
gotiations by which s55 OO0. 900 Of the public
debt was refunded az 8 per cont.
RESUMPTION OF SPECIE PAYMENT.
This, the most important topic touched upon
IN the report, IL deliberately and ably treated.
The secretary saws:
10 attempt the enumeration OF the cem-
plioated mischiefs which flow from an unstable
or inconyertible currency would carry this re-
port to inexcusabie 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
suuering financial disturbances and bringing
serious consequences upon its people. It will
not be denied that the existing Issue Of legal
tender notos, as circulating medium, would
never have been made except in the great
emergency OF war involving no less issue
than the preservation Of the nation. Whether
the argument In support OF the validity Of the
iegal-tender acts DO rested upon the war pow
ers conferred on the government by the con-
stituuon OF on other provisions Of that instru-
ment. II Is clear that congress- could not have
been indnced to pass such acts under auy other
circumstances than in time Of the most
pressing and urgent need, such as state OF
war only produces. The most earnest defend
ers OF tho power TO issue government obliga-
tons, and make Thorn by law legal-tender for
all debts, public aud private would scarcely be
found 10 advocate the exercise OF the power
except under circumstances Of extreme neces-
sity, and then only for the time of the elner-
gencv; and there 70 abundant evidence in tho
debates and proceedings OF congress, and in
the statutes themselves, that it was not in
tended to mako tho logal-tender notes ths
permanent currency of the country. The acts
authorizing the issue OF such notes provided
for their conversion into bonds of the United
states bearing interest at the rate Of six per
contum per annum.
Tho act of March IS. 1869, in terms de-
clares that the faith of the United States is
solemnly pledged to the payment in coin or it's
equivalent OF all obligations of the United
States not bearing interest, known as United
States notes. The same act further aftirms
that the United States solemnly pledges its
faith TO make provision at the earliest praoti-
cable 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
Tor u IL an unconditional assurance on the
part Of the government, not only that its notes
shall be paid in coin but that this shall be
done 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 previous
Legislation.
1.-THE length Of time that has now elapsed
hiAloo NAio LAhl ONeltnfOW OF the rebellion,
we'll az proper regard for the faith of the ma
ton, admonish us that initi story steps towards
the redemption OF its pledges ought not to be
longer postponed. IL is not unworthy OF re-
mark that the era OF the war will not be closed
until the period OF redemption shall have been
reached.
80 In a country like ours, with varied indus
tries and extensive commercial relations
among its different sections and with other ma
tons and peoples, stability OF the circulating
medium is Indispensable to the general pros
perity. Credit, which necessarily enters
largely into commercial transactions can only
DO steady aud secure when it has for its
foundation stable currency. The quality OF
stability in money attaches only to coin, which,
by common consent OF mankind, is the me-
dunn OF exchange, and to a paper currency
representative Of coin, because CONVEX tIble
into Il at the will OF the holder The reason
IL obvious; for coin, besides being recognized
throughout the the world a medium OF ex-
change, has a high intrinsic value, can be
procured only by labor and in limited Quanti-
ties which cannot be increased by statuatorv
laws, nor suddenly by other means, while in
convertible paper money may be produced in
indefinite quantities at a nominal cost a note
OF tho highest denomination costing no more
than tho lowest aud it's volume depending
solely on Legislative enactment.
dollar lega-tendor note, such as is now
IN circulation, Ia neither moro nor less than
the promise OF the government to paw dollar
20 the bearer, while no express provision be
made by law for paying the dollar at any time
Whnteyeri nor Is there any existing provision
for converting il into anything that stands in
a tangible ratio to COIN dollar As far as
existing laws go, there is no reason why the
legA-tender note OF the denomination OF a
dollar should pass for one cent OF gold, except
40 Tar As the government compols creditors to
accept Il in discharge OF obligations to paw
money, aud obhges the wealth and commerce
OF the country to adopt IL "a medium of OK
change. To this may be added as an element
OF tho value Of the legal-tender dollar, the
hope that the government will sometime or
other redeem its paper promises according TO
their import Tho universal use OF, and re-
nance upon, such a currency tends to blunt
tie moral sense aud repair the natural self
dependence OF the people, aud trains them to
the belief that the government must directlv
assist their individual fortunes and business,
help them in thor personal affairs, and enable
them to discharge their debts by partial paw
mont. This inconvertible paper currency be-
gots the delusion that the remedy for private
pecuniary distress Ia in Legislative lneasurea
and makes the people uumindful Of the fact
that tho true remedy ia in greater production
and lesa spending. and that real prosperity
comes only from individual effort and thrift
When exchanges are again made in coin or la
a currency convertible into il at the Will of the
holder, this truth viii DO understood and acted
upon.
' It is obvious that there can be no resump-
ton 10y the government so long AZ the volume
OF paper currency is largely in excess OF tho
possible amount OF coin available for that pur-
pose which may come into tho treasury in any
SNssAf anu NAlAb no provision II made FOR tine
conversion OF this paper money into ANYTHING
having nearer relation 10 coin nor Is IL pos
sihle for the banks o. people to resume SO
long as the largo smount Of irredeomnble pa
per now IN circulation continues to be bv law a
lega-tondor for all private debts with refer
enoe both to the past and the future. While
this state Of things lasts gold will continue to
How from us, aud find employment where the
natural laws Of trade, unobstructod by retrain-
BILE.
" The secretary, therefore, recommends CON
greSs to provide by law that after an early aud
uNed day United States notes shall cease to be
legal tender as to contracts thereafter made
But this provision should not apply to official
salaries or 70 other ordinary expenditures OF
the government under then existing contracts
or appropriations. Between tho dav thus to
DO liked aud the time OF final rcsumpsou a
Huihoent period should elapse to enable the
people and banks to prepare for tho latter bv
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 time should not in the
opinion OF the secretary, be extended beyond
three years, and might safely be mado as much
iOss in the INDIGNANT Of fDf,rraaa yror,fN