Year: 1869

To secure the latter, see but one way.
and that is to authorize the Treasury to
redeem its own paper at fixed price
wherever it is presented, and to withhold
from circulation all currency so redeemed
until sold again for gold.


! The vast resources Of the nation, both
developed and undeveloped, ought to make
our credit the best on earth. With less
burden of taxation than the citizens have
endured for six years past, the entire pub.
lie debt could be paid in ten years, but it
is not desirable that the people should be
taxed to pay it in that time.


REDUCTION OF INTEREST.


Year by year the ability to pay the
debt increases in rapid ratio, but the
burden Of interest ought to be reduced as
rapidly as can be done without the viols.
tion Of contract. The public debt is rep.
resented in great part by bonds having
from FIVE to twenty and from ten to forty
years to run, bearing the interest at the
rate of six per cent. and FIVE per cent re-
spectively. 1t is optional with the Gov.
ernment to pay these bonds at any period
after the expiration of the last time men
toned npon their face. The time has al.
ready arrived when great part of them
may be taken up and is rapidly approach
ing when all may be. 1t is believed that
those which are now due may be replaced
by bonds bearing a rate of interest not
exceeding IL per cent, and as rapidly
as the remainder become due that they
may be replaced in the same way.


THE TARIFF AND INTERNAL TAXATION.


The subject Of tariff and internal taxa.
tion will necessarily receive your attention
The revenues of the country are greater
than its requirements and may with safe
ty be reduced, but as the funding Of the
debt in four or four and one-half per
cent, loan would reduce the annual cur
rent expenses largely, thus, after funding.
justifying a greater reduction Of taxation
than would be now expedient, suggest
postponement Of this question until the
next meeting of Congress. 1t may be ad.
visible to modify the taxation and tariff
in instances where unjust or burdensome
determinations are made by the present
laws but general revision Of the laws
regarding this subject, l would recon-.
mend the postponement for the present


also suggest the renewal Of the tax
on incomes, &c, but at a reduced rate.
say thre per cent, and this tax to expire
in three years with the funding of the ms
tional debt as here suggested.


feel safe in saying that the taxes and
the revenues from imports may be re-
duced safely from sixty to eig ghty millions
per anDum at once, and may be still fur
ther reduced from year to year as the re-
sources of the country are developed,


THE FINANCES


The report Of the Secretary Of tbs
Treasury shows the receipts of the Gov
ernment for the fiscal year ending June
80, 1869, to be s370,943,747, and the
expenditures, including interest, bounties.
&c, TO be 1921 400, ,597.


The estimates for the ensuing year are
are more favorable to the Government.
and will no doubt show much larger de-
crease Of the public debt The receipt:
in the treasury beyond expenditures have
exceeded the amount necessary to place
to the credit of the sinking fund as pro
vided by law


To lock up the surplus in the Treasury
and withhold it from circulation would
lead to such contraction Of the currency
as to cripple trade and seriously affect
the prosperity Of the country.
= Under these circumstances, the Sec.
retary Of the Treasury and myself hearti
ly concuried in the propriety of using ali
the surplus currency in the Treasury in
the purchase of Government bonds, thus
reducing the interest bearing debt OF the
country and of submitting to Congress the
E the question of the disposition to be made
of the bonds so purchased. The bonds
now held by the Treasury amounting to
about s75 100000 including those be.
longing to the sinking fund. I recon-
mend that the whole be placed to the
credit of the sinking fund.


The Office of Commissioner of Internal
| Revenue is one of the most arduous and
responsible under the government. II
falls but little if any short of a Cabinet
position III its importance and responsible.
tiles. would ask for it therefore that
such Legislation as in your Judgment will
place the office on footing of dignity
commensurate with its importance, and
with the character and qualifications OF
the class Of men required to gil it proper
ly.


Tnk CrBAs QUESTION.
AS the United States is the freest OF
: all nations, so too its people sympathize
with all people struggling for liberty ami