Year: 1869

| currency 10 De PAID ana received. L earn
estly recommend to you, then, such legis-
lation as willinsure a gradual return to
| specie payments, and put an immediate
| stop to fluctuations in the value OF the
currency. The methods to secure either
of these results are as numerous as arc the
spectators ON political economy. To Sc
cure the latter, l see but one way, and that
| is to authorize the Treasury to redeem its
own paper at fixed price whenever pre-
sented; to withhold from circulation ali
such currency redeemed until sold again
for gold The vast resources of the ma
tion, both developed and undeveloped,
ought to make our credit the best on
earth With less burden of taxa
ton than the citizen has 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. Year by year the ability to pay in
! creases in rapid ratio, but the burden of
interest ought to be reduced as rapidly as
can be done without the violation of con
tract. The public debt is represented in a
great part by bonds having from five to
twenty and from ten to forty years to run,
bearing interest at the rate of six per cent.
and five per cent. respectively. 1t is Op
tional with the Government to pay these
bonds at any period after the expiration of
the least time mentioned upon their face.
The time has already expired when good
part of them may be taken up. The time
is rapidly approaching when all may be.
1t is believed that all which are now due
may be replaced by bonds bearing a rate
of interest not exceeding four and half
per cent. and as rapidly as the remainder
becomes due that they may be replaced in
the same way To accomplish this it may
be necessary to authorize the interest to be
paid at either of the three or four Of the
money centres of Europe, or by any AS
sistant Treasurer of the United States, at
the option of the holder of the bond. |
suggest this subject for the consideration
of Congress; also simultaneously with
this, the propriety of redecming our cur
rency as before suggested, at its market
value, at the time the law goes into effect,
increasing the rate at which the currency
will be boughtand sold from day to day or
week to week at the same rate of interest
as the Government pays upon its bonds.


The subject of the tariff and internal
taxation will necessarily receive your at
tention. The revenues of the country are
greater than the requirements, and may



of the debt in four or a four and half
per cent. loan would reduce the annual
current expense largely, thus, after fund
ing iustifying greater reduction of tax
alton than would be now eXpedient, |
suggest postpOnement of this question
until the next meeting of Congress. 1t
may be advisable to modify taxation and
tariff in instances where unjust or burden
some determinations are made by the
present laws, but a general revision of the
laws regulating this subject, recommend
the postponement of for the present.


also suggest the renewal of the tax on
incomes, but at reduced rate, say of 3
per cent, and this tax to expire in three
years, with the funding of the national
debt, as here suggested.


l feel safe in saying that the taxes and
revenue from imports may be reduced
safely from sixty to eighty millions per
annum at orce, and be still further reduced
from year to year, as the resources of the
country are developed.


The report of theSecretary of the Treas
ury shows the receipts Of the govern
ment for the fiscal year ending June 80,
1869, to be $370, ,943, TAT, and the expendi-
lures, including interest, ETC., to be $321,-
490,597 The estimates for the ensuing
year are more favorable to the govern
ment, and will, no doubt, show large de-
crease ofthe public debt The receipts in
the Treasury beyond expenditures have
exceeded the amount necessary to place to
the credit of the sinking fund, as provided
by law. To lock up the surplus in the
Treasury, and withhold it from circulation,
would lead to such a contraction of the
currency as to cripple trade and seriously
affect the prosperity of the country. I'm
der these circumstances the Secretary of
the Treasury and myself heartily con-
CURED in the propriety OF using all sur
plus currency in the Treasury in the pur-
chase of government bonds, thus reducing
the interest bearing debt of the country
and of submitting to Congress the ques-
ton of the disposition to be made of the
bonds so purchased. The bonds now held
ono, including those belonging to the sink
ing fund. | recommend that the whole be
placed to the credit of the sinking fund.
Your attention is respectfully invited to
the recommendations of the Secretary of
the Treasury for the creating of the office
Of Commissioner of Customs Revenue ;
for the increase of salary to certain classes
of officials; and the substitution of in
|
place the outstanding per cent. certifi-
Gates, and more especially to his recon-
mendation for the repeal of laws allowing
shares of fines, penalties, forfeitures, ETC.,
to officers of the government, or to in
| formers.


The office of Commissioner of Internal
Revenue is one of the most arduous and
responsible under the government. 1t falls
] but little, if fany, short of aCabinet position
III it's importance and responsibilities.
would ask forit, therefore, such legislation
as, in your judgment, will place the office
on footing of dignity commensurate with
its Importance, and with character and
qualifications of the class of men required
to fill it properly.


AS the United States is the freest of all
nations so, too, its people sympathise with
all people struggling for liberty and self
government; but while so sympathising,
It is due to our honor that We should alb
stain from enforcing our views upon IN
willing nations, and from taking an inter.
! ested part, without invitation, in the quar-
rels between different nations or be.
| tween governments and their subjects


Our course should always be in conform
ity with strict Justice and law, internation-
al and local. Such has been the policy OF


the administration in dealing with these


questions. For more than year vain


able province of Spain and a near neigh


Dor of ours, in whom all our people can


not but feel deep interest, has been strug.


Cling for independence and freedom.


The people and government of the


United States entertain the same warm


feelings and sympathies for the peo


nle of Cuba in their pending strup