Year: 1869

Secretary Boutwell,, in his communica-
ton to Congress, plumes himself on the
large reduction of the national debt Du-
ring the fiscal year ending June 80, 1869,
the excess of receipts ever expenditures
was in round numbers fifty millions of dol
lars, three-fourths of which accumulated
during the first four months of his term of
Office. The receipts for the first quarter of
the current fiscal year are already over
twenty-three millions in excess of the ex-
penditures, and it is estimated that the ex-
cess for the three remaining quarters will
be over seventy millons-making a total
saving of ninety three millions for the fs-
cal year ending June 80, 1870 An esti-
mate for 1S7O-71, based upon the contin-
ued operation of the present laws, prom
ises an excess of one hundred and two
millions.


In the matter of a resumption of specie
payments, Secretary Boutwell, points out
the conditions prerequisite to the restora-
ton of our paper currency to a specie
standard. In the first place he remarks
that the ability of the country to resume
will not be due to any special legislation
upon the subject, but to the condition of
its industries and to its financial relations
to other countries. We must develop
these industries that ouEszports shall be
substantially equal to our imports. In the
next place the diffusion of the currency
over the South in the progress of its recu-
peration from the prostration of the war,
and to the Western. States and California,
where paper is likely to take the place OF
gold, viii tend to diminish the difference
between paper and coin. He fayors mild
policy of contraction, but touches the sub
ject with an evident desire that it may not
be done with any risk of commercial dis
| aster. He confesses that the exact wants
of the nation as to the amount of paper
currency are problem, the solution OF
which he leaves to be determined when
prior and more Important issues have been
settled. He only favors contraction be
cause he inclines to the belief that the vol
ume of the currency, with restoration, OF
| specie payments, is more than sufficient
for the business requirements of the coun-
try. He also deems it unwise to resume
while so large portion of the national
debt Is held abroad by European mer-
chants and bankers, whose investment in
our national securities would only induce
| their reshipment to secure the profits OF
| the rise. On the other hand, a steady pro-
gress Of specie payments, while rendering
the foundation of the national debt more
| stable, would tend to render these, foreign
| Investments permanent and prevent the
danger of panic such as occurred IN Eu-
rope IN 1866, when upon the outbreak Of
the Austro-Prussian war there was gen.
eral sending home of the different national
/ bonds. He desires that when the country
does resume there shall be no backshdina
into suspension. In fine, In the language
Of his report, 8 the practical question is not
merely the resumption of specie payments
as measure by itself, but the problem is
to resume under such circumstances that
the position can be maintained, not only
IN times Of tranquility, but also in periods
OF excitement and peril In discussing the
details which are to assist in paving the
way for resumption he dwells upon the
necessity for taking steps to revive and
develop our commercial marine, and inge-
nlously proves the important part which
the extent of our shipping interests play II
modifying the balance of our foreign trade
The voyage of every American vessel is 6
bill OF exchange IN our favor. In funding
the national debt Secretary Boutwell,
thinks 1t will be necessary to deal with the
! hye-twentles only, and with $l,200,000,-
600 only of the whole loan ahoat Of thi:
class. He recommends that the new bond!
| be divided into three hams Of $400 900, ,00C
each, The nIRt TedeeR17hls in fftesn *
twenty years, and the Econd IN twenty t
twenty-five years, and the third in twenty
five to thirty years that the principal anC
interest be made payable in coin expressly
that the ive-twenties shall be received il
exchange for them; that the rate of inter
est shall not exceed four and one-half PEI
cent; that the interest shall be payable IL
European cities as the subscribers to thu
loan may elect, and finally that the new
bonds shall be exempt from all taxation
1t Is doubtful whether the last condition
will meet with popular sanction, inasmucl
as the public tendency is to exact an equa
distribution of the burSen of taxation. Il
alluding to the evils of the national bank
ing system it points out the unjust dis
elimination which those institutions max,
in lending their funds on pledge of stock
IN preference to accommodating the mer
chant, thus fostering speculation at tn,
expense of legitimate business, and sug
gests the remedy. 1t remains to be seel
whether the predictions of the Secretary O
the Treasury will be fulfilled The above
however, constitute the main features o


his report.