Year: 1869

Dg year the dDlllLy 10 pay increases III
a rapid rati but the burden of inter
est ought to be reduced as rapidly a.
can be done without the violation o.
contract. The public debt is repre-,
sented in great part by bonds having
from five TO twenty and ten to forty
years to run, bearing interest at the
rate of six per. cent and five per cent
respectively. 1t is optional with the
government to pay their bonds at any
period after the expiration of the last
time mentioned upon their face. The
time has already expired when great
portion of them may be taken up,
and the time Is rapidly approaching
when all may be it is believed thai
all which are now due may be re-
placed by bonds bearing a rate of in
terest not exceeding four and One-half
per cent, and, as rapidly as the re-
mainder becomes due, that they may
be replaced in the same way. To ac-
complish this it may be necessary to
authorize the interest to be paid at
either of the three or four money CEN
tres of Europe, or by an Assistant
Treasurer of the United States, at the
option of the holder of the bond.
suggest this subject for the considera-
tion of Congress also, simultaneous
! y with this, the prOpriety of redeem
ing our currency, as before suggested,
at its market value at the time the
law goes into effect, Increasing the
rate at which currency will be bought
and 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 tax and internal taxa
tion will necessarily receive your at
tentiOn. The revenues of the country
are greater thatth requirements, and
may with safety be reduced; b t as
the funding of the debt in four or a
four and one-half per cent. would re-
duce the annual currant expenses
greatly, thus after funding justifying
a greater reduction of taxation, these
would be now cxpedient. l suggest a
pOstpOnement of the question until
the next meeting of Congress. It
may be advisable to modify taxation
and the tariff in instanc, s where un-
just or burdensOme determinations
are made by the present laws, but a
general revision of the laws regulat-
ing this subject, l recommend the
pOstponement of for the present. 1
also suggest the renewal of the tax on
incomes, but at reduced rate, say of
three per cent, and this tax to expire
i'm three years, with the funding of
the national debt as here suggested.
| feel safe in saying that the taxes
and revenue from imports may be re-
duced safely from sixty to eighty
millions per annum at once, and still
further reduced from year to year.


The Freedmen, under the prOtec-
tion which they have received, are
making rapid progress in learning,
and no complaints are heard of the
lack of industry on their part when
they receive fair remuneration for
their labor.


The report of the Secretary of the
Treasury shows the receipts of the
for the fiscal year ending
June 80, 1869, to be 1870, ,943, TAI, and
the expenditures, including interest,
bounties, &C., to be 1921 ,490, ,597. The
estimates for the ensuing year are
more favorable to the Government,
and will no doubt show large de-
crease Of the public debt. The re-
ceipts in the Treasury beyond eXpen-
ditures 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 contraction of cur
rency as to cripple trade and seriously
affect the prosperity of the country.
Under these circumstance the Secre-
tary of the Treasury and myself
heartily concurred in the prOpriety of
using all the surplus currency in the
Treasury in the purchase of govern
ment bonds, thus reducing the inter-
est bearing debt of the country, and
of submitting to Congress the question
of the disposition to be made of the
bonds so purchased. The bonds now
held by the Treasury amount to about
seventy-five millions, including those
belonging to the sinking fund. /
recommend that the whole be placed
to the credit of the sinking fund.


Your attention is respectfully invit-
ed to the recommendations of the
Secretary of the Treasury for the
creation of the office of Commission of
Customs and Revenue for the in
crease of salary to certain classes OF
officials, and the substitution of the


increased national bank circulation to


replace the outstanding three per cent


certificate; and most especially to his


recommendation for the repeal of all


laws allowing shares of fines, penal


ties, fOrfeitures, &C., to officers of the


Government or infOrmers. The office


of Commissioner of Internal Revenue


is one of the most arduous and


responsible under the Government


If falls little, if any, short of a Cabi-


net position in its importance and re-


spOnsibilities. / would ask for it


therefore, such legislation as in your
judgment will place the Office on q
footing of dignity commensurate with


its Importance, and with the character
and qualifications of the class of men


required to Hit properly.


As the United States is the freest OI


all nations, so, too, its people sympa'


thiZe with all people struggling fol


liberty and self-gOvernment; but


while sympathizing, it is due to Oul


honor that we should abstain from en-
| forcing our views upon unwilling ma
! tiOns, and from taking an interested


part, without Invitation, in the quar-
rels between different nations or be-
/ tween governments and their sub
jects. Our course should always be in
conformity with strict justice anC
law, international and local. Such


has been the policy of the admins
tration in dealing with these ques
tons for more than a year. A valua
BILE Province of Spain, and a nea


neighbor of ours i'm whom all our peO
pie cannot but feel a deep interest


has been struggling for independence


and freedom. The people and the


Government of the United States en-


tertain the same warm feelings anC


sympathies for the eOple of Cuba il


their pending struggle that they man


ifested throughout the previous strug


gle between Spain and her former col


Onies in behalf of the latter, but th'


cantest at no time assumed the cOndi
tiOns which amount TO war in th'


sense of international law or which


would show the existence of a de


factO political organization of the in


surgents sufficient to Justify a recOg