Year: 1869

baton, and then close the work of re.
construction.


i Among the evils growing out of the
rebellion, and not yet referred to, il
that OF an irredeemable currency. II
is an evil which I hope will receive
your most earnest attention It is O
duty-one of the highest of the du-
ties OF the Government to secure to
the citizens q medium exchange of un-
varying value. This implies return
to specie basis, and no substitute for
it can be devised. It should be COM
menced now and reached at the earli-
est practicable moment, consistent
with fair regard to the interest of the
debtor class. Immediate resumption,
il practicable, would not be desirable.
It would compel the debtor class to
pay beyond their contracts the premi-
um on gold Mt the date of their pur-
chase, and would bring bankruptcy
and ruin to thousands. Fluctuation,
however, in the paper value of the
measure Of all value (of gold) is detrf
mental to trade. It makes the man of
business IN involuntary gambler, for
IN all sales, when future payment is
to be made, both parties speculate as
to what will be the value of the curren-
cy when paid and received. I earn
estly recommend to you scuh legisla.
ton as will insure q gradual return to
specie payments, and put an immedi-
ate stop to fluctuations in the value of
the currency. The methods to secure
these results are as numerous as are
the speculations on political economy.
To secure the latter see but one way,
and that is to authorize the Treasury
to redeem its own paper at fixed prices
whenever presented to Withhold from
circulation all such currency redeemed
until sold again for gold. The vast
resources of the nation, both develop
ed and undeveloped, ought TO make
our credit the best on earth. With a
less burden of taxation than the citi-
zens has endured for six years past,
the entire public debt could be paid In
ten years but it is desirable that the
people should not be taxed to pay it in
that time. Year by year the ability to
pay increases in rapid ratio, but the
burden of interest ought to be reduced
as rapidly as can be done without the
violation of the contracts. The pub
llc debt is represented in great part by
bonds, having from FIVE to twenty and
from twenty 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
last mentioned upon their face. The
time has already expired when a great
part of them may be taken mp,
and the time is rapidly approaching
when all may be. 1t is believed that
all which are now due may be re-
placed by bonds bearing rate of in
terest not exceeding four and 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 interest to be paid at either
of the three or four money centers of
Europe, or by any Assistant Treasurer,
at the option of the holders of the
bonds. recommend this subject for
the consideration of Congress. Also
simultaneously with this, the proprie-
ty of redeeming our currency as before
suggested. at its market value at the
time the law goes into effect; increas-
ing the rate at which currency will be
bought or sold from day to day or
week to week, at the same rate of in
terest as the Government pays upon
its bonds.


The subject of tariff and internal
taxation will necessarily receive your
attention. The revenues of the coun-
try are greater than the requirements
and may with safety be reduced butas
the funding of the debt in four or four
and half per cent. bonds would re-
duce the annual current expense large
ly, and then, after funding, justify q
greater reduction of taxation than
would be now expected. I suggest the
postponement of this question until
the next meeting of Congress, when it
may be advisable to modify taxation
and the tariff in instances where un-
just or burdensome determinations are
made by the present laws. But gen.
eral revision of the laws regulating
this subject, I recommend the post
poncment for the present. also sug-
gest the renewal of the tax onincomes,
but at reduced rate, say three per
cent, this tax to expire in three years.
With the funding of the national debt,
I feel safe in saying that the taxes and
revenue from imports may be reduced
safely from go to 80 millions per an
mum at once, and still further reduc-
ton from year to year, as the resorces
of the country are developed.


FINANCES.


The report of the Secretary of the
Treasury shows the receipts of the
Government for the fiscal year ending
June 80, 1860, to bc 1910, ,943, TAT, and
the expenditures, including interest,
ETC., to be 1921 ,490 ,597. The esti-
mates for the ensuing year are more
favorable to the Government and will,
no doubt, show large decrease of the
public debt. The receipts in the treas
ury beyond expenditures have exceed
ed the amount necessary to place to
bne credlt W the SINKING Iund, as pro-
vided by law. To lock up the surplus
In the treasury and withhold It from
circulation would lead TO such con-
traction of the currency as to cripple
trade and seriously affect the pros
poets of the country. Under these cir
cumstancea, the Secretary of the Treas
ury and myself heartily concurred in
properly using all this surplus curren-