Year: 1869

practicable moment consistent with a


fair regard to the interests of the debto,


class. Immediate resumption, If prac


table, would not be desirable. II would


compel the debtor class to pay beyond


their contracts the premium on gold al


the date of purchase, and would SC


bring bankruptcy and ruinto thousands


Punctuation, however, in the paper val.


ue oil the measure of all values, gold, IL


detrimental to the interests of trade. II


makes the man of business an invol un.


tary gambler, for in all sales, where fu.


ture payment is to be made, both par.


ties speculate as to what will be the


value of the currency TO be paid and
received. l earnestly recommend to
you then such legislation as will insure
gradual return to specie payments
and put an immediate stop to fluctua.
tions in the value of currency. The


methods to secure the former of these
results are as numerous as are the spec.


uiators on political economy. Isee but
one way, and that is to authorize the
treasury to redeem its own paper at a
fixed price whenever 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 citi-
zen has endured for six years past. The
entire public debt could be paid in ten
years, but it is not desirable that the
people should be forced to pay it in
that time. Year by year the ability to
pay increases in "A rapid rate, but the
burden of interest ought to be reduced
as rapidly as can be done without the
violation of contract. The public debt
is represented in great part by bonds
having from five to twenty and from
ten to forty years to run, bearing INFER
est at the rate of six per cent. and five
per cent. respectively. 1t is optional
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 a
great part of them may be taken up,
and 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 one-half per cent and as rapid.
ly as the remainder become 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 three or four of the money cen
tres of Europe, or by any Assistant
Treasurer of the United States, at the


option of the holders of the bonds. l
suggest this subject for the considera.


tion of Congress also simultaneously


with this, the propriety of redeeming
our currency, as before suggested, at
itsmarket value, atthe 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 interestas the Government
pays upon its bonds.


The subject of the tariff and internal
taxation will necessarily receive your
attention. The revenues Of the country
are greater than the requirements, and
may with safety be reduced; but as the
funding of he debt in q four or four
and q lal { nor oa N Ioo, x,,ool,l .ol,oo
the annual current expenses largely,
thus, after funding, justifying a greater
reduction of taxation, this may be re.
duced safely from sixty to eighty mill
ions per annum at once, and may be
still further reduced from year to year
as the resources OF the country are de-
veloped. The report of the Secretary
of the Treasury shows the receipts of
the Government for the fiscal year end
ing June 80, 1869, to be 1870, ,0i3, ,747 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 much larger decrease
of the public debt. The receipts in the
Treasury beyond expenditui es have ex-
ceeded 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
would lead to such a con.
traction of the currency as to cripple
trade and seriously affect the prosperi-
ty of the country. Under these circum-
stances the Secretary o. the Treasury
and myself heartily cOncurred in the
of using all the surplus cur
rency in the Treasury in the purchase
Of government bonds. thus reducing
the interest bearing Indebtedness of the
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 $4,000, 900, Including
those belonging to the Sinking Fund. /
recommend that the whole be placed to
the credit of the Sinking Fund. Your
attention is respectfully invited to the
recon- mmendations OF the Secretary of the
Treasury for the creation of the office of
Commissioner of Customs Revenue, for
the increase of salary to certain classes
Of officials and the substitution of in
creased national bank circulation to re.
place the outstanding three per cent.
certificates, and most especially to his
for the repeal OF laws
allowing shares Of fines, penalties, for
feitures, etc, TO officers Of the Govern
ment and to informers.


The Office of Commissioner of Internal
Revenue is one of the most arduous and
responsible under the government. 1t
falls but little, If any, short of Cabin
ct position in its importance and res.
possibilities. / would ask for 1t, there
fore, such legislation AS in your judg-
ment will plnce the Office upon foot
ing of dignity commens urate with its
importance and with the character and