Year: 1865

ey-Ttme Required for the Paymen


of the National Debt


Owing to the extreme length of the Re
: port of Hon. Hugh McCulloch, Seeretar,


of the Treasury, we were compelled {,
: omit its publication entire A synopsis


embracing the main statistical information
appeared in our telegrapbic columns OF


Wednesday morning. We append somt
interesting extracts, showing the position


of the Secretary on the important subject
of contracting the CURRENCY, and also 8


calculation as to the length of time requir-


ed for paying the national debt:


FINANCIAL LEGISLATION.


The right of Congress, at all times, tc


borrow money and to issue obligations for


loans in such form as may be convenient,


is unquestionable; but their authority to


issue obligations for a circulating medium


as money, and to make these obligations a


legal tender, can only be found in the un-


written law which sanctions whatever the


representatives of the people, whose duty


1t is to maintain the government against


its enemies, may consider in great emcr-
gency necessary 20 be done. The present
| legal tender acts were war measures, and


while the repeal of those provisions which


made the U nited States notes lawful mon


ey is not now recommended, the Secretary


is of the opinion that they ought not to
| remain in force one day longer than shall


be necessary to enable the people to pre-
pare for return to the constitutional


currency. 1t is not supposed that it was


the intention of Congress, by these acts,


to introduce standard of value in times
of peace, lower than the coin standard,


much less to perpetuate the discredit


which must attach to q great nation which
dishonors its own obligations by unneces-
sarily keeping in circulation an irrcdeem-
times, been regarded as the province of
Congress to furnish the people directly
with money in any form. Their aUthori-
ty is ito coin money and fix the value
thereof; and, rs mixed currency con-
sisting of paper and specie has been
found to be a commercial necessity, it
would seem also to be their duty to pro-
vide, as has been done by the National
Currency act, that this paper currency
should be secured beyond any reasonable
contingency. To go beyond this, however,
and issue government obligations, making
them by statute a legal tender for all debts,
public and private, is not believed to be,
under ordinary circumstances, within the
scope of their duties or constitutional
powers.


The reasons which are sometimes urged
in favor of United States notes as a per-
manent currency are, the saving of interest
and their perfect safety and uniform value.


OBJECTIONS TO UNITED STATES NOTES.


The objections to such a policy are, that
the paper circulation of the country
should be flexible, increasing and decreas-
ing, according to the requirements of le-
gitimate business, while, if furnished by
the Government, it would be quite likelysi
to be governed by the necessities of the
Treasury or the interests of parties, rather
than the demand of commerce and trade
Besides, permanent Government cur
rency would be greatly in the way of pub
lie economy, and would give to the party
in possession of the Government, power
which there might be strong temptations to
use for other purposes than the public
bookkeeping the question of the cur
rency constantly before the people as a |





would be more injurious to business.


But the great and insuperable objection, |
as already stated, to the direct issue of |
notes by the government, as a policy, is |
the fact that tho geroEnmont of tho United |
States is one Of limited and defined pow
ers, and that the authority to issue notes |
as money is neither expressly given to Con-
gress by the Constitution, nor fairly to be |
inferred, except as a measure of neces-
sity in great national exigency. No |
consideration of a mere pecuniary charac-
ter should induce an exercise by Congress
of powers not clearly contemplated by the |
instrument upon which our political fab
ric was established. The government, in
the great contest which has been recently |
closed has not sought to increase its own |
powers, nor to interfere with the rightful |
powers of the States. The questions de-
cided by the war are, that the Union is in |
that whatever is essentially op-
posed to it must be removed that the fed |
eral authority, within its proper sphere, is
supreme; and that the validity Of acts of |
Congress is not to be determined by the |
States, but by that tribunal which the
complex character of the government |
made a necessity. 1t is the crowning glory |
of the Constitution that this great war has |
been waged and closed without the powers
of the government being enlarged or its
relations to the States being changed.


NO LONGER NECESSARY.


The issue of United States notes as law
full money was measure expedient, doubt
less, and necessary in the great emergency
in which it was adopted; but this emer-
gency no longer exists, and however de-
sirable may be the saving of interest, and |
however satisfactory these notes may be
as a circulating medium, these considera-
tions will not, it is respectfully submitted |
Justify a departure from that strict con- |
of the Constitution given to it |
previous to the war by patriotic men of |
all parties, and which is essential to the |
equal and harmonious working of our |
peculiar institutions. The strength of the |
Government has been shown by the man-
ner in which it has carried on the greatest
war of modern times; it only remains, for
the vindication of its excellence
and the perfection of its triumphs,
that all powers exercised for its
but not expressly granted
by the constitution, be relinquish-
5d wIUH Une rUturn- of feeaeS- While, there
fore, the Secretary is of the opinion that
the immediate repeal of the legal-tender
provisions of the act referred to would be
lnwise, affect injuriously the legitimate
business of the country, upon the prosper
ity of which depends the welfare of the
people and the revenues which are neces-
sary for the maintenance of the national
credit, and unjust to the holders of notes,
be is of the opinion that not only these
provisions of the acts also should be re-
garded q only temporary, and that the
work of retiring the notes which have
been issued under them should be COM
menced without delay, and carefully and
continued until all are retired


In speaking of the legal-tender acts,
reference has only been made to those
which authorized the issue of United
States notes. The interest-bearing notes
which are legal tender for their face
value were intended to be a security rather
than circulating medium, and it would
be neither injurious to the public nor an
act of bad faith to the holders, for Congress
to declare that, after their maturity, they
shall cease to be legal tender, while such
a declaration would aid the government
in its efforts to retire them, and is there
fore recommended.


The rapidity with which the govern
ment notes can be withdrawn will depend
upon the ability of the Secretary to dispose