Year: 1869

such legislation as will insure gradu.
al return to specie payments, aud put
an immediate stop to tho fluctuations
in tho value of currency. Tho meth.
DDS 10 secure tho former of these re-
suits arc as numerous as spectators
on political economy. TO secure the
latter, | sec but one way; aud that is
to authorize the Treasury to redeem
its own paper at a fixed value when.
ever presented, and withhold from
circulation NIL currency so redeemed
until sold again for gold. The vast
resources Of the nation, both develop
ed and undevelopcd, ought to make
our credit the best OF earth. With
less burden of taxation than the citi-
zen has endured for the six years past,
the entire public debt could be paid
in ten years, but it is not desirable
that the people should 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
without q violation Of contract. The
public debt is represented in great
part by bonds having from one to for
ty-hve years to run, bearing interest
ut the rate Of five and six per cent.
respectively. 1t is optional with the
Government to pay these bonds ut any
period of the least timo mentioned
upon their face. The time has alrca.
dy expired when great part may be
taken i'll, aud rapidly approaching
when it may we'll believed that ali
which are now due may be replaced
by bonds bearing q rate Of interest
not exceeding four and half per
cent, as as rapidly as the remainder
become duo they may be replaced in
the same way. TO accomplish this it
may be necessary to authorize the in.
terest to be paid at either Of the three
or four money centres of Europe, or
by any Of the assistant trcasurers Of
the United States, ut the option Of the
holder of the bond. 7 suggest this
subject for tho consideration of Con-
gress, and also simultaneously with
this tho propriety of redecmiug our
currency, rs before suggested, al its
market value at tho time the law goes
into effect, increasing tho rute at which
currency will be bought and sold, from
day to day or week TO week, at the
same rate of interest as the Govern
ment pays upon its bonds.


The subject Of tariff and internal
taxation will necessarily receive your
attention. The revenues of the ooun.
try are greater than tho requirements,
and may, with safety, be reduced but
as the funding of the debt in a four
or four and half per cent. loan
would reduce the annual current ex.
penaes largely, thus, after funding
jnstifying creator reduction Of taxa
tion than would now be expcdient, I
suggest a postponement of this ques-
tion until the next meeting of Con-
gress.


1t may be advisable to modify taxa
tion and tariff in instances where un-
just or burdensome determinations are
made by tho present laws; but of
general revision of tho laws regulat.
ing this subject recommend the post.
ponemcnt for tho present.


THE INCOME TAX.


also suggest removal Of the tax
On incomes, but at reduced rate,
and this tax to expire in three years.


CUSTOMS.


With the funding Of the national
debt, as here suggested, feel safe in
saying that tho taxes and revenue
from imports may be reduced safely
from sixty to eighty millions per an.
mum at once, and may be still further
reduced from year to year as tho re-
sources of the country ure developed.
FISCAL STATEMENT OF THE GOVERN


MENr.


The report of the Secretary of the
Treasury shows the receipts of the
Government for the fiscal year ending
June 30th, $370, ,943,747, and expen.
ditures, including bounties, Co., $32i,-
490,597. The estimates for the en-.
suing year are more favorable to the
Government, and will no doubt show d
much larger decrease Of the public
debt. The receipts in tho Treasury
beyond the expenditures have exceed
ed tho amount necessary to be placed
to the credit Of the sinking fund, as
provided by law. TO look up the
surplus in the Treasury and withhold
it from circulation would lead to such
. contraction Of currency as to Grip.
pie trade and seriously affect the
prosperity Of the country. Under
these circumstances tho Seoretory Of
the Treasury and myself hartily con-
Cured in the propriety Of using all
the surplus currency in the Treasury
in the purchase of Government bonds,
thus reducing the interest-bearing in
debtedness Of the country, and of
submitting 70 Congressths Question, Of
tho disposition to be made of the,