Year: 1869

these results are as numerous as are
the spectators on political economy
To secure the latter, l see but one way,
and that is to authroize the Treasury to
redeem its own paper at fixed price
whenever presented !; to withhold from
currency redeemed until sold again for
gold. The vast resources of the nation
both developed and undeveloped ought
to make our credit the best on Garth.
With less burden Of taxation than the
citizen 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 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 redacsd
as rapidly as can be done without the
violation of the contract. The public
debt is represented in great part by
bonds, having from FIVE to twenty and
and from ten to forty years to run, bear
ing interest at the rate of six per cent
respectively. It 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 q good
part Of them may be taken up. The
time is rapidly approaching when all
may be. It is believed that all which
are now due may be replaced by bonds
bearing rate of interest not exceeding
four and half per cent, and as rapidly
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 the three of four of the money CEN
ters Of Europe; or by any Assistant
Treasurer of the United States at the
option of the holder Of the bond.
suggest this subject for the consideration
Of Congress; also simultaneously with
this, the propricty of redeeming our
currency as before suggested, at its mar
ket value, at its market value, at the
time the law goes into effect, increasing
the rate 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 on its bonds.


The subject of the tariff and internal
taxation will necessarily receive your at
tention. The revenues of the country are
greater than the requirements, and may
with safety be reduced, but as the funding
Of the dept in four or four and hall
per cent. loan would reduce the annual
current expense largely. thus, after fund
ing justifying greater reduction of tax
alton than would he now expedient ]
suggest postponement of this question
until the next meeting of Congress. /,
may be advisable to modify taxation and
tariff in instances where unjust or burden
i some determinations are made by th<
present laws, but general revision of the


laws regulating this subject, recommend


the postponement of for the present.


i also suggest the renewal Of the tax or


incomes, but to reduced rate. say of


per cent, and this tax to expire in thre,


years, with the funding of the nationa


dept, as here suggested.


| l feel safe in saying that the take.


and revenue from imports may be reduc


ed safely from sixty to eighty million.


per annum at once, and still further re
duced from year to year, as the resource.


of the country are developed.


| The report of the Secretary of the
Treasury shows the receipts of the Gov
ernment for the fiscal year ending june


80, 1869, to be $37G,943,747, and the
expenditures, including interest, ETC., to


be 1921 ,49O, ,597. The estimates fol
the ensuing year are more favorable to
the Government, and will, no doubt
), show large decrease of the public debt


The receipts in the Treasury beyond the


Expenditures have exceeded the amour,


necessary to place to the credit of the


sinking fund as provided by law. tt


lock up the surplus in the Treasury


and withhold it from circulation. would
} lead to such contraction of the cur
rency as to cripple trade and seriously
affect the prosperity of the country
! Under these circumstances the Secretary
of the Treasury and myself heartily con


Cured in the propriety of using all ths
surplus currency in the Treasury in tn.
!, purchase of Government bonds, thus re
ducing the iuterest-bearing debt of tn.
country, and of submitting to Congress
the question of the disposition of tho
bonds SO purchased. The bonds nov


held by the Treasury, amount to abou
SIS, 900, 900, including those belonging
to the sinking fund. recommend thai
the whole be placed to the credit Of thu
sinking fund.


Your attention is respectfully invited
to the recommendations Of the Secretary
Of the Treasury for the creating Of the


Office of Commissioner of Customs Rev


enue, for the increase of salary to Ger


tain classes of officials, and the substitu


tion of an increased national bond cir.
culation to replace the outstanding three
per cent. certificates, and most especially
to his recommendation for the repeal Of
the laws allowing shares of fines, penal.


ties, forfeitueres, etc., to officers Of the
Government, or to informers.


The Office of Commissioner of Internal


Revenue is one Of the most arduous and
responsible under the Government. II
falls but little, if any, short of a Cabinet
position in its importance and response.
bilities. I would ask for it, therefore,
such Legislation as in your judgment
I, will place the Office on footing Of dig.
nifty commensurate with its importance
and with a character and qualifications
Of the class of men required to fill il
properly.


i As the United States is the freeest of
all nations, SO, too, its people sympathize
with all people struggling for liberty
and self-gOyernment; but, while SO sym.
pathizing, it is due to our honor that we
should abstain from enforcing our views