Year: 1869

| reDelliOn ana not yet TeltIItu W. 10 eno'
of an irredeemable currency. 1t is an
evil which 1 hope will receive your
most earnest attention. It is o duty
and one of the highest duties OF the
Government to secure to the citizens a
medium of exchange of fixed, unvary-
ing value. This implies return to
specie basis, and no substitute for Id can
bedevised. 1t should be commenced
now and reached at the earliest practi-
cable moment consistent with fair
regard to the interest of the debtor
class. Immediate resumption, if prac-
| ticable, would net be desirable. Ii
would compel tho debtor class to pay
beyond their contracts, the premium on
gold at the date of their purchase,
and would bring bankruptcy and ruin
to thousands, FluctuatiOn, how
ever, in the paper value of the measure
of all values, gold, ia detrimental to the
interests of trade. 1t makes the man
of business an involuntary gambler, for
in all sales where future payment is 10
be made both parties speculate as to
what will be the value OF
the currency to be paid and
received. earnestly recommend TO
you then such legislation as will insure
a gradual return to specie payments,
and put an immediate stop to huctua
tion in the value Of currescy. The
methods to secure the first of these re-
suits are as numerous, as are the specula
tors on political economy. To secure the
latter l see but one way, and that is
to authorize the Treasury to redeem
its own paper at fixed price whenever
presented and to withhold from circula-
tion all such currency redeemed until
sold again for gold.


FUNDING THE BONDS AND REDEEMING


THE CURRENCY.


The vast resources of the
nation, both developed and un-
developed, ought to make our credit
the best on earth. Even with less bur
den of taxation than the citizens have
endured for six years past, the entire
public debt could be paid in ten years,
but it is not desirable that
the people should now 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 oau be done without the
violation. of contract. The public debt
is represented in a great part by bonds
having from five to twenty and from
ten to forty years to run, bearing inter
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 tie expiration of
tho first time mentioned upon their
face. The time has already expired
when q great part of them may be
taken up; the time is rapidly approach
ing when all may be. Is is believed
that all which are now due may be re-
placed by bonds bearing rate of in
terest not exceeding four and one. half
per cent, and as rapidly as the remain
der becomes due, that they may be re-
placed in the same way. To accomplish
this, il may be necessary to authorize
the interes; TO be paid at either of the
three or four money centres 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 Con-
gress; also simultaneously with this,
the propriety of redeeming the cur
rency, as before suggested, at its mar
ket value, at the time the law goes into
effect, increasing the rate at which the
currency will be bought and sold from
day to day, or week to week, at the
same rate of interest as the Government
pays upon its bonds.


TARIFF AND TAXATION.


The subject of tariff and internal tax
alton will necessarily receive your at
tcntion. The revenue of the country is
greater than the requirements and may
with safety be reduced, but as the fund
ing Of the debt in four or four and q
hslf per cent. would reduce the an.
unGl current expenses largely, thus,
atce7 funding, justifying a greater
red duction of taxation than would be
now expedient, l suggest the post
ponement of this question until the next
meeting of Congress. 1t may be advi.
sable TO modify taxation aud tariff in
Instances where unjust and surdensone
Determinations are made by the present
laws, but a general revision of the laws
regulating this subject | recommend
the pOstponement of for the present.
| also suggest the renewal of the
tax on incomes, but at q reduced
rate, say of three per cent, and
this tax to expire in three years. With
the funding of the national debt, as here
suggested / feel safe in saying that the
taxes and revenues from imports may
be reduced safely from sixty to
eighty millions per annum ut
once and still further reduced from
year to year as the resources of the
country are developed.


THE SURPLUS RECEIPTS.


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 S370,9i3,7l7, and the ex-
lpenditures, including interest, bounties
&c, to be S32l, ,49O,597. The estimates
for the ensuing year are more
favorable to the Government, and will
no doubt, show large decrease of the
public debt. Tue receipts in the
Treasury beyond the expenditure:
have exceeded the amount necessary tc
be placed to the credit of the sinking
fund, as provided by law. To lock NJ
the surplus in the Treasury and with
draw it from circulation, would
lead 10 such contraction of the currency
as to cripple trade and seriously affect
the prosperity of the country. Under
these circumstances the Secretary o
the Treasury aud myself heartily con
Cured in the propriety of using sill the
surplss currency in the Treasury in the
purchase of government bonds, thus re
ducing the interest bearing debt of the
country, and of submitting TO Congress:
the question Of the disposition to be
mass Of bonds so purchased. The
bonds now held by the Treasury amount
to about $4,000, 900, including those
belonging to the sinking fund. recon-
mend that the whole be placed to the
credit of the Sinking Fund.


sUNDRY RECOMMENDATIONS.


Your attention is respectfully invited
to the recommendations of the Secretary
of the Treasury for the creation of the
office of Commissioner of Customs
Revenue, for the increase of the salary
of certain classes of officials and the
substitution of an increased nationa,
bond circulation to replace the out.
standing three per cent certificates, and
most especially TO his recommendation
for the repeal of the laws allowing