Year: 1869

part ny bOndS, having from live to twenty
and from ten to forty years to run, bear.
ing interest at the rate of six per cent.
and five per cent respectively. The time
has already expired when a great part
of them may be taken up, snd the time
is rapidly approaching when all may be.
1t is believed that all which arc now due
may be replaced by bonds bearing rate
of interest not exceeding 1.2 per cent.
and as rapidly as the remainder becomes
due that they may be replaced in SINH
lar way. To accomplish this il may be
necessary to authorize the interest to be
paid at either Of the three or four of the
money centers Of Europe or by any As
sistant Treasurer of the United States.
at the option Of the holder of the bond
l suggest this subject for the considera.
tion of Congress also simultaneously
with this the propricty of rcdeeming our
currency as before suggested, at its
marke: value at the time the law goes
into effect, increasing the rate at which
currency will be bought and sold from
day to day or from week to week, at the
same rate of interest as the government
pays upon its bonds.





alton will necessarily receive your attcn-
tiCn. The revenues of the country are
greater than the requirements and may
with safety be reduced, but as the fund
ing of the debt in four and half per
cents would reduce the annual current
expenses and thus justify a greater re-
duction of taxation than would be now
expedient, | suggest the postponement of
this question till the next meeting ct
Congress. 1t may be advisable to modify
taxation and the tariff in instances where
unjust or burdensome determinations are
made. But as to the general revision of
the laws. recommend, we postpone this
subject for the present. also suggest
the renewal Of the tax on incomes, but
at reduced rate, say 3 per cent, and
this tax to expire in three years, with
the funding of the national debt as here
suggested. | feel safe in saying the
taxes and revenue from imports may be
reduced Safely sixty to eighty millions
per annum at once, and still further re-
duced from year to year as the resources
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, 500, to be S37O, O,043, ,747, and the ex-
Denditures, including interest, bounties,
&c, to the $32l ,4aO,597. The estimates
for 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 amount
necessary to place to the credit of the
sinking fund as provided by law. TO
lock up the surplus in the treasury and
withhold it from circulation would lead
to such contraction of currency as to
cripple trade and seriously affect the
prosperity of the country. Under these
circumstances, the Secretary of the
Treasury and myself heartily concurred
in the propriety of using all the surplus
currency in the treasury in lhe purchase
OF Government bonds, thus reducing the
interest bearing debt Of the country, and
of submitting to Congress the question
of the disposition to be made of the bonds
so purchased. The bonds now held by
the Treasurer amount to about S75, ,OOO,-
600, including those belonging to the



whole be placed TO the credit OF the sink
ing fund.


Your attention is respectfully invited
to the recommendations of the Secretary
of the Treasury for the creation of the
Office of Commissioner of Customs aud
Revenue, for the increase of salary OF
certain classes Of officials and the subsli-
tuition of an increased National Bank
circulation to replace the outstanding
three per cent. certificates, and most es-
pecia!ly to his recommendations for the
repeal of the laws allowing shares of
fines, penalties, torteitures, &C., to officers
of the Government or iuionners.


The Office of Commissioner of Internal
Revenue is one of the most arduous and
responsible under the Government. 1t
falls uut little, if any, shot Of Cabinet
position i'll its importance and RESPONSE
bility. | would ask for it, therefore, such
legislation as in your judgment will place
the office on a footing Of dignity COM
mensurate with its importance, aud with
the character and qualifications of the
class of men required to fill that position
properly.


AS the United States is the frecst of
all nations, so, too, its people sympathize
with all peoples struggling for liberty
and selt-governmtnt. But while so sym
pathizing, it is due TO oar honor that we
should abstain fir pm enforcing our views
upon unwilling nhLious, and from taking
an interested part "without invitation,"
i'll the quarrels bqween different nations,
or between governments and their sub
jects. Our cour4 4e should always be in
conformity with strict justice and law,
international and local. Such has been
the policy OF the Administration in deal
ing with these questions.


For more than a year a valuable prov
ince of Spain has been struggling for in
dcpence and freedom. Our government
and people enterthin the same warm feel
ings and sympathics for the people Of
Cuba in their pending struggle that they
manifested throughout the previous
struggles between Spain and former col
onies, in behalf OF the latter. But the
contest at no time assumed the conditions
which amount to war in the sense Of
international law, or which would show