Year: 1865

y
of the first quarter Of the present hsca'
year, of the probable receipts and expen-
ditures for the other three quarters, and
the estimates for the year following the
Both of June, 1866. / might content
myself with reference to that report, in
which you will find all the information
required for your deliberations and deci-
sion. But the paramount Importance cf
the subject SO impresses itself upon my
mind, that cannot but lay before you
my views of the measures which are re-
Juired for the good character, and,
might almost say, for the existence of this
people. The life of republic lies GER
tainly in the energy, virtue and intelli-
gence of its citizens; but it is equally true
that good revenue system is the life of
an organized government, | meet you at
time when the nation has voluntarily
burdened itself with debt unprecedented
in our annals. Vast as is its amount, i;
fades away to nothing when compared
with the countless blessings that will be
conferred upon our country and upon man
by the preservation of the nations life.
Now, on the first occasion oi the meeting
of Congress since the return of peace, it is
OF the utmost Importance to inaugrrate
just policy, which shall at once BE- put in
motion, and which shall commend itself
to those who come after us for is CONT
nuance. We must aim at nothing less
than the complete efacement OF the finan
cial evils that necessarily followed state
of civil war. We must endeavor TO APP
ply the earliest remedy to the deranged
state of the currency, and not shrink from
devising a policy which, without being
oppressive to the people, shall Immediate
ly begin to effect reduction of the debt,
and, if persisted in, discharge it fully
within definitely fixed number Of years.


NATIONAL CURRENCY.


1t is our first duty to prepare in earnest
for our recovery from the ver-increasing
evils of an irredeemable currenty y, without
sudden revulsion, and yet without un-
timely procrastination. For that end, we
must, each in our respective positions,
prepare the way hold it the duty OF
the Executive to insist upon trugality in
the expendtures-and IA sparing economy
is itself great national resource. OF
the Banks 10 which authority has been
given to issue notes secured by bonds of
the United States, we may require the
greatest moderation and prudence. and
the law must be rigidly enforced when it,
limits are exceeded. We may, each one
OF us, counsel our active and enterprising
countrymen TO be constantly on their
guard, to lquidate debts contracted on a
paper currency, and, by conducting bust
ness as nearly as possible on a system of
cash payments or short credits, to hold
themselves prepared to return TO the
standard of gold and silver. To aid our
fellow-citizens in the prudent management
of their monetary atf,ir-, the duty de-
wolves on us to diminish by law the
amount of paper money, now in circua,
tion. Five years ago the bank note cir
cnlation OF the country amounted to not
much more than two hundred millions :
| NV wv tiiNuibliOli, Ddllh anu IldllDlil.
exceeds seven hundred millions. The
simple statement of the fact recommends
more strongly than any words of mine
could do, the necessity of our restraining
tins expansion. The gradual reduction
of the currency is the only measure that
can save the business of the country from
disastrous calamities; and this can be al
most imperceptibly accomplished by gra-
duallv funding the national circulation in
securities thar may be made redeemuble
at the pleasure of the Government.


THE NATIONAL DEBT


Our debt is doubly secLre-first in the
actual wealth and still greater uudevcop-
! ed resources of the country and next in
the character of our institutions The
most intelligent observers among political
economists have not failed to remark, that
the public debt of Il country is safe in pro-
portion as its people are free; and that
the debt of a republic is the safest of all
Our history confirms and establishes the
theory, and is, firmly believe, destined
to give it more signal illustration. The



secret OF this superiority springs not mere.
~ from the fact that in republic the
national obligations are distributed moro
widely through numerous numbers in all
classes eff society; it has its roo, ia the
character of our laws. Here all mer
contribute to the public welfare, and bear
their fair share of the public burdens -
During tho war, under the impulses oi
patriotism, the men of the great body OF
the people, without regard to their own
comparative want of wealth, thronged to
our armies and filled our fleets of war,
and held themselves ready at a moments
notice 10 offer their lives for the public
good. Now, in their turn, the property
and income of the country should bear
their just proportion of the burden oI
taxation, while in our import system,
through means of which increased vital.
ity is impaired TO all the industrial inter
ests of the nation, the duties should be
so adjusted as TO tall most heavily on ar.
ticles OF luxury, leaving the necessaries OF
life AZ free from taxation as the absolute
wants of the Government, economically
administered, will justify. No favored
class should demand freedom from assess-
ment, and the taxes should be so distrib.
uted as not to fall unduly or the poor. but
rather on the accumulated wealth of the
country. We should look at the national
debt just rs it is--not as national bles.