Year: 1867

Leave, leave me not forsak0!


Sick and hungry. and in prison,


Save me Crueifed and risen.





From the Cincinnati Gazette.


The Treasury Report.


This is the most important Of all the


executive documents. Johnson's mes


sage is merely a bad breath. This re-


port interests every person, and the
subject has now become one on which


it is thought that political parties can


be pulled down, and Others put in their
places to take their turn in the same


fate. Its importance viii justify the


great space we have given to it, and


any that we may further take in COM


menting on it. In the main we have


not differed with Mr.. Mccullough on


monetary principles, therefore We can
have no controversy with the main
part of his report. We agree with him
IN his view of the evils of an unre-
deemed currency, the evil of the exer-


else of legislative power to make Gov


eminent notes legal tender, the dan


ger of the system of Government issues
of legal tender, paper or currency OF


any kind, and in his view of the pub


lie faith. We agree with him that the


only way to specie payment is by reti-


ring the greenbacks. In this he has


left out one thing which overthreW his


monetary principles in his fist report;


for then he had the common notion


that somehow business would grow up


to the currency, or the expanded busi-


ness needed more money, and there


fore specie payment could be brought


in without great contraction. Now he
affirms that the volume of business is
no greater than when 300 millions of
coin and paper was enough, and he
does not hold out any way to specie
save by contracting the currency. And
there is none.


Our difference with Mr.. Mccullough
was in the application of monetary
situation. The evil Of imitation and of
legal tenders was upon us. We had
about 900 millions of currency of one
sort or another. 1t was deprecated one
half at least. Mr.. Mccullough says
prices in general were three times as
high as before. The Government had
borrowed this deprecated currency,
giving its notes on interest, of which
lnot including the bonded debit it had
outstanding at the close of the war,
], 200 millions. which were received as
payable in that currency. 1t had also
453 millions of greenbacks, which
could be withdrawn at the proper time
by csnoeEng them as they came into
the Treasury. We urgued that the dis
tuIbance of the imitation of prices had |
been done; that the ease of procuring
this currency to pay the debt was IN
proportion to its volume and deprecia-
tion that to contract the currency
enough to come to specie, would re-
duce prices in proportion, and thus
make the dollar two or three times as
hard to come by as before, and thus
really increase the currency debt in
that ratio that the conversion of this
deprecated currency debt into gold
bond was great addition to the debt. |
Therefore We argued that the curren-
cy should be left as it was, and we
should keep up the inflated revenue
which it gives US, and use it to pay this |
debt in its own currency, meanwhile !
exertirg our financial genius to keep |
it out by offering such rates of inter
est as were needed to float it. We show
ed that on this system we paid 200 |
millions on the principle the first year |
after the war closed, and We urged that
so good situation should be let alone.


We also stated our apprehensions
that the project of turning all this debt
into gold bonds, making it necessary
to pay l60 millions of gold interest q
year, added TO the hardships insepara-
bic from the fall of prices by contrac-
ton of the currency, which would drive |
all these bonds to foreign markets,
would break down. And we also ex-
pressed our opinion that the undertak-
ing to carry specie payment on even
two or thee hundred millions Of paper
with 1000 or $500 millions
of gold bonds in Europe suspended
over our money market, was impossi,
BILE. We never countenanced the con-
tinuance of the currency imitation for
its own sake-for the sake of making
money plenty ard priced high; for We
hardly wrote an article on the subject /
thSt did not recognize it as an evil
But we argued that since we had the
and had inflated the debt
upon the same basis, we should contin-
ne the same cheap means. of psymentt
until the obligations payablein curren-
cy were redeemed. We also realized
another thing which Mr.. McCulloch
did not, and does not yet, namely
The great evil of money inhat tion is
.he inevitable necessity OF contraction.
All the seeming wealth created by the
Use of prices must be paid for by a
shrinking of prices. This paralyzes
.rade and brings calamity to all who
ire in debt. Mr.. McCulloch thought
.he rise in prices was the evil, and that
he contraction would be a blessing
sven while it was working. 1t is as if
/ man should think the feeling of am
instead of the relief from
diseased member, the thing to be Jolly
ipon.


Since we began to advocate our poll
" against Mr.. McCulloch's, his opera
ions have changed about GIL millions
,f currency obligations into gold bonds.
The amount of currency obligation now
exclusive Of greenbacks
md fractional currency, is about AL
This is now all that the prin-
.iple of paying the currency debt in /
currency of the same volume can be s
applied to, save the retirement of the ]
IS they come into the Treas {
Try. This is the only object for con- {
inuiug the inflated currency, and ifII
his is not to be achieved, we agree
With Mr.. McCulloch that the contrac- i
ion of the currency should continue j
lntil specie payment comes in by the /
of the notes TO coin, with
ut any forcing. And in this carrying /
ut his policy of making the reiuc- 4
ion of the currency to specie the para i
Mount consideration, regardless Of the G
Increase of the public burdens by Ia
hanging deprecated currency obliga- I
ions to gold bonds, Mr.. McCulloch can r
laim, as he does, the almost unani- e
nous assent of Congress and Of both
arties. His project as stated in his 4
rst report was ruggeder than the pres p
ct, or than he has carried out, and yet '
be House expressed its approval OF it G
y a vote of IA to 6. All these fel- q
,ws who have since invented brilliant n
aper projects, and who are now for G
OnninO contraction and even for an III