Year: 1866

Secretary McCul1och on the Finances.


Secretary McGulloch, being on a recent
visit to bis native New England, was invi
ted to dine with the solid men of Boston.
The letter failed to reach him till after bis
return to Washington; but on the 18th ul.
timo he responded, showing why he could
not accept, and speaking of the national
finances as follows: .,.. a.a.,


"Although it was hoped that ere this the
currency of the country would have been
brought nearer to the specie standard, I Iam
sure the people have cause for cougratula.
ton that our finances are in 80 healthy q
condition as they are. :.


"Sinoe March, 1866, the war has been
brought to successful conclusion immense
armies have been disbanded ; every soldier
has been paid before being mustered out Of
the service all maturing obligations of
the Government have been satisfactorily
provided for, while the national debt is
nearly $25O,0OO,0O0 less than it was esti.
mated it would be at the present time, and
the reduction of it has averaged, for the
past year, more than SO, 900, 900 per
month IF no other nation ever rolled up
debt so rapidly, none certainly ever COM
menced the reduction of its debt so soon af-
ter its creation. If our currency ls depre.
ciated. We have so far escaped the financial
troubles that usually occur among nations
at the close of expensive wars, and which
there was reason to apprehend would hap
pen to us at the termination of the great
war in which We have been engaged If
the business of the country is conducted
upon changing and uncertain basis, it has
been subjected to no severe reyulsions. If
our taxes are heavy, our resources are al.
most unlimited, while the disposition of the
people to bear eheerfully their burdens, is
a surprise even to those who have the
greatest confidence in the honor and good
faith of free people. In my opinion, the
people of the United States are to make
republicanism illustrious among the nations
by establishing the fact that the securities
of republican Government are the safest
of all securities, and that the people who
impose taxes upon themselves are the most
jealous of their national credit.


I do not, however, disguise the fact that
great financial difficulties are still to be over.
come; that our present prosperity is rather
apparent than real; that We are measuring
values by false standard; that We are, in
fact, exposed to all the dangers which at
tend an inflated and irredeemable currency,
which diminishes labor--the true source of
national wealth-and stimulates specula.
tions and extravaganza, which lead invari-
ably to thriftlessuess and decentralization.
Before the country becomes again really
prosperous, the specie standard must be re.
stored, prices reduced, industry stimulated,
the products of the country increased, the
balance Of trade between the United States
and other nations cease to be against us
all the great interests of the country cared
for and protected BY wise and impartial
legislation, and all sections Of the country
to be brought again into harmonious and
practical relations with the General Gov
ernment. ~


That the country will be again thus real.
ly prosperous is as certain as. anything in
the future. That it should be so at an ear.
ly day, and that, too, without financial
crisis, it is only necessary that there should
be proper Legislation by Congress, economy
in the public expenditures, and fidelity on
the part of those who are entrusted with
the management of the public revenue.


Trusting that you will pardon me for
writing 40 long letter in acknowledging