Year: 1867

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Your favor of the 30th utimo, inviting me,
In case | should visit New England, to
come to Boston and give you an opportu-
nifty to meet me at dinner to be given at
such day as might designate, would have
received an earlier reply but for the pres
sure of official duties.


l regret to be under the necessity of
saying that | shall not be able to visit


New England during the present season, as /
had contemplated. must therefore decline
your very kind and complimentary invita-
tion. In doing so, it is proper for me to
remark that nothing could be more graft.
| Tying to my feelings than the appreciation
you express Of the manner in which have
conducted the affairs of the Treasury De-
partment. The endorsement of so many
of the leading merchants, manufacturers,
| and professional men of Boston, the city in
| which, in early life, many of my happiest
| days were spent, and which, in common
with all New Englanders, | regard with
pride and affection, is an honor which
| would be highly appreciated under any
circumstances, and for reasons not neceS.
! sary to be alluded to, is an honor espe-
cially grateful to me at the present time.
/ need not assure you, gentlemen, that
it shall be my earnest purpose to continue
| to so administer my office as to justify the
| confidence you have so generously given
me. You must not expect, however, that
our monthly statements for the rest of the
present and the early part of the next fis
cal year will be as satisfactory as they
have been for many months past. The do
nations Of bountieS to soldiers, preparations
for a threatening Indian 1oar, euen If tie
,car itself should be aroided, and uey ibe-
rat appropriations Of q miscellaneous cha
racter, ,oiu cause unusually heavy drafts to
be made upon tie Treasury; while, on the
other hand, the general failure of the
wheat crop and the partial failure of the
corn crop last year, stooo progress an the
restoration Of the southern States to
their proper relations orih the Federal
Government, the dullness oftrade through
out the country-partly the result of
decrease of production, and partly of the
natural rejection which always follows
periods of excitement and speculation
together with reduced taxes, will very con-
siderably affect our revenues. This COM
bination Of adverse circumstances may re-
tard return tospecie payments, and with
large issues of bonds 10 be made to the
Pacific railroad and its branches or div-
sions, will prevent for a brief season re-
duction of the public debt, and may euen
render temporary increase Of 1t unarOida-
Die, but it will not weaken my faith in our
ability to move on again in the right direc-
ton at an early day. On the contrary, |
believe that this check to our progress will
lead to improvements in our revenue laws
and to an increase Of efficiency in their
execution, hasten the representation in
Congress Of the southern States, and Sc
cure greater economy in all branches of
the public service.


Some surprise may exist that / have not
for some months past reduced the circula-
tion of the United States notes according
to the authority conferred upon me by
Congress, and an inference may be drawn
from it that my opinion upon the subject
of contraction has undergone a change.
Permit me to say, therefore, that | am as
much persuaded as ever Of the Importance
of an early return to specie payments, and
of reduction of the currency, as means
Of checking extravaganza and speculation,
and of increasing production without
which all efforts to restore permanently
the specie standard will be Intellectual.
What the country needs, in order that
specie payments may be resumed and
maintained, and real prosperity secured,
is an increase of industry and restora-
tion of our former habits of economy. AS
a people, among ourselves we must earn
more and spend less. In our trade with
foreign nations we must sell more or buy
less. Any different prescription for exist
ing financial evils is, in my Judgment,
quackery. That contraction will tend to
bring about this desirable condition of
things / have never doubted, but have
nevertheless suspended the reduction of
the circulation of United States notes, and
for the following reasons, either of which
would perhaps have justified my course,
and all of which have had more or less in
fuence in determining it.


FrSt-The views of majority of the
members of Congress, as indicated by a
number of votes last winter, were adverse
to immediate contraction, and | have not
felt at liberty to place myself in practical
opposition to the w-making branch of the
Government, without whose support must
be powerless.


Second-There have existed for some
months past anxious forebodings of tinan-
cial troubles; and while they continued |
have been apprehensive that contraction
| of the currency-the object and effect Of
it being misunderstood or misinterpreted-
might produce a panic in the commercial
cities, which, extending over the country
and beyond the speculative interests, would
injuriously affect legitimate business and
the revenue dependent upon it.


Thrd-Large amounts of interest bear
ing notes are TO be paid or converted with
the present and next fiscal year, to which
it seemed prudent for me first to direct
my attention, leaving the question of a
curtailment of the circulating notes to be
determined from month to month, by the
condition of the country and Of the Trea-
sury.


Fomth-Anticipating that the failure Of
the crops and the other circumstances
alluded to would seriously affect business,
have considered it important that the pub
lie mind should not be diverted, by the
criticisms and complaints of those who are
opposed to contraction, from the real causes
of trouble that a sound policy should not
be put in peril by being made the Escape
goat for evils resulting from different
causes.


You will not infer from what / have
written that am not hopeful in regard to our
financial future. 1t has been my constant
aim so to manage the national finances as
to aid in bringing the country to healthy
financial condition without being sub
ieeted to the severe disasters which many
iudicious persons have supposed a large
debt, and the arrangement of business,
and the diminution of industry, occasioned