Year: 1870

| Country


The terrible war between France and Ger
many, while followed throughout the European
Continent with its inevitable arrangements of
monetary and business affairs, is operating,
and, from present indications, must operate, to
enlarge the field Of our business transactions
in every direction, on the land and sea, and to
| strengthen our national securities, and to
widen the facilities Of the Treasury in assisting
the business interests of the country in their
exchanges, and in the redemption of the national
debt. Never in any period of the history Of
mankind has any nation enjoyed the advan-
tages now possessed by the United States, in
the race for supremacy in the regulation of the
financial and commercial affairs of the globe.
We may say, too, that under General Grants
administration we are in fair way to enter
into this commanding position.


Since the 4th Of March, 1869, upon
greatly reduced schedule Of taxatons, 80
largely, through General Grants policy of re-
trenchment and reforms, have the revenues
been increased that we have had, in the hand
| some figure of one hundred and seventy mil





debt The extinguishment, too, is still going
on at rate exceeding ten millions month,
while retaining cash surplus in the
Treasury, which, at the last report, including
| over hundred millions in gold, was nearly, in
the gross amount, one hundred and forty mil
lions. And here the question arises, why
| should this heavy surplus of money, drawing
no interest, be held in the Treasury, when in
the purchase of the national bonds for cancel
lation, not only does Mr. Boutwell, secure the
extinguishment of so much Of the national
debt, principal and interest; but when, in
| throwing bis surplus funds into the general
| circulation, he contributes so much to the
facilities of Western and Southern farmers and
planters in the moving of their crops to the
| seaboard, so much to our merchants in the
transportation of their goods in exchange and
80 much to the reduction of the premium on
| gold2


We are gratifed to see that Mr.. Boutwell,,
in view of the increased money facilities
required for our fall trade, has entered upon
the experiment of enlarging his purchases Of
bonds to the extent Of one or two millions per
week. Thus his last weeks purchase was
three millions, instead of the two millions
| advertised for, and for which the proposals
amounted to SO, 100000. In this enlargement
of his weekly purchases we see that General
Grant, through his Treasury Secretary, has
recognized the policy of so administering the
finances of the Treasury as to favor the opera
tions Of legitimate business throughout the
country in the present season of activity, the
full Of promise and encouragement to the
people and the government.


Under the Funding bill and the Currency
bill, passed at the last session of Congress, a
very considerable margin Of discretion is given
the Treasurer to contribute to the facilities of
trade, in keeping the money market easy,
while he is restricted against the excesses Of q
pap6f circulation. We think, however, that
he might advantageously t9 ths Tzsasury and
to the farmers and planters of the country,
at this season Of the shipment of their
crops, increase his weekly purchases of
bonds to the extent of three, five, eight or ten
millions or more. The floating capital of
Europe, we see, is steadily drifting to this
country through the channel of the English
money market. The money is lying in Lon
don, subject to order as fast as we are willing
| to exchange for it reliable securities and mer-
chandise. But still hundred millions of gold
locked up in the Treasury is loss of six
millions year to the government in the
interest which might be saved, while every
million expended in the purchase of bonds is
debt, principal and interest, and so much
toward restoration to the specie standard.


Nor is there any wisdom in keeping the idle
surplus of hundred millions of gold in the
| Treasury when there is no more danger of
another such Wall street gambling expert
ment as the ''gold corner" of that famous
''black Friday" of last September. The
administration has been and is doing well


in the collection, safe keeping and dsburse-
ment of the public revenues and in the
extinguishment of the national debt. The
policy, too, at this time of weekly increase
of the sum set apart for purchase of bonds
gives general satisfaction; but these pur-
chases, we repeat, might be advantageously
enlarged to four or five, or even to eight or
ten millions week, with a revenue of hun
dred millions of gold on hand and millions
more coming in weekly. Surely, while our
present excessive taxations are continued, the
surplus gold which they bring into the Treasury
should be applied as fast and as far as possible
to the payment of the national debt and to
the encouragement of the general business
interests of the country.


THE PARIS "MoBLoTs" endeavor to
parody the men of the time of Danton and
Robespierre. This will be seen from our
special cable letter. They may be yet forced