Year: 1870

| CtUluet meeting on luesuty lhc ucsi'"o VI soAu


and the financial situation of the country were


subjects Of discussion that all the members


agreed that olir condition and prospects are


most favorable, and that no measures would


be taken by the administration to force specie


payments. This is common sense and prac


teal view of the matter. The less govern


ment interferes just now with the currency or


the gold market the better. The steady de-


cline of gold aud approach to specie payments


are altogether Independent of government


action. The condition of the country and
state of trade are the causes Of thefall Of gold.


II we reach specie payments within short
| time, as many believe we shall, that
will be brought about through the
abundant resources of the country and by the
natural laws OF trade. If there should be q
reaction and specie payments be deferred a
little longer the same natural laws will
| govern, and it would be unwise for govern
ment to interfere. History furnishes many
examples Of the folly of governments attempt
ing to force specie payments. Great Britain
passed through terrible disasters in conse-
\
with the First Napoleon were ended 1t is a
sensible conclusion, therefore, of the Cabinet
at Washington not to meddle with the cur
rency or to force resumption, but to let the
country and people work out the problem for
themselves.


| All the members Of the Cabinet agree that
the financial situation Of the country is most
favorable. Well they may. The revenue has
| been coming in at the rate Of nearly a
| hundred millions year in excess of
the expenditures, an enormous floating war
debt has been paid off within three or
! four years, and the standing debt has
| been diminished some two hundred millions
| since the war closed But the most remark
able fact is that the people have been able to
| bear enormous taxation to accomplish all this


without great suffering or murmuring. Sach
| taxation or such demands upon the people OF
| any other nation would have caused the great
| est distress. No other country, probably,
couid have borne what this has. None could
have sustained or overcome in 80 short a time
such financial difficulties The natural wealth,





The republic are equal to any demands or the
most trying emergency. Whatever may be
thought Of the administration or whatever
credit may be due to it tor faithfully execut-
ing the revenue laws, the happy condition OF
our national finances and the approximation to
q specie basis are to be attributed principally
30 the industry and wonderful resources of the
country.


Even with regard to specie payments the
people are taking the initiative. The govern
ment stands in the background and waits the
result. Business men in different parts Of the
country are giving change to their customers
in specie. This is particularly so on or near
the Canada border, where silver is abundant
and approximates the value Of currency. In
the city Of New York specie is paid out now
| in the way of change at several places OF busi-
ness. The Secretary Of the Treasury has
been informed by telegraph that in Texas and
! Northern Louisiana actual resumption of specie
payments has taken place and that currency
and coin are taken alike without distinction
for cotton. In California, we know, coin has
|
backs have been an article of trade. Thus we
see the tendency and desire generally toward
specie payments. This being the case nothing
can prevent the early consummation of the
object but some change in the course Of trade
or some extraordinary disturbance in the
world


People are somewhat puzzled it is true, at
the constant and daily decline Of gold, and
the spectators in Wall street hardly know what
to expect in the future or how to act. Some
attribute the existing state Of things to one
| cause and some to another. There are several
causes operating. The export of cotton dur
| ing the last few months has done much toward
| paying for our imports. The production of
| the precious metals to the amount of sixty
or seventy millions year has had its
effect. But the appreciation of the credit
OF the government abroad, which has
caused an extraordinary demand for
our securities in Europe, has paid the balance
of trade and made exchange more in our favor.
Considering the high rate of interest Ameri-
can bonds bear, it is probable this demand will
continue. We should not be surprised, there
fore, to sec gold exported to this country and
exchange being in our favor Under this
state of things there is no reason why we
should not reach specie payments. OF course
we should have then, with the amount of the
precious metals brought into circulation in
| addition to our present currency, an easy


money market and a general stimulus to trade


and enterprise. Whether we can remain on a


specie basis and 60 along swimmingly in this


way will depend upon the future productions


of the country and the maintenance of peace


throughout the world. For the present al


looks well and promising. The balance o


trade is favorable, and that rules the money


market and price Of gold Let us look to thu


future, however, and maintain, if possible, thu


financial position we hold by increasing oul