Year: 1876

terest, inasmuch as it deals plainly with the
question of resumption and also with the
silver question. Before considering his
suggestions for a financial policy we may
say that, in spite of the hard times. he esti-
mates surplus revenue for the next fiscal
year of over twenty-six millions, without
any increase of taxation. He remarks that
we have paid off since 1862 six hundred and
fifty-six millions Of the public debt which
is two hundred and twenty millions more
than the sinking fund law required to be
paid. These figures would be very Impress
i've anywhere except in this country.
Surely q nation at peace with all the world,
having nothing to fear from any Of its neigh
bors, not obliged to maintain expensive
armies and navies, which has paid off nearly
seven hundred millions Of its public debt in
fourteen years. and may count, in year Of
unexampled industrial prostration, on
surplus revenue OF twenty-six millions,
ought, if its affairs were only fairly well
managed, to be able to borrow whatever
sums it needs at four per cent.


Secretary Morrill, deserves credit for taking
hold OF the financial question in o very sensi-
BILE manner. He begins by showing, as we
urged few days ago that he should, that
the legal tenders or greenbacks are not
properly currency, but debt. On so solid
foundation he could hardly fail to build
sound superstructure of policy. If the
grecnbacks arc debt they ought to be paid
or funded, which is, for present purposes,
the same thing and this is what the Secre-
tary asks Congress to let him do. He points
out that tho attempt to accumulate gold
for their redemption, as the Resumption act
authorizes him to do, would be to disorder
the exchanges and commerce of tho world
and he might have added that it would be
as absurd to pay off the greenback debt in
this clumsy way as to pay off three or four
hundred millions of the funded debt by
boarding gold against it. He remarks that
the Resumption act provides free banking,
and thus prevents any artificial and harm
full stringency which might grow out of the
extinction Of greenbacks, and his policy, rs
now declared, requires that Congress shall
authorize the issue of four and half per
cent bond, for which he shall exchange
p
that an amendment to the Resumption act
shall command the national banks to lay in
stock of gold in which to redeem their
notes in 1879.


These suggestions are SO important and so
sensible and practical that we hope the
bankers and the mercantile community will
combine to urge them upon the attention of
1.o1:o 4. H.,
Morrill's plan the country can return to
specie payments with little, or, indeed, no
strain. The times are propitious for it. We
have rs he remarks great amount of sur
plus currency above the needs of trade Be-
tween January IA, of last year, and the pres
ent time there has been, under the opera
ton Of the Resumption act, an entirely
voluntary contraction of over forty-three
millions. We do not doubt that the Secre-
tary could fund fifty millions of greenbacks
within the next six months if he were au-
thorized to give four and half per cents in
place of them.


AS to the silver question, Mr. Morrill,
speaks like an honest man and practical
financier. He owns that the strict letter of
the law would allow us to pay in silver as
we'll as gold, but he adds that the public
creditor was led by all the circumstances
which surrounded our borrowing to expect
gold ; that honor demands we should
pay in gold that ''the belief that our
bonds were to be thus paid has a practical
value in the probable reduction of the debt
equal to one-fourth of the amount of its in
terest." This means that honesty is worth to
us in dollars about twenty-five millions
year. Mr.. Morrill, expects to redeem all the
fractional currency in silver within n year,
and recommends that the silver currency
that silver be made legal tender to the
amount of ten dollars, except for the
obligations Of the government and the Gus
toms dues. The steady rise in the price of
silver which stands now at fifty-six pence,
perhaps avcrts the danger that demagogues
in Congress would attempt to carry through
at this session some such dishonest measure
as the Bland bill. We understand, by the
way, that Mr.. Morrill, was shrewd enough to
buy large supply of silver at about fifty
three pence, SO that the government loses
nothing by the recent rise in price.


Secretary Morrills financial recommends
tons are SO sound and honest that the pub
lication of his report cannot fail to give
hope to all friends of sound currency and to
raise our credit abroad and the adoption of
his plan by this Congress would, we believe,
enable us to borrow ut four per cent without
difficulty. He says, rightly, that the present
is most favorable time for tho withdrawal
and extinction of the grecnback debt, be-
cause ..the volume of currency is largely in
excess of the real demands of legitimate
business" We hope tho Ways and Means
Committee will, early in the session. report a
hill to cnrrY ont Secretary Morrills nlnn