Evening Star Newspaper, December 3, 1867, Page 4

With them also that it is wise to leave the unretion Of anch abeorption to this of afural political gravi The as of St Thomas and St. Jobn's, which constitute a P8rt of the group calied the Virgin Islands, Seemed fo cffer us ad vantages immediately de- sirable, while ‘heir acquisition could be se- cured im Rermomy with the principles to which I haveailuded. Atreaty bas, there. fore, been concluded wiih the King of Den- mark tor the cession of those islands, pe tu bmi nate for consider 8 it will bardly be mecessary (o call the atten- von of Congress to the subject of ment to Ku p- ted in (he treaty for the cession of Alasza. Possession baving been formaily delivered to wr commissioner, ‘he territory remains for the present m care of a military force, await veg sack civil organization as shall be directed by Congress | The Suuexation of many small German States t@ Prussia, aod the reorganization of bat country woder a new and liberal cons t jeduced me to renew the effort to Prompt settlement of the Gestion concerning the claims of foreign States for military service from their subjects nacuralized in the United States. In connection wt is subject. the att ion of Congress is respectfully called toa gniar and embarrassing conflict of laws. The Executive Department of this Government has bitberto uniformly held, as it now hol that naturalization, im conformity with the Constitution aud inws of the United States, adsolves the recipient from bis native alleg ance. The courts of Grea: Britain hold that allegiance to the British Crown is indefeasi- die, ts not ived by our laws of natar- lization. British judges cite courts and law AutRorities of the United States in support of tbat (Reory sgaimst the position held by the Executive authority of the Unitea States. ‘This conflict perplexes the public mind con- cerning the rights of naturalized citizens, and impairs the national authority abroad. 1 tention to this subject im my last an- Busi message, snd vow again respecifally ap- peal to Con ‘© declare the national will unmistakably upon this im: t question. The abuse of our laws the clandestine Proseeution of the African slave-trade from American ports or by American citizens bas aliogether ceased, and. under existing circum- stances, no spprehensionsions of its renewal im this part of the world are entertained. coz ase circumstances it becomes a whether we shall propose to Her Majesty's Government a suspension oF disconunuases ofthe stipulations for maintaining a naval force for the suppression of that trade. ANDREW JOHNSON. Wasurserox, December 3, 1 +2-e-—____ DEPARTMENTAL REPORTS. —— EPORT OF THE SECRETARY OF THE TREASURY. ‘The finances ef the United S:ates, notwith standing the continued depreciation of the currency, are in & much more satisfactory coa- m than (bey were when the Secretary bud honor to make to Congress bis Iasc annus Teport. Since the first day of November. 1: $450,090,65.4 of interest-bearing notes, ear cates of indebteduess and of ‘emporary loan. have been paid or converted into bonds; and the public debt. deducting therefrom the cash im the Treasury. which i= to be applied to its ayment, bas been reduced $59.505.555.72. puriug the same period decided improvement bas alvo Deen Witnessed im the general acon: m= ical condition of the country. The policy of comtractiog ihe currency, althouch not es forced to Be e31en! authorized by law Jnas pre vented Su expansion of credi dick a Tedundant and especially a deprecia rency te AlWoys an incentiv je infinence im «timuta and in acing prodnction. tndustry has b eadily reiurninz te the healthy changel from which A: diverted « ew and sithouch incomes bave ber rade sully ioscrive. ta Tcini country has there been embarrntemen’ than in tue Un order that the action of the S 2 he fluancisl administration of the Depart ment. may ve properly uuderstood. « reference to the condition of the Ty the time the War Was drawing to a ct ubseq unt periods. sevms to bs neces be Sist cay of March, 1845, the to-at United States was & SHS Sh. tet = descriptions, to wit A debt S110, si Matored ded . Temporary ioau vertificaics Cernte f indebteduess Interect-besting notes... Suspended cr unpaid re. ti ps pattie Uni tes BOIS (Hot le mal currency Cash in Totai he revo Sted of the Mopey in (he public depositories in differ. ent parts of the country. amounting as abo ye the revenues from in- ternal axes ard customs duties, and the au. thority to issue bords, notes. and certificates, der ihe tollowimg acts to the toliowing jour ts Act ot Februnry 2 Actot oF compound interest no! Certificates for temporary loans, act June ' VU. S. notes for payment of tem- porary loans, act Joly ii ised : 16,-38,431 Frectiovai currency, act June 1 Act ot March mmterest Dear Makirg a ‘ot: Certifientes of indebtedness. from date. cr earlier at the option ofthe erpient, bearing interest at the rate of scx p. cout. per annum, migh: be i-eued to an inde: Bite amount. but only to public creditors desi- re receiving them im satisfaction of au- dived and settied demands against the Vuited Sates Estiy in April, the fail of Richmond and the surrender of the forces which had so long de- feuded it, rendered it certain (Bat the war w a. econ fo be lermimated. and that provision must be made for paymen: the army at the eecliest practt momeut ‘The exigeucy was great, and the prospect of eg the money required to meet the pres- ent sad prospective demands upon the Trea. Bry. under the laws them exisiing, was euffi- ciently disc sobicitude aLxiet exper responsibility Of mainta: bation bad been nnexpectedly devolved. There was nc Oo try experiments or to correct errcrs, if any had been commutted, im the kind securities which bad been put upon the ket. Creditors were importunate, the un- pard recuisitions im the Departmen: were largely in excess of the eash in the Tressary. the vouchers issued to -coutractors for the ni cesssry supplies of the army and navy were being sotd at from ten to tw. ‘Rty per cent. dix. coust—indicating by the:r depreciation how Sncertain was the prospect of early payment — While nearly a million of mem were soon to be Giscbarged from service, who could not be Ibustered out until the means to pay the large Dalsnces due (bem were Pprovice¢. There was bo aftermative but to raise money by popniar subscription to Government securities of a eDaracter the mos: acceptable to the people, who bad subscribed so liberally te previous loans. As a considerable amount of the sev: hirties Bad recently been disposed of sat torily by tue Department. and bad proved o be the most popular security ever offered to th the Secretary determined to rely por sithough on ie part of Govern Eeent they were in many respects objection - able. and, im order to insure speedy subscrip- ‘© pisce them witoin the reach of ali might be willing 10 invest in them to every lly and town and village of the joyal and At some points im the ¢i ectiptions were sol menae power. ithont distinction of «conded the etfor's of the energetic and ful agent who had charge of the loan. Tae ions! Hawks gtve efficient ald by liberal subscriptions, while thousands of persous in humble bfe and with itmited meaps hesitated Bot to commit their substupce to the honor and good faith of the Governm Before the ¢: of July the entire loan, exceeding five hundred millions. was sebecribed and paid for, aud the Secretary was enabled with the proceeds, fogetber with he receipts from customs and imterpal revenues. and the use to a limited extent of some o: other means at his dis- gosal, to pay svery requisition upon the Treasury, and every matured national obli. gation. “As evidences of the necessity that ex- ted for prompt &ctiom in the pm this Joan, And the straits to which the Treas ry was reduced. it will be remembered these who examined carefutly the monthly statements of Department, that although during tbe month of April, upwards of one bondred millions of dollars Bad been received irom the sales of 7.20 notes, the Unpaid requi- )00b8 BC it ose, Bad IRoTeased to $120,470, 000, “Die (he eass (coim and currency) in alt ine pethe depos:ories amousted onlv to $16,815, - “0. If few men entrusted with rhe meotot'he finances of &grest pation were ever (2 & pesition 10 embarrassing and trying ae was that of the Secretary of the United Tressery om the monihs of April and ~S boow certainly were ever so heppi- promptly relieved The Secretary bey artment w ce of (es jomm wes to him pot only « sur- pr-# and & relief, but beeause it indicsied the T-curees Of the Coupiry, and gave seed courage for the pertormanc gia! Work Wat was before Bim. a Vet ween the first day of Apr. Ana Septem- ber, 1886, (be Secretary used his auihority to issue securities as foliowe: Bords under theac: of February muds aioe — = 6,000,000 00 | bis views upon the subject of the currency, Componnd interest motes, act and the necessity ofaction for the our, June 30, 1664, - 4,978,300 00 | bringing abouta return to y Cerviftcates for temporary losas, ‘The views thus presented by him were ap- Act June 30, 1584. HOO proved by the Honse of Represeniatives on the Fractional curren ‘th December, 1965, by the adoption of the fol- - 2,090,643 44 yee Teeclution, by the decis: we of 14h eves, March 3, dees " 7 “Kesolved, That thig House cordially con- ee wad curs im the views of the Secretary of the $52.976,283 3) | Treasury in relation to the necessity of a con- traction ef the curreucy, with 8 view to as | carly a resumption of specie payments as the business interests of the country will permit: | and we hereby pledge co-operative action to gp this end as spee: ily as practicable.” 1,503,020 09 These views were not only approved by the Temporary i 107'148,713 16 | House of Representatives, bat they seemed at Certificates of indebtedness. 35,092,040 99 | he Jime tobe Reartily ee hy Pod Five per cent. legal temder notes 33,954,230 uo | People. By the act of April 12, 1866, the Compound interest legal tender | retary was authorized to receive Treasury notes, 21,160 99 | BOtes and other obligations of the Government, 7-30 w * “""" Saoloontooo ow | Whether bearing interest of not, in exchange t . 160: for bonds, with a proviso that, of United States Sacer en eel 433, 160,500, 60 ot than ten millions of dollars Fractional currency ‘WH4.742 51 BOS, not more than Suspended OUTS called | should be cancelled within six months from Oren creas mnaalied — scan co | the passend Ot the Oat, ond teereahier uel mare for... scetcetaccces SASK | Ban four millions of dollars in any one moatn. Total. This proviso, wi it fixed a limit to the pageut oon wa Treasury smount of notes which stould be retired per month, so far from indicating an abandoament of the policy of contraction, confirmed and establis! it. To this poicy (although = Of these obligations, it will be noticed, Tessons that seemed to him to be judicious, the regular monthly reduction has not al: been made) the action of the $64,135,959 were a legal tender, to wit: U.S. notes 7 been conformed, and the effect has been so sai- Eive per cent: notes. Gixtecise QO Uiary. and tBe continuation of it would be co m pound interest note: beat obviously wise, {hat he would mot consider it Tae oo necessary to say one wi in its favor were Total....... Go4r138,050 © there not indications tbat, under the teachings A very large portion of which were in circu- "The te soumry’) te yabie in thirty e tem) loans were pa: le Gays from ine time of deposity after a notice of ten day: The five per cent. notes were payable in law- ow no in one and two years from rly The compound interest notes were payable ‘m three years from their respective dates, all becoming due between the 10th day of June, 1r67. and the i6th day of October, 1565. The 7.30 notes were payable, in about equal roportions, in August, 1567, and June and 1s6=, in lawtul money, or convertible at me the pleasure of the holder, into The certificates of indebtedness would ma- ‘ure at various times between the 3ist day of August, 1565, and the 2d day of May, 186° Durimg the month of September, 1565, the army baying been reduced nearly toa peace footing, it became apparent that the internal re’ ues and the receipts for customs would cient to pay ail the expenses of theGov- ¢rnment and the interest on the public debt. so that thenceforward the efforts of the Secretary were to be turned from borrowing to funding. Besides the United States netes in circulation, there were early $1.300,000,000 of de! jJorm of interest-bearing motes, temporary joant. and certificates of indebt tion of which were maturing daily, which, with the exception of the temporary loans, (which, being is the nature of loans on call, might or might not be continued, accord- ‘vg lo tbe will of the holders,) must be con- verted imto tonds or paid in money before the i6th Of October. Is6- The country hud passed through s war unexamp.ed in its expensive- hess Sod -acrifice of lives: it was afflicted with a ied carreney: prices depreciated currency, such views are being ineuleated Qs, if not corrected, may lead to its abandonment. ‘Measure of value. Asa medium it exchanges. and by doing this ulster production. It does not follow, ever, duction stimulated in rtion to its in- crease. It is & measure of value, but it does not necessarily creste values. It is an indis- pensable agent in trade between individuals, and in commerce between nations; the incentive to ent &nd labor range of human energy and skill; great as is its power, and essential as it fo the progress of the race in civilization and refine- ment, (bere limits beyond which its vol- ume cannot be extended without a dimination of its usefulness. A certain amount is required for facilitating exchanges and determining val- nes. The exact amount required cannot of course be accurately determined, but the ex- cess or deficiency of money in's country 1s always pretty accurately indicated by the con- dition of ite industry and trade. In all coun- tries there is just as much money needed as will encourage enterprise, give employment to Isbor, and furnish ihe means for a ready exchange of property,amd m0 more. Whenever the amount in eircuiation exceeds the amount Tequirea for these pu! » the fact will become apparent by a decline of imaustry, an advance of prices, and @ tendency to specal: ton. Especially willthis be the case when 8p irfedeemable currency becomes the stan- Gard of value by bemg made a legal tender. Con, being (be circulating mediom of ihe world, flows from one country to another in obedience to the Iaw of trade, which prevents it from becoming any where, for any consider- able period, exvessive in amount: when thye stim- OW - eduudant and deprec ef Property and the cost oi living bad ad- jaw is uot interiered with by legislation, the of the caeaesPondingly with the imerease evils of an excestive currency are carrected of the circulnting medium: men, estimating > the law iteeif. An ineredce of money be- weir means by a isise standard of value, Bad youd what is needed for ihe purposes above * {neir named, avcording to all experience, not oaly bess, in the ab- ces. but diminishes labor. and cuin. es p 8 - flows from the country mw dyandspecn- 4. ac eat financi! (roubles. which th ¢ Tesull of exists, to some other where exprosive wars, seemed to be almost ine’ isbor fs more active and prices are lower, to Cee wee pens Uuder stich circumstances.tRAt ow tock again when the loss by ove conn the w the Poing (he rapidiy-mataring e Government and reetoring dard was to be commenced An re bY another produce :me natarat Upev industry and production. ‘Tha Lot only the regulator of commerce wn ie Fobject could not be brought | put th: at stimulaior of industry aud en. about wnitl the f d Deen accomplished. te rpriee. at (bat the aecrssity Of = The sume miny be said of a convertible paper payments should At the same time, it that a retura to che urrency, which bj being convertible wii! not period be excrssive: bur t of. fora etary it is rarety if ever true ot au jnconvertinle however desirable. currency,which je necessarily local, woula whe wot tent importance to justity tMe nor be likeiy to be convertible it it not ton Of sugh messnres as might prevent ¢xcece and by bemg excessive snd inc n- funding. and ihjnriousiy affect those branches Yertible. 18 {lc tating and uncertain in value of incustry derived, muc from which revemue was to be s such measures as might, 5 precipitate the disaster ipnied and feared. Thos the country and the Treasury determined (be policy of the Secretary. which bas been to convert ihe iplerest-rearing notes, The o ¥ Possible exception to this rvie would found ip the limitation of the amount « circulation to what might be absolalely re red In the payment and disbursement ot (he revenue o matter what Inws may acted tO give credit aud vaiue to it. an feemable currency must, unless limited as qu pu be irr lemporary fone: » into gold-bearing bonds. shove stated, always be a depreciated cur. Peder Tact Be Paper circalation by the rency The attempt t0 give valine to paper redemption ot Uatted States notes. For the promises by masking them lawful money ix inet two years policy Ras been steadily. not originai with the United States, The ex- but carefully pursued, and the reselt upon the other nations, and periment has peen tried whole bas been satistactory te ihe Secretary. generally with the same injurions, if not diene, and. 8 be believes. 108 large majority of te trons results. Indeed, with Tare excepnions, people nations that bavecommenced the direct «ae ot © ihe first day of September, isis, the temporary ious, the certificates of indebted- ares. and the five per cent. uotes have ali beet pad, (with the exception of small amounts of each uot presented for payment.) the com- Pownd interest notes have been reduced trom sa 4.100 to 71,575 O40, ($11,567.00 ha ken up with three per ceut. certitica! the seven and three-teuth notes from S=1),000,0) to = the United Siat lenrreney, trom 84. 77 30—while the cash 1 increased from =-5,21 2, aed the funded debt cTeased $0.36, 5> . per mor aye continued to issue it uolil prevented by its utter worthlessiess. There may be no danger that this will be trae of the United States; bu: there will always be ground for apprehension as long as an irredeemable and ceprecitied currency is not regarded as an evil—an evil 10 be tolerated only so long as may be neceseary to retire it without greai de- repgement of legitimate business. Inconvert- ibe and depreciated lawful money i< an agreeable but demoralizing deception. It is agreeable becauce it is pientitul. and because it deludes by the creation of appirent wealth has beew in- 1) ts Gemoralizing b: familiarizing the public Woils this bas been aes mand “ 3 mind with dishonored obligations. The complished there has berg no commerctxt prices of most kinds of property in crisis, and (outside of the Southera States. the United States advanced ‘near three. which are ® fects of the wi il greatly suffering from the ef- ‘old during the war. but it advance was the result of the tocrease of the circ € Medium, and in reality only indicated Ns depreciation. The purchasing power ot the money in cirenlation was diminished in the ratio that tts volume was mcreased. The farmer, tor example, received three doilare a bushel tor bis wheat, but, except for the pay- Mec! of debis, these three dollars were of mo in bis Inet report. the Secretary remarked that -sAfler a careful survey of the wholv field. he was of the opimion that specie pay- mens might be resumed, and Ought to be re- sumed. as early as the tirst day of July. 1-6-. of the advocates of a large and consequently a | as Rersee is simply 8 medium of excha | moved joe, factiitates | exchanges are iacilitated and pro- | minm or at par, for what ¥. there Wasa constaat |. if mot RaRecersary, ox- 7 apecie standard been msintained and bonis been sold at a discouat for real mosey, re would have been an im ail'the obes of the public ser- vice which ately was not witnessed and the cou ped the reeniti from a @ rd of the great imter- national law, which no mation can violate with impu 4 the one that makes gold ang silver the only true measure of value. The financial evils under which the country bas bern suffering for some years past, at degree, to be traced to | y tne Government of an in- | of money. Upon the demoraijzing infiuences of an un- convertible Goveryment currency is not ne- ceossary to enlarge. | They are forced upon our attention by every day's observation we eee eet cpm tt we wo The | vernment is vir{asil ating its own obligations by faili: ta redeouh ite notes ac- cording to their tenpr. able to bearer on d: one of them is bei expected that the shan the Govern: These notes are pay. Pople will be more honest mt under which they live, ernment of the United | States refuses to- gy its notes according to their tenor, or atk Jong 85 it fails to make | proper effort? t5 do ao, it practically teaches to the people the doctrine of repudiation. The general financial legislation and the ad- Ministration of the finances during the war reflect the highest credit upon Congress and the distinguished gentleman then at the head ot the Treasury Department. They Rave commanded the admiration of intelligent and impartial men at home and sbroad. In speak- | ing thus plainly of the legal-tender notes, the | Secre ary must not, therefore, be understood in the langaage af criticism. His obj rye mw a SMe ae peda tin ere what bas been express vis deci conviction of ihe eoeger of & repetition ora perper ation of what experience ha: shown to ‘ve been, im @ single but important matter, unfortunate Jegistaiton. if the views, thus presented, are correct, there can be no question that there is still an excess of =, money in the United States, and that the legal tender notes are an obsta- | ele, and, uniess reduced in amount, must con great the wide | ue to be an obstacle, toa return to a stable currency. ‘D opposition to these views it is urged by many intelligent persons that as the credit system has been very much curtailed since 1561, and sales are made chiefly for cash, much larger amount of currency is required than formerly for the convenient transaction of business; that there is in fact no excess of be ad a ed for Govern: ational Currenoy oO! doubted eoivency. To (United States notes bei on Benking syst tbe State Banks mor in, business, but to furs orgspized under it, paok-note cireul: {bat the object w control of the Federal purpose of destroying ‘would be i's effect, it would never have beem convertibie currency with the legal atiributes | adopted. No such object was avowed or in- tenced by its friends, am anticipated by the banks patriotiem which characteristic of Nic loans and « {be maintenance Of t's oredit. and that this would involve the pecresity of S| temporary expedient) the Nationsi ‘f i patel Det to destroy Ubatol new imatitutions which might be & permanest national |. Had it been supposed f those who sdvocated the ure was to bring the State bapks under ig the war, the stockholders of relinqwished, at the req the Government, the greater privileges pos- sessed by them under State ‘With the new banke organized under became efficient aids im negotiating the support of the iform = je and : meet Becessity me them regarded ax rousiy to affect their through their arency Government for the them, or that such a no Fuck effect was With that spirit of marked the of juest of Ws, and, ia con- ustai x the p' lic | king systems under which | changes—actual a1 circulating notes are issued there are grave objections, and if there were none in existence | in the United States the Secretary would Besi- | dicates the readiness of the | tate to recommend or to endorse even the most perfect that bas beem devised. The question | banks of issue ald be | Bow to be considered, however, t# not whether | created, but whether | the National Banking System should be eus- tained. In the present condition of the coun- | try, and in view of National Banks sustain of good faith.) the im this connection the the relations that the to the Government, difficulty in coming to the concimsion- that they should be sustained. They are so inter- woven with all branches of business, and are 80 directly connected with the credit of the Govern: without cial tronl meet. At some more = Union shall have c stantial prosperity sources and the ene: sooner or later sec! per- | be wise for Congress to consider | the National Banking peneed wit! The present ‘States shall have at it, that they could not be destroyed recipitating upon the coun’ which it is now in no condition to propitions period, when fully restored, and ned that sub- which their great re- of their peo; for them, it May not be dis. | not a favorable | time to consider this question, The condition | of our political and financial affairs is too critical to j justify any action that would com- a pel tbe National Banks, or any considerable number of them. to call in their loans and put their bonds upon the market for the pure ot providing the means of retiring ir Money in the United States, but that,on the Iation. Conservative legislation is now in- contrary, an increase is req’ crops. encourage enterprise, and give activity to trade. Asan evidence of the correctness of this opinion, referen ce is made to the “tight- bess of the money market” im the commercial cities, and the scarcity of money in the agri- cultural districts. At 1s undoubtedly true that the effect of a curtailment of credits would have been to in- cresse the legitimate demand for currency, if no otber means bad intervened to counter: the effect of it. But such means have in’er- vened. In all the cities and towns throughout the country. checks upon creditsin banks, and bills of exchange. have largely taken the place of bank notes. Not a fiftieth part of the busi- ness of ihe large cities is transacted by the ac- togluse of money, and what is truein regard to the business of the chief cities is measurably trae in regard to that of towns and villages througbeut the country. Everywhere bank credits and bills of exchange perform the of- | fices f currency to & much greater extentthan in former years. Except im dealings with the Government, for retail trade, for the pay- ment of Iabor and taxes, for travelling expenses, the purchase of products at tirst hands. and for the bankers’ reserve, money is barcly s necessiy The incrensed use of bank checks and bills of exchange coanterbalunces the increased demand for money resulting from the curtailment of mercaniile credits Toat money ts 1 J. and 1s commanding full cates of inne, but this dors not indicale a scarcity of it. The ries of interes ‘n England and France have rarely peen 60 low as Witbon the last four montas, and y+! for commercis] or manttacturiug purporrs | Tjonry hax nevofien been £0 difficult to be ob- ‘Aihed. “The speeula:ive reaction or over-pro- | iudcyon of mapttactures. togetiter with aps preher sions of polices! troubles, have caused | Dueiness 10 be sluggish aud anproiitable, and-| made capitalists cautions sud timid. Tou ip | tbosei\conntries, money Was ue ver more plen- | uful,snd yet apparently never more scacce. | Its apparent scareity in the United States is | attributable to high prices, to its uncertain | value, and to its inactivity. | Money by no means becomes abundant by an j mmerease, OF scarce by s dimunition, of its | volume. The reverse ts more likely to be | iTue, especially when, as is generally the case, hich prices are speculative prices, and pr Kent gctisity in exchanges. Money is inde. | mand at the present time. not so mach to move | Tops as to hold them—not to bring them at | prices within the reach of co: sumer=, but to withhold them from marke uptita large advance of prices cau be estad- lished. Le: the great stapies of the country come forward and pe sold at market prices. at seb prices as, while the producer ts fairly | remunerated, will increase consumption and | tive, business is too unst red to move the dispentable. The public mind is too sensi- jeady, and the politi- cal future is too uncertain to warrant any “t e National Banking System has accom. Plished all and more than was anticipated by its advocates. Tt Das fornished a circulation. depreciated it is trne, like the United States notes, but rolvent beyond question, and cur- rent thronghont the Uni jon. It bas prevented bapk-note panics and fayed note holders from losses exchan; with It bas aided im reguiating domestic and fornisned the Government able financial agents. Had it not been adop'ed, State banks would huve con- tinued, as Jong as they were tolerated, to fur- nish the coun’ry with bank notes. the States, ban! Stocks for the security o} these States where sec there was no limit bonds that mrgnt be Were not required to depo: In most of sit f their notes, and ip ‘urity was required, to the amount of deposited, and con- sequently no limit to the amount of notes tha might be put fi n circulation. Im ther Staies there was no seenrity beyond the co pills of the banks, frequeutly areal, and the partial lability of stocktoldere, generally deceptive. Who can ests injnry which the people would have snetained Mute the extent of the and the Government if State inrtitutior without anv otfer restrictions than were spforced by State laws, had been perinit- ted, during the war, to occupy the field. AU haying suspended specie pay- Men's, Aud therbby been relieved from (be ni ceseity cf (nrnishing evidence of solvency, barks ui wisely Or disbonestly managed would bave stood cna Jevel with those which were managed wisely aud honestly. ter wonld Rave found tt issues within reasoniol as they would Ray+ been the necetsiturs of the Ge Teasing the Fesult of an ed ow would have p promises un’ With iis limired and sec its restricted provisions Stare ris, thei White the tar difficult to kéep their les limits, stishMated, to issme freely, by vermment and the in- emand for money, which t* always nerented supply, the former t their irredeemable dietrnst created panicand panic | disaster. That the National Banking > tem. ared circulacionu,and + by superseding the tems, has prevented a finuneial cri- can be bat little doubt. For this it is entitled to credit: and for this and for other Teasons suggesied it should be sustained 1 better system shall be Tguments in fav fe! upon the devised, or the coun- ‘or of compelling the banks to retire their notes and yielding the to the motes of the Government, are based | povition that if three hundred millicns of United States notes were substi- tuted for the tree bundred millions of exports—let capitalists be assured that pro- | tional Bapk notes now im circulation, the gress towards a stable basis is to be uninter- | Government would save some eighteen mil. Nous of dollars in interest which | grateity to the banks. That ther such SAVing. nor any saving, yas in IS6). when three | subsuiulion i#.clearly shown by the Gomp- ropled—and money, now considered scarc willbe found to be abundant. The acin legitimat» business of the country is not | iarger than tt hundred millions of coin and bank notes medium, and dditien of Gtty millions would have | ive Throughout a considerable portion of tne best grain-growing secrious of the United States there bas been, during the past year, great complaints of a scarcity of Money. and yet no single article of agricultu- Tal product, exe*pt wool, was to be soid there for which there was not @ purchaser at more than remuuerating, if not exorbitant prices. There was uo lack of money i these sections, but @ lack of prodnets to exchange for it. The bard times complained of were the conse- quence of short crops. aud not of deficient cir- were an ample circulating when an while be induiged the hope that such w More value to him tha one dollar was before | culation. To the farmer who hind little to sell be the characier of fature lez the suspension of specie payments. The sume | 8nd much to boy, &o increase of the cir- tie condition of our productive imcustry that wes true ef oiher kinds of property acd of | culation would have. ‘beeen nc injury— suse Gevirable «veut might be brought Isbor The advance.except so far as it was |S curtilment of ita. benefit. avd yer about st astll exrlier day.” These pa- the result of un increased demand, wasappar- | bY men in sueh circumstances ens of the Secretary may not be tully Testivd. The grsin 1566 were barely entonly and unresl The same cause is sus- ps tor bome consam lining prices ut the present time, aud will sothcen: t10n. The ex- continue to deso #8 long as the canseexists bat penses of the War Department the advanteges resuluog from 1 are merel, of Indian hosiflities and the establish. imaginary, while the evils are tual. ostiveand men! of mibtary governments in the Southern NO sane man supposes that bis ow: r Slates. have greatly exceeded the estimates . Wealth, or the wealth of the mation, is in- The Government bas been defrauded ofalurge creased by the depreciation of the sandard by PAT! of the Teyenue upon ditiled liquor, and which jt is measured, It the paper circata- ihe condition of the south hasbeen disturbed and vpsntisfactory. These facts.and the appre- hen-ion created in Europe, and to some extent at home, by utterances of some ot oar pub- he men upon (he subjects of finance and taxa- on, (bat the public tai wgbt not be main- Tainea, mt me when spec yinenis shall be resumed. But, notwith- Budipg these unexpected embarra.+menis, much preliminary work bas been done, and there js pot, in the opinion ef the Secre tary. Any insuperable difficulty m the way of au early ani TMAnent restoration of the specie dard. It may not be safe to fix the exact Ne crops next year and no legisiation uafavorable to contraction At this ses8i0, It ought not to be deinyed be. yond the Ist of January, or at th fartoest the jet of July, 1569. Nothing will be gained, bowever, by 8 forced resumption. When the coupiry is im condition to maintgin specie Ayments they will be restored as 1 nece-sary consequence. To such a condition of national Prosperity as will msure a permanent restora- ‘ion of ihe specie standard the following meas- in the opinion of the Secretary, :m- . if not indispensabl ‘The funding or payment of the bal- ivg Dotes, and a continued per currency aimtenance of the public faith to the funded debt. » The restoration of he Soutbern States Federal v- uring the nex! year, and the prices of prop- erty should be likewise doubled, would it be imagined tbat the real val be thus advanced! Or, if the paper cu rency Afty per cent. and prices of property shonid decline correspondingly, would 1: foliow that the rea) value of the chime io the ove crease in amount. ished in amount. The increase of decrease of prices would. tf no counteracting causes in- or decrease of the measure of value, while real values remained uncnanged. The United States notes were made a legal fender and jawiul money because it was secure their currenc: By re debates of Congress upon the subject it will be noticed that those who advocated their is- ‘Sue justified themselves on the ground of ne- sity. No one who spoke in tuvor of the Measure, favored it upon principle, or be tated to express his apprehensions that evil consequences might result frem it. sut the Government was in peril, the emergency wis pressing. necessiiy seemed to sanction a de- psrture from sound principles of finance, it not trom the letter of the Constitation, aud an inconvertible currency became the’ lawful oney of the country. While the r in ihesr proper relations to t opinion be correct, the question of eress, in authorizing the issue of these | permanent specie payments, involving as it ies, seemed necessary At the time, and was Goes the prosperity of the country, undoubtedly approved by a large majority of the great question of currency, taxation, and ihe people, there can now, in the light of expe- Tuction, Which are now engrging the rieuces be no question that, pprebensions tention of the people, and cannot fail to re- crive the earnest and deliberate attention of In view of the paramount import- great «uestion the Secretary deems juty briefly to discuss the meas. ures regarded by him to be uecessary for an early and wise disposition of it, even at the r of those who advocated the Measure as a ne- erssity were well f ded. Had they not been made s legal tender, the amount in circul on wi not Dave been excessive, and the national debt would doubtless have been hun- dreds of millions of dollars Jess than it is. ‘This would have been stayed before a very large amount bad been put in circuin- Uon, BOt because the notes would bave been Prosperity, as a consequence for permanent resump- tion, are— Firs!, The funding or paymentof the balance of interest-bearing notes, and a continued con- (aehon of the eurreacy. By the act ot fare 5, lawful money, but because their depreciation would have been manifest. By being made ‘awful money they became tov legal) zed meas. ure of value—a substitute for the precious metals—wRich, as a comsequence, were at once demonetized and converted into articles Of iratic. Made by doves to pay ot property Cisell cast ‘© pay oF property to sell; costing notn- ing, and yet seemingly adding iy Por i supplying the means for speci rtiticates, om the let instant, had been tion and ior creating an ariifiniar end eee pr tga re nee eam 12 redemp. sive ns j Taber the wisdom | ton ‘he notes becomin; due in October ana ress ‘was 6! December. ‘The notes still omtatanding will be ue "bad become rwinousiy depres “ated, vitbertaken up with certificates or paid at and the business of the pat A ae in maturity. The sevem and three-tenth ing Gifficulties. Bat, lomgb the being payable in jawful money or converipie issye of t nows was id we th at the option of the bolders into five-twenty es; the disatiere which wou! baveovel. Donde, will be paid or cou verted ac: to wl the country withont such limitation, tbe terms of the contract Fortan: allthe it cap bard ly be don’ ‘Bat the resors to them ‘aterest-bearing potes are to be OF cos. | ‘A misfortune. ey ot means ‘verted wit! nthe, and they need Bad no! been adopted, Bot therefore be regarded #6 @ serious impedi- have undoubtedly been sold he Benoa return to the trne standard ot value. the redemption of these notes, the | ‘tthe fact that they were th: ‘ iug the carrepcy, would Raye t art ‘te Sete'nt cane 'sacn sadetas| euch, he oendedaem Oe te ae D ce Dt on opinion. Pt is tm regard tc @ contraction of the | wonid scarcely Dawe emoreded the actuai de. currency, 82d upon currepey— United the Neticoal Bsa! preciation of ¢ notes below the coin stand. As lemg s6 notes could be issued and bonds Hon of the Untied States should be douvied | Barvest has been again u ‘ue Of property would | should, durmg the same period. be reduced | Property would thus de- | Money for the purpos case the value of the cur. | country, would be to ney Would be reduced in proportion to its | An the other, ihe curren. | cy would be increased in value as it wasdimin- | tervened, bethe natural result of the increase | thought that this cbarac'er was necessary to | ce to the first | stored. really more depreciated by not being made | the | that the currency has tatute a legal tender. they | coming. to the “hard ‘with those who nad | will to the value of u polices of contraction bas met wits « condem- nation second only to that which it has received at the hands of speculators in stocks. Next to the stock board of the commercial me- | tropolis. the opposition to the policy of con- traction has been mot Gecided im those sec- | Mons where, by reason of short crops, the pro- ple bave been less prosperous than herety- tore Unfortunately. im the same sections, the atisfactory, and thi demand, not only jor & cessation of ‘contrac. tion, but for an increase of paper money, may thus be more pressing then ever. This de- Manc, no matter irom what quarter 1! comes, or by What Interest sustained, should, in the opinion of the Secretary be inflexibly resisted by Congress. To increase the volume of paper e ol giving relief to the foster the cause im order to cure the disease, To stay the process of consirsction this year will but prepare the way foran increase of circulation the next. Whenever the policy of reducing the pa- per circulation of the country, with the view of a return to ele pay ments. spall be abandoned, 8 to be apprehended = that =the = demand —for &n increare will be Irresistible, and that the couniry wilt plunge into bankruprcy. The specie ‘standard must be sooner or later re- Wherber this by elevating the currency by leseening iis vol- ume, or after lessening its value by increasing | its volume, it is for Congress to determine. ; wi: ‘That this question will be determined prompt- | ly and wisely, the Secretary is not permitted to doubt. Some progress has been made in the right direction during the past year, but there is stil in the Unitea States a plethora of pa- per money. It this is not so, how happens it ‘Dat coin commands a premium of some forty per cent. over legal tengder notes that a high tariff bas proved powerless to preven: exces- Action of ; Sive importations !—that capitalists hesitate im regard te the uses to which put their surplus means !—that Speculative aud uncertain !—that of living sre driving thousauds into crime and making dishonesty excusable, whi honorable men ot limited means indignantly and justly complaining that | they cannot live on incomes that formerly gave them a husdsome support! Money may be inactive, but it is not scarce Its tuactivity is im fact the result of its uncertain value ‘With a circulation that is to-day ata discount of thirty per cent.,and which av by 8 change of policy be increased to sixty per cent. within next year, with wh: fety can men epgage in enterprises which look mto the future, and whic! slumbering th coi ‘y shall iness is Fesources of the country? Let dollar truly represent the doliar in men of capital and exterprise feel some, or is steno py in” of Specie, and there be 8 atimuins Fiven to enterprise and ‘sbor which will banish all complamts of a scarcity of money. Af, theo, tt be aamitied that sive, be questiontarisess w! not the comtraction Ss fog rise nde eed National Ber: of tbe United States a thus & larpe saving of interest to | the Govern ment he effected? This question = et been Lb inferen' ; lye a 18 ‘mportenee requires that it shall recrive more definite consideration. Prior to 1°63 the banking institutions of the - country. with the exception of the Mank of the United Keorgt Ajo Fert bg, Eo were subject to Sta‘e aul were Siaie snsiitutions, over whiod the Gea- eral Goverame nt terference. wi! 3 id no decision of The courte jeree to tb doustiva- Mop ality of their tsauee, were a) Soop *itrr. the commencement war, it be-- came maniiest that a system of internal taxa- now a would be no he proposed troller of the currency, in his accompanying report, to which the attention of Congress is especiaily asked. If an with the bank. Account were opened +, and they were charged with the interest on $300,000.40, and the losses sus- tained through those th credited with the interest notes beld by them asa at have tailed. and on the United States permanent reserve, ‘with the taxes paid by them to the Government aud the State ing Only whi a 0 disbursirg public mar and with tained that (he banks were United States. It is not for the Secretary to dwell bas been saved in 4 commission ver- msterring Mey,it wonld be ascer- ROt debiors to the necessary, however. 1 on this point, as nis main objection to the substitution would not be semoved if eaving of interest would be eifected by it, Regarding as be United States noves im thi does the issue of the e first instance as bay- ing been a misfortune, and their con inuance us 8 circulalng me shall be sieadily reduced. chiet, the Secretary can cums auces that would sue Thece depreciated bi iem vu ss the volume . As fraught with mis- conceive of no cir- justify a further i ui legal tender nore:, HOUW i) Dstopding the recuction that has jaken place, still stand in the way of a retarn to specie payme : @ substitution of ‘hem for bank notes Would be regarded by him and by the country as a dectara bed been indefinitely pos: Uon that resumption tponed. If those now outstanding sbouid be retired at tne rate or only four mi per month, the amount iu Acgual Cireulation will foom be so re- duced that they may not seriously re- tard the restoration of the true mens- ure of value. If, on the pretence, or for’ any pv: conirary, under any Tpose whatever, their volume shouid be increased, especially if they should be made the sole paper circulation of the country, @ false measare of value will | be continued, speculation will be stimualaied, and t industry will éecli imeurred that flnancia) obtained by a revulsion, Upon the material intere country no one can estimate Suck a reval- sion the Secretary ts mo and he therefore cannot tion substituting the great risk be | health will only be | the effect of which | and credit of the Saxton $9 Prevent: | Approve the proposi- Motes of the W hited all be accomplished States for ifiose of the National Banks, but recommends that the policy of contraction be continved. The apprehenéion thi i‘Lembarrass bealtby trade i: Bt this policy | in his yudg- ment untounaed. Legitimate business bas not suffered by the curtailment which has taken place within the last tw. ‘Oo years, nor will it perms nebtly suffer by such a contraction, pru- deutly enforced, as may be necessary to bring the precious metals agam into What business What enterprise nires reulation. | 1s & stable currency. lemands is the assurance that it sball not be balked of its just rew: rds by an unreliable measure of vaine. ‘The next subject to be coi tion with the permanent xpenses payments, ts ibe maimtenunce of the involves the necessity o: tanh, which and stable revenue laws, idered, in connec- Tesumption of specie ablic wise impartiatiy and rig- crously enforced: econcmy in the public ex- penditures: and a recog ion of the obligation of the Government to pay 11s bonds in accord- ance with the understanding under which they were iseued. The re: Dpen thi neces ks of the Secretary in this report | ject of ihe public revenues must y be brief and general. Fortunately | the accompanying reports of the Commission. | Tevder sny einboral are needed to develop the great eubject on bis part unnecessary. re of tbe Revenue sre so full and exhaustive | discussion of this Itas trequently urged by ibose who agmit | that the currency fe redundant, thatthe coun- Uy is not now in a cond: ition to bear further contraction; (bat its growth will soon render contraction up pecestary to itself, will rapu tent as to require the eighty-eigbt millions of and fractional currenc; bythould Cred millions of Bank notes, tor i fortunately curr je @ financial di y increase t 3 th three hundred avd | United States potes | the ‘three bun Dow outstanding, T And peedful accommodation. No ing can be more fa! lacious than this an- ular ides. An eease which retards | srowth inetead of encouraging it; which stim. ul speculation, put hee! FOw th ie to be secured the disebar a 3 r] whe tban sily so wher ts, ‘berefore, of great diminishes laber. A the removal ahd eepeliation cant Of the patient will | | to a gre jaweebould be stable. Py this, it wot menat tbat sbould be unchangeable; bet thar while, from time ‘o time, they may be modified to meet the chang:ng condition of the coustry. the primcipies apon which (Bey are based should be +o wise spd just as to give to them permanency of character, Perb: as much mischief DAs reauited from ‘me frequent cbapges im the tart laws of «be United States | as from their cetects. From the time when the first tariff was framed in 170 up to the Inet ression Ess (he teriff Das been 8 frnit- fal sebject of discussion, and at no period bas tbe policy of the Government in regard to eur- toms Guities been regarded x» definitely set- Ned. There bas beep a constar: etruggie be- tween the advocates and epponents of pro- tection free trade, the ascenaency gener- ally being with the protectionists. The taritis Of T8186, Of 1984, 1598, 181%. and 1561, Were all of igbly proveetive character Those of 15st Aud [Si reduced the duties targely, and looked | 1% the direction of free trade. So even! wever, have parties beep di- vided, unat alt} erally been m force, at mo period from 178 to the present day bave importers .nd manufac- turers bad any reasonable Ascurances thai ex- | istipg tari? jaws might not be suddenly and materially altered. That theeifect of thee +, CAL MOL be questioned; that it bas not been disastrow peop le of the U ted Stotes to adapt their business to the policy of the Government, whatever it may be. The frequent changes cf the tariff laws are atiribu- table to the fact that in nome of them has reve. nue been the principal object. There hes never beep inthe United States a strictly rev: tariff, and consequently there has been no bility im the tay Up to I561, tae rewe- bues from customs. ler ABy scale of duties Ado} ted. were sufficient to defray tae expenses of the Government, and therefore the ques. Uon, POW eo interesting, was hardly a promt- nent ome. In the present financial condition of. the country lirge revenues are indispensa- ble; and in adjusting the present tariff the question of revenue must necessarily be the «Bestion of paramount importance. When the Government was substantinily free from debt, and the public expenditures were small, as was the case before tne rebel igh protective Iaws bave gen-_ videG. and the ay: Also evioent want be More efficient service 18 to +ecnpe Bier domoralinaion, ‘The ivternal revenurs ot Large Would Dave largely exceeded the eetimnine bet for the failure of the revenue officers ts ony eee the taxe Wed iguors. Triv fanmcs | is well Known w the COURITY. And tn the cause of ceep regret and © ee miliation to the Secretary as woil a» to te Com misrioper The duty upon distiled tiqnors o #0 tA! tere bas been A tempiation w avoid Sew payment, which bas, to a grest exient. Ger moralized bor® the msnuiacturers and the of. fleets of the revenue. A tmx of two dollars per gallon upon &0 articie which exe be made for thirty cents would be diffiewlt to collect, ever im A small county, where apPolotmrnts TeVEDUF POsiLOMS dep-nd wpon wert alone, d where aisbonesty (: vromptly and severe. ponisbed. It is eepeeiily aiMieult im a Drew: ly cConBIry 60 vast ns the United States, where | politics are apt to inflmence, if not to: control, selections for offer, and where smill im evading | the requirements ot Inws is not among tue least de cided characteristics of the peop'e ‘The necessity of economy im {Br pavire ox - pecditures im the present fimancial covd:tioe, Of te country is so Spparemt that no sugees. ons trom the Secretary are needed to impress t upon the attention of Congress, Taxation is Weighing Desvily upon (he people. and they have s mgt to demand, and are d-maad- ing, that their neceesary burdens shall mot be increased by unnecessary expenditures. Pub- lie economy is 11 uations. a Tare virtmr, jar (nth (at aaons whck are most deeply 1 debt. and whose affairs ought, therefore, to be most pradendy maa- nged, are the very nations where thr i@ast rconomy is observed. This truth, so saterest- ing end instructive to the people of the Mailed ‘States at ihe time, ts largely atrritet- Abie to (he Well Known facts that (he coutract- ing of large pudlic debis if omavoidabiy at- tended with impradent if pot reckless expen ditures. And that when those mtrusced witP or possessing governing power Rave once en- joyed the luxury of using oF expending freely the moneys ander ther comtrel, (and this is Hon, & revenue tariff, properly adjusted to the Public necessities. would have been a low tariff. But now, when a heavy debt and lib- eral expenditures create a necessity pene revenuts, & copsiderabie portion of must, for some years to come, be derived from customs, it is difficult to perceive how, with- Out excessive imporiations, a strictly revenue tariff can fel to be a high owe. itmay thas turn out that the necessities of the Govern. y give incidentaily to American man- Fs the protection they are s o require without special jegisiation—always Odious and generaliy unreliadie—in their be- bsif Lpasmuch as large and permanent rev- eunes cannoi be realized unless lawsare so framed as not to bear heavily upon industrial pursuits, a tariff which, harmoniung with in- ternal taxes, should year by year yseld the Jargest revenues would undoubtedly prove to be the least prejudicial to natiopal growtn and prosperity, A bigh tariff, by reducing im- Pportations, or by opposing importan' branches of trade and industry which are subject to in- terpal duties, migbt prove to be as nnfavora- bie to revenue asa low onr, and equally un- suited to the public necessities. The present tariff, althourh a bigh one, Das not proved to be protective. while, for the pret two years, it bas been bighiy productive of revenve: bat t's ferture to protect those interests for whose benefit it was in @ great memsure framed, the large reyenues which bave been from it, do not prove it to be im any jn. & revenue tariff. It bas tailed to give to American mannfac- | turers the pretection it was intended to afford, ard tt bas yielded mutch latrertevenn’s than Were anticipated, became tbe Ligh prices pre- Yailing w the United Sates bave stimulated impor'auons, It dees hot follow. because 4: is prodmeing larze revenues now, that it will voLnnne to doso When business and the cur- rebcy *ball de restored to a heal hy condition, The ume OR Come When tbe United Nintee wil ana oy ae MB vorabie on y to seil in, AGG When it must pay tor whi Purebaces, not im its bonds, but in is own "productions. In order that the present aTiff sheuld be # revenue tariff, important Mocifiesvone will be necessary, which cannot be mtettigently made uniil business crass to be subject to derangement by an irredeemvble, currency. The Secreary dors not. recommend 4 complete revision of the the present session ture of it, amd some matters connected with It, which require early attention. ‘The experience of the Department discloses mavy disadvantages attendant wpon the c- lection of dwies on imports when the rates are high and estimated on an of walorcm basis, For the collection of such dues, machinery more of less complicated is necessary for the Verification abroad of in voioes of importations And for the examination and appraisement of merchandise on its arrival in this country. In every instance & comparison is required between the in voice estimate and the general value in the principal markets of the county whence a commodity is expéried. Toe dif- ficulty of asceriaining tbe foreign market Value, especially in cates where a commadity is iactured expressly for exportation. affords mpting opportunities for successtui undervaluation, and the high rates of duty offer inducement S100 more than com. mensurate with the risk of detection. Since the passageof the tariff actof March », 1-61, the rates of auty whieh from Is46 w that period were exclusively ad rolurem have on many articles been specific. The system of specific duties appears to bave given much satisfaction to honorable dealers and to officers of the customs for the ease with which the character snd quantity of merchandise im- ported’can be determined: tor the uniformity with which duties may be assessed at ditferent ports; and particularly as it precludes the possibility of fraudulent nodervalmauone Wimout Tecommending an exclusive adopiion of specifie duties, the Necretary would sug- gest for the consideration of Congress whether the sysiem might not with propriety beextend- ed to all commodines on wRich the duty bears 4 large proportion to the yalue, or of which the foreign market price is subject to great Nuctuations. oF is from other causes with difi- culty ascertained. The Special Commissi of tLe Revenue will iu bis report result Of his inve-ligations fs 19 the extent th ‘Which the ad valorem rates of the present tare | iff can be advantaceously converted into cor- | Tespouding specific duties. | Gur commercial relations with Spain and | her colonies under the actsof July 13, i=. and June 30. 1-34, particularly so far as they relate to trade with Cuba sud Porto Rico, have been many yeurs the source of much perple vy ond Bave given rise to frequent discus- siont. The acts shove clied were designed iatory measures to induce by 4 scrt of co- ercion @ relaxation of the extreme protective system adopted by Spain im relation to her co- | jonial trade. Not only have they entireiy tailed to produce the desired effect, but their operation has proved on the contrary posi. | Uvely injurious to our iuierest in every re- | spect. Their eifect, in coumection with Npan- ish exactions, has been to drive the creater part of Gubsn and Porto R rade trom our Markets to others where the same policy dors | uot prevail. The countervailing system thus brings noben- H efit to our shipping mrerests and largely cur. | tails our commerce, which. considering the | proximity of these islands, ebould include the | areaier part of their foreign traffic. It i . therefore, wor:by of grave consideration | whetber cound, enlightened policy dors not dictate the At leust of the act of 1834. The shipping interest of ihe United States, | Gegree pros'rated by the war, has bot revived during the past year. Our ship- yards are, with raze exceptions, inactive Our surplus products are being chiefly transported to fore gn countries in foreign vessels. No change for better Das taken place since the Igst report was made. On the con- trary, the indications are that the great spip- building interest of the Enstern and Middle States bas been steadily declin and thar consequently the I'nited States 18 gradually ceasing to be ® great maritime power. A re- turn fo speci paymen's will do much, but will not be sufficient, to avert this declension e activity to our ship-yards. The ma- which enter gnto the construction of vessels should be lieved from raxation means of drawba. or if thie may be regarded as impracticable, subsidies aigh allowed it ‘are ob- Jectionable, then it is recommended that alt Testrictiops upon the registration of foreign- removed, so that the United States who cannot pro! \y build vesaels, may be permitted to purcbase them in the cheapest mar! i ‘The Special iesioner of the Revenue, since the adjournment of the Thirty-Ninth Congress, has been actively zed sult of bis aw to Congress at an Commerioner wit ernment question industri most e "and secure great « - in taahaminieursion of sla ea itquite be as be! G Lede for the ne oe more thee commend ey in must continue te sh it 17 cat ae ay crams ‘Mast be relieved from taxation, tn ofder that always the case during the progress of ex- pensive wars,) proper ecopomy is afterwards exceedingly dificult to be enforced. Thes, Bationnl debts become cBronic, and efforts we TeGace them are rarely snccessial ‘The debts of nations the most heavily dened, ipstead of being stationary. incresee. sight be tn the it por. nited Sistes should net. like that of most other nations, be per- petvated by habits formed during the pertod of its creation. It is large, but fortumately xt bas pot yet become chronic. It was mourtea under the pressure of a war so vast and so momentous. that yom Bo tp 8 targe degree, lost sight of in Absorbing Public interest which it excited. It is undeniably formidsble im amount, but the experiences ot the past two years, during which, under th most unpropitious circumstances. 1 has deem largely diminished, must satisfy the least sen. guive that the reduction of It cam be continned, and that, evem with diminished taxstion. i cap be totally extinguished within the preseat century, if @ rigid economy, whieh, perhap: cculd “not pe practiced during the war, am: Unfortunately, bas nol been practiced siner, is heresfier taith entoreed in all or: ot oblic service Extravegance im the acminis.fation of the Government Bus sot become fo fixed ns to be rond correetion: There ts nd substantial dificrity in the way of pubhe economy now, bat there may be « lew years tence s Rot proper, perbrp for the Secret regerd to the precise manner in which +tepomy shal! be enforer bot be weetores fuegest he army. at the ear prac bereduced to the mintmom And preserve ob along the lines of the expenses of she I: ry of the Treseury co advise om vavy te feduced, as farses can be done consti ty with the proteciion of owrcommere the Inainier tour reparation a 3 am ime pow at br that obes of (be c.yil service:th: PAvioent of damages which were retrenchment bet able incidents of wurtbat there b- noeddition al gre Atlrosor. and no cousidersth conations ef any chsracter unless, mn ppropriation, » epec be ievied for their payment Buribe public tatth does pot dependatoee SPOR Sdeqhste revenue 1nws, OF UpoN econo my ip the xaministration of the Government it rests also mpon the observance Of comtracts tw the spirit ss well as in the better. Im tact Wi'bout this there will be neither effictext na Mintstration of revenue /AWS DOT FcoBoWY ta expendunres. Notaing but absolute insolven ii savefrom the infamy of repudiation » bal dors not pay its debts accoraing to the understanding at the Ume (bey were com- Tacted: and when & nution voluntary wio- inies this understanding, it will soon ® ene- bir, from the very effect of 1s own exampie, to +DloTee its Tevenve IAW: and its expenditares will only be checked by its imabtlity to collect. How much of the demorsiization whites exists om the revenue service of the United Stues ts stributable to the failure of the Gover: © redeem the legal tender notes xecording to ‘hear tepor, would be an interesting subject of inquiry, but hardly approprinie in a comma- mication lige this, The Secretary queres from his report for tbe year I65, and goes on to in- quire to What is ibe Untied States pledged » regard to the Public Dept’ Is it not that it Shall be paid according tothe vodersiandimg between the (+0 ana ‘he sub-cribers to ite loans at the time the sub. cTAptions were solicited apd obtavned | Aud can there be apy question in regard “ ture of this Bodersianéing ’ Was it not th while the imterest.besrimg notes should be converted imto bouds oF paid in iawtul money, the bopds shoula be paid. principal as well as vuterest, in cola! Was not the the nuder smmoing of the Congress which passed the joan Dills and of the people who foraished te norey! Bid any member of the House or of the SeBate. prior to i864, in the exhanstwe Siscursion Of these bills, ever intimate that the bends 1 be issmed ip accordance with (heir tous Migbl be pla, when redeemable, a depreciated currency. Was there a singie subscrib-r to tbe five-twenty bones or to tne seven and threr-teuth notes, whieb by their \erme were convertible ito bonds, who o@ pot believe. and who Was not giveu w under. stand by the agents of the Government, trat | both ihe principal and interest of these bonds ‘were payable in cot ppose tbat the people of the United Sintes, self-aac- rificing 88 they Were in the support of the Gow. errmen', would bave their stock, their innés, the products of their farms, of their factories ard ‘heir shops. and invested the proceeds im ‘ive-twenty bonds snd seven and three tomtm Boles. Convertible into such BONGS, tt they mad weCerstood that these bonds were to ve re- deemed atter five years trom their respective ales \m & Currency of the value of whieh ¥ could form no reliable esiimate? Would ¢ Secretary of the Treasury, or would Coa. S—when the tae of the nation was in tbe balance, and when a failure to Taise money for the support of the federal Army weuid Rave been smecess to the revei- jou and roth to the Union cause—bave dared to attempt the experiment of raising mouey om bopd= redeemable at the pleasure of the (ow- sToment atter five years, ama currency the convertibie value of which might not depend "pon ihe solvency Of the Government. bi upon the amount im circulation! No such ur dercanding existed, and fortuuniely ao ch experiment was tried The bonds were Rego"iated with ‘Re definiie understanding that 'bey were payable in coin, and the seves and three-tenth potes with an equally defi- We Understanding that they were con vertibie ®t the option of the holder imto boadset @ ' Does any one su; yen! of MS just Obligations to coutractors pea to tbe gailan: men by whom we nanon bad bern saved. Good faith and public honor, which to a pation are of priceless worth, re- wbire tat (bese coutrac’s ahould be complied Sith im the spirit in which they were made. The boiders of our bonds at homeand * Do urdersiand the charac’er of the ed Siates and the erealuess of the national resources, Ought DO! lo need Ao sseu- rapce that they Here remark g : 3 ve H i f H | & 3 Py 3 i z ‘ % fs a if : them «+ f i of a fee! 3 is i Pati b i j 3