284 



FINANCES OF THE UNITED STATES. 



bearing a low rate of interest. Such bonds should 

 run for a longer period of time than those now author- 

 ized for refunding the interest-bearing debt, and 

 should be made available to national banks for de- 

 posit to secure their circulation and other liabilities 

 to the Government, and should bear a rate of inter- 

 est so low as not to cause too rapid absorption of the 

 notes. It seems probable that a bond bearing in- 

 terest at the rate of four per cent, would invite the 

 funding of a sufficient amount of legal-tender notes 

 to lessen materially the sum of gold which, in the 

 absence of such provision, must be accumulated in 

 the Treasury by the 1st of January, 1879, to carry 

 out the imperative requirements of the act of Janu- 

 ary 14, 1875. If it be apprehended that authority to 

 the Secretary to fund an unlimited amount of notes 

 might lead to too sudden contraction of the currency, 

 Congress could limit the amount to be funded in any 

 given period of time. The process being in no sense 

 compulsory as to the holders of United States notes, 

 and the rate of interest on the bonds being made 

 low, it is not probable that currency which could find 

 profitable employment would be presented for re- 

 demption in such bonds. Only the excess of notes 

 above the needs of business would seek such conver- 

 sion. Authority to the Secretary of the Treasury to 

 redeem and cancel two million of legal-tender notes, 

 per month, by this process, would greatly facilitate 

 redemption at the time now fixed by law, and besides 

 would have the advantage of publicity as to the ex- 

 act amount to be withdrawn in any given month. 

 Bonds issued for this purpose should be of the de- 

 nomination of fifty and one hundred dollars, and any 

 multiple thereof, in order to meet the convenience 

 of all classes of holders of United States notes. The 

 faith of the Government now stands pledged to re- 

 sumption on and after January 1, 1879, and to the 

 final redemption and removal from the currency of 

 the country of the legal-tender notes as fast as they 

 shall be presented for redemption, according to the 

 provisions of the act of January 14, 1875. To resume 

 on the 1st of January, 1879, without further legisla- 

 tion, would require the accumulation of a large 

 amount of gold in the Treasury in order to avert the 

 possibility of failure of the plan. Such an amount 

 of gold can be procured with difficulty, and not with- 

 out more or less embarrassing effect upon the trade 

 and commerce of our own and other countries. The 

 present abundance and cheapness of both currency 

 and capital present a favorable opportunity for the 

 withdrawal and redemption of a considerable part 

 of the outstanding legal-tender notes, thereby mak- 

 ing easy and effectual the redemption now pledged. 

 Such withdrawal of legal -tender notes, thus dispens- 

 ing with the necessity for accumulating gold in the 

 Treasury in proportion to the amount withdrawn, 

 would tend to appreciate those remaining outstand- 

 ing, and make it easier to protect and keep in circu- 

 lation the silver coin now authorized to be issued. 



The act last referred to is an express recognition 

 of the duty and obligation of the Government to re- 

 sume specie payment at the day therein named ; and, 

 however widely different may be the views of intel- 

 ligent persons upon the means adopted by Congress, 

 [t ^J&fffi^S to know that tbe end sought to be 

 reached has met the concurrence of the country, and 

 that a majority of the people, wherever the matter 

 has been publicly and fully discussed, have signified 

 their approval of the determination of Congress to 

 be faithful to its pledges, and to relieve them of the 

 ills of an irredeemable paper currency. 



The act in question not only make's express pro- 

 vision for resumption at a fixed date, but commits 

 the Government to the use of all such means as may 

 be needful to that end. If experience shall show 

 that the means provided by Congress need to be sup- 

 plemented by further legislation for the easier and 

 more certain accomplishment of the end, it must be 

 assumed that Congress will not suffer the great pur- 

 pose to be impeded for want of such additional legis- 



lation. The act confers large powers on the Sec- 

 retary of the Treasury, touching the issue of United 

 States bonds for the purpose of procuring the supply 

 of gold necessary to execute such of its provisions 

 as go into immediate operation, and to provide for 

 the redemption in gold of United States notes out- 

 standing on and after the 1st of January, 1879. In 

 this respect the power conferred on the "Secretary is 

 ample ; but if, for any cause, it should be found im- 

 practicable to accumulate in the Treasury a sufficient 

 amount of gold to carry out the provisions of the 

 act, the Secretary is left without the choice of other 

 means to accomplish the end. It may, perhaps, be 

 doubted whether the process of accumulating a large 

 amount of gold by a given time could go on without 

 meeting opposition from the financial powers of the 

 world. It is safe to say that so large an amount of 

 gold as would be required to carry out the purpose 

 and direction of the act cannot be suddenly acquired. 

 It can be done only by gradual processes, and by 

 taking advantage of iavorable conditions of the 

 money market from time to time. 



The loss of interest on large sums hoarded in the 

 Treasury for a considerable period in advance of Jan- 

 uary, 1879, is a consideration not to be disregarded, 

 although it should not be permitted to outweigh the 

 benefits to result from full and complete execution 

 of the act. 



The coinage for the fiscal year was as follows : 



The amount of bullion received and operated 

 upon during the last fiscal year was 



Gold $43,152,584 50 



Silver 18,804,406 07 



Total $01,456,990 67 



Deducting redeposits, bars made and issued 

 by one institution and deposited at another, 

 the deposits were 



Gold $88,556,298 90 



Silver 16,070,626 54 



Total $54,626,920 44 



The silver coinage consisted of 



The principal sources of revenue to the Gov- 

 ernment are the receipts from customs and the 

 collections of internal taxes. 



The receipts from customs for the year end- 

 ing June 30, 1874, were $163,103,833.19, and 

 at the corresponding date of 1875 they were 

 $157,167,722.35, a decline of $5,936,111.34. 



The receipts for the first quarter of the cur- 

 rent fiscal year were $44,233,626.25, while for 

 the corresponding period of last year they 

 were $46,651,200 JO, showing a decrease of 

 $2,417,573.85. 



For the months of October and November, 

 1875, the receipts were $23,936,950.23, and 

 for the same months of last year they were 

 $22,755,811. 



