Rensselaer Union, Volume 5, Number 12, Rensselaer, Jasper County, 12 December 1872 — Report of the Secretary of the Treasury. [ARTICLE]

Report of the Secretary of the Treasury.

Since the last annual report the business of nepotiatinK the sale bf $200,(4X1,000 in 5 percent, ponds, and the redemption of $200,000,000 of 6 per cent. 5-20 bonds has been completed, and the accounts have been settled by the accounting officers of the Treasury. Further negotiations of 5 per cent, bonds will now be made npon the basis of the former negotiations. I think it expedient, as a means of giving an additional status to authorized by the Funding act of July 14,1870, and additional security to the owners, that registered bonds of every issue shall be made convertible into coupon bonds at the will of the holder.- When this privilege is granted the desire to convert them will cease. " OCR FOREIGN COMMERCE. The details Of our trade with foreign countries, as represented by the returns of the Statistical Bureau, are unsatisfactory. From these returns it appears that the imports of merchandise for the Used year ending June 80,1872, were $626,595,077, and the exports estimated in gold were $444,046,096. showing a balance against the country of $182,548,991. This balance lain some degree apparent, rather than real. On the 30th of June. 18.1, the ▼alne of goods remaining iri warehouse was $68,821,659, while on the 30th of June,lß72, it was *122,211.266, showing an excess at the close of the last fiscal year of $43,886,607 Deducting this excess we have a balance based upon the actual consumption Of the conntry of $128,662,884. From this ,i further reduction shonldbe made of *gy3jUm being the excess of exports over the imports or gold. After these deductions, there still remainsan adverae balance of $62,528,539. , The adverse balance has been met, probably, by freight on merchandise carried in American vessels, profits on exports made on account of American merchants and shippers, the Sale of bands abroad and investments in the United St’ates by the inhabitanta of other countries, . • - . The exports of merchandise for the year 1872 were $13,298,933 less than for the year 187 L The exports of wheat, flour, raw cotton, cotton manufactures, geld and silver, fire-arms, manufactures of leather, illuminating oil and beef, fell off $82,066.325; while there was a gain of $68,767,392 in the exports of corn, furs, hides, skins, bacon, hams, lard, leaf tobacco, manufactures of iron, wood, leather, and many minor articles. There was an increase of exports in every branch of manufactures except cotton, leather and fire-mrms. The decrease of our exports in wheat and wheat flour waa $12,000,000; raw cotton, $37,000,000; manufactured cotton, $1,250,000; gold and silver, sll,600,000; fire-arms, $12,000,000; manufactures of leather, $600,000; illuminating oils, $8,600,000: and ThenatUdes of imports show an increase of $700,060 in coffee; slß,ooo,oooin sugar; nearly $6,060,000 in tea; nearly *B,ooo,ooo in tin plates: more than $171100,000 in raw wool ; $20,000,000 in pig iron; $i0, 000,000 in manufactures of iron; $5,000,000 in manufacture© of cotton ; $4,000,000 in manufactures of silk, and about $7,040,000 in manufactures of wool The statistics are not represented as affording a basis for legislation, but rather because they are exceptional) in character, and not. likely to be repeated. "3 OOAST SURVEY. The operations of the Coast Survey, as well as those of the Light House Board, appear to have been seonomifolly and efficiently managed. THE REVENUE MARINE consists of 87 steam and 6 sailing vessels, carrying, 40 guns, and manned by 196 officers and 869 men,' This service has constantly efficiency and In the economy of its management since the summer of 1869. The COM of maintaining the rerenne marine has been reduced from $1,i!93,66L67 in 1868 to $980,84331 for the year ending June 30, M* ■ I V- "

From the report of the Supervising Surgeon pf th* : ‘ . MARINE HOSrITALE ' , * 11 Appears that branch of the public service is in a satisfactory condition. During the last fiscal year 18.156 patients were treated In the several hospita)* of the country, at an average cost of about 97 cents each per dav, or a total expenditure of (mM68.11, against' a total expenditureof the.preceding year of $153.08142. or an average coet per patient of $1.04 per day. The increased receipt and diminished expenses tor the last fiscal year, as compared with the year next preceding, show a net gain to the Government of $56,819.21. During the same period the number of districtsin which relief was furnished was greater than ever before, and the salaries of medical officers at several of the principal ports were increased. The financial improvement shown is chic largely to a more careful scrutiny of the applicants for relief, tothe rejection of those . who were, not entiLled under the law, and algo to the greater vigilance in 1 collecting the hospital due*. LIFE BOATS, ETC. From the appropriation iof $200,000. made April 20, 1871, for more effectually securing life and property on the coasts of New Jersey and Long Island, seven of the old life-saving stations have been repaired and enlarged, and sixty-one new ones have been built, and new apparatus, sufficient for ordinary use, has been proeured.for tile largernumber of them. STEAMBOAT INSPECTION. The act of February 28, 1871, to provide for the better security of life onboard of vessels propelled in whole or in part by steam, has not been in operation a sufficient time to test 'its vdlne in all respects, but the result. 111 the main, is satisfactory. The Supervising Inspector General, in his animal report, reesmmends several alterations in the law, not affecting its character literally. NAVIGATION ANII CUSTOM LAWS. The Secretary favors the consolidation of the navigation and enstom laws at one of the beet means of realizing the benefits of the protective policy of the Administration, CURRENCY Undcr this head is a rehearsal of the advantages enjoyed under the present laws controlling the issue and circulation of the currency of the country. It concludes as follows: The argument in favor of a paper currency, composed in part of rutted States notes and in part of National Bank notes, is'strengthened by the &1d which may thus be furnished in resuming and maintaining SPECIE PAYMENT. In tiie view I am now about to take, I exclude, the idea that the Government will ever abandon the issue of National Bank notes and undertake the issue of United States notes in their place. The remit of snch a policy may be foreseen. The people, deprived of the facilities for business afforded by banks, would seek relief through State institutions, anti, without much -delay, Congress would concede to them the right to issue notes for circulation. This concession would be followed by a surrender by the General Government of all control over the paper ci-('il-lation of the country. The true policy will be found in continuing’the national hanking system, without, however, yielding an increase' of its issue in proportion to the volume of Government paper in circulation. There arc two effectual and certain ways of placing the country ill a condition when specie and paper will possess the same commercial value. By diminishing the amount of paper in circulation the difference between the commercial value of paper and coin will diminish, and by pursuing the policy the difference will disappear altogether. All legislation, however limited in its operation to the paper issues of the hanks and of the .Government, whether bearing interest or not, and which in effect shall tend to dimlnishthe market value of coin','wlllffiie found, uprin analysis, to contain a plan for controlling the volume of paper currency, and all legislation so limited which does not contain such a plan, will prove ineffectual. Accepting this proposition, and believing that the country is not' prepared to sanction the policy of contraction, It only remains for me to consider the means by which the value of our currency may be improved. The hasis of a policy of improvement must be found in a steady refusal to add to the paper in circulation, until It is of the same value substantially as coin. This being accepted as the settled purpose of the country, there can he ho permanent increase of differeaec between paper and coin, and an opportunity will be given for the influence of natioqf 1 causes tending upon the whole to a belter financial condition. We may count first among these the increase of population and its distribution over new fields of business and labor. Secondly, in the South especially, the number of persons having property and using and holding money will increase. Next, we may anticipate more general use of paper in Texas and the Pacific Mates, by which, practically for the rest of the conntry, the volume of paper will be diminished and the quantity of coin increased. Two facts tending to produce an equality of value in the inflti ences of these natural causes will be counteracted in some degree hy the increasing facility for the transfer of money from one point to another, and bv the greater use of hank checks and certificates of deposit. The rapid transit of merchandise in bringing the period of its consumption nearer to time of its production is an agency of a similatsort. Giving these views their full weight, I am prepared to say that the experience of the last three years coincides with the best judgment I can form, and warrants the opinion that, under the influence of existing natural Causes, our financial condition will gradually improve. During the last fiscal year there were several circumstances tending to counteract the natural course of affairs. Onr exports of cotton fell off thirty-seven million dollars, and there were excessive imports of wool, tea, coffee and sugar. The stock of wool in warehouse on the 30th of Jnne was saffleient for six months’ consumption ; of sugar, for four and a half months; of coffee, for five months, and after for twelve months. In the ordinary course of trade, the Importation of these articles will be small during the current year, with a consequent favorable effect upon the balance between this and other countries. This anticipation of the wants of the country, in connection with the decrease .of our exports, augmented the balance of trade; - created an active demand for coin, and advanced the price. Notwithstanding these adverse influences, gold has averaged substantially the same premium from Jan. 1 to Nov 1, of the present year, and for the corresponding period of 1871. Not doubting that natural causes will in time produce the result sought for, it is yet advisable to bring the power of the Government in aid of the movement as far as practicable. The revival of our commerce is one instrumentality, and, perhaps, the most efficient oneof all. if the annual earnings of American vessels were SBO,O 0,000 instead of $30,000,000, the difference in the- amount of exchange available abroad would meet a large part qf the adverse balance on any ordinary year. The experience of Europe tends to.shffiv that the ability of a country to maintain specie payments is due largely to the condition of its foreign* trade. —- Next, every measure which increases or improves , the channels of transportation between the seaboard and Gotten and grain growing regions, of the country, ©r lessens the costs of freights, adds something to our capacity to compete successfully in the markets of the world. Finally, those measures which entourage American manufactures. especially of .iron, wool, and cotton, and discourage the importation of like products, affect favorably the balance of trade and help us toward Ihe end wo seek. This statement in these words is a general statement of a policy that, in my opinion, will aid the country in reaching a condition where it will he practicable to resume and .maintain specie payments. Anticipating that day, I anticipate also that the burden of resumption will rest upon the Government. There are now more than nineteen hundred banks in the conntry, and 1 cannot imagine a .ondition of things so favorable, for a period 1 of years, as to enable them at all times, to redeem their notes in specie only. Withdnt proceeding, to the diseussipn of the subject in detail, 1 think that all will have been pained that is of value when the Treasury shall be prepared to pay the demand notes of the' Government in coin, a’nd the banks shall be prepared to pay, their notes either in coin or in legal-tender notes, and then onr good fortune will clearly 4ppear in this, that our paper currency is not exclusively of National Bank notes, nor exclusively of United States notes. GEOEGE S. BOUT WELL, Secretary of the Treasnry.