Mr. MOltllIlili. Mr. Speaker, the financial questions ofloans, faxes, and currency are so intimately associated that any discussion ofonc may more or less involve the others. It is not my purpose. however, at this time to make an elaborate speech on any of these questions. but to submita few remarks mainly explanatory of the bill before us, with some of the reasons why it should be adopted. It is not in order to allude to what occurred in the other end of the Capitol on Monday last, and I shall proceed as though nothing had happened, and, happen what may, Union men will not subject themselves to the reproach that they forgot they had a country to save. This bill touches what must be guarded as the very apple of the eye —— the public credit of the country. In the past 4 years the magnitude of our financial operations has kept pace as well with the grand movements in the field as with the grander march of human liberty. While the war lasted only loyal States paid any taxes, and we have hitherto taxed only a part of the nations annual productions and oily earnings, leaving unimpaired nearly the entire capital of the country, and now, having satisfied our own people, the world, and even those unbelieving rebels who risked their lives in contesting the fact. of the permanence of our Government, its probity, and its ability, we propose to pledge, not only all of our past accumulations, all of our present untouched resources, but, as it is just that we should do, all our right to the prospective wealth of 36 million people, (carnin, too, more wealth annually than any other fty millions on the globe,) to build up our credit, the unturnished credit of the Republic, in such a way as to obtain the loans we require on favorable terms and at the lowest rate of interest. The preeeutbill is but a patch cit an old garment. The act of March 3, 1666. authorizes the funding of interest bearing obligations, and the esent bill expands that authority so as to inc de nom interest bearing obligations. That is the whole of it in a nut shell. I know it is said the bill confers large powers, and that is true: but they are all confined to exchanging a short debt for a long one, or to the conversion ofan old debtinto a new one when it can be done to our advantage. No new loan is authorized and our whole debt cannot be increased under the new bill a single dollar. But it is also said that Congress should define and mark out a.plan with exact limitations for the Secretary to pursue, and then business men would know exactl whatto do. This would look reasonable if ongreso could foresee the future condition of the country, but not having such “ fore knowledge absolute ” it has not been done for 5 years past, and few real business men have suffered. such men are iron clad, and do not now complain. They are not in debt, and they are ready to discount the difference between fictitious and actual values. Dunn & Co. report, in fact, afar less number of insolvents and a less amount of insolvent debts for anyone of the last 4 years than for almost any year before. In spite of the rav ages of the Alabama and Susquehanna, even marine insurance has been unusually profit able. The country has been prosperous, although Secretaries of the Treasury have not been put in strait jackets nor compelled to disclose in the forefront of a statute their polic for a year in advance. Business men and ankers know that it is the policy of the present Secretary to return to specie payments at as earl a day as can be done with safety, and this oes not exclude all flexibility. whatever may be the circumstances of the country, in the application of the policy. That policy has received their hearty approval, as well as that of the country. It is a true and manly policy. If there are any holders of shoddy or other unrealized adventures who desire more time to “ unload” or to make profitable shifts, the people do not sympathize with them. Gold has ceased to be and paper has become the measure of all values not interfered with by foreign exchange, and being both fickle from day to day and without uniformity from place to place. it is an evil of no ordinary mag nitude. Little of the products of agriculture and none of manufactures will belong found among our exports—only gold and bonds. The gold product of the world for the past ten years has been so great as in itself to de reciate its own value. Everywhere a days nbor commands a higher price; and a bushel of wheat: will never more be sold at the lowest rates of former days. The value of paper de pends not only upon the solvency of the promisor, but upon its abundance, as well as upon the caprice of the markets where it circulates, and the confidence of its holder in its exchange able value with gold. Our aper has depre leiated in value, or has lost a urge share of its lpurchasing power, and we must make it better, {Or it may grow worse. But this restoration need not and cannot be at a headlong rate. The promise, however, of a return to health, to the specie standard, if it could be effected within the coming year, as it cannot he, should not alarm the world very much. When old fell from 286, in July, 1864, to 130, in ay, 1865, it caused no panic, and but few failures. In the month of March, 1865, gold fell 50%., and yet produced no commercial revolution. After such jumps as these without harm, the much smaller step that remains may in due time be overcome without any special strain or catastrophe. Business men will of themselves no harm. Mercantile men are governed by the laws of trade, and they know that these laws must govern even the SecyTreasury. We have been fortunate in our Secretaries of the Treasury for the past 5 eventful years. The storm burst upon the head of Secretary Chase; and its force, never ceasing, had not abated when he was so appaorniatcly called by the voice of the country to the place he nor! so worthily fills. It was a relief to the hearts of a loyal people when a successor commanding so much of public confidence as Secretary Fcssenden was found. These men asked and received. Congress did not stint their powers, and the did not abuse their trusts. t was a time ot war, and they had all its sinews to furnish. Now we have a Secretary— Mr. McCulloch —summoned to his post at a time when its responsibilities presented no paradise to polit ica ambition, whose financial conduct, thus far, has won golden opinions at home and abroad, and whose annual report has been 11 proved not only by a vote in itaelfunexani leg, at a vote of unexainpled unanimity, al but 6, on the part of this House. His highest ambition, I think, is, certainly it ought to be, that of a financier. Fame won in that direction will be permanent. Political power and patronage are ephemeral. Can we not trust im? Here is a bill giving to him the same powers we often gave to his immediate prede cessors, while his task is actually greater. More than a million men have been disbanded, and it remains to dismiss and retire the 650 millions of legal tenders which served so creditably through the war. Our present debt is $2,716,892,152, and during 4 years less than 1/2 of it has been permanently funded. There yet remains ofthiu heavy work $1,657,241,758 90 to be funded. Let no one be deceived. All financial danger is not yet passed, and the perils of high rates of interestand even of cOmInercial revulsions, before all our floating and short time debts shall be anchored in safe harbors, are so up arent that nothing less than consummate skil, with authority possibly as comprehensive in its proportions as that heretolore conferred, can be relied upon to grapple with the work now in our immediate front. The simple question is, will you perpetuate this war made expansion of the currenc and all its illiinitable brood of evils, or will you authorize a financier, who shows himself competent for the task, to retire the excess as fast as sound economy will crmit? There is no danger that this can or Will be done too rapidly., The “legal tenders” will not be retired until after other obligations have been gathered up, as they must be retained to facilitate all such operations. The ten days temporary loan (deposits) of $114,765,840 is one of the dearest. oans we have, though nominally drawin less than 6%. interest, as all bankers (now very well that it is never safe to use more than about 2/3rds of the amount of such loans because they may be called for, and practically whenever money is scarce and really needed by the borrower then it is sure to be wanted and called; by the lender. When money is lenty and twanted, then the Government has no lack of these ten day loans. When it is scarce, then these supplies are suddenly with drawn. In in judgment, this tem orary loan should be pai and never renewed]? Perhaps the certificates of indebtedness should be extinguished next. In time of war such obligations may be accepted, but certainly in time of peace they should not be sou ht. The compound interest notes will be faling due at no very distant periods, and these having a two; fold character, one for investment on one for circulation, might well be chosen for early re demption. Alter this there should be given such latitude as would admit of funding the 7thirt notes even before they are due. Those who fear rash ottem ts at an early re sumptionof specie payments is ould be quieted; it is simply impossible to take at once any very long strides in that direction. This is a process only to be successfully accomplished by gradual and persistent effort. Haste would mar and reta it. Only while currency is plentiful and cheap is it any object to exchange it for bonds; make it scarce and dear and itwrll not be done. The most desirable security—and to be so maintained at all times—must be U.S. bonds. The merest tyro in finance understands these facts, and the Secretary, not being igno rant of them, cannot disregard them. It is true that some hostility to areturn to specie payments is manifested in certain quarters. this to be expected. Any system pro osed by the SecyTreasury, or any hill proposed by Congress not exhibiting facil ities by which the money changers may continue their rapid gains, will meet with noisy clamor on the pretense of injury to the general interests of trade and commerce, and will be dexterously thwarted, unless we place the Secretary where, to use those terms which milit“ary operations have made familiar, he will be master of the situation.” But how master? Only as a minister to do good, not evil; to do what all desire to have done; that is to so, to fund all of our matured indebtedness and cbts soon to mature at lower rates of interest than what we are now paying, and with longer pe riods of time for payment. I am not, Iconfess, one of those always disposed "Out of goodstill to find meansof evil.“ If we ive the Secretary the law, and with it our confidence, it may be of more worth to us than to him. Of course, I speak in the financial sense. If Congress shall practice due economy in its appropriations, as I am persuaded it must and wrll,and it should be found possible to reduce the military service within anything like pur ancient limits, we may hope that the public debt has reached its maxnnum, and that here afler we shall pm as we go. It is a gratifying fact to know that on February 1, 1860, de ducting moneys in the Treasury, the debt was $23,957,628 less than it was October 81, 1865. By the report of the SecyTreasury, at the commencement of the session, it up ars that a deficicnc to be provided for by cans was anticipate of $112,194,497, as well as a further sum of $32,530,901 of Treasury notes, which became due and were paid in December last. In other words, it was expected that, in addition to all other resources, $144,731,848 would have to be an plied by a new loan. But at the present time toSecyTreasury is Oing to be able to get along without any new can for the present year; and if it should appear otherwise hereafter—as I think it may to the extent of 50 to 75 millions—there will be time before the close of the present session to act on the subject. The Secretary estimated the receipts of the Treaury from all sources for the t ree quarters of the year, from and afier September 30, 1866, at $305,500,000; but in 4 months they have reached nearl 2/3rds of that amount, or $182,526,186 l6, as will appear by the statement of the Treasurer, General Spinner, which I will publish with my remarks: Ap rorimatedrremplainto the Trm of the U.S. are;from October 1, 1865,to February 1, 1366,eac oludmgloom. Internalrevonue. "$106,420,2368 Semi annual duty e. 2,009. 71 Customs and customhousefees. 5. 690.111441 War and Navy. sales and repayments. 7,006.4860 Patent ices. 71.4853"; and salcs. 91.%l 80 iscellane 1,031,8670:! mm on com and cottonsal 21125.37?82 F. a SPINNER. Treasurer U.S. Tansunsns Orrlca, lYABHINGIOX, February 5, 1866. In the 1st 6 days of the present month $10,000,000 have been paid to the Army, and the balance in the Treasury at that time was $2,000,000 more than at the close of last month. The increase of internalrevenue above previous estimates it is now expected will be about $28,000,000; and the increase from cus toms will be largely in excess of anything in our history. The customs received in 1% at NewYork alone since July 1, 1805, an rthatso called “prohibitory” tariff which was to “isolate the commerce of the U.S. to make the country a mound Japan,” and circumstances, and one which our revenue necessities have so often compelled as to increase, are as follows, namely:. 89,918,190 i savanna. mamas. U78.186.862 December. January This will be not far from 2/3rds of the amount collected in the whole country. These statements, I think, will besatisfactory evidence that our public debt can be carried with ease, and that if any emergency of sufficient gravity should arise, foreign or domestic, it could even be largely increased without peril. In other words. we are a nation getting out of the gristle and into the bone of manhood. But a permaneut national debt is not an American institution, as our history has already twice proven, and though it may take a number of years to wholly extinguish the present debt, the policy of gradual extinction can be and should be steadily pursued. Owing to the management and treachery of those in power—plotting to deprive the Government of all force or vitality in the immi nent hour of treason and rebellion—the entire receipts of the U.S. Treasury for the year endi June 80, 1861, were only $41,470,209. uLlnion men and Union measures, however, though facing all sorts of embarrassments, changed these sorry figures so that our receipts for 1803 were $112,087,290, and more than twice that sum in 1864, or $264,626,771, and in 1865 the receipts were $333, 714,605, while the actual and estimated re cei tsfor the present yearexceed $450,000,000. an over $500,000,000 if the receipts in gold were to be estimated at their value in paper currency. A considerable trade with the British Provinces, for more than ten years entirely untaxed, may soon, in consequence of the termination of the reciprocity treaty, be expected also to yield a moderate addition to our reve nue, and it is difficult to see why the U.S., long after the im erial Government of GreatBritain has abolied laws iving any preference to colonial produce, should be urged to admit such produce on any more favorable terms than those conceded to other nations. If our entire receipts were to be no more a an average than they were for 1803, 1804, and 1865, an could be wholl devoted to the payment of our national debt, that could al be paid, as large as it is, in less than 12 years; and if the receipts should beequal to the revenues of the present year, and e whole could be so applied, the entire debt could be paid in less than 6 years. We are now dealin with large sums successfull under many a verse coming year will re move some of these disadvantages, and thus lighten our burdens until our complete emancipation from debt takes place. It is always pleasant to talk of removing taxes and to vote against their imposition, especially obnoxious taxes, and there are none that are not obnoxious to somebody. The war being closed, there are some taxes now, many petty supports, which our necessities no longer compe us to adhere to, and they will, therefore, be. ikcly to be abandoned with very great alacrity, and in their place we may have some compensation by a tax on raw cotton. On these points I most cordially concur with the in the main, admirable report of Mr. Wells. Yet I may venture an opinion that Congress will not by any modification of the revenue laws reduce the receipts of the Treasury to any large extent until our debt is permanently funded, and never below the point which will cover our ordinary expenses, the interest on the public debt, and a respectable and genuine sinlring fund of not far from 50 million dollars to be applied to the principal. Small sacrifices now will largely diminish the magnitude of our future incum braces, and what we pay this year will be paid at 75 cents on the dollar. it may cost the round hundred. There is nothing in this bill in relation to a sinking fund, because there can be nothing in the boats pocus performance of setting apart one%. of sums borrowed, through such a compound of trick and science, as to make it run a race with the 99%, and in a few years to come out aheadyet it is to be hoped that the law on this subject, which seems to have been respected by few and obeyed by nobody, will be superseded, and that cer—tain specific revenues—possibl that derived from whisky—will be set apart in some proper revenue bill and up lied annually to the reduction of the principa of our public debt. This would be a sinkin fund that all could understand, and about which there can be no fallacy. On some future occasion, but not new, I may undertake to show with what comparative ease the U.S. can carry its present load of debt, for I feel assured it can be shown that its securities are the safest and best in the world. I earnestly desire that our own people shall hold them. I hope the time will never come when foreigners Will rize our bonds higher than we do ourselves. f, in consequence of our paper being below the par of gold, there is a profit to be made of 30% or any other sum, with interest upon it for years, in investments made in our bonds, I desire the whole of that profit—not less than 500 millions—to c secured by our own people. There is in the bill, to be sure, authority given to make a foreign loan, and such authority has repeatedly been given, though never us, and even power to send an agent abroad has been gran here tofore. That was done in the act of July 17, 1861. The SecyTreasury was authorized by the act of June 30, 1864, to dispose of $400,000,000, or part thereof, in Europe, and, to note the words of the law, “on such terms as e may deem most advisable.” Again, no longer a O than March 3, 1865, the Score tary of the Treasury was empowered to dispose o“f any of the bonds or obligations authorized either in the U.S or elsewhere,and at such rates and under such conditions as he may think advisable." I am persuaded the power to no otiate abroad, if lodged with the Secretary, wi give the U.S. the advantage of an 0tion in the dis oral of a very large amount O and, obligations, that will create competition where it might otherwise be strangled. The power is wanted, not for the purpose of cornering anybody, but toprevent being cornered ourselves. The testimony of both the predecessors of Mr. McCulloch has been that this privilege on our part should be retained, although neither ever used it, and there is not much probability that it will now be actually required. If I thoughtit likel to be used to an extent, I do not deny that should be one of the last to give it any counta nauoe. Our debt abroad is already quite large enough. A loan to our own people, avable principal and interest at home, is very i erent from one which annually drains the whole coun— try of gold and silver to be paid out abroad to aliens and absentees. Interest paid abroad returns no more forever, but paid out at home it breeds in and fertilizes every localit where it is distributed. Besides this, NewYork is getting to be, especially with the large transactions of the Government included, a money center not much inferior to London itself. To day, in NewYork, money, with U.S. bonds as collateral security, can be had at an interest of 4 to 5%. In London the bank rate is 8%, with a prospect of going higher. Our better did labor has added comet i to the wages o labor through out the civilize world, and our usually larger rate of interest has drawn and will draw much of the unemployed capital of the older nations until someting like an equilibrium shall be established. I do not suppose there could be a loan obtained abroad with the interest at more than one%. less than at home,pnd certainly the vsua of our bonds at NewYork Next year will regulate their price abroad. If London affects NewYork, so does NewYork affect London. If the fo prevails in one city, they light up the gas in the other. The loss of time in the transmission and receipt of funds, and the expense, exchange, and insurance, would leave very little to be gained in the terms of a foreign loan. Beyond all this, however, unusual facilities ought not, in my opinion, to be furnished for the introduction of foreign luxuries, or, in other words, for the introduction of merchandise not indispensable to our daily use, and for which, beyond the ordinary mercantile profit, the U.S. are to pay an additional profit of 25 to forty%. in gold in 5 to 20 years hence. This expansion of the credit system is attended with danger. At NewYork alone the gold value of the im orts from July 1 to December 1, 1865, was 77,985,922 more than for the some time last year, while the currency value of the exports was less by $18,846,403. It cannot be doubted that we are liquidating these heavy balances with U.S. gold bearing bonds and the rocceds of recent heavy shipments of cotton. T have confidence that the SecyTreasu, if our bonds must go abroad, will let those who want them purchase them in Amer ican markets. No aid was roiiered to us by foreign nations when such uiii might have been valuable, and having escaped the mortification of seeking assistance outside of our own bound aries during the war, our self respect will be best maintained by continued self reliance, and without attempting to make an American eagle more attractive by dressing it in foreign, bor rowed feathers. Should a large amount of our bonds be placed abroad at the present low prices, whenever they advance to the par value of gold, as they inevitably must advance, then foreigners, like other speculators, may desire to realize their profits, and the bonds will be sent home to be resold. Certainly we should be exposed to the vicissitudes of foreign money markets as well as our own: and a panic at home or abroad would equally betide disaster. Thus doubly exposed as we should be, the resumption of specie payments would be procrastinated and made more hazardous. Let us look at our present condition, stripped of all disguise. Adebt of unwieldy proportions falls due at an early day. There will soon be a ressure for time. If 50 millions should be nded every month from this time forward for 2 years, the process would not even then be completed. Does anyone desire it to be done with less rapidity? Shall we make no provision forthese known exigencies until we are on the very brink of the precipice? and when the compound interest notes and 7thirties fall due, what do those who object to this bill propose? Have they any other resource than the hydro static printing presses of the Treasury and a modest billion of fresh legal tenders? “Take any other shape but that! ” The aggravation of prices in consequence of the large excess of paper currency 18even now oppressive; as keenly felt by all classes, perhaps, as are even our taxes. n addition to all the evils of inflation, we all know that on an exclusively paper currency financial winds blow with resistlesa fury, and commercial men have more to fear from these tempests coming with every changing moon than from any stringency which the SecyTreasury might incidentally create on the golden road to specie payments. The people are not unprepared to subscribe for large amounts of the yet unfunded debt of their Government. They have not set sail upon new enterprises, and the amount in the banks to the credit of depositors is unprecedentedly large. Formerly the accumulation of a few millions of gold in the sub Treasury at NewYork produced a crisis; but now, though over $50,000.000 are thus hoarded, almost enough to pay the interest due in gold: 1 year in advance, it creates no alarm. These facts show that the people, now holding all of the temporary securities of the U.S., are in such a condition that the can convert them with very little inconvenience into a permanent loan. That is all we require. The time is opportune for the work oi the Treasury Dept. Let us not compel it “ to remain idle. Masterly inactivity" will he found to be, as it gvir has been, a poor method by which to pay e ts. The present bill, like the 1st bill introduced, represents the ideas of the SecyTreasury, though modified by is so of time, and, after mature consideration, as received the sanction of the ComWays and,Menns. In presenting it we have performed a simple duty, and it now remains for the House to take such actionas, under all the circumstances, may appear to be wise. Whether we have sunshine or storm, can it be amiss to place our debts in a position that will relieve us from present as wel as future embarrassment 1