Mr. HULBURD. The name of the writer was familiar to all NewYork once. It is Aza riah 0. Flu. g, once comptroller of the State of NewYork. What with fiscal agencies established abroad to negotiate loans, to keep transfer books, insurance, freight, commissions, coin brought back, coin remitted, or purchase of bills of exchange to pay interest, 530., how much will be left of theme%. margin difference of interest? scarce enough, we may be sure, to lacquer over the humiliation of a great nation going abroad and crying to its commercial compeers and rivals, “Help me, Cassius, or I sink l" How often have we been vauntingly told that we are a great, independent people, destined are long to be the nation of the world? What with our telegraph wires and our railroads, stretching across the continent; our steam ship s brining home “ the wealth of Ormuz an of In ” from every soil and clime, for use and merchandise, we have verily believed that our em orium citieswere to be the marts of trade, that here were to be the clearinghouse and money exchanges of the commerce of the world.; Waiving, however, the propriety of all such considerations and even expectations, is it quite certain that our hut inand application will be successful? Would a 5%. loan now probably be well received? While at present I attach no especial importance to the reported discoveries of our consul general at Montreal, that such on animus exists as would gladly concoct and carry out such a scheme, and perhaps now only awaits a fitting opportunity to vent itself, I can easily conceive as quite probable. But from a mere financial standpoint, what is the prospect? In England the bank rate of interest last month was sharp 8%., and our 5 twenties were quoted at 66 to 67. The 1st day of this month the interest rate was lowered to 7, and Federal 5 twenties advanced to 71 and a fraction. Something of this advance, no doubt, is due to our financial exhibits, more to a distrust of the stability of the English funds, caused by the Fenian excitement. Even with this adventitious and at best, temporary aid, granting that our mouthl statements continue, as we expect they willy, favorable, can we reasonably anticipate success for a 5%. foreign loan? we now have such a loan; and it is, and has always been, far below par; indeed, “a heavy flat” upon the market. If foreigners can send their capital here and get 6%. for its use, and the 1%. of difference is not absorbed in commissions, transmissions, &, c., assuredly they will find it out, and do it as quickly and as economically as our Treasury agents. But suppose it is authorized and tried and if it is not to be tried it should not be authorized: for, in my judgment, the less we have of needless, contingent, uncertain, discretionary grants of power, the better suppose, I say, the loan should be put upon the market, and neglected? We have hawked our credit in vain. Or suppose, contrary to probabilities, any appreciablequantity of it should be taken to that extent have we not multiplied and supplied bands and withes in hands that in the future as in the past will not be slow to make use thereof to cripple and to bind us? Instead of legislating to increase the accept ability of our bonds abroad, we may yet see a day when we shall regret inducements had not been stronger and more prevalent to keep them at home. In this connection. perhaps, an item in the financial history of the State of NewYork may not be unworthy of consideration. Between the years 1825 and 1835, when that State forthose times was creating and carrying a large canal debt, the commissioners having its man agementin charge were repeatedly importuned to make the interest on the State loans payable 5 ecifically abroad. They steadily refused. What followed? Depreciation? Neglect? embarrassment? Not at all. In January, 1833, the redemption of the canal debt was commenced bypaying a premium of nine%. on the 6%. stocks due in Ju y, 1837; 18 %. premium was paid on 5%. stocks due in 1845, and 22 to 24%. premium Was paid to anticipate by ten years the paymeknnt o0ll; 6%s due in 1845. Did foreigners neglect these stocks because principal and interest were made payable at home? In 1834 it appeared of $5, 522, 659 of one speciesof stock outstanding, foreigners held $4, 102 975. Neither the time, nor the instincts of men, nor the channels of trade and of exchanges, are so widely divergent from the past that special legislation is requisite to shape and direct and beacon the cEurses and thordugl fares of enterptise and thrift and inicrcst. ha ge amounts our national securities. have already gone abroad. Some estimate the amount at $350,000,000; some place the figures as high as $600,000,000. nerease d, whatever it may be, no doubt by every steamer that leaves our ports for Europe, the lower figures may be found in copveniently large if a panic or crisis should ensue of magnitude and intensity potentenough to touch to the quick the sensibilities of the Old Lady in lhreadneedle street. Would she not in such event clutch and hurl back upon us, reckless of sacrifice, any quantity of our bonds? Suppose such an occurrence should happen when we were in the throes of a financial, commercial, belligerent, or even political crisis. The consequences need not be they can be foreseen without a prophdeet p5icteeyde;; I have never been able to see a national blessing in a national debt. But I am aware the large public debt of GreatBritain has some times been held up in thatlight. Beyond question it is true that it has not been as burden some as under some circumstances it might have been. Owed and kept at home, the interest has been disbursed and employed among and by the subjects of the realm. The government scrip or consols, widely and generally held by the well to do of all classes and rades, have everywhere constituted large num lgmrsof citizens, by direct interest, firm Government supporters. This consideration may Weigh little with us, yet I apprehend the an nouncement that a few hundred million federal securities are now of choice held in the insurgent States by those who whilom were rebels would be hailed as a most auspicious omen. But, it is urged, some operation is needed to clear out of the wa our oating debt and obtain specie to enable us to resume. Without stopping to consider all these suggestions involve, let me ask, do the people, mechanics, merchants manufacturers, men of means, bur dened as they all are by taxes, direct or indirect, wish such a sacrificial prearation made to resume specie paymentsi The present in flated, high priced condition of nearly every staple article that enters into the use and consumption of families bears hardest upon men of small means, small incomes, small salaries and yet I do not believe such persons, even, desire Government to incur such sacrifices and perils as indicated to obtain coin to prepare to get back to the normal condition of gold valuations. I do not say old low rices; that condition we are not again to see w file all the commodities of production are burdened and their prices enhanced by heavy taxation. I No, sir, we cannot expect soon again to see those times unless called to behold widespread I bankruptcy, suffering, ruination. Shall I be told, importation of coin through the medium of a foreign loan is a necessary reliminary step preparatory to a resumption ofvspecie payments? Noone can be more desirous, anx ious, to, hasten that period, by all and every propermeans, than myself. I believe, too, the people desire and expect that Congress, in concert with the Secretary, will adopt measures tending to an early adjustment of prices, business, and trade, to the constitutional basis of values the coin standard and well I know that specie payments inevitably must be tem porary and spasmodic, while large amounts of call loans or short obligations are or can be precipitated upon the market. No sane person ought to expect a resumption unless the banks an Government usher the way. The banks cannot resume until Government leads, and if the half of them are their able to do it and maintain resumption, great relief will be felt in more senses and uarters 3rd one, and a most agreeable surprise will be generally expe rienced. The connection of Government with the national banks is very intimate, if not insep apable, borrowing asit has their capital and giv mg as security and in lieu its obligations. These institutions, generally, really have no meney, means wherewith to make specie payments. If they should attempt it in the present posture of things they could not stand a single business hour without throwing a mass of Government bonds upon the market. It is said on the 1st day oflast January they held in their own right over $440,000,000 of U.S. stocks. Probably at the same date they held of government short obligations full $200,000,000. With such an impending avalanche of some i8650,000,000, potential as GOvernment is, it icould not resume and stand the specie call ten consecutive days. i It follows, then, if we are to have a perma, nent resumption, it must be by the joint and, simultaneous action of the ban 5 and Govern inent. As this is impossible in the midst of a floating mass which at any time may impinge and whelm, that mass must he put one side or for a term of years be merged. Admitting, as I do, the full force of all this, I fail to see in this necessity a necessit that only long bonds payable and sold abroa can be employed for such relieving and funding ur ose. It is not believed, it is not suppose, that a dollar of these short obligations is now held abroad. On the contrary, every dollar is now held in this country, somewhere, by somebody, association, company, or corporation. On the 1st Monday of ctober, 1865, the national banks alone held nearly one 6th of the floating liabilities, ($192, 094, 365) Is it not just possible, nay probable, that other holders now carrying some of these short obligationswonld beable and willing to carry in place of them longer, and, of course, more valuable Government securities especially if made payable in coin at a fixed and comparatively distant future the opportunity was resente petroiotdh em provide ndee only, fbelieve, an that within the last 6 months, has the Secrets, by ublic notice, tested in this direction t cpublic estimation and ability. He offered $50,000,000 of 5 twenties in exchange for 5%. compound notes and certificates of indebtedness. [be whole amount was taken inside the prescribed time, and 5 20 bonds at a remium of 3%. received therefor. Did not the quickness with which this proposal was filled, notwithstanding the remium, indicate what might be expected, i the bonds in exchange had been offered at par 1 AmI to be told the operation reduced 1!. stringency in the money market, an therefore it was inexpedient to follow it up? There can never be resumption of specie payments without contraction, and there can never be contraction without a stringency, a pinch some here. But in this instance no intelligent observer believes the withdrawment of so small on amount of such representatives of value from business influences could be perccptibly felt or perceived in the efferveseing eddies of Wall street. A stringency, no doubt, did exist simultaneous with the Secretarys operation, caused, however, by large calls for currency, to be used in various ways at the South, and in moving western products, the high prices of which required more money than usual to handle them. Judging by that transaction holders of Government short obligations would gladly exchange them for the common 5 twenties if opportunity had been given. Why that operation was not continued, if there existed, as I believe, a desire and a par mm to get ready to resume specie payments, know not. Certainly the power, under the respective acts ofJunc and March, to issue bonds and to convert these floating liabilities, was not exhausted, nor is it believed to be now. It has been exercised by the Secretary within the last month. Certainly the exercise of the power was not intermitted because othere was a difficulty in finding a home demand for the bonds. Will it be seriously urged that by sale abroad [with the proceeds, the Secretary can buy and bring home gold and thus more easily and speedily resume? Nearly every such attempt to force exchanges, to obstruct and divert t ie inatural courses of trade by unusual efforts, purchasing and importing coin wherewith to resume specic payments, has resulted disastrously. The 0d U.S. Bank made the experiment on a large scale by buing up the?cotton cro to ship and sell abroa to buy and bring bac gold to enable it to resume and maintain specie payments. The attempt hopelessly wrecked that institution. Are not the beaconlights of experience as safe and as useful for Governments as for corporations or individuals? If Government when so large a debtor essays in eager haste to overleap the usual barriers of trade or endeavors to obstruct or divert the established channels and courses of exchange, we may he sure a reaction ere long will follow. Sluices will be opened, dikes will be pierced, and the tidal ebb and flow will restore a commercial equilibrium irrespective of what or who is stranded. The Bank of ngland, the Bank ofFrance, the Germanic ban s, observing such a scheme inaugurated, at once would be stimulated to gather up our securities and force them back upon our market in such quantities as to stop the sale abroad by depreciating the home price, and of course, eranging our own home traflic in t cm. N o, no, this extraneous method will be found a most untoward, perilous, and futile way to travel toward a If healthy permanent resumption. we are to resume and maintain specie payments we must take legitimate steps; we must get out of the way our short obligations; we must prepare for other liabilities as they fall due; we must contract our papercirculation, certainl cease enlarging it, whether denomi natedU.S. legal tenders or national bank currency; we must produce and sell, and manufacture and sell, buy and consume less until the balance of production and of manufacture, of trade and of commerce, and of exchange is in favor of families, communities, States, and the nation itself, and then, virtually, resumption of specie payments will be nigh at it not in and It ought not to be overlooked that after the 1st of next July the State bank cir culation will be rapidly retired under the operation of the tax to be imposed upon its subsequent reissue. As thereafter nothinfi but green backs and national bank notes wi circulate, is it not possible this new condition of thin may constitute an auxiliary contraction, whic, aded to the Secretarys policy in the same direction, will produce all the stringency and all the reduction in issues that the Secretary or any discret business man will care to see in the country, on changc, or in commercial circles? " Money is plenty now and everything is easy. A month or aweek even may present a reverse phase, and instead of being complacent s cc tators or content actors we may e strugging in the depths piteously asking help or forbear ance. But I must not forget that I am discussing not so much the probabilities and the instru ment alities of resumption as the loan bill. Not to prolong further the consideration of its foreign feature, I have but to add that, in this very particular, I stand with the able and pn triotic SecyTreasury. He commences the 2nd para raph, on page 18 of his annual r ort, Deccm or, 1865, with these positive wor s: “ The debt is large, but if kept at home, asit is de sirable it should be.with a judicious systemof taxation. it need not be oppressive. It is. however, a debt/Him. Again, page 29, he says: "Althea h it is not desirable that our securities should be held out of the U.S. it is desir able that they should be of good credit in foreign markets on account of the influence which these markets exert upon our own." If, as I believe, this foreign and home view of the question is financially correct and sound, then it is worthy of our consideration, “although it disposes at once of the committees proviso. As seen, the Secretary has declared the undo sirableness of our stocks being held abroad The thermometer of Wall street, onh the filst promulgation of a purpose here to superiiiducc an exotic demand, indleicgaistlefldllaly of domestic eifect. da I chanced to be in NewYork the day the committee reported the bill. Gold did in deed drop h litt e; so did, more, the Federal 5 twenties r Ina bankin house where I was sitting a gentleman hurric in to inquire if the telegraphic report of the introduction of the bill with the foreign feature was to be believed, declarin, if he thought it would become a law he would that day see every Government bond he owned and that man is no stock gambler, but is said to be the heaviest holder of Government securities in NewYork, if not in the U.S. Another objection of a different character hemains to be noticed. The committees bill prolongs, if it does not augment, some of the most insolvable uncertainties which more or (less during the war have attached to and affected all large business engagements and transactions. Underit, at any moment, unannounced, a process of contraction or of exansionmay be in operation, materially modifying time contracts or the movements of property. In a condition of peace does a paramount necessity exist for vast occult Government financial operations? Have capitalists, bankers, brokers, during any of the many emergencies Government as passed, throug i in the last 4 years, in a single instance evinced a disposition to drive aShylock bargain with it? Outrageous commissions, exorbitant rates, enormous prices have, indeed, been exactedand paid in one if not more of the Deptal branches of the government. If the Treasury Dept has been thus victimized, it is not known. On the contrary, I am assured the Secretary has never asked and not been aided. Why should not the same cooperative influences continue in carrying the Government through? Why should additional power be given; or rather why should the Secretarys war discretion and war powers now be enlarged? Trained myself in a political school, one of whose cardinal principles offaith and practice was, Government should never unnecessarily engage in or interfere with private enterprises or business operations, I am frank to avow the belief that the sooner GOvernment now dissolves, and separates itself from, all connections and interpellations with individual transactions refrains from endeavoring to influence them, the sooner will a sound, healthy equilibrium be restored in all the conduits and pools and great expanses of trade and commerce and exchange. The accumulation of a large surplus of coin, with power to sell at his discretion; the authorization, and the exercise of it, to receive adlibitum temporary loans, to issue certificates of indebtedness in indefinite quantities. if continued in, assuredly makes him sufficiently potential to disregard the pranks or the comiuntions of a herd of stamping “bears” or tossing “bulls.” The bill authorizes the Secretary to call in and fund all or any of the outstanding liabilities of the Government, whether interest bearing or not; it may be 50, 500, 1000, 1500 millions even, will be within his scope and reach; he may exchange 520 bonds for the amount, whatever it may be. It authorizes him to o without proposals upon the market and sell bonds at his own discretion, to raise money where with to pay off any or all of these varied and vast amounts. In scripture phrase, it is this “hiding of his power, ” which maybe bored and exercised at any moment, that constitutes the impolicy and the objection of its bestowment. Sir, the gamblers in Wall street will hold high revel in the glorious uncertainties continued and created by this bill. They can discount the probabilities and the phases with every fluctuation of politics, prices, prospects, and vicissitudes of the seasons. Is such a feverish, speculative condition of things desirable or necessary? If not, the correction is in our hands. The unexhausted acts of.lune, 1864, and March, 1865, give all needed authority to the Secretary to issue 6%. bonds, payable at his discretion, not less than 5 an within 40 years from date, to fundment. Authorize him to give public notice, and require him to be in readiness, according to notice, to issue bonds running a fixed term I of years in exchange for these unfunded ohliigations, specifying the kind, the amount, the priority, and the time of presentation. lfit iis found Government bonds can be advantageously placed in larger amounts than the interest bearing liabilities, then, and not until then, let the non-interest bearing 10 al tenders be taken in hand by the Secretary, no public notice being, given of the intention. such a course would enable every business man to know what Govthe interest bearing oblgations offie Government contemplated, and to arrange his business and engagements accordingly. Rublic notice dissipates much of the uncertainty and consequent speculation attending Government stock transactions, engendered and fostered by, stealthy recipitancy. There would be no new; loan on tm market, no apprehension ofone; no inexplicable fluctuation of GOvernment securities. Trade would adjust itself to a defined policy. Every man would have the same facil ities of information, and of course an equal chance in the marts and thoroughfares of ven ture and adventure. Would such an open financial programme be successful? To a very considerable extent Il believe it would dependent of course upon an easy money market, without which under no circumstances can the 5 twenties be floated atpar. Iffor any reason, extraneous or indige nous, this expectation should be disappointed no disasters could ensue, no bankruptcy could befall the Government before the reassembling of congress. On the whole, are not the mise hiefs and abuses and dangers so palpable on the one hand, and the probabilities, the inducements, and the seeming advantages so manifest on the other as to determine an justify the rejection of the committees bill? For myself, I do not believe an present legislation of the kind is needed; I believe the ecretar has all necessary power now to retire }and fun the obligations of the Government. But if some bill must pass, then the supplement or amended bill of the Gentfrom Pennsylvania [gun Srsvsss] striking out the foreign proviso, the simultaneous right to fund noninterest bearing with intercstbearing notes, or to issue and sell bonds below par, is by far preferable to the original bill reported by the committee. I If there were time, I should be glad to call lattention to an anomaly in our existing finan icial system, which if any bill is to pass, might, as it seems to me, very properly be the subject.of an amendment. In the incipiency of our gigantic loan operations the customs receipts were required to be paid in coin. These receipts were solemnly set apart and pledged for 2 specific objects payment of the interest on the public debt, and the creation of a sinking filmZFf of the ultimate extinction of the principal of the public debt. The interest has been promptly paid, and notinfrequently anticipated. The last Congress authorized the SecyTreasury to sell, from time to time, any surplus coin in the Treasury not needed to pay interest, due regard being bad to previous provisions pertaining to a sinking fund. By reasonof such surplus and such authorization, sales of coin have from time to time been made; the amount and the rates we have no means of knowing. But this we do know; thus far the sinking fund, notwithstanding the pledge and its subsequent recognition, is yet a legislative ideal, a mere myth, that may or maynot here after have a veritable, tangible Avatar. I do not care to characterize this withholding as bad faith with the public creditor, for thus far the Governmenthas met its pecuniary obligations with comparative punctuality. I do not care to characterize the omission as quasi, oblique repudiation; for in the future, as in all the troublous past, the Government may be able to pay “the uttermost farthing.” It may be, in the midst of a war requiring immense expenditures, necessitating, after the absorption eve species of revenue, lar cand numerous glahsiftihep rorhietya d the eennniyinightha questioned settiIls part wiprosved mono or what in effect wou d be the same thing diveing other needed funds from common use for the purpose of establishing such a fund. I know elaborate calculations have often been made, and surprising results have been attained, in figures, showing the wondrous fecundity of small sums, the otentiality they possess over vast amounts, when such sums are sacredly placed and the yearly interest is comounded and consecrated to accumulation. everthe less, does not the practicability and the econ omics of such a hypothesis, in the midst of heavy expenditures and loans, remain to be demonstrated by actuality? But now, emerging as we are from a condition, comparatively, of consumption and of non-production; no longer in the attitude of a needy borrower, expecting that henceforth revenue taxes and reaction will more than balance expenditures, is it not possible, is it not expedient, to “ return to the o (1 ways and walk therein, ” pay as we go and make provision for the coming future? If gold accumulates in the Treasury in excess of interest demands, does not correct principle as well as solemn pledge obligate us to see the surplus goes, if not. to create a sinking fund, at least in positive curtailment of the national indebtedness? Perhaps in this particular we need not be much exercised. Should the Secretary be at all successful in funding. at no remote da, the coin interest bonds will be so included t afit is not likely the Treasury very long or very soon will be burdened with a specie plethora. But if such surplus is probable hereafter, may not the mode of disposing of it be improved and made more satisfactory? In the est condition of the market the present at, tainment of gold is difficult and exensive, cheerfully submitted to, it is true, while the exigencies of Government needed and de manded it to maintain its credit and enable it to make loans. When thus hardly obtained, its sale for currency to go to.the commonest. uses of Government forces the consideration upon the minds of business men whether the extortion. as it were, of coin thus and the sale of it in part for such a purpose is necessary, economic, desirable, or even ust. Would not the commercial interests an business of the country generally, and the credit of the government in particular, he subse rved, with no detriment to any interest, if the Secretary was authorized to sell any excess of gold over in. terest requirements for legal tenders and cause the cancellation of the same without substituting or issuing other notes or representatives of indebtedness in lien or in place of those thus withdrawn from circulation? This would be reduction of the public debt, in a small way indeed, but in the way and by the very instrumentality, if not. in the very mode, solemnly covenanted and pleded to be done in and by former legislation. have no doubt the announcementof such an authorization and requirement would be gladly hailed by all who desire to have the Government keep faith in all its implied as well as its specific obligations. I can conceive of a simple method of treating and disposing of this surplus coin question, which, if it did not, as some think, operate an indirect reduction of the customs imposts upon importations, to my mind would be “a more excellent way.” Let the Secretary be authorized on all customs payments of $100 and over to receive, say 10%. of the duties in U.S. legal tender notes, and cannocenl inttheeressat mbeea, rwinigt no issuance of notes or other representative of indebtedness in place of those retired. I will not pause to particularize the obvious effects and advantages of this disseverance of the Government from gold speculations; its considerateness of the importers difficulties in gleanin coin for the customs; its direct appreciation of its own paperin its recei t for its dues. Legal tender! thereupon would egin to approximate in bus? am estimation, perhaps, might better say, gravitate at once toward our only constitutional standard of value, the specie basis. Persistence in this small %age of retirement in time would bring an insensible proximity of specie payments to as well as by Government. Is it not. worth the trial? irrespective ofbeing, as it would be, a quasi restoration or use of any Surplus beyond immediate wants, to the purpose and object fixed and pledged by former legislation. Certainly, if not an adjunct, it would be no impediment to the Secretarys constant and most commendable effort to contract, to retire, and to prepare to resume. But Pmust not enlarge. I am hopeful that with economic habits and industria pursuits in private life; with carefulness in expenditures an appropriations; with such increase of internalrevenue as we have a right to expect in a condition of tranquillity and assurance throughout all our borders; with a continuance of the propitious agricultural seasons a be neficent Providence has generally heretofore vouclisafed unto us; with the rapid disembow eling of those vast and varied secretions of mineral wealth of old hid away in such won drous profusion in the matrix of mountain ranges stretching through many parallels of lat itude, by the inevitable sequence and revolution of events we shall ere orig be in the very midst of that age ofigold, foretold, indeed, in old song and stOry, but awaiting its fullest realization here, here in the birth land and home of the Great Republic of the Ages.