ent of our controversy with Great
Britain there remained no reason to question the rapid progress of the
United States in wealth and population. Indeed, it was then entirely
feasible for the Government to have resumed specie payments, as any
demand upon the Treasury for gold could have been met with proceeds of
bonds sold in Europe. It was my opinion, however, that it would be
wiser to delay resumption until the balance of trade should be so much
in our favor that specie payments could be maintained by our own
resources. And this was accomplished in less than six years. It is
with a state as it is with an individual. With an established credit,
or with a credit improving constantly and an income in excess of
expenditures, there is no difficulty in meeting all liabilities as
they mature. Such was the condition of the Treasury when I left it in
March, 1873. In March, 1869, the Government was paying interest,
measured at the gold value of its securities at the rate of seven per
cent. In 1873 the rate was five per cent or less. In that time the
net Public Debt had been reduced in the sum of three hundred and sixty-
four million dollars, and the interest account had been reduced about
thirty million dollars.

When I was engaged in placing bonds in Europe, a discussion arose among
bankers in regard to the conflict of statements as to the amount of the
Public Debt. By the reports of the Treasurer, which were the basis of
the monthly statements, the debt was represented by the securities
actually issued after deducting those which had been redeemed. By the
report from the Registrar's Office which once each year corresponded
in time to the monthly report, the balance was widely different. These
facts impaired our standing financially. Upon the register's books the
Government was charged with every issue that passed out of his office,
and it was days, usually, and not infrequently it was weeks, before the
securities passed from the Treasury into the hands of creditors or
purchasers of securities. On the other hand the Treasurer would be
entitled to credit for redemptions made days or weeks before the
evidence of such payments would appear on the register's books. An
analogous fact exists in the discrepancy between a depositor's account
with his bank and the account at the bank as long as there are
outstanding checks. The books would not agree and yet each might be
accurate. As it was a necessity of the situation