7 DECEMBER 1867, Page 2

The American Secretary for the Treasury reports that the revenue

for the year ending June, 1869, will be 76,200,000/., and the expenditure 74,400,000/s and that the public Debt has, in the year ending November 30, been reduced by 11,800,0001, a great sum when the revenue is considered, a small one when we think of the universality of American taxation. Mr. McCulloch recom- mends the conversion of the whole Debt into Six per Cents., pay- able after twenty years, 5 per cent. to go to the bondholder, one per cent. to the States by a rateable distribution, each State in return surrendering up its right to tax Union Bonds for State pur- poses. That is clever for home purposes, as it would make bonds the favourite investment, but abroad the Government will be accused of "keeping back" one per cent.