Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1807-11-17
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pie provision for both those objects consi- !
dcrabte sur,,lusSes. and which can no lon
ger be applied TO the redemption of the
debt. may still accumulate III the Trcasu-
ry.
The previous accumulation of the trea-
sure in time of peace might, in a great de-
gree, acfrsy the extraordinary expenses of
war, and diminish the necc Nsity of either
leans or additional taxes. 1t would pro-
vide, during periods of prosperity, for those
adverse events to which every nation is
exposed, instead of increasing the burdens
of the people ut a time when they are least
able 10 bear them, OF Of impairing by an
ticipations the resources of ensuing gene
yatiops and the public monies of the Uni-
ted States not being locked UP and with
drawn FROM the general circulation, but on
the contrary deposited in banks, and
continuing.to form par: of the circulat-
ing medium, the most formidable objection
tothat system, which has nevertheless been
at times adopted with considerable success
In other countries, is thereby altogether
removed II is also believed that the re-
newal Of the charter of the Bank of the u.
States may, amongst Other advantages, af-
ford to government an opportunity of OBJ
tanning interest on the public deposits,
whenever they shall exceed certain a
mouat.
Should the United States, contrary 10
their expectation and desire, be involved
IN war, it is believed that the receipts of
the wear 1908 will not be materially affec-
ted by the event, iuasmuch as they will
principally arise from the revenue accru-
ed during the present year. The amount
of outstanding bonds due by importers af-
ter deducting the debcntures issued OH ac-
count Of re-expor:ations, exceeds, at this
time, sixteen millions of dollars. The de-
auctions TO be made from these on account
oil subsequent Interpretations, would. in
Gaze of war, be less than usual for expor-
tations will then be checked, as well as i'm
portations, andin proportion as these will
decrease, Il greater home demand will be
created for the stock OIL hand, and the
necessity of re-exporting be diminished.
II has already been stated, that the spe-
Gle in the Treasury at the end of this year,
f'gether with the surplus or the year 1903,
will amount to near eleven millions OF dol
lars--a sum probably adequate to meet the
extraordinary expenses of the war for that
year. il will also be reco!lected, that in
the estimated expenses of the year 1903,
the reimbursement of near Eve millions and
half ofthe principal of the debt il includ-
cd. The only provision therefore, which
may render any contingency necessary for
order TO cover any deficiency of revenue or
Increase OF expenditure beyond what has
been eGti mated, will he an authority to
borrow sum equal to that reimburse
mert.
That the revenue of the United States
WI, IN subsequent years, be considerably
Impaired by WAT, neither can or ought
10 be concealed. 1t is on the contrary. ne
ee.sary, in order to he prepared for the
crisis, 70 take an early view of the subject,
and to examine the resources which
filoulf be selected for supplying the defici-
ency, and defraying the extraordinary ex-
pcnscS.
There are no data from chich the ex-
tentof she defaication can, this moment,
be calculated, OF estimated. 1t will be suf-
hcisnt to state, list. That it appears neces-
sary to provide revenue at least equal to
The annual expenses on peace establish
ment, the interest of the existing debt, and
the interest on the loans which may be rails
Cd 2. That those expenses, together with
the interest of the debt, will, after the year
1903, amount to a sum less than seven mil
lions of dollars, and therefore, that if tho
present revenue Of 14,500, 900 dollars shall
not DC diminished more than one half by the
war, it will be adequate to the OBJECT. lea
wing only the interest of war loans to be
DlOFiQf-t ItTs
Whether taxes should be raised to grea-
ter amount, or loans be altogether re-
lied on for de!raying the expenses of
the war is the next subject of considera.
zion.
Taxes are paid by the great mass ofthe
citizens, and Immediately affect almost e.
very individual Of the community. Loans
are supplied by capitals previously acc IL.
rUated by few individuals. In a coun-
try where the resources of individuals are
net generally and materially affected BY
the wni, it is practicable and wise to raise
10y taxes the greater part at least Of the
annual supplies. The credit of the nation
may also, from various circumstances, be
81 times so far impaired as to leave no re-
source bnt taxation. Ia both respects, the
situation Of the u. States is totally dissimi-
lar.
n maritime war viii, IN the T. States,
generally and deeply affect, whilst it con-
times, the resources Of individuals, as not
only Commercial profits will be curtailed,
but principally because a great portion of
the surplus Of agricultural produce neces-
sSriiy requires - foreign market. The
rca1. I'd price cfthe principal articles ex-
ported from the United States viii ope-
rats more heavily than amy contemplated
tax. And without cn1uiring whether si-
milar cause may not still more deeply and
permanently affect a nation At war with