The enquirer. [volume] (Richmond, Va.) 1804-1815, 1810-03-27

ing the most eligible mode of horrow;np INC
| OF money, commensurate with the exigen-
cies OF the United States in case of war
1t is, therefore, thought sufficient. for the
present, to point out some of the most obvious
means OF cffacting loans generally leaving
| tia subject of subsequent consideration to
decide according to existing circumstances
on the most eligible mode, and ON the ar
rangement of details
| The enquiries of the committee ofWays
and Means apply to the three following
points: LIST. WHAT'S the most eligible mode
OF obtaining money by loans, Keeping in
view both the facility of borrowing sums
GGmmensurate with the exigencies of tha
United States, and the ultimate cxtipruish.
rnent Of the debt contracted? 2ily. 10 what
extent can an increase of duties on imps,sa-
ton be carried with safety! 3dly. Can any
other resources besides taxes and loans, be
relied OH Tor Immediate revenue!
i. LOANS.
l3t The commissioners of the sinking
fund, win, out of the annual approximation
OF eight millions of dollars for she payment
OF tie debt, reimburse, in 1910 the residue
| Oh the exchanged six Per cent. stock. a.
mounting to $3.50 900 dollars, aid in 1871,
the whole OF the converted six per cent.
stock, amounting to ], 800 COO dollars. It is
! probable that the owners os those two sne.
cies of stock, would consent 20 re.loan the
amount, provided, it was irredeemsbi- for
a few years. ~ -. -
2diy. 1t has already been stated, in the
annual report of Novemher 5th, 1907. "that,
the several banks of the United States mipbt
ind 1t convenient, an the diminished COM
merce OF the country might require less ca
pita!, to loan to government Il considerable '
portion OF their capital stock. then comput-
"a at about forty millions of dollars" Such
temporary loans can be obtained only to a
limited amount; but they are convenient in
two respects: lst They do rot diminish
the facility OF obtaining other loans from in-
dividuals, inasnnuch as they do not increase
the amount of stock at market: 2dly Be-
ing redecmabe at will, and in any sums
winch may suit the convenience of govern
inent, interest is paid only as long as the
money is wanted and the extinguishment OF
the debt contractedis rendered more easy
and certain.
Sd. Loans may be obtained from individuals
to an extent commensurate with the national
capital, and LIMITED by the existing demand
tor that capital for private purposes The
terms must vary according to circumstances,
always giving the preference to ,ile most sim
! pie form that can effect the obi ect A portion
OF the public lands may perhaps. if necessary,
c'tRer as premium or by giving an option to
Subscribers be advantageously applied in
facilitating loans or improving their terms.
|
/ payable to order, one year after date, may
be annually issued to moderate amount,
and be put IN circulation both through the
| medium OF banks, and in payment of sup
| plies. A portion would be absorbed durihe
the year by the payment of public lands and
revenue bonds. and the redemption of the
residue be provided fol- by the loan of the
ensuing year. This annual anticipation of
| the revenue, though liable to abuse, NAV. ie
| for haeI a.
! COLLECTION OF The revenue and the loans shell-
selves,
In relation to the extnsuishment Of the
deot contTactcf, those who borrow can dn
nothing more than to provide and pledge
funds sufficient for that object, and to give.
such form to the debt as may not impede
It's redemption. 10 render 1t irredeemable
tor no longer time than is necessary, in or
! der 10 obtain The money ); to make il reim-
bursaaie by instslmcats at fixed periods
never to create, for the sake OF diminishing
the annual interest, greater nominal a.
1 mount OF stock than the sum actually Dor
rowed, and above al never TO incur expen-
ces which are not actually necessary for the
cstence or welfare Of the country, are prin-
| c'pies essential Tor 4 nation which does not
contemplate system Of perpetual and in
creasing debt. But for its actual reimburse
mens we must principally depend on the re-
tarn Ct prosperous circumstances, on the
growing resources of the Country; and on
I the wisdom of our successors. The artifi
cial provisions of sinking fund may always
be rendered inefficient by the necessities
or extravaganza of government. The real
amount OF national debt cannot be dimi~
nished, unless the aggregate of revenue in
! ending the funds assigned to the sinking
(! fund, and exclusively OF new loans. exceeds
the aggregate Of expenditures, other, than
those tor the payment of the principal of the
debt. Favorable circumstances, and RI
gid economy in the current expences have
enabled the United States to reimburse du-
ring the LAST eight years, one half of the debt
created by the revolutionary war, and du-
3, ring some of the ensuing years. Similar cir
cumstsnces, and an adherence to the same
principles will be requisite to secure the
actual reimbursement Of the debt which it
! may now be necessary to contract. But that
(, government will possess resources amply
sufficient for that object, cannot be doub ed
The proceeds of the public lands would a.
lone, slowly perhaps, but certainly, eXt;r;S
gush much greater debt Than the Uoite6
F.! States have it now in their fsower "a create
And 1t is sufficiently asceitaiped that thS
national wealth of the Uoited States al
therefore the means Of raising revenne. in
crease m ratio still more rapid than their
population, population which almost dou.
bies every twenty years
/ Ihose considerations connected with a.
tners stated al large in the annual reports of
November 1907 aud Dece. aber 1905. have
produced a Conviction that Ioons ,n;ot, ,,;tt