Alexandria daily gazette, commercial & political. [volume] (Alexandria [Va.]) 1808-1812, 1811-11-28

same encrease of duties would therefore be e.
would be sufficient to produce the same "a
mount OF revenue as under existing circum-
stances, cannot at present be determined.
Should any deficiency arise, it maybe suppli-
ed without difficulty by further encrease of
duties, by restoration of that on salt, and by
proper selection of moderate internal taxes
To raise fixed revenue of only nine millions
OF dollars, is SO much within the compass of
the national resources, so much less in pro-
portion than is paid by any other nasien, thrt,
under any circumstances, it will only require
the will of the legislature to effect the object
The possibility of raising money by loans to
the amount which NAV be wanted, remains to
be examined For the fact that the United
States may easily, III ten years Of peace, ex-
tinguish deot of forty-two millions of dollars,
does not necessarily imply that they could
borrow that sum during period of war.
In the present state of the world, foreign
loans may be considered as nearly unattaina-
bic. In that respect, as In all others, the L.
States must solely rely on their own resources.
These have their natural bounds, but are be-
iieyed to be fuily adequate to the support OF
all the national force that can be usefully and
efficiently employed
The ability and will of the United States
faithfully to perform their engagements, are
universally known and the terms of loans
will in no shape whatever be effected by the
want of confidence in either. They must
however, depend, not only on the state OF pub
lie credit, and on the ability to lend, but also
on the existing demand for capital required
for other objects. Whatever this may be-,
the money wanted by the public must be
purchased at its market price. Whenever
the amount wanted for the service of the year,
or the whole amount Of stock In the market,
shall exceed certain limits, IL may be expect
ed that legal interest will not be sufficient to
obtain the sums required. In that case the
most simple and direct is also the cheapest &
safest mode. 1t appears much more eligible
to pay ut once the difference, either by pre-
MUM in lands, or by allowing higher rate of
interest, than TO encrease the amount of stock
created, or to attempt any operation which
might iniuriously affect the circulating mcdi-
um of the country This difficulty, and it is
the only serious one which has been anticipat-
ed, will not, indeed, if analysed, appear very
formidable For. to take an extreme case,
and surprising even forty millions of dollars
to be borrowed at eight instead of six per
cent. year, the only difference would consist
in the additional payment of eight hundred
thousand dollars year, urtil the priaciple was
reimbursed payment meonvenient indeed,
and to be avoided if practicable, but inconsi-
derable If compared either with the effects OF
other means of raising money, or with some
othef branches of the public expenditure.
Z. 81
that nothing more may be strictly wanted for
defrayiRg, during the year 1912, the expenses
as vet authorised by law than an authority to
borrow sum equal to that which may be re-
: imbGrsed on account of the principal OF the
public debt. With view 10 the ensuing
years, and considering the aspect OF public at
fairs presented by the executive, and the mea-
sures of expence which he has recommended,
it has been attempted to show.
/. That Fixed revenue of about nine mill
hoiis of dollars is necessary and sufficient,
both under the existing situation OF the Unit
ed States, and in the event of their assuming
different attitude.
3 That al addition to the rate OF duties on
inportstions is IT present sufficient tor that
purpose, although In the course of events 1t
NAV require some aid from other sources OF
revenue.
5. That Just reliance may be placed on
obtaining loans TO considerable amount, for
Gefraying the extraordinary expences which
may be incurred beyond tie amount OF reve-
nue. above stated.
4. That the peace revenue OF the U. States
viii be sufficient. without any extraordinary
exertions, to discharge in few years the
deSt which may be thus necessarily incurred.
All which is respectfully submitted.
ALBERT GAIILATIN.
Treasury Dss9rt-reaf, hoven5sr 22i, 1911