The enquirer. [volume] (Richmond, Va.) 1804-1815, 1811-12-03

of peace. extinguish debt Of forty-two
millions of dollars, does not necessarily i'm
ply that they could borrow that sum during
= period Of war.
In the present state of the world, foreign
loans may be considered as nearly unatt,ina-
Ole. In that respect, as in all others, the
United States must solely rely on their own
resources. These have their natural bounds,
ont are belle: ed to be fully adequate to the
support OF all the national force that can
DC nsefuliy and eificic ntly employed.
The ability and Will Of the u. S. faithfully
to perform their engagements, are uhiyer-
sally known; and the terms of loans will in
no shape Whatever be effected by the want
| Of confidence in either. They must, howe
yer, depend, not only on the state Of public
credit, and on the ab.sity 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 mar
Sct price. Whenever the amount wanted for
the service OF the year, or the whole amount
! II stock IN the market, shall exceed certain
, limits, it may be expected that legal interest
Mil not re sufficient to obtain the sums re-
iuired. IN that case the most simple and di-
! rect is also the cheapest and safest mode
It "ppcars much more eligible topaz 1T cncc
the difference, either by a premium in lands,
on by allowing higher rate OF interest, than
10 encrease the amount OF stock created, OF to
attempt any operation which might injurio,i.-
iy affect the circulating medium OF The coun-
| try. This difficulty, and il is the ONLY scri-
Gus che which has been anticipated, will not
indeed, II analysed, appear very formidable.
For, to take anc2,trcme case, and supposing
even forty millions of dollars to be borrowed
at eight instead OF six per cent. year, the
only difference would consist in the addition
al payment of eight hundred thousand dollars
year, until the principal was reimbursed /;
a payment mconvenicnt indeed, and to be "a
| voded if practicable, but inconsiderable if
! compared either with the effects of other
means of raising money, or with some other
branches OF the public expenditure.
| 1t appears from the present estimates that
| nothing more may be strictly wantedf for de-
iray!ng, during the year 1872, the expenses
! as yet authorised by law, than an authority
TO borrow sum equal to that which may be
| reimbursed on account OF the principal ofthe
public debt With view to the ensuing
ears, and considering the aspect of public
affairs presented by the executive, and the
measures OF expence which he has recon-
inended, it has been attempted to show:
| 1. That liked revenue of about nil
mons CT dollars is necessary and sufficient,
| both under the existingsituation of the U. y.
and in the event of their assuming a d lfier-
ent attitude.
2 That an addition to the rate of dutics
| on inportations is at present suffic lent for
that purpose, although in the cour Sc. of e.
vents 1t may require some aid from other
sources of revenue.
s.. That just reliance may be placed on
obtaining loans to a considerable amount, for
detraying the extraordinary expences which
may be incurred beyond the amount OF reve-
nue. above stated.
4. That the peace revenue of the u. S.
will be sufficient, without any extraordinary
eXertipns, to discharge in a few years the
debt which may be thus necessarily Incurred
All which is respectfully submitted
ALBERT GALLATlN.
Treasury Detartmcnt, .Nov. 22d, 1911.