The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1811-12-18

the existing state of affairs, may there
fore be estimated at S6,6oo,oOo
Which, deducted from the annual expen-
dtures calculated on the same princi-
pie, and amounting by the preceding
estimate OF the year 1872, to 5000 GOO
Leayes deficiency to be provided for of 2,6OO,OoO
An addition Of fifty per cent to the present
amount Of duties, (together with continu-
ance OF The temporary duty heretofore desig.
mated by the name Of" Mediterranean Fund')
will be sufficient to supply the deficiency, and
is respectfully submitted. This mode APP
pears preferable for the present 10 any inter-
nal tax. With respect Ia the sales OF pub
lick lands, besides gtiording supplementary
fund tor the ultimate redemption oi the pub
lick debt, they may, without any diminution
Of revenac, be usctuiiy applied rs bounty to
soldiers eniisIlng M the regular service, and
~ facilitating The terms Of loans. But 1t does
not appear thai The actual receipts into the
treasury arising from the sales can be mate
rally cncrcascd withcut a, reduction in the
price unless il be by az attempt 20 offer cer-
tain portions for sale in ,he isrge cities OF the
anion.
The same amount of revenue would be ne
cessary, and, with the aid of loans, would, it
is believed be suiiicien: in caseofwar. The same
encrease of duties would therefore be equally
sufficient in that event. Whether it should
be sufficient te produce the same amount OF
revenue as under existing circumstances, cam
NOT at present be determined. Should any
deficiency arise, i, may be supplied without
difficulty by further eucrease OF duties, by a
restoration Of that on salt. and by proper Sc
lection 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 proportion than is
paid by any other nation, that. Under any cir
cumstanccs, Il will only require tue will OF
the legislature to effect the object.
The possibility Of raising money by loans
To the amount which may bc wanted, remains
70 be examined. For the fact that the Unit
80 States may easily, in ten years of peace cx-
tiRSmsh dc5t 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 u
nited States must solely rely on their own re-
sources. These have their natural bounds,
support of all the national force that can be
usefulIy and eHIeciually employed.
The ability and will of the United States
faithfully 70 perform their engagements, are
universally known; and the terms OF loans
will in no shape whatever be affected by the
want OF confidence in either. They must,
however, depend, not only on the state
OF pub.ck 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 putiick
must be purchased at its market price.
Whcncve YER the amount wanted FOR tue service
OF the year, or the whole amount of stock In
the market, shall exceed certain limits, il
may DC expected that legal interest will not
be sufficient to obtain the sums required. In
that case the most simple and direct is also
the cheapest and safest mode. 1t appears
much more eligible to pay at once the differ
ence, either by premium in lands, or by al
lowing higher rate of interest, than TO en-
crease 'hc amount of stcck created, or to at
tempt any operation which might injuriously
affect the circulating mcdirm of the country.
his difficulty, and it is tho only serious one
which has bean anticipated, will not, indeed,
II analysed, appear very formidable. For, to
take an extreme case, and supposing even
iorty millions OF dollars to be borrowed at
eight instead OF six per cent. year, the only
difference would consist in the additional pay
ment OF eight hundred thousand dollars year,
until the principal was reimbursed pay
ment inconvenient indeed, and to be avoided
II practicable, but, inconsiderable if compared
either with the effects Of other means of rais-
ing money, or with some other branches Of
the pubiick expenditure.
Il IL appears from the preceding estimates
that nothing more may be strictly wanted for
delraying, during the year 1872 the ex nenses