Martinsburgh gazette. [volume] (Martinsburgh, Va. [W. Va.]) 1810-1825, 1812-02-07

only by experiment. Government has never
since its organization obtained considerable
loans within the United States, at the rate o
six per cent. a year, except from the Bank o
the United States: and these on a capital 0
ten millions, never amounted to seven millions
in the whOie. in proportion to the amouh
wanted for the service of tue year, and TO TIA
increase Of stock OF the public DEB, 1t market
the terms must naturally become less IaVura
Bile 1t must also be recollected, that III aaal
ton to the sum wanted to defray the e1traor
binary expenses OF tile war, an annual loar
equal to the annual reimbursement of the SD
per cent. and deferred stocks, prescribed by
law, will also be required. This, togethei
with the reimbursement of the residue vi tht
converted stock, amounting to $685. 900 dollars
will for this year amount, as has been statet
in the annual report, to z, goo dollars
AS the interest on the existing debt is inciud
ed in the " current expenses" the loan ne
cessary for the reimbursement of the pei
cent. and deferred stocks will, for each subse
quent year, amount only to $4,000 dollars
The loans for those sums, will indeed create
no addition to the amount of the debt, bui
will nevertheless, increase the total sum ts
be annually borrowed. 1t must also be OBJ
served, that if the price of stocks should sink
below par, the commissioners of the sinking
fund are bound, by the existing laws, 70 ap
ply the residue of the annual appropriation o
eight millions year to the purchase Of stock
and that residue will this year amount t.
$500, 900 dollars, which in that case must al
| SO be borrowed. 1t is view of those severa
| considerations, which has created an appre
hension that loans to such large amount NIGH
| not perhaps be obtained on as favorable terms
| as under other circumstances, and with The
powerful assistance OF national bank, haC
been formerly anticipated. The same view O
the subject has most torcibly impressed con
viction OF the necessity of an additional reye
nue. For if further loans be also resorted Il
for defraying the ordinary expenses and tn,
interest, they must, if at all practicable, b,
| obtained on the most ruinous terms ExcIad
ing that idea and embracing only the loan
which are absolutely necessary, it appears t,
me more prudent not to limit the rate of int
rest by lava discretionary power in tina
respect is, so far as relates to the executive
altogether ineligible; but is preferable to tn,
risk of leaving the public service unprovi5e,
for 1t is also for the same reason, requisit,
that the loans may be made irredeemabIe TO
a term not less than ten years.
| Ina former communication to the committe,
of ways and means, 1T was suggested tina
treasury notes." bearing interest, might, t,
q certain extent, be issued, and to that extern
diminish the amount to be directly Borrowed
The advantage they would have would result
from their becoming part of the circulating
medium, and taking, to a certain degree, tn,
place of bank notes 1t is evident, however
| hot Eor fI,o ~
moderate and never exceed the amount which
may circulate without depreciation
The loans necessary for the present year
are lst A sum equal to that which may, dur
ing the year; be reimbursed on account of tn,
expenses which have been or may be author
annual estimates.
The first sum win certainly amount Il
2,l35,0OO dollars, and may be greater If tn;
stocks should sink below par
The second sum cannot yet be stated, sine,
the extent of the expenses which may be au
thorised is not yet ascertained, and as the es
Inmates for the additional army, already au
thorised, have not yet been received by tn,
treasury department.
The deficit of !. 200, eco dollars ION the peac.
establshment is not included as absolutel,
necessary, although its payment will, as stat
ed in the annual report, leave in the treasur,
a smaller balance than, under existing cir
cumstances, is eligible.
1t may be proper to repeat that, so long al
the public credit is preserved and suficien
revenue is provided, no doubts are entertain
ed of the possibility of procuring on loan, tn.
sums wanted to defray the extraordinary ex
penses of war; and that the apprehension
expressed relate solely to the terms of tn.
loans, to the rate of interest at which the,
can be obtained
The reimbursement of the new debt which
may be created must ultimately depend or
the respective revenue and expenditure of the
i limited States after the restoration, &c neaco