Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1812-01-30

'roa s7rindc. ctAc- circumstances, and VI ia ,
powerful assistance OF national bank, had
iouneriy anticipated Ike same view of
'n5ice- has most iorcibly impressed a con-
,cp OF The necessity of an additional reve-
0Cc For If further leans be also resorted to
'crdeiraying the ordinary expenses and the IN
terest, they must, if all practicable, be obtain
60 on the most ruinous terms. Excluding that
dea, and embracing only the loans which are
absolutely necessary, it appears 10 me more pru-
dent not to lsnit tho rate of interest by law.
discretionary power in that respect is, so far as
relates to the executives altogether ineligible
but is preferable to the risk OF leaving the pub
lac service unprovided for. 1t is also for the
same reason, requisite that the loans NAV be
made irredeemable for term not less than, ten
years.
In former cocsIc anication TO the committee
OF Ways and Means, it was suggested that
y" treasury notes" bearing interest, might, to
certain extent, be issued, and to that extent di-
minish the amount to be directly borrowed
The advantage they would have, would result
rom their becoming part of the circulating
medium, and taking to certain degree, the
place OF bark notes. 1t is evident, however,
that Tor the same reason the issue must be mod
crate and never exceed the amount, which NAV.
circulate without depreciation.
The loans necessary for the present wear, are
lst sum equal to that which may, during
the year, be reimbursed on account of the prin.
clpai OF the debt. 2diy. The amount of cxpen-
| ses which have been or NAV be authorised by
Congress and are not included in the annual es-
Inmates
The first sum will certainly amount to
3 Ass 200, and may be greater if the stocks
should sink below par.
The second sum cannot vet be stated, since
the extent Of the expenses which NAV be 'au-
thorisea is not yet ascertained, and as the
estimates tor the additional army, alyeady
authorised, have not yet been received bv the
| treasury department..
The deficit of 100000 dollars ION the
peace establishment) is not included as alb
| solutely necessary, although its payment will,
as stated in the annual report, leave in the
treasury smaller balance than, under ex-
| listing circumstances, is eligible.
1t may be proper to repeat that, SO long as
the public credit is preserved and suffici-
ent revenue is provided, no doubts are en-
| tertained OF the possibility of procuring. on
| loan, the sums wanted to defray the extra
ordinary expenses of war and that the
apprehensions expressed relate solely to the
terms OF the loans, to the rate of interest at
which they can be obtained
| lhe reimbursement of the new debt which
may be created, must ultimately depepd on
the respective revenue and expenditure of
the United States after the restoration of
peace. No artificial provisions, no appro-
| priations OF investments of particular funds
\ In CERTAIN persons, no nominal sinking fund
| however constructed, will ever reduce a
| public debt, unless the net annual revenue
shall exceed the aggregate of the annual
expenses, including the interest on the debt.
those who create the debt can only estimate
what the peace revenue and expenditure
1 VIII be. and hot tha
plus mil be faithfully and perseveringly ap-
Piled to the payment of the principal.
| The current OF peace expenses have been
| estimated at nine millions of dollars. Sup
posing the debt contracted during the war
not to exceed fifty millions, and its annual
interest to amount to three millions, the ag-
] gregate OF the peace expenditure would be
no more than twelve millions And as the
peace revenue of the United States NAV at
the existing rate of duties be fairly estimated
at htteen millions, there would remain from
| the hrst outset surplus of three millions of
| dollars applicable to the redemption of the
| debt. SO far therefore as can be now fore
| seen, there is the strongest reason to believe
that the debtthu contracted WILDE discharg-
| ed with facility and as speedily as the terms
OF the loans will permit. Nor does any o.
ther plan in that respect appear necessary
than to extend the application of the annual
! appropriation OF eight millions, and which is
amply sufficient for that purpose, to the pay
ment CT interest and reimbursement of the
principal of the new debt. No doubt can be
entertained of that mode being sufficiently
| efhcacious, since by that plan alone forty six
millions OF the public debt have been reim-
bursed during the last eleven years. If the
national revenue exceeds the national ex-
pense, asimple appropriation for the payment
| OF the principal OF the debt, and CO extensive
with the object, is sufficient, and will infalli-
bly, extinguish the debt. If the expense ex-
| ceeds the revenue, the appropriation of any
specific sum, and the Investment of the inter-
est extinguished, or of any other fund, will
prove altogether nugatory and the national
debt will, notwithstanding that apparatus,
be annually increased by an amount equal to
the deficit in the revenue.
The annual interest OH the ex-
listing debt amounts to S2,22O,ooo
And estimating the interest on
the new debt, at 5000, 900
The sum which, on the annual
appropriation of eight milli-
ons, would at the restoration
ofpeace, be applicable to the
payment of principal, is, 2,7so,ooO
5000, 900
=