The enquirer. [volume] (Richmond, Va.) 1804-1815, 1812-03-10
{ Vol. s-------No. 90.

System ne DAD not pretend to be able to
make any GER ain. calculations. But if we
nave not the wisdom or the firmncss to
4 raisc even SO lA:ge portion CT our current
expenditures bySadtGhate revenue AS is now
asked ter by the kXeeutive and by the .coml-
mittee, he would hazard the prediction, that
1--WE should very Shortly indeed advance much
more rapidly IN the road to national bank
rnptcy than 6. Britain has a.; yet done with
all her toliies and all her prCdigality. How
far then does she rely upon a mere system
of loans and public credit for theN supply of
hcn annual expenditures In the year
! 1908, her whole annual expenditure, inclu-
ding the sums applied to the redemrtionlof
her debt was abnut Is millions sterling, of
which she raised within the year about So
millions by taxes, and about II millions bv
loans, 81
Fle interest of her public debt was about
20 millions, and the amount of principal
extingulshed during the year was more than
nine millions, being more than half of the
whole amount borrowed, and leaving net
increase OK debt Of but about eight millions.
or less than one ninth part of her whole ex-
penditdre. In 1911. rhe proportions raised
by taxes and by loans were about the same.
1t may also bo remarked, that on every
new loan which was authorised by that go
vernment OF late years, they made it prin-
cipie to provide funds from accruing reven-
ne sufficient not only TO pay the annual in.
tercst on the loan, but also to reimburse an
nuaily one per cent. ois its principal. From
these and other provisions which have been
adopted into her financial system, the go
vernnent were enabled to borrow money at
lower rate of interest thanthey had done
twenty years since, notwithstanding the i'm
mcnse increase of their debt within that pc
rod. G.. Britain as well knows the extent
strength of our financial means, as we do
ourselves, and let US not by feeble, a ruin
GUS and short lighted-system, teach her to
despise US.
| Much has been said out OF this House, and
considerable %ithin it, though not in debate,
| upon the facility with which all our expenses
might be betrayed by some sort of paper
system. called EXchequer Bills and Trea-
sury Notes: and it seemed to possess the
minds of some gentlemen that this species of
government paper might be invested with a.
sort OF magica! effect which would at once
acquire unbounded credit, without danger of
depreciation, although no particular provi-
sion sneuld be made for paying the interest
upon it, or for its ultimate redemption. It
has indeed been casually mentioned by the
secretary OF the Treasury that such papers
might occasionally be issued to a small but
| moderate extent: and it was evident that
he did not calculate upon it as any thing
more than a small auxiliary aid to the prin-
opal revenue, and as something perhaps IN
anticipation OF it, or to make good unexpec-
ted deficiencies. What is the nature of
these Exchequer Bills, and to what extent
are the government able to, rely upon them,
even in q. Britain, from which it is presume
ed our notions of them are taken? If gem
tlemen will give themselves the trouble to
look into the subject they will find, that
they are nothing more or less than go-
vernmcnt security bearing interest from the
time they issue, Circulated through the agen-
cy OF the bank, usually funded like other
public stocks at the end of the year or other
short period, and the interest provided for
and paid, leaving to the government but
little advantage over an ordinary loan So
sreas is the danger of this depreciation, and
SO cautiously are they resorted to there, that
that out OF an annual expenditure of 70 or so
[milllons they rarely venture to issue more
than three or four millions of Exchequer
Bills. How small an aid therefore should
we be able to derive from them, and at the
same time preserve our and their credit.
vi all the other disastrous effects thatmight
be to be apprehcnded from the worst events
OF a foreign war, (Mr. B. said,) that he
should most deplore those which must re-
suit from broken public credit, and 4 de-
preciated paper curI ency. It's operation up
on the character Of our government, both at
home and abroad, would be such as it would
hardly recover from for century to come.
Upon the habits and morals of the country
it would be most corrupting and disastrous,
producing state of general distrust, spc-
culation and fraud, the ruin of the honest &
Iunsuspecting. and the enriching of the un-
prlncipled and avaricious. The state Of
public securities during and after the Revo.
luton afforded us some experience on this
head-and could we again consent to see our
public paper purchased up by few saga
cious and wealthy capitalists at one eighth of
its nominal value, and eventually redeeme ed
as it must be, at par! He said, it must be,
because if this paper should settle as It
I would do mostly in those sections Of the
country where money capital was the most
abundant, and the government should, after
) peace, refuse to perform its engagement
Z 10 the holders, it must produce q shock up
on the government which all the artificial
bonds OF our national Union would be una
bic to resist. He trusted, that in order to
tProvide against an occurrence of this ma
ture, no means within our power would for a
moment be omitted. This can only be done
, by the early organization of q revenue COM
mcnsu-ate to the preservation of our credit
+, unimpaired.
) But it may re said, that we can well e.
(, nough carry on war for one year upon our
A credit alone, and that it will be time enough
: after that to provide additional revenues
S 1t is probably forgotten that this is the very
basis assumed by the committee, Sc on whici,
we must proceed. For The exfenees or u,;s