Alexandria daily gazette, commercial & political. [volume] (Alexandria [Va.]) 1808-1812, 1812-01-24


objection and every one taken singly, may
for that reason be easily combatted. But it
the necessity of an additional revenue be adj
nitted, the objections afford no argument why
the tax proposed, should be rejected, unless,
another less inconvenient be substituted
The necessity Of such an addition. to the rcve-
nue., has In the course of this letter, been
strongly urged, because it was strongly felt;
but with respect to the taxes proposed, the
selection is submitted with difidence, and it
will be highly gratifying that some more eli
gible may be devised.
The last inquiry of the committee relates
principally to the terms on which loans a
mounting TO at least ten millions of dollars per
annun, may be obtained, and to the plan pro-
per to be adopted for the reimbursement OF
such loans.
The terms ON which annual loans to that
amount may be obtained, can be asceriaineel
only by experiment. Government has never
since its organization, obtained considerable
loans within the United States, at the rate Of
six per cent. ayear, except from the Bank of
the United States and these On capital Of
ten millions, never amourled to seven MILL
| ons in the whole In proportion to the a.
mount wanted for the service o! the year, and
to the increase Of stock Of the public debt at
market, the terms must naturally become less
! favorable. 1t must also be recoIiected, that
III addition to the sum wanted to defray the
extraordinary expenses of the war, an annual
| loan equal to the annual reimbursement of the
six per cent. and deferred stocks, prescribed
by law, will also be required. This. together
with the reimbursement of the residue of the
converted stock, amounting to 565, 900 dollars,
will tor this year amount, as has been stated
in the annual report, to 2,l35.Ooo dollars
AS the interest on the existing debt is inclad-
ed III the "current expenses" the loan neces-
saly for the reimbursement of the per cent
and deferred stocks will, for each subsequent
year, amount only to 100000 dollars TIE
ioa.is for those sums, will indeed create no
addition to the amount OF the debt, but will
nevertheless, increase the total sum to be an
nualy borrowed. 1t must also be observed,
that if the price of stocks should sink below
par, the commissioners of the sinking fund
are bound, BY the existing laws, to apply the
residue ct the annual appropriation OF eight
millions year to- the purchase OF stock and
that residue Will this year amount 70 5,640,3CO
dollars, witch Ii that case must also DC Dor
Iowed. 1t is a view Of those several cofs-
derations, which has createdan apprehension
that loans to such large amount might not
perhaps be obtained on as favorable terms as
under.other circumstances, and with the pow
eriu assistance of d national bark, had been
Formerly anticipated The same view of the
subject has most torcibly impressed coh;ic-
ton of the necessity Of an additional revenue.
Fer ii further loans be also resolted to for de-
traylng the ordinary expenses and the interest,
they must, if at all practicable, be obtained On
the most ruinous terms. Excluding that idea
and embracing only the loans which are abso-
ntely necessary. it appears to me more pru-
dent not to limit the rate of interest bV law
a discretionary power in that respect is, SO
tar as relates u the executive, altogether In
eligible bnt is preferable to the risk of leav-
ing the public service unprovided for. 1t is
also tor the same reason, requisite that the
loans may De made irreelcemable for term
not less than ten Years
In a former communication to the COM
mittee of ways and means, it was suggest
ed that " treasury notes. bearing interest,
might, to certain extent, be issued, and
to that extent diminish the amount to be di-
rectly borrowed. The advantage they would
have would result from their becoming part
Of the circulating medium, and taking, to a
certain degree, the place of bank notes. 1t is
evident, however, that for the same reason
the issue must be moderate and never exceed
the amount which may circulate without de-
preciation.
The loans necessary for toe present year,
are lst, a sum equal to that which may, dur
ing the year, be reimbursed on account Of the
principal OF the debt. 2dly. The amount of
expenses which have been or may be author
ised BY Congress and are not included in the