Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1814-11-12

coTrect syst@ -, finance, which wouls
have taught them never to contract deb
without creating a revenue sufficient to pay
the interest and gradually discharged thu
principal.
Gentlemen had been warned of the mad
| equacy of this plan Of fnance in the outset;
!, they had been told that there was nothing
| miraculous in. this thins called :. public
, fai'h;" that l. was nobe;ter, and freaien..
~ not as good, As the faith ofanindieiduar
ard that the public creditor would look not
only to the hoi.es.y of the government, but
TO the means provided BY tito meet its en-
gagements indeed, a pledge Of the ppblic
! faith by law for the redemption of debt,
Mr. O. said appeared to him entirelv SUI
perf1peus--inasmuch as K was always ple.lg-
ed by the very act of incurring the debt :
Gentlemen bad been frequently urged to re-.
sort to specific pledges Of parts of The exr
lsting revenue to secure the payments Of the
loans. with a view to obtain them on more
favorable terms They had. however, con-
sidered snch pledges uhihportant. and had
gone on relying upon pnblic credit alone,
without taking any steps to support it, until
the nation was literally bankrupt They
had. indeed, succeeded in making some
loans at first on very favorable terms but
their system had at length entirely exploded
Il was admitted that their last attcmps hid
failed, Notwithstanding the government had
been prepared to accept terms of the most.
extravigant and ruinous character. The
letter ofthe Secretary ofthe Treasury sbew-
ed that there was deficit in the ways and
means providedfor the present year of near
$4,000, goo of dollars. This sum it was ne
cessary to raise Immediately tomeet the ex.
penditures Of the preseFt quarter Of the
year In this deficit was not included the
vast amount of unascertained debt which
had arisen from exnend tires not comprised
IN the general estimate, and for which no
specific appropriations had been made by
law hut which, however, lad as fair a.
claim m the government for immediate pay
ment as any other He alluded particularly
10 the expences which had attended the EN-
ployment OF the vast bodies of militia which
had been called into the public service, and
which the government did not possess funds
to meet. 49,
he correctness of the su mmary view he
had aiken of the defsc: in The plan of finance,
Mr. o. said he bellies ed cold not beuuestion.
ed Ire cFnseqi encs OF these defects would
be SIR Jnaiy OK. mplifed by refere nee to the
manner in which the last loans had been ne
gociated He had made a statement which
he would submit TO the committee, and which
he believed substantially correct, intended
to shew in succiHcs paint of light the ex-
tent of the sacri6ce &C. the government,
had been compelled 50 make IN orier 10
procure the partial supplies which III ese
leans had afforded
| BY the sctof the 2$.h os Marco, 1914 a
| lean of 5 IS. 000, geo was authorized. Pro
pcsa!s fer a part of that loan, being ten nil
lion of doi;ers, were invited By The Treasury
| on the secosa day Of May. Vs,risus propo-
| sa's were made, and the government finally
Contracted for the sum of 9. 7o5 ,056 dollars.
! at the rate of 100 dollars in stock, bearing
| an interest of per cent. for 88 dollars in
money. But what particularly deserved no,
| tice in this contract, was The condition in .
sisted on by the contractors and acccded to
| by the government, that iC any part of the
| IS 100000 dollar Loan should be made by
| the Treasary on terms more favorable to
l the lender, tie same should be extended
To that contract a condition the most ipin
rions to the government that could have been
deyised-inasmncha as it made il the Interest
of the contractors to depress, rather than to
| sustain, the price of the public stocks
On the 22d OF August, proposals were n.
gain inyised for 100000 dollar, as n part
of the loan authorised by the act az the 9th
of March ; end government on those pro-
posals, contrac,S ID for 1890, s 90 dollars. be
ing all it could obtain, at the rate of 100 dol
lars in stock, at an interest of E per cent. for
80 -dollarsiD money. Ihe consequence was
a sacrifice by the government of 30 per cent.
not only on the amount thus contracted for,
but on the whole of the eontract for the
9.795,0s dollars the holders of which, by
virtue OF the Condition annexed TO their con.
tract, had right todemand of the govern
ment n premium of 8 per cent. they had all
rcady received The following statement
would give view of the extent of the loss
which the governmcnt had suffered in the
negotiation Of these loans
Amount Of the first contract 5000. O85
-------of the second contract 1880. 500