Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1814-10-29
THE ANSWER.
Treasury Department.
October IL, 1910, Z

have the honor to acknowledge the
receipt of your letter, dated the 18th inst.
and, aware Of the necessity for an early In
terposition of Congress on the subject to
which it relates, proceed, nj the moment
of entering upon the duties Of office, to offer
TO the consideration of the committee of
Ways ard Means. an answer on the several
points of their enquiry.
Contemplating the present state of the
finances, 1t is obvious, that deficiency in
the revenue, and depreciation in the pub
lie credit. exist from causes which cannot
in any degree be ascribed, either to the want
of resources, or to the want Of integrity in
the nation. Different minds will conceive
different opinions in relation to some of those
causes; but 1t will be agreed on all sides,
that the most operative have been the mad.
equacy OF our system Of taxation to form
foundation for public credit and the alb !.
sence even from that system OF the means
which are best adapted to anticipate, collect
and distribute the public revenue.
The wealth Of the nation, in the value and
products Of its soil. in all the acquisitions of
personal property, and in all the varieties of
Industry remains almost untouched by the
hand of government for the national faith,
and not the national wealth, has hitherto
been the principal instrusaent of finance. It
period must occur in the course of a pro-
tracted war, when confidence in the aocu
nulatirg public engagements could only be
secured bv an active demonstration, both of
the capacity and the disposition to perform
them. In the present state Of the treasury,
therefore, it is a just consolation to reflect,
THAT prompt and resolute application Of
the resources of the country will efFectualIy
relieve from every pecuniary embarrass-
ment and vjDdicate the fiscal honor of the
government.
But 1t would be vain TO attempt to disguise,
and 1T would be perncious to pal.;ate the
difficulties which are now to be overcome
The exigencies ofthe government to require
supply of treasure for the prosecution of
the war. beyond any amount which il would
he politic, evenifit were practicable, to raise
by an immediate and constant imposition of
takes. There must, therefore, be a resort
TO credit, for, considerable portion of the
supply. But the public credit is at this juDc<
ture SO depressed. that no hope Of adequate
succour, on moderate terms, can safely rest
upon II. Hence, it becomes the object frst
and last in every practical scheme Of f..
nance, to re-animate the confidence of the
citizens and to impress on the mind of eve
ry man, who, for the public account, renders
services, furnishes supplies, or advances mo.
ney,a conviction of the punctuality as we'll
as OF the security Of the government. L. is
not to be regarded, indeed, as the case of
preserving credit which has never been
impaired, but rather as the case of rescuins
from reproach credit over which doubt and
apprehension (not the less injurious perhaps,
because they are visionary have cast an IN,
suspicious shade. In the former case. the
ordinary means Of raising and appropria.
ting the revenue, will always be sufficient !;
but In the latter case, no exertion can be com.
petent to attain the object, which does not
quiet, in every mind. every fear Of future
loss or disappointment in consequence of
trusting to the pledges Of she public faith.
The condition Of the circulating medium
ofthe country presents another copious.our
OF mischief and embarrassment. The re.
cent explorations Of specie have considera.
bly, diminished the fund cf gold and silver
Coin /; and smother considerable portion of
that fund has been drawn by the timid ard
the wary, from the use OF the community,
in;othe private coffess of individuals. On the
osher hand, the multiplication &c bar,ks the
several states has SO increased the puaptitv
oEpaper currency, that il would be difficult
to calcuateits amount and still more diff
cult to ascertain its value, with reference to
the capital ON which It has seen Issued. Put
,hc benifit OF even this paper currency is in
great measure lost, as the suspension of
payments in specie at most of the banks has
suddenly broken the chain of accommodate.
or, that previously extended the credit and
tie circulation Of the notes which were e.