Portland gazette and Maine advertiser. (Portland, Me.) 1805-1818, 1814-12-12

ison and his partizans will bs able to bold
the reigns Of government Tor lille This
letter was drawn from the Secretary OF the
Treasury in consequence OF the following
inquiries being submitted to him BY com.
mltlee Oft the House -
l. The effect which considerable issue oftreas-
ury notes, with he quality Of being receivable
in subscriptions 10 a N .tonal Bank, will have
upon The credit of she Government and par
uculsrly upon the prospects OF loan tor 1913
9. The practicsbiliy of getting fortytour millions
of treasu no es Corning W tn six miliona OF
specie the capital for National Dsnk) into
circulation without depreciation!
MR.. DALLAS ANSWER.
The inquiries of the committee cannot be
satisfactorily answered in the abstract but
must be considered in connection with the
state OF our finances, aud the state of the
public credit.
When l arrived at Washington, the
Treasury was suffering under every kind OF
embarrassment. I he demands upon it
were great in amount, while the means TO
satisfy them were comparatively small
precarIous in the collection, and difficult in
the apple alton. The demands consisted of
dividends upon old and new funded debt, of
treasury notes, and OF Legislative appropria
tons Tor the army, the navy, and the current
sersice-aIl urgent and important. ! he
means consisted First, Ofthe fragment
OF an authority to borrow money, waen no.
body Was disposed to lend, and to issue
treasury notes which none but necessious
CfeditorS or contractors in ftis4ress or cap,.
missaries, quarter master, aud navy agents
acting as IL we've officially, seemed willing
TO accept :-Seco,d, .! the amount oil bank
credits scattered throughout the United
States, and principally in the southern and
western banks, which had been rentleled in
degree useless, by tie soppage OF pay
mehts In specie, and the consequent imDrac.
Ieabilly OF transferring the public funds
rom ose place, 10 meet the public engage
mems IN another place And, Third, OF
The current supply of money llom the im-
posts, from inks RIAL duties, and from the
sales OF public land, which ceased to be
foundation of any rational estimate, or re-
serve, to proyid. even Tor the dividends On
| the funded debt, when ii was found that the
Treasury Notes, (only requiring indeed
cash paymen, al the distance o. a year,) TO
| whomsoever they were issued a, the Treas
ury, and almost as soon as they were issued,
reached the hands OF the collectors, in pay
ments OF debts, duties and taxes thus
disappointing and defeating the only re-
naming expectation OF productive revenue.
Under these circumstances, (Which had
the honour TO communicate to the Commit
tee Ut Ways aud Means,) it became the
duty oil this department to endeavour to re-
| move the immediate pressure from The
treasury TO endeavour 10 restore The pub
| lie credit and 10 endeavour To provide for
the expenses oil the ensuing year. 1 he
only measures that occurred TO my MAD
for the accomplishment OF such important
| objects, have been presented TO the view oil
Congress. The act authorizing the receipt
! OF Treasury Notes IN paying of sub,crip-
tons to public loan, was passed, fear, too
late to answer the purpose for which 1t WAS
designed. ltpromises, at this time, little
| relief, either as all instrument Tor the mon
ey, or 10 absoIb the claims for treasury
Notes, which are daily becoming due
From this cause, and from other obvious
SohoSo, thS uANibStiu TIC iubcGd QSUt Has
not been puncluaily paid; large amount
ot lreasury notes has already been dishon.
cured, and the hope OF preventing iariher
injury and reproach, to transacting the
business OF the Treasury, is too visionaiy to
afford a momeN's consolation.
fhe .ctual condition of the Treasury
thus described, will serve to indicate The
state of the public credit Public credit
depends essentially upon public opinion.
he usual test of public credit is, indeed,
the value OF the public debt. The faculty
OF borrowing money is not test OF public
credit; for iaithsss government, like
desperate individual has only to increase the
premium, according to the exigency, in or.
der 20 secure loan Thus public opin-
ION, manifested in every form, and in every
direction, hardly permits US, at the present
Iuncture, to Speak of the existence of public
credit and yet 1t is not impossible that
The government, in the resources Gifts pat
ronage and its pledges, might find the means
OF tempting the ich and avaricious to sup
ply its immediate wants But when the
wants of to-day are supplied; wha, is The
new eXpedienl, that shall supply the wants