Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1815-12-23
ANNUAL TREASURY REPORT.
[coNTINuED.l

10Th estimates IF the public 1erenue and
e1penceS for 1916,
At the close of the last session of con-
gress, the demands upon the Treasury
were interesting iu Their nature, as well as
great in their amount. Exclusively of
the ordinary expences of the government,
they consisted of demands for the pay
ment of the Army, preparatory to its re-
duction to the peace establishment, with
other very heavy arrearages aud disburse-
ments on the War and Navy Departments;
for the payment of the dividends on the
funded debt, and of the arrearages as well
as the accruing claims, Oh account of the
Treasury Note debt and for the payment
of the Louisiana dividends, with other
considerable debts contracted in Europe,
in consequence of the latew
The efficiency of the means which were
possessed for the liquidation of these de-
mands, depended upon circumstances be-
yOnd the control of the government-Th
balance of money in the Treasury consist
ed of bank credits, lying chiefly in the
southern and western section OF the union.
The revenue, proceeding from the provi-
sion made prior to the last session of con-
gress was, comparatively, of small amount.
The revenue, proceeding from the provi-
sion made during that session, could not
be available for a great portion of the pre-
sent year; and, in both Instances, the re-
venue was payable in Treasury Notes, or
1T assumed the form of bank credits, at the
respective places of collection. The only
remaining resources for immediate use,
were an additional issue of Treasury
Notes, and a loan but the successful en-
plOyment of these resources was rendered,
for some time, doubtful, by the peculiar
situation of the credit and currency of the
nation.
The suspension of specie payments,
throughout the greater portion OF the Uni
ted States, and the consequent cessation of
the interchange of bank notes and bank
credits, between the institutions of the diff
ferent states, had deprived the Treasury of
all the facilities of transferring its funds
from place to place: and a proposition,
which was made at an early period, to the
principal banks of the commercial cities,
on the line of the Atlantic, with view, in
some degree, to restore those facilities,
could not be effected, for the want of a con
cuTence in the requisite number of banks.
Hence, it has happened (and the duration
OF the evil IS without any positive limita-
tony that, however adequate the public
revenue may be in its general product to
discharge the public engagements, it be-
come totally inadequate in the process of
its application since The possession of
public funds, in one part, no longer affords
the evidence ola fiscal capacity to dis
charge public debt, in any other part of
the union.
From the suspension of specie payments
and from various other causes, real or ina
glnary, differences in the rate of exchange
arose between the several states, and c.
ven between the several districts in the
same state, and the endorsements of the
Treasury were more and more INCREASED :;
since congress had not sanctioned any al
lowance ON account ofthe rate of exchange,
and the amount Of the legislative appropri-
| atoms was the same, wherever the legisIa-
! tive objects were to be effected. But the
Treasury Notes partook of tie inequalities
of the exchange in the transactions of indi-
viduals, although the Treasury could only
| issue them at their par value. The public
stock, created in consideration of loan,
also partOOk of the inequalities of the ex-
change although to the government, the
value of the stock created, and the. obliga-
ton of the debt to be discharged, were the
same wherever the subscription to the loan
might be made. Thus Notwithstanding
the ample revenue provided, aud perma-
nently pledged, for the payment of the
public creditor and Notwithstanding the
suspicious influence of peace upon the re-
sources of the nation the market price OF
the Treasury Notes and of the public stock
was every where far below its par, or true
value, for considerable period after the
adjournment OF congress vibrating, how
ever, with change of place, from the rate
of Is to the rate of 90 per cent. Payments
IN bank paper were universally preferred,
during that period, to payments in the pa
per OF the government 4; and it was ma
tural consequence, that wherever the Trea-
sury failed IN procuring local currency,
it failed, also, in making stipulated pay
/ ment.
Under these extraordinary and perpIex-
ing circumstances, the great effort of the
Treasury was, LIST, to provide promptly
and effectually for all urgent demands, at
the proper place ofpayment, and TO the re-
quisite amount of funds I'd. to overcome
the difficulties of the circulating medium as
far as it was practicable so that no credi
tor should rvceiye more, and no debtor paw
less IN plfecfive value nm tI,o sar,o .