Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1815-03-11
Important Report
FaoM THE TREASURY DspAR rsfENr.
Letter from me Secretary offhe 7reasury
10 the committee Of Ways and Means.
Treasury Department. Feh % IS

| '''e fs'"t"HtSec " ~ VS. QIlI <tlclES. T.
Treasury Department, Feb. 90. 1915.
SIR have the honor to acknowledge
The receipt of your letter, dated the 15th
'ps'ant which, in consequence of the ter
ninauon OF the war, requests. in behalf oe
the committee of Ways mi Neans, ga view
| o. the probable receipts fro 4, unpor;s aud
| tonnage. during the year 1915, ana a.y
| other Information that may enable the COM
| mittee to decide on the measures necessary
70 meet the unexpected and fortunate
change, which peace must produce, in the
resources, of the United States" 1t has
hitherto been my arduous and painful en-
pioyment, to suggest to your consi6e ration
measures tor relieving the embarrass nents
on the treasury, with view to the expen.
oitures OF protracted war. And 8 will
readily believe. that, on every accos. t, per,
sonal as well as public. Join you most sin.
cereiy, in rejoicing at an event, which brings
with It an immediate alienation of the pres.
sure npon this department. as well as
general assurance of national honor and
prosperity.
The objects which claimed the attention
OF the CON nittee, in my former commcni-
cations, were. LIST, the state of the public
credit; I'd. the state of the circulating me-
dunn and, Sd, the ways and means to de-
tray the various expenses of the govern
ment. :
1. The public credit was depressed dur
ing the war, owing to several causes, that
must now cease to operate. All the cir
cunstinceS. internal and external, which
were calculated to excite doubt as TO the
duration. or as to the issue, of the contest,
IN the minds OF the cautious and the tinid.
nave passed away and. in their place, the
proofs OF confidence begin already to appear
with practical advantage. While it was
doubtful to what extent the pubic exigen
cies would require the aid of loans. those
persons who retained the means of lending.
either feared, or affected to fear, the even,
tuai security OF the government and even
the exemplary display of the national re.
sources, which has been made during the
present session of Congress, for the benefit
OF the public creditors, was curtailed OF It's
nturai effect, III the resnscitation of public
credit, oy the countervaiIing influences of
Causes which IL is unnecessary to sDecify
nut wnen the whole amount of the public
deoe incurred during the war, is fixed and
ascertained /; when it is known. that ample
provisisn IS made for the punctual payment
OF the interest, and for the gradual extin..
suishment of the principal of tbe debt; and
when, above all, it is seen, thai Congress is
intiexlbie 10 its adherence TO the faith and
policy OF the legislative pledges the public
credit OF che United States will stand upun
a basis the most durable and the most hon.
orabie.
2. Tae difficulties of the national circu..
iatins meuium remain. however, to be Gu
couh'ered, under circumstances which The
goverEmen cannot control. The Effects of
the peace will certainly restore a matalEc
medium out uItil thas Result be produced,
the Only resource for al. the pecuniary trans.
actions OF the treasury, as we'll as ofindi.
Vlduais, viii DC the issues of treasury notes.
ana the notes OF the state banks. IF, indeed.
'hs State BANKS were soon to resume their
payment IN specie or if they were again to
give credit and circulation to the notes of
each other, throughout the United States
and u they were, moreover, able and willing
to accommodate the fiscal views of the .oy.
eminent, (Which do not permit myself f,r
moment to doubt a total de pendence 40.
on those institutions. however impolitic in
the abstract, would be practically safe and
oenepclal. But if, on the other hand, the
notes Oh the state banks shall continue iimit.
ed, IN circulation and use, to the CITY, the
Town. or the state, in which they are issued,
!. must De obvious, that they Cannot answer
the purposes of national medium and
that the receipt of such no.es, in payments
tor duties ofinport, or Internal duties will
convert the public revenue, which is des-
tined for general uses abroad, as well as at
home, into a local fund that MAJ not be
wanted where it exists, and cannot be ap.
pied where it is wanted II is, neverthe.
less, in the power of Congress to obviate,
in considerable degree, this difficulty, by
authorislng the payment of a reasonable
rate OF exchange, upon the transfer of its
revenue, from the places of collection and
deposit, to the places of demand and EN-.
ployment and respectfully recommend
the expedient 10 the consideration of the
committee OF Ways and Means.
The alternative, or concurrent resource
of treasury notes, for national circulating
medium, has, on other occasions, been con,
sideted. The security of the government
must always, upon every reasonable ana
candid estimate, be deemed superior to the
security OF any private corporation; aud so
far as treasury notes bear an interest and
are receivable in the payment of duties aud
taxes, they are evidently more valuable
than bank notes, which do not possess those
characteristics. But the machinery Of
bank is calculated TO give an impulse and
direction TO its issue of paper, which cannot
be impaired by the forms of the treasury,
or any merely official institution, to the pa,
per Of the government. In the operations of
bank, too, the facilities of bank credits
supply the place, in very ifnOorlant de.