Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1816-12-12

of public expenditure.
Ii is also proper 10 remark, that the
principal OF the Louisiana stock is reim-
bnrsabla at the Treasury OF the United
States in four annual instaimeuts, com
n,encing in 1915; and that, by the ope-
ration oi the sinking fund, the old six per
cent stock will be eNtinguished In lSiS;
the. deferred stock in 1921; and the LOU
isiaua stock III 1922. The stock created
OH account of the war debt is charged up
on thesuking fund, x becomes redrenia.
bic atvarous periods between the wears
1925 and 1928.
For the details connected with this gen
eral view OF the sources of revenue. and
the objects of public Expenditure, il is SUIT
iicicpt TO refer to the annual report from
the Treasury Department, dated the 9th
of December, 1915; the report OH the sub
.iect of the new tariff of duties, dated the
10Th of February, 1916 aud the report
of the committee of Ways and Means, da-
ted the 9th day of January, 1916. The
sequel of the present sketch OF the finan-
ces viii, likewise, serve the purposes OF
explanation and Illustration
III. A ciew of tic fscqi measures du,iao.
1916
In various communications from this
department TO Congress, the injurious ct
iects OF the suspension of payments ian
com, upon the administration of the iinan-
ces, have been anxiously represented
For the immediate object of the present
statement, 1t Is proper TO repeat some of
them.
[. The Treasury has boea compelled TO-
accept the payment OF duties and taxes
IN tile local currency of the respective pla-
ces of payment.
The comparative value ofthe local cur
rencies appeared, IN some degree, to rem
der this course of payment unequal but
tile alternative was either to adopt it, or
10 abandon the hope of collecting the re-
venue III any convertible medium, for sa-
tlstyIng the public engagements. The
rule was, therefore, declared that the
Treasury would receive and pay, in the
notes OF banks circulating at par, al the
respective places ofreceiying and having.
For time, the test of the fact, that the
notes did circulate at par, was Hle agree
ment OF The banks employed as NE depoS-
,tories OF the revenue, TO credit them as
cash IN the Ireasurer's accounts. Bat
when the principal banks withdrew that
accommodation, and refused TO credit as
cash any bank notes but those which tLev
had themselves respectively issued. the
fact OF the circulation at par was necessa-
rIly .ett to It's own nOtOrety, and To the
official sponsibility of the collectors
rev notes, except the notes of the local
banks, contlnuedto circulatea at par and
such as did so circulate, were received by
the banks, upon special deposit, for safe
keeping; constituted dscredited fund.
upon which the Treasurer could only oc-
casionally draw.
Tho orla--fin,, 81 Il,
doubtcdiy, severe In MANY of the coIlec-
ton districts particularly in the States
where the banks, preparing for the re-
sumption ofcoin payments, had SO redu-
ced the issues of their paper as to render
the circulating amount insufficient for the
demand. But 1T was not in the power of
the Treasury TO dispense with the general
rule. Ii notes not circulating at par had
beeh received III one district, they must
have been received III every district and
there existed no mode of discrirninatinp
between notes 10 be received, and notes
10 be rejected, either as TO The bank. or
the place at which they were issued -
The inevitable consequences must have
been, that the duties and taxes would ey-
cry where be paid III the most deprecia-
ted paper; and that the medium thus
received could never be employed TO dis
charge the demands upon the Treasury
even at the places Ofrecciving it. The
revenue would accumulate in the Treas
ury, oniyto perish there; while the expo
dent OF substituting treasury notes to
meet me public engagements, led to an
indefinite augmentation of the national
debt
,. The Treasury has been compelled TO
augmentthe amount of the national debt.
both funded and floating, by issues of
treasury notes to meet the public engage
incntS, atpaces where it could not com
Inand the local currency. Throughout
the eastern States, the Treasury has hith-
erto failed TO command an amount of the
local currency, equal to the amount of
the local demands. The banks of those
states, fettered by the stlpulations oftheir
charters, could not follow the example of
the banks of the other States, in the sus-
pension OF coin payments but their is
sues of notes have been very limited, and
the necessities for circulating medium
have been principally supplied by treasu-
ry notes, and, partially, BY the notes OF
the banks of New York. Under these
circumstances, the revenue, i'm the east
ern section of the Union, has been almost
ei rely collected in treasury notes. In
ferior difficulties, from similar causes.
have occurred III some of the southern
States; where, also, the accruing revenue
was less in proportion to the demands.
which the arrearages of the war, as well
as the current expenditures, pressed upon
the Treasury.
From these considerations, il is obvi-
Gus that the public credit could only be
maintained, and the public service could
only hp pflprfph lpVeu will, an ,rpr,lo ~,