Alabama state intelligencer., 1831-04-27

o
 See, MT President what masses of money an always on hand. The paper is covered all owe with millions. And yet, for all these vast sums, n interest is allowed no compensation is made to th United States The Bank of England, for the un drawn balances of the public money has made al
 equitable compensation to the British government namely, permanent loan of half million sterling q temporary loan of three millions for twenty years without interest Yet, when moved for like com 1 pensation to the United States, the proposition Wal utterly rejected by the Finance Committee, anC
 treated us an attempt to violate the charter of the Bankl-At the same time it is nconestibe, that the United States have been borrowing these undrawu balances from the Bank, and paying an interest upon ! their own money. 1 think we can identity one ol these loans. Let us try. In May, 1894, Congress authorized loan olive millions of dollars to pay the awards under the treaty with Spain, commonly call ed the Florida treaty The Bank of the U. States, took that loan and paid the money for the U. States in January, and March, 1895. In looking over the statement of undrawn balances, 1t will be seen that they amounted to near four millions at the end of the second quarter ofthat year The inference Is lrresi tble, and leave every Senator to make it; only ad- ding that we have paid 469 375 in interest upon the loan either to the Bank or it's transferees. This is a strong case. but have stronger one. It is known to every body that the United States sub scrbed seven millions to the capital stock of the Bank, for which she gave her stock note bearing interest of live per cent per annum. have state ment from the Register ofthe Treasury, from which it appears that up to the 3lh day of June last, the United States had paid S4, ,725 000 in interest upon that note when it is proved by the statement of ba lances exhibited, that the United States, for the whole period in which that interest was accrung had the half or the whole, and once the double, of these millions in the hands of the Bank This is stonger than that ofhe five million loan, but is not the strongest. The strongest case is this In tIa f,-aa ,hon Inc ontf into tion the United States owed, among other debts, of about fourteen millions and three quarters, bearing an interest of three per cent. In the same year the Commissioners of the Sinking Fund were authorized by act of Congress 10 purchase that stock at 65 per cent, which was then its market price. Under this authority the amount about one million and half was purchased, the remainder a. mounting to about thirteen millions and quarter has continued unpurchased to this day and after costing the United States about six millions in nie rest since 1877, the stock has risen about four u
 lions in value that is to say from 65 to nearly 95.
 Now here is clear loss of ten millions of dollars to the United States. In 1S17 she could have paid off thirteen millions and quarter of debt with eight millions and half of dollars now, after paying six millions of interest it would require twelve millions and halfto pay off the sams. debt. By referring to the statement of undrawn lnces, it will he seen that the United States had, during the whole year of 1877, average above ten millions of dollars
 
 than enough to have bought in the whole oftlle three per cent stock The question, therefore natu rally comes up, why was it not applied to the re- dempton ofthese l3 millions and quarter, accord ing to the authority contained in the of Congress of that yearl Certainly the Bank needed the mo- ney; for it was just getting in operation. and was as hard run to escape bankruptcy about that time any Bank that ever saved from the brink cf destruc- ton. This is the largest injury which we have sus- tained on account of accommodating the Bank with the gratuitous of these vast dcposltes but to shew myself impartial 1 will now state inc smallest case ofinlury that has come within my knowledge. It the case of the bonus of fifteen hundred thousand dollars which the Bank was to pay 10 the U States in three equal annual instaments for the purchase of its charter. Nominay this bonus has been paid, but out of what monies ! Certainly out of our own for the statement shews money there; and further shews that it is still there; for on the Both day of June last which Is the latest return, there still sS255O.664 in the hands of the Bank which is above $15D,009 more than the amount of the bonus.
 One word more On the subject of these balances. It is now two years since made effort to repeal tbe 4th section of the Sinking Fund act of 1877 a section which intended to limit the amount of surplus money which mi ght be kept in the Treasury to two millions ofdoars; but, by the power of con- structlon made to authorize the keeping of two millions in addition 10 the surplus. 1 wished to re- peal this section, which had thus been construed in to the reverse of its intention and to revive the first | section of the Sinking Fund act of l790 which di. rected the whole of the surplus on hand to be app
 ed, at the end of each year, the payment of the public debt. My argument was this, that there was no necessity to keep any surplus; that the revenue coming in as fast as it went ont was like perennial iountan which you night drain to the last drop, and not exhaust; for the place of the last drop would be supplied the instant ii was out And l supported this reasoning by reference to the annual Treasury reports which always exhibit surplus of four or five 1 l.nt .I.T
 the whole year round as on the last day of every year. This was the argument; winch, in fact avail ed nothing; but now, l have mathematical proof ol the truth of my position. Look at this statement of balances; look for the year 1879, and you will find but $S00000 hand for that year: look still lower for 1921 and you will find this balance but SIS2, ,00O And what was the consequence Did the govern stop did the wheels ofthe State chariot cease to turn round in those years for want ofTreasury oll not at all Every thing went on well as before the operations of the Treasury were as perfect and regular in those two years of insignificant balances as in 1877 and 1918, when five and ten millions were on hand. This is proof: This is demonstration Ii IS the ihdubtable evidence of the senses which con cludes argument and dispels uncertainty: and as my proposal for the repeal of the 4h section of the Sink fng Fund act of 1877, enacted into law at the ! last session of Congress, upon the recommendation ofthe Secretary of the Treasury, vigilant and ex. emplary officer, trust that the rcta will be acted upon, and that the Bank platter will be wiped as clean of Federal money in 1884, as it was in 1891. Such clean taking from that dish will allow two or three millions more to go to the reduction the pub. lie debt, and there can be no danger in taking the last dollar, as reason and experience both prove But to quiet every apprehension on this point to s
 fence the last Suggestion of possibility of any tenn porary deficit recur to provision contained in two different clauses in the Bank charter, copied om an amendment in the charter of the Bank of England and expressly made at the instance of the ministry to meet the contingency of temporary deficiency ii