Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1832-04-13


threatened US.
The Treasury had become almost as empty as
an exhausted receiver. The public cred' haa
sunk to such point of depression, that accord
mo IN nv recollection, II have not documents
to refer to, Governmental stock, bearing an
interest of six per cent, had been sou im .'e
,n.rka, "a Inv as $40 for the SlOO All the
RanLs in the union, save few in New Eng
and had suspended specie payment; and IN con.
SEQUENCE. the country was deluged with Hood
of naner money, which, having no specie basis,
had undergone different degrees OF depreciation,
according to varying circumstances. As, IN the
district Of Columbia, there had been the highest
Hoo, tide Of paper issues So then, there was the
lowest ebb of depreciation; the paper OF that
place. compared with that of the Eastern Banks,
having been, it is believed. at 90 per cent. dis.
count.
To such point had things come-that, it IS
said-and believe it to be true, the very means
with which Mr.. Monroe, then Secretary of war,
pro fempore. furnished some aid to General Jack
son for the defence of New Orleans. were Dor.
rowed. in part, upon his private credit, OF one OF
the district Banks; and with all the exertlon
of the department, and all the zeal OF the men,
the Kentucky militia only arrived on tue 4th VI .
January, four days before the great oa't'e OF
the Sth .
The poverty of the Treasury necessarily pro
duced corresponding result In the ranks OIL our
army-men could only be enlisted win money
that money we had MOTT could not De raise'',
in the then state of public credit, by loans, Out al
runous sacrifices. if at all.
The causes Of our financial embarrassment and
depressiun of public credit. may be easily as
signed. l Will here make snort 's'e''''" "
do so.
From an unwilingness in times of difficulty,
to tax the people, beyond what necessity requir.
ed, the plan of finance, established at the COM
mencement Of the War, was, to make the reve-
nue. OF each year during its continuance. equal 10
the expenses of the Peace establishment, and the
interest on the old debt. aud the War loans, re-
living upon loans. to defray all the extraordinary
expenses of the War.
Experience, however, proved that this sys-
ten could not be long continued; TOR, the DEMANDS
Of the Government required loans and treasury
notes in the year ending in September, 1915 10
the amount of almost $4,000 600 aud for tie
next year, between 90 and 100000 600.
Every new loan, too, was contracted, upon
worse terms than the preceding; the public deb
being IN constant increase, and the revenue, as
far as it depended upon customs, being in pro-
gressive dim,nution, being now reduced AS low as
about Sc. OOO,O accruins from that source.
Upon the recommendation of the President, in
his message Of Sept. 1914, aud the strong repre-
sentation of the distressed condition of the Fl.
nances in the Treasury Report, Congress made
earnest and jealous efforts to remedy the evil -
The Treasury Report recommended as the means
of relief, National Bank, with capital of So
900. 900, an increase Of 100 per cent. to the.
rect tax and internal duties, and the imposition
l IL
calculating upon an annual revenue of 21,Co =
900. The tax bills were generally passed he
Bank. the subject Of this communication. after
being reduced in its capital to 3O,OOO,OOO, was
passed, and rejected by the President on acc GUN,
Of the manner in which the capital was constitut.
ed. and ITS supposed ineficiency in assisting the
operations Of the Treasury.
! After which the new Bill, hereafter more par.
ticularly referred to, was passed by the Senate,
and after the news of the Peace, indefinitely post.
poncd by the House.
Whilst we were thus destitute, both of men
and money, (as to the army, mean only that
our ranks were thin and our force too small. such
were the resources Of the enemy, and such the
character OF the man, that we absolutely needed
much larger military force than would, under
other circumstances, have been necessary: for,
though our little navy performed prOdlgies of va
lor-yet, the vast extent Of our detenceiess sea.
coast, aud the great superiority If the enemy on
the water, enabled him to menace different and
distant points in quick thus, constant
ly harrassing our militia, and sometimes with
fruitless marches, to points which the enemy
abandoned before their arrival
To these difficulties il to be added another,
growing out Of the composition OF Congress-
There was, IN that body, strong and talented
minority. who resisted most OF the measures.
which the Government, and the majority thought
would enable them to carry on the war with vi
cor. enter not INTO the discussion of the me.
rit, or demeri, ef this course They acted upon
the alleged grouHd, that he war had heen impru.
IDENTIFY declared. and improyidenty carried Oh.
II is sufficient for NV pu pose. to state the fact.
If tax bill were before the House. it was most
generally opposed; if a measure were offered for
recruiting the army without money, bv laying IA
the militia intu classes, and drafting one man
from each class, it was denounced and character.
lied by the odious appellation Of conscripfion.
Two additional facts will close the narrative oi
the difficulties, under which we labored.
The far-famed Hartford Convention was in
session from the 18th Dee ember. 1914. to Jan