The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-09


OF the measure may be considered no longer doubt
full But the usual excess of'appropriauons thus
made by Congress Is not imputed by the uhaefsIsn-
ed to any special inatlention 10 extravaganza ms
item has OF late years bsen introduced ihlo ING es
mates because il was found that new trealies hostl
lities or other events, onen require the Departments,
before the session is closed TO offer estimates iof
further appropriations. Sometimes commend pie
Measures ef public as well as private character,
originate In Congress- and, consequently are mol m
cluded in the estimates OF the Departments, put
which Justify neutrality-suspicious.. Sometimes,
likewise acts are passed Tor an Indefinite amount,
which involve in the end an expenditure lar beyond
what was could by any'ordinary foresight be an
ticipated during the passage Of them.
The estimate as TO the receipt OF Treasury NOES
has been placed at five millions OF dollars, or only
little beyond the amount which falls due and Is
obliged to be redeemed within the year.
But as all OF those issued, whether due or not,
have bsen made by law receivable al any time Tor
public debs and the right 10 reissue them even dur
ing the year is prohibited il must be manifest that
the receipts or redemption OF them will be likely
much 10 exceed that amount and To produce TO that
extent deficiency il the banks do not resume
specie payments as 10 aid in supply sound cur
rency to pay into the Treasury, instead OF them or
unless the prohibition to reissue them during the
year be removed
The whole expenditures during 1888, for new APP
preparations, have been estimated lower than those
OF last year. account of the reduced wants oil the
Government and wish to economist wherever the
public interest will permit.
II is believed that Il wars or other expensive con-
tngencies, do not intervene, the expenditures can
gradually be diminished Till their average in ordi-
nary times shall mol exceed seventeen or eighteen
millions Of dollars annually.
The expectations Of such a reduction, which were
formerly cherished and explained BY the under
signed were likely to be realized, when exiraor
binary increase of the revenue induced Congress to
adopt the system Of completing sooner many pubic
works of great usefulness and of efectng an ear
ler extinguishment of Indian titles with speedier
removal of the Aboriginals beyond the Mississippi
The charges on the Treasury, during each Of the
last two years for these Objects well for grants
to the District of Columbia, and for expenses OF the
Florida war, have nearly equallcd the whole excess
OF expenditures in each year above that average.
As the surplus has ceased TO exist, which was one
chief inducement to any increases OF expenditure
except on account of the Florida war, and was, at
the same time, one ground for their justification il
seems probable that all the suitable reductions can
soon BE- accomplished. A rigid regard to economy,
and sound principles of public policy ipersisted in,
will easily save the country from the bnrlhen OF
national debt; and without any was,efulness in ex-
penditure, will enable il to sustain every valuable in
stiution in vigorous condition
Should some questions unfortunately occur which
involve national honor, intimately connected
with public liberty, any sacrifice of money within
the constitutional powers of the Government that
may be necessary to the security Of those great OBJ
jeets can then be made from our ample financial re-
sources, without producing any general distress, or
departing from those habits Of frugality in public,
as well as private life, which are SO indispensable to
sustain republican institutions.
z. On the banks, and other matters connected ,ch The
collections, keeping, and disbursement Of the public
money. "..
The views Of this Department upon several topics
connected with the collection, keeping, and dsburse-
ment Of the public money have been recently pre-
scented, that only few additional remarks concerning
them will be offered The condition of the banks was
Of the most prominent Of those topics To prevent
any mIsappreheuslon, II may he proper to repeat the
assurance, that wish has been felt 10 interfere
improperly with those institutions While chartered
and used solely for local purposes the regulation and
control Of them supposed 10 belong exclusively
the States. But their organization, well as respon-
sbIlltes and an carly reform in BOTH became questions
Of great Importance 10 the Treasury, when connected
with them, as heretofore, in the capacity Of either pub
lie repositories or the Of portion of the
cy received for pubic dues. Experience for several
months past is full Of instructive lessons these
points Indeed, every crisis In our pecunray affairs
has tended greatly to strengthen the conviction that
evils exist IN banking in this country, which inhe
rent IN the SYSTEM vel as in the administration Of it,
wide departure has been made from the original pri
cples OF having its issues OF paper foundation
consisting Of specie alone. and that used IN deposite
chiefly for commercial objects. While regulated SUBJ
santally In this naner banking not only nstru-
ment OF convenience TO trade aud sometimes fiscal
operations, but safe in practice, and not inconsistent
with any sound theory as 10 currency. But when the
system is changed, that the paper issued rests like
mere bills of exchange, almost exclusively credit
BILE methods, such currency, however profitable
convenient to those interested, must become exposed
to many OF the vlcssitudes Of commerce. forfeit Of
its original character the actual representative of
ney. and lose its security in considerable degree
circulating medium for the Of either the community
or the Government Under such circumstances, that
calamity, to great or less extent, will often cnsue
which happened during the last spring.
As the failure to redeem their bills in specie then
extended to most OF the banks that had been en-
pt lie der / ha-
came proper TO explain to Congress, al it, late
sion, the injurious influence of the measure on the
financial operations of the Government, and the
losses thus caused to its numerous creditors among
the various classes OF society," with those preventives
as well as guarantees against them hereafter, which
seemed appropriate and feasible. Perhaps il is not
now necessary to enter further into that subject in
order to discharge the painful duties which such
state OF things imposed upon the head of this De-
partment. In consequence of what occurred, Con-
gress passed an act to facilitate settlement with
the depoSite banks which, as before observed is in
the course of execution and which is the only new
measure Of legislation adopted by both Houses that
indicates the future relations intended to be pre-
served with these institutions. But as the condition
of most of the banks throughout the United States
since the suspension of specie payments, might have
an important bearing on this and other subjects
nected with fiscal concerns an extensive correSpon-
dence has been opened in relation 10 H.
lhe result, SO Tar as their affairs can be ascer-
tanned, with much accuracy will now be presented
Their condition, whole, does not appear TO
have altered very materially during the year. in
respect 10 the relative proportion OF all their immc-
diate means and liabilities, but in several o,her re-
spects the changes have been essential. One por-
ton Of the new returns which have been procured
is dated near the Isl Of January, 1887 a few
months before the suspension Of specie payments,
and another portion, casScd separately, Is dated a
few months subsequent 10 the suspension. Within
that time the whole discounts appear 10 have been
reduced only about twenty millions of dollars still
being over five hundred millions. The nett orac-
tive circulation of bank paper is supposed to have
been curtaed but sixteen or seventeen millions,
leaving over nine-nine millions. The deposites
have been lessened thiry-sx but they are sill in
the large amount OF ninetytbree millions Of dol