The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-13
THE NATIONAL FINANCEs--DEFIcIEN
E@ -CY, LOANS.

We should feel guilty of neglect of duty did
we omit to do all in our power, to attract the
immediate attention Of Congress to the condi-
ton of the Treasury and the national finan-
ces.
A few days since we announced that there
would be deficiency in the revenues, TO be pro-
vided for in meeting the expenditures of the
present year, Of from fifteen to twenty million
dollars. The fact was new and startling to
many who had not reflected on the subject.
Since then our declaration that there will be
deficiency this year has not only been con-
firmed, but it is announced that there must be
deficiency in 1889 also, in the following ex-
tract which we take from the report of the
Committee of Ways and Means of the House
of Representatives.
"It is obvious that far from being surplus, there
will be deficiency, which must be supplied either
by reissue OF the Treasury notes redeemed, or by
an authority to issue others. There is not the least
probability that our revenue for two years 10 come
will be equal TO the wants of government and it, for
the next four years it should be sufficient TO meet our
expenditures, and to redeem the Treasury notes
which have been, or may be hereafter issued il will
be full as much can be reasonably anticipated In
the mean time, tariff is in process Of reduction
and after June 1872 the highest rate will be twenty
per cent. ad valorem payable in cash. When 1t is
considered that half of our importationS are free
of duty, it is obvious that, SO far from anticipating
surplus revenue from this source, Government will
be compelled to rely than it has done hitherto
IFS income from public lands for its support The
proposed warehousing system would also tend TO
keep the revenue down, as merchandise would only
be entered as il might be required for consumption
The Treasury notes required for the service of 1888
and 1899 will only be issued to discharge claims
as the money may be wanted, and any surplus which
may accrue in 1910 and 1871, will be Immediately
applied to their redemption In 1912 The ad valorem
tariff takes effect and the balance in the Treasury
will be easily regulated by Congress, No surplus
can therefore be anticipated; nor is there the slight
est foundation for the fear that the banks can be, in
any manner, affected by the accumulation Of reve-
in the Treasury whether il consists of specie OF
Treasury notes. Such apprehensions, for two years
TO come, We know to be untounded; for our current
expenses ard existing obligations will require all our
resources the revenue must be paid fast as il
is collected, and the balance in the Treasury must
remain at its minimum. And there is no prospect
whatever for four years at least Of surplus, whe-
Their collected in specie or otherwise, which can in
any manner, affect inluriouSy the trade, credit or
currency of the country There is, certainly, there
fore, no satisfactory reason for providing, at this
time, for The investment OF surplus which may ac.
at some future PERIOD not now to be anticipat
ed"
Never, do we believe, were the finances of
any civilized nation in so distracted a state as
those of this country at this moment. Public
officers without being paid for months--the
entire means Of some of the banks here alb
| sorbcd in loans made to the Government
claims Tor millions waiting for the passage of
appropriations to be satisfied and paid--and to
cap the climax a Treasury nearly exhausted.
In this condition of things, the Government
is excrting through "ihe party its utmost to
destroy the credit system, when it exists now