The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-06-14

n heavy European debt absorbing every DOL
lar that could be disengaged from the runs OF
commerce.
There was no alternative, as | conceived,
but an issue of Treasury notes TO meet the
exigency, and to furnish temporary supply.
Now the condition Of affairs is altogether
different. The foreign debt has been wiped
off; exchange has been turning in favor OF
this country, and the precious metals are again
pouring in. Money is once more abundant,
and to be had at the lowest rates.
TASK, then, why is this Treasury issue to
be continued, on terms SO onerous to the coun-
try, when the supply may be had in coin, if
required, on far cheaper terms!
Let us estimate the difference in cost. BY
the late law, twenty thousand dollars was APP
propriated from the Treasury, to defray the
cost Of the emission, including the salaries of
four extra clerks at $1,000 per annum each, 10
keep the accounts. These clerks and these
salaries at least must be continued SO long us
the system is kept up.
Then the rate of interest must be at the
least per cent; and when we allow for de-
probation, which 10 my apprehension is in
evitable, the loss to the Treasury will fall in
proportion.
On what terms, then, could a loan be OBJ
tanned? | pretend 10 no certain knowledge
on this head but. from the best sources Of
information to which can refer, Government
stock having from three 10 Ave years TO run
would bring par in the market, and yield coin
or its equivalent, at an interest OF from IL
to per cent.
But we are told by the Honorable Chair
man that loan would be uniustiiable,"
L - lie ,txa
ment will have the money from It's own re-
sources for the year, before The loan could be
made available And for these resources he
refers to the instalment from the deposite
banks in the South and West TO fall due in
July, the merchants bonds for revenue, on
which time has been allowed, and the bonds
Of the Bank Of the United States, all which
he estimates at some seven millions Of dol
lars.
Now, sir, in reply 10 all this, quote back
upon him an authority which he, at least can
not venture 10 contradict. quote his own
report upon the state Of the finances made to
us on the 9Th Of March last; when, after
dispassionate and extended view of the whole
ground, he says:
g It is obvious that, far from being surplus there
will be deficiency, which be supplied either BY
reissue Of the Treasury notes redeemed by an
horty 10 issue others Iaerf The least pfobaiii-
NJ that repenue for i,co years 10 come will be canal
to the wants OF the Government; and If for the merit
four years shall be sufficient TO meet our. expendi-
lures and 10 redeem The Treasury notes rhch hare been
may be hereafter ssued, will be full as much as
can be reasonably anticipated"
And again, in the same report, speaking of
the probable time for redemption Of this pa
per, he says:
The Treasury notes required for the service of 1888
and 1889 will only be issued discharge claims as the
money may he wanted and any surplus which may
accrue IN s40 and ls4l trfA be Immediately applied 10
their redemption"
What broad admissions have we here, sus-
tanned, too, as they are made, by facts and
reasoning in the report, in oposition to conf
dent declarations thrown out in debate Let
the honorable chairman reconcile them if he
can. What, then, are the facts Why, that
iar T-l...ry free from debt, The revenue
would not be equal to the wants of Govern
ment." And with this burden Of ten millions
of debt in Treasury notes, to be redeemed, it
WILL under the most favorable circumstances,
require four years, at least, to effect it, and
meet ordinary demands at the same time. The
years 1910 and lS4l are presented as the
earliest period at which any surplus can be
spared, to begin the final redemption of the
Treasury notes.
But, sir, without this authority from the
committee, we have enough in the report of
the Secretary himself, communicated to this
House but two days ago, to satisfy us that
the Treasury is in no condition, from resour-
ces ordinary or extraordinary, to provide for
this debt at any time earlier than that indicat-
ed in the report
He tells US that, on the day his letter is dat
ed, the whole money in the Treasury availa-
BILE for use but little exceeded 100000 dol
lars, and Of the ten millions Of paper au,ho-
rized to be issued in October last, The whole
had been used, except about 200, 900 dollars,
making for available means on hand. not six
hundred thousand dollars, with nearly four
millions and half of Treasury paper yet I'M
redeemed.
!" That, during the present year, the reve-
nue. had been paid in Treasury notes to such
an extent that only about one fomth of mil
lion monthly had been received from il in mo-
ney, so as to assist in discharging the current
expenditures" while they (the expenditures
had, on an average, for the current year, been
over two millions monthly, and, in April, near
ly three millions
And, looking forward, he further saws, as
more than four millions of the Treasury
notes are still outstanding, and the banks ge-
nerally have not yet resumed specie pay
ments, 10 is probable that great part Of The
reuenue wiH, for some time 10 come, be paid in
similar Manner
What, then, have we before us, in all these
facts, to justify the belief that this Treasury
issue is only wanted to anticipate. for a few