The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-03
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The next thing to examine, is the mode by which
you propose TO provide for the deficiency in the re-
venue that you estimated there will be the present
year. The proposition made by you TO do il by an
issue Of Treasury notes. iryedeemabte in payment Of
public dues, and payable at the periods specified in
your report, believe there few to be found who
Will not declare il TO be contrary to all sound inan-
ciai principles well as devoid Of every charace-
risc appertaining TO an accomplished and talented
statesman
Mr. Crawford whose great financial talents | APP
prehend you will not question, in one OF his most
important state papers, declared, that an issue of
Treasury notes BY the Government ought never TO
DC resored 10, except for small sums, and to meet
merely temporary deficiencies in the revenue
Acting upon this principle, he resorted to direct
loan in 1920 10 meet deficiency that occurred in
The revenue, from the embarrassed state Of com
mcrce in 1919; by which the ordinary receipts from
customs and lands were greatly diminished.
In this example Of Mr. Crawford, the proposal
to issue Treasury notes in any shape or character
made BY you, stands unqualihedly condemned by that
distinguished financier. ."
Profound statesmen, in conducting the affairs Of
great nation, when they discover evils or difficulties
to exist connected with those affairs, will seek to
reach the root of them, and then efectuay and per-
manently remove them They resort not to, but dis
card palliatires, if suggested to them, serving to
aggravate and proong, rather than remove such ex-
listing evils and difficulties.
Upon what calculation or principle, even If the
issue of Treasury notes were sanctioned by financial
wisdom and experience you propose 10 make those
provided 10 be issued in our report, payable in
twelve eighteen and twenty-four months, | am at a
perfect loss TO discover. 1t appears TO me to be
mere palItatire; temporary resort 10 meet and get
rid ofimmediate pressing exigences.
Either the revenues OF the country must be greatly
augmented by increased taxation, or the expendi-
lures be vastly diminished, the revenue from ex-
listing sources will fail far deficient in the amount
required TO meet them.
In your report accompanying the independent
Treasury Bill, made TO the House of Repre-
senlaiYeS, you make frank admission, that there
must be deficiency in the revenue as well for the
year 1889, as for the present. Upon what principle
is II then that you contemplate redeeming in that
year. out OF a deficient revenue, part of the Trea-
sury notes you propose to issue 10 meet the def
cheney Of this year.
In 1910, when you propose to pay the balance Of
the Treasury notes, to be now issued, further re-
duction Of the revenue under the compromise act
takes place, and another million or more must then
be stricken from what the receipts may then be-
Under the most favorable anticipations in which we
can with propriey indulge, as 10 the commercial
prosperity with which the country may be favored,
we can hardly suppose the revenue from present
islng sources will fully reach the amount of ex-
pendures in 1910; and not exceed them in lSil.
In 1912, further and greatly augmented reduction
must be made under the compromise act. On the
LIST of January of that year two and half millions
must be knocked off at one blow, and on the 1St OF
July following like sum Of two millions and half
more be stricken from what the amounts of collec-
tons from imports at these two periods may be.
In this erpose, have studied to lay before the coun-
try the facts as believe they do and will exist in
all fairness and candor. dvesied alike of partially
and prejudice. The subject is one, in which the
whole country is deeply interested, and ought to be
fully made acquainted with. Taxes whether raised
through direct or indirect means reach the pockets
of nearly every individual member of the nation
therefore, every one has undeniabe right and it
is his privilege TO express his appreciation dis
prova of the manner in which the financial affairs
of the country managed well give his views
the manner in which he believes they ought to
be conducted.
deem il the duty of those who administer the
affairs of the Government and an act of wisdom as
we'll as of sound policy, connected with all and eve
~ consideration, 10 lay before the country plain
and full explanation of the present and prospective
condition OF its financial affairs Let the people
know the utmost extent to which the treasury is al
ready or may become embarrassed Remove the
delu>on under which many now labor, that the
States are to receive another insalment, of nine mil
lions from the public treasury So far as the wants
of the Government will require to meet the demands
that may come upon it, create stock, come into the
market openly and boldly invite offers to lend the
Government-encourage competition; and thereby
obtain the money that may be wanted at the cheap
est rate.
When il must be apparent to all, who will give
themselves the trouble to investigate the condition of
things and the state ofthe facts connected with Them
that money will be required for that number of
years, for which it can be readily obtained at The
rate OF four and half per cent per annum; is it an
act Of wisdom to borrow it under another name, al
the rate of six; and for period, that, when il ex
pires, the loan must be again renewed?
Borrowing money on the security of Treasury
noes, issued for the purpose, while it may change
the manc does not change the real character of The
transaction. Ii is still borroring money for which
the country becomes indebted II is asking for a
loan.
When nlSl4, Mr. Dallas was placed at the head
of the Treasury Department. he found il in SINH
lar state of arrangement and confusion to which ap
pearances indicate ii is now reduced; and probably
in both cases, arising from not disSimilar circum-
stances. He, as well from what he considered his
duty to the public called for, as what his own repu
tation demanded, Immediately laid before the coun-
try full, ample and lucid detail of the condition Of
the financial affairs of the nafion That was in the
highest degree satisfactory; and inspired renewed
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