The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-19
COMMUNICATIONS.
TO THE PRESIDENT oFTHE UNITED
STATES.

ol,, un,n those whom he selects, and 10 whom be
entrusis The manag ,ment Of the great departments
of the Government yet, 10 aeeI'ain extent ne must
be responsible for the manner IN when ihey are
conducted and his administration must also be al
,ec,ed through The character that is reflected upon
nv The ability or want Of ii which is displayed in
their management
The people have deep interest in the proper
management Of the fiscal department Of the Govern
ment more particularly than in that Of either OF The
others because its power and influence is so exten-
siye as to affect the monetary and commercial affairs
of the whole country.
Mr. Lloyd, formerly Senator from Massachusetts,
and one of the most accomplished fnanciers this
country ever produced, in speaking of the power the
Government could exercise through the revenues in
January, 1877, said, The Government can and ,ciR
gtre to il (the Bank U. States,) eventually para
mount porer and Influence, thoughts deposites and
The eoectioaof its yereaue, oreraR The other moaeyin
situations in hs country"
How vastly important therefore, must il be, to the
welfare and prosperity Of the country, that such
tremendous power as this, should be conided to the
hands of such only as possess ability, sound judg
ment, and discretion, TO employ it in such manner
as will advance the prosperity of the country and its
institutions
the evils which must follow, fall upon and affect ev-
cry interest Of the country if this power should be
entrusted to the management of unskilful hands.
l need not say that the country is now suffering
under most dire calamity. Every member Of the
community sees and feels it,
l may be charged with rashness in ascribng the
suderings which preceded the catastrophe which be-
fel the country; that, and the miselies which sue
ceeded it, to the unskifu manner in which the inan-
cial department of the Government has been manag-
ed | should pause myself in ventpring to take
such bold STEP was not fortified with proofs I'M
answerable, and incontroveItibe. n..
Never since the formation of the Government,
apprehend, has the country had the misfortune to
have its finances placed under the management OF
one SO little qualified 10 perform that Office as the
present incumben, of that department. His own re-
ports, front the first to the last exhibit tissue ofmis
takes, which would cast disgrace upon mere tyro
in finance
The Secretary in his report of December 1884
estimated the receipts of the last quarter fthayear
at 81 100000 They amounted TO 81, 467,000 Here
an error Of nearly million and quarter in the
estimated receipts ofthree months only. In the same
report he estimated the whole receipts of revenue for
1895, at 800 900, 600 The actual receipts that year
were 1886, 10000 There was an error in that year
of about fifteen millions and half of dollars! In
1885 he estimated the receipts of revenue for 1886 at
$40, 10000 The actual receipts that year were
$iS,S73,0 600 There was an error that year, gilmore
than twenty nine millions of dollarsi In 1886 he
timated the receipts of revenue for 1887 at 1874 000
600 In his last report he states the actual receipts
for the three first quarters of the year ohave been
SIS, lH000 and he estimated them from ordinary
sources for the last quarter at IA 100000 In this he
-, erred again about five millions, the other way
In the last report of the Secretary of the Treasury,
he said IL appears probable that, during the merit
gear, 1riH be possessed, actho any permanent
loans recall of former depostes increase Of tares
sufficient 10 redeem seaSonabiy the Treasury notes that
become payable rel to meet all The ordinary APP
preparations" In four months after this statement
laid before the country, the chairman of the
Committee of Ways and Means reported a bill to au
thorize loan of four millions of dollars !!
Is there not enough contained in those facts to
prove most conclusivey that the Secretary is wholly
unacquainted with the very first principles Of nature,
CAUSE AND EFrEcrl Upon what principle was it,
that in 1884 he estimated the receipts of 1886, at
less than he had the year before estimated those
of 1851 He then had the evidence before him, that
great expansion ofthe currency and business ofthe
country going on in the vast increase of receipts
in that year beyond his previous estimates. Again
in 1886, what principle was it, upon which he es-
mated the receipts of 1887 at four millions and a
quarter than he had previously done those OF
1862 AT that period he had the evidences before
him ofdis,ress and embarrassment existing through
out the commercial community. He could not but
have seen that revulsion had already commenced
and was rapidly extending itself2 ~.
In your message of September last, you spoke of
10 hat rood N of
and of the consequences that followed it: And you
then remarked, III impossible that such state
ofttingsconM long continue that The prospect Of rcruI-
sion cas present 10 the mind coaSiderate men before
actuallv came" But did such reflection present it.
self to the mind of the Secretary of the Treasury
1t would seem not if we are to Judge from his es-
mates of receipts for 1887 made in 1886.
In the minds of all considerate men, Iapprehend
| shall be sustained in the opinion which maintain,
that the Secretary of the Treasury stimulated the
reckless spirit of speculation which had then reach
ed an extravagant and dangerous pitch, through the
redundancy of credit in increasing the same by d-
rectng the deposite banks in which large sums
were deposited to leave with other banks (not depo
se) be loaned out by them such excuses as they
could not themselves loan out under their corporate
limitations This was doEe about the close of the
year 1885, when the Secretary that the receipts
Of revenue that year amounted to almost the double
Of his estimate fthe year previous
In my humble opinion sagacious fnancer would
here draw the conclusion, from such evidence, that
the interests of the country and the people could have
been more essentially benefited BY making the pub
lie money >ubserve the purpose of REFRESHING rather
than stimulating the active spirit Of enterprise, then
in full and active operation.