The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-12-05


q Minister Extraordinary has been received, accre-
diied TO This Government from the Argentine Con.
federation. E
An exposition of the fiscal affairs Of the Govern
ment and OF their condition for the past year. will
be made 10 you by The Secretary Of the Treasury.
The available balance in the Treasury, on the lst
OF January next, is estimated al ~, 765, 312. The
rcceips'of the year, from customs and lands, viii
probably amount TO $40 ,596 These usual sources
of revenue have been increased by issue Of Trea-
sury notes; OF which less than eight millions OF dol
lars, including interest and principal, will be out
standing at the end OF the year, and BY the sale Of
one Of The bonds q the Bank Of the United States,
for ~ 254,S ST. The aggregate Of means from these
and other sources, with the balance hand on the
Isl Of January last has been applied 10 the payment
Of appropriations by Congress. The whole expen-
dure for the year on their account including the
redemption OF more than eight millions OF Treasury
notes, constitutes aggregate Of about forty millions
Of dollars and will sill leave in the Treasury the
balance before stated.
Nearly eight millions Of dollars Of Treasury notes
are TO be paid during the coming year, In addition
to the ordinary appropriations for the support of Go
vernment. For both these purposes, the resources
OF the Treasury will undoubtedly be sufficient if the
charges upon II are not increased beyond the annual
estimates No excess, however is likely to exist
nor canNthe postponed instameni Of the surplus re-
venue be deposited with the States, any consde
rable appropriations beyond the estimates be made,
without causing deficiency in the Treasury. The
great caution advisable at all times, of limiting APP
preparations TO the wants Of the public service Is
rendered necessary at present by the prospective and
rapid reduction 0: the tariff; while the vigilant
jealousy evidently excited among the people by the
occurrences Of the last few years assures us that
they expect from their representatives, and will sus-
tain them in the exercise Of the most rigid economy.
Much can be effected by postponing appropriations
not Immediately required for the ordinary public
service, or for any pressing emergency and much
by reducing the expenditures where the entire and
immediate accomplishment of the objects in view is
not Indispensable.
When we call to mind the recent and extreme en-
barrassments produced by excessive issues Of bank
paper, aggravated by the Unforeseen withdrawal of
much foreign capital, and the inevitable derange-
ment arising from the distribution Of the surplus re-
venue among the States as required by Congress;
and consider the heavy expenses incurred by the
removal Of Indian tribes by the military operations
in Florida; and on account OF the unusually large
appropriations made at the last two annual sessions
ofCongress for other objects; we have striking evil
dence in the present efficient state of our finances OF
the abundant resources Of the country fulfil all its
obligations. Nor is il less gratifying find that The
general business of the community, deeply affected
as II has been, is revivng with additional vigor,
chasened by the lessons OF the past and animated by
the hopes OF the future. By the curlailment of pa
per issues by curbing the sanguine and adventu-
rous spirit OF speculation and by the honorable APP
plicalion Of all available means TO the fuflment Of
obligations, confidence has been restored both al
home and abroad and ease and facility secured TO all
the operations OF trade.
The agency ofihe Government in producing these
results has been efficient its powers and means
permitted. BY Withholding from the States the de-
posite OF the fourth inSament, and leaving several
millions al long credits with the banks principally
in one section Of the country, and more Immediately
beneficial 10 il; and, at the same time, aiding the
banks and commercial communities in other sections
by posponng the payment of bonds for duties TO the
amount OF between four and five millions Of dollars
BY an issue OF Treasury notes means TO enable
The Government 10 meet the consequences of their
indugencieS, but afording, at The same time facili
ties for remittance and exchange; and by steadily
declining TO employ as general repositories OF the
public revenues, or receive the notes of all banks
which refused TO redeem them with specie by these
measures, aided by the favorable action of some of
the banks, and BY the support and cooperation of a
large portion OF the community, we have witnessed
an early resumption OF specie payments in our great
commercial capital, promptly followed in amos,
every part of the United States. This result has
been alike sauIary 10 the true interests of agriculture
commerce and manufactures TO public morals, res
pect for the laws and that confidence between man
and man which is essential in all social rea-
tons.
The contrast between the suspension of 1914 and
that Of 1887 is most striking. The short duration
of the latter the prompt restoration OF business; the
evident benefits resulting from an herence by the
Government 10 The cons itutional standard OF value,
instead OF sanctioning the suspension by The reee'p
of irredecmable paper; and the advantages aei'stu
from the large OF specie introduced MO Inc
country previous to 1887 afford valuable iluslra-
ION OF the true policy Of the Government in such
crisis. Nor can the comparison fail TO remove The
impression that national bank is necessary in such
emergencies. Not only were specie payments re-
sumed without its aid but exchanges have also been
more rapidly restored than when il existed thereby
showing that private capital enterprise, and pru-
dence are fully adequate TO these ends On all these
points experience seems to have confirmed the views
heretofore submitted 10 Congress We have been
saved the modification of seeing the dSresses OF the
community for the third time seized on 10 aSen upon
the country SO dangerous an institution and we may
also hope that the business OF individuals will here
after be relieved from the injurious effects oil con-
tinued agitation Of that disturbing subject The
limited influence Of national bank in averting de-
rangement in the exchanges OF the country, or IN
compelling the resumption OF specie payments, IS
not less appa than its tendency 10 increase
inordinae speculation by sudden expansions and
contractions lis disposition TO create panic and en-
barrassment fort promotion OF ITS own designs; It's
interference with politics. and its far greater power
for evil than for good either in regard 10 the local
institutions or the operations of Government itself
What was ia these respects but apprehension or OPT
MON when national bank was first established now
stands confirmed by humialng experience The
scenes through which we have passed concusively
prove how little our commerce, agriculture, manu-
features, or finances, require such institution, and
what dangers are attendant on its power-a power,
trust, never to be conferred by the American people
upon their Government and still less upon indivdu-
ais not responsible to them for its unavoidable abu-
SEES
My conviction of the necessity of further legisla-
tive provisions for the safe keeping and diSburSe-
ment Of the public moneys, and my opieion in gari
to The measures best adapted to the accomplishment
of those Objects have been already submitted to you.
These have been strengthened by recent events and
in the full conviction that time and experience must
still further demonstrate their proprety, feel it my
duty, with respectful Difference TO the conflicting
views of others, again to invite your attention to
them.
With the exception of limited sums deposited in
the few banks still employed under the act of 1886,
the amounts received for duties, and, with very in
considerable exceptions those accruing from lands
also, have, since the general suspension of specie