The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-12-11

In 1887 and 1888, as compared with the two preced
ing years were anticipated by the department N
1886 and permanent provision 10 meet any oen,
cheney was earnestly urged on The consideration u
Congress.
Confident as were the expectations entertained py
many that the revenue of 1887 would be go SO siea'
to justify further large dePosiies WIN ne 49,
and severe were the censures oes.pweu W -, =
who expressed apprehensons OF dinereht fesui', q
sirikiog diminuion in the revenue actually occur
red Although any difference OF opinion on Poih'
OF SO much importance TO the public faiih was aet
y regretted by the department. yet felt constrained,
nj that lime 10 regard many appearances OF extra
ordinary prosperity delusve; The existing surplus
as temporary and lallacious 10 IT'S character ana
consequently believed that much OF j was iiSeiy 10
be required in few years 10 meet dehcieneies IN The
revenue arising from the progressive reduction OF
the tariff and those fluctuations in income and ex-
pendilure 10 which all governments are more or less
subjecl, and TO which our own system oil nrance 10
peculiarly exposed.
Apart from the contingencies of and other exi-
gencies affecting expenditure, is impossible under me
Gibbs and foods Of trade and specua'lons OF all knds
which, with the present banking SYSTEM are as certain
Though not SO regular as the tues 'nat revenue oe
rived chiefly from foreign mportaons, and the sales oil
land, should not vbrae with such changes. The De-
partment, therefore, has discharged duty deemed i'm.
peratve in urging on the attention OF Congress at Sc
veral sessions permanent and efficient arrange
meni for enabling the Treasury to such Auetua-
lions without injury to the public credit,
On occasion, permanent legislation IN respect to
this point did take place But tina, has been repealed,
indefinitely postponed by the act OF October H. 1887
and the Temporary substituted, having nearly
ceased their operation. the necessity Of further
provision is apparent The form be tho great
question Of difficulty; there being, is alprehcnded
general Of views in favor OF having some
efectual provision on subject Of such obvious impor-
lance.
The investment OF part Of the surplus in the Trea
sury State stocks, in the which for several
years has been successfully pactsed under the acts Of
Congress, rs to large belonging the Indians, so
as to constitute provldent fund TO meet contingencies
and fluctuations, the first recommended by the de-
partment But substitute for this plan preferred
by Congress- which directed the whole surplus to be
deposited with The States for saekeepng and enabled
the Secretary Of the Treasury to recall it, whenever
needed for public purposes In the autumn Of 1887.
however, when the necessity Of resorng 10 this subst
tute was III view, Congress postponed It's operation
Instead of il, the power Issue Treasury for
limited period was granted and for additional security
against deficiencies. the depasite Of the 4ih nsalnent
with the States, deferred TIL next January and af
forwards the power to sell the bonds Of the United
States Bank added But both of those powers will
soon be imperative, and without some further legisa-
ton this subject, which shall be OF efficient cha
racter and be available at early day, the preservation
OF the public faith must be endangered.
Recent experience is full Of admonition on this ques-
ton. Since the extnguishment OF the national debt,
and especially within the last three years has been the
policy oil Congress TO avoid large balance the Trea
sury Immediately available which, il unemployed for
the public service was regarded taken from the cir
culaon OF the country and in some degree boarded
though deposited in banks which had made the public
money the basis Of enlarged operations. This policy
as It obvates the hazard attending such operations,
well as the impuation Of improper influence in the
management OF the money, Is certainly the most pru-
dent But the preservation Of the public faith either
under the former practice of keeping the money in
banks, under the proposed system of an Indepen-
dent treasury, may occasionally render other
necessary, from the considerable fluctuations which
frequently occurring IN our receipts aud expenditures
from year to year. aud even from month to month
Thus the receipts from the usual sources which were
IN 1884 about twenty. millions, ros, Unexpectedly
Ia iooe fOy-eght nallinos hnt fell again as sud
denly IN 1887 to only about nineteen millions So the
aggregate expenditures in 1884 and 1885, independent
OF any payments for the national debt were
only seventeen eighteen millions; but from Indian
wars and other causes they rapidly rose, and notwh
standing the dimnutIon in receipts have renamed since
not lar IRON thirty millions yearly. Again. in the month
oil January last the expenditures were only about one
million eight hundred thousand dollars and in MAY
last, only two million two hundred and forty thou
sand dollars: but in july they suddenly increased to
over four million FIVE hundred thousand dollars being
an excess, in single month"; Of nearly two millions
and third, or more than enough sweep off, in thirty
days, the whole balance on hand Consequently, at
any period, with only million two in the Treasury
and the current receipts being less than two millions
monthly, 1t IS obvious that the public engagements
7,
like those before named shall exist to provide for calls
so unequal IN different portions of tho year, well
in different years. Though the receipts for any one
year may be equal TO the whole expenditure within it,
even that will not remove the difficulty The exper d.
lures may be required in larger proportions the first
half OF the year, ard the greatest receipts in the
last half.
Having the power to issue Treasury notes during
1883 the department has been enabled by the aid Of
that and other means meet every authorized engage
a nf n sip,lark ,,Ih aa
been found ~ other countries, during than
tury, to be indispensable sustain public credit If
We keep only small available balance in the Treasury
and realize only the comparatively small income which
is desirable since the discharge OF the rational debt and
TINS income shall continue to DO affected by the perod-
cal fluctuations OF receipts which probable, under
the changes going in the tariff, well as 10 banking
and the habits OF trade this power some equivalent
resource, seems 10 be essential the support Of the
public faith the scrupuous manner required by Justice
and sound policy.
The estimates Of expenditures in 1885, have been
formed on the most economical basis which the different
departments think the public interests will permit
They less than those Of either OF the two
years under many heads, and are several millions less
than either the appropriations made by Congress in
those years, or the expenditures actually paid within
them. Judging from past experience alone the proba-
hIlties would be- that the appropriations be made
inc present session will exceed by some millions the
Inmates submitted.
Bot such additional appropriations, 10 any consider
able extent are not anticipated, when the whole
stances OF the country and Of the Treasury shall have
been calmly reviewed by Congress. No doubt exists
with the undersigned that prudence at this time REQUIRES
reduction, rather than increase in the aggregate Of
the annual appropriations Besides what is dictated on
this subject by wise public frugaly and the straen-
ed condition OF the Treasury, probable that by the
gradual reduction 10 the tariff which progress IN.
der the existing laws, the receipts from customs, which
now average sixteen seventeen millions YEARLY will
by 1872, be so far diminished as not then to exceed ten