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

consideration OF these two bills, and that they
| be rec0mmitted TO the committee that brought
/ them in which was done accordingly And
thereupon and forthwith thereafter, he report
ed the third bill, being that now under consi-
dera.ion, and bearing the very equivocal title
OF A bill TO carry into effect an act approved
the 18th Of October, 1887, to authorize the
issuing of Treasury notes"
Thus we have had, in the short space Of
one month, running from the 23d day Of March
to the 23d Of April, three several schemes
for supply. reported from the Committee of
Ways and Means, each variant from the other,
and each proposing for itself to raise the sup
ply by its appropriate machinery.
The first was loan through the medium of
Treasury scrip.
The second, an issue Of Treasury paper to
the amount, and in lieu Of such as, under the
provisions of the formerlaw, had returned into
the Treasury and been cancelled.
And the third, an issue Of Treasury paper
to the amount of $l0,0O0,00O, i'm .fscu OF the
entire emission authorized by the former law,
and, as understand ii, TO be re-issuable and
redeemable at the discretion Of the Secretary.
Thus infrm ofpurpose in their recommen-
dation, we should have expected some lenity
and indulgence to those wha might evince a
disposition to select between the various modes
OF raising this supply, as they emanated fom
the committee, whether by loan, as proposed
in March; by partial issuesof Treasury pa
per for immediate use, and loan for the resi-
due, as proposed on the 18th Of April; or by
an emission for the whole demand, in lieu Of
either, as recommended on Tie 23d
But no, the Hon. Chairrpan can brook no
delay. From the tenor Of lis remarks made
yesterday, it would seem thatwe are expected
to carry the last project of de committee at
once into law, without even looking back, or
considering in any form what his own COM
mttee recommended SO very shortly before.
Of these noxious projects, sir, prefer that
of the 18th Of April, providing an issue Of
Treasury paper to meet immediate want, and
a loan for the residue and Iwould take it as
proposed from the Committee of Ways and
Means, with this single difference in the terms
Of loan: that, instead Of selling Treasury 6
per cent. scrip at II, Is, and "a months, /
would extend The time ofpayn,en, and reduce
the rate of interest.
As the first reason for this preference, /
have but to quote from the report of the Hon.
Chairman which accompanied the bill--an au-
thority for which ask his respect. He re-
commends the loan in preference to notes re-
ceivable for public dues, because the latter
have been found, under the experience Of the
late law, to reduce instead Of dugmentine the
revenue. Let me be understood if you please,
as adopting the objection, though not as the
chairman has conceived it. am at some
loss to know how a credit of $4,000, 900,
fully realized as so much money, can reduce
the revenue. But can well understand, if
feadee9 by 5aassr &c afises, may be unable 70
meet current demands. and at the same time
to absorb the issue under il. And this is the
true pith of the objection TO any similar issue,
as it is taken in the report Of the committee
an objection that was ably taken, and well re-
lied on, however misconceived in its applica-
ton. .".
What was the condition of our revenue
then !! A sudden and violent revulsion had
just occurred in every branch Of trade and bu-
sincss, putting a complete stoppage upon the
whole. There were no customs, because i'm
portation had ceased, and Of the public lands
the sales were at an end. Being cut off from
the supplies Of trade, our merchants could
not pay the revenue bonds gwen before the
catastrophe. And Of the public money on
deposite all had been used, which, from its To-
cality, could be made available. The banks
too had suspended payment throughout the
country, and all sources of revenue were cut
off alike from the Government and from its
debtors.
In this state of things, Congress, at the spe-
cial session, ordered an issue of Treasury
notes, redeemable in twelve months, and in
the mean time receivable in payment of public
dues. then preferred the bill in that form,
and, under the circumstances then existing,
should certainly have that preference still.
First, because it was the only means by
which the Government could make its credit
available. A loan could not have been nego-
caed on any terms, certainly not at home,
for there was no money disposable in market,
save the disgraced currency of the banks nor
abroad, because Of the prohibitory rate of ex-
change.
And secondly, because this disgraccd cur
rency not being receivable by Government, it
was paralyzed alike in receiving or paying its
debts; and Treasury notes receivable fur
nished medium for both.
BY this receivability Government was OBJ
ligated to retire these evidences of debt as fast
as they were presented before the entire Gre
dit expired, and it has resulted in practice that
they flowed back upon the Treasury faster
than the accruing revenue could absorb them.
Knowing well that the revenue was yet in
far too enfeebled condition to meet the Go
vernment expenditure, and provide for this
debt as it flowed in, the committee, in their
report, have earnestly demonstrated against a
like provision in the new issue.
That such is, in fact, its condition, | have
only to refer to the letter OF the Secretary of