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


necessary hereafter, unless before The close oi ue
session. Il shall appear that appropriations nave
been made, or are likely 10 be made, exceeding inc
estimates submitted by the Department in Decenper
last, by several millions or that the revenue WIN 70
materially less"
Against this reasoning OF the committee,
then, and these facts OF the Secretary. how
vain and idle is il for gentlemen to declare
roundly in debate that the cxigency requiring
this Treasury issue will pass off with the year
that produced il. Ii there be any who believe
il in truth, can only say their creduliiy Is far
greater than mine. We are told. however, by
an honorable member from South Caralina,
Mr. RHErr,) that il is monstrous 10 advocate
loan, for that would be the creation OF ma
tional debt; thing in every way TO be alb
horred. Sir, have / understood that gentle
man arghtl In his reply TO his colleague,
CHR. THoMrsoN.) who denounced tins lrea-
sury issue as unconstitutional, did ] not I'M
derstand him 20 sindica,e IL, on the single
ground that Il was but loan in another form
That the Constitution gave full power TO bor-
row money, and this was one and legitimate
mode ofexercsing that powerl Mr.. RHErr
here interposed, and was understood to say
that by national debt he meant permanent
debt.
Mr.. MASON resumed: A permanent debt
sir. What does the honorable gentleman
mean by that Distinction The debt itselfis,
in fact, already created, and its permanency
depends altogether upon the time within which
you can redeem or pay il of. What Is the
honorable gentleman's idea of permanency!
This debt was authorized under the law OF
October last. II has been already fully in
Cured by an issue Of the whole ten millions.
Nearly one-half oft is yet unpaid, and we are
now asked to have the loan renewed by an
other issue Of the same amount. II is in proof,
by facts and reasoning from the highest
sources, that Il cannot be cancelled for four
years to come, iE indeed, il require not a
longer time. What then are we to do! Why,
when we return here in December, continue
the loan for half year more by new issue
of Treasury notes, and so on from time to
time, until the revenue is adequate to afford
sufficient surplus beyond expenditure to wipe
il of. Are we then to be frightened by sha-
dows; by this spectre Of public debt when
we have il before US already actually incurred,
fixed upon the Treasury beyond retrieve! No,
sir; |, for one, am for ting it boldly and
aboveboard. The Government owes the
money, and must have il. would have them
to 60 abroad, like men Of character and credit
IN private life, who manage their affairs with
economy and thrift, and borrow the money in
open market upon the best terms it can be
had; and not, like mendcants, borrowing at
disadvantages from day to day, or from half
year to half year, in the vain hope of keeping
their necessities out of view. This, sir, re-
gard as the true and honest policy; il is the
only end at which aim in my opposition 10
this bill. 1t is due from us to the people we
represent, upon whom the burden falls, that
we should borrow the money upon best terms
to be had, by extending the loan to period
when we expect to pay, and not to increase
the cost by a series Of short and delusiye
credits.
For the present exigency, and to meet the
immediate demand, have no objection to a
limited extension this Treasury issue and
for that purpose, when the proper time shall
come. naY Spdeg. ts aqvPd thiS hill llllap, lRiyr
at least four years to come, am for meeting
il at once by a loan for that period, at the low
est rate of interest, and to have done with this
wretched substitute of short credits, at high
rates, upon deprecated paper.
few words more, sir, in reply to what fell
from the honorable member from South Caro-
lima, Mr.. RHETT,) and will pass to another
part Of this question. In advocating this bill,
understood him TO say that it had been the
invariable practice ofthe Government to raise
money by an issue of Treasury paper in pre-
ference to loan, whenever the condition Of
the revenue required an extraordinary supply
Sir, the honorable member is entirely mis-
taken. The facts are historically against him.
have shown already that it was first intro
duced by Mr.. Gallatin, In aid of a loan that
il was not even proposed until the loan had
been tried, and failed and at last was con-
ceived and recommended exclusively as a
subsidiary, and in no sense as a primary mea-
sure of supply; that, In 1914, though recon-
mended by Mr.. Eppes as medium Of circu-
lntion, to rest on funded debt, Mr.. Dallas
denounced it as ian expensive and preca-
rious substitute.' And have now to state,
in addition, that Mr.. Crawford, then Secretary
OF the Treasury, in estimating the supplies for
1920, recommended that deficiency shown
to exist should be met by loan in preference
to an issue of Treasury notes, and loan Of
two millions, the amount required, was order
ed accordingly.*
The facts, then, being against him as to the
practice of the Government, submit to the
honorable gentleman, on which side is the
weight of authorityl
But, sir, the same gentleman, in the excess
Of his zeal in favor Of this most expensive use
| of public credit, talks Of loan MS bringing
the Government to the feet of the moneyed
power in the country.
would respectfully ask, what is the mo-
neyed power in this country, Of which he has
SO holy a HORROR Does he mean BY the
moneyed power those men, dispersed every
where through the country. who. bv patient