The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-12-19

| not every man see that we have vast debt Inn
| medately before US Z
But is this alll- is this all am inclined TO
think that, in one respect, at least, IL IS not all
The Treasury think, has not duly distinguish
ed, in reference TO one important branch OF It's
administration, between Treasury funds proper
and trust fund, set apart by treaty stipulation,
to be invested for the benefit OF certain Indian
tribes. | say the Treasury has taken, as belong
| ing TO the Government, that which properly be-
| longs a trust fund which the Government
engaged TO invest IN permanent stocks for the
benefit Of certain Indian tribes. This makes it
necessary Mr.. w. said, to look little into these
| trust funds. He referred TO public documents 10
show that these trust funds had been invested in
different State stocks, upon some of which pur-
chases considerable premiums had been paid
These trust funds, according TO the statement of
the Secretary Of the Treasury, had been mixed
up in account with the general funds of the
Treasury, instead of being invested, according
TO the intent of treaty stipulations, in permanent
stock 10 be held perpetually for the use OF the In
dams. The fact appears TO be that, instead OF
keeping separate account Of these trust funds
the amount purchased has been passed to the
general credit of the Treasury accounts, and the
cost of stocks for their investment has been
charged on the other side. As matter of ac-
count and bookkeeping this might be thought
correct, or il might not; but Mr.. w. said he
| thoughtit would have been better TO keep sepa-
rate account forfunds thus held in trust, as every
private individual does, who is made trustee
for the interests of others II the facts were as
he had gathered from the report submitted to
Congress, here were three or four hundred thou
sand dollars of the trust fund not invested, and
which remain vet to be invested for the benefit
of these Indian tribes. AS to the rates at which
the stocks had been purchased, Mr. W. said he
found that certain Alabama stocks had been
bought at various and remarkable rates of pre-
atat aIx rttc,.
larity by Mr.. W.-but in this hasty sketch, the
reporter cannot undertake TO give them, but wil,
If practicable, prepare note Of them for another
| We have treaties with number of tribes ra-
tilted within late years (said Mr.. W) by which
we stipulated to invest the proceeds OF these
| lands in stocks OF permanent kind bearing in
terest. We are indebted, therefore, to these In
dams in the whole amount we agreed to pay for
| these lands, which have been transferred TO us,
| surveyed, put in market, and large portions OF
which, | suppose, have ere this been disposed
of We promised to invest the proceeds for
| their benefit-which has not been done In
stead of asking for money wherewith to pur-
| chase thse stocks, the Treasury has been con-
tented to ask for the amount Of interest only,
holding the United States debtors to the Indians,
whereby debt to all intents and purposes, to
| the whole amount of this trust fund.- is created,
and il is to be added to the amount of debt due
| by the Government. | do not say IT must be
paid to-day, or tomorrow, but it is an outstand-
| ing debt; the Government IS under an undis-
charged treaty obligation to raise the money, and
with il TO buy stock for the benefit of the In
dams
| After pointing out some discrepancies in the
Treasury reports in regard to these investments,
Mr.. w. went on to the consideration of other
outstanding demands upon the Treasury. That
| there are other debts in an unliquidated state
/ uh oh mn ba dpd for Tea 10 Y
one doubts debts for public works, debts for the
war in Florida, claims of indemnity for Indian
| spolations; and iflalf Of what we hear be true,
the amount of these collective obligations cannot
but be large.
Here, then, understand there is heavy
debt hanging over the country, consisting OF va
rous items-some for borrowed money, some to
meet Indian treaties, and others to pay claims
and accounts not vet liquidated-all Of which
must be provided for and taken into consldera-
ton in any fair estimate Of the ways and means.
| agree with all that is said in the Message as
to the great impolicy, in time OF peace, OF com
mencing public debt; but it seems TO me rather
extraordinary and inappropriate in the Pres-
dent to admonish others against such measure,
with all these facts Immediately before him.
| None doubt, in point of principle or expedi-
ency, as to the creation OF public debt, whether
in the form Of stock or of Treasury notes bear
ing interest and renewable or, if there be any
difference in point of expediency, none at least
can entertain any great doubt which of the two
forms is best Treasury notes are certainly not
the cheaper Of the two
| Now, we find the existence of this public
debt as early as the existence of the present
Administration itself. II began at the called
session in September, 1897 From the date of
the first Treasury note BILL in September, 1887,
| there has been no moment in which the Govern
ment was not in debt for borrowed money. The
Secretary says it is not expected that the Trea-
sury notes now out can be paid of earlier than
in March, 1912. In whatever soft words he
chooses to invest the matter, the sum and sub
stance is this: that there must be new issue OF
| Treasury notes before the Government can be
! freed from embarrassment.
must confess that it seems TO me that the
scope and tendency of the remarks in the Mes
sage do go to produce an erroneous impression.
| Here are series of very strong sentiments
against public debt-against beginning pub
| lie debt-and all said in face Of debt already
begun-existing now, and under such circum-
stances as create the fear that il will turn out to
be very large one We know that these va.
rious outstanding charges cannot, al least will
not be, brought together and presented in one
aggregate sum for some months to come. Is Il
intended by this document to forestal public OPT
Mon, so rs, when il shall appear that there IS
public debt, to give TO il date posterior 10 the
9TH of March next2 hope not. ! do not i'm
pute such design. So far, however, as ! am
concerned, shall take special good care TO pre-
vent any such result | shall certainly recon-
mend that there be a new set of books opened
that there be what merchants call "a rest."-
That what is collected prior TO lS4 l, and what's
expended prior TO 1871, stand against each other;
so that, if there shall appear balance in favor
of this Administration, it may be stated; and II
the result shall be that the Administrator is left
| in debt let that debt appear and let it be demo
| IL 90 tb, 1alt af t1yhIc Al
the duty of Congress to provide for.
In one or two other respects the Message IS