The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-12-10

the success win which embnrTassmens IN regard W
them, at times apparently insurmountable have been
| overcome, are matters upon which the people and Co
yernment Of the United States may well congratulate
themselves An overlooking treasury, however ~ may
be regarded evidence OF public prosperity Is sell
dom conducive 10 the permanent welfare oil any peo-
pie and experience las demon lis nconpati-
bility with the salutaIy action of political institutions
like those OF the United States Our safest reliance
for financial efficiency and Independence has on the
contrary been found TO consist IN ample resources UNI
encountered with debt and in this respect the Fede
raj Government occupies a singulary fortunate and
| truly enyiabe position
When entered upon the discharge of my official
duties in March, 1887 the act for the distribution OF
the surplus revenue was in course OF rapid execu-
ton Nearly twenty eight millions of dollars OF the
public moneys were, in pursuance of its provisions,
deposited with the States in the months OF January,
April and July, OF that year In May there occurred
general suspension of specie payments by the banks
Including with very few exceptions those in which
the public moneys were deposited, and upon whose fl
deity the Government had unfortunately made itself
dependent for the revenues which had been collected
from the people and were indispensable TO the public
service 4 his suspension, and the excuses in bank
ing and commerce out of which it arose, and which
were greatly aggravated by its occurrence made TO
great extent unavailable the principal part OF the pub
lie money then on hand suspended the collection OF
many millions accrung on merchants bonds; and
greatly reduced the revenue arising from customs and
the public lands These effects have continued to
operate, in various degrees to the present period and
in addition to the decrease in the revenue thus pro-
duced two and halt millions of duties have been re-
linquished by two biennial reductions under the act
of 1888 and probably much more upon the Imports
ton of iron for railroads, by special legislation
Whilst such has been condition for the last four
years In relation to revenue we have during the same
PERIOD been subjected to an unavoidable continuance
of large extraordinary expenses necessarily growing
out Of past transactions and which could not be imme
datey arrested without great prejudice the public
interest. Ofthese the charge upon the Treasury N
consequence ofthe Cherokee treaty alone without adj
verting others arising out Of Indian treaties has al
ready exceeded five millions of dollars that for the
prosecution of for the removal of the Semi
mole Indians which were found in progress has been
nearly fourteen millions and the public buildings
have required the unusual Of nearly three mil
lions.
1t affords me, however, great pleasure to be able TO
say that from the Of this period to the
present day, every demand upon the Government, at
home or abroad, has been promptly met. ms mas
been done, not only without creating a. permaneh'
debt, or a resort to additional taxation in any FORM
but in the midst of steadily progressive reduction OF
existing burdens upon the people, leaving sun CON
siderable balance of available funds which VIII remain
in the Treasury at the end of the year. ne small
amount of Treasury notes. not exceeding Tour anu q
half millions of dollars, still outstanding, ana less ny
twenty three millions than the United States have IN
deposite with the States is composed OF such ohy as
are not yet due, have not been presented Tor pay
ment. They may be redeemed out of the accruing
revenue if the expenditures do not exceed the amount
within which they may, it is thought be kept without
prejudice the public interest and the revenue shall
prove TO be as large as may Justly be anticipated,
Among the reflections arising from the contempla-
ton of these circumstances one not the least gratiy
ing is the consciousness that the Government had the
resolution and ability to adhere, in every emergency,
TO the sacred obligations olaw to execute all It's CON
tracts according to the requirements OF the consu-
ton and thus To present, when most needed rally
point by which the business of the whole county
might be brought back safe and unvarylng stand
arda result vitality important as well to the interests
as to the morals Of the people There can surely now
he no difference OF opinion IN regard to the incaicuia
BILE evils that would have arisen if the Government at
that critical moment, had suffered itself to be deferred
from unfolding the only true standard OF value eitner
by the of adverse circumstances or the sio-
lence of unmercd denunciation The manner IN
which the people sustained the performance OF this
duty was highly honorable to their tortitude and pa
triotism Ii cannot fail TO stimulate their agents to adj
here, under all circumstances to the line OF duty and
to satisfy them of the safety with which a course
really right and demanded by financial Crisis, may,
in a community like ours be pursued, however appa-
rently severe its immediate operation.
The policy of the Federal Government, IN extn-
gushing rapidly possible the national debt and,
subsequently, resisting every temptation TO create
new one, deserves TO be regarded in the same ayora
BILE light. Among the many objections to national
debt the certain tendency of public securities TO con-
centrate ultimately in the Golfers of foreign sockhold-
ers, IS one which Is every day gathering strength
the future industry of their citizens, been indefinitely
morgaged to the subjects of European Governments,
to the amount of twelve MILL annually to pay the
constantly accruing interest on borrowed money-a
sum exceeding half the r'nary revenues of the whole
United States. The pretext which this relation at
tcrds to foreigners to scrutinize the management OF
our domestic affairs, if not actually to lntermedde
with them presents subject for earnest attention, not
to say of serious alarm. Fortunately, the Federal
Government, with the exception of an obligation en-
tered into in behalf Of the District of Columbia, which
must be discharged, is wholly exempt from any
such embarrassment 1t is also is believed the only
Government which, having fully and faithfully paid
all its creditors has also relieved itself entirely from
debt To maintain distinction desirable, and so
honorable to national characcI should be an oh
ec of earnest solictude Never should free people,
II 1t be possible TO avoid it, expose themselves to the
necessity of having treat of the peace the honor,
or the safety OF the Republic, with the Governments
OF foegn creditors, who, however well disposed they
may be to cultivate with us in general friendly rea-
tons, arc nevertheless, by the law OF their condi
on, made hostile to the success and pcrmanency of
political institutions like Most humilIang may
be the embarrassments consequent upon such condi
tlon Another objection, scarcely less Formidable to
the commencement of new debt, Is It's inevitable ten
dehcy to increase in magnitude and to foster national
extravaganza. lie has been unpiofablc observer
OF events, who needs at this day be admonshcd of
the difficulties which Government habitually depen-
dent on loans 10 sustain its ordinary expenditures has
TO encounter in resisting the influences constantly
ered IN favor OF additional loans by capitalists, who
enrich themselves by Government securities for
amounts much exceeding the money they actually adj
vance--a prolific source of individual aggrandzcment
IN all borrowing countries by stockholders who seek
their gains in the rise and fall of public stocks and
ny me selfish opportunities Of applicants for appto-
pnatons for works avowcdly for the accommodation of
the public, but the real objects Of which arc fire.
gncntly the advancement of private interests The
known Necessity which many Of the States will be
under 70 impose taxes for the payment Of the interest
on ther debts. furnishes additional and very cogcnt
reason why the Federal Government should refrain
from creating national debt, by which the people
Ject We posscss within ourselves ample resources
Tor every emergency and We may be quite sure that