The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-12-15

mode Of avoiding any inequality between the
anticipated receipts and expenditures, either ii
| 1S4l or 1912.
1t has already been shewn that the whole
amount of receipts in 1S41 Will probably be suf-
fcient to discharge all ordinary expenditures
and those parts Of the outstanding debt, funded
or unfunded, which may become due But the
preservation of suitable balance in the Treas
| ury may require mere than will probably be LEFT
after satisfying other purposes. The raising ofany
sum for that object in 1S41, could, however, be
o5viated by authorising contract to be made
under proper restrictions, extending the period
of payment for portion of the temporary LA
bilities falling due in that year. Yet, in the
opinion of the undersigned, the best mode Of
providing for this case would be, without either
an extension of this kind, or loan, or further
issue of Treasury notes, or change in the tar
| if; but merely by lessening the appropriations
for the service Of 1S4I below the estimates, or
passing such declaratory clauses, as to the pres
ent tariff, and such acts as to the public lands,
as have heretofore been urged on the considera-
ton of Congress.
The arguments in favor of some further dimI-
mutton in expenditures, and the general iteras
in which the reduction is considered most com
patible with the public interests, were SO fully
exhibited in the last two annual reports as to
render a repetition of them unnecessary.
1t was then believed that the laws could be
altered so as to admit of safely curtaling the ap
preparations at once, to such extent, that the
expenditures need not exceed, in the aggregate,
seventeen or eighteen millions yearly. After
more Of the pensions terminate, and the removal
of the Indians is completed, they could be con-
tracted to even less than that amount. Such
reduction as is first adverted to seems therefore,
proper to be adopted now, since it could be ei-
fected without the probability of injury to any
I1safp1 national astah iis hmantz would
public frugality, and supersede the necessity
either of higher tariffs, direct taxes, or perma-
nent debts.
Ifthat be not done, the secondary measures
before suggested, snch as declaratory act to en-
force the present tariff, suitable modification
of the drawbacks and bounties; and the passage
OF bills graduating the price of public lands, as
well as creating some new districts for the sale
ofthem, would be likely, if taking effect early,
to yield suitable supply in the course of the
year.
1t will be observed, however, that though,
under either of these arrangements, enough might
be obtained within the whole of 1S41 for the
objects contemplated, yet not due or sufficient
proportion in the first quarter; because by that
time all the measures are not likely to go into
full operation, nor much of the anticipated in
crease to happen in the actual receipts of duties
under existing laws. Unusually heavy expen-
ScS Will also ldll OH that quarter III Tile next
year. In addition to full portion of most of the
current expenses, and the whole pension pay
ments for the first half of the year, and one-third
of million, more, for all the annual fishing
beunties, there will be imposed on it most of the
charges for the whole year, connected with the
session OF Congress and private bills, as well as
large payments fer taking the census, and for
the first nstalment of the debt of this District
several of them as early even as the first day OF
January.
From these circumstances, and the considera-
tons that all which is due from the banks may |
not be then paid, and that the balance in the |
Treasury, under the policy adopted by Congress |
Of late years, will eli necessity be small, while |
the fluctuations and inequalities are very great |
between the receipts and expenditures in differ
ent portions of the year, to which we are con-
stantly exposed from causes that have ON for
mer occasions been explained at length, it must
be obvious that entire safety requires a condi-
tional power to be seasonably conferred on the
Executive to obtain at any time within 1S41
such subsidiary means as may be needed for a
few months, and as may be sufficient to enable
the Treasury punctually TO discharge, during
hat year, all the liabilities imposed by Con-
gress.
There is another contingency under the exist
ng laws, as to duties, which requires attention,
With view to be properly prepared for it;
hough legislation concerning the subject is not
early as in the other case, because
he event on which it depends cannot actually
Happen till the year 1912.
Thus the progressive reduction of the present
arif, which has been going on since 1888, will,
Ifter December, 1S4l, take effect to a much lar
,er extent than heretofore. Nearly two millions
md half of dollars will then be deducted at
nee.
On the 1st of July afterwards, at least two
Millions and half more of duties will be re-
moved; making an aggregate, in six months, of
uite five millions. Ii the imports then should
lot differ much from those in 1888, this would
cave an income from them, not probably ex-
eeding ten or eleven millions of dollars yearly.
{ will therefore be necessary to make cores
onding reductions in the expenditures of 1912,
II seasonably provide otherwise in some per1na-
ent manner, to supply any wants likely to hap
en- from this cause
Should Congress conclude that such reduction
n the expenditures cannot properly be made, and
hat the imports for 1912 will not increase be.
ond those in 1888, the amount of the deficien
would, in those events, probably differ but lit
lie from five millions. Such deficiency would,
nder these circumstances, be likely to become
and may be considered the first OF
hat character which will occur under the tariff
ct Of 1888.
The idea that such deficiency in time of peace
ught to be supplied by issues of Treasury notes,
r by loan, has never been entertained by the
Nor can it be countenanced by any
ound principles either of finance or political e.
onomy. The inquiry then recurs, what other
lode would be more eligible When we pos
essed an extraordinary surplus, it was consid-
red prudent by Congress to make deposit.s
With the States, with view to be returned in
n exigency, rather than to invest portion of 1t
afely and productivity, so as to be realized in
UGH an event 1t would therefore be consistent
With that arrangement to recall, in 1912, such
art of the surplus as may be then needed.
That Course, however, appears not very like
y to be adopted, since the forIaer power given
o this Department to recall these deposites has
cen taken away by Congress.
Another practicable mode would be TO resort
o direct taxes. But this is so unsuited to the
,eneral habits, and so uncongenlal to the opin-
ons of most Of our populations, that its adoption
5 not to be anticiDaf ed Some other Darn, nent