The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-12-15

enabled the Treasury to meet the current expenditures
of the Government well the extraordinary ones
by Indian wars treaties, and other cosby measures
and without imposing any new taxes, or higher tani
and without any new funded debt whatever, out ca
tinguishing considerable remains OF inc olu pne
paving the interest that assumed Tor TINS Dis'o
To saye the unpreccdented surplus OF more han TWEEN
ty-erht millions of dollars and deposite the same WIN
the States for safe keeping I'LL needed by the uenefa
| Government. !. -. n.,l
The only permanent aid in eiiecting this beyond
The reeepts from ordinary sources has been the deo
due from the United States Bank, Of about eight mi
lions and the Treasury notes now outstanding equa
10 nearly four and half millions But dunng ina,
perod sum far from the amount has been appusu
10 the discharge of the principal and interest OF Tue
old funded debt; that, towards the payment OF al
other expenses only between Tour ana hNe miihons
| beyond what temporary, and what mas areauy
been refunded or adjusted, have been recevai rom
| any extraneous source whatever
II follows therefore that the current revenue not
whs,andinc all reductions, has been adequate 10 de-
FRAY both the ordinary and extraordinary demands,
and after taking from what Is deposited win tue
States sufficient to exiinguish every KING OF 'hoeu'
edness created account of the General government
during the period TO leave on hand inc large pa
lance Of nearly twenty-f -four millions
II Is true that the available in the Treasury at
the and close OF the period IN question:
will probably prove different in the amount but II
made equal surplus would still be left which is like
" 10 exceed seventeen eighteen millions OF dollars
Beside this recorded evidence of the prosperity OF
the country and the fiscal ability OF the General Gov
eminent in those years 1t rs gratifying, amidst many
concerning the subject TO reflect on
another circumstance connected with our hnanciai
operations which has also become matter OF history
II is this Though destitute of the aid OF U nned
States Bank as fiscal agent during that period, and
batfied by various unremcdied impertections IN the
laws connected with the finances, as well as embar
rassed by suspensions of specie by many
of the State handsome still continuing yet the
Treasury has been able make its collections trans
| G.. al with md most
with specie or IFS equivalent
So no correct Judgment can be formed ef the extent
and difficulty of these operations when 1t is recolect
ed that the WI ole sums which have thus been collected
without dcducting fractions, added to those sums
which have been paid chiefly by another class OF
officers have exceeded the extraordinary aggregate OF
$500 900 600 and boon dispersed over territory of
nearly million square miles in extent II rs more
over asceaned that the whole losses within the same
time by defaults, large and small, and in all kinds of
Offices will probably not equal half of one per cent on
that amount and however official delinqnences may
in cases, have inevitably been aggravated by the
unprecedented speculaons of the times and by great
reyulsions and failures among hanks and individuals
these losses will not be oneouth so large, IN proper
ton to the collected and paid. as in some pre-
vious terms when the system under the United States
Bank was in full operation.
A few words may be proper as TO the expenditures
during the period Though they were of necessi-
~ augmented BY of the circumstances before
mentioned, two Indian treaties only, out of large
number, having already involved us IN the expense OF
nearly three millions of dollars yet the aggre-
gate Of all has been much reduced since the influ-
ences of those causes and the impulses of
flowing Treasury have diminished The cxpendi-
lures have fallen yearly since 1897, till they now
only twenty two and half millions independent of
any debt and trusts and supposed to be in progress
to a still lower amount.
The undersigned has earnestly urged rapid
reduction He has considered the great safeguard
against splendid central government, which would
10 ipIa
dence and attract the ambition of most of the friends
Of State Rights from humber paths of frugalty and
principle into the dazzling vortex Of higher patronage,
honors, and emolumcns. While the stimuants to
shall continue to lessen, nothing will be neccs
sary to insure the further of econ mical
policy but perseverance in retrcnchments, wherever
they practicable without injury TO the public int
rests The removals of Indians being mostly finished,
and the chief causes of frontier extnguished
less objects of expenditure be selected great
enlargement given to some already existing the whole
amount must of necessity contract hereafter very
pidly. The same result will be further promoted by
the deaths Of pensioners increasing through advanced
age, and the completion of many public works, well
by perssting in firm policy to avoid the wasteful
expense of unnecessary foreign collisions and to
rain from those lavish expenditures for certain domes
tic Objects which this jurisdiction Of the General
Government is ofton questionable, and which always
open the widest door TO extravaganza favortsm, and
corruption.
One efthe greatest evils the public service as well
to the security of private business, during part of
the above period has consisted in the fluctuations to
which both have been subjected.
With only single year intervening and without
any material change in the tanh' any whatever in
the price of the public lands have the
flom ordinary sources suddenly vary from nearly
fifty millions annually to eighteen; and, on two occa
sons since yibrate to the extraordinary extent of
ly eight and eleven millions yearly.
The transactions of individuals upon which our re-
venue depends, must, of course, have undergone an
unusual change at the same time.
The imports fell within two years, in the case first
referred to- from hundicd and ninety millions
to hundred and fourteen; and in the single year
Just passed. fell almost sixty millions. Such infla
tons and contIactions must be destructive of all
confidence in calculations for the future, while the
causes of them shall continue to operate unremedied.
What were those causes2
They will be found to have been chiefly connected
with the abuses of banking. On the occasion first
referred to- they the supcrabundance of fcti-
tious medium of circulation, with the attendant over
trading and speculatons in 1885, and the consequent
suspensions of specie payments in 1897 as well as the
disasters and scarcity of any medium till the latter part
of A. D. 1893. Then another expansion commenced,
extending into 1899, and accompanied by another in
crease in imports of nearly fifty millions which ended
again in the conTactons by banks, suspensions and
commercial reverses which have suddenly reduced the
imports of $40 than one-third, and in many
places augmented seriously the cmbarrssments be-
fore existing from similar vaciatons in the paper
rency.
How far some imprudcnces abroad at the same
time similar to these, though in country enjoying
any advantages which result from National
! Bank may have augmented the evils here, by means
OF the intimate moneycd relations between us, need
not now be discussed though probably their influence
was large and unfavo.able.
The causes first named were likewise in full ope-
ration here in 1916 and 1917, and were succeeded by
many of the same deplorablc consequences in 1915
and 1920 One followed the other inevitably as the
ebb Of the tide succeeds its flood
The great principles of trade never be long VIC
lated with impunity and any fictitious or unnatural
excess of credit ends in revusions the essence
oflegitimate commerce consists in exchange of va