Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-12-11

thesuc with which embarrassments in regard to
| them, at times apparently insurmountabe, have
been overcome, are matters upon which the people
| and Government of the United States may well
congratulate themselves. An OVERLOOKING treasury,
however il may be regarded as an evidence OF pub
lie prosperity, seldom conducive TO the perma-
nent welfare tf any people; and experience has de-
nonstrated its incompatabity with the sa'utay ac-
ton of Political institutions like those of the United
States. Our safest reliance for financial efficiency
and independence has, on the contrary, been fonnd
To consist in ample resources unencumbered with
debts and, in this respect, the Federal Government
| oscupes singularly fortunate and truly enviable
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 tw entyeigAt millions of dsllars OF the
public moneys were in pursuance Of its provisions,
deposited with the ates in the months OF January,
April and July of that year. In May there occur
req general suspension OF specie pay ments, by the
banks, including with very few exceptions, those
IN which the public moneys were deposited, and up
on whose fidelity the Government had unfortunately
made itself dependent for the revenues which haa
been collected from the people, and were indispen
sable to the public service This suspension, and
the excuses in banking and commerce out Of which
II arose, and which were greatly aggravated by its
occurrence, made to great extent, unavailable the
principal part Of the public money then on hand !;
suspended the collection OF many millions accruing
merchants bonds; and greatly redaccd the revenue
arising from customs and the public lands. These
effects have continued to operate in various de-
grees, to the present periods and in addition to the
decrease in the revenue thus produced, two and
hall millions OF dollars have been reliaquished by
two biennial reductions under the act of 1888, and
probably as much more xpon the importation Il iron
for railroads, by special legislation.
whilst such has been our condition for the last
Tour years, in relation to revenue, have, during
the same period. been subjected to an unavoidable
continuance tf large extraordinary expenses neces-
sarily growing out Of past transactions and which
could not be Immediately arrested without great
prejudice to the public interest. OF these, the
charge upon the Treasury, in sequence of the
Cherokee treaty alone, without advertng to others
arising out of Indian treaties, has already exceeded
five millions OF dollars; that fer the Of
measures for the removal Of the Seminole Indians,
which found in progress, has been nearly four
teen millions; and ~ public buildings have requir-
ed the unusual sum OF nearly three millions,
1t affords me, however, great pleasure to be able
10 say, that, from the commencement of this period
TO the present day, every demand upon the Govern
ment, at home or abroad, has been promptly met.
This has been done not only without creating per-
manent debt. or resort to additional taxation in
any FORM but in the midst Of steadily progressive
reduction Of existing burdens upon the people leav
ing still considerable balance of available funds
which will remain in the Treasury at the end Of the
year. The small amount of Treasury notes, not ex-
cseding four and half millions Of dollars, still out
standing, and less by twenty three millions than
the United States have in deposite with the States,
is composed Of such only not yet due, or have
not been presented for payment. They may be re-
deemed out OF the accrung revenue, if the expsn-
ditures do not exceed the amount within which
they may, it is thought, be kept without prejudice
to the public interest," and the revenue shall prove
to be as large as may justly be anticipated.
Among the reflections, arising from the conte
plation OF these circumstances, one, mt the least,
gratying,is the consciousness that the Government
bad the resolution and the ability to adhere, in
ry emergency, to the sacred obligations of law to
execute all its contracts according to the require
ments Of the constitution and thus to present,
when most needed. a rallying point by which the
business of the whole country might be brought
back TO safe and unvsrying standard-a result vi
tally important well to the narests to the
rails of the people. There can surely now be no
difference of opinion in regard to the incalculable
evils that would have arisen If the Government, AZ
that critical msment, had suffered itself to be deter
red from uphodns the only true standard of value,
either by the pressure OF adverse circumstances or
the violence Of unmerited denunciation. The man
ner in which the people sustained the Performance
OF this dsty was highly honorable to their fortitude
and patriotism. II cannot fail TO stimulate their
agents to adhere, under all circumstancss to the
line Of duty; and TO satisfy them Of the safety with
which course really right, and demanded by q
financial crisis, may, in a community like ours be
pursued, however apparently severe its immediate
operation.
Ike policy of the Federal Government, in extin-
gushing rapidly possible the national debt and
subsequently,, in resisting every temptation to ere
ate new one, deserves to be regarded in the same
favorable light Among the many objections TO a
national debt, the certain tendency Of public secur
ties 10 concentrate ultimately in the Golfers OF To-
reign stockholders, is one which is every day ga
therpg strength Already have the resources OF many
OF the States and the future industry OF their cii
zens, been indefinitely morigaged to the subjects Of
| European Governments, to the amount Of twelve
millions annually, to pay the constantly ,ecrping
| interest OF borrowed money sum exceeding half
| the ordinary revenues OF the whole United States.
The pretcxt which this relation affords foreign.
ers TO scrutinize the management Of our domestic
affairs, II not actually TO intermeddle with them,
presents subject for earnest attention, not to say
fscri1us alarm. Fortunately, the Federal Govern.
ment, with the exception OF an obligation catered
| into in behalf of the District OF Columbia, which
| mn oop hp lgeh fupH ia Wh n liz from
any such embarrassment 1t is Also as is believed,
the only Government which having fully and faith.
fully paid all its creditors, has also relieved itself
entirely from dsbt. To maintain a distinction so
desirable and so honorable to our national charac-
| ter, should be object Of earnest socude. Never
should afrec people, II be possible to avoid it,
pose themselves TO the necessity Of having to tire
Of the peace, the honor the safety Of the Repus.
lie, with the Governments OF foreign creditors who
however well disposed they may be TO cultivate
with in general friendly relations, are neyerthe-
less by the law Of their condition, made hostile
10 the success and permanency OF political institu-
tions1ike ours. Most humiliating may be- the en-
| barressments consequent upon such condition
Another objection, scarcely less formidable, to the
CONNER cement Of q new debt, is its inevitable ten
dency to increase in magnitude, and TO foster ma
| tisnal extravaganza. He has been n Improbable
observer Of events who needs at this day TO be ad
monished Of the difficulties which Government,
habtsally dependant on loans to sustain its ordinary
expenditures has to encounter in resisting the nflu-
snees constantly exsrted in favor Of additional loans
by capitalists, who enrich themselves by Govern.
ment securities for amounts much exceeding the
| money they actually advance prolific source Of
| individual sggrandizement in all borrowing eoun.
tries; by stockholders, who seek their gain by the
rise and fall Of public stocks, and by the selfish inn
| poriunites Of applicants for appropriations for
| works avowedly for the accommodation Of the pub
ic but the real objects ofwhich are, too frequently
| the advancement OF private interests. The known
| necessity which many Of the States will be I'M
der impose taxes for the payment Of the interest
on taeir debts, furnishes. an additional and very
gent reason why the Federal Government should re-
frain from creating a national debt, by which the
| people would be exposed TO double taxation fer a
| similar object We possess within ourselves ample
| resources for every emergency; and we may be
quite sure that our citizens, in future exigency,