Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1840-04-24
MIR. WEBSTER'S SPEECH,
ON THE TREASURY NOTE BILL.
In SENATE. 9Oh March 1910

the committee is absent, as he might probably have
made use of this occasion, not only to show the
necessity of raising this sum of five millions, for
the immediate use of Government, by some ex-
traordInary means, but also TO state his opinions
upon the public revenue both in regard to its pre-
sent state and its prospects for the future.
The sum and substance of the measure now be-
fore us is, to borrow five millions of dollars, for two
wears, if necessary, and TO pay therefor any rate of
interest not exceedings six per cent. This borrow
ing is to be done by means of issuing Treasury
Notes. bearing interest and so often as they shall
be received al the Treasury, they TO be reiss,cd
so that the whole sum of five millions may he kept
out. And the authority TO issue and reissue is 10
last one year. The consequence of Thu is, that
one wear from the date of the bill, the whole five
millions be not then outstanding, the balance may
be issued, redeemable in year from that time. 1t
is a power, therefore, TO make a loan, for five
millions, with authority TO continue that loan,
by borrowing to day to repay the sum borrowed
yesterday, and TO continue this process, in effect,
for two years. This is the substance ofthe bill.
Mr.. President, at the opening the session, the
President of the United States informed Congress
that the financial operations the Government for
the past year had been very successful.
The Secretary, too, in the very first paragraph
of his annual report, stated, with much satlstac-
ton, that the revenues of the Government had been
increased and the expenditures diminished.
That the resources of the country are abundant,
no one can doubt. Its wealth, its activity, It's
commerce, and its freedom from bur'ensome taxa
lion. render II able to raise, with entire facility,
revenue quite equa! TO all the Just wants and ne
cesstes of the Government. But, notwithstand-
ing these congratulations of the President and Se-
cre,ary cannot but entertain a doubt whether,
under the operations Of provisions now actually
existing, and under the expenditures which have
been made, and are making, or are in anticipation,
it Is prudent to indulge in saneuine hopes of an
Overlooking Treasury. The doubt receives coun-
tenance from the fact that the bill before Us is TO
authorize the borrowing of five millions, in the
form of Treasury notes, and under such circum-
,ances as leave no reasonable hope, as think, Of
their redemption within this year. do not oppose
the bill, bu, ! propose to say few words on the
state ofthc Treasury, and on the history of its re-
ceipts and disbursements, for the last three years.
We learn from the Secretary's annual commu-
nication that, at the commencement of this year,
there was in the Treasury no more than million
and half ofdollars available for the purposes Of
Government. | omit fractions, and use round num-
hers, for the sake of brevity. AT the same time
the Government owed, on outstanding Treasury
Notes bearing interest, two millions and three quar-
tiers, or two millions seven hundred and fifty thou
sand dollars.
This was the state Of the Treasury January l.,
1910, as near as the Secretary could estimate
certain it in December. 1t turns out, from the
paper lust read, that in fac, there was a few hun.
dred thousand dollars more in the Treasury in jan
nary than the Secretary's estimate, but from what
funds or sources does not appear and this circum-
stance does not affect the general view which
propose to take.
Let us now go hack TO January /, 1887. In
1886, there being great surplus in the Treasury,
the deposite law was passed, by which five millions
were to be reserved in the Treasury, in aid of ac-
Crlling revenues, that should be IN the Treasury
January |, 1887, TO meet future demands, and the
rest of the money divided, IN depoStes, with the
States, by four quarterly payments Or install
ments.
the Secretary was obliged 10 make his calcu-
laton little before the lst of January, and could
not say, exactly, what amount might he in the
Treasury at that time, he made a safe allowance
and it happened, in the end, think, that six mil
lions and more were retained in the Treasury in
stead Of five. AT the commencement OF 1887,
then, the Government had on hand SIX millions
and it had before it the whole accruing revenue OF
the year. Before the year was ont, that is 10 say,
in the September session, Congress suspended the
payment of the last or fourth insament, or fourth
deposite to the States. This measure retained in
the Treasury further sum OF nine millions, thus
raising the reserved aggregate up to fifteen mil
lions. Subsequently, the Treasury received from
the Pennsylvania Bank Of the United States five
millions ofdollars as part of the property, Or capt.
ta, of the United States in the former Bank. This
sweled the amount to twenty millions. So thai
since January, 1887, the Treasury has had full
twenty millions of former receipts, as well as al
revenues arising since.
Now, it is apparent that these twenty millions
have been expended, within the three years, in adj
dition 10 all the revenue which has accrued in the
meantime; with one deduction, which shall state
1t is true, that, in September, 1887, Congress s,s
pended, or postponed, the payment of certain
custom-house bonds ; but the time Of that post
ponement has long since expired, and the bond
have been paid. 1t is true, also, that the depos
banks, in 1887, held certain sums belonging Il
IL
before the commencement of this year, these debt
had been brought down to a million OF dollars
or thereabouts. The true account, then, stand
thus
Reserved under the deposte act, 100000
Amount of fourth deposite held
back from the States, 100000
Received from the Bank ofthe Uni
ted States, 100000
Borrowed on Treasury Notes, out
standing Jan. l. ls4O, 2,750OO
22,75OOC
Deduct amout in Treasury Jan. /,
1870, 1,55O,OC
100000
Deduct amount still due from depo-
site banks, 100000
Balance, $2O2OO,OO
Twenty millions two hundred thousand dollar
then, appear to have been expended in the tire
wears, betw cen Jan. 1887 and Jan. 1910. beside
all the receipts from the custom house, and Ian
offices, and all other sources.
II there be any error in this general statemen
hope that some gentleman will point il out, an
shall cheerfully make the necessary correction
My object is to be accurate as well as distinct b
il there be no error, ifths statement be true, as
suppose, then the result certainly is, that for II
last three years, the Government has expended a
most seven millions year beyond its income
and has supplied the deficiency out of funds pr
viously acquired or received. The six millions r.
served under the deposite law, the nine million
afierward withheld from the States, the five mi
lions received from the bank, all these were fun
previously acquired, and none ofthem any part
the income or revenue of 1887, 1888, or 1889. A
the income and revenue of those years have be,
expended, and these twenty millions more.
This general state of the Treasury, and the hi
tory of revenue and expenditure for the last thr