The Madisonian., 1840-01-04

i
any thing short OF specie, or the notes not only OF
specie paying banks, but such convertible into
specie on the spot, and al par can never eiecually
project ihe public credit The practical importance
oi inns question under present system will be the
more obvious when il is understood that near TWEEN.
~ millions OF the twenty five expended this year, for
ordinary purposes, have been, or will be paid BY
drafts drawn directly on collectors and receivers
ana must therefore be met, not only by them, but in
specie or its equivalent. II seems impossible also
that eventual embarrassment and occasional losses
by bank failures and suspensions should be obyialed
II any Thing but specie is long kept hand by pub
nc agents OF any description. Nor can any system
operate as check on over issues by banks restrain
tho tendency 10 gambling speculationS, and aid gra
dualiy IN improving The currency Of The country
well as preserve in purity the true constitutional
Standard oi value, unless the notes received are
speedily paid over Tor public debts, when acceptable
10 creditors, and, al brief intervals any OF them left
on hand are returned for specie 10 the institutions
that issued them.
IL appears that The effect which such a course would
produce ~ the currency large by permanently with,
drawing specie either from banks from circulation,
would IN ordinary times be much less than many per-
sons have apprehcnded In the collection and pay
nent OF the above twenty millions by collectors and
cevcrs, the whole amount on hand wih all Of them,
al any one time, has seldom exceeded one million aud
half
Al New York city, where nearly two thirds of the
customs OF the whole Union collected, and where
the gross receipts this year Will exceed fifteen millions
OF dollars the amount hand al any time has not
averaged hslf million of dollars.
As an illustration of the system Of drawing for this
money speedily il may be added that the amount left
at the close Of each week, subject drafts has seldom
equulled one-taenteth of million.
Al the recent suspension OF the specie payments,
most OF the funds IN the custom houses composed
Of bank notes but nearly half Of those in the land Of
hces consisted Of specie Though the notes on hand
were issued by banks paying specie, and IN good credit
at the time they were taken, part OF them,
suddenly becoming nedeemabe, has caused some in
convenience. several protests and few injurious de-
lays, with both receivers and collectors At the former
suspension as specie the only currency then al
lowed TO be taken by receivers most OF these difficult
tlcs were obyiaed with them, aud confined chiefly
to the depose banks, and large collectors The great
amount of specie which the receivers then possessed
contributed much, also, to the general relief OF the
Treasury, and especially furnished most opporune
means for making legal, well satisfactory payments
OF the heavy Indian annues, soon afterwards falling
due IN the West.
Some considerations intended to be next pre-
sented on the permanent deficiency apprehendsd 40
likely to happen IN the revenue after S4l under the
operation OF the present tariff But the length to which
this communication has already extended and the doubt
whether Congress may deem advisable TO egsate
long beforehand IN anticipation Of event which
siby, but not probably may be avoided have induced
the Department 10 postpone for the present any par
cular remarks on topic involving considerations oi so
difficult aud agltalng character @..E
Miscellaneous.
Some OF the leading changes which this Department.
during the last five years. has thought proper urge
material in connection with the finances may, before
closing, be summary aud perhaps useuly condensed
and presented together TO the consideration Of Con-
grcss.
A new organization Of the Treasury Department in
such respects to appropriate division
Of Labor src,er accountability aud closer super
vision the collection Of the revenue by officers
| clusively devoted to it,
A af che and tlp-'
faults in all ofcers whether collecting keeping. dis
bursng public money, and more especially by prohibit
ing its for private purposes under severe penalties
/ Some provident fund, to be formed when any occar
siona and accidental surplus happens to be in the fea
sury (but never deslgnedy raising one by sxation)
which shall be employed TO meet contingencies and
fluctuations instead OF our being compelled frequently
TO to loans Increased taxes and, the alb
sencc Of such fund, permanent authority .obe given
for the procurement Of means when needed, under
expected deficiencies.
A reduction IN the ordinary expenditures so as for
several years not to exceed seventeen eighteen NIL
lions Of dollars annually unless, when the revenue is
abundant the great national works which 1t is intended
to complete any event should be FASTENED more, and
when the is smaller be proportonably retarded
The passage OF occasional pre- empon and gradua-
ton laws TO the public lands under udlclous llm
tatons concerning. the quantity sold in any case
and for the prevention of frauds and partlalities
To reduce the tariff whenever the amount Of revenue
luslihes the measure and always regulate its prov
sons with paramount regard to finance dlscourdgmg
articles OF luxury, and encouraging useful and neces
sary only incidental objects tariff legislation
In connection with this policy OF protecting freedom
of trade, to resist monopoes and exclusive privileges,
whether in banking commerce.
The exclusion Of small bank notes from circulation,
so as to enlarge the quantity of specie within the
country; increase the Of it, aud especially Of gold
for common purposes and thus protect well the
banks against runs pancs, as the laborng classes
from losses and deprecatlons incident TO every paper
currency like ours, founded specie basis
broad the paper itself And finally the rapid exn-
guishment OF any national debt, and the OF
| new OF a permanent description In peace.
/ prominent feature IN the policy which has thus been
recommended to fiscal stialrs has been to leave
TO State legislation all matters OF doubtful jurisdiction,
as well as clearly of domestic and State character,
whether connected with tho revenue or the currency,
the exchanges and commerce, some other exciting
interests Of the country less n,erningled with the
mediate business OF this Department The undersigned
takes pleasure IN acknowledging that several OF those
enumerated measures did not originate with hun; yet
they have all received his official support and
he grahed that steps have been taken by Congress-,
insurng, IN part the success OF some OF them.
The rest well as those, agaurespectiuly COM
mended TO favorable consideration, hoping that the
tiny Of longer discussion aud reflection may have salts
fled its members that the full adoption of them all
would promote the durable prosperity of the finance,
and at the same time be IN harmony with the Constr
tuition, aud favorable 10 Of the great interests OF
! the country
In respect TO several remaining matters connected
with the finances and the duties dcvoyed on this De-
parment, 1t sproposed to postpone the consideration Of
most OF them to special reports TO Congress- and sepa
rate communications to suitable committees.
Among the latter is mass OF questions, chiefly con-
neced with tho public lands and the custom house es-
adjustment Among the former the state Of light
houses, the progress in the interesting survey Of the
coast; the manufacture OF weights and measures the
condition OF the Mnt and ITS branches; the situation
OF our trade with the British Provinces and West In
dies the disposition made Of our deposltes with the
several States; aud other subjects OF minor i'm
nnIlA