The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-12-19
DEBATE IN THE SENATE.
IN RELATION TO THE PUBLIC FINANCES.
"WEDNESDAY, Dec. Ie, 1910.

IN RELATION TO THE PUBLIC FINANCES.
WEDNESDAY, Dec. l6, 1870
The motion submitted by Mr.. WnoHr on
Monday last, proposing to refer so much Of the
Presidents Message as relates 10 the Finances
70 the Committee on Finance, coming up for
consideration
Mr.. WEBSTER rose and addressed the Sc
nate nearly as follows
Mr.. PRESIDENT: Ii has not been without great
reluctance that have risen to offer any remarks
on the Message Of the President, especially at
this early period Of the session. have no wish
TO witness prolonged and angry and exciting
discussion on the topics il contains The Mes
sage is, mainly, devoted 10 an elaborate and
plausible defence Of the course of the existing
Administration on the finances and currency of
the country II dwells on the subjects which
have been so long discussed among us, on banks
and banking, on the excess Of commerce and
speculation, on the State debts, and the dangers
arising from them-on the sub-Treasury, as il
has been called, or the Independent Treasury
as others have denominated il. propose now
70 deal with none OF these points; so far as they
may be supposed TO affect the merits or charac,
ter Of the Administration, they have, as I'M
derstand it, been passed upon by the country !;
and have no disposition TO reargue any of them
Nor do wish to enter upon any inquiry as to
what, IN these matters, IS supposed TO have been
approved or disaFproved by the People of the
United States. IL appears, however thus far
TO be the disposition Of the nation TO change the
Administration of the Government. All | pur-
pose at this time to do is, to present some re-
marks on the subject Of the finances, speaking
on the present state of things only, without re-
curing to the past. or specializing as TO the fu
ture. Yet suppose that some proper forecast,
some disposition 10 provide for what is before
US, naturally mixes itself up in greater or less
degree with all inquiries of this sort.
In this view, | shall submit few thoughts
upon the Message of the President but deem
it necessary to preface what | shall say with
some few preliminary remarks.
And, first, will say word or two on the
question whether or not an unfounded or erro-
neous impression is communicated to the People
by that document In this point of view no
tice what the President says in the Sth page.
He there represents il as the great distinctive
prnciple--the grand difference in the characters
of our public men-that Of one class of them it
has been the constant object TO create and TO
maintain public debt, and with another, to pre-
vent and to discharge it. This consider as an
unfounded imputation on those who have con-
Quoted the Government of this country. The
President says he has "deemed this brief sum-
mary of our fiscal affairs necessary 10 the due
performance of duty specially enjoined upon
him by the Constitution" 1t will serve, also,
to illustrate more fully the principles by which
he has been guided in reference TO two contest
ed points in our public policy, which were ear
Hest in their development, and have been more
important in their consequences than any that
have arisen under our system Of government
he "alludes to national debt and National
Bank" About National Bank have nothing
at present to say but here il is officially announ-
ced TO US that il has been great contested ques-
tion in the country whether there shall or shall
not be national debt Now, submit it to the
Senate whether there has ever existed in the
country any party, at any time, which avowed
itself in favor of national debt, per Sc, as a
thing desirable? Does the history of the pas
debts contracted by the Government lay the least
foundation for any such assertion? The first
national debt we have had was the loan nego-
tated in Holland by John Adams. N one, pre-
sumo, ever doubted the policy of such loan in
the then circumstances of the country. Then
there came the debt contracted, for the pay of
the Revolutionary army, by the Continental
Congress, or rather by the country through that
Congress. Next were the debts incurred during
the war by the States for the purpose of carrying
on the war. Provisions were made for discharg-
ing these debts as the cost of our Revolution !;
can any body object TO debt like this 2 OF the
same character were the loans made by Govern
ment TO carry on the late WARMTH Great Britain.
These are the principal national debts we have
ever contracted, and cannot but think it singu-
arly unfortunate that what looks so much like
an imputation on those who authorized these
loans should come from the head Of an Admins
tration which, so far as | know, is the first that
has erer commenced a national debt IN time of
profound peace.
And now to proceed TO the actual state of the
finances.
The Message, though il does NOT call the OBJ
legations of the Government national debt, but,
on the contrary, speaks in the strongest terms
against national debt, yet admits that there are
Treasury notes outstanding, and bearing inte-
rest, TO the amount of four and half millions
and | see, connected with this, other important
and leading truths, very necessary to be consi-
dered by those who would look out beforehand
that they may provide for future revenue
OF these, the first In importance is, that the ex-
pendtures of the Government during the term of
the present Administration have greatly exceeded
its income. Ishallnotnow argue the question whe-
ther these expenditures have been reasonable or
unreasonable, necessary or unnecessary. ! am
looking at the facts in financial view purely
and ! say that our experience of the action OF
Congress during the last foui years has been,
that The public expenditure has, e.rceeded the
public income at The rate Of SEVEN MILLIONS OF
DOLLARS PER ANNUM. This is easily demon
strated
AT the commencement OF the first year of this
Presidential term, in January, 1897, there was
in the Treasury balance of six millions of dol
lars, which was reserved from distribution by
what has usually been called the Deposite Act.
The intention of Congress was to reserve five
millions only; but, in consequence of an uncer-
tainty which attended the mode of efiecting this
result the Secretary, in his calculations, wishing
to be- at least the safe side, it turned out that
the sum actually reserved was six millions.
Here, then, was this amount in the Treasury on
the first of January, 1887. Events occurred du-
ring that year which induced Congress TO modi-
~ the Depositc Act so as TO bring back again
into the Treasury the fourth nstalment of the
sum to be deposited with the States, which
amounted to nine millions find further, from