The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1840-12-15
CONGRESSIONAL.
REPORT ON THE FINANCES.
REPORT FROM THE SECRETARY OF THE
TREASURY ON THE STATE OF THE
FINANCES.
(Coneiuded.)

The revenue from lands must continue TO be lower
under the present laws than might otherwise be ex-
peced because that portion of the sales in 1885
and 1886 which were made TO spectators, must for
years longer into the market in competition
with the Government and the emigration TO Texas,
as well as the continuance of the suspension Of specie
payments by the banks over much Of the West and
Southwest, is likely operate ihjuriously somewhat
longer, though probably with force much dimin-
ished.
In respect to the estimates for expenditures il need
only be observed here, that any considerable addition
made by Congress to the new appropriations called
for, would require provision of further TO meet
them. corresponding in amount; and any diminution
in those appropriations would also reduce, in similar
manner, the amount of means otherwise necessary.
VII 1t proper to advert next to the best mode Of
avoiding any inequality between the anticipated
ceipts and expenditures, either in lS4l or 1912
II has already been shown that the whole amount Of
receipts in 84 will probably be sufficient to discharge
all ordinary expenditures, and those parts of the out
standing debt funded unfunded, which may become
due But the preservation of suitable balance in the
Treasury may require more than what will probably be
left after satisfying other purposes. The raising of
any for that object in 164l could however be OBJ
waited by authorizing contract to be made, under
proper restrictions, extending the period Of payment
for portion of the temporary liabilities falling due IN
that year. Yet in the opinion of the undersigned the
hest mode Of providing for this would be- without
either extension of this kind, oan further
issue of Treasury notes, change in the tariff; but
merely by essening the appropriations for the service
ratory clauses to the present tariff and such acts as
the public lands, have heretofore been urged on
the consideration of Congress
The arguments in favor of some further dimnution
in expenditures, and the general items in which
the reduction is considered most compatible with the
public interests fully exhibited in the last two
annual reports to render repetition of them unne-
cessary.
II was then believed that the laws could be altered
80 as to admit of safely curang the appropriations at
once such extent that the expenditures need not
exceed, in the aggregate, seventeen or eighteen mil
lions yearly After of the pensions terminate, and
the removal of the Indians is completed they could De
benefically contracted less than that amount
Such q reduction is first advered to seems, there
FORE proper be adopted now since could be effected
without the probability of injury to any useful nation
al establishment would promote public rugallty, and
supersede the necessity either OF higher tars direct
taxes, permanent debts.
If that be not DONE the secondary measures before
suggested such declaratory act to enforce the
present tariff suitable modification of the drawbacks
and bounties; and the passage Of bills graduating the
price of public lands, well as creating some new
districts for the sale of Them would be likely if ia
king effect early, to yield suitable supply in the
course of the year.
either of these arrangements, enough might be OBJ
tanned within the whole of l641 for the objects con-
templated, yet not due orsucient proportion IN the
first quarter because by that time all the measures
not lkelv to go into full operation nor much OF
the anticipated to happen in the actual re-
ceipts Of duties under existing laws. Unusually
heavy expenses will also fall that quarter in the
next year In addition to full portion OF most OF
the current expenses, and the whole pension pay
ments for the first half of the year. and onethird OF
million or more for all the annual fishing bounties,
there will be imposed it most Of the charges Tor the
wholeyear connected with the session OF Congress
and private bills, well large payments for taking
the census and for the first nstament of the debt OF
this Districts several Of them early even as the first
day Of January.
From these circumstances, and the considerations
that all which is due from the banks may not be then
paid and that the balance in the Treasury under the
policy adopted by Congress of late years. will OF ne
cessty be small while the fluctuations and inequali-
ties are very great between the receipts and expendi
lures in different portions of the year. which we are
constantly exposed from causes that have on former
been explained at length, must be obvious
that entire safety requires conditional power to ne
seasonaby conferred the Executveto obtain AT any
time thin 164l such subsidiary means as may be need
ed for few months and as may be sufficient to enable
the Treasury punctualy discharge during that year.
all the liabilities imposed by Congress.
There is another contingency under the existing
laws duties which requires attention, with view
10 be properly prepared for it; though legislation con
corning the subject is not necessary so early as IN the
other case because the event which depends can
not actually happen till the year 1912
Thus the progressive reduction of the present tari,
which has been going since 1883, WILL after DO
cember ls4l take effect to much larger extent man
heretofore. Nearly two millions and half OF dollars
will then be deducted at once.
On the lst of January afterwards at least two mil
lions and half more of duties will be removed max
ing an aggregate in six months, of quite five millions
IL the imports then should not differ much from those
in 1888, this would leave an income from them, not
probably exceeding ten eleven millions OF dollars
YEARLY Il will therefore be necessary to make cor
responding reductions in the expenditures of 1872 OF
seasonabIy provide otherwise, in some permanent
manner 10 supply any wants likely to happen from
this cause
cl,,Ia hate rpIn m
the expenditures cannot properly be made, and that
the imports for 1912 will not increase beyond those
in 1888, the amount of the deficiency would IN those
events probably differ but little from hve miliIons-
Such deficiency would, under these circumstances,
be likely become permanent and may be CONSIDERED
the first Of that character which will occur under inc
tariff act of 1888
The idea that such deficiency in time opcace, ought
be supplied by issues of Treasury notes or by loan
has never been entertained by the undersigned Nor
can il be countenanced by any sound principles either
Of finance or political economy. The inquiry tnsn re-
ours what other mode would be more eligible W men
we possessed extraordinary surplus u was cons'-
dered prudent by Congress 10 make deposi'os with tne
States with view to be returned in an exigency ra-
Their than to invest portion OF saiey anu prouu.
lively so as 20 be realized in such an event WOMB
therefore be consistent with that arrangementto recall
in 1912, such part of the surplus as may DC 'h'"
needed.
That course, however, appears not very hkeiy 70
he adop,ed since the former power gwen TO TINS DC
patmen, to recall these dcposes has been taken away
| by Congress, \;
Another practicable mode would be 70 fefoi' 20 ~
rect taxes But this is unsuted to the general ha-
bits and so uncongenia to the opinions Of most Of our
population that its adoption is not TO be anticipated
Some other permanent resource must then be looked
to- The choice will probably rest between the large
reduction Of expenditures, with other accompanying
measures before specified and some extensive modh-
cation Of the present tariff Explanations have here
toiore been given by the undersigned in favor OF the
former course and it would probably prove sufficient
to the emergency, IL the reduction be pushea W
corously and especially IL the imports after 1871
shall exceed those in 1888 which is regarded as pro-
babe.