The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-02-16
PUBLIC FIN A. Noes
SPEECH oE MR.. BARNARD,
or NEW YORK,
n Tpc Hop9F or II FpRrgp Nr ATtvFs. Ian 10. 1874 i

In TnE HOUSE, OF REPRESENTATIVES,, Jan. IS, 1871.
The House being in Committee Of the Whole on
the state Of the Mon upon the bin making provision
for the issue Of five millions Of Treasury notes
Mr.. BARNARD rose, and spoke nearly as fol-
lows
Mr.. Chairman; bad occasion last year to present
my views in regard to the issuing Of Treasury notes
by this Government in the form proposed by tins Dill
I have doubt of the constitutional right Of this Go
yernment being authorized by law, to borrow money,
and 10 give for such money its bond or It's notes as
evidences of debt. have no doubt of our consttu-
ona right to authorize the Secretary Of the Treasury
10 issue promssory notes, payable at a future day,
with without interest to such ofthc public creditors
as willing 60 receive them, instead Of receiving
payment in cash At the same time, do not think
this the best mode of borrowing money, or OF paying
debts Both may be resorted 10 under the pressure OF
circumstances but neither should ever be without such
apology for t.
MY great objection to Treasury notes as proposed to
be issued by this bill which does but adopt the prov
sons Of the Treasury note of last session. is, that
under il paper may be issued designed become, and
which would become, common medium of payment
and circulation between the Government and It's debt
and creditors and, far as II would 90, common
money medium in circulation in the community Such
paper, not resting specie basis like sound con-
vertibe bank paper, but resting wholly the faith
and credit of the Government, is nothing more and
nothing less than bills of credit 1t is precisely that
description of paper 10 which all the evils and all the
odum of bills of credit attached in the earlier periods
of our history and is precisely what the Constitution
prohibits to the States and what this Government IL
self has no authority to employ These views, as
have said, were expressed fully on former occasion
At present have other and very different objec-
tons to urge to this bill, rather to the measure for
which this hill provides This is a fiscal measure
and measure Of relief As such do not agree that
it is either proper or an adequate measure II sup
poses that there is will be deficit Of means in the
Treasury TO meet the demands upon IT, in the whole
part of the year iS4l and that that deficit
may amount to five millions of dollars, but not more
II supposes also since It is not accompanied, the
act OF borrowing by the Government always should
be- by for ultimate supply and repay
mcn that, If the notes issued shall not be redeemed
the bill itself seems to anticipate its face they
will be- out of current revenues within the present
year. they will be redeemed out of current
in the year 1912, the revenue laws standing just
they now do Such, indeed in both the particulars
now referred to, is the position and argument of the
honorable Chairman of the Committee of Ways anu
Means, Mr. Jones, of Virgnia,) who has just adj
dressed us on the subject
Now, sir think that in all this, there is great and
manifest | think, in the first place, that
want, for the service of Is4l and above all
and receipts from all sources under existing laws
ten millions of dollars instead of five, including small
and necessary balance in the Treasury, such as al
WAYS should be provided for. And then, think that
neither in lS4l nor in 1912 will it be possible
deem either millions five millions, any other
amount, however small, of outstanding debt, by the
application of ordinary revenue, after the support of
Government shall have been provided for unless there
shall be material amendment Of revenue laws,
made now, or made, at any rate at no distant day.
Things remaining they are, compute actual
deficit for the service Of the present year Of at least
seven millions and half Of dollars. This supposes
that the receipts from customs may reach sixteen mill
lions; the Secretary estimates them at nineteen mil
lions But what empty account will the Treasury
exhibit in 1912 when, as the Secretary shows, five
millions OF duties go OF under the Compromise act,
and when the whole realized from customs, as he
thinks, will not exceed or eleven millions of dol
ars2 How is the Treasury, them to pay all current
expenditures, and redeem also several millions OF
debt a
of my present opposition to this measure II wants
propriey and it wants adequacy. Money ought not
to be borrowed by this Government on bills Of credit,
prepared and designed for circulation nor is there
now any such exigency would Justify a resort TO
this mode Of paying off the public creditors in promises
instead Of cash This is objection; the other is
that whether il be designed TO pay with these notes
to borrow with them, or BOTH the amount proposed
to be realized is utterly insufficient in the first place
and, then provision whatever is made for their re-
demption or for supplying to the Treasury compe
tent for the coming In the want of these
two lhings-an adequate supply, by borrowing in adj
dtion to all receipts from ordinary sources for the SER
vice oflS4l and present amendment OF the revenue
laws, with view to increase the amount receivable
for duties in 1S42ln the want and neglect of these
two things fthcy shall be neglected, viii arise, in my
opinion, an inevitable necessity for resorng to an car
Nv or an extra session of Congress, after the present
Congress shall have expired II is the solemn and
sacred duty Of the present Administration, holding the
political power in both branches Of the Legislature, 10
take that that burden shall not fall the Govern
ment and the country
But, Mr.. Chairman, in order TO understand how in
adequate this is to the real exgencies Of the
public service, it will be necessary that we should pos
sess ourselves of pretty full view of our financial
condition, and of the state and pro poets OF the Trea
sury and to this task shall now address myself
The gentleman from Virginia Mr. Jones) depre
Gates the mingling of political considerations with the
discussions this bill sir, shall not be the first TO
introduce politics into this debate Certainly il could
be part of my purpose on this occasion, to assa
the Administration, any body connected with IT, II
would be out of time and out of character TO begin
warfare, at this day, on fallen and expiring Ad-
ministration
that if the Secretary of the Treasury in his annual
report and the President in his message, following
the Secretary have fallen into gross errors Mistakes
and miscacuatons in the account they have given US
of the fiscal operations and affairs Of the country, the
earliest opportunity should be taken make the
sary corrections and set the whole matter in its true and
proper light Somuch is due to this House which must
ACT uInuuiy ,ssNi, ''si..
which has ruht to know only what we do, but the
grounds of our proceedings also. so much Is due also
to another interest bound up intimately as It must be-
for good or for evil with the interest and honor OF the
whole land and which has right to demand protoc-
ton against all fraud and imposition, # any such has
been attempted which do not charge and, at any
rate against the evil consequences oltsei oil error ana
mistake into which others may have fallen. alude,
of course, to the in coming Administration
Now, Mr.. Chairman believe that the condition oil
the country in regard to its finances, is one OF deep
embarrassment and difficulty, bordering on bankruptcy
and dshonor Government is the agent OF great es-
tate out of which it is the agents proper business 10
raise enough, year by year, TO serve both ior
its preservation and its improvement. But the estate
has not paid its away. II has been, on the whole
perhaps sufficiently productive, if good economy had