The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-07-17
$24,OO0,OO0
2,5U0,OO0
$4,000
97l,3l3
100000
$30,260,3l3
Making the total amount

For a reserve fund 100000
Making the total amount $50, 26O,3l3
The actual and estimated means were go, 1905 1896,
leaving deficiency of nine and half millions doi'
lars. = .-.
Adding TO this, ten millions Of Treasury notes
which, according to the above statement, would pro-
badly fall due this year. made the total wants OF the
Government, including the redemption OF treasury
notes, nineteen and a half millions dollars, Taxing
the two and half millions proposed by the Secretary
for fortihcations and the two millions for reserve
fund, from this deficit it would still leave fourteen
and half millions required or two and half millions
beyond the proposed loan .-.
As to the plan of the BILL it was not loan to be
executed Immediately for the twelve millions. The
language of the bill precisely like that OF the
Treasury Note bill-auhorzng the President to Dor
row not beyond that amount hen required by the
wants of Government. What would be the opera
ton Of the bil2 The Secretary had told them that
during the quarter beginning with the LIST June,
there would be deficit of five millions. The Sec
relary would Immediately contract loan of two,
three four millions, according To the wants OF the
Treasury. Was there any improperly in Vesling
such discretion with him They had given to the
President power, in one case, TO borrow millions
dollars, and call out fifty thousand for the de-
fence Of the country and he asked If It was ex-
pectng too much of honorable Senators, even on the
other SIDE 70 50 nS S ss y s 10
contract loan not beyond twelve millions, to meet
the wants of Government
Then, as TO the mode Of taking up this money Il
| could not be estimated how much was to be demaha-
ed TO meet the Treasury notes. as 1t was uncertain
when they We're to De returned. They could not
know the amount Of loan which was necessary
| to be contracted.
| As to the time Of redemption, 1t was now fixed at
eight years. with liberty to redeem them before that
time. They should not be regarded permanent
debt He believed all debts by governments or indlVi
duas to be avoided. Yet in some extreme cases. as
Of war, it might not be improper They had been IN
volved in the debt OF the revolution and OF the last
| war, and he thanked God he had ouilived them.
BOTH and seen them hquidated They made by this
| permanent debt; but it was more Temporary than
the debt occasioned by Treasury notes. hat, was
| was a debt of lour years, and this would be put
| Of three years. 1t, was not attempted to throw
this debt off 10 another Administration; but to qui-
date it, and leave debt for the next Administration,
although the present Administration had found DEBT
on coming into power. He trusted then, that taking
all these considerations into view, the measure wouo
be found of such character to commend itself
favorable reception of gentlemen on all sides OF the
| House.
Mr.. WRIGHT would cheerfully vote for SO much
of the loan was necessary to supply the wants OF
the Treasury, but was convinced that the amount
proposed was necessary.
Mr. CLAY said he ought to have supplied the Sc
nate with piece OF Information, and that was, that
the receipts from CUSTOMS during the first half year
ending the LIST of July, less than the lowest
} estimate, being s., 7O3,OOO.
Mr.. WRIGHT exceedingly relieved if this
money designed to facilitate the distribution
of the proceeds of the sales of the public lands II
he could the distinct and clear declaration that the
bill not intended to borrow money to supply de-
ciency proposed to be created by the distribution OF
the land sales, the bill would be Invested OF one OF Its
most serious objections. Without expressing his
opinion to the of the year. ne felt bound to
supply them, and for the year only He had prepared
amendment, which he was unable 10 see would be
objectionable the friends of the bill. He desired to
| hiatt ,au ahanll nj borrn ny
money to supply any distribution from the treasury.
He moved the following amendment, to be added to
the LIST section OF the bill
Propided ho,oeper, That nothing in this act con-
1 tanned, shall he construed authorize any further or
greater of loans than shall appear to the Pre-
sdent of the United States be necessary defray
current expenses fthe and to redeem
they shall become redeemable, the Treasury notes
e which have been issued, and to be issued under
the authority Of existing laws, after the application
Z. the money in the Treasury and all the accrung
venue from customs, lands and all other sources to
d this object
or the avails of any loan to be made under the au
thory granted in this act be applied to the redemp
tinn of Treasury notes oustan ding and not DUE ant
d payable according TO the terms of such notes; mo-
any portion of accrung revenue from whatever
derived be applied to any other purpose than the pay
of the current expenses of Government and thu
/, payment of the out standing Treasury due
payable when the consequence of other appropriations
u
under this act.
The design of the amendment that the money
3 should not be borrowed, except to supply deficiency
which might exist in the Treasury after the appca-
ton of the accruing revenue; and that the loan
shall not be made under this bill to take up in ad-
vance, the outstanding Treasury notes to do this,
would be bad financial operation. 1t was to make
the bill what the honorable chairman said it de-
signed to be.
Mr. CLAY said the Senator from New York
had said hat \ yuns noti nhonf
provide the means of Government beyond the pre-
sent year. They could not apportion the exact
amount of Treasury Notes, between the Latter part
of this and the first of next year The Senator
from New York knew that under the Compromise
Act, the 3lst of December next, moiety of
five millions dollars went off from duties, and the
other the last Of June Of next year, and if no
provisions made against the deficiency from
this cause he had doubt but the twelve millions
loan would be far short. If he understood the
amount of the amendment, he had objection
to it, except that clause orbidding the contraction
of any loan to take Treasury before the time
they were made payable. In cases where loan could
he contracted less rate of interest than the note
paid, it right that the Secretary have the power
to make loan, and absorb the Treasury notes He
proposed 10 the Senator to withdraw that clause.
Mr.. WRIGHT assented 10 modify it in the manner
desired nv the Senator
Mr. CALHOUN hoped the Senator would not
modify the amendment He opposed strongly the
funded debt system contendng that the Senator from
Kentucky had not been explicit in the declaration on
which his friend from New York had consented to
modify the amendment, that this loan was only to be
to an amount necessary to supply the immediate
ofthe Treasury.
Mr.. WRIGHT, as his friends could not consent
to the modification, and he himself preferred the
amendment without il, declined modifying.
Mr.. CLAY then renewed his motion to strike out
the clause prohibiting the redemption of Treasury
notes not due, Sec the clause of the amendment in
cuded in brackets
An interesting debate cnsued between Messrs
CLAY CALHOUN, and others after which,
the amendment adopted. Yeas 81 nays %.
Thus the clause Of the amendment stricken