The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-07-17
$50 G0.sl3
Making the total amount


Adding to this, ten millions of Treasury notes
which according to the above statement would pro-
paby ial due this year made the total wants o the
Cos rrnment, including the redemption OF lIeasuy
noes nineteen and halt millions dollars. aking
the Two and halt millions proposed by The Secretary
i1r ionhcatlons, and the teo millions Tor reserve
fund, from this deficit, it would stl leave fourteen
and half millions required, two and half millions
beyond the proposed luan.
As 10 the plan of the bill, it was not loan to be
executed immediately for the twelve millions The
language OF the hlIl was precisely like that Of tho
Treasury Note bill-autherlzng the Precedent 10 bor-
not beyond that amount hen required by the
wants of q we nmcnt. What would be the opera
lion Of the bill The Secretary had tod th IN that
during the quarter beginning with the lat June,
tuere would DE deficit Of five millions The SIC
rotary would Immediately contract a loan OF t"oi
three, four Millions according Ia the wants 81 The
Treasury, Was there any Improperly IN ,esing
such discretion with himl They had given 10 The
President power, in one case, 10 borrow ten millions
dollars, and call out fifty thousand men for the de-
fence Of the country and he asked If II eX-
pecng too much of honorable Senators, even on the
other side, to repose much confidence in the Ad-
| mns,raon as 10 pass a bill vestng the power 10
contract loan not beyond twelve millions, TO meet
! the wants of Government
| Then, TO the mode of taking up this money II
could not be estimated how much was To be demand
ed TO meet the Treasury notes, II was uncertain
when they were to oe returned They could not
know the exact amount of loan which necessary
! 10 be contracted.
! As 10 the time of redemption 1t now fixed at
eight years with liberty TO redeem them before that
tIne. They should not be regarded as a permanent
debt He believed all debts by governments indivi-
duals 10 be avoided. Yet in some extreme cases, as
of war, 1t might not be improper They had been in
,ovcd IN the debt OF the revolution, and OF the last
war and he thanked God he had ouihved them
| both, and seen then liquldatd. They made by TINS
4 no permanent debt; but II was more TENT orary than
J the debt occasoned by Treasury notes. That was
was a debt OF Jour years, and this would be but
OF three years, 1t was not attempted to throw
this debt oil TO another Administration but TO liqul-
date It, and leave no 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 would
be found OF such character a 10 commend itself tothe
favorable reception OF gentlemen all sides OF the
House.
i Mr.. WRIGHT would chcerfully vote for much
of the loan as was necessary u supply the wants OF
the Treasury but was convincel that tie amount
1 proposed was necessary
Mr.. CLAY said he ought to have supplied he Sc
nate with a piece OF information and that was, that
the receipts from customs during the first half year
ending on the LIST of July, was less than the lowest
estimate being 10, 1O3 600
1 Mr. WRIGHT was exceedingly relieved, If this
money . designed 10 facilitate the distribution
of the proceeds OF the sales OF the public lands II
he could see the distinct and clear declaration that the
bill was not intended 10 borrow money TO supply de-
fcency proposed 10 be created BY the distribution Of
the land sales the bill would be Invested OF Of is
most serious objections Without expressing his
opinion to the of the year, ne iet hound 10
supply them, and for the year only. lie had pared
an amendment which he was unable to see would be
Objectionable 10 the friends of the bill lie desiredto
render 1t certain, that they should not borrow any
money to supply any stributon from the Treasury.
He moved the following amendment, to lie added TO
the LIST section of The bli
Prorided hofcerer, That nothing in this act
tanned shall be construed authorize any further or
greater unit of loans than shall appear to the Pre-
sldent OF the United States be necessary IT, deiray
the current expenses of the Government and To redeem,
as they shall become redeemabe, the Treasury notes
which have been issued; and TO be issued under
the authority of existing laws, after the application OF
the money in the Treasury, and all the accru ny re-
venue from customs lands, and all other sources TO
! this object.
Nor shall any portion of such money. or revenue,
or the avas of any loan to be made under the
horty granted in this act be applied 10 The redernp.
lon OF Treasury notes outstanding and not due, and
payable, according 10 the terms of such notes nor
portion of accruing revenue from whatever source
derived he applied any other purpose than the pay
ment of the current expenses of Government, and the
ayncnt OF the out standing Treasury notes due and
payable when the OF other appropriations
might be an increase Of public debt To be contracted
under this act
The design of the amendment was that the money
should not be borrowed, except to supply deficiency
which might in the Treasury alter the appica-
ZION of the now accruing revenue and that the loan
shall not be made under this bill to take up in adj
vance, the outstanding Treasury notes; as to do this,
would he bad financial operation. II to make
the bill what the honorable chairman said 1t was de-
signed 10 be
Mr. CLAY said The Senator from New York
had said that it was not incumbent on Congress to
provide the means Of Government beyond the pre-
sent year. They could not apportion the exact
amount of Treasury Notes, between the Litter part
of this and the first of next year. The Senator
from New York knew tina, unier the Compromise
Act, on the 3lst of December next, one moley of
five millions dollars went off from duties, and tho
other the last of June Of next year. and It
provisions made against the deficiency from
this cause be had doubt but the twelve millions
loan would be far short If he understood the
amount OF the amendment, he had no objection
To- IT, except that clause forblddlng the contraction
of any loan take up Treasury notes before the time
they were made payable. In where loan could
he contracted less rate OF interest than the note
paid right that the Secretary have the power,
TO make a loan, and absorb the Treasury notes. He
proposed 10 the Senator 10 withdraw that clause
Mr. WRIGHT assented to modify ii In the manner
desired by the Senator
Mr. CALHOUN hoped the Senator would
modify the amendment He opposed strongly tho
funded IL BIT 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 only 10 DO
to amount necessary to supply the immediate wants
ofthe Treasury.
Mr. WRIGHT, as his friends could not consent
to the modification, and he himself preferred the
amendment without II, declined modifying
Mr. CLAY then renewed hIs motion 10 strike out
the clause prohibiting the redemption of Treasury
not due. See the clause of the amendment in
cuded IN brackets
An interesting debate ensued between Messrs.
CLAY CALHOUN and others after which,
the amendment adopted. Yeas 81, nays %.
Thus the clause of the amendment was stricken
out
The question being on the amendment, ms amendcd,
after debate by Messis CLAY, Of Kentucky,
WRIGHT, HUNTINGTON SEWER, PRES