The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-06-05

Of the Register Of the Treasury do not sIways show
!he true dates Of the receipts and expenditures An
Item involved in the above statement liable d. will
serve to illustrate this fact The sum Of $5l2 l36 AZ
was ON the I'd and 3lst Of October I8O paid by the
Bank Of the United States on its last bond, to VIM
Armstrong superintendent at Fort Gibson, by order
OF the Secretary of War. Though this sum was, in
aci received and expended on those days, it did not
hnd its way into the Office Of the Register until the
4th Of March, is4l, on which day appears on his
books both a receipt and an expenditure.
Thus, and 10 this extent, within the last four years
were the expenditures pushed beyond the amount OF
IN the Treasury and the outstanding debt due to the
United States; that the Treasury was on the 4lh
Of March, l64l, exhausted Of its MEANS and subject
% heavy and immediate liabilities. 1t was already
burdened with q debt incurred in time Of peace, and
without any adequate except the authority
granted by law to augment that debt
Asyet no provision has been made to reduce this
debt or 70 check Its constant and rapid increase. We
find IT, therefore, far past legislation and financial
arrangements characterize it, permanent and ncreas-
ing national debt The temporary expedents by
which il has been sustained do not at all vary its es-
sential character
The attention of Congress is respectfully invited to
the necessity of early and efectua pre-
vent its further augmentation. The obvious remedy
Is, TO increase the revenue far may be- without
unreasonably burdening commerce. and to reduce the
expenditures within the limits Of strict economy.
But as il may not comport with the views Of Con-
adjustment
toms SO long before the act Of March 3D. 1888
to have its final and permanent operation the under
signed would respectfully recommend, as temporary
measure the levy Of duty Of % per ad vaIorem
on all articles which are now free Of duty or, which
pay less duty than 20 per cent, except gold and sill
YER and the articles specifically enumerated in the 9Th
section of the act of March 2d, 1888.
If this be adopted IL is estimated that there
will be received into the Treasury from customs in
the last quarter Of the present year. about 90 800 600
In all of the year 1912 about 1922 500 000 and the
year 1S43, after the final reduction under the act Of
March 2, 1888, about 1870, 100000. The details Of
this estimate will be found in the accompanying paper
marked (E. and enclosures,)
II is believed that after the heavy expenditures re-
qured for the public SERVICE in the present year. shall
have been provided for, that the revenues which will
accrue from that, nearly proximate rate of duty
will be sufficient to defray the expenses Of govern
ment and leave surplus to be annually applied the
gradual pigment Of the national debt, leaving the
proceeds Of the public lands to be disposed Of as Con
gress shall think fit.
The general principles on which the final revision
of the Tariff is TO rest are perhaps simple and easy
10 be apprehended but the work of revision ITSELF in
Its adaptation and detail, must be work Of time. 1t
should be done calm reflection and careful delibe
ration, with view to reconcile far possibe the
conflicting opinions and to promote all the various in
terests of the whole People of these United States
And Il may be important, in that adjustment, only
to recprocate fair and equal principles and in
liberal spirit the concessions which may be accorded to
commerce by foreign nations but also TO do JUS
tice to our own citizens BY meeting in like equal
spirit any heavy exactions prohibitions which TO-
reign nations may think fit impose upon the impor-
tation Of our staple productions.
Some legal provisions are, ALSO required to correct
inequalities between the duties upon sugar and mo-
lasses and the drawbacks upon refined sugar and rum
manufactured distilled from foreign materials. The
relation between the duty and the drawback was adj
justcd BY the acts Of January 2lst, 1929, and May
18th, 1880 Since which time the duties have been
diminished while the drawbacks remain the same.
And a provision of law declaring that all non-enu-
meraed articles which bear similitude to any emu
merated article chargeable with duty shall pay the
same rate of duty with the article which it most re-
sembles would save large sum annually to the
nue., and prevent much annoyance and litigation be.
tween the importer and the officers charged with the
collection of the customs.
OfMe Public Debt
Butt is not expected that any modification Of the
laws will be operative TO supply the immed
ate wants of the Treasury, and 10 pay the debts
which fall due in the present and in the ensuing year
further loan is necessary effect those objects and
the only questions that arise are to the mode
of procuring the loan the character of the securities
and the assumed duration of the debt
1t would, in the opinion Of the undersigned be I'M
wise to charge upon the commerce the resources of
the country, in any form, the burden of paying at
once, at all hastily the national debt. Before that
is done of restoration and relief are
commerce and industry relieved from their present
state of embarrassment and depression, and benign
and liberal policy the part Of the General Govern
ment should call forth once more the hardy industry
and active enterprise of people and the vast re-
sources OF our country.
ii assume the period Of from five to eight years
that in which this debt be paid without incon.
venience and embarrassment and the time appears
be short enough, we have of the most essential
elements which to form our judgment as to the
best and most convenient mode in which the loan can
be kept up and the credit of the sustained
In the inception and during the progressive increase
Of national debt the issues of Treasury notes. though
dangerous and deusive, have yet their advantages
They need not be issued faster than the actual wants
of the Treasury require and power issue any gi-
sum, is, for all effective purposes of immediate
penditure, fund in the Treasury available to that
amount. But, when the debt has acquired its maxi
mum and ceases to accumulate, or, when it becomes
larger than the amount necessary to be kept hand
TO meet the current wants of the Treasury these adj
vantages disappear. This mode of loan then becomes
to the Government, what the sale in market Of new
promlssory notes for the purpose Of raising money 10
take up old promissory notes, is to individual. 1t
Is the issue Of Treasury notes to take up other Trea
sury notes year after year in succession and under
Observation-Disclosures it is inconvenient and expensive
But the raising Of money by the issue Of Treasury
notes is questionable because il is deceptive By this
means heavy debt may be raised and fastened perna
nenty upon the country the amount of new issues be-
ing involved with the payment Of the old, while the
people, and those who administer the finances
may not be impressed with the important fact that
national debt created or in The process of creation
Therefore, in the opinion of the undersigned,
when national debt does exist, and must con-
tinue for time, il is better that it should he
made funded debt, according to our ancient
financial usage. Il is then sheltered by no CO.
Yer and 10 the subject of no deusion. 1t is
OPEN papabe, true. The eyes of the country will be
upon it, and will be able to mark at glance its rcduc-
ton OF ITS increase. And is believed that loan for
the requisite amount having eight years to run, but
redeemabe q! the will ofthe Government on six months
notice could be negotiated much less rate of inter-
est than Treasury notes. Much expense would also,
be saved in dispensing with the machinery of the is Ne
and payment and cancelling Of Treasury notes
Il Is, therefore, respectfully recommended that sum
70 pay the debt at present existing and such
will necessarily accrue in this and The enso;no
be raised on oan for the time, and on the condition
above suggested.
On Keeping and Disjurs;no tbe D,,bI;c