The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-04-09

fraught with bitter fruits such now so lamen-
tably palpable-
Before take my leave of the gentlemen who have
thought fit to ascribe to the friends OF the Admins
tration the delay in the public business which has
taken place feel it but just that should make one
remark in regard to the course pursued by the Demo-
cratic party on this floor They have not, as some
gentlemen assert, 'sfolded their arms" and refused
to take their fair share of responsibility They have
not manifested factious opposition to measures for
the relief Of the Administration from Its pecuniary
endorsements and as far my observation ex-
tends, and from what can learn by personal inter
course with gentlemen of that party, there is with
them sincere disposition to aid the Administration
in all matters not at variance with the political prin
cipes for which they contend. There may be ex-
ceptions but speak of the party generally on this
floor
said sir, at the commencement of my remarks
that there could x difference of opinion as to the
actual and pressing emergency of the Treasury and
that no person could doubt the absolute necessity OF
this loan. The Secretary of the Treasury, IN his
annual report submit early in this session, INFORM
ed Congress that there would be dehcH In the
Treasury at the termination of the present year. OF
Sl4,000,000 Should the Loan bill now before us
become law, there will still be deficit IN lS43
of g. 500 900; and should you even add this latter
amount to the bill now under consideration, 1t will
barely meet the wants of the Treasury.
In my opinion, sir there should be, in such time
this taking into consideration our foreign rea-
sudden emergency which may arise, and in my hum
BILE Judgment it would be prudent and statesmanllke
to add SIS, 000, 900 to the present loan BILL
This would prevent the necessity of introducing
another loan BILL which fear will be called for be-
fore Congress adjourns, if you do not now extend
the amount to the wants of the Treasury, as stated
by the Secretary.
regret, sir, that | cannot vote for the amendment
offered by the Chairman of the Committee OF Ways
and Means sincerely regret it. have examined
the proposition coolly and dispassonatey, with an
anxious wish to divest myself of any preconceived
opinion or prejudice, but, after seriously examining
it in all its bearings and probable consequences, my
first impressions against it remain unchanged may
be wrong, very wrong in my judgment, but my de-
termination is the result of calm reflection
The state of the money market is such that, II the
bonds of the Government put up to the highest
bidder, especially in large amounts, combinations
might be, and doubtless would be, formed, amongst
large capitalists, as to prevent all competition
Scarcely any of the stock, as matters now stand,
would be taken with view to sale In this market
1t would nearly all lie ultimately destined for Eng
land other parts of Europe, and unless the 'oole
loan should be taken at once capitalists would tear
that second sac might be made, lower than the
first, in a money market naturally OF artlhclally de-
pressed This would create 'distrust, and tend en-
tirely to prevent competition
The effect would be very pre- judicial In Europe on
credit and in the present state of our foreign re-
lations, highly injurious to the national character,
70 avow necessity urgent as to put up the bonds
of The Government TO the highest bidder and that too
time of peace, would ruin The credit OF the Govern
ment especially after the first part of the loan might
be taken up.
Suppose the Secretary of the Treasury should ad-
vertise SIS 900 900 of the stock, to be taken on the
LIST of June. A steamship would, during the inter
val carry the news 10 Europe. One or two bankers
might be ready to take the stock from their Dill draw
ers here, affi1ing the price themselves There can
be found but very few persons IN the United STATES
who could have any thing to do with the loan, Tor
want Of facilities, and because more profitable IN
vesments be made at home In other STOCKS winch
cannot now be sold in Europe. although perfectly good
here.
Not only do think that it would be runous to the
and future credit of the United States to throw
it's bonds upon the market in the manner proposed,
but also feel assured that it would be to the
States by deprecatng their stocks without In anywse
beneftng the United States. An individual who
throws his notes into the market to be sold to the
highest bidder, rarely pays them when they become
due. The United States Bank gave the hrst fatal
blow to its credit by issuing postnoes and selling
them at a heavy rate of discount in the market 10
acknowledge imperative is to destroy credit; cs-
ciay when it is accompanied by failure to devel-
ope and render available large natural resources known
to be ut the command of the Government or OF the
individual, as the case may be.
If serious Doubt reay exists that the Gov eminent
of the United States cannot command money at the
usual rate of interest bonds having twenty years
10 run-which am willing to say shall be the time
allotted this loan-and should it be deemed neces-
sary in order to remove the fears or douDts OF caPa
s,s to set aside specific fund, pledge particular
property belonging to the United States, then l am
willing and ready to for repeal of the dstrlbu-
ton act or to suspend its operation, andto pledge the
proceeds of the public lands for the redemption OF the
principal and interest of any loan made
If without this security, money cannot be mad, l
consider it the imperative duty OF Congress to sus-
perd the operation of the distribution act especially
as now stands connected with the twenty per cent
clause, that is dead letter. If with this pledge
of the public lands, still cannot obtain money with
out offering our bonds to the highest bidder it is proof
positive of the runous policy Of throwing our bonds
upon the market to be sold for what they may char &c
to bring and it then becomes an obligation solemnly
incumbent upon Congress to revise the tariff and
impose duties meet the actual wants OF the Irea-
sury.
must confess sir, that do not exactly understand
the letter of the collector of New York, which SO
much stress is laid He says that if the loan is
stricted par with fifteen years to rum the bill
authorizing it will be dead letter He then advances
an opinion that, if "power be given to sell to the high
est bidder and private sale at par, you will be able
to raise the necessary funds at par" should be
glad, sir to be informed how it is possible that per-
wishing to purchase these bonds will buy them
at private sale at par when they will have an oppor-
tunity of buying them at public sale, as competing
bidders; especially they have an opportunity of
combining purchase low as possible and then O.,
dividing the amount purchased among them, rataJ
according to the amount they wish to invest.
Suppose, for instance that large amount goods
were advertised to be sold at auction on g ven
day; have an offer of the whole Of them at GER
tain price, and know from the necessities Of the
seller that he would be glad to sell them to at that
price certainly would prefer to wait until the day
Of sale arrived, because | have chance Of buying
them at public sale much below the price offered to
be taken at private sale; and have also opportu-
If mi iuofio w 9th am hua
prevent competition, by secret understanding not to
bid against another, as we can, after purchasing
the goods divide them according to an arrangement
previously made. May this not be the with these
bonds' fear sill, that it will, and that the Govern
ment will greatly suffer from the power proposed to be
granted and therefore it is that vote for the
amendment, although, if it should be adopted will
still for the loan BILL being absolutely neces