Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-04-18
rwENrY-sEvESrH CONGRESS.
IN SENATE.
wIpSEspAr. April -. isi9.
THE LOAN BIII

the payment OF interest on the Treasury notes out
standing, was taken up-tte question being, shall
the bill PAST
MIR GRAHAM observed that. called upon as he
was, to vote for tins bull which 10 create an add.
tional debt TO be raid hereafter. he had felt himself
under the necessity of inquirng into the resources
and expenditures OF the Government for q number
Of years past; and in prosecuting this inquiry he
had discovered that the revenue had been long in
adequate 10 supply the means demanded nv the
Government, and therefore n condition of the Trea
sury had been produced which demanded the pas
sage OF this bill for immediate relief From this
animation Of the resources and expenses of the Go
vernmen Tor wears past, he had also discovered that
during the late Administration, the average OF ex-
penGitures for ordinary purposes was 9S millions.
while the average OF income from revenue was but
20 millions; so that the difference was deficit OF
means To meet expenses, which would have lett n
debt OF than 81 millions Mt the end o,that term,
instead OF FIVE millions six hundred thousand dol
lars were il not for the extraordinary IN
the hands Of that Administration. Herevewed the
expenditures OF the four years, and dwet for some
time on the manner in which the reductions during
the last year made, with view Of showing
that they were merely posiponemen,s, as nvowed
the preamble of bills then passed IN relation To
those subjects. lie thought either one thing or 9th
ought to have been done; that is either the works
and expenditures ought to have been cut oil entirely
and abandoned, or adequate means should have
been raised to carry them till completed
lie stated the eXtrAordinary resources Cf the late
Administration from Withholding of the fourth in
stalment of the surplus revenue, directed TO be paid
To the States; and the repayments from banks, e'v
ing not more, he believed, than 100000 due from
banks.
MIR WOODBURY. explained that there was due
from two banks, in principal and interest, abou,
s2OOoOI
Mr. GRAHAM continued; that made little diTs-
renee; he believed that was the unlv debt due tn
the Government from banks. lie coniended that
TO the Withholding from the States of the fourth in
stalment of the surplus revenue, might be traced
much OF the ombarrasmcnt which the State Govern
menis have been laborins under.
He thought 1t ungracious OF those who had spent
the fourth lnStalmen', together with nre millions Of
other extraordinary resources and tariff averaging
forty per cent. leaving oeh,, besides, OF IS GOO.
900. TO reproach the present party IN power. with
extravaganza and wasteiulness.
He computed that the ordinary services, with the
necessary preparations for defence, IN view OF the
CONDITION OF the foreign relations Of the country
would require expenditures which could not Toe
timated at less than twenty millions annually; pni
the income from customs being only thirteen mil
IONS il was impossible 10 asoid raising loan to
supply the deficiency till the income could be pro.
vied 10 meet the wants OF the Government.
He adveued to the subject Of restoring the land
fund TO the Treasury for revenue, and contendcd
that originally, when the public domain en-.
trusted u the Government, II was only for gwen
purposes, and not source Of permanent revenue.
lie would not discuss the constitutional right OF
mark, that the lands to be disposed of rather
for the benefit Of the States scveraly, than for the
benefit ollhe General Government as an indepen e
dent co'V5ration. He contended that the proceeds
OF the lands ought rather TO be distributed TO the
States than appropriated for any purposes Of Gene
raj Government. He believed 1t woui he found
that in those periods of the history of the Govern
ment, during which direct taxation was obliged TO
he resorted TO, the greatest Accountability
evineed IN the prudence and economy which perva-
ded every department; and on the contrary, those
periods during which the means of the Government
were derived from sources which did not involve
such accountability, were the most extravagant and
wasteful This, then, was q strange argument
against the restoration Of the land fund as a source
OF revenue, and showed the pruprlety Of throwing
the responsibility OF the taxing power upon those
who vote the appropriations, and adjust the expen-
ditures
The Government, as he said before, found Itself
IN The condition that its least expenditures for the
efficient public services amounted 10 twenty mil
ions, with a revenue OF only thirteen Millions
The estr-stes OF the Secretary of the Treasury,
for the ordinary services Of this year. was twenty
Tour millions. In this was included four millions
Tor the civil list, which however he hoped To see
considerably reduced under the nrunns knife OF the
Relrenchment Committee. The estimate for the
War Department was 81, 7i7,7eI. lie did rot
know whether It was more or less than the estimates
Tor the last two or three years The estimates for
the naval service is &c 705 ,OOO-an increase this
year beyond the last Of nearly three millions IL
did seem to him, this was proceeding with rather
TOO much haste; and that the expenses Of war
panic may We made as great a war Itself These two
branches OF the public service are estimated at up
wards of twenty millions Of dollars Itseemed 10 HIM
there was great room for retrenchment in these es
mates war panic had been encouraged for the last
eight years, and so expensive had il proved that he
asked, was II not time 10 put end 10 IT, by com.
ing to the point at with those foreign MOWERS
winch were IN dispute. sooner than continue in
such an expensive uncertainty In proceeding with
desire OF retrenchment, It was necessary to take
M every item Of expense separately and ask was
inns necessarily keeping IN view the exhausted
rendition OF the Treasury, the nsufficiency of the
income OF the Government, and the improperly Of
gong any further on borrowed means. This was
the onlv way 10 effect retrenchment in earnest.
MIR BERRlEN desired to recall the attention of
the Senate 10 the consideration Of N. hin under
discussion. The course which the debate had taken
had not been TO decide upon the necessity of pass
ing the bill, hut upon the origin Of the condition of
tie Government requiring the loan. As member
81 the Finance Committee he had been chilled upon
10 investigate the subject thoroughly: and he had
rome To the conclusion that the only question which
could with propueiy arise on this bill, was. yghe.
Their the sum called for or was MOI absolutely
necessary-nll having admitted that some supplv
was indispensable TO relieve the Governmsntfrom ITS
present embarrassment
The Senate has already decided by the deliberate
adoption OF a resolution, lately under discussion
that Congress IS sound 10 provide means within the
S'al wv tHt u ptiuituIth OF lue yedr. Under this
rule, therefore, the larger portion Of this additional
loan OF five millions is authorized by the circym.
stance that 100000 Of Treasury notes no, due
within the year, have been taken IN through the
cusiom-houses in payment Of duties which should
have produced money as part Of the means Of the
Government for the year He then computed the
outstanding Treasury notes, and considered the eff
feet Of the section OF the act on the holders with
regard TO funding them; md then adverteI 10 the
second branch Of his argument as to the propristy
q o mi "a pI sapIft 81 Nr.
o ctonsn detail TO the several pioyis ons ftte hill
FIST. os to the amount second, as 10 the tn, ,lirJ
rs TO the authority TO negotiate the sale Of the to-k
less than plr; and, fouThy, ms TO the nu.torit a.
advertise the sale Of stock; and having e.apituiat,d
all the arguments Of those who had preceded him
for and against these provisions, he concluded thai
the bill asst stands tho best th1t could be divised
under all the circumstance. lie denied that the
credit Of the Government would be impaired hy the
operation Of the bill and he contended that the oh
Iect Of the loan being redeem Treasury notes and
not solly 10 obtain specie for them, effect would
he 10 sustain the stock par. lie denied that the
effect could be 10 deprccats Treasury notes because
the bill rot only continues the interest on them after
they fol- due, but adds and additional faculty
10 that which they already possess Of paying Gov
eminent dues-the faculty Of becoming permanent
stock II the holders prefer IL.
NJ 20 the objection that this loan would have The
effect Of diminishing tho revenue by vithdrawiny
that amount Of capital from commerce, thereby d..
mInsh'ng mposts; he argued that, n the money WINS
10 be hoatded up, there might be some ground. for
the Oblecuoni but os the condition Of The Government
was obviously such as 10 require that the nnonev
shall be discussed as fast nr a. 10 rc~ey- +, cff.