The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-04-09


Before | take my leave of the gentlemen who have
thought fit to ascribe to the friends of the Admins
traton the delay in the public business when mas
taken place, feel il but just that should make one
remark in regard to the pursued by the Demo
cratic party on this floor They have not, as some
gentlemen assert, ''folded their arms" and refused
to take their fair share of responsibility They nave
not manifested factious opposition to measures ior
the relief Of the Administration from It's pecuniary
embarrassments and, as far as my observation eA-
tends and from what can learn by personal in'el
course with gentlemen of that party, there Is WIN
them sincere disposition to aid the Administrator
in ali matters not at variance with the potcal pri-
ciples for which they contend. There may be ex-
ceptions but | speak of the party generally on inns
floor.
that there could be no 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 thele would be deficit in the
Treasury at the termination of the present year, OF
sl4, 900 900 Should the Loan bill now before us
become a law, there will still be deficit In lo43
of 80 SOC, 000 and should you even add this latter
amount to the bill now under consideration, it will
barely meet the wants of the Treasury.
In my opinion, sir, there should be, in such time
as this, taking into consideration foreign rea-
tons, surplus of at least S2,OOO,OOO, to meet any
sudden emergency which may arise, and IN my num-
BILE Judgments would be prudent and statesmanlike
to add SIS 900 900 to the present loan bill.
This would prevent the necessity oil 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.
i regret, sir, that cannot vote for the amendment
offered by the Chairman of the Committee OF ways
and Means. | sincerely regret 1t. have examined
the proposition cooly and dispassionately, with an
anxious wish to dvest myself OF any preconceNed
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, out my ue-
termination is the result OF calm reflection.
The state of the money market IS such that, the
bonds of the Government were put up to the highest
bidder, especially in large amounts, comoinatiots
might be- and doubtless would be, formed, amongst
large capitalists, so to prevent all competition
Scarcely any of the stock, matters now stand
would be taken with view to sale in this market
1t would nearly all lie ultimately destined ior Eng
land or other parts of Europe, and unless the icho
loan should be taken at once, capitalists would lear
that a second sae might be made, lower than the
first in money market naturally or arthclally de-
pressed. This would create distrust, ana 'ehu en-
trey to prevent competition.
The effect would be very prejudcial IN Europe ON
credit and, in the present stale OF our re-
lations, highly injurious to the national character
To necessity urgent as TO put up inc bonus
ia 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-
vertse SIS 600 900 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 6l draw
ers here affixing the price themselves there can
be found but very few persons IN the United otaies
" ho could have any thing to do with the loan Tor
want Of facilities, and because more Ptontao'e m
vestmens can be made home in other stocks, which
cannot now be sold in Europe although perfectly good
here.
Not only do think that it would be ruinous TO the
present and future credit of the United States to throw
its bonds upon the Market in the manner proposed,
but also feel assured that would be injurious to me
States by depecatng their stocks without IN anywlse
benefitng 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 postnotes and selling
them at heavy rate of discount in the market. 10
imperative want is to destroy credit es-
cially when it is accompanied by failure to devel-
ope and render available large natural resources known
to be at the command Of the Government or OF the
as the case may be-
If serious doubt really exists that the Government
of the United States cannot command money at the
usual rate of interest bond, having twenty years
10 run-which am willing to say shall De the Tune
allotted to this loan-and should It be deemed neces
sary in order to remove the fears or doubts OF capital
ists to set aside specific fund or pledge particular
property belonging to the United States then ! am
willing and ready to vote for repeal OF the distripu-
ton act or suspend its operaon andto pedSe 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 had
consider it the imperative duty OF Congress to sus
pend the operation of the distribution act especially
as it now stands connected with the twenty per cent
clause, that act is dead letter IT, with this pledge
Of the public lands, still cannot obtain money WIN
out offering bonds to the highest bidder 1t Is PROOF
positive of the runous policy of throwing our bonds
upon the market to be sold for what they may chanc
to bring and it then becomes an obligation solemnly
incumbent upon Congress to revise the larltl and
impose duties TO meet the actual wants OF the Irea-
sury.
Unjust confess, sir that do not exactly understand
the letter of the collector of New York on which so
much stress is laid He says that if the loan is re-
striced to par with fifteen years to run, the bill
authorizing it will be dead letter He then advances
opinion that if "power be given TO sell to the high
es. bidder and at private sale al 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-
sons wishing to purchase these bonds will buy them
private SALE at par, when they will have an oppor-
tunty of buying them at public sale, as competing
bidders; especially as they have an opportunity OF
combining purchase low as possible, and then o.
dividing the amount purchased among them, ordtaJ
according to the amount they wish To invest.
Suppose, for instance, that large amount ofgoods
were advertised to be sold ct auction on gwen
day: have an offer of the whole of them at Ger
tam price and | know from the necessities OF the
seller that he would be glad to sell them TO at that
price lcerainly would prefer to wait until the day
Of sale arrived, because | have chance of buying
them at public sale much below the prlce offered to
Nc taken at private sale and have also an opponu-
nifty Of forming combination with others, and thus
prevent competition by secret understanding not to
bid against another, we can, after purchasing
the goods divide them according 10 arrangement
previously made. May ,hi not be the case with these
bondsi / teal sir that it will and that the Govern
ment II greatly suffer from the power proposed to be
granted aud therefore it is that cannot vote for the
amendment although, if it should be adopted, | will
still vote Tor the loan BILL as being absolutely neces-
sary.
will, however, add one more word on the subject,