The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-03-26

In SENATE u. s. MARCH 24rn, 1912.

In SENATE u. s. MARCH 24rn 1912.
Mr. RvEs said he had stated to the Senate, some
DAVIS ago. that he desired at the proper time to offer
some amendments to the Resolutions of the Honorable
Senator from Kentucky, Mr.. Cay) As they were
intended as substitute for portion of those Reso
lutions he presumed ii would not be in order to offer
them, while the amendments already submitted by the
Senator from New York (Mr Wright) were yet I'M
disposed Of He wished, however, to put the Senate
possession of them at this time, that they might be
printed, and opportunity be afforded to Senators
to consider them, before the final action upon the
subject of the Resolutions generally He begged
leave, in presenting them to state very briefly the
views and considerations which had determined HIM
to offer them.
fully participate, said Mr. RIvEs, in the feelings
of deep modification and humiliation which have
been so properly and forciby expressed by the hon
orable Senator from South Carolina Mr.. Preston)
this morning. the present deplorable condition Of
the finances and public credit of this great nation.
The evil demands immediate and practical re-
medy. The painful developments which have been
occurring from day to day have brought my mind to
the thorough conviction that, In the existing con-
don of things neither the essential branches of the
public service can be carried on nor can the public
credit be maintained, without the aid for the pres
form other, of all the of revenue
to which this Government has been heretofore
toned. What Mr. President, is the Notifying situa-
ton to which reduced With current revenue
hardly equal half Of the current expenditures
of the Government have been driven to every va
rety of desperate shifts and cxpediens meet the da
ly demands of the public service Already, since our
assembling the Secretary of the Treasury has been
compelled to come before US again and again with the
report of empty and bankrupt Treasury, showing
quarterly deficits of large amount for each of the first
two quarters of the current year. And how have
been compelled to meet them BY a new issue of the
notes of the Government, which, soon as they were
put out, though bearing SIX per cent interest, have
been actually sold learn, in the streets of the Ma
tional Capital, discount of from three TO four per
cent At the same time, the Treasury notes which
had fallen due, have been protested, in repeated in
stances, on the public mart, for nonpayment, with
the view, told Of recurring to the response
biity of individual endorseIs, having become bet
ter guarantee than the credit Of the Government it.
self And last, though not least pressing have be-
come the necessities of the Government and preca
riOus the public credit that have seen the PROPOSE
ton seriously entertained to put the stock of
loan into market for whatever it will bring.
Is not this Mr.. President, state of things humili-
atng to the national PRIDE and does it not call upon
every one, jealous of the honor of the American
remedy And at what moment is it permitted to ex-
list In the presence of foreign difficulties, which, to
say the least appeal to every sentiment of pride and to
every principle of prudence to be prepared for what
ever may be their possible issue | am no alarmist,
and least of ALL advocate of There is
thing | fervently implore for my country,
and all mankind, than the blessings Of peace
But it would be, humbly conceive, greatly
to underrate the gravity of the questions now pend
ing between the most poweru nations of
the EARTH and to disregard the deep sensbIity which
have recently awakened elsewhere, well
among ourselves, in relation to one Of the most deli
cate of these questions to say that there u.s. dan
ger in the future of interruption Of that peace,
which ALL trust, alike anxious to preserve,
long it be done consistently with the national
rights and honor. Peace, l sincerely hope, will be
preserved, where there many motives of every
kind, of feeling and of interest for its preservation
But while uncertainty rests the subject, and at
moment especially when that uncertainty is rapidly
Fastening the crisis of its final soIution douby
incumbent on to cherish vital and important an
element of the national strength the public credit
"the pillar of the public safety, it was empha
tcally called by the great statesman who was first
called to preside over the finances of the nation.
1t is time, then said Mr.. Rives that should adj
dress ourselves all seriousness the reesabishment
Of this main pillar of the public safety its only
and solid basisa sure adequate and sacred provision
for the discharge OF the public debt Our debt had
gone increasing with such sweeping velocity that
it was difficult TO keep pace with it, and few OF us
able to say to what amount it had already attain
ed At the commencement, OF the present SEES
sion, we had contracted by loan under the au-
thority of the act of the extra session, a
debt of five and a half millions of dollars
The Secretary of the Treasury, in his annual
report told us that there would be another debt
of millions, Treasury notes to be redeemed
in the course Of the present year. We have since
authorized issue of Treasury notes to the
amount of five millions of dollars more. How much
of the former issue may have been redeemed and
how much Of the new may not yet have gone out |
know not; but the probability is that the whole pub
lie debt of every kind is, at this moment between
fifteen and twenty millions. proposition is now
pending, know, in the other wing of the Capt.
toll for additional loans to the amount in the aggre
gate, of eleven and halt millions of dollars Now Mr..
President,wi any gentleman consent to subject the
credit of the Government to the risk of farther sho-
nor, by going into the market with this new stock
without previously providing the means of its re-
demption' 1t is a cardinal maxim of public credit
never departed from with mpunity that I" the crea-
ton of every new debt should be accompanied with
the means of its extingushment - and, after the
shock which our public credit has already sustained
these means must, moreover be inUoIaby pledged to
that object, and other This was the principle
on which our system of public credit was originally
built up and has the sanction alike of the great names
of Hamilton and Jefferson.
Where, then, is the fund which we can set apart
and pledge for the redemption of the public debt
The real estate of the nation in the absence
of an adequate current revenue, is the natu-
raj and proper security for the payment of the
public debt 1t has been regarded from the origin
Of our financial system The Funding act, as it has
been generally called, which laid the foundation OF
our public credit, pledged the public lands then be-
longing, or which should thereafter belong, to the
United States for the redemption of the public debt
and declared that they should be applied solely
that use, until the public debt should be fully salts
fed" They are now the only certain, accessible
which we command for the support o
public credit The condition, on which distribution
of their proceeds among the States to take place
having failed by the demonstrated necessity of raising
the duties foreign imports beyond twenty pei
cent, unless the land fund be restored to the Ma
tional Treasury, the distribution must stand sus
pended during the existence of this state Of things
and in the mean time, the fund should, in my humble
Judgment, be soemny pledged for the payment O