Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1844-12-24
POLITICAL.
REPORT OF THE SECRETARY OF THE
TREASURY

To me honorable The members of the Seraie and
of The House Of Representatives. Of tie United
STATES Of America in Congress assembled:
BY can act TO establish the Treasury Depart
ment," approved September 2, 1859, it is the du,y,
of the Secretary Of the Treasury ITO digest and
prepare plans for the improvement and manage
ment of the revenue and for the support of the
public credit, to prepare and report estimates Of
the public revenue and the public expenditures.
BY IAN act supplementary &c the act entitled,
IAN act to establish the Treasury Department"
approved March 10, 1900, il is 'the duty Of the
Secretary Of the Treasury TO digest prepare, and
lay before Congress, at The commencement Of
every session, report on the subjec, of finance,
containing estimates of The public revenue and
public expenditures, and plans for improving or
increasing the revenues, from time to time, for
the purpose of giving information TO Congress in
adopting modes Of raising the money requisite 10
meet the public expenditures"
BY other acts, certain other duties are required
OF the Secretary Of the Treasury.
In obedience 10 those several acts, the Secretary
OF the Treasury submits most respectfully 10 The
Congress the following report and estimates
The support of the public credit is Of the first
importance TO The national honor, national safe
ty, national prosperity, and the welfare Of the
citizens, individually and collectively.
Public credit is a faculty, 10 borrow, at plea
sure, large sums on moderate terms, the art Of
distributing over succession OF years the costs
of the extraordinary efforts found Indispensable
in onc-a mean OF acceerating The prompt EN-
ployment oil all the abilities of nation, and even
of GispoSing of part Of the overplus of Others
The means by which public credit is to be sup
ported, are the excrtion of the will and The power
to provide, by prudent forecast, the ways and
means amply sufficient for the punctual payment
OF all debts, according 10 the terms OF the con-
tracts: and good faith in fulfilling Heterogeneous
expressly entered into or implicitly and morally
obligatory.
A nation is composed of natural persons, uni
ted together as body polite, for the purpose of
promoting their mutual safety and advantage, by
the Joint efforts Of their combined strength. Such
a society is moral person, susceptible OF rights
and obligations. As individuals who fulfil their
engagements are respected, trusted, prosper, and
are able TO obtain succor in emergencies SO States
by like means, are respected trusted, prosper, and
are able TO obtain succor in exigencies.
Breaches OF public engagements which have
arisen on, Of special emergencies, which seemed
to plead for them, as having been inevitable, have
not been without effect in greater less degree,
TO weaken public credit. But violations of pub
lie engagements proceeding from negligence,
choice, want of knowledge, or want Of frmness
of moral purpose 10 levy taxes and provide The
ways and means, are highly injurious TO public
credit.
The mischiefs which ensue from non-fulfil-
ment Of public engagements are numerous and
complex, baleful to the affairs Of Individuals,
and huriful to the successful operations OF
the Government Public and private credit are
closely allied. Credit may he considered as one
whole-an entirety: each parl having DEEPEN
dency upon, and sympathy with, every other part.
A shock to public credit dminishes the resources
of private credit; deranges exchanges, sales and
payments; causes disorders and structures in CON-
merce domestic and foreign. If the creditors OF
Government are disappointed in receiving pune
tual payments, they fail in their engagements 10
their creditors, and so on, between other debtors
and creditors until the disappointments are felt
throughout long series of creditors and debtors,
the circulation is obstrucled business anguishes,
losses are incurred, and bankruptcies ensue.
TIE inviolability OF public faith, the support
of public credit, is recommended by considera-
tons Of public utility, public virtue, and public
happiness; ii is commanded by The unchanee-
able precepls OF morality. The affairs OF ma
ton cannot be happily administered without the
strict Observance Of justice and good faith.
In the affairs of nations, exigcncies have
arisen, and may be expected TO occur, 10 pro-
duce necessity for borrowing. The changes
made in modern times in the condition of ma
lions, the great alterations introduced in the art
of war, have rendered modern wars very cxpen-
sive: insomuch that money, to a considerable ex-
tent, NAV be accounted an instrument which con-
duces to victory. No nation has been able TO
delray the expenses Of modern war By the pro-
ceeds of taxes during the war; The weight OF
increased annual taxation 10 pay The whole In
creased annual expenses Of the war would be in
toerahy oppressive. Therefore,. necessity
arises, of borrowing large sums, of charging the
payment npon after generations, BY funding the
debt, imposing taxes 10 pay the annual interest,
and providing sinking fund TO pay the principal
gradually in times Of peace.
To be able to borrow, and to borrow on good
terms, the national credit must be firmly estab-
lished; system Of revenue must be provided
by taxation adequate to the punctUal payment OF
interest, and pledged for that object II the pub
lie faith and credit of the nation be doubted loans
cannot be obtained without extravaganza rates 0!
interest reserved in one form or another; and the
like disadvantage will arise TO the Government
upon purchases Of commodities upon promises OF
future payment.
The safeguards interposed by the texture OF
The Federal Constitution have saved us from wars
from trivial causes or schemes of personal am.
biion But the Just and pacific policy manifest
ed by the United States in their intercourse with
foreign nations has not saved us in time
past from the calamties of war; nor can we
reasonably EXPECT that the blessings of peace
which we now enjoy will be ever during.
To be prepared Tor war is one Of the safeguards
against foreign aggressions which lead 10 war
A wise people will in time OF peace look to The
possibility that, in their intercourse with foreign
nations they may be involved in war, and will
not wholly neglect to provide for the exisencies
OF such an event, by laying up supplies Of militia
nv stores and implements. disincumberirg them
selves from the debts OF former wars and insttu-
ting Just system of permanent revenue, which
might be readily augmented when occasion re-
ouires. thereby placing the public credit and ma
,iopal resources upon the most solid foundation,
and 10 the most commanding posture.
On the first day of july, 1914, the debts OF the
United States consisted of the following pariicu-
lars, videlcit
|. or the old funded debt, being unclaimed prin-
cipal and interest returned from the loan Of
fee, payable on presentation Sl7o,O3i d
2. Outstanding certificates OF the
old unfunded debt, with interest
PAYABLE on presentation 2i,2l4 %
g. Treasury notes during The war
OF 1872 terminated in the year
1915 4,3l7 Al
| a. Certificates ofMississippi stock
issued under the acts OF 3lst
March, 1914, and 23d Janua-
nv, 1915 1890 %
5. Debts assumed by the United
States for The several cities in
the Distric, OF Columbia, I'M
der the act OF May 20, 1886,
originally amounting TO one
million five hundred thousand
dollars, bearing interest al the
rate OF 6 per cent per year,
payable 10 yearly sums Of six
~ fhonSa nd dollars in each and
every year now reduced to l,s6O,oOo 90
G. Outstanding Treasury notes,
viz:
Otthose issued after 18th Oc-
tober, 1887, and before Sd
March, 1913 1906, 400 90
Oflhose issued I'M
der the act Of 81
Aggrega,ely making The sum Of 2,s5G,ao7 81
T. Certificates of stock for loans
under the act of2lst July, 1871,