The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1844-12-20

tingency the public credit.
1t must also be matter Of unmingle,
qualification, that, under the existing Fl
nancial system-resilng upon the act o
1889, and the resolution of lSl6-ih,
currency Of the country has attained ;
state of perfect soundness; and the rate:
of exchange between different parts of The
Union, which, in 1871, denoted, by then
enormous amount, the great depreciation.
aud in fac, worihlcssncss of the currency
in most of the Staies-are now reduced
10 lille more than the mere expense OF
Transporting specie from place to place,
and the risk incidental TO the operation
In new country like tina, of the United
Slates-where SO many inducements are
held out for speculalion-ihe repositories
oil the surplus revenue, consisting of banks
OF any descrI p,ion, when i, reaches any
considerable amount, require the closest
vigilance on the part of the government
All banking institutions, under whatever
denomination they may pass, are govern
ed by an almost exclusive regard to the
interest Of the stockholders. That inter
est consists in the augmentation of profits,
IN The form Of dividends, and large sur
plus revenue entrusted to their custody is
but 100 apt to lead TO excessive loans and
10 extravaganny large issues of paper.
AS necessary consequence, prices are
nominally increased, and the speculative
mania every where seizes upon the public
mind. A fictitious state of prosperity for
season exists; and, IN the language Of
the day, money becomes plenty.
Contracts are entered into by indvid-
nails resting on this unsubslantial state of
things, but the delusion speedily passes
away, and the country is overrun by an
Indebtedness so weighty as to overwhelm
many, and to visit every department, of
industry with great and ruinous embar-
rassment. The greatest Vigilance be-
comes necessary on the part of govern
ment TO guard against this state Of things.
The repositories must be given distinctly
TO understand that the lavors Of the gov
eminent will be altogether Withdrawn, or
substantially diminished, if its revenue
shall be regarded as additions 10 their ban
king capital, or as the foundation of an
enlarged circulation. The government,
through its revenue, has, a, all times, an
importan, part to perform in connection
with the currency and II greatly depends
upon lis vigilance and care, whether the
country be involved in endorsements
similar to those which it has had recently
to encounter. or aided by the action Of
the treasury, shall be preserved in a sound
and healthy condition.
The dangers to be guarden against
are greatly augmented by too large sur.
plus Of revenue. When that surplus great
ly exceeds in amount what shall be re-
qurcd by a wise and prudent forecast to
meet unforeseen contingencies, the lcgis.
lature itself may come TO be seized with a
disposition TO indulge in extravagant
appropriations to objects, many of
which may-and most probably would
be found to conflict with the constitu~
ton. A fancied expcdiency is elevated
above constitutional authority; and a
reckless and wastefal extravaganza but too
certainly follows.
The important power of taxation,
which, when exercised in its most reslric-
ted form, is burden on labor and pro-
duction, is resorcd to, under various pre-
texts. for purposes having no affinity to
the motives which dictated lis grant, and
the extravaganza Of government, stimulates
individual extravaganza, until the spirit of
wild and i'll regulated speculation in.
wolves one and all in its unfortunate re-
suits. In view ofsuch fatal consequences,
i! may be laid down an axiom, founded
in moral and political truth, that no great
er taxes should be imposed than are ne
cessary Tor an economical administration
oil the government, and that whatever ex-
lists beyond, should be reduced or mo-
difed.
This doctrine in no way conflicts with
the exercise Of a sound discrimination in
the selection Of the articles to be taxed,
which due regard to the public veal
would a. all times suggest TO the legisla-
tive mind. 1t leaves The range of seec-
lion underlined and such selection should
always be made with an eye TO the great
interests of the country. Composed as is
the Union OF separate and Independent,
states, patriotic legislature will not fail,
IN consulting the interests of the parts, to
adopt such course as will be best calcua-
ted TO advance the harmony of the whole,
and thus insure that permanency in the
policy of the government wi,hou, which
all efforts to advance the public prosperi-
~ are vain and frui,lcss. This great and