Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1844-12-06


years ago we're offered for sale to capitalists,
at home and abroad, at depreciation, and
could find no purchasers, are now greatly
above par in the hands of the holders; but
wise and prudent forecast admonishes us to
place beyond the reach of contingency the
public credit.
II must also be matter of unmingled
qualification, that, under the existing fnan-
cial system-resting upon the act of 1888,
and the resolution Of 1S16-the currency of
the country has attained state Of perfect
soundness; and the rates Of exchange be-
tween different parts of the Union, which,
in l84I denoted, by their enormous amount,
the great depreciation and in fact worthless
ness OF the currency in most Of the States -
ere now reduced to little more than the
mere expense of transporting specie from
place to place, and the risk incident to the
operation. In new country like that Of the
United States--where so many inducements
are held out for speculation-the deposito-
ries of the surplus revenue, consisting Of
Banks Of any description, when it reaches
any considerable amount, require the closest
vigilance on the part of the government
All banking institutions, under whatever de-
an almost exclusive regard to the interest of
the stockholders. That interest consists in
the augmentation of profits in the form of
dividends, and large surplus revenue en-
trusted to their custody is but too apt to lead
to excessive loans and to extravagantly large
issues of paper. As a necessary conse-
quence, prices are nominally increased, and
the speculative mania everywhere seizes up
on the public mind. A fictitious state of
prosperity for a season exists and, in the
language of the day, money becomes plen-
ty. Contracts are entered into by ndividu-
ais, resting on this unsubstantial state of
things, but the deluson speedily passes away,
and the country is overrun with an indebt-
edness so weighty as to overwhelm many,
and to visit every department of industry
with great and ruinous embarrassment. The
greatest vigilance becomes necessary on the
part of government to guard against this
state Of things. The repositories must be
given distinctly to understand that the favors
of the government will be altogether with
drawn, or substantially diminished, if its rev.
enues shall be regarded as additions 10 their
banking capital, or as the foundation of an
enlarged circulation. The government,
through its revenue has, at all times, an i'm
portant part to perform in connection with
the currency; and it greatly depends upon
its vigilance and care, whether the country
be involved in embarrassments similar to
.hose which il has had recently to encoun-
ter; or, aided by the action of the Treasu-
ry, shall be preserved in sound and healthy
condition.
The dangers to be guarded against are
greatly augmented by too large surplus OF
revenue. When that surplus greatly ex-
ceeds in amount what shall be required by
a wise and prudent forecast to meet unfore-
seen contingencies, the legislature itself may
come to be seized with disposition to in
dulge in extravagant appropriations to OBJ
iects, many of which may-and most prob
ably would-be found to conflict with the
Constitution. A fanced expediency is ele-
waited above constitutional authority and a
reckless and wasteful extravaganza but too
certainly follows. The important power Of
taxation, which, when exercised in its most
restricted form, is burden on labor and
production, is resorted to, under various pre-
texts, for purposes having no affinity to the
motives which dictated its grant, and the
extravaganza of government stimulates indi-
vidual extravaganza, until the spirit Of a wild
and i'll regulated speculation, involves one
and all in its unfortunate results. In view
Of such fatal consequences, il may be laid
down as an axiom, founded in moral and po-
litical truth, that no greater taxes should be
imposed than are necessary for an economi-
cal administration Of the government; and
that whatever exists beyond, should be redu.
ced or modified. This doctrine does in nc
way conflict with the exercise of sound
discrimination in the selection of the arti
cles to be taxed, which due regard TO the
public veal would at all times suggest to the
Legislative mind. 1t leaves the range of Sc
lection underlined; and such selection SHOULD
always be made with an eye to the great in
terests of the country. Composed as is the
Union, of separate and independent States
patriotic legislature will not fal in consult
ing the interests of the parts, to adopt sucf
= course as will be best calculated to advance
the harmony of the whole; and thus ensure
that permanency in the policy of the gov
eminent without which all efforts to advance
the public prosperity are vain and fruitless
This great and vitality important task rest
with Congress and the Executive can de
no more than recommend the general prin
ciples which should govern in its execution
/ refer you to the report of the Secretar,
of War, for an exhibition Of the condition
of the army and recommend to you, a
well worthy your best consideration, man.
of the suggestions it contains. The Secre
tary in no degree exaggerates the great i'm
portance, of pressing forward, without delay
in the work of erecting and finishing thu