The Arkansas banner., 1844-12-18

trol. As it is, it may be well worthy the consideration of Congress, whether the..law establishing the sinking fund--tnder the on- eratlon of which the debts of the Revolution and last war with Great Britain, were. to a great extent, Xtinguished-should not, with proper modlficatlons, so as to prevent an ac- cumulatlon of surpluses,and limited in amount to specific sum- be re-enacted. Such nro- Vlsion, which would authorize the Govein- ment to go into the market for purchase of It's own stock, on fair terms, would serve to maTntaln It's credit at the highest point. and prevent, to great extent, those fluctuations III the price of its securities which might, under other circumstances, affect its credit. No apprehension of this sort is, at this mo- ment, entertained; since the stocks of the Government which but two years ago were 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 con- tingency the public credit.
 1t must also be a matter of unmingled gra- tlflcatlon, that, under the existing financial system-resting upon the act of 17S9, and the resolution of l9l6,-the currency of the country has attained state of perfect sound ness; and the rates of exchange between diff ferent parts of the Union, which, in 1841, denoted, by their enormous amount, the great depreciation, and in fact worthlessness. of the currency in most or the States-are now reduced to little more than the mere expense ot transporting specie from place to place, and the risk incident to the operation. Tn a new country like that of the United States where so many inducements are held out for speeulation-the Repositories of the suplus revenue, consisting of Banks of any descrip- ton, when 1t reaches any considerable amount, require the closest vigilance on the part of the Government All banking insti- tutions, under whatever denomination they may pass, are governed by an almost exclu- siye regard to the interest of the stockholders. That interest consists in the augmentation of profits, in the form of dividends, and large surplus revenue entrusted to their custody is but too apt to lead to excessive loans and 10 extrayagantly large issues of paper As a necessary consequence, prices are nomlnally increased, and the speculative mania every where seizes upon the public mind. 4 ficti- hous state ol prosperity for a season exists j; and, in the language of the day, money be- comes plenty. Contracts are entered intoby individuals, resting on this unsubstantial state of things, but the delusion speedily passes away, and the country Is oyerrun with an in- debtedness so weighty as to oyerwhelm ma ny, and to visit every department of industry with great and ruinous embarrassment. The greatest vigilance becomes necessary on the part of the 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 it's revenues shall be regarded as additions to their banking capital, or as the foundation of an enlarged circulation. The Government, through its revenue, has, at all times, an inn portant part to perform in connexion with the currency; and 1t greatly depends upon its vigilance and care, whether the country be involved in endorsements similar to those which 1t has had recently to encounter; or, aided by the action of the Treasury, shall be preserved in a sound and healthy condi- ton.
 The dangers to be guarded against are greatly augmented by too large surplus of revenue. When that surplus greatly exceeds in amount what shall be required by a wise and prudent forecast to meet unforeseen con tingences, the Legislature itself may come to be seized with disposition to indulge in extravagant appropriations to objects, many of which may-and most probably would be found to conflict with the Constitution.- A fancied expediency is elevated above con- stitutlonal authority; and reckless and wasteful extravaganza but too certainly fol- lows. The important power of taxation, which, when exercised in its most restricted form, is a burden on labor and production, is resorted to, under various pretexts, for pur- poses having no affinity to the motives which dictated its grant, and the extravaganza of Government stimulates individual eXtrava- ganee, until the spirit ofsa wild and ill-regu- lated speculation, involves one and all III It's unfortunate results. In view of such fatal consequences, it may be laid down as an axiom, founded in moral and political truth, tlldt no greater taxes SuOulu DG HI JOStu tlldIi are necessary for an economical adminlstra- ton of the Government; and that whatever exists beyond, should be reduced or modified. This doctrine does in no way conflict with the exercise of sound discrimination in the selection of the articles to be taxed, which due regard to the public veal would at all times suggest to the Legislative mind. It leaves the range of selection 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 in dependent States, patriotic Legislature will not fail in consulting the interests of the parts, to adopt such course as will be best calcula- ted to advance the harmony of the whole; and thus ensure that permaneney in the policy of the Governn ent, without which all ef forts to advance the public prosperity are vain and fruitless. This great and yitally impor- tant task rests with Congress and the Ex- ecutive can do no more than recommend the general principles which should govern its