The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1844-12-20

No apprehension of this sort is, at this moment,
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 admonshes us to place be-
yond the reach Ct contingency the public cFed''
1t must also be matter Of rumngled gratifica-
ton that under the existing financial systen-rest
ing upon the act of 1888, and the resolution of
leI6-the currency of the country has attained a
state OF perfect soundness; sll the rates of ex-
eieDge between d!1ereDt parts Of the Union,
which in I64l denoted by their enor;hous amount,
the great depreciation, and in TACT worthlessness
&C the currency in most of the States-are now
reduced 70 little more than the mere expense of
Transporting specie from place 10 place and the
risk incident to the operation. In a new country
like that of the United Gtates-where so many
inducements are held out for speculation-the
repositories Of the s"rprs revenue, consisting of
banks of any description, when it reaches any
considerable araocrt, require the closest vigilance
c1 the pnrt cf ti'e government. All banking in-
stitu'ions, unde. whatever denomination they nay
pars are governed by an a'rnost exclusive regard
to the interest oi the stockholders. That interest
consists IN the augT enatira of profits in the form
of dividends, end 'ar,3 surplus reyenue entrust-
ed to their custody ie tut 100 apt to lead to eZces-
sive loans anG 10 ext1avaganty large issues OF
paper AS Tecessa'y consequence, prices a.e
nominally increased, and the speculative mania
every where seize1 Upon The public mind. A fc-
titous state Of pros erity FOR season exists; and,
in the Language Of the day, money becomes plen-
ty. Contracts ere entered into by individuals,
resting this unsnbstantiai state OF things, but
the delusion speedily passes away, and the country
is overrun with an Indebtedness 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 the government to guard against this state
of things. The repositories must be given dis
tinctly to understand that the favors of the gov
ernment will be altogether withdrawn, or substan-
tally diminished, If its revenues shall be regarded
as additions to their banking capital, or as the
foundation Of an enlarged circulation. The gov-
ernment, through its revenue has, at all times, an
important part to perform in connexioE with the
currency; and it greatly depends upon is vigilance
and care, whether the couatry be involved in en-
barrassments similar to those which it has had re-
Gently TO encounter or, aided by the action of the
Treasury, 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 exceeds in amount what
shall be required by wise and prudent forecast TO
meet unforeseen contingencies, the Legislature it.
self may come to be seized with disposition to in
duge in eztravagant appropriation to objects many
ofnhich may-and most probably would-be found
to conflict with the Constitution. A fancied expe-
diency is e'sv. ted abov, constitutional authority;
and reckless and Waste.uI extravaganza but too
certainly folowJ. TIE important power Of taxation
which, when exercised in its most restricted form,
is burden on labor and production, isresorted to,
under various pgetezts, for pup1ses having no atn
iy to the motives yvch dictated lis grant, and the
extravaganza of tie government stimulates nd-
vidua! extravaganza, until the spirit oil wild and
-regu!ateG speculation involves one and all in Its
unfortunate results. In view of such fatal conse-
qucnces. it ay be hid down as an axiom, founded
in moral and pol.iica truth Nat no greater taxes
SHOULD be,:aft'ad Tan are necessary for an eco
nom.cal administration Of lie government and that
whatever exists beyond, should be reduced or mod
flied. .'.i., I..a- -.f
This doctrine does In no way conflict with the ex-
ercse of sound discrimination IN the selection Of
the articles 10 be taxed, which due regard to tn e
public veal, woud at al times suggest TO tie Leg
slstive mind. Itieaves the range oi selection un-
defined; and such selection should always be mad e
with an eye to tfc great interests Of the country.
Composed as is the Unicn, ef seDai ...e and indie
pendent States, patriotic Legislature will not fail
in consulting the interests OF the parts, to adopt
such course as will be best calculated to advance
the harmony oi the whole; and thus ensure that
pernane8cy in the pviicy CT the Government with
out wich al elorls 10 advance the public prosper
ity are vain and iruitless This great and vitality
important tack rests with Congress; and the Execu
i've can do l,o more than recommend the general
principles which should govern in its execution.
refer you to ihe report of the Secretary of War,
for an exhibition of the condition of the army, and
recommend to you, as well worthy of your best con-
sderation, many of the suggestions it contains
The Secretary in no degree exasgerates the great
importance Of pressing forward, without delay, in
the work Of erecting and finishing the Notifications,
to which he particularly alludes. Much has been
done towards placing our cities and roadseads in
state security against the hazards of hostile attack
within the last four years. but considering the new
elements which have been, Of late years, employed
in the propelipg of ships, and the formidable nstru
ments of destruction which have been brought into
service, we cannot be too active or vgant in pre-
pairing and perfecting the means Of defence. re-
fer you to his report for full statement OF the
condition Of the Indian tribes within our urisdic
ton.
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