Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1844-12-12

public credit.
|, II mus, also be a matter Of unmiDg led
qualification, that, uBder the existing
financial sy,tem-iest.ng upon ihe ac' oi
1899, and the resolution Of l8l6-the
currency of The country has attained Il
| state Of perfect sounlEess aud the rates
OF exchange between different parts OF
the Union, which, in l84l, denoted, by
their eEormous amount, the great de1re'
ciation, ard 10 fact wOrihessness OF the
| currency in most of the States--are now
reduced 10 little more than the mere ex-
pcnse Of Transporting specie from place
! TO place, aud the risk incident to the
| operation. In new country like that
! Of the United Statcs-where so many
inducements are held out for speculation
! - the repositories of the surplus reve-
hue, consisting Of Banks Of any dcscr'p-
ton, when it reaches any considerable
amount, quire the closest vigilance on
the part OF tie government. All bank
ing institutions, under whatever denom-
nation they may pass, are governed by
an almost exclusive regard to the inter-
est Of the stockholders. That interest
consists in The augmentation OF profits, in
the form of dividends, and large sur
plus revenue entrusted to their custody is
but too apt to lead to excessive loans
and to extravagan,ly large issues Of pa
per- 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 be-
comes plenty. Contracts are entered
into by individuals, resting on this un-
substantial state OF things, but the deln-
sion speedily passes away, and the coun-
iry is overrun with an Indebtedness 50
wcighty a. To overwbelm many, and 70
visi, 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 fa2ors ofthc government will be
altoC Withdrawn, or substantially
diminished, if its revenues shall be re-
garded as additions to their banking
capital, or as The foundation of an en-.
larged circulation. The government,
through its revenue has, at all times, on
important part TO perform in conneXion
with the currency and it greatly de-
pcnds upon its viz lance and carc,whcth-
er the country lie involved in cmbarrass-
mcnts similar TO those which it has baG
recently to encounter ; or, aided by the
action Of the Treasury, shall be prcscr"-
cd in a sound and healthy condition.
The dangers to be guarded against,
are greatly augmented by too large n
surplus of revenue. When that surplus
greatly exceeds in am0 ant what shall he
required by wise and prudent forecast
TO meet unforeseen contingencies, the
Leg lsature itself may come TO be seized
with disposition TO indulge in extrava-
CANT appropriations TO objects, many OF
which may and most probably would
be found to conflict with the constitution,
\ fancied eXpedioncy is elevated above
constitutional authority and a rcck less
and wasteful extravaganza but too GER
tainly follows. The important power OF
taxation, which, when exercised in liz
most restricted form, is burden on labor
and production, is rosoriod to, under va
rious pretexts, for purposes, having no
affinity To- the motives walch dictated its
grant, and the eXtravag ancc OF Govern
ment stimulates individual extravaganza,
until the spirit Of a wild aud i'll regulated
speculation, involves one and all in its
unfortunate results. In view of such ia
tai sequences, i; may be laid down as
an axiom, founded in moral S political
truth, that no greater taxes should be
imposed than are necessary for an eco
nomical administration Of the Govern
ment and that whatever exists beyond,
should be reduced or modified. This
doctrine does IL no way conflict with the
exercise of sound Discrimination in the
selection Of ihe articles to be taxed,
which due regard to the public veal
would at all times suggest to the Lceis-
lativo mind. 1t leaves the range Of Sc
lection underlined and such selection
should always be made with an eye to,
the great interests OF the country. Com
posed as is the Union, of sepera:c and
independent States, patriotic Lcgisla-
ture will not fail in consulting the inter-
css oi the parts, to adopt such course az
viii be best calculated to advance the
harmony o! The whole and thus ensure
that permancncy in the policy Of the
Government without which all efforts 10
advance the public prosperity are vain
aud frulless. This grcut aud viiaIly
mportan, task rests with Congress and
the Executive can do no more than re-
commend the general prime pies which
should govern in its execution.
l refer you 10 the report Ct The Sccrc-
tary Of War, for any exhibition of the
army and recommend to you, as well
worthy your best consideration, many Of
the suggestions il contains. The Sccre-,
tary in no degree oXaggeraies the groat
Importance OF pressing forward, without
delay, in the work Of erecting aud finish
ing the Qualifications, 10 which he par,l-
cuarly aludcs Much has been done
towards placing our cities and roadsteads
IN state Of security against tie hazards
OF hostile attack, within the last four
years but considering tho new elements
which have been, Of late years, employ
cd III the propeIing Of ships, and the
formidable implements q! destruction
which have been brought into service,
We cannot be too active or vigilant in
preparing and periecing the means Of
defence. ] refer you also, To his report
for n full statement oG the condition OF tue
lnhInn Ilihns miIhin nlr ilri II IrIinn -