The northern galaxy. [volume] (Middlebury, Vt.) 1844-1848, 1844-12-11

teu tneif return 10 Inc treasury, yet thew re-
main outstanding; aifording great facilities to
commerce, and establishing the fact that. nm
der well regulated system of finance n.
Government has resources within itself. hi
render 1t independent in time Of need. nor a.
" Of private loans, but also Of bank lacil;,;a.
The only remaining subject Of rAgrsr !,
that the remaining stpcks of the GOrarnp,s,,,
do not fall due at an earlier day since H..
redemption would be entirely within ia
troll. As it is, 1t may be ell worthy the o.
slderaiiOn of Congress. whether tie law -
tablishing the sinking fund-unter the orsr
alton Of which the debts of the Reyoln,;o.
and last war with Great Britain were 10 a
great extent, inguished-shOuld LOT. with
proper notifications. $50 as 10 prevent AN
accumulation of surpusscs, aud limited in A.
mount 10 specific sum- be re-enacted-
Such provision, which would authorize the
Government to go into the market for FUR
chase OF It's own stock, on fair terms, would
serve 10 maintain its credit AT tue highest
point, and prevent. to great extent. those
fluctuations IN the price Of its securities which
might, under other circumstances, affect lis
credit. No apprehension Of Ills sort is. at
this moment entertained; since the stocks of
the Governments which but two years ago
were offered for sale TO capitalists, at home
and abroad al depreciation, AMI could find
no purchasers, are now greatly above par in
the hands OF the holiers; but wise and pru-
dent forecast admoniShes us to place beyond
the reach OF contingency the public credit.
II must also be d matter of unmIEgled
qualification, that under the existing fini-
cal system resting upon the act Of l779
and the resolution of lSI6.-the curren-
cy of the country has attained state OF
perfect soundness: and the rates OF ex-
change between differant parts Of the u
Mon, which, in 1871, denoted, by their
enormous amount, the great depreciation,
and in fact worthlessness of the currency
liz most Of the states-are now reduced
to a little. more than the mere expense Of
transporting specie from place 10 place,
and the risk Incidental to the operation,
In a new country like that of the United
States-where so many inducements are
held out for speculation-the repositories
Of the surplus revenue, consisting Of
Banks of any description, when it reach.
es any considerable amount, requires the
closest vigilance on the part of the Gov.
ernments All banking institutions, un-
der whatever denomination they may
pass, are governed by an almost exclu-
sive regard to the interests Of the stock
holders. That interest consists in the
argument of profits, in the form Of divi-
bends, and large surplus revenue en-
trusted to their custody is but too apt TO
lead to excessive loans aud to ex,rava-
gan,ly large issues of paper. As nes-
essary consequence, prices are nominally
increased, and the speculative mania ev>
cry where seizes upon the public mind.
A ficticious state of prosperity for
season exists; and, in the language Of the
day money becomes plenty. Contracts
are entered into by individuals, resting
on this unsu bstantiaI state Of things, but
The delusion speedily passes away, and
the country is overrun by all indebted
ness so wcighty as to oreruhelm many,
and to visit every department Of industry
with great aud ruinous embarrassment.
The greatest vigilance becomes necessary
on the part of the Government TO guard
against this stale Of things. The dePcs
itors must be given distinctly TO under
stand that the favors Of the Government
will be altogether withdrawn. or subsian-
italy diminished if lis revenues shall he
regarded as additions to their banking
CAPITAL, or as the foundation Of an cular-
ged circulation. The Government,
through its revenue, has, at all times an
important part to perform in connexioH
with the currency, and it greatly depends
upon its vigilance and care whether tie
country be involved in embarrasren.s
similar to those which it has had reccnlly
to encounter; or, aided by the action ci
the Treasury, shall be preserved in
sound ond healthy condition.
The dangers To be guarded against
are greatly augmented by too large sur
plus soi revenue When that surplus
greatly exceeds in amount what shall be
required by wise and prudent forecast
10 meet unforeseen contingencies, The
Legislature itself may come TO be seized
with disposition to indulge in extraTi
giant appropriations to objects, many Ct
which may-and most probably would
be found to conflict with the Constitution
A iancied expediency is elevated abo'e
Constitutional authority; and reckless
and wasteful extravaganza but too ceriain'
ly follows. The important power Of ta'-
alton, which, when exercised in its met
restricted form, is burden on labor and
production, is resorled to, under various
pretexts. for purposes having no affinity
to the motives which dictated its grant,
and the extravaganza ofgoyernment sum
ulares individual extravaganza, until the
spirit of a wild and ill-reguIated specuIa'
ton, involves one and all in its unl'riu'
nate results In view of such fatal coll