Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1846-02-21


the annual revenue, and bear but small proportion TO il
thousand dollars in silver any paper currency,
sufficient effect in year fifty payments Of the
amount.
Although the kept in circulation may uctuate
cordng circumstances the fundamental principle s thai the
issue OF such is anticipation OF the revenue which,
after has reached the maximum that may be kept crcula
ton without being deprecated, be increased Be
the amount ten twenty millions, the anticipation may be
continued but not renewed il is not annual but
the whole amount Of which exceed that which
may be kept in circulation The operation consists in ressu
ing annually tho which paid of in the year. When
owing to incidental fluctuations the amount to be
deemed by the Treasury exceeds that which may he essued
the difference must be Immediately funded at the market price
of the notes. to keep them always at par, little
above par
II evident that if the direct tax and internal duties laid
in August, 1913, had been imposed in July, 1872 and if
the of January 1875 which increased both had
enacted in August 1919, there would have been addition
Of least eight millions the Of the years 1919 and
lsl3 the Treasury which had become due would have
been paid public credit would have been maintained and the
amount Of war loans lessened
The principal Of the fall of public stocks during
war; and of the consequent necessity Of borrowing dearer
TERMS Of confidence in Government and the large
amount of stocks thrown in the market beyond the natural de-
nand for them. The effect of this last remarkably
illustrated by the fluctuations in the price Of the stocks Of
Great Britain where it does not appear there want
of confidence in the ability and fidelity of Government in full
filling its engagements The British three per now,
and before the Of American independence, and be-
fore those which had their origin in the French revolution,
par par They tell gradually during the Of In
dependence, and low 81 in February, 1882 The
long with France attended with the result and
the three per cents had fallen to SIS in July, 1872 Notwh
standing the deranged of the finances of the United
States in 1884, the American stocks had not fallen in the
proportion. Such great depreciation the result of the long
continuance Of No what would have been
its progress had the last with England continued much
longer.
There not, however, at that tme least in America
any Of confidence in the Government no one doubted
that would ultimately faithfully discharge all its engage
ments. Although the General Government in way
sposbe for the of any Of the individual States
nevertheless certain that the credit of the Union has been
ured abroad by the failure of several Of the States fulfil their
engagements and that expectation be entertained Of be
ing able to borrow money in Europe II is not less that
the Administration will to eno-he confidence of Anne
rcan capitalists if the has recommended should
be adopted and productive of No can doubt that
that event should take place. the Americans will fight
defence Of their country, and with greater and
than the people of the Western States During the last
their militia and volunteers focked either the Lakes to
New Orleans, wherever there danger; did they
refuse take part offensive operations and to serve with
out the limits of the United States But cannot either
there elsewhere afford render gatutous services Whe
ther regulars volunteers militia, they be fed cloth
ed, transported, supplied with and artillery, and paid
There is yet but very little active circulating capital the
States they cannot lend; they, the contrary
to borrow money This be obtained the shape oans
only from the capitalists Of the Atlantic States.
to public documents will show that all the loans Of the
last war were obtained in that quarter. $500
Men of property are perhaps generally more timd than
Others and certainly all the quiet people, amongst whom the
ultimately distributed remarkably cautious.
Prudent capitalists who do speculate, and who consider
public stocks only convenient and safe investments will not
advance money to Government long asst controlled by
men whom they consider reckless and entertaining
her lax opinions respecting public credit Yet money will
be obtained but much dearer than if public conf
dence unimpaired. There will always be found bold
spectators who will advaacc it at apremum enhanced by
the want of competition, and propoonate to the risks they
may be supposed to incur Independent of this is most
certain that the rate of interest which loans may obtain
ed will always be ncrcased proportion their magnitude
and that the only ways by which these difficulties may be- if
not obvated at least lcssened perfect fidelity in fulfilling
the engagements of Government an economical that is TO
say sknl application Of the the most import
ant Objects postponing all which are Immediately
wanted Of inferior real utility, and increase Of the
amount of revenue derived from taxation This has thedou-
Bile advantage Of diminishing the be borrowed and
Of inspiring confidence in the money LENDERS In all cases
direct loans will be preferable and prove cheaper than over
issues Of Treasury notes.
The act of July, 1912, which doubled the duties on i'm.
poaions afforded which, account Of the high
this time Of those duies be resorted TO-
Duties may, however be levied the importation Of tea and
Coffee and perhaps other articles duty free Other
notifications may be found useful but may be difficult TO
ascertain without any regard protection what are the
rates Of duties which should be imposed time Of war on
the various imported articles, in order render the revenue
derived from that source as productive possible.
II must also be observed that it, account of the credit
then allowed for the payment of duties mportaons the
Treasury had when the of 1912 commenced resource
the revenue previously accrued but yet collected which
does not exist the other hand tho United States were
then still ncumbered with considerable portion Of the Revo
utonary debt and the payment account OF its principal
and interest," amounted during The years 1872 1919 and s4
to about eleven millions Of dollars whilst tire annual interest
on the now existing debt is less than one million.
The direct tax Of the year 1915 amounted 10 six millions
OF dollars and the which accrued during the same
year on the aggregate of the internal duties imposed at the