The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-12-23
NEW YORK HERALD.
The Finances OF the Government.

The FINANCES OF the government.
Considerable anxiety exists in financial circles,
in relation to tho movements of Congress re-
garding the finances of the government, and the
course about being pursued upon the subjso of
specie payments, under the Independent Trea-
sury acr. There is only one way of extricating
the government treasury from the embarrass-
ments under which it now labors, and from those
it must experience in carrying on the war, and in
raising another loan There were more difficult
ties realized in negotiating the recent loan of only
Ave millions ofdollars, than most people aware
of; and it is reported in Wall street, that portion
OF the loan was paid in in treasury notes. This,
with the rate at which the bids were made, and
the depreciation since, in the market value of the
new stock, will operate very unfavorably upon
another attempt to raise money, and we have
very great fears that another attempt will not re-
suit SO favorably as the FIRST
Judging from the rapid falling off in the 90.
vernment deposits in this city, and the limited
revenue from customs, compared with that antici-
pated, nnce the new tariff went into operation,
there must soon be demand from the Treasury
Department for more money-a demand which
will prove to be, under existing circumstances,
difficult TO satisfy. The cash receipts at the Gus
tom house of this district from the lst to the 18th
aRains, S74l, l66 for the corresponding period ia
1sis-showing an increase this year of only Sls,-
$50 This does not look very we'll 1t does not
look as though the resources of the government
from customs, under the operation of the now ia
riff, were likely to be large enough to meet even
the ordinary expenses, to say nothing about the
extraordinary expenditures attending war. At
this rate, the surplus revenue will soon disappear.
Mo- a i'm al, b~xr. bao,
reduced 10 very small sum- The amount in al
the repositories at this point, including the Asss
tant Treasurer, does not exceed one million of
dollars; and where the outlay is 80 immense and
the income 50 mted, the bottom of the govern
ment money bags will soon be resched.
The most 9portant question now before Con-
gress IS, how to provide ways and means for car
rying on the government in all its departments.
Where is the money coming from9 Who will
lend the nineteen or twenty. three millions requis-
its 10 meet the expenditures, and what prebabili-
tyis there of twenty-eight or thirty millions of
dollars being received, during the present fiscal
year, from customs? These are grave and i'm.
portant questions, and their satisfactory solution
would be doing the President and the Secretary
ofthe Treasury very great favor.
So far are able to help them, we will.
mast be postponed ~.nI the expiration of the
There is no other alternative. 1t may be bitter
pill for the party to swallow, but it must be taken
The original Independent Treasury bill, that is
the act passed at the close of Mr.. Van Burens
administration, only required one-thiId OF the
eeipts and expenditures of the government to be
made in specie at the end of the first year; from
the end of the first to the end of the second year,
rda mr. n ffort md IF tha
the whole; giving two years for the full enforce
nsnt of the specie clause. That act passed, and
went into operation, when we were at peace
with the whole world, and was much more favor
able than the act passed at the last session. When
the bill, which is soon to be enforced, was before
Congress, several propositions were made to ex-
tend the time for the commencement of the
specie payments, but the most radical principles
prevailed, and it was so framed that it requires
full payments in specie, on and after the LIST of
January, 1S47.
The impression which exists that the duties on
imports must, on and after the LIST proximo, be
all paid in specie or Treasury notes, has a very
nnfavorable influence upon the movements of
our importers and tends very materially to
restrict their orders for the spring trade. This,
however, would be of very little consequence, if
the government was not likely to be much press.
cd for funds, and the. vital importance of making
every source ef revenue rs productive as posi-
BILE; but il this source of revenue is reduced it will
not only seriously restrict the public income, but
will have tendency to njure the credit of the go
vernment in the minds Of capitalists, and throw
another obstacle in the way of raising another
loan.
The limited receipts from customs since the
1n OF December, cannot be considered any crite-
rion OF the practical operation of the new tariff.
as the position of other things affecting the com.
merce OF the country, is not particularly favorable
for the enforcement OF that act 1t necessary that
our internal affairs should be in the most prospe.
rous condition for fair operation of the new ia
riff act; and however perfect the act may be, il
requires other favorable things ensure its sue
cess. We have repeatedly remarked, that restrict
ed currency has more influence upon our i'm porta-
tions than the simple rate of duy enforced under
any sarif act and we do not anticipate a very
large import trade, so long as the money market
isembarrassed by the introduction of any new
feature in our financial system. So far as we are
individually concerned, as matter of personal
Satisfaction in testing any theory we have per-
fected, II would be a source of qualification to see
the Independent Treasury Act thoroug ly and
promptly enforced, in connection with the ad va
lorem tariff. We would like these measures fair.
ly tested. They are adapted to each other, and
must rise or fall together. A high tariff would
not operate with specie currency, that
10, there would be very limited revenue from
customs, and the Treasury would soon go beg.
g'ng for money to carry on the Government.
The commercial system of the United States is
now, or viii be after the first OF January lS7 esta-
blshed on proper basis. A low tariff and a
specie currency give us all the protection and
All inc revenue we shall require in times of peace,
bur not in time OF war; and it will, therefore,
become necessary to make some temporary mo.
dincations to meet the exgencies growing out of
the existing state of our foreign relations.