Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1848-12-13


our manufacturing interest is the effect OF .
foreign causes. and is far less severe than
has prevailed on all former occasions.
Ii is believed that. looking TO the great
aggregate of ali our interests, the whole
country was never more prosperous than
at the present period. and never more adj
vancing in wealth and population. Nei-
tI,cr the foreign war in which we have been
involved, nor the loans which have absorb
ed so large portion OF our capitai. nor
the commercial reyulsion in Great Britain
in l347-nor the paralysis Of credit and
commerce throughout Europe in l3l3.
have affected injuriously o any consider
able extent. any of the great interests o.
the country. or arrested our ard march
10 greatness. wealth and power.
Had the disturbances in Europe not oc-
CURED, our commerce would undoubtedly
have been still more extended. ard would
have added still more to the natural weal.h
and public prosperity. But. notwthstand-
Ing these Disturbances, the operation of
the revenue system established by the
tariff Of 1916. has been generally beneti-
cal TO the country. but no change in its
provisions is demanded by the public po-
Icy, and none is recommended.
The operations Of the Constitutional
Treasury established by the Act Of the 9th
August. 1876. III the receipt. custody. and
disbursement of the public money. have
continued TO be successful. Under this
system the public finances have carried
through Il foreign war. involving the me-
cessty of loans, and extraordinary ex-
penditures. and requiring distant transfers
and disbursements, without embarrass-
ment, and no loss has occurred Of any of
the public money deposited under its pro-
visions. Whilst it has proved 10 be safe
and useful to the government. its effects
have been most beneficial on the country
1t has tended powerfully 10 secure an ex
empton from that initiation, and huctua-
ton OF the paper currency so injurious 10
domestic industry, and rendering so UNI
certain the rewards of labor. and is be-
lieved to have largely contributed 10 pre-
serve the whole country from a CONNER
clal revulsion, such as often recurs under
the bank deposite system. In the year
13I7 there was a revolution in the business
of Great Britain OF great extent and in
tcnsitv. which was followed by failures III
that kingdom. unprecedented in number
and amount Of losses. This is believed to
be the first Instance, when such disaster
Gus bankruptcies occurring in a country
with which we have such an extensive
trade or currency. we remained but little
effected i'll Otr money market. and our
business and industry were still prosper
Gus and progressive.
During the present year. nearly the
whole continent Of Europe has been con-
vulsed by civil war, and revolutions, at
tended by numerous bankruptcies. by an
unprecedented fall in their public securi-
ties, and an almo,t universal paralysis of
commerce and industry, and yet although
our trade, and the prices of our products
must have been somewhat unfa,orabiy aE
fectcd by these causes. we have escaped a
revulsion: our money market is Compare
lively eesy. and public and private credit
have advanced and improved.
1t is confidently believed that we have
been saved from their effect by the salu-
tary operations of the constitutional trca-
sury. 1t is certain that if the S24,OOO.-
900 of specie imported into the country
during the fiscal year ending on the 3oth
Jane. 1917, had gone into the banks. as to
a great extent it must have done. it would
in the absence of this system. have been
made the basis of augmented bank paper.
issued probabvto an amount not less til an
an inevitable consequence of an inflated
currency, cNtravagant prices for a time.
and wild speculation, which must have
been followed on the reflux TO Europe. the
succeeding year. if so much of that specie.
by the prostration of the business Of the
country, the suspension of the banks. and
most extensive bankruptcies. Occurring
as this would have done at period when
IL. Ia,
ed for distant disbursement. and when the
banks. the fiscal agents of the governments
and the repositories Of the public money.
were suspended. the public credit must
have sunk, and many millions of dollars.
as was the case during the war of 1912.
must have been sacrificed in discounts
upon loans, and upon the deprecated pa
per currency, which the government would
have been compelled to use.
Under the operations Of the Constitu-
tional Treasury not a dollar has been lost
by the depreciation of the currency.
The loans required TO prosecute the
war with Mexico. were negotiated by the
Secretary of the Treasury. above par
realizing large premium to the govern
ment. The restraining effect of the sys.
tenn upon the tendencies to excessive paper
issues by the banks. has saved the govern
ment form heavy losses. and thousands of
our business men from bankruptcy and
ruin.-Thc system. has been tested by
the experience of the last two years. and
il is the dictate of sound policy that it
should remain undisturbed The modfi-
cations of the details of this measure. in
volving the principles heretofore recon-
mended. are again recommended TO your
favorable consideration.
In my message of the 9th July last
transmitting 10 Congress the ratified treaty
of peace with Mexico, | recommended the
adoption of measures for the speedy pay
ment Of the public dcb.. in reiteratng that
recommendation. refer you to the consi-
dera;ions presented in that message in its
support. The public debt. including that
authorized 10 be negotiated in pursuance