The Middlebury galaxy. [volume] (Middlebury, Vt.) 1848-1850, 1848-03-21
SPEECH OF
MR.. PHELPS.
THE WAR & THE PUBLIC FINANCES.
OF VERMONT. ON

| THUTsD DAY, January 21.-Ihe Senate resumed
the consideration of the bill to raise for limited
time, an additional military force.
Mr.. PHELPS said, it is not my purpose, sir, in
addressing the Senate at this time, to 90 into an
inquiry as to the origin of this war-as tots mer-
its or dcmerits-nor, sir, to inquire where the
blame rests provided there be blame in its COM
mencement. The important question now before
US is first how shall this war be prosecuted sue
cessfully while it lasts and, above all, how can
it be terminated! When these questions are dis
posed of and the country restored to a state Of
peace, We may then perhaps amuse ourselves with
| the inquiry who has been in fault In looking
at this question, Mr.. President, as it now pre-
sents itself 70 US as practical question, the po-
sition in which the Senate has been pleased to
place me has very naturally drawn my attention
to the financial aspect of the question, and have
esteemed ii TO be my duty, after having devoted
some little attention TO the subject-though not
indeed so much as | should desire to do-Io lay
before the Senate the result of my Investigations
| am aware, sir, that there is no amusement TO be
found in this inquiry it will be, perhaps, not very
interesting but, sir, it is inquiry which is not
to be avoided. 1t is matter of business and a
matter of necessity.
Now, sir, if this war is to be prosecuted further
and such seems 10 be the fact as yet-a very
important question arises, what effect will it
have on the financial and commercial interests of
the country! How are the means to he obtained
for its prosecution And how are these means
to be Obtained consistently with the prosperity of
the country at large Sir in determining this
question, the first inquiry will be, what has been
lis effect thus far? And when we have ascer-
tanned that. VIC may perhaps be better able 10
Judge what will be its effect hereafter. Sir, from
the best computation have been able TO make,
the Treasury has fallen into arrears within the
past two yeas, or nearly two vcars-while this
war has already lasted-to an extent not much, If
anything, short of seventy millions of dollars.
Yes, sir, from the best computation which l am
able to make, the revenues of this country have
fallen short Of its expenditures for the past two
years TO an amount not much, if any, less than
seventy millions Of dollars. We'll, sir, will sub
NIT to the Senate certain estimates, which will
cOnclusively prove this result and shall endeav-
or 10 show to the Senate, il they will give me
their attention. from data in my possession, that
this result must inevitably be produced.
Sir. in the first place, at the commencement of
the war, rather on the first of July. 1876 after
the war had been for some six weeks in existence
there was Enthusiastically of the expenditures
during the short period the war had then lasted
balance in the Treasury Of upwards of nine
millions of dollars. find, from the several re-
ports Of the Secretary of the Treasury that the
Government has borrowed. in Treasury notes and
stocks, issued during the fiscal year ending Goth
June, lS47 nearly twenty-siX millions of dollars ::
and that during the current fiscal year they have
borrowed in addition TO this, six millions two
hundred and eishty-ive thousand dollars. The
Secretary of the Treasury tells lis that at the
close ofthe current fiscal wear there will be de-
fciencv in the Treasury ofnearlv sixteen millions
take the original report of the Secretary, though
[ am aware there has been 4 recent correction of
that report. These sumS-the balance i'll the
Treasury lst July, l946-the amounts borrowed
during the two succeeding years, and the def
cheney anticipated at the close ofthe current fiscal
year, as estimated by the Secretary will amount
10 tifty-six millions eight hundred and twenty
thousand dollars. But this is not all. AT the
very commencement of this session VIC were in
formed by the Secretary that there was def
cheney ofappropriation for the current year of
little more than ten millions of dollars This ad-
iition to ;he previous result gives the amount of
about sixty seven millions rs the deficiency of
revenue below the amount of orr expenditures
for the last Two years. From this, sir, have de-
Quoted six millions six hundred and eightv-one
thousand dollars, because it is suggested
upon what evidence / know not cXactly-that
upon revising the estimates submitted TO us it
was ascertained that there was an error of nearly
seven millions, there being that amount in the
Treasury which is not represented in the state
ment communicated to us. Deducting, then, this
sum, which is reported to be a little short of
seven millions, but calling il six millions eight
hundred and eighty-one thousand, the result is
that there Is deficiency of sixty millions for the
two years. Or at the ofthirty millions year.
But Sir am very far from being satisfied with
the calculations of the Secretary. To satisfy my
own Judgment | will add eight millions, being the
amount 10 which, as | believe the Secretary has
over-estimated the public revenue This gives US
the amount Of sXty-eight millions being the
deficiency which has already accrued. or at the
rate OF tlilriy-four millions year. For the com
ing year ending June, ls49, the Secretary has es-
timated the deficiency at S2OOOOO00. have OBJ
tanned this result by deducting the estimated de-
iciency for the current wear from the Secretary
estimate OF the deficiency on the 30th June, 1919
Well sir, without going further, without at pres
ent lnqurIng INTO the accuracy of his estimates
for the coming yearly taking the deficiency a.
estimated by himself, We have for the three wears
ending June so, 1919. the sum of lightweight
millions as the deficiency of our means below
our expenditures. This Mr.. President, is n cOn-
else statement of our financial experience thus
far, as viii appear by the following statements.
And five add 10 this the sum of S9,OOOO00,
which shall endeavor 10 show the Senate is an
over-es;imate of Of the revenue for the coming
year, and the sum of 100000 for under-esti-
mate Of expenditure for that year, the deficiency
for three wears, ending june So lS49 will be
SI04,O000O0, or about thirty-tive millions
year
Statement of'lte crcess Of expenditure orer incoms
Ior tro years from .Jay l, '46, to lane so, As.
Balance in the Treasury. July l, 1876 S9I26,439
Avails Of Treasury notes and loans,
IS4G-'7 25.679,l99
Avails Treasury notes and loans,
Is47-'s 6,2s5, 294
Estimated deficiency in the Treasury
July !, 1913, l5,l29,lI4
s56,s2OO46
Add appropriations asked for by the
Secretary, not included in his es-
innate Of expenditure, I0O61, s44
Total by Secretarys estimates, sec ISL $50
Deduct the amount of error discov.
cred at the Department, say 6,ssl $50
Leaves the true deficiency by Secreta--
rvs estimate, s6O,OOO,OOO
Add for over-estimate of revenue for
current year, 100000
True deficiency, s6S,OOOOOO
Or thirty-fou millions per year, for