Iowa capitol reporter. [volume] (Iowa City, Iowa) 1841-1855, 1848-12-27
THE IOWA CAPITAL REPORTER

in the receipt, custody and disbursement
Of the public money, have continued to be
successful. Under this system, the pub
lie finances have carried through the for
eign war, involving the necessity of loans
and extraordinary expenditures, and re-
qliring distant transfer and disbursements
without embarrassment, and no loss has
occurred Of any Of the public money de-
/ posted under its provisions. Whilst il
has proved to be safe and useful to the
Government, its effects have been most
1 beneficial in the country. 1t has hasten
ed powerfully to secure an exemption
from that initiation and huctuating OF the
/ paper currency, so injurious, to domestic
industry, and indeed so uncertain in the
rewards of labor, and is believed to have
largely contributed to preserve the whole
country from a commercial CONFUSION.
such as often occurs under the bank de-
post system. In the year l847, there
was revulsion in the business Of Great
Britain of great extent end intensity,
which was followed by failures in that
kingdom unprecedented in number and
amount of losses. This is believed to be
the first instance when such disastrous
bankruptcies, occurring in a country with
| which we have such extensive trade and
| intercourse, in which we were but little
affected in our money market, and our bu-
siness and industry were still prosperous
ana progressive.
During the present year, nearly the
whole continent Of Europe has been con-
Hulsed by civil war and revolutions attel.
ded by numerous bankruptcies, and by an
unprecedented fall in their securities, and
an almost universal paralys is of commerce
and industry, and although our trade and
prices Of our products, must have been
somewhat unfavorably affected by these
causes, we have escaped revulsion our
money market is comparatively easy, and
public and private credit have advanced
and improved.
It's confidently believed, that we have
been saved from these effects by the salu-
tary operations of the Constitutional Trea-
sury. II is certain, that il the twenty
four millions OF specie, imported into the
country during the fiscal year ending On
the 3O,h Of June, ls47, had gone into the
banks, as TO great extent it must have
done, it would, in the absence of this sys-
tenn, have been made the basis of aug
merted bank paper, issued probably TO an
amount not less than sixty or seventy
millions of dollars, producing, as an inev-
table consequence Of an inflated currcn-
cy, extravagant prices for time, and wild
speculation, which must have been fol-
lowed, Oh the reilux 10 Europe, the sue
cecding year, Of so much Of that specie, by
the prostration ofthe business of the coun-
try, the suspension Of the banks, and most
extensive bankruptcies. Occurring, as
thus would have done, at a period when
considerable loans Of specie were requi-
red for disbursements, and when the
banks, the fiscal agents of the Govern
ment and the repositories Of its moneys,
would be suspended, the public credit
must have sunk, and many millions of
dollars as was the case during the war of
1917, must have been sacrificed, in dis
counts upon loans, and upon the depreci-
ated paper currency which the govern
nent would have been compelled to use
Under the oper ltions Of Constitution
al Treasury, not a dollar has been lost by
the depreciation of the currency. The
loans required to prosecute the war were
negotiated by the Secretary of the Treas
ury above par, and realizing a large pre-
MUM TO the Government. The restrain
ing effect of the system upon the tendcn-
cics TO excessive paper issues by the
banks, has saved tie Government from
heavy losses, and thousands of our bust
ness men from bankruptcy and ruin. The
system has been tested by the experience
OF the last two years, and it is the dictate
OF sound policy, that il should remain un.
disturbed. The notifications of the de-
tails Of this measure, involving the prin
ciplcs heretofore recommended are again
presented for yo"r favorable considcra-
ton.
In my message Of the 9th July last
transmitting 10 Congress the ratified trca.
ty Of peace with Mexico. recommended
the adoption of measures for the speedy
payment Of the public debt In submitting
the recommendation, | referred you 10 the
considerations presented in that message.
in its support The public debt, inclu-
ding that authorized TO be negotiated in
pursuance Of existing laws, and including
Treasury notes, amounted al that time TO
500, IT'S, $50 Al.
Funded stock of the United States.
amounting TO about half million of dol
lars, has been purchased, as authorized
by law, since that period, and the public
debt has thus been reduced, the details of
which will be presented in the report of
the Secretary OF the Treasury.
The estimate Of expenditures for the
next fiscal year, presented by the Secre-
tary of the Treasury, it is believed, will
be ample for all necessary purposes
II the appropriation made by Congress
shall not exceed the amount cetimated. the
means in the Treasury will be sufficient
to deiray all the expenses of the govern
ment; to pay off The next instalment of
$4,000, 900 to Mexico, which falls due on
the 5oth of May next, and still consid-
cradle surplus will remain, which should
be applied to further purchases Of the
public stock and reduction Of tho dabt