The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1848-12-16
st. JOhnsbury, VT December Is, l84S,

policy, and none is recommended.
The operations of the constitutional treasur-
v established by the act OF the 9th of August,
! 1876, in the receipt, custody, and disburse-
ment of the public money, have continued to
be successful Under this system the public
finances have been carried through n foreign
war, involving the necessity of loans and eX-
traordinary expenditures, and requiring distant
| transfers and disbursements, without embnr-
Tassment, and no loss has occurred of any of
the public money deposited under its provis'
| ions.
While it has proved 20 DO safe and useful TO
! the government, its effects have been most
beneficial upon the business of the country
| II has tended powerfully to secure an eXemp-
| ton from that initiation and fluctuution of the
| paper currency so injurious TO domestic indus
| try, and rendering so uncertain the rewards
Of labor, and il is believed has largely contrib
uted To preserve the whole country from
serious commercial revulson, such as often
occurred under the bank deposit syste m. In
! the year lSi7 there was reVulsion in the bus
mess of Great Britain of great extent and in
| tensity, which.was followed by failures in that
| kingdom unprecedented i'm the number and a
mount of losses. This is believed to be the
| first instance when such disastrous bankrupt
cics, occurring in Il country with which we
have such extensive commerce, produced little
or no Injurious effect upon our trade or cur
| rency. We remained but little affected in our
money market, and our business and industry
were still prosperous and progressive.
During the present year, nearly the whole
continent Of Europe has been convulsed by
civil war and revolutions, attended by numer-
Gus bankruptcies, by an unprecedented fall IN
| their public securities, and an almost universal
paralysis Of commerce and industry; and yet,
although our trade and the prices of our pro.
ducts must have been somewhat unfavorably
| affected by these causes, we have escaped
revusion, our money market is comparatively
easy, and public and private credit have ad-
vanced and improved.
It is confidently believed that we have been
saved from their effect by the s;luiary opera
ton ol'the constitutional treasury. 1t is Ger
tain, that if the twenty four millions of spe-
Gle imported into the country during the fis-
cal year ending on the ihirtielh ofJune, 1917,
had gone into the banks, MS to great extent
il must have done, it would in the absence of
this system, have been made the basis of aug
mented bank paper issues, probably TO an u
mount not less Than sixty or seventy millions
OF dollars, producing, as All inevitable conse-
qncuce of m inflated currency, cXtravagaut
prices for n time, aud wild speculation, which
must have been followed, on the ref1uX TO
Europe, the succeeding year, of so much of
that specie, by tic prostration ofthe business
of the country, the suspension of the banks,
and most extensive bankruptcies. Occurring,
as this would have done, at period when
the country WINS engaged in n foreign war:
when considerable loans ofspecie were re-
qured for distant disbursements, and when
the banks, the fiscal agents ofthe govern
rnent, and the repositories gifts money were
suspended, and the public credit must have
sunk and many millions ofdolars as was the
during the war of 1912, must have been
sacrificed in discounts upon loans, and upon
the deprecated paper currency which the
government would have been compelled 10
use.
Under the operations of the constitutional
treasury, not dollar has been lost by the de-
probation of the currency. The loans re-
quired to prosecute the war with Mexico
were negotiated by the Secretary of the
treasury above par,realizing large premium
to the government. The retraining effect of
the system upon the tendencies 10 excessive
paper issues by banks has saved the govern
ment from heavy losses, and thousands of
our business men from bankruptcy and ruin
The wisdom of the system has been tested,
by the experience of the last two years; aud
il is the dictate ofsound experienced an sound
policy that il should remain undisturbed. The
notifications in some Of the details of this
measure, involving none ofits essential prin-
cipies, heretofore recommended, are again
presented for your favorable consideration.
In my message ofthe 9th of July last, trans
hitting to Congress the ratified treaty of
peace with Mexico, | recommended the a.
doption Of measures for the speedy payment
of the public debt. Including that authoriz-
ed to be negotiated, in pursuance of existing
laws, and including treasury notes, amounted
at that time TO 5,77S, 450,41.
Funded stock OF the United States,amoun-
ting to about half n million of dollars, Inns
been purchased, as authorized by law, since
that period, and the public debt has thus been
reduced; the details of which will be presen
ted in the annual reuort of the Secretary of
the Treasury.
The estimates ofexpenditurcs for the next
fiscal year, submitted by the Secretary of the
Treasury, it is believed will be ample for all
necessary purposes. If the appropriations
made by Congress shall not exceed the a
mount estimated, the means in the treasury
will be sufficient to defrny all the eXpenses
of the governmental pay off the next INSTALL
ment of three millions of dollars to Mexico,
which will fall due on the thirtieth of May
next; and still considerable surplus will re-
main, which should be applied TO tho farther
purchase ofthe public stock, and the reduc-
| ton of the debt Should enlarged appropri-
atoms he made, the necessary consequence
will he 10 postpone the payment ofthe debt.
| Though our debt, as compared with that of
most other nations is small it is our true pol
icy, and in harmony with the genius of our
| institutions. that we should present to the
world the rare spectacle OLA great republic,
possessing vast resources aud wealth, wholly
exempt from public indebtedness. This
would add still more to our strength, and
give to us still more commanding position
among the nations of tho earth
! The public expenditures should DC econom-
! ical and he confined TO such necessary objects
as are clearly within the powers of Congress
All such as nre not absolutely denauded
should be postponed, and the payment OF the