The Middlebury galaxy. [volume] (Middlebury, Vt.) 1848-1850, 1848-03-28

of 5ollars,th ssns being in the Treasury, but
| not included III, his esti~ste Of means-aNl
consequently that hrs estimate OF d~efeieA~y
| should have been less by that sum. there
Ehore deduct the amount from the above sessas,
which leaves the deficiency, on the 30th June,
1919. AZ the sum Of SOS. q 1000; and in this
There is no'essiihare foF the provisional forced
twenty thousand volunteers contemplated 10 10
raised.
This may appear a very large estimate, but
it Is Justified by pas; experience. stated TO
the Senate, in the ouiset Of my remarks; thas
1.-THE excess Vi expenditure hitherto has been
from thirty to thiriy-fve millions a year-arri-
wing AZ the same conclusion as the Senator
from Rhode Island, although by a aiserent
proces. If uch hssbces te 6rhciency here
%iofore, what is it to be hereafter? You pro-
! pose a more extensive plan Of operations an
increase Of your standing army by ten thous-
and men, and a provisional force of twenty
thousand men.
Sir, you kars thus ~ carried on this war
under fhc most favorable cirrumstances-Iw as
about to say, with the espe-ial blessin" OF Prov
idcnce- Had it not been for the peculiar state
Of things in Europe, calling to an nnprecedcn-
ted extent for our productions, and pouring in
20 this country an abundance Of precious met
ais, AMI tins furnishing IN antidote TO the ex-
hiu>:ion Of vour Treasury asrI Of tile currency
by your foreign expenditure under the opera
lion of the Sub-treasury, this war would have
ceased lon. ago for want OF the means to pros
ccutc it. We have BY this drain of the pre-
rious metals, brought England 10 the verge Of
bankruptcy, the Bank Of England to the brink
nf suspension. and thus ~re1!err,I them tributary
m fhs- tDfnrfun.t Mas Tyrf 81 .t.fn a tbtnuS
IS changed, the specie is rapidly returning, the
commercial tide Is chhing. commercial enter
prise stagnatin., and the currency il in Il rom
'iition OF rapid curtailmcnt You have before
YOU the prospect Vi commercial and financial
embarrassment
This enormous sum Of nearly seventy mil
lions OF dollars must be raised within less than
eighteen months from this time. because it Is
10 be expended during that period. 1t is TO be
raised also upon the naked cre,li. of the Gov
crnmcnt /: for, let il be remembered, that this
sum is not the aggregate expenditure, but Is
the excess Of expenditure bryondo our revenue.
This brings me, sir, to the important question.
how shall IT be obtained? Two mUlcs are
suggested:
First. 4 direct and permanent loan.
Second. An Indirect and temporary loan in
the firm cf an emission Of Treasury notes.
Sir, / will undertake to demonstrate to the
Senate tina, neither of tlrse modes will avail
that, if this war continue, the Treasury ,anno
be permanently relieved by either, nor bv both.
Every consideration connected with the sub
icct combines in my Judgment TO justify this
assertion.
Where is this seventy millions to be had ?
Sir, | have il from the highest autl,ority-au-
thority which iapprclend will not he ques-
ioncI by any member OF this boiy-that the
whole amount O~fspecic in the banks of New
York does not exceed five millions of dollars.
The amount in Boston probably does not a.
mount to four. Icannot say how much may
',e in the banks ct Pl,ii#lclplria and Baltimore
probably less than in New York and Boston.
The Senator from Maryland, (Mr. Pcarcc,)
saws two millions in Baltimore. How much
here may be in the Southern cities ] am not
able to say but their resources are generally
less than those of the Northern cities, rs their
banks are gcnerxlle the first IN suspend and
rhe last to rcsumc. II Is not probable. in my
opinion, that all the banks in your commercial
tiles can command more than twenty or twen-
v-ive millions. Where, then, is the enor-
nous amount which you require to come from?
There IS now a bill in the other House author
izing n loan of eighteen and a half millions
and there has been much speculation in the
ountry AZ to the probability that such an u
mount wonli be taken. But, sir, when YOU
come TO add fifty millions more. to cover the
deficiency Of the coming year, deny altogeth-
rr tho capacity nj the country TO furnish il. II
Isl physical inrrossiLaIity. The amount u no:
in the country. Ycu have dissolved your ron.
mex on with the paper currency OF the country
YOU insist upon gold anil silver, which cannot
he had, anil which. in the present state Of
YOUR commercial relations, is goiug ont Of tl'c
'ountry instead Of coming in. Relief TO the
Treasury in this way. umlcr the circumstances
| pronounce impractFsblc. No tipaH-Eg ,k'i
an accomplish E.
Sir, there are other insurmountable dfiicnl.
flies in the WAY Of such enormous loans. even il
Won had not hampercd Yourselves with your
Sub-trca>urs ANIL Us s,rc-ic clause. The sur
illus capital growing yn Of ycsir recent ctFn-
.ncrcial prosperity has already sought invest
ment some thirty or forty millions in vonr
public debt. an immense amouHt ~ railroads
and manufacturing enterprises. wlii'h have
i'ccn stimulated by the unusual artiviiv oi
commerce.. Fifty millions. it Is said, have been
invested. and are IN process N iuycs'sncnt. III
New England alone. The amount now being
invested in manufacturing enterprises is i'm
nensc. Nor is this all. The investments are
n ,ompicte. and the amount already invested
| must draw aitcri it further investments to Il yer.
V great extent. or the enterprises must be a.
irandonel. This circumstance will increase
he demand for money. and will increase also
he competition with Won in the market. Large
| mounts are absorbed in .oo1s on hand, which
.innot be realized until the goods are wanted
Tor consumption, nor mil the country ac-
Iuires the ability to purchase. Tn. greatest
obstacle perhaps, of all, Is TO lie foanti in the
condition OF the money market apJ he state Of
the currency. Money Is . worth, ufon
he best security, one and a hal f per cent. per
month. The currency Is IN Il course Of rapid
( stringent contraction. The withdrawal Tor
expectation ofthe specie basis. upon which that
currency rests, renders this inevitable. This
| liminution of the currency has an immediate
| fleet (whatever NAV he the ultimate effect e.
| luiv:,lcnt tothe humiliation of so much capital.
Property of all kinds isdepreciated, Individual
| embarrassments and insolvency follow. and