The voice of freedom. [volume] (Montpelier, Vt.) 1839-1848, 1848-03-23
cause which produced it continues to operate
That cause is this Mexican war.


That cause is this Mexican war.
I have spoken of the expectation of specie
to England. To what is that owing? Not
surely to any commercial debt we have con-
tracted. The balance of trade has been IN
our favor. The immense expectations OF our
productions to that country has drawn from
them an immense amount OF the. precious
metals, eXtort.d from them under the penalty
of starvation. The sudden refux Of specie to
that country has resulted, not from our com.
mercial relations with it, but from the expen-
ditures of this Mexican war. To avoid the
expectation Of specie to Mexico VIC have sent
Treasury drafts and Treasury notes. These
have been cashed there by English capital
lists the money has been dsburScd in Next
co by our officers; but the drafts have been
presented for payment at the Treasury, and
the avails exported to England. 1t has been
| found Il convenient mode of remittance OF the
gold and silver of Mexico to England, You
must either continue this process, or send the
gold and silver TO Mexico, if you can command
it; and whether you adopt one course or the
other is, so far as the currency is concerned,
unimportant No further expectation of spe-
Gle can take place without Gripping the cur
rency.
| But, sir, could you effect these loans under
these circumstances, you would PROSTATE the
whole commercial community; and with it
you would sacrifice every other industrial in
tcrest and annihilato your revenue. fdonc
at ALL it must be done by hawking about your
stocks at great depreciation. If capital is
thus to be forced into new channels, the effect
may be easily foresecn The withdrawal of
deposites-fIom the banks-thus forcing them
to further curtailments-thc forced sale Of
stocks tending to further depreciation Of eve
ry species of property-would result in mis-
chief indescribabe in general ruin. Fortu-
natcly for the country, it could not and would
not sustain such pressure, but your financial
operations would fail. Nor do wish to see
the credit of this Government in the hands Of
usurers. This might be done if the rights and
honor of the nation were at stake, but never,
with my concurrence, for the purpose of car
rying on a war commenced, iii my humble
judgment, without necessity, and prosecuted
without a rational object
With the Sub-treasury in operation, you can
never expect to supply the deficiency in your
revenue. Will you modify that system by re-
pealng the specie clause? viii that avail
YOU =? The effect will be merely TO enable
you to receive paper instead of coin. That
paper must be bank paper; there is no other
Your loans, whether obtained from banks or
individuals, will be received in that currency.
What, then, will be the result? You will re-
qure of the banks, first, currency to meet
the exigencics Of the commercial world; and,
secondly, medium for your immense expen-
diture. If they attempt this, they mast ENLARGE
their circulation to an enormous extent; and,
4l:- I'll -,
tosuspension We shall ind ourselves thrown
back at once upon the financial policy of 1914
the Government leaning upon suspended
banks, and the banks coun.enanccd and sus-
tained in their suspension by the Govern
ment.
This would be an amusing comment upon
the boosted divorce Of the banks and the Gov.
eminent, the blessed influence of the consti-
tutional treasury, and the glorious practical
results of the specie humbug.
But notes of suspended banks would not
answer your purpose. They could be used
at home only at discount disguised under
the device Of high prices, increasing still fur.
cher your expenditures and your cmbarrass
nents, and would be useless in your foreign
expenditure.
If these loans cannot be effected at home,
can it be done abroad No, sir The state
of the monetary affairs in Europe is still en-
bIrrassed. They are just recovering, espec-
tally in England, from extreme pressure. |
Confidence is not yet fully restored. They
have no money to spare; and if they had .
they would not be much inclined to aid YOU
American public credit does not stand very
high there; and, above all, they have no
sympathy with you in this war. They have
seen enough of interminabe war-thev are
disposed to peace. And they will not fail 10
regard this war as prosecuted for an unlawful |
purpose, and as originating in reckless ambi-
ton and love of conquest.
Mr.. President: The next topic which
propose to discuss is the project Of supplying
the deficiency in your revenues by means of
Treasury notes; and this is to be considered,
first, as a mere revenue mcasure and, sec
ondlv, as Il means of relief to the currency and
business of the country.
Sir, as a revenue measure, Treasury notes
may serve as a temporary relief by enabling
you, for short period, to anticipate the rev.
enue, but they can never supply @deficinncv.
If rcsortcd to for that purpose, they must ne
cessarily fail and the reason is, they will alb
sorb the revenue they are intended to exc
out. To give them the effect intended, they
must be made payable at future day, and
upon such rate Of interest as will make them
an object of investment, and this will put
them on the footing of Il mere security for
permanent loan. Ifplaced upon this ground,
they will he ctIectual only when loan upon
stock at the same rate, could be obtained.
The idea that Treasury notes, as a Gov
ernmcnt currency receivable for public dues,
and convertible into money on demand, can
be made to supply deficiency of revenue, is
to my mind an absurdity. Suppose your ex-
penditure is $5O,0OO,O0o and your revenue
$50, 100000, you issue Treasury notes for
$2000O,00O to cover the deficiency. You
must make them receivable for the public
dues or they will be presented at the Treas.