Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1848-12-14

have absorbed SO large a portion of our capital
nor the commercial revulsun in Great Britain in
l847, nor the paralysis of credit and commerce
throughout Europe in 1913, have affected inu-
riousy to any considerable extent any of the
great interests Of the country or arrested our on.
ward march to greatness, wealth, and power.
Had the disturbances in Europe not occurred,
our commerce would undoubtedly have been still
more extended, and would have added still more
to the national veal and public prosperity. But
notwithstanding these disturbances the operation
OF the revenue system established by the tariff
act OF 1916 have been so generally beneficial to
the Government and the business of the country,
that no change in its provisions is demanded by
a wise public policy, and none is recommended.
The operations of the constitutional treasury
established by the act of the sixth Of August,
1916, in the receipt, custody, and disbursement
ofthe public money, have continued to be sue
cessful. Under this system the public finances
have been carried through a foreign war, invov-
ing the necessity of loans and extraordinary eX-
pendltures and requiring distant transfers and
disbursements, without embarrassment, and no
loss has occurred of any of the public money de-
posted under its provisions.
While it has proved to be safe and useful to
the government its effects have been most bene.
fetal upon the business of the country 1t has
tended powerfully to secure an exemption from
that imitation and fuctuation of the paper cur
rency so injurious to domestic Industry, and rem
dering so uncertain the rewards of labor, and it
is believed has largely contributed to preserve
the whole country from a serious commercial re
vulsion, such as often occurred under the bank
deposite system. In the year 1S47 there was
reVulslon in the business of Great Britain of
great extent and 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 q country with which
we have such extensive commerce, produced lit
tie or no injurious effect upon our trade and 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 numerous
bankruptcies, by an unprecedented fall in their
public securities, and an almost universal paraly-
SIS Oh commorre and industry; and yet, although
our trade and the prices of our products must
have been somewhat unfavorably effected bv
these causes; we have escaped revulson, our
money market Is comparatively easy, and public
and private credit have advanced and improved.
1t is confidently believed that we have been
saved from their effect by the salutary operation
Of the constitutional treasury. 1t is certain that
if the twenty-four millions of specie imported
into the country during the fiscal year ending on
the thirtieth Of June, le47 had gone into the
banks, as to great extent it must have done, it
would in the absence of this system, have been
made the basis Of augmented bank paper issues,
probably to an amount not less than sixty or sew
enty millions Of dollars producing, as an newt.
able consequence of an inflated cum ency, ex
travagant prices for time, and wild speculation,
which must have been followed, on the refux to
Europe, the succeeding year, of so much ofthat
specie, by the prostration of the business Of the
country, the suspension of the banks, and most
extensive bankruptcies. Occurring, as this would
have done, at period when the country was en-
gagged in a foreign war; when considerable loss
es of specie were required for distant disburse.
ments, and when the banks, the fiscal agents of
the government, and the repositories of its mon
ey were suspended, and the public credit must
have sunk, and many millions Of dollars lis was
the case during the war of 1912, must have been
sacrificed in discounts upon loans, and upon the
deprecated paper currency which the govern
ment would have been compelled to use.
Under the operations of the constitutional
treasury, not dollar has been lostby the depre.
citation of the currency. The loans required
to prosecute the war with Mexico were negotia-
ted by the Secretary Of the Treasury above par,
realizing large premium to the government
The restraining effect of the system upon the
tendencies to excessive paper issues by banks
has saved the government 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;
and it is the dictate of sound policy that it should
remain undlsturbCd. The modlnGauOus Ill some
of the details of this measure, involving none of
its essential principles. heretofore recommended,
are again presented for youl favorable consider
alton.
In my message of the 9th July last, transmit.
ting to Congress the ratified treaty of peace with
Mexico | recommended the adoption Of meas
ures Tor the speedy payment of the public debt.
In reilerating that recommendation, refer you
to the considerations presented in that message
in its support. The public debt, including that
authorized to be negotiated in pursuance Of ex-
listing laws, and including treasury notes, amount
ed at that time to $G5,778 $50 A.
Funded stock of the United States, amounting
to about half million of dollars has been pur-
chased, as authorized by law, since that period,
and the public debt has thus been reduced; the
details of which will be presented in the annual
report of the Secretary of the Treasury.
The estimates of expenditures for the next
fiscal year, submitted by the Secretary of the
Treasury, it is believed will be ample for all nee
essary purposes. If the appropriations made by
|
the means in the treasury will be sufficient to
defray all the expenses of the government to
pay off the next instaliment of three millions of
dollars TO Mexico, which will fall due on the
thirtieth of May next; and still a considerable
surplus will remain, which should be applied to
the farther purchase of the public stock and the
reduction of the debt Should enlarged appro-
| priatons be made, the necessary consequence
will be to postpone the payment of the debt
| Though our debt, as comp red with most other
nations, is small, it is our true policy and in har
mony with the genius of Our institutions, that we
should present to the world the rare spectacle of
great republic, possessing vast resources and
wealth, wholly exempt from public Indebtedness.
This would add still more TO our strength, and
| give to us still more commanding position "a
mong the nations of the earth.
The public expenditures should be economi-
cal, and be confined TO such necessary objects as
are clearly within the powers Of Congress. All
such as are not absolutely demanded should be
postponed and the payment Of the public debt
at the earliest practicable period, should be
cardinal principle of our public policy.
For the reason assigned in my last annual mes
sage repeat the recommendation that branch
Of the mint of the United States be established
in the City Of New York. The Importance of
this measure is greatly increased by the acquisi
ton of the rich mines of the precious metals in