Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1848-02-26


ney, and thus preclude himself from getting the offer Of better
IL Is obvious, therefore, that those who bring forward
proposition for loan should great caution lest they
ure the Government by bidding too high for the money They
ought TO o what they think enough command the
ney and Twenty years is long investment and
six per cent high rate Of nterestthese elements
bined make this very desirable stock which must rise good
deal above par SO soon the country relieved Of the war;
and its commerce and finances brought back
and quiet condition. No knows this well CAPT
tast In the next place. instead Of making this bill
well loan bill for the union of which in the bill he
believed there precedent in the prior legislation of the
country, though he could not certainly affirm this be So
he had not looked into all the loan yet contained what
equivalent to and had often been done before II gives
solemn pledge OF the faith Of the United States that the
from the customs (Which it also pledges for that pur-
pose) shall prove insufficient pay interest and redeem
the principal, according to The Of the loan provide
and establish sufficient to make up such deficiency
This pledge will become part and most material part Of the
contract between the Government and the public creditor
There Is circumstance that holds very strong temp
aon 10 the purchase Of much Of the loan will be
ed in MEXICO where he supposed very large part Of win be
expended Specie is and always has been chief article of
export from Mexico Large quantities produced in the
terror It's transportation to the seaboard expensive through
country at all times infested with bands robbers and at
time more 80 than ever In addition this pays export
duty all charges attendant upon getting the specie Of the
country amount TO ten per cent more, he is in
formed These mines owned and worked by Of the
great capitalists OF England Al present there is 40 demand
for specie in England The result of all this is that specie
dollar is worth in the United States in England
cents than in Mexico, where the money
II is therefore perfectly obvious that if English capitalist
having specie in Mexico purchase this stock at par and give
his draft for it. payable in specie in Mexico, that the buyer
really purchases the stock discount of per But
fortunately this is discount that does fall the United
States The Government in the supposed though selling
The stock nomnally par really obtains premium for it,
that premium which the cost of transportation of specie from
this country Mexico As far this stock be thus sold
it will be advantageous transaction for both parties. And
most especially fortunate for the business Of couny
| L. 49, AZ
specie should be obtained in the United States and sent
forward to Mexico the effect be camp and derange
the ordinary business Of the country and this effect viii
the whether the specie is obtained by sale Of stock
The gentleman from New York. (Mr. NcoLI, in another
connexon, and for different purpose, mentioned fact that
gives encouragement indeed he might say assurance that the
loan would be taken at home TO is that the
Treasury outstanding being converted with
siderable rapdty into funded stock Now it must be obv
that there greater nducement to buy this stock than
to buy Treasury and fund them, because the proposed
loan has the advantage of longer time before the day
of redemption arrives. The difficulty about obtaining the
loan, there shall prove to be any will not arise from the
Of lberaty in the offered by the BILL but the
trouble will from the fact that the subtreasuy act
qufes the money borrowed by the Government 10 be paid
what not was and perhaps would be going
far say will be, the circulating medium of
the country, viz gold and silver medium that in fact
stutes but small part of the real business currency This
act, brought the country by those power against
the known wishes and Interests Of the business and BUSH
institutions of the country upon the recommendation Of
the President and Secretary of the Treasury fds that to be
received which the public creditors would willingly take in
payment and which all other glad to get This is
the real trouble, and to avoid the Secretary after all
ve heard about hard money Government and divorce from
banks takes refuge in the expeden Of issuing Government
promissoy notes. and making them receivable for dues the
Government Sooner than to the harmless expedent
Of repeating the specie clause he prefers the flat inconsistency
of and the time protesting be hard money
advocate in theory, and in practice going to the largest
IRENE of iesue And e "a IN
with these financial mutations under the denunciation of
being responsible for stopping the wheels Of Government if we
do not around with its revolutions II we insist upon
carrying out the Subtreasury, living to it while it is the
law Of the land and giving fair experiment. charged
with conspiracy overthrow the Government and subyert
the policy Of the Administrations and all this time the Sub
treasury the theme of unspang audaon, and proclaimed
10 be great and model achievement in finance,
But in connection with the question Of the probability of the
Government being able raise the money under the bill
before the committee, it assumed by the gentleman from
New York, (Mr. NIcoLL,) and by the Administration
party generally, that il acquesce in the Executive
mendatons by laying duty tea and coffee and authorizing
issue Of Treasury notes. the money will be easily OBJ
tanned that do not yield TO these terms, particularly to
the call upon impose tax tea and Coffee OF the
majority in this House will have the awful responsibility
hands Of stoppago Of the wheels of Government lie
put forth great maxim political economy, that when
public debt contracted should be provided adequate
to the payment Of the interest and the redemption of the pn
cpal when shall fall DUE No denies the truth of this.
II is therefore, well enough to stop right at this point and
inquire whether provision has been made TO meet this and
other loans which known follow il if the
nue, and not at whose door is this omission chargeabe,
that the blame and the responsibility may fall the proper
party. To right conclusion these questions,
will be necessary go back, far the date of the begin
ming of the wa recall mind the state Of things them to
what has been done and what has been omitted since
As preliminary this retrospect proper to repeat that
though adequate provision ought always 10 be made to meet
the public engagements yet until the attempt made to
unite in and the law and loan, il is believed
law 10 raise loan has been passed by Congress which
imposed tax the time Revenues to provide for the
wants Of the Government and support its credit have been
created in advance Of borrow moneys If not
in the present BILL the have usually contained clause
law adequate the principal and interest Of
the debt The laws and laws 10 borrow money had al
been kept separate. Reasons the most weghy and
obvious exist for this by their union tax might be forced
through that would otherwise be laid and, the
rary tax especially tax on imports, might carry along
with il loan that OH its merits would be adopted
This dangerous mode Of egang is solar without precedent
When nation puts itself in condition that must involve
expenditure beyond its revenues and thus imposes on
itself the necessity Of borrowing 10 meet the deficiency, It is
its duty to put finances in condition sustain the public
credit by providing adequate to its wants
transition from Of peace state Of almost al
unavodab brings about this necessity and the duty OF
providing for il.
In the early part the year $40 the President Of the Unit
ed States involved the country with Mexico and by
doing brought and great demands upon the Treasury
Let us see how the party power has discharged duty,
and whether they in condition blame and