Brownlow's Knoxville Whig. [volume] (Knoxville, Tenn.) 1866-1869, 1868-01-08
Respectfully, &c,
WILLIAM LAWRENCE.
II WEST TwENrIErH STREET,

NEW YORK December l4th, 1867.
/ DEAR SIR 1t gives me great pleasure, as it al
ways has heretofore DONE to pay the earliest regard
10 your requests, knowing as l do that they enla-
nate from where tho true public welfare is
a consideration paramount 10 every other. Your
enquiry involves the question whether and how far
the early financial policy Of our Government is APP
plicable TO our existing condition. l believe it 20
be fully applicable to it; and with view to show
this beg leave 10 present to you few brief state
ments.
In the frat year of our Government, a memorial
from certain public creditors in Pennsylvania be-
ing presented TO Congress- it was referred TO a
leot committee Of the House of Representatives of
which Mr.. Madison was chairman This commit
tee reported on the day prior TO that which the
office Of Secretary Of the Treasury was filled by
Washington, that an adequate provision for the
support Of the public credit is matter of high i'm
portance TO the honor and prosperity of the United
States To carry this purpose into effect, the Sec
rotary Of the Treasury was directed TO prepare a
plan in the precise words of this resolution"t for
the support OF the public credit The fiscal condi-
ton Of the country at this time thus character
lied by the two most eminent members of the
House of Representatives. Fisher Ames there de-
clared We perceive a great unavoidable confu-
sion throughout the whole acene presenting TO the
imagination Deep dark dreary chaos impossible
10 be reduced to order without the mind of the
chitect is clear and capacious and his power COM
mensurate with the occasion
And Madison wrote TO Jefferson ave are IN
wilderness, without single footstep to guide u.s.
Without any tonnage, without any revenue without
any circulating medium, without any of the
chinery Of government, the debt of the then popu-
laton Of the United States-in number three mil
lions of whites--was computed 10 be seventy-fye
millions. Though with depressed commerce, yet
with large revenue and ample faculties Of in
crease-wth an admirable sufficient circulating
medium-with all the machinery of an established
Government-the debt Of the present population of
the United States, in number more than thirty mil
lions of whites is officially computed not TO exceed
g, SOC, 900 900. Thus the ratio of the computed
debt to the population Of these two distant periods
is only little more than treble. The policy then
adopteS-of funding the debt; of providing mod
crate but sufficient graduslly-increasng revenue;
of furnishing an adequate medium of circulation,
through the fundamentally Of a national bank,
and a sinking fund for the gradual redemption Of
the debt-accompshed all the desired purposes and
proper ends Of a comprehensive weil-digested and
balanced system Of finance The public credit
supported Its credit rose in three years above that
of all nations, with one exception, Of the earth;
and is great career of honor indicated and of IN
exampled prosperity was insured. A precedent
marked by such results is surely not a thing TO be
ignored. How followed BY the establishment
of an adequate SINKING FUND, by the issue of evil
dences of debt payable in specie, and adapted rs
TO their maturing 20 the operation Of this sinking
fund snd BY gradual, very gradusl, retirement Of
the Government notes 80 as 20 disturb little as
possible the relations of debtor and creditor within
the United States and TO restore seon possible
the equilibrium Of our national commerce. Hay
inc presented plan for funding the debt and revs-
nue. system, the hrst Secretary of the Treasury Al
exander Hamilton, proposed an invoiable sinking
f,nd He ardently wishes, he stated, 70 see il
ineSrporated as a fundamental maxim IN the syE-
terr n nublc credit of the United States-that the
creation Of debt should always be accompanied
with the means OF extinguishment This ne re-
CARDS as the true secret Of rendering public credit
immortal and be pfesumes i Is difficult 70 conceive
a situation in which there may not be adherence
10 the maxim At )asst he feels unfeigned solicit
tude that this naAy be attempted BY the United
States, and taAt theli may commence their measures
for the esAblishnenOf public credit with the obser
vance II it, TIE means Of extinguishment here
sdverted 10 were lvKfcld: /. Tho establishing, at
he time Of contracting debt, fund.- FOR the roim-
bursemeut Of th0 principal, as well for the pay
ment Of interest within a determined period. 3
Tho making il part Of the contract that Che fund
50 established shall se inyolably applied 10 its OBJ
iect.r This suggestion was adopted, aud sinking
fund was established on plan which, rendering il
irvoilshe preserved Il from the failure which a.
tended that Of Great Britain and fulfilled al that
II promised Il may be objected BY those who have
now begun 10 rins with the nsti0nal faith that il
WAS Federal polity TO those who estimate
things not y their proper merits bat by he mat
.ers exterior. It mas be replied that this plsn was
adhered 70 D. tte Danocratc party when i gained
An ascendoncy ia the public councils was sustain
81 IN - operation throughout the Presidential
tcrms III Jefferson snd Madison as to the debt Of
the Revolution Wa reinforced IN 1914 aiseF the
termination Of the war with Great Britaini &c %
the whole debt old and new and was continued "a
force v successive acts Of legislation until July s
1886. when, having accomplished It's whole matuiea
purpose, il was not abolished, as thing eneessd
and 70 be abandoned bat the duties and powers p