The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1880-08-27
The Van Buren,, Tyler and Polk FL
uancierS.

When the Democratic party intimates how
much better care it would take of the National
Treasury, and what an infinitely better kind
of bookkeeper it would furnish us with, we
have a right to ask the attention of the people
to their financiering exploits during their last
period of ascendancy.
In 1886 the United States was out Of debt,
aud the estimated surplus for the year of rev.
enue over. expenditures was $14,0000O0. 1t
proved, in fact, to be much more. The next
year, 1887, changed the whole face of matters
A panic had suspended specie payments at all
the banks in May, the receipts from sales of
public lands fell off greatly, duties were diff
cult to collect and the government found it.
self unable to pay over to the several states
their share of the surplus revenue, in accord
ance with the act for that purpose enacted the
year before. By an act devised by Secretary
Woodbury., the issue of Treasury notes to the
amount of $40, 1000 900 was authorized, redeem
able one year after date, and bearing interest
at six per cent. These notes were made re-
ceivable for duties, payable for government
debts at the option of the creditor, and the
Secretary was authorized to hypothecate them
for such loans as were necessary to carry on
the government. In May 1928, though the
apparent balance on January had stood at
$4,000, 900, President Van Buren, informed
Congress that the available means in the
Treasury only amounted to about $4,000,
with many large demands outstanding and
awaiting appropriations. The government, he
intimated ,swould have to stop in few days,
unless some special provision was forthwith
made. Accordingly, another issue of paper
was authorized by an act of May 81, 1888. In
March. 1889, the condition of affairs was no
better and another issue was authorized. In
March, 1910, another deadlock was reached,
and under strong protest from the popular
House, one more issue OF notes was author
lied.
In December, 1910, Secretary Woodbury. had
to report that there would positivelyibe deficit
of several millions, owing to the rapid reduc-
ton of customs duties under the operation of
tho Compromise Tariff act of 1888, our i'm
ports for the year having fallen off nearly sixty
millions To provide against this danger an
other act of authorization was passed in Feb
ruary, 1S41. In his message of June, 1841,
President Tyler estimated deficit at the close
of the year, of over eleven millions, ana Sec
rotary Ewing on the LIST September following,
informed Congress that during the four years
last past, expenditures had exceeded revenue
by over thirty-one millions. To meet this de-
DlOraOl6 StdL6 OI dIdlTS, WuiCu SIOWu up
in time of peace, a bill to borrow $12,000,000
redeemable after eight years, was introduced
and passed after long debate. The loan was
not readily taken up in the money market, and
in January, 1872, it became necessary to pass
an act authorizing further issue and reissue of
Treasury notes The estimated excess of ex-
penditures over receipts for tn at year was up
wards of fourteen millions. Even this did not
cover the exigeneies of the case, and another
act was approved in April, authorizing fur
q Ill fnA Cnln of = xn
previous issues below par if found necessary.
Notwithstanding the favorable terms offered
to investors it was still found impossible to OBJ
tain par for the stock; and to prevent its sacri-
fee bill was introduced in the House to al
low the issue of Treasury notes when the re-
mainder of stock could not be sold at par. 1t
was stated in debate by the Chairman of the
Committee of Ways and Means who intro
duced the bill, that the immediate liabilities of
the government we're 50, 900, and TO meet
these demands not one dollar was available,
and that the stock must be either sacrificed to
the Shylocks of the country" or some other
means must be provided to meet these liabili-
tiles. The bill was finally passed in August.
A new loan and further issue of notes was
authorized in March, 1S43, made necessary in
order to save the government from absolute
Reputation of its debts from day to day.
In 1886 the war with Mexico came and on
NAV 18th, Secretary Walker had to inform
Congress that if it continued to July, 1847, the
treasury deucSnoJ WOuiu Ue %lS,ocS ,UuU. ALI
other act became at once necessary, and was
passed, permitting the reissue Of Treasury
notes as fast as redeemed, and authorizing the
President to raise new loans, as occasion arose,
up to the limit of S10,0O0,0oO. The deficiency
proved to he much greater than Secretary
Walker had anticipated, SO that in January,
1S47, new loan of three millions was asked
for and obtained. In his message of Decem-
Der z 1S47 President Polk again had to inform
Congress that if the Mexican war was contin-
ued until July 1, 1913, there would be deficit
for the year of sixteen millions. A bill au-
thorizing loan of SIG, 600, 900 was accordingly
passed, and under its provisions stock was is
sued to that amount.
Such was Democratic fnanciering and such
the straits to which it reduced the Treasury.
If it bore these fruits at time when the f.
nances of the nation presented comparatively
simple difficulties, what might we expect now,
with our present colossal debt and intricate re-
funding operations to be taken care of. 1t is
serious question for business men to consider
whether the Democratic party of 1880, satur-
ated as it is with monetary heresies, and equal
ly so with hobbies for tinkering the tariff,
would be any more likely to give the nation a