Article Text
apple to the army and navy departments as before stated, and excluding the possible proceeds of new loans, and new issues of treasury notes. for the single purpose of paying public debt) amount to 3,772,297 13 $ 1,753,986, C7 The difference between the results of the statements, under the 1st and 2d points, will be accounted for, by the unexpected effect of payments in treasury notes, on account of du- ties, taxes and land; by the total cessation of the use of treasury notes, either to pay the public creditors or to raise money; and by an unavoidable variance in estimates, depend- ing upon a variance in the state of informa- tion at the treasury. A priority of payment may be justly claimed by the holders of the funded debt; and, therefore, it is proper to add, 1. That the amount of public credits, as estimated in the preceding statement, is the sum of 3,772,287 13 2. That the amount of the di- vidend on the old and new funded debt, payable on the 1st of January, 1815, is the sum of 1,873,000 3. And that, consequently, the surplus of the resources, after satisfying that single object, is the sum of $1,899,207 13 It will be observed, that these estimates do not include, as an item of the debt, the divi- dend on the funded debt, amounting to 200,000 dollars, which was not actually paid to the in- dividual creditors at Boston on the 1st of Oct. last. But it is omitted, because an adequate fund in the state bank was seasonably provi- ded for the occasion, & the usual treasury draft was issued in favor of the commissioner of loans, so as to deduct a corresponding amount from the bank credits of the government. The state bank declined, for several reasons (which it unnecessary to repeat) paying in coin, or in bank notes, and most of the pub- lic creditors refused to accept the treasury notes, which the banks offered to them, as an alternative payment. It is not considered, that, under these circumstances, connected with the general state of the circulating me- dium (which places the power of the govern- ment to meet its engagements, on the same footing with the power of the most opule of its citizens) there can exist any just reproach upon the public credit or resources. But, ne- vertheless, efforts have been anxiously made by this department, and are still in operation, to satisfy the public creditors, independent of the fund which was originally set apart, and which still remains on deposit at the state bank, by all the remaining means at the dis- posal of the treasury. Nor, on the other hand, have I included in the statement of our resources to pay the public debt, the unexecuted authority to bor- row upon public loans, and to issue treasury notes. I have only included the items of revenue, which, in ordinary times, would be deemed certain and effective: reserving a- ny surplus of those items, with the loan and the treasury notes, to meet the general ap- propriations for the public service. 3d POINT. It is respectfully stated, that the non-pay- ment of the the treasury notes, and the haz- ard of not being able to pay the dividend on the public debt, according to the respective contracts, was chiefly (I believe entirely) ow- ing to the suspension of specie payments at the banks, and the consequent impracticabil- ity of transferring the public funds, from the place in which they were deposited, to the place in which they were wanted. I have endeavored therefore, to induce the banks, as a performance of an act of justice, not in- consistent with their interest, or their poli- cy, to assist in alleviating the fiscal embar- rassments of the government, which they have thus contributed to produce. The an- swers to my last proposition (of which a co- py is annexed, in schedule E) have not been received, But the danger of depending upon gratuit- ous aids, (of depending, indeed, upon any thing but the wisdom and the vigilance of Congress) makes, with every day's experi- ence, a deeper impression upon the mind. In speaking, therefore, of additional measures for meeting the public engagements, during the present quarter of the year, I derive great satisfaction, in reflecting upon the inev- itable and immediate effect of the legislative sanction (even so far as it has already been given) to a settled and productive system of taxes, for defraying the expences of govern- ment and maintaining the public credit. This policy, embracing, in its course, the introduction of a national circulating medium, and the proper facilities for anticipating, collecting and distributing the public revenue, will, at once, enliven the public credit, and even the existing resources of the present quarter, must ripen and expand under an influence so auspicious. But something may be conveniently and usefully added. For in- stance: 1. Discretionary authority may be given, by law, to issue Treasury Notes, for the a- mount of the sums now authorised to be raised by law. 2. An authority may be given by law, to transfer bank credits, from one place to another place, in order to meet the pub- lic engagements, allowing a reasonable rate of exchange. 3 Appropriations may be made by law, to defray the extra expenses of the War and Navy Departments during the pre-