The telescope. (Columbia, S.C.) 1815-1818, December 26, 1815, Image 1
rVIIL1?llMt WBKHtr
IIY THOMAS W. I.OltRAlN,
ronxKii or hiciuiiiim*^ ???? tA#i mriiBpr*, juati-Ttton-o
RITKHnmA*?TAV*rtS.
7V;.,?i? of A'MA?r;/>//m.~Thf?a riollai-ft per annum, p*y'
able in advance.... >>? pnpo to be discontinued, ?but?t
tbr option ot'tlic Kditnr, until nil arrcnrarei iit'c paid.
.hhiriticinriit* not exctcd'iijc tbortec;! line*, lowxtcd
the l*u>t i iiik* fur wrerttyrflvt4 crntx, and flirty c*nt* for
<\?r!i NttlMequfint insertion \ ami hi die twine proportion
for u larjjcr number of lifai. ??' ? ?
.I'lUJJ V3*SSSB?SSSSS.
r?i ??. . ' 4 T * :** ? ?
National Vimmtto.
v "".y. "?"W' ' ' ?! ?
* A ft ITKAO ^ ?, '
AI4 TUKA8imV
oecrewry of the Tr&Mify has tlm hon
or U? lay before CongfeH* the. following Uoport,
tomprcfiendlng,?!. A cur?6ry review of the fi
nancial operations ofiuio ipvcrnlnoiit i];r<4fer*
enco (it (ho recent WOf* "? A \iew of
?he fluauccM for 1 estimate* of the flub
lie n'veniio f?r 1^16. HI. Pro*
IiosiiiohH for thteijmff&vcmcnt & niauajxcmcnm
ho revenue ttfwTIG? tho jttp|)ort of public crciHt.
1 4 A ctfrsoru vUwhf^the financial operations
of f^vqriiniw ft iiytftreiicetothe recent state of
It^ordcirtfo liitroduO&to the consideration of
congress HvSth adjpntage, the measures which
will be respectfully suggested* for replacing the
finnncekidthe United ntirtes upon the basis of
a peatie establishment, a review of tlie llnancial
operation of the government, in reference to
the recent state of war, appears to be a nccc**a
ry preliminary. 4^
Tiio restrictive system. which commenced in
the year 180/,' grtfotly diminished the product
of the public revenue ; but it h uh not until the
crisis involved an actual declaration of war, that
the augmentation in the cxpenccs of the gov
eminent became obvious and important. With
1lic occasional aid of tcm|>orary loans, the ordi
nary receipt* of tlie Treasury Itad exceeded the
ordinary expenditures, even during the period
of a suspended commerce) and a report from this
department* presenting the estimates for the
year 1819* seems to havo given the first inti
mation that the portion of extraordinary cxpen
ccs to be incurred for tile military and naval ser
vice, on account of the then existing state of the
country, would raise tlie demands u|>on the trea
sury to a considcrablvMftpiuunt beyond the esti
mated product of tlie cufrcnt revenue. The or
dinary disbursements for the year cuditijr on the
.10th Sept. 181 1, were stated at P>1.1,052,G57 73,
and the ordinary rccoiute formic same year, at
ftlft,54l,446 ctn. independent of a temporary
loan (raised in 1810 and repaid in 181)) as well
of the balances in the treasury nt the commence
ment and close of the year. l)ut the estimates
for 1812 required on tlie account of current ex?
j.vunon are Sum of ?O,4WV>00 ? and tjlO fciitadrtr
nig revenue to meet those expenses was estima
ted at 88,20c , 000 $ leaving a delict for which it
was proposed to provide by a loan amounting to
the sum of Sl?200,000. Such were the limited
objects of expense, and such the limited means
of supply at the commencement of the year in
which war was declared. An increase of the ex
pense and a diminution of tho supply must have
been anticipated as the inevitable consequence of
that event j but tho government reposed with
confidence, for all the requisite support, upon the
untried resources of the nation, in crcdit, in ca
pital and in industry. 'Hie confidence was justly
reposed ? yet it may perhaps be. considered as a
subject for regret, and it certainty furnishes n
lesson of practical policy; that there existed no
system by which tlie internal resources of the
country could ho bjoiwht at once into action
when the resources "fits external commerce
became incompetent * ? answer the exigencies
oi' the. time. Tho existence of such a sys
tem would probably have invigorated the early
movement* of tho war, might have preserved tlie
public crcdit unimpaired, and would lyive ren
dered the pecuniary contributions of the people
more enual as well at more effective. Hut ow- 1
ing to the want of such a system, a sudden anil
almost an exclusive resort to the public crcdit
wn* nccc-nr.rily adopted as the chief instrument
of finance. 'IV nature of the initrument em
ployed v. a- soon developed and It was found that
public credit could only be durably maintained
upon the broad foundation of public revenue.??
< )n The opening of the session of congress In Nov.
181 1, the legislative attention was devoted to the
organization of the military ami naval depart
ment.- upon the enlarged scale of n war establish
ment t so that the appropriations ft?.* this pur
pose, far e\ceeded. in a short time, tin-: estimates
anil the resources '<( the Treasury, n/ tJ'ey have
i?ec:n already described. Ways and meaiii' were,
thevefor?'. provided to meet tho extrrtord/miry
demand* t mis created { ln ? they were derived
e\ciu-h<lv fr-.m the operations of foreign co^n
l-.erce :.ml of public credit.
p .,- v. . r..?.i- .jV:t lesftf, |*t, tin? McililerraivMn |
I'lii'l : * . m1i| ? ib'i * ? 'vt -.iicrf .iv on tomi.'orr s ,1?t,
?. ;?}? ii ,i_v iir.tr 1 ''ollar* i <iiti, uiilliortty
1 1 ' t?<' it,' i" "I'i i
. I I
'I !.?? HlVn ??f i)?f tt.Mit.oM.il ways and mean*
j?ro>i?lvMl by c<?i;ji?v?'*. from (imp lii time, during
'!.c late war, nnv rondily Im? tracrd. From the
?rca^urv report dated 1 y-l of December, IHH, it
rippi'itiH that (ho actual receipt- into tin* treavi
iv, during li-r year ei.dinu; on tin* .'tit it of Hept.
1 3 J -J, in< lulling a portion of fin* loan, ntul the
i*su<? of treoMiry notes amounted to tin* Mint of
!'V?2,U9 dollar*, <10 cents (almost double the
amount of the pre viotm estimate) nod (hut the
actual disbursement* for the name vear, amount*
ed to the *um of r-lo6dolN. (which
?aai', al?o, at most double the amount of the pre*
\iou* e?timatc) independent of the balance in
the t r*a*urv, at the commeiicement and clo*e of
the year, ilui the estimate for the year 1H1.1,
required, on Account of the ttecumidntinff ex*
peuditurert,a?um of 3t,04VHift dollar* t ctthe
wbulfctinn revenue to meet thene expenditure*
wan ectjmuled at the *un? of l#,WH),ot;o dollar*,
leaving a deficit, for illicit it Wan proponed to
provide, 1st* by the outatandlnft balances of the
nuthoil/.ed loan and issue of Treasury Nbtes.
and 2d, bv a new authority to borrow, and
to Issue 'Treasury Notes, to the amount of
ft 1 9,095,000. During the sessions of- congress*
which commenced in November 1812, and clo
sed <ui the 3d of March, 1813, the appropria
tion# for the army, the navy, and the other
branches of tlttj public service, were considers
bly, augmented, but (without adverting to . the
imposition of u hid all duty upon- imported iron
ware) no now mmrtfc .of revenue was then
opened ; but additional aid wits extended to the
Treasury, by authorising a repetition of the
appeal to public credit. v
*i. An authority was given to raiso by loan a
sum not exceeding 1 0,000,000 of drill urn, uiul
to crea^o dtbek for the amount, bearing interest
not exceeding the into of 0 per cent, per nu
llum, and reimbursable at nny time alter the
expiration of >1(2 years from the 1st of January
1814. The. payment of the interest; and the
redemption or, purchase of this stock, ore charge
ed upon, the jinking fund.(
2. And an authority was given to issue Trea
sury Nofcs, for a aum not exceeding 5,000,000
of dnllart? absolutely ; with n provisional art
thority to isstto an additional sum <ff 5,0tM),000
of dollars, to be deemed ami held to be a part,
of the loan of 1 0,000,000 of dollars, author
ized as above ntate'd, to be raised.
The necessities of the Treasury becoming, 1
however, more urgent, and the reliance on the
public credit becoming moit; hazardous, Con
gress determined, at a sjwcinl session, which
commenced in 181*2, to lay fho foundation of
a system of internal revenue, selecting, in par
ticular. those nubjcctA of taxation, which were
recommended by the experience of a former pe-j
riod, apd computing thpir general product at
the sum of 8,000,000 of dollars. The continu
ance Of tlicso taxes being limited, at first, to
one year after the termination of the war, they
acquired the denomination of " the war taxei j*'
hut by subsequent laws, almost all the existing
revenues are pledged, with thc^fuith of the (J.
State*, to provide for the payment of the ex
pences of government, for the punctual pay
ment of the public debt, principal and interest,4
according to the contracts } and for creating an
adequate Sinking Fund, gradually to reduce,
and eventually to extinguish the public debt.
[Ifcicthc souixv*of the revenue :utj <fetmle<t.]
The sources of the revenue thus opened in
1813, could not, however, be expected to aid
the Treasury until 1814 r "J L' " *' "
the annual report from tl
the 8th of January, 18|<
tax, nor the internal (luu
item of the Actuftfrcccipts
1fllf.Vhtryeiwrr??%.Un* iU? -i
The amouhf of those reci
firoceeds of the. ensigns, of the sales of public
amis, tkc. at 1 3, 5t>8, 042 dollars, 43 cents, and
in the proceeds of loans and treasury notes at
?.1,07(5,912 dollars SO cents, making together
30,007,007" dollars 03 cents: and the actual
disbursements of the same period .vcre sUted
at 32,928,835 dollars 19 cent*. independent of
the lialaticcs in the treasury, at the commence
ment and the close of the year. Hut the esti
mates for the year 1814, required a h.um of 45, <
330,000 dollars, leaving a deficit for which it
was proposed to provide, 1st, by a part of a ba
lance in the treasury, and second by loans ami
treasury notes, amounting to 30.980,000.
For the deficit thus approaching the sum of
31,000,000 dollars, the only provision made
during the-sossion which commenced in Dec.
1813, rested again upon the public credit,
j f. Authority given to i???ie 5,000,000 dollar* of T reuse
ry N.Uch, and to raise by loan 23, 000; 000 dollar*.}
nun accordingly, hi
rtmenf, dated
?,wli
into the 1
imUof.
lipts was s'fated
Tho embarrassments of the treasury, after the
adjournment of congress in the year 181-4. be
came extreme. It appears that the disburse
ments during tho first half of that year, liail a*
mounted tflHfe sum of 19.099,781 dollars 27
cents ) and The balance of the appropriation*
for the name object* of expenditure required
during tho other half of the name year wan set
tlod at the turn of 27,576,391 dollars )9 rents.
Hut the actual receipts into tho treasury during
the first half of the 1814^ had Amounted to 19,
219,940 dollar*, 3.1 cents ; and the estimated
aggregate of the funds to meet the demands on
the treasury to the close of the year 1814, wat
the sum of*37, 102,585 dollars 55 cents, leaving
a deficit for the service of 1814, after absorbing
all the cash of the treasury, amounting to the
sum of 10.107,580 dollars' 91 cents. To sup
ply thin deficit of $ 10.167, 580 91, to provide
aii additional sum for the contingencies of tlx
yenr, and to accelerate the fiscal measures which
were essential to the prosecution of the war, in
1 81.1* the interposition of tho legislature was
deemed indispensable. The plan of finance
which was predicated upon tho theory of defray*
iii'j,- the extraordinary cxpencea of the war fry
the successive loans, already became impera
tive. The product of the revenues had ceased
io furnis'i an amount equal to the exnendlture
of t'ne former peace establishment, with an ad
dition of (he interest upon the debt contracted
on account of wni4. And the sudden suspension
of siiecie payments at the principal banks e
Rtablished in the different states (however il
may l*e excused or justified by the apparent ne
cexnity of the case) had exposed the govern
ment, as well as private citizens, to all the in
conveniences of a variable currency, devoid a -
like of national authority, and of national cir
culation. The treasury could no longer trans
fer its funds from place to place t and it became
of course, impracticable to maintain the accus
tomed punctually in the payment of the public,
engagements.
Under these circumstances the congress was
convened by the special call of the president, in
September; 1814, when the citizens of every or
cupation and pursuit, seemed eager to second
the legislative clVorts to replenish an exhausted
treasury* and torenovato the public credit.?
Commerce continued to contribute* perhaps to
the extent of its capacity. Agriculture, though
buffering the want of a vent for some of its im
portant staples* was every where prepared for
the requisite exertion. Domestic manufactures
which hod, scarcely surmounted the first strug
gle for existence* yielded to the patriotic im
pulse ) and the capital of individuals, in all its
variety of form, offered a ready tribute to relieve
.the necessities of the country. -
[Tl?c incrcuMtl dutie* on komc article* sml new tin
t.?* on oilier* cmimerntctl.)
It will he natural here to enquire into the mi
neral eftccUof tho war upon the debt of theU.
States ; ami 4h o annexed table inurkcd C. ex
hibits a detai.v t statement of tho uusati*ficd n
mounton the l?tdny of January* annually* from
the year 1791 ? to the year 1813. both, inclusive.
'Hip Mihjcct, however, inay be placed distinctly*
in the following point of view, upon estimate*
referring to the date of the 30th of Sept. 1813.
Of the I'lihUc Debt. ? I. Tho amount of the
Funded Debt contracted before w ur, which re
mained on the 30th September, 1813, may be
stated nt the sum of 3!). 1 35,484 doll*. 90 cents.
?. The amount of the funded debt, contract
ed on account of the late war, on the 3fHh of
September, 1813. may be stated ut the slim of
03,144,1)72 dollars 30 cents..
3. The amount of tlip floating debt contract
ed since tho commencement of the late war, may
be stated at tho sunt of 17, 333, If " dollars.
II. *1 view of the Finances for 1813, with
rati mates of the public revenue toul expellee# for
1310.
At the close of the last session of ctfngress,
the demands upon the trensury were interesting
in their nature, as well as great in their amount.
Exclusive of tho ordinary exnences of the go
vernment, they consisted or demands for the
I payment of the army preparatory to its rcduc
I tion to the peace establishment, with other very
heavy arrearages and disbursements on the war 1
and naw departments ; for the payment of the
dividends on the funded debt, und of the ar
rearages as well 'kiltie accruing claims, on nc
count of the Treasury Note deut t and for the
payment of the LouiHiami dividends, with other
considerable debt* contracted in Europe, in con
sequence of the late war.
The efficiency of tho means which ueie
posHCFScd for the liquidation of these demand*,
depended'upon circumstances beyond the con
troul of the government. The balance of mo
ney in tho Treasury consisted of bank credits,
lying chiefly In the* southern and western sec
tions of tho anion. The revenue, proceeding
e. ? prior to the last sen
was, comparatively, of small
amount. Tho revenue, proceeding from the
E revision made during that session, could not
e available for a, great portion of the present
year i and in both instances the revenue was.
payable in Treasury Note*, or it assumed the
form of bank credits, 6t the respective places
ol collection. The only remaining resources
for immediate use* were an additional issue of|
Treasury Notes, ami a loan ; but the success
ful employment of these resources was render
ed^ for some time* doubtful* by the peculiar si
tuation of the credit and currency of the nation.
The suspenftion of specie payment, , through
out the greater part of the United States, and
the consequent cessation of the interchange of
bank notes and bank credits, between the insti
tutions of tho different Atates, had deprived the
Treasury of all the facilities of transferring it:?
funds from place to place i and a proposition,
which was made at an early period, to tho prin
cipal banks of the commercial cities, on the line
of the Atlantic, with a view, in some degree, to
restore those facilities, could not be e lie c ted,
for the want of a concurrence in the requisite
number of banks. Hence, it has happened (and
the duration of the evil in without unv positive I
limitation) that, however adequate the public |
revenue may be in its general product to din
clmrge the 'public engagement*, it become* to
tally inadequate in the process of it* application :
*ince tho possesion of public funds, in one part,
no longer afl'ord* the evidence of a fiscal capa
city to discharge a public debt, in anv other part
of the union.
From the su?pension of specie payments, and
from various oilier causes, real or" imaginary*
differences in the rate of exchange nroae be
tween the Heveral states, and even iietwecn the
several districts in the xame state, and (he em
barrassment* of the Treasury were more ami
more increased : since congress had not none*
tinned any allowance on account of the rate of
(exchange* and the amount of the legislative ap
propriations wan the same, wherever the legisla
tive object* were to he effected. Hut the Trea
sury Notes partook of the inequalities of the
exchange in the transactions of individual . al
though the Treasury could only issue them ct
their par value. The public, stock, created in
consideration of a loan, also pm took of the ine
qualities of the exchange \ although to the go-:
vernment. the value of the Ktock created, and ,
the obligation of the debt to be discharged, were J
the name wherever the subscription to the loan i
might be made. Thus, notwithstanding tlx* am- ]
pie revenue provided, and permanently pledged j
for the payment of the public creditor^ and not-'
withstanding the auspicious influence of peace
upon the resources of the nation, the market
price of the Treasury Note* and of the public
&tock wan every where f.ir below it * par. or true
value, for u considerable period after the ad
journment of congress | \ihrafing. however,
with a change of place, from the rate of 7.1 to
the rate of 1X) per cent. Payment* in bank pa
per were universally preferred, during that pe
riod* to payments in the paper of the govern
ment j & it was a natural consequent e. w V, e\ ? ?
the Tvcwury failed in procuring a local curren
cy, it failed; in making a stipulated payment, J
Under these extraordinary' and perplexing
circumstances, the great cllnrt of the Treasury
was, 1st. to provide promptly and efieclunllv u
gainst nil urgent demand*, at tlio proper place
of payment and to therequisitc amount of funds :
2d, to ovcrcomc tho difficulties of the circiilut -
ing medium as far as it was practicable \ so that
no credit ?r should receive more, and i-* debtor
pay lew* in effective value, on .the vnne account*
than every othef creditor, or everv other debtor -?
and fid, to avoid any unreasonable iiacrifice of
the public property/ particularly when it must,
also, be attended with a sacrifice of (lie piiblir.
crcdit. It wan not expected "thut (hid elfoi f
woyld every where \ -educe the fame satisfac
tion, and tlio same result* \ but thu belief is en
tertained, that it has been suclrcssful in %'.?c al ?
tainmviit of its object*, to ii..? extent of a just
anticipation.
Of the Lonn. ? -The annexed notice marked I*.
dated the 10th March 1815,uas published, open
ing a loan for the sum of St 2.0000, (M). The of
fer* to subscribe to the loan prior to the 19th of
April, 1815, placed (of. it wis proper to- place)
money and treasury notes upon the Fame foot
ing! but the offers varied essentially in tlie term>?
and conditions that uito annexed to them j and
ill point of fact, no direct oII'm- was made to .sub
scribe nt a higher rate than 8!) per cent, while
some of the oilers were made at a rate, lower than
seventy -five per cent. l/pon thi.i experiment
therefore, it wn>: seen at onre, that the new .situa
tion of the irT.-ury required n new course Of pro.
ceedini, and tbr.t neitm r tlw ji'Stice. due to the
equal rights of tl:e public cr editors, nor a fair es
timate ol the value, of '.he public property, nor an
honorable regard for the public credit, would
|H?nnit the loan to assume fne shape and charac
ter of a scramble ; subservient to the saccula
tions which create what is (ailed a market price,
and shifting in every town ami village of even
state, according to ,tho arbitrary \ai ialioiis
what is called (lie difference of exchange.
In this view of tho subject, all. the lifters of siih
scHption tq the loan, made in the first instance,
were declined j but it was declared, at the same
time, that oilers at the rate of i)3 per cent, would
be acccpted. The rate thus proposed, was adapt
ed. on a cniifidcration of the value of the flock,
of the equitable, as well as legal claim c.fljio hol
ders of treasury note/, and of the real coalition
of the public credit. The objects of tho loan be
ing (as already stated) to absorb a portion Af the
treasury note, ilebt, and to acquire a sufficient \
of local currency, for local pur^osei . tho pi ice of
the stock at the treasury wasof, course, indepen
dent of the daily up-and-down priced of the vari
ous stock markets u? the union, and could only
Iks affected by the progress towards the attain
ment of those objects. Thus while tho wants of
i)\o ?r*ftMiry W%T r innufllcKntly nuppllod,otfei!ito
subscribe were freely accenteil, anu the parties
were sometimes authorised & invited to increase
the amount of their oilers; but where local funds
l.ad ho accumulated, as to approach the probable
amount of tho local demands, the price of- the
stock was raised at the treasury j and where tlie
accumulation una deemed attenuate to the whole
amount of the local deinauus, the loan was
closed.
The policy of the course pursued at the trea-"?
sury was soon demonstrated. Ofter.i of sub
scription to the loan, of the rate of 95 j>er cent,
payable in treasury noted, or in money, were
presented to a large amount, soon after the rulo
of the treasury wan declared ? and the annexed
table market' u. will exhibit the progressive and
actual state of all tlie subscriptions to tho SOtli
of September last* .
In the District of Columbia, the money sub
scriptions, including the subscription of certain
liquidated claim? upon the treasury) were suc
cessively at 05, 00 l--:, 97, and romper cent,
and finally, at par. In the city of Baltimore,
the money subscriptions have been at 95 and
9G 1-2 per cent. In the city^of Philadelphia,
the money tub* criptious have been entirely at
9.1 per cent. The price was raised at the trea
sury from 05 to 98 jier cent, on the 18th of June,
(subject^ of course, to all -unexecuted taibscrip
tious previously accepted or authorized) anu,
since that time*, considerable oilers have been
received at 95 ami 90 per cent, but none have
befen ret eivetl at the increased rate of 98 per
cent. The subscriptions payable in treasury
notes havt' been made in all places, at the same
rate of 95 ]>er cent.
Of the Revenue for 18JG, rstimnl'tl atcnrd
hif* to the laws voir in force. ? By (lie ln\v:? now
ill forco, tho revenue at Nina from cin*lomj?, dn
litiR tlip year 1HW>. will ho nftoctod in tho fol
lowing manner : tho present ratoa of duties con
tinue until' tlif* IHlh of February, 18l(it when
the duty on wilt imported will cense, nod tho.
rates of flnticA on meiohandisw of o\i'rv de
'rtcription. imported in American vcxoU", will
fall to ??>??? !??"? of tho amount* with
t.lio exception of certain manufactured ni ticlc<s
hoin'4 ol the f ame kind* n* tho manufactured
at lit !(??? on which ititer'ial diilier. have Upon tin
poM'd t the duties ? n tho impoitod art irltvs con
finning ftt the cxinin'* r:?< *?; . lonjf a* tho ex
i'tin;( internal dutiiM \'mI! h<> ronl'miied upon
i In* corrc* pondinr? .".rtule* ?'! domestic ' i ::im
far tare. On the Ifcih id' Kohni.irv. tin* e\tra
duty mi mnrhn:idi/.o impt 'r?! i > i foreign \e*
*e|y, which i* imw I .? ^ per cent. ? Hie irr."iii>t
of the dutv in Ameri'.to vcm-I*. will till to
M) per (cni. ??n thai amount, and llie t m; i.e
dut v on loM'i'/n ? hich i * liovv ??. dollars
per ton* will fall to ?K?y cent* per toil. I'l.o
extra dut v i? el mi |j y?'e ??> ho aflWied hv tho
operation of <h.> nitfu- aho|j?hir.'< all di>i rind
nutitig dutii'H upo-i a I>,vm of na'ior.nl t.-iipio
cit v. By the Iuvl 4 i.ow in fore. the revenue
arUing from internal d'.fio will he nlVocteil in
l! o follow iii't online"' : I ho dtilioi **?i h m* note*,
on i!'.' ? ( ?? ??? -.t 1 ? *?-. i*k *' 'j? i'f ex