! ' . .a:f tfV v-tew-: -v' - lV
"xyTr 1 ... ' ' FRIDAY, NOVEMBER 4, lg!4 . j, .l-' ' V-jl
TREASURY REPORT.
i ' . !
r i kttcr frU the tbiirmin of the
Llittee of W.yf nd Mr.n. to the Sc
SSofib Treasury. J.ud
' The committee of Ways and
have blunder heir onside.
&.e support of public aedtt by
VLxtm of orc
J throne herctoorp adopted.
hiver determmef to smpend
Kfcrdyou , opportunity of;ug-
un-my othcr' or 9lfch addulonal
iitcJi oijoum unimpiired the pub-
i avc ibe ncnor uc, yuur ujusi
obedient,
jonN w.ErPES.
THE kNSWER.
Trtnan Departilient. Oct- 17.
SiRl hive the hVnir to acknow-
r t fn stTJ
grccuu.-iv-jv - .
fp,0Ctd,.t.hcmomeircfcncnaK
coistticritisnjof the nmtttre of
Wau Meaos. ao answer on ine
lueral points of their, ccqulry, j ;-Coctnp-'iting
the present state of
fpa.nces itispbviouL that ad til -
clzl in the rerentie, ahd a deprtci
aaca in the pubfic credit, exist irorn
ciuses whicb cann.-t in any aegree oe
cribed either to the wint of respur
as, or to the want of integrity, iiv the
Different minit will con-
cri?e diffcreat opinions Jn relation to
icms of those canses ; cue 11 wiu oe
igreed on mil sides, that tKe most cpe '
ntirchiTcbetnl th'clnidcquacy of
our system ot taxation to lorm a founT
ditbofcr pubiiclcredit and the ab
irtceereo from: that sjitem of the
ceacs which ire Wt adapted to anti
cipate, ra Uctand distrifcute the pub
Ec revenue. j I , . ' . V; ?
The wri;ih ofjthe catirn, in the va
Icr icd protJucu of its fpil, in all the
iqu'.sitions of per focal property, and
a a3 the varieties of industry, re
Eitct almost tinjoucbedj by the hand
cf governratLt j for- the national
arid cot the national wealth, has
hitherto been the! principal instrument
tf finaoce. It was reasonable how
trtr, iq expect, that ajperipd tnua
otcaiin the tctirse of la protrac ted
nii, hen ccnBdence in the accumu
lirtcg pubUc engagemeiit could only
c e set urt d b j an . acti vfc d e monstra,
'ko, both cf the cipatity and the
'Esposiuwj to perform) them. ; In
:k presect ktate cf fthe trefury
ttrefotc, it is a just cinvolation to
ct, that a prompt Jand resolute
?puatioo ol 'the Vcsourtes or
Jte cc unuy wiji effectually relieve
won every p.cuciary embarrBtsment
si dedicate trie nscall htnor of the
trcmeni. ; . j .
ct it would be be vain to attempt
fctfsgti.se, and it would be perni
palliate the diblculucs which,
ww to be overconie.1 The exi
lcscf the gf'veinmcnt'require &
Ffly of treasure for tli prosecution
war, beyond any imount which
uta cc pontic, ecn if it were
f'sicablt, to raise.by kn immedrate
i3 constant impositiou. of. taxes
, ujncicrc.oea res on to
ui,ior a coctidcrable portioaof
till nnr.,, i J . f. .
. j c ,0 ueprtsica, mat no
wT of tqudte succour, on' mode
tr can saieiv ret utvm it.
become, the ci;jrct first and
tf ce,to re animate the confidence
ciuzens i and tb i
adof every mati, who, for the
i.?;LUrofBernmtnu
. not to be regarded, indeed, as
Uv;r Crc,?,V D5 f credit which
ftecaL r ,mPaiTtd but tathef
"niuiuo&ot and appre
sh. H !cli"c6crvicci, lur-
?ph?' ?r ace. money,
.on of iri Dunciuitp a. irfi
hension (not the less injurious per-
naps,Decause tney arc visionary) have
cast an inauspicious shade; In the
former case, the ordinary means of
raising and appropriating the revenue
jrill always be sufficient ; but in the
Utter case, no exertion can be compe
tent to attain the object, which does
not quiet, in every mind, every fear
of future loss or dfsappointment in
consrqurnce of trusting to the pledg
es of the public faith.
The condition of the circulating
medium of the country presents ano
ther copious source of mischief and
embarrassment. The recent expor.
tatioos of specie have considerably
diminished the fund of gold and sil
ver coin ; and another considerable
portion of that fund has been drawn,
by the timid and the wary, from the
use of the commuoity into the'private
coffers of th individuals. On the
other hand the multiplication of banks j
in the several states has'so increased
the quantity of paper currency, that
it would he diffii ultto calculate its a
mount ; and still more difficult to as
certan its value, with reference to
the capital on which it has been is
sued. t But the benefit even of this
popvr currency is in a great measure
lost,; as the suspension of payments in
specie at most of the banlcs has sud
denly broken the chain of accommo
date ri. that previously extended the
credit and the circulation of the note's
which were emitted, in one state into
every state in the union It may in
general be affirmed, therefore, that
there exists at this .time no adequate
circulating medium common to the
citizens of the. United States. The
monied transactions of private life
re at a stand ; and thr fiscal opera
tions of government labor with ex
treme inconvenience. It is impos
sible that such a state of things should
belong endured ; but, let it be firly
added, that with legislative - aid it
is not necessary tnai tne endurance
shoud-be long. Under farorable
circumstances, and to a limited extent
an emission of treasury notes would,
probably afford relief; but treasury
notes are ao expensive and precarious
substitute, either for coin or for bank
notes, 'charged as they are with "n
growing interest, productive of. no
countervailing profit, or, emoTutneoti
and exposed to every breath otpopu
lar ? prejudice or alirm The estab
lishmenc of a national institution, o-
pe rating upon credit combined with
capital, and regulated bv prudence St
good faith, is, after all, the only tffi-
cient remedy tor tnc disordered con
dition of our circulating medium.'
While accomplishing that object, too,
tnercwm oe louna, unacr.incauspi
tes of sticK an institutioo, a safe de
pository f ir the public treasure, and
a constant auxiliary to the public ere
dir. But whether the issues of a pa
per currency proceed from the nation
al treasury or from a national b ink,
the acceptance of the paper in a course
of payments and receipts must be for
ever optional with the citizens; .-4"he
extremity of that day .'cannot be anti
cipated, when any honest add. enligh
tened stateman will again venture up
on the desperate expedient of a tender
law. - ; , ' . J
t From this painful, but necessary
developemcnt of existing evils, we
pass with hope and confidence, to a
more' specific consideration of the
measures from which relief may.be
certainly' and speedily derived. Re
membering always, that the objects of
the government are to place the
public credit upon a, solid and du-1
rabie lounoation ioprcvioe a reve
nue commensurate with the demands
of a war expenditure, and to remove
from the treasury an immediate pres.
sure, 'the folio wiog propositions are
submiued tothe xoxnmittee, with e
very sentiment 'of deftrente and res
pecu , ' " - 4:jk r
PROPOSITIONS. ?, .
I; It is proposed, that, during the
war, and until the claims, comtemplat
cd by the proposition, are completely
'ttUfied, or extinct, there shall be an
nually raised by taxes,duties, imposts,
Sc excises, a fund for these purposes:
1. For the support of gorernment gl,5004000
z. ror toe prmcipu and interest
'of the'poblic debt, existing be
fore the declaration of war, and
payable according- to the con
fact, 2,500,000
j. for tne interest of the public
debt contracted, and to be con
tracted, by loans or otherwise,
from the commencoxnept ; :to v , i
tbe terralnation of the war,
calculated upon an annual prin .
cipil of 72 millions of dollars, 4,320,000
4. rr the payment of treasury
notes, with the accruing inte
rest 7.400.000
5. tor the payment of deben
tures to be issued (as is here
inafter proposed) for liqu dat,
icg balances, due. to inditidu-O
sis, on1 account of services or
supplies authorised . by law,
but either not embcaced by a
specific appropriation, or ex
ceeding the sum appropriated
280,000
6. For a current addition to -the
sums. rai ted by loan, or issues'
of treasury notes, towards de
fraying the general expenses
of e war"'
2000,000;
7 I ,he gradual establishmrnt
v m in.ing ionavio exiinguisa
the debt incurred during the
war -.f,f '
50Q,000
8. For a contingent fund, to meet
sudden & occaa onal dtinanda
upon the trea.ury
1 500 000
. StQl'OOxfOOU
I'
ll. It is proposed, that during; the
war, and until the claims contemp-
ated by the preceding proposition
are completely satisfie d, or othef a-
dtquate funds shall be provided and
rubst:tutrd by law,: there shall be
annually raised, by the means here
specified, the following sums :
1. By the customs (which cannot
be safely estimated, d urine
. the war, at a higaer product) 24,000,000
X By the existing internal duties 2J00.000
3- By the existing direct tax , 2400,000
4. By the sales of public lands
(which cannotgbe safely esti- j
mated, during the war; at a
higher-product) ' 800,000
By an addition to the existing
direct tax of lOOper cent. 2 850,000
6 By an addition of 100 per cent.
r on the present auc ion duties 150,000
7. By an addition of 100 per cent,
on ' the existing duties upon
carriages . ' . ' .M.. 300,000.
8. By 'au addition of 50 percent.
, on 'the existing duties on licen '
ses to retail wines, spirituous
liquors and foreign .merclian. ! .
dize . 4 . 300,000
9 By an addition Of 100 per, cent. .j
'on tbe existing' rale of postage 500,000
1 0. . By the p roceedi of thV ntw
duticl specified, in the. annex- . ., .
ed, schedule,' rasrked.A, mak-
incrtnuie acrgrreeate '. .'w.ucu
g2l,o0D,0pO
III. It U proposed that a national
bank shall be incorporated for a term
or twenty years, ro.oe.cswusncu.Hi
PhUadrlnhia, with a poive r to erect
offices -of disrount and deposit else
whertl upon "the following principles:
l.KTht; the capital of the bank shall be 50
milliona. of dollars, to be divided 'into
V'100.000 shares of fire dollars each. Threa
.fiftba of the capital, being 60,000 shares,
amounting fo 30000,000 ot doUars, to be
r'aiibscribed by ' corporations, .companies
: or individuals : and two fifths of the capi
- tal being 40.0QQ shares , amounting to 20
millions ot dollars, to oe suoscnoea oy
r'the United States. ' gH,
2.' That the subscriptions of corporations,
' idompanies and individuals. Stiall be ( paid
for in iht fsllowlng manner : ' r -.
x One fifik psxf,or 6,000.000 dollars, in gold
i vorsUverain. 7 t v -:j
Four fifth pana, or 24ft00,000, in gold or
iiiver C0117, or in per ccuu tiuv.
, , sued since the declaration of war1, and
treasury notes, in, the, propon ipa of one
r, v fifh io treasury notes, ana tne-wi n
-, ;t: in, six per eti stock-'- . . i 'FWr.
3. That Uie SUDSCnpuona oi j)ruun,
a 'companies 1 arid'' individuals .shall be paid
. at the following periods t
SO dollars on each share;, to be
paid at the time.Of subscrib
fng, in gold or silref coin
40 U.. liars on each scare, to be
, ; paid in gold or siher coin,
one month after the sub
script ion
40 dollar on each share, in
r two montba after; the sub
I'scristion, ia jgoWQrt.silrer
' xcoin " 1 "
100 dollsrs i 'specie
100 dollars on j each, share, , in
gold orjlver,coin,,or Jn six
f per cent stock, or n treasu
' ry notes, according ' to the
i preceding appointment, to
be paid at the time of sub
; Sw-abing 1. i ' . ,
150 dollars on each share, to be
paid like manner, in two
? j f months after subscribing 7. .
150 dollars on each hre, to be
paid in like manner, in three
" -'j months after sasscxibing: '
100,000
2,400,000
2,400,000
6,000,000
"t- ""
6,000,000
': Y ..
9.000,000
9.000.000'
509 ' . . ' 1
30,000,00
4. That the'Tsubscription of the U States
shall be paid in six per cent, stock, at the
same periods and in the same proportions
asthe payaienta of pri?ate.,subscriptions,
in stock and' treasury notes. ! ; r
5- That the United States may substitute 6
per:; cent.', stock; for the smount .of ; the
treasury note subscribed by corporations,
companies," and individuals, as ths nites
. respectively become due and payable
6. That the bank shall loan to the U. States
30.000,000, at an interest of six percent,
at such periods, & in such sums, as shall
be found mutually convenient.
7. That no part of the public stock, cnsti
tuting a por ion Of the capital of the bank,
shall be sold during the-war ( nor at . a
subsequent time,' for less than par; nor atj
any time to an amount exceeding one
moiery, without the consent of congress.
8. That provision shall be made for protect
ing the bank notes from forgery ; for limit
ing the issue of bank notes ; and for i re
ceiving them in all payments to the Unit
ed Sta es. "' i ' . 'V "
9. That the capital of the bank; its notes,
deposi's, dividends, or p-rais, (its, real
estate only exeftpd ) shall not be subject
to taxation by. the United States, o? by a-
ny individual State.
10. 1'hat no other bantShall be established
. i i ii . ' f . t t
Dy congress uunng me cerm xor wnicn
the national bank is incorporated.
11. That the National Bank shall be govern
ed by fifteen directors, being resident cii
tizensof the-United States and stockhol
ders. The1 President of the UnitedStates
shall antiually name five directors, and
designate one of the five to be thefpresi
denv of the bank. The other directors
shall be annually chosen by the qualified
stockholders, inf person or by proxy, if
resident within the United States, voting
upon a scale graduated according to the
' number of shares which they respective J
ly. hold I he cashier and the other orTU
cers of the bank to be appoidted as is
.i usual in similar institutions.
12 That the directors 61 tbe national bank
shall appoint seven persons, one of whom
to preside as the ' manager of each office
of discount and deposit and j one person
to bv the cashier.
13. That the general powers, privileges, and.
regulations of tbe bank, .hall be the'same
as are usual jn Similar institutions ; but
with this special provision', that the gem
era! accounts shall be subject- to the in
spection of die secreUtry of the treasury.
IV. It is proposed; that after hay-
i vpr thus provided for the punctual
payment of the interest upon every
denomination of public debt ; for
raising annually , a' portionjof the an
nual' expense, by taxes,' for; establish -inga
sinking fund, in" relation to the
new debt, as well as id relation to the
old debt ; and for securing to the pub
lic the efficient agency ot a national
bank ; the. only fern fining object of
supply shall be accomplished by an-
nual loans, ana issues oi treasury
notes, if,1 unexpectedly, such issues
should continue' to be necessary' or
expedient. j
1 The amount of annual expenditure dar
ing the war, exceeding the sums provided."
. for, does hot admit of a prospective esti
mate beyond the year 1815 ; but for that
year it. may be estimated with sufficient
accuracy tor the general purposes of the
present communication, at 28.000,000
2. Then for the year 1815, an additioaal pro-
vision;musi oe maae, amnorismg a loan
and the issue of treasurv notes, to an e-
qdal amount j f r S28 OOObO
V.l It is proposed that the a mounts
lorvautnonseia expenses uciug uuy
stated and settled, a certificate or de
benture shall ssiz to the accountant
pecifying the balance ; and that in
all cases where there ha3 been no spe-
cific appropriation, or the claim ex
ceeds the amount of the sum appro
priated, the-balance aball bear an in
terest of 3 per cent, until provision is
made by law for paying the amount.
..f'VI. ' And finally,1 it is 'proposed to
relieve the treasury from an immedi
ate pressure; upon the principles, of
the following statement :; if
1 The' amount of demands upoa v
;ihe: treasury, (exclusively f faf
':4 balances of appropriations for
-JTprmer years, unsatisfied) was ? .
.4
stated in the report or the late
secretary of the treasury, of the
- 23d of September, 1814 to be
on the 30th of June, S2757691 19
2. The accounts of the 3d quarter
01 io , are not yet maae up,
'and the precise sums paid dur. :
log that quarter cannot now be
ascertained ; bat they amount
Atohearly le' 84,000,-
Ixarmg to be paid mi the th ... s
quarttronsi ; pi 10,01 xy
3. This balance, payable, during the?4J
quarter of 1814, consists of the alkwtog
iiems - -is. J '
Civil, diplomatic and - I'- i : ; v
uceeaboat ; 353592 99
MiiOary: about -fi792 688 '
naval, aoout;. :- ajwMws
' a a . a aawva 1
?ublio debt, about 7.68,412 23
19,1769lltf
4;The existing.; provisions by ;;!Uw?-lbetfrt7f;
payment of the balance of 5519,16,391 19 i ;
: , may be estimated as follows k-i;;?. ..
The act ofthe 24th March. l4if Mv t '
authorised a loan for ; 25.C00.00O
The aefoflhe 4thIarch, 1815, v: , 4, wt
-authorised an issue of treasury i '' '
notes Tor ' r 'V i 5,000,000
S0,6up,0QO
Under these autho- v ?
ritieys' there have ".. ;Jf.
" been . borrowed -4
orf loan, about7 M0.895.00O
i!:
There has been seni a. . -;
jio Europe in 6 pr.-'.'
There, has been is-rj -
sued in treasury .
notes: 3,504 000-
2099,000
X
g9;6oi,ooa
There remafns there-
authority to borrow ,105,000
To issue treasury notes 1,496,0001
&9 60UOOO
Tlie demands of the fourth qusr
ter being.; hen
l9il76j39U(
There nisy be applied
f
to meet them, tbe T v ?i;v
revenue eceuirtg ',.J
during the quarter , .
from all sources a : x
bout ; ' 2900,000
Also, payments to be 4
made oh account of rk;
'
3
tract e4 for accords U ' ? vf-i
ing t6 the authority J: S
s above stated, about 2-,500,'OOd
151400.000
11 11 ,
Leaving : a balance to, be provi
ded for
213776,391 19.
By the authority, re-
mainmsr to borrow: o.lOj; 00a
tiy theauthor.ty .re;'ikfl
maining : tolsfues . R 'r;
tressury notes- 1,496P00 j
By an addidohal au-. - v '
thdrify 61 'be grantf .: ".'j
ed by law toibor
row, .and, to issuer .g--
tre&sttry notes
4475,391 m
-1
rrtu jot 1m
t,$, Utd?4 X
These estimas no wevrifc will !
be, -pbsehred; tdtillj .
simply, t the fapppnatior by la w 1
for the excuses: fcf the , year 114 j
and do' not embraee a pratision;,ta ;r
satisfy blatices ftpjpjpniit
for the expen3esJ6fyprccedtng
which have not been; called; 'for i the 1:
treasury. 'But it wilier probably,4 be
deemed expedient to rnak jich rbf
vision by-extending the eiutnor
ity to borrow from the alcove toaorey
to 6.000 000. If the 6 per cent.
stock which has been sent to Europe: . '
sjiould be there dpt scq of; ' it will;;
form an item ia the estimates of the
4t
ensuing year
As 1 a portion, of the ajndurSt to be ;
provided' duringthd.pres
consists pi treasury Doica ; wnitn, wiu
soon be due, it wil6e"'?a
make them receivable in subscQptiona '
twii 4. ir jl Y- 57
4 it is proper co accompauy tneao
propostions witn a .leexpianawrf
1; The first proposition i febntem- a lv
plates a permanent -'system ;butt ey, ;
stimateofthe particttfimsrAv
claims and demands ok:th0hiS:: If
mustbeTegarded as immciaiejap s f;
jplyintlthew
riiv beTsoraevanstion f ' aj, toriri; -t
stancethe item btihterest on tKe olllrf
debt will annually sink, while; the
item .' of jnteretort the
will annually risedUripg me D0U-
nuance of the war
r.
1 The. items for. ann
ddrtion of the puDiic expenc
tax
es. and for applying to the fiew debt-
a sinking fund (gfaduallyf fatitiiXnfo -until
it becomes commensurate with: :
its ohiectiarel?esa?ntiaL iVatarcs in t r
old debt is already in rabid operatien
$y the ;wisefpre
institution. . y'
:. 2i Tfiex second prpbsiiipn ;vfM
doubtless geneVateTmanyi
various: obiecnsveeeavot
has beenhbweveryo spread the geoi
eraUnntpf the ir
surface with a hand aajight and equal ;
as is conaisicnt-wim. cvuvcuicutc xa
tne process, sn
suit
i r
y
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