The Congressional Globe, Volume 13, Part 2: Twenty-Eighth Congress, First Session Page: 3
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Dec. 1843.
28th Cong 1st Sess.
APPENDIX TO THE CONGRESSIONAL GLOBE.
\3
Message of the President.
Under the provisions of an act of Congress of the
last session, a minister was despatched from the
United Slates to China, in August of the present
year; who, from the latest accounts we have from
him, was at Suez, in Egypt, on the 25th of Septem-
ber last, on his route to China.
In regard to the Indian tribes residing; within our
jurisdictional limits, the greatest vigilance of the
Government has been exerted to preserve them at
peacc amon themselves, and to inspiie them with
feelings of confidence in the justice of this Govern-
ment, and to cultivate friendship with the border in-
habitants. TJuy has happily succeeded to a great
extent; but it is a subject of regret that they suffer
themselves, m some instances, to be imposed upon
by artful and designing men—and this, notwith-
standing all the efforts of the Government to pre-
vent it.
The receipts into the treasury for the calendar
year 1843, exclusive of loans, wire little more than
eighteen millions of dollais; mid the expendituies,
exclusive of payments ou the public debt, will hove
been about twenty-three millions of dollars. By
the act of 18-12, a new arrangement of the fiscal year
was made, so that it should commence on the 1st
day of July in each year. The accounts and esti-
mates for the current fiscal year will show that the
loans and treasury notes made and issued before the
close of the last Congress, to meet the anticipated
deficiency, have not been entirely adequate. Al-
though, on the 1st of October last, there was a bal-
ance in the treasury, in consequence of the provision
thus made, of $3,914,082 77, yet the appropriations
already made by Congress will absorb that balance,
and leave a probable deficiency of two millions of
dollars at the close of the present fiscal year. There
are outstanding treasury notes to about the amount
of four million six hundred thousand dollars; and
should they be returned upon the treasury during
the fiscal year, they will require provision for their
redemption. I do not, however, regard this as prob-
able, since they have obviously entered into the
currency of the country, and will continue to form
a portion of it, if the system now adopted be con-
tinued. The loan of 1841, amounting to $5,672,-
970 88, fulls due on the 1st of January, 1845, and
must be provided for, or postponed by a new loan.
And unless the lesources of revenue should be ma-
terially increased by you, there will be a probable
deficiency for the service of the fiscal year ending
June 30th, 1845, of upwards of four millions of dol-
lars.
The delusion incident to an enormously excessive
paper circulation, which gave a fictitious value to
everything, and stimulated adventure and specula-
tion to an extravagant extent, has been happily suc-
ceeded by the substitution of the precious metals,
and paper promptly redeemable in specie; and thus
false values have disappeared, and a sounder condi-
tion of things has been introduced. This transition,
although intimately connected with the prosperity
of the country, has nevertheless been attended with
much embarrassment to the Government in its
financial concerns. So long as the foreign impor-
ters could receive payment for their cargoes in a
currency of greatly less value than that in Europe,
but fully available here in the purchase of our agri-
cultural productions, their profits being immeasura-
ble augment^! by the operation, the shipments were
large, and the levenues of the Government became
superabundant. But the change in the character of
the circulation from a nominal and apparently real
value, in the first stages of its existence, to an obvi-
ously depreciated vajue in its second, so that it 110
longer answered the purposes of exchange or barter,
and its ultimate substitution by a sound metallic and
paper circulation combined, has been attended by
diminished importations, and a consequent falling
off in the revenue. This has induced Congress,
from 1837, to resort to the expedient of issuing
treasury notes, and finally of funding them, in order
to supply deficiencies. 1 cannot, however, withhold
the remark, that it is in no,way compatible with the
dignity of the Government that a public debt should
be created in time of peace to meet the current ex-
penses of the Government, or that temporary expe-
dients should be resorted to an hour longer than it
is possible to avoid them. The Executive can do
no more than apply the means which Congress
places in its hands for the support of Government;
and happily for the good of the country, and for the
preservation of its liberties, it possesses no power to
levy exactions on the people, or to force from them
contributions to the public revenue in any form. It
can only recommend such measures as may, in its
opinion, be called for by the wants of the public
service, to Congress, with whom alone rests the
power to "lay and collect taxes, duties, imposts, and
excises." This duty has upon several occasions
heretofore been performed. The present condition
of things gives a flattering promise that trade.ancl
commerce are rapidly reviving, and, fortunately for
the country, the sources of revenue have only to be
opened, in order to prove abundant.
While we can anticipate no considerable increase
in the proceeds of the sales of the public lands, for
reasons perfectly obvious to all, for several years to
come, yet the public lands cannot otherwise than be
regarded as the foundation of the public credit.
With so large a body of the most fertile lands in
the world under the control, and at the disposal of
the Government, no one can reasonably doubt the
entile ability of the Government to meet its engage-
ments under every emergency. In seasons of trial
and difficulty similar to those through which we
ate passing, the capitalist makes his investment in
the Government stocks, with the mo3t assured con-
fidence of ultimate reimbursement; and whatever
may be said in a period of great financial prosperity,
such as existed foi some years after 1833, I should
regard it as suicidal, in a season of financial em-
barrassment, to alienate either the lands themselves,
or the proceeds arising from their sales. The fn st
and paramount duty of those to whom may be in-
trusted the administration of public affairs, is to
guard the public credit. In re-establishing the credit
of this central Government, the readiest and most
obvious mode is taken to restore the credit of the
States. The extremities can only be made sound
by producing a healthy action in the Central Gov-
ernment; and the history of the present day fully
establishes the fact, that an increase in the value of
the stocks of this Government will, in a majority of
instances, be attended by an increase in the value
of the stocks of the States. It should, therefore,
be a matter of general congratulation, that amidst
all the embarrassments arising from surrounding
circumstances, the credit of the Government should
have been so fully restored that it has been en-
abled to effect a loan of seven millions of dollars to
redeem that amount of treasury notes, on terms
more favorable than any that have been offered for
many years; and the six per cent, stock which
was created in 1849, has advanced in the hands of
the holders to nearly twenty per ccnt. above its par
value- The confidence of the people in the integrity
of their Government has thus been signally mani-
fested. These opinions relative to the public lands
do not, in any manner, conflict with the observance
of the most liberal policy towards those of our fel-
low-citizens who press forward into the wilderness,
and are the pioneers in the work of its reclamation.
In securing to all such their rights of pre-emption,
the Government performs but an act of retributive
justice for sufferings encountered and hardships en-
dured, and finds am pile remuneration in the comforts
which its policy insures, and the happiness it im-
parts.
Should a revision of the tariff, with a view to reve-
nue, become necessary in the estimation of Congress,
I doubt not you will approach the subject with a
just and enlightened regard to the interests of the
whole Union. The principles and views which I
have heretofore had occasion to submit, remain un-
changed. It can, however, never be too often re-
peated, that the prominent interest of every impor-
tant pursuit of life requiies, for success, permanency
and stability in legislation. These can only be at-
tained by adopting, as the basis of action, modera-
tion ill all things; which is as indispensably necessa-
ry to secure the harmonious action of the political
as of the animal system. In our political organiza-
tion, no one section of the country should desire to
have its supposed interests advanced at the sacrifice
of all others; but union being the great interest,
equally precious to all, should be fostered and sus-
tained by.mutual concessions, and the cultivation of
that spirit of compromise, from which the Constitu-
tion itself proceeded.
You will be informed, by the report from the
Treasury Department, of the measures taken under
the act of the last session, authorizing the re-issue of
treasury notes in lieu of those then outstanding.
The system adopted in pursuance of existing laws,
seems well calculated to save the country a large
amount of interest, while it affords conveniences and
obviates dangers and expense in the transmission of
funds to disbursing agents. I refer you also to that
report for the means proposed by the Secretary to
increase Ike revenue, mid particularly to that portion
of it which relates to;thesubject;<>f ,4 ,
system, which I earnestly urged TOpnVCgngr^^at
its last session, and as, to the b? w)4fh
my opinion has undergone no,chaiige.
In view of the disordered condition of the currency
at the time, and the high rates of-ewwtoge, between
different parts of the country, I felt it
bent on me to present to the consideration ofyour
predecessors a proposition conflicting in nodegree
with the Constitution, or with the .rights of, the
States, and having the sanction—notii^detajl, but-in
principle—of someof the emm$ntmen who had pre-
ceded me hi the executive office. That proposition
contemplated the issuing of treasury notes of de-
nominations not less than Ave, nor more than ope
hundred dollars, to be. employed jn payment ef-fhe
obligations of the Government injieu of gold and
silver, at the option of the .public creditor, and tq fin
amount not exceeding $15,000,000- : It,was pro-
posed to make them receivable every where, and to
establish at various points depositqries.ofgold.susd
silver, to be held in trust for the redemption of sueh
notes, so as to insure their convertibility into,specie.
Wo doubt was entex-tained that sirch notes. wou}d
have maintained a par value -:with .gold and
silver—thus furnishing a paper ■ currency of equal
value over the Union,, thereby meeting the just,ex-
pectations of the people, and Adfilling (he titles" ofia
parental Government. Whether the depositories
should be permitted to sell or purchascbills.under very
limit ed restrictions, together with all iu other details,
was submitted to the wisdom of Congress, and was
regarded as of secondary importance. I thought then,
and think now, that such an arrangement wo\tld have
been attended with the happiestx-esults. The whole
matter of the currency would have heen placed
where, by the Constitution, it was designed to be
placed—-under the immediate supervision and con-
trol of Congress. The action of the Government
would have been independent of all corporations;
and the same eye which rests unceasingly on the
specie currency, and guards it against adulteration,
would also have rested on the palter currency, to
control and regulate its issues, and protect it against
depreciation. The same reasons which wouldforbid
Congress from parting with the power over the coin-
age, would seem to operate with nearly equal force
in regard to any substitution for the precious metals
m the form of a circulating medium. Paper, when
substituted for specie, constitutes a standard of value,
by which the operations of society are regulated;
and whatsoever causes its depreciation, affects so-
ciety to an extent nearly, if not quite, equal to the
adulteration of the coin. Nor can I withhold, the re-
mark, that its advantages, contrasted .with st bank of
the United States—apart from the fact that a bank .was
esteemed obnoxious to the public sentiment, as
well on the score of expediency as of constitu-
tionality—appeared to me to be most striking and
obvious. 1 he relief which a bank would afford .by
an issue of $15,000,000 of its notes, (judging from
the experience of the late United States Bank,.) would
not have occurred in less than fifteen years; where-
as, under the proposed arrangement, the relief
arising from the issue of §15,000,000 of treasury
noles would have been consummated in one year;
thus furnishing, in one-fifteenth part of the time in
which a bank could have accomplished it, a paper
medium of exchange, equal in amount to the real
wants of the country, at par value with gold and
silver. The saving to the Government would have
been equal to all the interest which it has had to
pay on treasury notes of previous as well as sub-
sequent issues; theieby relieving the Government,
and, at the same time, affording relief to the people.
Under all the responsibilities attached to the sta-
tion which I occupy, and in redemption of a pledge
given to the last Congress, at the close of its first
session, I submitted the suggestion to its considera-
tion at two consecutive sessions. The lecornmend-
adon, however, met with no favor at its hands.
While I am free to admit that the necessities of
the times have since become gready ameliorated,
and that there is good leason to hope that the coun-
try is safely and rapidly emerging from tire difti-,
culties and embarrassments which everywhere sur-
rounded it hi 1841, yet I cannot but think that its
restoration to a sound and healthy condition would
be greatly expedited by a resort to the expedient in
a modified form.
The operations of the treasury now rest on the
act of 1789, and the resolution of 1816, and those
laws have been so administered as to produce as
great a quantum of good to the country as their pro-
visions are capablc of yielding. If there had be«ii
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United States. Congress. The Congressional Globe, Volume 13, Part 2: Twenty-Eighth Congress, First Session, book, 1844; Washington D.C.. (https://texashistory.unt.edu/ark:/67531/metapth2368/m1/13/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.