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Cott ae
NATIONAL DANK & PUBLIC
REDIUT
xa
fn the House of R 0 :
Uniteds States, tac Natiopal Bank bill, af-
ter having been amended, re-amended, and
discussed until the subject was nearly ex-
re a
insertions
mises at this time,
“an instrument to raise money,
A 4 1¢heclaim for Treasury «notes,
mresentatives of the
em
was ‘ound, that the treasury notes (only
requiring, indeed, aj cash payment at the
distuiice of a year) to whomsoever they were
issued at the Treasury, and almost as soon
as they were issued, reached the hands of
the collectors in payment of debts, dutics,
Jand taxes : thus disappointing and defeat-
ino the only expectation of producive re-
venne. ;
Under these circumstances {which I had
the honor to communicate to the committee
of ways ‘and means) it became the duty
of this department, to endeavor to remove
the immediate pressure from the treasury
to endeavor to restore public credit, and to
endeavor to provide for the expenses of the
ensuing year, The only measures that oc-
curred to my mind, for the accomplishment
of such important objects, have been pre=-
sented to the view of cond tess The act
authorising the receipt
pavment of subscriptions fo a public loany
was passed, I fear, too late to answer the
purpose for which'it was designed It pros
little! relief, either as
or to absorb
which are
daily becoming due. Trom this cause,
and from other obvious causes,
“dend ‘on the other funded debt, has not been
SATURDAY, DECEMBER 17; 1814,
¥
IE =
of treasury notes in. Merit
the divi-
} > LAN Ab : od
LLEFONTE; (Pa.) NEXT DOOR SOUTH. OF THE BANK.
PILATE E IIL TEETI So SSE
No. 4
x
present class of creditors, than by the man- lieved deprive the government of every
ner of conciliating the favor of a new class* chance of raising money in any other ane
With these explanatory remarks, Sir, I DOS: : Hu
proceed to answer, specifically the ques-
rr yi . é pe Be a i
FIT ITLL E FP PILE LIL IIS ELLL TSS SASSI INES SSL ELSE ET ES FPF IT 2 TTI IIIT SILLS EE For \emi
A F his. 3 ¢ i
2d Iam of opinion that it will be ex+
tions which you have proposed.
tremely difficult, if not impracticable, to
1st. Iam of opinion that a considerable .get 44 millions of treasury notes, | form.
issue of treasury notes, with the quality of ing, with six millions of «peciay the cupital
being receivable in subscriptions to a na.
tional bank, will fave an injurious effect without depreciation. bs
upon the credit of the government; and al~
Because, if the subscription to - the bank
so upon the prospects of a loan for 1815. ;
becomes an object of speculation, the treas
Because it will confer gratuitousiy, an +8ury notes will probably be purchased at
advantage upon 2 class of new creditors, o-
ver the present creditors of the govern-
ver pass into circulation atall. = |
Because whatever portion of the tres
ry notes might pass inte circulation would
ment standing on a footing of, at least, equal
Because it will excite general dissatis-
faction among the present holders of the
public debt : and general distrust among
the capitalists, who are accustomed to ad-
the subscriptions to the bank, after arts had
been employed to depreciate their value.
Because it is not believed, that in the pre
vance their money to the government, sent state of the public credit, 44 “millions
Because a quality of ‘subscribing to the |
National Bank, attached to ‘Treasury notes,
exclusively will tend to depreciate the val:
at SA, 1 Ys Laity Aig har dl 31 ae 3 spe
lation. The only difference between the |
5 Ed ; 3a i yu Tiga Te aa 1 i
{reasury notes now issued & dishofiored, &
of a national Bank] into circulation, with of
gr
sug’
the treasury, and at the loan office, and ne-"'
be speedily withdrawn by the speculators in ‘
»
4
of treasury notes can “be sent into circu
$7
those proposed to be issued, consists in the ©
hausted, was on the 23d ule yecommitted
subscribable quality : but reasons have Atel
¢ On the 25th: the ve of all the public debt, not possessing that |
to. a sclect committee. | ¢ 28th t
punctually paid ; a Jarge amount of treasu-
: and whatever depieciates the val.
y
chairman of the cominittee reported the,
bill w ihout amendments 4nd laid before the”
house the annexed letter from the sccrotas=
vy of the tycasury. The hotse! alter spen-
ding the whole day
that it should not be read a third time! or
in other words, that the” bill should be'res
jected. hd ak aad
0 ank. Refios.
Treas
Sir—1 have the houor
lottery requesting, for
House of Representa-
(ives, an opinion on the following enquires.
1. The effects which a considerable 1s-
sue of treasury notes, with the quality of be-
ing receivable in subscriptions to a national
Bank, will have upon the credit of the go-
vernment ; and particularly upon the pros-
of a loan for 18135 ?
The practicability of getting 44 mili
ons of the treasury notes (forming, with 6
miiilions of specie, the capital fora national
Bank) into circulation without deprecia-
tion ?
y D hartménts Aov. 28, 1814.
¢he feceipt of your
2 crmmittee ol the
pe cts
lo
The enquiries of the comrhittee ~canhots
be satisfactorily answered in the abstract
but consi red in connection with the st:
of our finances atid the stale of the public
credit.
When I arrived at Washington, the trea
| sury was suffering under every kind of em-
barrassment. The demands upon it were
oréat in amount ; while the means to Sa-=
tisfy them, were comparatively, small ; pre-
carionsin the collection and difficult in the
application. The demands consisted of
dividends ‘upon the and new ‘funded
debt ; of treasury notes, and of legislative
appropriations for the army: the navy, and
the current service ; ail urgent and impot'-
tant. The means consisted, 1sty of the'frag-
Slat of hn authority ‘to’ borrow MONEY
when no body was dispose
‘3
(9718
1 to lend, and to
issue treasuty notes, which none but ncces-
ors in distress,
sitous creditors, or contract
or commissioners, qaurter masters and navy
as it were officially, ssemed
9d, of the amount of
through the United
southern and
een rendered
i
accents, acting
willing to acgept
bank credits scattered
States, and particularly In the
banks, which had b
pee, uselessy by the stoppage
specie, and the consequent
of transferring the public
Jace, to meet the public en-
place. And 5d, of
Le current supply of money froon the im-
tem: 1 (ties, 971d from the
gales of public lands, ¥ hich eased to be a
foundation of any rational e7stimate ori res
serve to provide even for the, dividends
tie. funded. fhebs when it
western
in a great dc
of payments In
impr cticability
funds from one |
gagements in another
S
t
posts ; irom
on
on.the billy decided.
the public credit.
té acknowledge”
ry notes has already been dishonored 3 and
Ale hopes of preventing any’ further injury
‘and reproach, in transacting the business 0
the treasury, is 100 visionary to afford a mos
men’s consolation. +
“The actual condition of the treasury,
Public credit depends
The usual
the value of
essentially on public opinion.
test of public credit, 1s, indeed,
the public debts “I'he facility of borrow
money is nota test of public.credit 3 for a
faithless government. like a desperate indi-
vidual, has only to increase the premium,
ing
according to the exigency, 1n order to s€-
cure a loan.
fested in every formyand in every direction
hardly permits us at the. present jnncture
Thusy-pubiic opinion, mani-
‘to speak of the existence of public credit !
and yet, it is not impossible, that, the govs,
ernment, in the resources of its patronage
and its pledges, might find the means of;
tempting the rich! and the avaricious to
supply itsiimmediate wanis :
“Bat when the wants of to-day are sup-
plied ; what is the new expedient, that
shall supply the wants o
a charter ol incorporation, it may
{to morrow 2, Ifit
18 NOW
then be'a grant inland ;
urable tracts of western wild, would
but after all, the
immeas
he exhausted, in successive efforts to. ob-
tain pecuniary aids, and still leave the go-
vernment necessitous, unless the founda-
tions of public credit were re-established
4nd’ maintained ! In the measures, there-
fore which it has been my duty to sug-
gest, I have endeavoured to. introduce a
Permanent planfor reviving the public cre-
dit, of which the facility of borrowing mo-
ney, in anticipation of set’led and produ tive
revenues is only an infident, although it Is
an incident as dursole as the plan itself.
The outline seémed to embrace whatever
was requisite, to leave no doubt about the
power avid disposition of the government,
in relziion to its pecuniary engagements ;
to Jiminish and not to augment, the amount
of public debt in the hands of individuals :
and create general confidence, rathér, by
he manner of treating the claims ef the
f
thus plicable to investments in the public stocks
deséribed will serve to indicate the state of has already in a great measure, been so
quality
ue of the public debt in this way, must ne- ready been assigned for an opinion that this
cessarily impair the public credit, i
"Because the specie capital of the ¢’tizens:
U. States, so far as it may be deemed ap-
in the cxperimeit, as seems requisite to
sore of the most interesting objects of the
government. : aay
; the holders ot the present debt
3
vested
différence does not afford such confidence
»
justity a reliance upon it, for accomplishing
I must beg you sir, to pardon the ‘hasté
will be enabled to become subscribers tothe in which 1 have written these g neral an-
swers to your inquiries. . But knowing the
importance of time, and feeling a desire to.
“ayoid every. appearance of contpibutiig fo
to the loss of a moment; 1 have chosen rathe
er to rest upon. the intelligence and candor
Bank, if that object should, eventually, |
‘prove desirable, without selling their stock
at a reduced rate, in order to procure the
whole amount of their subscriptions in trea- ,
sury notes: and a general depreciation in
: : . , es 2. vas, Of the ittee to enter
the value of the public debt will inevitabiy Tomimniiiee, than fo enter upon a move
laboredrigvestigation of the subject referred
to’ me, ™
ensue.
Because ‘the vety proposition of mak-
notes, “Shave the honor, &¢.
HUA DALLAS,
Wu. Lowspis, Esq.
ing a considerable issue of treasury
even with the quality of being subscribable
to 4 national ‘Bank, can only be regarded
as an experiment on which it scems danger-,
ous to rely, The treasury notes. must be 58 — sind a
purchased at par; Ww [When the motion was made in the
of creditors must bs created ; it may, or it
ith money; a new. set.
house to printithe above letter, 1t was op»
may not, be deemed an object of specula- posed by Mr. Fisk of New Fork, and fost.
tion by. the money holders, to subsciibe to
He said the committee fo Which tie “letter
the bank : the result ot the experiment -
cannot be ascertamed,
late to provide'a remedy, in the case of fail- ought. not io “be puinted.. It conveyed
ure ; while the credit of the government :
; ; ; truths relative to our treasury too humile
will be affected by every circumstance :
which keeps the efficacy of its fiscal o” iting and: portentous tobe made known
peraions in suspense or doubt. to the public, by which course they would |
Because the prospect of a loan for the necessarily reach the enemy. He had no
vear 1815, without the aid of a Bank is :
x Far 3aDKy 15. qoubt the letter would get to the public,
faint and unpromising ; except perhaps, so ior y
fav as the pledge ofa specific tax may suc- having been publickly read in the house
ceed ; and then it must be recollected, that and being
i
a considerable supply of money will be re- ter contained the truth and nothing but the
quired for the prosecution of the w
on the public journal. The lets
3% ar; be uth. Yet he ardently hoped its publica-
yond the whole amount of taxes to be levis . x3 :
tion would never receive the sanction of
ed.
: the housc ]
Because, if a loan for the year 1315 be
made to depend upon the issue of the trea
} vilrval 3 lo
s subscribable to a national bank, currently reported that Mr. Mason, late a-
it will, probably, fail for the reasons which +3 . .
: gent for prisoners, 1s to be nominated to
have already heensuggested If the loan
————
Letie:s from Washington state that it is
sury note
be independent of that operation a consider- the senate in a day or two, to the office of
able issue of treasury notes, for the purpose Secretary ofthe navy. It is also rumored
of creating a Bank Capital, ‘must, it is be- that Mr, Dallas will resign:
a ny : 5 Tag IE 10 98 Gis i
until it will’ bg téo had been addressed, had concluded that it