H. or R.] The Tariff, Manufactures, &c. [JAN. 18, 1833 He wished, at the proper time, to propose an amend ment to the bill, having for its object to impose the same duty on the raw materials, wool and cotton, as was to be imposed on cotton and woollen goods. The immortal Washington, when this Government first was indigenous, if of equal quality, rather than that of went into operation, had the power to make an unwrit- foreign growth? Labor was dear here, because laborers ten constitution, having all the effect of a written one. were proportionally few. Should not the produce of One of the powers confided to him was that of calling land be encouraged then, when, with the addition of h persons of high talents to assist him, as his cabinet coun- bor, it must give the greatest accession of wealth to the cil. He called that council; for what purpose? But as country? It should, in his opinion, have a higher protec ciphers to advise with him, and to have some agency in tion than iron. Why? Because iron was chiefly the prothe operations of the Government. And, from that time duce of labor. The wool, the cotton, and the sugar of the to the present, he believed that the members of the ca- country were the productions of labor and land combin binet had had and exercised such agency; although the ed; and a cent's worth of duty given to labor applied ta whole responsibility was not here ascribed to them, as it land, would give two cents worth of profit. was in England. There was a time, indeed, when four did not make one exactly; when the council went not exactly in unity or harmony: then the ministers could scarcely be held as responsible. But now, when all was concord and unity-so it was understood--in the cabinet, it must be supposed that they had an agency in the management of the affairs of the Government. It was not to be supposed that the Chief Magistrate did every thing with his own head or his own hands; in this respect the Government of this country was not an exception to all others. Was not this, then, a reasonable way of account ing for the direct and palpable way of accounting for the direct and palpable contradictions which issued apparently from one source, the hands of the Executive? However, this might be well enough. The Fox and Grenville administration did well enough in England; and a similar one, perhaps, might manage here. Mr. R. concluded his remarks by a summary of the positions he had maintained in the preceding parts of his speech. He thought that no more taxes should be raised than are sufficient to meet the exigencies of the Govern ment; that Congress had no right to take from one a to give to another-to rob Peter to pay Paul. To do this was only to disturb the equality of conditions, and make one poor and another rich, by legislation; all taxes ought to be imposed in a manner the least onerous to the pe ple. For this purpose, the taxes should be such that the people could either pay them or leave it alone, at their pleasure; such were taxes on articles which taste or pride --pride most of them--might induce people to par He would turn to a point of more importance. Would How were such taxes to be imposed? On such articles not South Carolina, if they passed the bill under consi- as they could make themselves better than they could get deration, retrace her steps? It was said that her con- them elsewhere. Then, at the same time they laid taxes, vention had adjourned-that her Legislature had adjourn with a view to raising a sufficient revenue, and no more, ed--that her law was enacted--and the means of carrying they might, at the same time, incidentally give protection it into execution ready to be applied--and that, there to American produce and American industry. W fore, there was no hope but that the sword must be taxes possessing those characteristics, would not South drawn. Was it so? Was it not in the power of the Ex- Carolina be content? Would not the American people, ecutive authority of South Carolina to stay its hand from one extremity of the country to the other, be con awhile? Was it not in the power of the Executive autho- tent? Would not their infant manufactures flourish as far rity of the United States to forbear awhile-that was to as they could, under the fostering care of the Govern say, forbear unless it was perceived that a direct force ment? It was not, however, healthy or proper for this was exerted in opposition to the laws. He did entertain country to undertake to rival England in the cheapness a hope that this was possible; and he was the more anx- as well as the quality of her articles. In this country, ious to pass this bill, because he did believe that the existing laws were constitutional, and that it was the duty of the Executive of the United States to see that they are faithfully executed. South Carolina, it was said, believed that they were not constitutional; but should she not, situated as she was, in a questionable, a doubtful position, make the best of her argument-should she not, and would she not, wait awhile to see if a conciliation might take place? He was not induced to hope this, because he believed South Carolina had run mad. If he could believe that that State was governed by mad men, he should have no hope; but when he saw she was governed by rational men, who must perceive that this case, to make the best of it, was a doubtful one, he did hope where the people were thinly scattered over a vast extent of country, it was not necessary that they should rival, n the prices of their workshops, that island, which had been so aptly called the workshop of Europe. He hoped er: couragement would be given to the manufacturers of this country, to those the encouragement of which would really benefit the country, but not to those which were uncongenial to their soil and climate, and uncongenial also to their republican institutions. FRIDAY, JANUARY 18. THE TARIFF, MANUFACTURES, &c. The resolution offered by Mr. ADAMS, and under disthat she would wait, and let those doubts, if possible, be cussion yesterday, again coming up as the unfinished removed by the withdrawal of the offensive law. morning business, He had said yesterday that he was anxious that this bill Mr. HOFFMAN resumed the course of his remarks in should pass; but that there were some modifications which reply to those of the mover, arguing to show that the re he should require to be made to it before he gave it his solutions were unnecessary, and were moreover offered cordial assent. It was, that a tariff should be so formed too late to be of any service. He was authorized to say as to meet the condition of the country, and bear on that the bill to reduce the duties on imports met the ap all with an equal hand; that it should contain such pro- probation of the Secretary of the Treasury. If the gre visions as would give at least equal protection to the tleman should insist on his call, it would no doubt receive products of the soil as it gave to the products of la- an answer, amounting in substance to what Mr. H. ha In this country land was the cheapest article, be- just stated. The Secretary might perhaps suggest so cause the supply was greater than the demand; land, slight modifications, but Mr. H. did not believe that a then, was their great staple. In England they have more written answer to the call would be of any great importpeople than they have land; of course, land was there the ance to the House. dearest article-labor the cheapest. Was it not the poli bor. The second resolution called upon the President to fur cy of all Governments to encourage that which was its nish to the House a list of such articles as be considered in and it un JAN. 18, 1833.] The Tariff, Manufactures, &c. [H. of R. dertook to suppose that the President meant to declare of the words; and the only question presented to the that all protection must ultimately be limited to these arti- House, and to the country, was, whether there should cles alone. As all could read the message for themselves, be protection, or whether there should be none. and as his meaning was too clearly expressed to be well Mr. A. had made this explanation only because he misunderstood, Mr. H. thought it sufficient to say that wished the House not to misunderstand the drift and inthe President had uttered no such sentiment. Be that tention of what he had said, in consequence either of as it might, a discussion as to what the President's opin- what had fallen from the gentleman from New York, [Mr. ion was, could not, he should suppose, be very needful. HOFFMAN,] or, what was of much more consequence to Would the House of Representatives ask the President him, the misrepresentation (unintentional, he had no of the United States to furnish them with a list of articles doubt) of the resolution he had offered, by inserting which he deemed necessary in time of war? Could it be "might" instead of "most." believed that that House would gravely, and in its le- Mr. STEWART considered the second resolution as in gislative capacity, make such a call? Of what use could a great measure superseded by the first: if the first should it be? How would it aid that House in the laying of tax- be fully answered by the Secretary, there could be little es? How could a catalogue of such articles be very ma- advantage in pressing the second. And besides, he beterial to their legislation, in rendering the burden of tax-lieved the President had just now quite enough to do in ation as little oppressive to the people as possible? When giving his attention to other matters of a more grave and the President spoke of articles indispensably necessary important character. He was in favor of making the call in time of war, the general acceptation of his meaning on the Secretary of the Treasury. The answer to that would of course be, that he had reference to arms, and call would give the House some necessary light in voting to the munitions of war. The gentleman from Massachu- on the bill, for they were not all in the condition of the setts supposed that blankets were among these indispen- gentleman from New York [Mr. HOFFMAN] who professed sable articles, but the judgement of the House, so far as to have all the light that he needed to guide his vote. blankets of a certain price were concerned, had put none Besides, some little time ought to be afforded them before under a duty of more than five per cent. He hoped that they were called on to act on a measure of such vital imthe judgment of the House, thus expressed, would ena portance. The House had been urged by the gentleman ble the gentleman to arrive at a correct conclusion in from New York over the way, [Mr. VERPLANCK,] imme. respect to that particular article. diately to vote for a bill which subverted the whole policy, Mr. H. would not examine that reasoning, according to and overturned, uprooted, and destroyed the vital inte which it turned out that every variety of clothing and rests of this country-of the gentleman's country. He provisions, and all the ways and means by which each of wished the gentleman would give them a little more light those articles was made, constituted an essential in war. before he insisted on their action. Mr. S. would like to He should content himself with saying that the language hear some reasons from the gentleman why that House used by the President was sufficiently plain and unequi- was called upon so suddenly to repeal the act of the last vocal. It related obviously to arms and munitions of war, session; an act which had passed in both Houses by a to those things which were necessary only to military majority of two to one; an act for which all the States operations, and were not required by the civil wants of south of the Potomac, except two, had given a majority society. He thought, to say the least, that the House of their votes; an act which was agreed to on all sides as would not give any great evidence of its own sagacity by a final compromise of the claims and interests of the South asking the President of the United States. He hoped, and the North. This law they were now called on to reas well for the sake of the character of the House, and peal; to repeal it without a reason given; ay, and to do of respect to the Executive, as to the good sense of the more, for a repeal of that law might amount to a virtual country at large, that the call would be abandoned by repeal of the Union. He advised gentlemen to retain the gentleman, and, if not, that it would be negatived by the friends of the Union they now had, and not lose the House. He concluded by asking that the question be them in a vain attempt to conciliate others. If in put upon the resolutions separately. that hopeless attempt they should disaffect the real friends Mr. ADAMS observed that there seemed to be a ge- of this Union, they might bring the Union itself into the neral misunderstanding, both as to the object sought by greatest danger. The gentleman from New York on his the resolutions he had offered, and of the argument by left [Mr. HOFFMAN] affected to think there was no great which they had been sustained; and he found that the need of discussion before passing this bill. Yes, that newspapers had contributed to sanction this mistake, and same gentleman who had voted for the tariff of 1828, spread the misrepresentation through the country. By who at that time had made a great ado, and had loudly putting the word "might" in place of the word "must," demanded a high duty upon wool, seemed now to think in giving his second resolution, they had completely that the less that was said about wool the better. He changed its whole meaning. The alteration of that single word occasioned a revolution in the whole subject; it gave a totally different bearing to the passage quoted from the President's message, as well as to his own resolution, and to his whole argument. The gentleman from New York had said that Mr. A. misunderstood the President. He judged of the President's meaning from the natural import of his words. His words were these: "Those who take an enlarged view of the condition of our country, must be satisfied that the policy of protection must be ultimately limited to those articles of domestic manufacture which are indispensable to our safety in time of war." This amounted to a nullifying and annihilating of the protective policy in this country. No protection whatever was ultimately to exist but upon articles indispensable in time of war. That was the sentiment expressed; if the gentleman could make any thing else of it, he was welcome. But that was the obvious and natural import had light enough; he was ready to vote; inquiry was useless; discussion was mere waste of time. Now, for Mr. S.'s own part, he wanted a little more light, and he sincerely wished if the gentleman had so much, that he would at least impart some of it to the House: for his own part he confessed himself to be in Egyptian darkness as to the reasons for this measure. He saw that the gentleman shook his head when the part he had taken in favor of the high tariff of 1828 had been alluded to; yet all would hear him out in the assertion he had made, that that same gentleman had made a great ado on the subject of wool, and could scarce get a duty high enough. gentleman was one of the most zealous, most ardent, most sincere; no, he would not say sincere, but certainly one of the most zealous advocates for protection: the farmers must be protected; wool was raised by the farmers; wool must be protected; it must be protected by a duty of a hundred per cent.; nothing less would be sufficient; wool was a product of agriculture. The gentleman The H. or R.] per cent. of the resolution before the House. The gentleman had no right to forestall the Secretary of the Treasury on a question whether a certain resolution should be adopted. The CHAIR replied that the nature of the resolution opened the whole subject for discussion.] Mr. STEWART resumed. The gentleman from Mas sachusetts, he said, could not perceive how the revenue was to be reduced six millions by reducing the duties as proposed. was then a great friend of the agricultural interest. Pray, ducing the revenue had no connexion with the adoption how came it to pass that the gentleman now had struck his flag? Not a word about wool, not a syllable about the protection of the agricultural interes'; the whole doctrine must be given up, and, instead of the gentleman's hundred per cent. on wool, he was willing to cover it with a pitiful duty of fifteen per cent. now! What had wrought this change? Why was the gentleman's favorite interest now to be sacrificed? The gentleman was then quite indignant. What, import wool from England? Shocking! He was too much of an American to wear a coat that was made of Here Mr. ADAMS asked leave to explain. He had foreign wool. But what said the gentleman now? He not said that it was impossible to reduce the revenue by had light enough. He was ready and anxious to put wool reducing imposts; but what he had said was this: he was at fifteen per cent. The Secretary of the Treasury unable to see how the revenue was to be reduced sit had himself voted for the law of 1828. What had millions "without prejudice to the just claims of existing revolutionized that gentleman's views? He was now said establishments." He did not see how the Secretary coud to be in favor of this bill; yet he had ably advocated the carry into effect that which he said he could; and for that whole policy, and the very measure he was now endeavor- reason he had offered a resolution asking him how it was ing to put down. The gentleman from New York [Mr. to be done-on what articles the reduction was to be HOFFMAN] had just said that this House had pronounced made, so as not to prejudice these just claims. its judgment against blankets by reducing the duty to five Mr. STEWART proceeded, and observed that he con Was that the judgment of the House? The curred with his friend from Massachusetts, that the Se gentleman knew better. He knew, and the House cretary could not do this in the manner now proposed. knew, that that reduction had been made as an act of con- But Mr. S. could tell the Secretary how the reductica cession. The duty of five per cent. on blankets never might be effected without in the least prejudicing the could have got a place in that bill but as an act of conces-protection of domestic industry, but, on the contrary, sion to the South. This important branch of industry, as as to advance and promote the interest of manufactures, well as the agriculture of the country, had been sacrificed increase the wealth, and establish the independence of the as a peace-offering: was this the judgment of the House country. If he was asked what was the way to do tas, against blankets? If the gentleman doubted their being he would reply, let the President or his Secretary first s essential in time of war, let him look back to our last lect the articles of necessity to the country in war, and struggle with Great Britain, when Congress had been such others as the country had the capacity of manufac obliged to take off the non-intercourse with England in turing for itself, such as iron, woollens, cottons, &c. Har the midst of war, that we might get blankets for our ing selected these articles for permanent protection, then perishing soldiers and our shivering Indians. let him increase the duties gradually, till the foreign ar The gentleman from New York [Mr. HOFFMAN] had ticle was excluded, and this source of revenue thus e said that the House would manifest a great want of saga- tirely dried up. This was the way to reduce the recity in calling upon the Secretary of the Treasury for in- venue. To diminish the quantity of goods imported, formation, when they were possessed of so much them not to increase it. Diminish it by raising duties, not inselves. But Mr. S. thought they would show less in crease it by lowering them; give full protection; say to turning round and eating up, and swallowing down with- capitalists, go to work, create a market, create competi out chewing, the bill which they themselves had a few tion, bring down prices. This was the true policy. Com months since passed by a majority of two to one. And petition was the lever by which prices were to be brought for what? No one knew: at least no one had pretended down. Go on, fill the market; promote agriculture br as yet to tell. He thought this would evince, if not a want furnishing a market for its products. Let the increase of of sagacity, at least a great want of consistency and firmness. duties be very gradual. If it rose by only two or three The professed object in view was to reduce the reve- per cent. a year, it was sufficient. Only give security But on that subject Mr. S. concurred entirely in to capital. This was the way, and the only way, to de what had been advanced by the gentleman from Massa-crease the revenue without prejudice to existing esta chusetts. The Secretary had declared that the revenue blishments. What had given our people cotton goods might be reduced, by the amount of six millions of dollars, so low a price? It was the operation of this very principle. without prejudice to the just claims of existing establish- It was the realizing of this very scheme. Cottons were ments. The idea of effecting a certain reduction of revenue by a given reduction of duties, predicated on the imports of any one year, was utterly fallacious and delusive. The quantity and kin's of imports were subject to immense fluctuations. For instance, in the year 1830, our imports had been 70 millions; and in the very next year nue. they rose to 103 millions. the only article of domestic industry that were fully protected in 1816, and look at the result; last year the country had exported coarse cotton fabrics to the amount of a mil lion and a quarter of dollars. Such were the effects of skill, and of the improvements in machinery. The same course applied to woollens would be followed by the tions as to increase be based with safety on the results of facture one as the other. The same policy would be pre How then could any calcula- same results. The country had as much capacity to manuany single year? Here was an increase of one-third in a ductive of the same effects. Indeed, woollens had in single year. If gentlemen succeeded in reducing the creased more rapidly than cottons ever did, since ther duties as was proposed, he should not wonder if the re- protection in 1824. The woollen manufacture was but venue should be doubled for a short time. This standard eight years old in this country, while the cotton man of measure was perfectly fallacious; nor could the mere facture was of sixteen years standing. This was, in M reduction of duties be relied upon to reduce the revenue. S.'s view, the true American policy. But there was a mode in which the Secretary might reduce the revenue without in the least affecting the prin- to the power and wealth of the country. Let him on Let the Secretary exclude imports, and he would a ciple of protection. duce and destroy the interests of home industry, and [Here Mr. CARSON interposed, and called Mr. STEW-check its progress. Agriculture and manufactures were mutually connected; they would both sink together u Being desired by the Chair to state his point of order, der the system now, brought forward by the gentleman Mr. CARSON said that the gentleman's plan for re- from New York. ART to order. JAN. 18, 1833.] The Tariff Bill. [H. OF R. From the three articles of woollens, cottons, and iron, by his able colleague on the Committee of Ways and this country had, last year, derived a revenue of thirteen Means, [Mr. INGERSOLL,] who had alone dissented from millions. The whole amount of goods we ought to have the report and bill presented by the rest of the commanufactured among ourselves. Of the thirty-seven mil-mittee. lions worth of iron, woollens, and cottons imported, three- The ground of the argument was this, that whether the fourths, twenty-seven millions of its value at least, con- plan of finance now proposed was good or bad, the presisted of the labor, fuel, and subsistence of British work-sent was not the time for financial reduction: that the men, and the productions of British farmers. [Here the hour expired, and the debate, was suspended.] The House then went into Committee on the state of the Union, Mr. WAYNE in the chair, and resumed the subject of the TARIFF BILL. treasury still required, for some years, the aid of the higher duties and large income provided for by the exist ing laws: that, in fact, at the expiration of the last year, the treasury was left not only empty, but subject to a heavy charge of debt, without the means to meet it. It had been said, that, on the 1st January, 1833, the only remaining funds in the treasury were the million and a half which had, year after year, figured in the reports Mr. ROOT resumed the course of his remarks in favor of the Secretary of the Treasury as unavailable funds, conof the bill, (as given above.) When he concluded, sisting of the paper of broken State banks; whilst the Mr. VERPLANCK rose. He began by regretting the treasury was still subject to various heavy demands. course which the discussion had taken; and that the op- These were, first, seven millions of funded debt; next, ponents of the bill had not complied with the invitation about five millions and a half of unsatisfied appropriations, he had given, at an early period, in behalf of the commit- for various purposes, made during the last year; and, tee which had reported it. It was their wish to have taken thirdly, about seven hundred thousand dollars, paid by up the bill, section by section, and item by item, so that the Government of Denmark as a compensation for spoupon any motion to amend, or any objection from any liations on our commerce, which was merely a temporary quarter, such defence or explanation as the occasion might deposite in our treasury, to be paid over to the merchants calt for, could be offered by the committee, and for this when their claims were adjusted. they were fully prepared. Unfortunately, as Mr. V. Let us see, said Mr. V., how this matter stands. And, thought, for a fair consideration of this bill, a long, ar- first, as to the funded debt. This the Committee of Ways dent, and desultory debate had been excited, by those and Means had considered, as they stated in their report, who were adverse to its whole policy. In the discussion, to be fairly liquidated, by setting off the stock owned by upon a motion to strike out the duty on teas, the great the Government in the Bank of the United States. This principles which had been so often agitated in the present, stock, at the market price, somewhat exceeded the preas well as in many a former Congress, were again drawn in- sent amount of the debt due by the nation. It also proto debate. In addition to this, almost every item of the bill duced an interest, and was likely to do so, during the conhad been touched upon in some way or other, and tran- tinuance of the Bank charter, of about one hundred and siently attacked; woollens, and iron, and cottons, and sixty thousand dollars annually, above the interest payatobacco, had their turn; and my distinguished colleague ble on the national debt. from New York, [Mr. Rooт,] whom I have known for years as the champion of wool, had just driven his flock of sheep down from his Delaware mountains into the throng of the debate. It had been said that the Bank stock could not be sold without glutting the market; thus depreciating its value to the Government, and ruining individual stockholders. Certainly this might be done, if all branches of the GovIt is difficult now to reply to all these objections in a ernment were so disposed; but it was equally certain that manner to be of any practicable use in deciding these it would not be done. It would be very easy to empower several points. They must, if we proceed in the bill, come the Secretary of the Treasury to dispose of this stock at up in detail, and the committee, if called upon, will then a price not less than its true value, and under such reendeavor to show the grounds upon which the several strictions as would prevent any fluctuations in the stock rates in it have been fixed. How it was, for instance, that market, injurious to either public or private interests. woollens, which it was said had been unreasonably re- The Bank itself might be authorized to purchase the duced, in comparison with other articles, had, in fact, no stock, and it might be made the interest of that institution small compensation for that difference, by a reduction of to do so, as enabling it to operate, for the remainder of the duties on the raw material, oil, and dye stuffs. How its charter, upon smaller capital, and, consequently, with it was, to take another instance, that the duty on tobacco, greater profits. What restrictions, as to the sale, might which had been complained of as an excessive protection be necessary, would be for the wisdom of Congress to of Southern interests, was, in fact, so purely nominal up- determine hereafter. But if, from any cause whatever, on an article of which we exported five millions of dol- no such sale could be effected, still the funded debt unlars worth a year to foreign markets, that the committee paid was substantially provided for by the Bank stock. had not thought it worth while to legislate specially about There was an income of nearly 500,000 dollars a year it, and had, therefore, left it subject to the operation of during the existence of the Bank charter, to meet the former laws. If any gentleman wished to introduce an payment of the interest on the debt, amounting to less amendment on this specific point, it would probably meet than three hundred and fifty thousand dollars a year; with but little opposition, and should it become part of a and, in the meanwhile, until the principal of the Bank law, it would probably produce just as little effect. stock was refunded, the payment of the debt might be Waiving all these details, as well as the discussion of anticipated, and extinguished, in whole or in part, by the those general principles of constitutional law and public application of such balances as would remain in the treapolicy, which would find a more appropriate place when sury at the end of each year. For I think it may be made the bill was reported to be finally acted upon in the to appear that, in all human probability, under the operaHouse, if it should have that good fortune, Mr. V. said tion of this bill, should it become a law, there will be such it was his intention to endeavor to come back to the ques-balances remaining unexpended in the treasury. Here, tion more immediately before us. He would, therefore, then, there is no debt unprovided for, at which the most endeavor to reply to some of the objections which had timid political economist need be alarmed. the most direct and practical bearing upon the details of The second difficulty raised is of a more plausible chathe bill. Among the most formidable of these, were the racter. I mean that founded on the unsatisfied appropriafinancial difficulties which had been so ingeniously raised tions for former years. Of the moneys appropriated duVol. IX-71 H. OF R.] The Tariff Bill. [JAN. 18, 1833. ring 1832, for the service of that year, there are still five ment are trifling in the extreme. In the present year, it millions and a half of unsatisfied appropriations. These so happens that, to meet the five millions and a half of are debts, it is said, for which the nation is liable; that we the unsatisfied appropriations of 1832, there is a nett owe the money; that there can be no higher claim than revenue accruing from the custom-house bonds, given in an appropriation by Congress; that we should be always 1832, and actually falling due weekly and daily during ready to meet these demands, however and whenever the present year, amounting to fifteen million six hun they come; and that the treasury is not now in a state to dred thousand dollars. Would any prudent man, in pri do so. vate life, under similar circumstances, consider his debts Let us again look at the true state of the case. Thirty unprovided for? Ought any statesman, under such cr years' experience, during peace and war, has shown us cumstances, wish to tax the people for the sake of accuthat there are, of necessity, in every financial year, cer- mulating money in the treasury? The policy of storing tain portions of the appropriations which will not only not up treasures of gold and silver, for future uses, is that of be paid during that year, but, in fact, from the mode of a past age. We now live in what one of our own poets, expenditure, can never be payable until late in the next. who is a man of business as well as a poet, has happily These are of various kinds, and it would weary the pa- termed "a bank note world," in which, though there is tience of the committee were I to enumerate them all. doubtless too much paper, yet the place of Government A considerable proportion of them are in the naval ser-hoards of old gold and silver is well and safely supplied vice. A large amount of the sum appropriated for the by commercial securities or custom-house bonds and de gradual increase of the navy, is applied to contracts for posites. This is no new doctrine: it is the settled policy cannon, copper, and other materials, and for frames for of our Government. It was originally recommended and frigates and seventy-fours. These contracts, of course, enforced by the late Mr. Lowndes, and was finally and take a considerable time, often a year or more, for their fully carried into effect by an act passed about four years completion, and the payments are consequently deferred ago, repealing the old provisions for keeping a surps until that period. So in the large annual appropriations in the treasury, and authorizing the head of that depart for pay afloat in the navy, two-thirds, on an average, of ment to apply, at his discretion, the whole of the unes such appropriations, applicable to distant squadrons, is pended balances, at the end of each year, to the payment never payable until their return to the United States. So of the public debt. It is by the judicious exercise of this also in contracts for the army, for cannon, provisions, power that the extinction of the debt has been so rapidly clothing, &c., the money is not payable until the contract hastened. is fulfilled, and a large proportion of these are not payable Let us now, leaving these general views of the sub until a year after the nominal appropriation is made. ject, see their results in an estimate of the revenue and Thus, a portion of the actual appropriations of every year expenditure for the next year, under the contemplated are but nominal debts during that year, and remain so tariff. until they become earned and payable in a succeeding The nett revenue actually accruing from It is due to candor to allow that, owing to the protracted session of the last summer, and the late period at which some of the appropriation bills passed, this amount is something greater than usual during the present year. But it is asked, is it not the part of a prudent statesman to keep always a sum in the treasury to meet these demands, which will certainly come at some time or other? Would not every prudent man do so in regard to his own affairs? Would such a man trust to contingencies to meet demands which he knows must be paid in three, six, or nine months? Certainly he would not. Neither does the Treasury of the United States. Nor yet is it obliged to keep a large sum of money lying unemployed, and for this simple reason: if there is always a certain amount of the appropriation of one year remaining to be paid in the next, there is also always a much larger amount of revenue earned in the one year, which, in consequence of our credit system of revenue, is not paid until the next. Under the former system of long credits, which is still partly -in operation, two-thirds of the revenue earned in any one year, and secured by the best commercial security, falls due in one year, and is paid in the next. Under the shorter credits of the act of 1832, this proportion is altered; about one-half falling due within the year of importation, the other half in the next. Many years of custom-house experience have shown us that these securities are perfectly to be relied upon; and that even during the most sastrous periods of trade, the losses to Govern-I the importation of 1832, is calculated at $15,660,000 $3,915,000 586,000 3,329,000 $18,989,009 Deduct, for return duties, under the eigh- Add nett duties accruing in the remainder Leaving as the nett revenue from the cus- Add public lands, bank dividends, &c. For the amount of all estimated appropria Leaving a balance of 2,500,000 $16,489,000 5,882,000 $22,371,000 3,000, fo $25,571,000 18,330,000 $7,041,00 |