tion, without which, he must feel doubtful what course to take. He, therefore, asked the yeas and nays on the motion to amend.

The call being sustained, the question was taken on the amendment offered by Mr. BERRIEN, and decided in the affirmative.

MONDAY, MARCH 3, 1828.

ON THE PUBLIC DEBT.

On motion of Mr. BENTON, the Senate proceeded to the consideration of the following resolution, submitted by him on the 26th ult.

"Resolved, That the Committee on Finance be instructed to inquire whether any error has occurred in the construction of the fourth section of the act, entitled "An act to provide for the redemption of the public debt," passed the third day of March, 1817, in reference to the amount of surplus revenue to be retained in the Treasury; and, if so, to report an amendment for restoring the section to its true intent and meaning.

Also, That the same Committee be instructed to inquire into the expediency of so altering and amending the same section (if no error be found in the construction thereof) as to reduce the amount of surplus revenue required by that section to remain in the Treasury, from two millions of dollars, to one million or less.

"Also, That the same Committee be instructed to inquire into the expediency of so altering and amending the fifth section of the same act, as to invest the Commissioners of the Sinking Fund with a discretionary, instead of a limited authority, in making purchases of the public debt, at its market price, whenever, in their judgment, such purchases can be made beneficially for the interests of the United States, and when the state of the Sinking Fund and existing engagements will permit them to do so. "Also, That the same Committee be instructed to make a report to the Senate, showing within what time the present debt of the United States may probably be paid off; and upon what articles, and to what amount, the present duties may then be reduced or abolished, consistently with the general interests of the whole Union."

[MARCH 3, 1828.

duced, in the course of the first quarter of the ensuing year, to less than two millions; so that a reservation of two millions, at the rise of Congress, is amply sufficient to meet them. The difference of the two constructions is, that, by my construction, there must be a surplus of two millions in the Treasury before any thing can go to the Sinking Fund; by the Treasury construction, there must be a surplus of about four millions first. This construction is clearly at war with the words of the statute, and still more with its plain intent and obvious meaning. Its intent was to hasten the extinction of the public debt, and for that purpose to prevent a single idle dollar from lying in the Treasury; but this construction leaves two millions idle in the Treasury, or rather in the Bank of the United States, idle to us, though it may be productive to that institution, while the People of the United States are paying its interest, equal to $120,000 per annum, to the public creditors.

Mr. B. entered considerably into detail, for the purpose of showing the nature and amount of these unexpended balances. He said they existed in all Governments, and must necessarily exist to a greater or less amount, according to the magnitude of their receipts and expenditures. To illustrate this, he would suppose that the present year was the first of the existence of this Government, and that the appropriation for its service was ten millions of dollars. Now, it would follow, of necessity, that the whole amount of this ten millious could not be paid out in the Distance alone would prevent some course of the year. demands from getting in; casualties and accidents would prevent the regular arrival of others; defective vouchers, or press of business in the offices, would prevent some from being adjusted, for weeks, or months, after they came in; in some instances the service could not be rendered, the work could not be done, the contract could not be performed, for which the money was to be paid, until after the lapse of the year; and in many cases, the amount ap propriated, would be more than enough, and would leave a balance that would not be called for at all. From all these causes, it would certainly happen, that a considerable portion of the ten millions voted for the service of the year, would remain unexpended at its end, and so on, The resolution being read, Mr. BENTON rose, and ad-year after year, as long as the Government existed. The dressed the Senate. He said that the first branch of the re-history of our own Government shows that these balances solution went upon the supposition that there was an error in the construction of the Sinking Fund Act of 1817 and that he might avoid all occasion for misapprehension, here or elsewhere, he would say at once, that this error, if it existed at all, was of older date than the existence of the present Administration; and, of course, that the inquiry that he proposed to institute, whatever might be its result, was not intended to have any bearing on the conduct of gentlemen now at the head of affairs. He believed, himself, that the error existed, that it was injurious to the public service, and that it was the duty of the legislative department of the Government to correct it. The fourth section of that act directed, that, whenever, ," "in any year," there should be, "at the rise of Congress,' a surplus in the Treasury of more than two millions of Mr. B. said, that the manner of stating the public ac dollars above the appropriation for the service of "such year," that all the excess above that sum should be forth-counts at the British Treasury, shewed the nature and with paid to the Commissioners of the Sinking Fund, to amount of these balances more plainly than they are seen be by them immediately applied to the purchase or re-in our annual Treasury Reports. The English used three demption of the public debt. The words of this section, columns, we but two. said Mr. B. are as clear and positive as words can be, in limiting the amount to be left in the Treasury, to two millions of dollars, over and above the appropriations for the year; but the construction which has been put upon them, as we see from the annual Treasury Reports, makes these two millions to be exclusive of the unapplied balance of the previous year's appropriations. These unWith respect to these balances, Mr. B. said they amount applied balances usually amount, at the end of each year, o upwards of three millions of dollars, and are usually re-ed to a large sum, constituting a standing deposite

amount to upwards of three millions of dollars; and they are always considerably reduced in the first quarter of the ensuing year, so that two millions at the rise of any ses sion of Congress, is an ample allowance to meet them, It was upon the knowledge of these facts, that Me Lowndes, the able and accomplished author of the Sink ing Fund act of 1817, fixed upon two millions for that purpose; but even this I hold to be an unnecessary pro vision; for the annual appropriation of another ten mil lions before the rise of Congress, for the new year's ser vice, would leave another unexpended balance of three millions to meet that of the preceding year; and so on, as long as the Government lasted; at the end of which, and not before, would the two millions be wanted to pay off the outstanding claims.

In the British account, the first column shewed the object of the appropriation; the second shewed the amount appropriated; the third, the amount In ours, we only see the object of the appropri paid out. ation, and the amount paid out. The difference is, that in the British account, you see the balances in detail, upon each separate item; in ours, you only see it in gross, and that some where else, in the body of the report.

#3, 1828.]

statutes?

Our

which had the keeping of the public money, and | The limitations defeat its intention. The Commissioners nly yielded a handsome profit to that institution. are restricted from purchasing the three per cent. stocks gland, while the principal disbursing officers were until they fall to sixty five dollars for a hundred, and the own Treasurers, the profit on the keeping of these six per cents until they are at par; and the four and a ces, was a perquisite of the office, and quickly made half and five per cents they cannot purchase at all, bertune of the incumbent. The elder Mr. Pitt, when cause they have been created since the passage of the is Paymaster of the forces, about the year 1740, was act, and are not included in it. The three per cents are irst who refused to appropriate the profits of these now at 85, and will not fall lower except upon the pros:es to his own emolument, and accounted for them pect of being paid, (for the value of stocks is now in proGovernment. The average balance in the Pay-portion to their duration;) the six per cents will never be r's hands, was then about 100,000 pounds sterling, at par; and the four and a half and five per cents are, terest about four per cent.; so that Mr. Pitt gave up some of them, irredeemable for seven or eight years to 4,000 pounds per annum, which any banker would come. In the mean time, it is certain that the means of given him for the deposite and use of his balances. the Treasury will be competent to the extinction of seer times, when the financial concerns of the Gov- veral millions of debt more than is redeemable, and, unent were so much increased as to swell this balance less the Commissioners of the Sinking Fund have authoriillion sterling, Mr. Burke, being Paymaster of the ty to purchase at the market price, this large accumula, followed the example of Mr. Pitt, and accounted tion of money must either lie in the federal Bank, as a Government for the thirty thousand pounds per an- gratuitous deposite, or be lavished upon objects which which it commanded from the bankers. At present, might not be thought of except for this tempting pile of ank of England keeps the Government money, and money. The question, then, for Congress now to decide, gregate balances amounted some years, to eleven is, whether this accumulation of money shall go to the ns, equal to double the amount of our whole reve- bank for nothing, or be lavished upon unknown and unWhether the bank paid interest on so large an knowable objects, or be applied to the reduction of the nt, he knew not, but he did know that the Bank of public debt in the only practicable mode, that of purited States paid nothing for the use of the public chasing it up before it is redeemable, at the market price. y in its hands; he believed there was often five or My own opinion is decidedly in favor of this last alternaAllions on hand, from the collection of the public re- tive. I believe that our Commissioners may be safely e; and he submitted it to the Senate to say, whether trusted with this authority. The British Commissioners as right or excusable, to augment that great and gra- have exercised the same authority since the first estabus deposite, to the amount of two millions more, by lishment of their Sinking Fund in 1816: they have purlescing in an erroneous construction of one of our chased twenty times the amount of our present debt, and have never been accused of abusing their trust. Commissioners must be equally worthy of public confidence. They consist, and must consist, of men who cannot be presumed to lack discernment to see, or integrity to prefer the best bargain for their country. They are gentlemen who fill, and must fill, the highest offices of the country--the Vice President, the Chief Justice, the Secretaries of State and Treasury, and the Attorney General. An objection to conferring this authority on such a body of men, cannot be an objection to them, but an objection to the object of the authority; that is to say, to the payment of the debt itself. That there are persons who will make that objection, is beyond question. I speak, not of Senators nor of individuals, in or out of this Chamber, but of numerous and powerful classes of the community, whose sentiments are known to me. There are such classes, and I will specify them. 1. The holders of the debt are against its payment, because they wish to live at their ease upon the interest, and have the whole country bound and mortgaged to them for the ultimate payment of the principal. 2. The inhabitants of the pla ces in which the debt is owned are against it, because it has drawn anhundred and fifty millions of dollars into their neighbourhoods, and is still drawing on at the rate of three millions per annum. 3. Some disinterested people are against it, because they are afraid that foreigners will carry off the twenty millions owned by them, and make a dearth of money at home; as if the place of this twenty would not be supplied by the forty millions paid to domestic creditors, and which would then come into circulation; and as if the foreigners had not already three times carried away the amount of their capital in interest, and would again carry off its amount, in the same way, in every successive period of sixteen years, until the capital was paid! 4 Another class is opposed to it, because they look upon a public debt as auxiliary to the strength and duration of the Government, by interesting the moneyed interest, and binding them to its support. This, Mr. President, is a very ancient doctrine, but not without its advocates in modern times. It is the invention of a crafty Greek, who had to make up in fraud what he lacked in force; Ispeak

. B. proceeded to the second branch of the resoluwhich proposed to reduce, or to repeal entirely, the ation of two millions of dollars, if the construction ntended for was not adopted. If his construction lopted, and the act of 1817 amended accordingly, he reservation might remain to pay so much of the nding claims of the previous year, as remained unt the end of each session of Congress. But, if that | ruction should not be adopted, and the Treasury ce should continue, of reserving this two millions, ition to the unexpended balance on hand, then the ion would present itself, how far it was proper or able to leave this two millions as a permanent and itous deposite in the Federal Bank? He conceived ld be neither proper nor justifiable to make such profitable disposition of so large a sum of the public y. There was no necessity for it, nor any possible f using it for the public good. The common notion, his reservation was a contingent provision for unforedemands, was unfounded and fallacious. No such and had ever occurred since the foundation of our ernment, and none such could be paid, if they did ocfor, not a cent of this money could be used, until Con. is should meet, and pass an appropriation law to draw om the Treasury. No such reservation existed before , and no part of it had been used since; and these should be sufficient to shew the correctness of the truction for which I contend. But, if that construcis not adopted, the same facts will shew the propriety pealing the reservation in toto. The repeal would #o millions more go annually to the Sinking Fund would otherwise go to it, and would save $120,000 anual interest, a sum of sufficient magnitude to claim Attention of all the friends of economy.

he third branch of the resolution proposes to enlarge authority given to the Commissioners by the 5th secof the Sinking Fund act, so as to vest them with a retionary, instead of a limited authority, in making hases of the public debt at its market price. As the on now stands, the authority given by it is nugatory.

SENATE.]

Public Debt.

[MARCH 3, 182

all idea of payment, and crushing the People under frightful load of taxes, to meet the annual interest. Suc a result should be a warning to us. It should admonis us to eschew the policy which has proved so fatal in ou parent country. It should caution us to pay our deb while we can, and not to run the risk of meriting from ot posterity of an hundred years hence, the bitter reproache which the English are the present day lavishing upon the ancestors of the reigns of Queen Anne and George th First.

of Eumenes, who was Secretary to Alexander the Great. This man of the pen, upon the death of his master, put in, among the Generals, for a kingdom out of the wrecks of his empire; and having no army to sustain his pretensions, he had recourse to fraud to raise one and bind it to him. For this purpose he borrowed all the money he could from officers and soldiers, and then told them that their chance for payment depended upon their supporting him in possession of Cappadocia and Paphlagonia, provinces which he had marked out for his future kingdom. Of course these officers and soldiers did not want to lose their The fourth and last branch of the resolution require money; and, like provident men, fell in with the only the Finance Committee to report on the probable tim course which could save it. They fought for Eumenes; within which the present debt of the United States ma they made him king, they made his children kings after be paid; and upon what articles, and to what amount, th him; and, in return, the king and his children made the duties now payable, may then be reduced or abolished People of the kingdom perpetual tributaries to these mo- This is an inquiry, Mr. President, of the deepest concer neylenders, in the payment of interest on the sum borrow- to the People; and the report of the Committee, ed. And this, Mr. President, is the origin of the notion ordered to make one, will be looked for with the greates which has been so compendiously expressed in our own impatience and solicitude. In my own opinion, our deb country, in that famous declaration, that a public debt was may be paid off in five years, and duties abolished to the a public blessing. In later times, and in our parent coun- amount of eleven or twelve millions. The debt is now, try, we have seen the policy of the crafty Greek revived nominally, sixty-seven millions-in reality, about fifty and acted upon by a crafty Dutchman, William, Prince of eight: for seven millions is in the United States' Bank Grange, who had need of both fraud and force to maintain Stock which is worth more than par, and brings a dividend himself on the throne, from which he had chased his father-equal to its interest; and thirteen millions is in three per in-law. He also bound the moneyed interest to his support cent. stock, which is fifteen per cent below par, and may by borrowing their cash, and thus laid the foundation for be bought for about eleven millions. A Sinking Fund of that frightful national debt,which now overhangs and over-thirteen or fourteen millions would extinguish the actual whelms the British empire. Such an example as this debt, in five years, (letting all the public works go on as should explode the notion that a public debt was a public usual) and it would require but little aid from our legislablessing. The doctrine, at best, is only applicable to tion to make that fund amount to thirteen or fourteen monarchies, founded in force or fraud, and where one millions. It is ten millions now, and is increasing from part of the subjects have to be bribed to keep the rest in the improving state of the commerce. The restoration subjection; and even then the debt must be large, dif- of the 4th section of the act of 1817 to its true and obv fused over the country, and held in many hands; while ous meaning, would increase it two millions more; anda our Government is Republican, founded on the affections more rapid sale of the public lands, according to the plan of the People, and our debt is small; one third of it owned which I have had the honor to propose, would further inby foreigners, the rest centered in a corner of the Union, crease it, to the amount of another million or upwards. and held by a few. 5. The last class of objectors which Thus, in five years, the debt may be extinguished, and the I shall mention, consists of those who think our debt a great questions placed before Congress, whether the pretrifle, which can be paid at any time, and who are for sent revenue shall be kept up? And if so, for what objects' letting it alone at present, and applying our money to Or reduced? And if so, upon what articles the reduction other objects. This, Mr. President, is the most danger- shail fall, and to what amount? These will be great ous class of objectors; for they are numerous, honest, questions, worthy to engage the deliberations of the perfectly well intentioned, and mean no harm themselves, whole Union, and the discussion of them may develope! but do the greatest possible mischief, by becoming the a new line in the division of political parties. Some may allies of the money-lenders, and of the sticklers for the be for keeping up the whole revenue, and making the blessedness of a public debt. It is to this class of politi- Federal Government strong and splendid; others may be cians that Great Britain is indebted for her present tremen- for a reduction of the taxes, and for limiting the revenue dous debt. That debt is the growth of a single century to the just and necessary support of a plain Republicani -a short period in the life of a nation-and took its Government. I shall myself be found in the ranks of this gigantic start, in the very doctrine which I am now com- latter party; and to enable it to act best for the public Dating. At the commencement of the last century, this good it is necessary that the public mind be consulted debt was but sixteen millions and a half sterling (about before it acts. The abolition of duties will be a delicate seventy millions of dollars)-very nearly the amount of and responsible task-it will be the counterpart of an our debt at present, and as little prospect of its growing imposition of duties-and should be executed in stricta to what it now is. One class of politicians were then anx-subordination to the will of the People. For one, I should ious to pay it off, another considered it as a trifle, which wish my constituents to know my sentiments, and, in could be paid at any time, and insisted upon applying the return, I should like to know theirs. If we disagree, In public money to other objects. This class prevailed; promise them one of two things--either to execute their and what was the consequence? Why, sir, the season of will, or to retire from my station. Here, then, is my creedta peace, in which alone a public debt can be paid, passed I away wars came on; and one year of war creates more debt than many years of peace can discharge. The war for the security of the Protestant succession came on, and raised the sixteen millions to fifty-four millions; that for the Dutch barrier followed, and raised it to seventyeight millions; then the seventy years' war, which carried it to one hundred and forty millions; then the war with us, which put it up to two hundred and thirty millions; and, finally, the wars of the French Revolution, which advanced it to nine hundred millions, equal to four thousand millions of dollars, at which it now stands, mocking

am for abolishing duties in toto, as soon as the public debt is paid off, upon all articles of prime necessity, on ordinary comfort, which are not made at home at all, or not made in sufficient quantity to merit national protec tion; and I am for continuing them on articles of taste and luxury, and upon such rival productions of foreign countries, as our security in time of war, and our generali independence as a nation, requires to be made at homes This is what I have said on a former occasion, and now repeat, because I have been misrepresented, and my wordin mutilated and garbled for party purposes. I will be more explicit, and specify some of the articles which I wouldy

66

[SENATE.

select for exemption from duty. I will name coffee, of not apply to this section. But an additional section of the which we have imported forty millions of pounds weight act is in these words: "That, after the year 1817, whenin the year; teas, of which the imports have been ten ever there shall be, at any time after an adjournment millions of pounds; spices, imported to the amount of "of Congress in any year, a surplus of money in the Treasix million of pounds; cocoa and chocolate, four millions; " sury, above the sums appropriated for the service of such linens to the value of three millions of dollars. Upon year, the payment of which to the Commissioners of the these articles, and others of the same class, which might "Sinking Fund will yet leave in the Treasury, at the end be named, the duties might be abolished, I apprehend," of the year, a balance equal to two millions of dollars, with advantage to manufactures, as well as farmers and "then such surplus shall be, and the same is hereby, apmerchants for they are necessaries of life which enter "propriated to the Sinking Fund, to be paid at such times into use in the living of every family, and lowering their "as the situation of the Treasury will best permit, and price, would be lowering the price of labor, which the "shall be applied by the Commissioners thereof to the manufactory demands. Salt, sugar, blankets, and flannel, "purchase or redemption of the public debt." present another class of necessaries and comforts, upon By this section, two millions are directed to be left unwhich some diversity of opinion might arise. They are touched in the Treasury, and all the surplus, after such necessaries of life, and partially made at home, but not in reservation, is to be applied to the public debt. The gen ufficient quantity to answer the public demand. Large tleman from Missouri supposes that this reservation is eiimportations of them are made from abroad, and heavy ther a misconception of the act, or is founded in erroneduties are paid upon them. Of salt, we import four ous principles, it being, as he supposes, unnecessary to millions of bushels, the duty twenty cents to the Govern- reserve, even by estimation, any money in the Treasury, ment, and ten cents profit on it to the merchant; of sugar, and, consequently, that all the estimated resources for the eighty millions of pounds, the duty three and four cents year may be safely appropriated by anticipation. The act to the Government, and one more to the merchant; of seems too plain to be misconceived, and has received a blankets and flannels, we import to the value of a million uniform construction by the Commissioners of the Sinkand a half of dollars, paying above four hundred thou- ing Fund. It must be a surplus of money in the Treasu sand dollars to the Government, and near two hundred ry, over and above the appropriation for the service of the thousand more to the merchant. Upon these items there year, and the ten millions, and the two reserved millions. may be diversity of opinion, and the will of the People The balance is surplus, and is, by the act, appropriated to should be known. Let no one say it is too soon for the Peo- the public debt. ple to begin to think upon this subject I detest that say- "After the adjournment of Congress," the estimate is ing, in all its bearings and applications. It is never too soon made for the year. The nett balance of the Treasury, at for the People to think, but often too late! It is not too the close of the year, (excluding what was appropriated soon for them to begin to think now about the abolition for the service of the last year, and all funds not available) of duties. Their Representatives will have to act one is added to the estimated revenue of the year. way or the other, in four or five years; and would, doubt-equal to the appropriations made by Congress for the ser less, wish to be informed of the sentiments of their con- vice of the year is set apart-ten millions are directed to stituents. The report of the Committee, which I pro- be applied during the year to the principal and interest of pose to obtain, will give them that advantage. It will set the public debt. If any balance remains in the Treasury, the public mind to work, and will enable the People to according to the estimate of the revenue, two millions is manifest their wishes in time to guide and enlighten the allowed to cover all deficiencies and variations of the reve decision of their Representatives. nue, and the surplus is applied to the public debt.

Mr. SMITH, of Maryland, said that the Committee on Finance did not, on any occasion, shrink from its duty, and they would take up the subject as speedily as possible. He would make but one remark upon the statements of the gentleman from Missouri, in relation to the two millions of dollars reserved in the Treasury. There were several contingencies to which this sum was liable. One was the practice of Congress frequently to make appropriations of large sums of money, not calculated on by the Secretary of the Treasury in his estimates; and then this sum came in and fulfilled the designs of Congress. Last year, this application of the two millions was made to a large amount. Congress made such liberal demands upon it, that but four hundred thousand dollars remained in the Treasury at the commencement of this year. Mr. JOHNSTON, of Louisiana, rose in reply to Mr. BENTON. He said he should not oppose the reference of the resolutions, which was the usual course; but he could not permit them to pass to the Committee, after the elaborate argument by which they had been recommended, without expressing his entire dissent to the opinions and views of the gentleman from Missouri.

I do not believe there is any error in the act of the 3d of March, 1817, either in principle, or in the construction of it. I think the act plain, that there is no misconception of its meaning, and that it is founded in just views of our financial affairs. This act was intended to appropriate ten millions of dollars annually to the redemption of the public debt, after the year 1817, and was, consequently, a standing appropriation after the current expenses of the year, if the Treasury was adequate to pay it. This part of the law gives rise to no difficulty, as the reservation does VOL. IV.-25

A sum

There

The reason why two millions was directed by the act to be reserved, was, that the calculation of the amount on which they are to operate, is founded on an estimate of what may be in the Treasury during the year, not what is actually there. It was known that our revenue was liable to fluctuations of two or three millions a year, from causes that could not be anticipated even one year in advance. Our importations are subject to variations, and the revenue arising therefrom to corresponding irregularities. are, besides, inequalities in the different quarters of the year, that materially affect the receipts of the year; and we have experienced the same thing from the sales of the public lands, so as to baffle all calculation of the actual rest of the revenue for the year. It was a knowledge of this uncertainty, in all financial estimates, that induced the reservation of the two millions, to guard against a probable contingency of applying more to the public debt than might be found in the Treasury. The wisdom and the foresight of this provision has been exemplified by the experience of the last ten years. In 1817, the estimated receipts from customs were twenty-four millions; the actual receipts exceeded that sum by two millions, and this is probably a solitary instance. In 1818, the estimated receipts were twenty millions; the actual were three millions less. In 1819, estimated twenty-one millions; and the revenue fell short near a million. In 1820, the estimate of nineteen millions was found by the result to be four millions too much. In 1821, the Secretary of the Treasury estimated fourteen millions; but the Committee of Ways and Means, with the same data, estimated 15 millions. It produced but 13 millions. These differences arise with the ablest men, with all the informa

SENATE.]

Public Debt.

[MARCH 3, 1828.

tion necessary to a correct judgment. They can but ap- The Secretary of the Treasury could not purchase stock, proximate the true result. There are some facts and some and there was none at that time redeemable. principles which are useful in forming these estimates; The Secretary of the Treasury recommended, in his but, with all their aid, it is but conjectural. There are report, in December, 1826, a loan of sixteen millions, at no known laws that govern them. Experience has shewn, 5 per cent., to pay off a debt of 6 per cent., and which, perhaps, that two millions is a safe allowance for the fluc- if carried into effect, would have produced, at once, a tuations of commerce, and the various exigencies that large saving to the Government, but this proposition was may arise during the year. In the last twelve years, the rejected by Congress at the last session. That, to my receipts have varied from near thirty-four to thirteen mil-mind, was the time and place for economy. That would lions. But from this series we are able to form a more have realized more than could result from the interest of accurate estimate of the general average of the revenue. the imaginary two millions, if they had actually existed in The receipts for twelve years may be said to average the Treasury. twenty-one millions-for the last five years twenty-two Sir, the payment of the current expenses of the Gomillions; and this is a sufficient basis for all financial cal- vernment, and the ten millions, will leave us from two to culation. It will probably vary from twenty to twenty-three millions a year, for all objects of a miscellane four millions. We may allow, in round numbers, ten mil-ous character, including internal improvements, roads, lions for the ordinary expenses of Government, establish- canals, breakwaters, piers, deepening channels, remov ed by law; ten millions for the public debt; and the ex-ing obstructions in rivers, purchases of land from Indians, traordinary appropriations average from one to three mil- and various other claims upon the country. During the lions. So that, upon no ordinary calculation, can more last three years, a large sum has been applied by Con than ten millions be applied, nor can we anticipate there gress to these objects of great utility, and of indispensa will be a surplus. ble necessity. These appropriations will, doubtless, be Again: We know that, during that period, the receipts continued by Congress. What future expectation can of the Government have not allowed the regular appli- there be, that there will ever be a surplus of two mil cation of the ten millions, and have not been found equal lions? We have an actual surplus, now ascertained, of to this standing demand on the Treasury. We have paid, million, but we have a bill appropriating a million to the during that period, $134,506,206, of which $18,786,748 surviving officers of the Revolution; and, while it is prowas provided for by loans; leaving the amount actually posed to apply the million to the public debt, it is, at paid $115,719,453; whereas, the application of ten mil- the same moment, proposed to raise the million for the lions for twelve years would have extinguished one hun-officers by a new loan; and where is the economy of dred and twenty millions. There is, therefore, due to that? the sinking fund, more than four millions. This shews, The Secretary of the Treasury estimates an excess of however, how nearly it has met the expectations of the receipts, for the present year, of $2,352,874, and this sum country, and is an evidence of the ability of the distin-is liable to the usual variations. But what are the demands guished man who framed the bill. But it shews, at the same time, that there has been no surplus.

Now, the simple question is, whether these objects are of more pressing importance than the payment of this additional two millions to the public debt, which would hasten its extinguishment little more than one year, while these great objects must be neglected. Upon this point my mind is made up.

upon it? There is a bill before us, which contemplates the commencement of a breakwater at the mouth of the It seems to my mind the gentleman labors under some Delaware, which will cost more than two millions, and erroneous impression on this subject. He seems to think which proposes $250,000 a year. There is another antithat something has been lost, by mismanagement of the cipated at Nantucket, of about half that cost, which will funds, either by the operation of this act, or the miscon- also require $200,000 a year. There are applications for struction of it, and supposes, by changing the act, he will opening a communication from Albemarle Sound to the save the interest of two millions a year. Sir, since the Atlantic; deepening the channel at the mouth of Cape operation of the act, there has never been a surplus of Fear river; opening the falls on the Wabash; removing two millions, which could have been applied to the debt. the rafts in Red river, and obstructions from the Ohio and On the contrary, on the 1st of January, 1818, '19, 20, 21, Mississippi rivers, and many others of less importance. the four first years after the act creating the Sinking This is besides the removal of Indians and purchases of Fund, and also in 1824 and 1825, there was no balance in land, the claims of States for advances during the war, the Treasury, but a great deficiency, to wit: and the private claims now pending, amounting to more 1st Jan, 1818, $4,953,852 1st Jan. 1821, $2,056,724 than half a million. 1819, 2,060,483 1824, 2,382,030 1820, 5,201,157 1825, 151,259 On the 1st January, 1822, there was in the Treasury only $491,166; on the 1st of January, 1823, there was in the Treasury $5,462,412 not applied, because there was no redeemable debt to which it could be applied. On the 1st January, 1826, there was a sum equal to a million in the Treasury, and that balance still remains, and will be carried to the estimated receipts of the year, to compose the fund of the Treasury, for the year, out of which the appropriations for the year will be taken, including the ten millions; and if there is any surplus, after allowing two millions for variations of revenue, it will be also applied to the public debt. If the gentleman could find the two millions which could have been, but which have not been applied, in consequence of this act, I would consent to apply it; but if, at any period, that sum had been applied, the Treasury would be now minus a million. The error consists in the idea that such sum has laid idle in the Treasury. It was never there. A view of the whole subject will show the sound discretion which has been exercised over the application of the funds, since the peace, with the exception of the sum that remained, in 1823, unemployed; but that was the business of Congress.

The regular application of ten millions will extinguish the public debt early in 1836, and, in the mean time, from two to three millions a year may be distributed over the country, to improve the navigation, by artificial harbors, deepening channels, erecting piers, and other useful works upon the coast; to improve the communications between the States, by the internal commerce of the country, now vastly greater than the foreign. The public debt is in a progress of rapid extinguishment, and quite as rapid as it ought to be, not to disturb the com merce, or the capital, or the circulation of the metallic medium of the country. The stock of the United States, to a certain extent, forms a part of its capital. By paying it off, you do not increase the circulating medium, but you destroy that part which is a substitute for capital. How far this stock enters into the capital upon which trade and commerce is carried on, I do not know, nor can I anticipate the effect upon them, of withdrawing, in a