Richmond Enquirer

THE NATIONAL FINANCES.

The plain statement of facts which will be found below, claim the attention of all who are friendly to our institutions and to the general prosperity. They are from an esteemed and venerable member of the last congress from another state, addressed to a friend and correspondent in this.

20th November, 1823.

Sir—I have presumed it might be agreeable to you to be informed of the progress, for a few years past, of the finances of the union, and their present condition.

In December, 1819, the President in his message, informed Congress that the means for the year 1820, would fall short of the expenditures the sum of $5,000,000. The Secretary of the Treasury, in his report, pointed out three modes of meeting the deficit, to wit, Taxes, Loans, or Retrenchment. The idea of loans and taxes for the current expenses of government in a time of profound peace, was obnoxious to Congress, and equally so to the people, as appeared by the public writers.— Congress was illiberally abused as the cause when perhaps, the censure might with more propriety have been applied to indiscreet expenditures: but Congress are many, and may be censured securely—they have few offices to give. Congress adopted two of the alternatives; they granted a loan of $3,000,000, and made retrenchments to the amount of $1,150,000; a part of those, to the amount of $700,000, was from the item for fortifications: The estimate was, "For fortifications $1,500,000," which was deemed very extraordinary, when, in no year since the peace had more than $800,000 been granted, and especially at a time when our finances were such as to require a loan to meet the current expenses of the year. Congress granted the usual sum of $800,000, the whole of which, I believe, was not expended in that year.

In December 1820, the President informed Congress that for the service of 1821, the receipts would fall short of the expenditures, say $7,000,000; and the Secretary of the Treasury proposed the same alternative to supply the deficit. Congress granted a loan for $5,000,000, and made retrenchments to the amount of $2,130,155. The Secretary of the Treasury having mentioned retrenchments as one of the means to meet the deficiencies of those two appalling years, gave offence to the expending departments, and the host of persons employed. They did him the honor, in consequence, of charging him with being the cause of those retrenchments, and have stigmatized him as the head of what they were pleased to call the Radicals. The retrenchments were made with prudence; none, no not one of the institutions suffered any injury.

The President was asked this plain question by a member of Congress, in Jan. 1822, Have any of the public institutions suffered by the retrenchments that have been made? He answered, no, not one. Among the retrenchments, was the reduction of the army from ten to six thousand men. This was obnoxious to certain persons. But has it done any injury? Were more than six thousand men necessary for garrisoning all the posts, and for a sufficient force to keep the Indians in check? They have been found fully adequate, and no injury, that I have heard of, has been sustained.

The saving made by the reduction has been (agreeably to a report from the Secretary of War,) $1,000,000 per annum. Was it not a good act done by Congress, to stop a useless annual expenditure to that amount? In time of peace, an interruption of which cannot be looked for, we require no greater force than shall be necessary for the objects mentioned.

There had been a general staff equal to an army of 15 or 20,000; the Secretary of War, in his report for the organization of the contemplated army of 6,000 men, proposed to retain that staff, with trifling exceptions. This proposition was rejected by Congress, by which a great saving was made; but it disbanded meritorious officers, and gave offence to them and their friends. This was natural. Republican policy, (and I believe it a good one on general principles,) is to employ and pay officers only when services are required : to have no sinecures.

The means reported for 1822, were supposed to be nearly adequate to the expenditures for that year. There were some subjects, however, on which retrenchments were made for 1822, amounting to half a million; making nearly $5,000,000 in three years. Those retrenchments had completely brought our expenditures within our means, and of course no retrenchments were made from the estimate for 1823. The institutions of the nation have been so completely organized and restricted by Congress, as to require few if any modifications hereafter. If those retrenchments (for which our best men are called Radicals) had not been made, another loan to their amount would have been necessary for the service of 1822, and probably a small loan for that of 1823. What a pleasing contrast has that wise policy produced ! We required no loan for 1823, and had in the Treasury on the 27th October past, (pensions, interests, &c. &c. paid up to the first day of that month) the full amount of $8,000,000.* of good available money, besides a million due from certain banks, some part of which is believed to be well secured. The whole of the deferred debt will be paid off on the first day of July next, which will relieve the finances to the annual amount of $600,000 ; and on the first day of January 1825, the Treasury can pay off the 7 per cent. stock of $8,606,355, which will be a further relief in interest of $600,000; so that in future our finances may be considered sound, and unless some occurrence, which cannot be foreseen, prevent it, our means may be considered equal to our wants; for which great good. Mr. Crawford and his friends are stigmatized with the name of Radicals. They have, however, the heartfelt satisfaction to know, that they have done their duty, and preserved the administration of Mr. Monroe from a charge of prodigality.

* The late Message of the President states the estimated surplus in the Treasury on the first of January next, at about $9,000,000 [Eds. Albany Argus.