Gazette Of The United States

FOR THE GAZETTE OF THE UNITED STATES

MR. EDITOR,

PECULATION in public securities, or the debts of the United States, and the individual States, began with the debts themselves—it is a necessary and uniform consequence of paper representatives of specie, on any principle whatever, funded or not funded: In the former case it is seldom injurious when the funds are good and sacredly applied: In the latter it is always carried to excess—and is attended with pernicious effects.

The United States, previous to the adoption of the new Constitution, possessed no funds—because they had no legislative power. A vain confidence, however, in the success of congressional requisitions, procured a circulation for a time, of the many millions of paper which the old Congress issued. A failure on the part of the respective States in complying with the requisitions, laid the foundation of that immense depreciation which followed—and opened the flood gates of speculation. For a considerable time before the dissolution of the old government, the receipts into the Treasury of the United States, were said to be little more than sufficient to pay the officers of government: These, however, it is to be presumed, were punctually paid, as very few of them appeared anxious for a change.

A debt situated as that of the United States was, must have been in desperate circumstances—and it is demonstrable, that before this day, it would have totally sunk in the hands of the possessors, but for the new Constitution. How far this was the wish of many of the opposers of a change in our political situation, time may develope—but at present, thank Heaven, it is not material to investigate. The time is now come, when the business of peculation, it is to be hoped, will be brought to very narrow limits, and become so unproductive, as to be not worth pursuing: And in order to effect this great and valuable object, it is become necessary that confidence in the faith and honor of government, should take place of that distrust and jealousy, which have led too many of our citizens to sacrifice their hard earned property for a very trifling consideration.

The business of peculation, in its first stages, was carried on in a very exceptionable and disingenuous manner: The country was filled with a set of itinerant sharpers, who gulled the unwary and uninformed out of their property by every species of deception: This mode of prosecuting the business, was the only one in which it was carried on for a considerable time—but the establishment of offices in the capital towns on the continent, produced an open and fair market—and the same principles which apply in other branches of traffic, obtaining in this also, it then became the interest of the negociators to buy and sell on the lowest terms. This open market broke up the itinerants in a great measure, and afforded every possessor an opportunity to get the highest price that could possibly be obtained for his paper. It is however said, that the ambulatory tribe is not extinct—but that the late rise in public paper has added wings to their feet—and in many instances the credulous and unsuspecting have suffered by sudden and hasty sales.

It is surely high time that confidence in the government should possess the minds of the public creditors universally: Those whose faith has not failed them for several months past, have added more than one hundred pr. cent. to their property—and if they will but hope unto the end of March next, they must find their account in it.

You, Mr. Editor have done well in publishing a price current of Public Securities, since the Funding Bill passed: It has been very serviceable to many of my neighbors; they are however, at a loss to account for the fluctuation which sometimes appears. I tell them to be steady—for no possible reason can be given (that should influence the creditors at large) why the public paper should be at one price to day, and at a less price to morrow—I tell them also that these variations are owing to local considerations only, which may be easily explained.—You may hear from me again.

CRITO.