Gazette Of The United States

SKETCH OF THE POLITICAL STATE OF AMERICA.

WHILE among the various objects which claim the attention of government, none can be esteemed of more importance in their nature and consequences than the finances of this country; perhaps in no other instance have the sanguine hopes of individuals led them into so wrong conclusions, as to the immediate practicability of making the proper arrangements of this comprehensive subject; there can be no doubt, that for the revival, establishment and support of public credit, provision ought to be made as early as possible for the discharge of at least the interest of both the foreign and domestic debt; but we are on many accounts not yet ripe for these appropriations: The doctrine of anticipating funds, is equally ruinous to public as private measures: We have already experienced great inconvenience and loss of credit, by promising more than we have been found able to perform: We ought therefore, in future, to avoid by wiser plans of administration, an evil of such a dangerous tendency—let time be given to ascertain the nett product of our customs and ability from other sources to answer the demands on government. To shun the evil just mentioned, would be a sufficient consideration to justify the policy of this mode of procedure; but an object of still greater consequence, prior to making our appropriations, will be to have the fiscal department of this country more completely systematized and simplified; as in its present deranged and confused state, it seems almost impossible to have a due idea or knowledge of it. Requisitions totally complied with others in part, and others not at all the accounts between the States not yet adjusted, appear on the face of the present schedule.—But considering the harassed situation of the country during the late war—the confusion introduced by a fluctuating currency—our youth and inexperience in the science of fiscal legislation—the weakness of the federal compact, &c. &c. a derangement of our finances was rather to be expected than admired at: But as we now feel a more perfect consistency in our political situation, and as the present government possesses most of the resources of the country, it will be found not only expedient, but indispensably necessary to form a general liquidation of our domestic debt, consolidating the whole into one great national mass—by which we shall avoid much future confusion in its management prevent a division of the public interests—promote that general equality of circumstances among the inhabitants of the Union, which will produce a harmony both of sentiment and exertion in their duty to the public.

Though in making the arrangement, perfect justice cannot be done to each individual State, it is a partial sacrifice, which principles of patriotism and a regard to the future welfare of their country must prompt them to make to the general good: Their respective balances can be placed on the ground of other loans, subject to similar terms of payment.

Upon a proper adjustment of these great principles, and having from experience obtained an accurate knowledge of our nett income; it will be in the power of government, by the consent of the public creditors, to establish the domestic debt on an interest of at most 4 per cent. which will make a saving of 547,678 2-90ths dollars per annum compared with the present rate of interest as the debt now stands, at the same time giving satisfaction to the lenders, as 4 per cent. punctually paid; is far preferable to 6 per cent. only promised, and in proportion as the rate of interest is lowered our power for punctual payment will be increased.

Whatever necessity may arise from the nature of our contracts, to urge a discharge of the principal of the foreign debt—I do not see either our ability, the expediency or policy of attempting at present a discharge any part of the principal of the domestic; as that properly funded, on a moderate but sure interest, will form a national stock or capital, and essentially assist a general circulation—the progress of manufactures, and internal labor—in promotion of which object, the establishment of a national bank under proper regulations would be found serviceable, into which the money arising from the public revenue can be paid from time to time, and the officers of the revenue be obliged to receive its notes as cash in all payments: There is no nation better adapted than this for such an establishment, as its commerce, resources and power are upon the increase, which with the advanced rate of interest, for even 4 per cent. is above the general funds in Europe, will be to all appearance a sufficient inducement to foreigners, as well as natives, to vest their property in the public funds of this country—I feel assured, that should our inclination run parallel with our ability, we have it in our power to place them on the most respectable and solid grounds.

AMERICANUS.