SPEECH OF ME. RAYNER, OF NORTH CAROLINA, 1 = R OX THE TREASURY NOTE BIM,. 6 i 5 s [gi Delivered in the House of Representatives, on the 5th of February, 1841. g he bill authorizing the issue of Treasury notes to the amount of five millions 7 ^=S ollars being under consideration and Mr. BARNAKD of New York having =!^= fid to strike out the enacting clause of the bill ; giving notice that, if the mo- prevailed, and a report to that effect should be made to the House, he would men offer the following resolution : Kf solved, That the subject of making provision for the wants of the Treasury be referred back to the Committee of Ways and Means, with instructions First. To bring in a bill authorizing the Secretary of the Treasury to borrow ten millions of dollars on the credit of the Government, and to issue bonds or scrip therefor. Second. To bring in a bill imposing duties for additional revenue on wines, silks, linens, spices, and other articles, being luxuries, imported into the United States ; but in such manner as not to conflict with the principles, policy, and spirit of the act of March, 1833, commonly called " the Compromise Act." Mr. RAYNER, of North Carolina, spoke as follows: He said he should vote against the issue of Treasury notes now, as he did, at the last session ; but that hewas willing to vote for a loan, and for additional duties on articles of luxury, as contemplated by the resolution of the gentleman from Ne'w York. Setting aside the disputed question, as to the constitutional power of Congress to issue Treasury notes, about which (said Mr. R.) I shall venturerfio opinion novv^ yet I oppose the measure on grounds of inexpediency. I believe that a crisis has arrived in our financial affairs, which requires a remod- elling of the system, which must soon be met ; and that this issue of Treasury notes is calculated to put off to a future day, that, which requires immediate attention. I look upon it as deceptive in its character, and calculated to conceal from the knowledge of the country, the embarrassed and ruinous condition of the national Treasury. It is also calculated to screen from a just responsibility, the condemned authors of that system of misrule which has bankrupted the Treasury, and well nigh dishonored the nation. For whilst it, in fact, entails upon the Government a debt a national debt, in every sense of the word yet, so much magic is there in a name, that those who have for years been resorting to this system, have as uniformly denied that they have imposed upon the country a national debt ; but insisted, that they were only using temporarily the credit of the Government. Now, sir, it is right that there should no longer be practised any deception on this subject. It is right that the true situation of the Treasury should be made known to the country. It is right that the authors of the financial embarrassments under which we are now suffering, should be held to a strict accountability. Let them, in the few days of power which they have left, confess that the Treasury is empty, that the country is in debt, that funds are necessary to save the honor and credit of the nation, and bring in a bill authorizing a loan : 1 will vote for it, although it shall be with a prntestando against the wasteful extravagance which has rendered it necessary. Sir, if the Government is in debt, without the means of paying, the people should know it ; they should also know the amount of that debt, under whose management it has been incurred, and the manner and terms on which it is to be paid. The issue of Treasury notes, as I have before said, is only putting off the day of settlement, and throwing it on those who, while they have foretold and pro- tested against the present evils, will yet be charged, when the day of reckoning comes, with having incurred the debt, for the payment of which they are now making provision. If Treasury notes be constitutional about which, as I said before, I deem it unnecessary to express an opinion yet I do not consider this to be an occasion when it is proper to resort to them. It may be, that in cases of emergency which cannot be foreseen or provided for as war, or a sudden revulsion in the trade and revenue of the country the issue pf Treasury notes might not only be expedient, but absolutely necessary ; when the interest, the honor, and the plighted faith of the country, were in danger of being compromised. Sudden and unexpected difficul- ties not only require, but justify, extreme and unusual remedies. But such is not the case at the present time. The horrors of war have not suddenly burst upon us, and the difficulties which beset the trade and commerce of the country, so far from being sudden and unexpected, have been gradual in,their approach, long seen, and long felt. Then, not being suddenly called upon to provide against some un- foreseen disaster, I insist upon it that tot should take time to view the whole field of difficulty, throw the responsibility where it properly belongs, and resort to such means as shall be consistent with the obligations we owe to the country, and the duty which we owe to ourselves. 1 speak as a member of the Whig part}' ; as a member of that party which long foresaw and long forewarned the country, against the measures which have reduced us to this ruinous and almost degraded condition. Sir, I do not choose to be driven by this cry of the " immediate wants" of the Gov- ernment, about which we have heard so much, to the commission of an act, which I not only believe to be inexpedient and unwise at the present time, but which, while it is calculated to relieve the guilty from responsibility, will throw the odium of their misdeeds upon those who are to succeed them. As to the indebtedness of the Government, without the means of making pay- ment, there is no difference of opinion here. That more money will be required, than can be supplied by the accruing revenue for the present year, must be admitted on all hands. As to the deficit which exists, .ana* the amount which will be required for present wants and future demands during the year, it is a point of controversy. 1 shall attempt to show, before I conclude, that it is much larger than can be gathered from the obscure and cunningly-devised report of the Sec- retary of the Treasury. The question is, how is the requisite sum to be raised? After a great and unexampled victor}', the Whig party is about to come into power, and they find the Government crippled in its resources, and bent down by years of pressure. We now have to apply the remedy. W r e now have to raise the means of enabling the country to comply with its obligations, to repair its shattered defences, and to save the national honor. I am willing to do this, but I cannot consent that a discomfited enemy shall dictate the way in which it is to be done. Still less am I willing to aid in screening that enemy from public indig- nation, by assuming the responsibilily which should rest on him. And if we have nothing to hope from an obstinate and perverse majority here if this measure is presented to us as the ultimatum, as the only relief which they will consent to give, I, for one, am for " biding my time," and am willing to wait, till those who truly represent the interests and wishes of the people, shall have assembled here. 1 have sta.ted that I am willing to vote for a loan, and feeling assured, as I do, that five millions will not be more than half sufficient to meet the deficit for the present year, I am willing to vote for the ten millions contemplated by the reso- lution of the gentleman from New York. I prefer a loan, because it will reveal to the country the actual condition of the Treasurv, and I prefer that it should be authorized by the same men, whose measures have forced us to this alternative. Those who have contracted the debt, and squandered the means of carrying on the Government, should take the responsibility of making provision for both. Paying a debt is not incurring a debt. It may be, and it will be, that the admin- istration to succeed the one now in power, will be compelled to provide the means of paying the debt already incurred^ and of meeting the deficit growing out of the shock given to trade and commerce, by the deslructive policy of the present party in power. And I wish now, in advance, to call the attention of this House, and of the country, to the fact, that any measure of relief hereafter to be resorted to by the coming administration, will be the inevitable result of the policy of the present administration. If the country is in debt, that debt must be paid ; if there is a deficiency in the revenue for the present year, that deficiency, must be pro- vided for; and if, in applying the means for either, the country is pressed, let not those be blamed who make the provision, but those who forced it upon them. Sir, I make these remarks, because it is very apparent, from the tone of the de- bate on the other side, as well as of the presses in their support, that this is to be the basis of an organized opposition against General Harrison's administration. And now, I charge in anticipation and I call upon gentlemen on the other side to note what 1 say you have squandered the public treasure ; you have crippled the resources of the country, by your war upon commerce and credit ; you are about to go out of power, after having plunged the country in debt, and deprived it of the means of meeting its necessary expenditures ; and upon your heads, and yours alone, let the responsibility rest. And in providing the means, as we shall hereafter be compelled to do, to pay for your extravagance, and to supply the deficiency caused by your warfare upon commerce, let it not be said, for in truth it cannot, that we have imposed upon the country a national debt. If the interest of the country, in a pecuniary point of view, is to be consulted, a loan must be preferable to Treasury notes. Treasury notes, with four and a half millions now outstanding, and bearing an interest of six per cent., are now, I learn, from one-half to three-fourths per cent, below specie par. These Treasury notes are reissuable, let it be recollected, until the 31st March, of the present year. Authorize the issue of five millions more, or ten millions, as contemplated by the amendment of the gentleman from Virginia, (Mr. WISE,) and as you thus in- crease their amount, you lessen their value. It may be said, these Treasury notes are paid out to the public creditor at par, and received from the public debtor at par. But, sir, is it right, with all your professions about a specie currency, and all your denunciations of paper, to receive the public dues in a medium less valuable than specie, whilst, according to the provisions of the sub-Treasury law, you are com- pelled to collect one-half of the revenue in gold and silver after the 4th July next? And is it right to compel the public creditor or leave him no other alter- native, which is the same thing to receive the amount due him in a medium less valuable than specie, after all the clamor we have heard about the impositions of banks, and the worthlessness of paper money? Treasury notes, iike all other bills of credit, cannot long maintain their nominal value, as has been proven by the history of all Governments that have ever resorted to them. In fact, they are a sort of revolutionary currency at best, never resorted to by Governments except when in extremis ; and when they have no other mode of supplying their coffers, and of sustaining their credit. They remind me too strongly of Continental paper money, and the assignats of revolutionary France, to receive my sanction. Owing to their uncertain and fluctuating character, as to the time and amount of their issues, capitalists are afraid to invest in them ; and, as a cur- rency, they are entirely unsuited to the public convenience. And all the patch- work of legislation to which you may resort, cannot acquire for them the confi- dence and countenance of the commercial community. But resort to a loan, issue your scrip, redeemable on time, with a fixed rate of interest, and you create a stock in which capitalists will seek to invest their money ; and this stock, so far from soiling at a discount, will command a premium. I understand that the stock issued by the Government in 1822, '23, and '24, although redeemable at plea- sure, sold at a premium of two per cent. If issued on time it would be worth more ; but at two per cent, the Government would save $200,000 in a loan of ten millions. If you issue Treasury notes made returnable in one year, you are only postponing the evil, which will be aggravated when the time of presentation arrives. For, as I shall attempt to show, the deficit in the Treasury is not a tem- porary one, but a permanent one which cannot be supplied, unless the imports should be increased beyond any reasonable calculation, or the duties on those imports, or a portion of them, should be raised. So that, at the time these Trea- sury notes shall return, the Treasury will need all its available means in order to meet the necessary and current demands of the Government. That there is a deficit all agree. The question is, how large is it likeJy to be during the present year? I have no doubt that it will be more than ten millions; it certainly will, if Congress passes the appropriations that are absolutely neces- sary for the country. It is true, we can make the expenditures any amount we please, no matter how small, if we are disposed to disband the army, to lay up the navy, desert our fortifications, suspend our foreign intercourse, &c. In'read- ing the report of the Secretary of the Treasury, I was struck with the time-serv- ing and disgraceful proposition he has made, for the purpose of preserving a bal- ance in the Treasury at the end of the year. He says : " But the preservation of a suitable balance in the Treasury nviy require more than what will probably be left after satisfying other purposes. The raising of any sum for that object in 1841 could, however, be obviated by authorizing a contract to be made, under proper restrictions, ex- tending the period of payment for a portion of the temporary liabilities falling due in that year^ Yet, in the opinion of the undersigned, the best mode of providing for this case would be, with- out either an extension of this kind, or a loan, or a further issue of Treasury notes, or a change in the tariff; but merely by lessening the appropriations for the service of 1841 below Ike esti- mates, or by passing such declaratory clauses as to the present tariff, and such acts as to the public lands, as have heretofore been urged on the consideration of Congress." Now, here is the Secretary of the Treasury, an officer whose especial duty it is to submit an estimate of all the expenditures necessary for the Government, proposing in one sweeping clause to lessen the appropriations below the estimates, without specifying any items of expenditure which he would cut down, without considering the absolute wants and sufferings of the country merely for the purpose of making a show of economy, now upon his retirement from office, and of withdrawing attention from that profligacy and extravagance that have bankrupt- ed the Government. And this is the same Levi Woodbury, under whose adminis- tration of the finances $39,000,000 per annum have been expended, without a murmur against extravagance escaping him. No, sir, I hope no such illiberal, narrow-minded policy is to be pursued here. As statesmen entrusted with the interests of the country, it is our bounden duty to see that its honor and character shall be preserved, and all its main branches of defence shall be sustained; and if there is a deficiency in the revenue, growing out of a long period of misrule, we must resort to other means to the credit of the Government ; relying upon the future, for the return of prosperity, and a replenished Treasury. The Secretary of the Treasury estimates the expenditures for the year 1841 as follows, viz: Civil, diplomatic, and miscellaneous - $3,450,740 13 Military 7,725,440 94 Naval - - 5,445,339 21 Besides these, certain permanent appropriations under existing laws will be- come chargeable on the Treasury duringthe nextyear, in sums as follows : For ordinary purposes. Military 864,000 OG> For other purposes. Public debt, including interest and first instalment for the District of Columbia 149,200 00 Redeeming Treasury notes - - 4,500,000 00 Amounting in all to ------- $22,134,72028 The receipts for the same year, he estimates as follews : From customs - r $19,000,00f> From lands - - ' '*?'* 3,500,000 From miscellaneous - - 80,OOO Expected balance in the Treasury available on 1st January, 1841 1,580,855 Available from banks - - . - - 320,000 Treasury notes. yet issuable under the act of 31st March, 1840 - 342,618 Amounting in all to - - ! -V L - ' - $24,723,473 Thus leaving a balance on 1st of January, 1842, of - $824,000 These estimates of the Secretary have been proven to be entirely illusory and deceptive. The tables in his report have .all been got up, worked out, and arranged, to meet a conclusion to which he had resolved to arrive that the ex- .penditures for the present year should fall within the receipts. Heads of bureaus have declared to gentlemen on this floor, that, in making their reports, they were required to cut down their estimates of the appropriations for the public service, so as to make them square with the predetermined estimates of the Secretary of the Treasury. It is enough to make one blush for the degradation of his country, when he sees the Minister of Finance so far forgetful of the duties of his station, and the great interests of the nation, as to frame his report, not to suit the wants and exigencies of the country, but to save his party from the charge of extrava- gance, and himself from that of mismanagement. I shall not attempt a detailed examination of the various items of income and expenditure for the present year, submitted in the Secretary's report; for their fal- lacy and duplicity have been fully and ably exposed. The gentlemen from New York, Maine, and Tennessee, (Messrs. BARNARD, EVANS, and BELL,) have placed this matter in so clear a point of view, that no one can misunderstand it who is not wilfully ignorant. And the feeble attempts that have been made to refute their calculations, have tended to make the conviction still stronger, that they are founded on data which cannot be controverted. As before stated, the Secretary estimates the receipts for the present year at $24,380,855, including the Treasury notes issuable under the act of March 31, 1840. Of this he estimates $19,000,000 from customs. Now, sir, is it reasonable to suppose that this amount will be received from customs during the present year? As to the Secretary's opinion, what is that worth "? In his annual report of December, 1839, he estimated the receipts from customs for 1840 at $15,000,000, and they fell short $2,000,000 ; and I learn that is nearer than he ever arrived at the truth in any financial calculation. Is it reasonable to suppose, that the in- come from customs for 1841 will be six millions more than in 1840 ? Why should it be 1 Gentlemen say last year was one of great pressure, but that trade is now reviving, and that the importations during the present year are likely to be heavy. It is true that, since the election of General Harrison, confidence has revived, and business begins to prosper ; but yet, in the efforts of the banks to resume specie payments, which is one of the fruits of a restoration of confidence, the pressure in the money-market must for a time continue. It is only gradually, that business, when once depressed, can regain its former prosperous condition. And if the sub-Treasury is executed according to the express provisions of the law, as General Harrison is bound to see that it shall be, and one-half of the pub- lic dues after July are collected in actual specie, it will create an additional de- mand for specie, at the very time when the banks will be endeavoring to strengthen themselves, and when they will be least able to spare it. And my word for it, if the subjTreasury is executed according to the letter of tlin law, you will have another revulsion the banks will again suspend, business will be pros- trated, confidence destroyed, and the scenes of '37 be enacted over again. Th 6 gentleman from Mississsippi (Mr. THOMPSON) spoke of the large importations now on their way here across the Atlantic, the duties on which were to fill the Treas- ury. Why, I suppose, that is always the case about this season of the year. The importing merchants have ordered out their spring supplies, and although your ports may he crowded for a short time, about the latter part of the winter or be- ginning of spring, yet, during the summer months, you may scarcely hear of an importation. But 1 think it may be safely set down, that the importations next fall will be very thin ; for it must be recollected that, according to the terms of the compromise act, the duties on all articles are to come down on the 1st January next, in the proportion of one-half of their excess over twenty per cent. Then, is it not reasonable to suppose, that the merchants will withhold their importations till after the 1st January, except in such small quantities as will meet a ready sale? Most assuredly they will. Otherwise, their stock remaining on hand could be un- dersold by those importing after the first of the year. Owing to these circum- stances, I do not believe that the income from customs for 1841 is likely to ex- ceed that of 1840. But putting it at a medium between $119,000,000, as esti- mated by the Secretary, and $13,000,000, the amount received in 1840, and we have $16,000,000, which is a liberal, and, as I believe, an over estimate. Next is the estimate of receipts from public lands, which the Secretary puts down at $3,500,000. This I am willing to allow, although I understand the Com- missioner of the General Land Office has given it as his opinion that it will not exceed $2,500,000. Add to this " miscellaneous," " expected balance available on the 1st January next" the sum " due from banks which is likely to be made avail- able," and " additional means arising from Treasury notes authorized to be issued under the act of March 31, 1840," and you have the whole means for the support of Government for the year 1841, amounting to $21,723,473. Let us now look at the probable expenditures; not with reference to the very smallest amount with which the Government can possibly get on, but with refer- ence to the actual wants and necessities, the honor and character, of the country. I see from House document No. 265 of the last session, the appropriations for the "civil, miscellaneous, and foreign intercourse for the year 1840" amounted to $4,512,545 05; whereas, in the estimates for the year 1841, it is put down at $3,450,740 13. Why is this ? The member from South Carolina (Mr. RHETT) insisted that $300,000 would be saved in consequence of the shortness of this ses- sion compared with the last. But then, gentlemen on the other side insist, that we intend lo have an extra session. The gentleman from Mississippi (Mr. THOMPSON) said he could see we were determined on this. If we do have an extra session, it will be a charge on the Government. And if gentlemen know this, why not pro- vide the means of meeting it 1 I certainly know nothing of the purposes of Gen- eral Harrison, or of those whose counsel he will seek; I have, however, but little doubt an extra session will be inevitable. General Harrison will find the Treasury empty, with pressing demands against it daily, and nothing to discharge them with. In that case, he will be compelled to convene Congress, in order to obtain the means of carrying on the Government. In addition to this, the country requires reform at our hands a speedy and thorough reform. Millions of freemen are calling for the repeal of the odious sub-Treasury. A prostrate commerce and ruined cur- rency require the remedial hand of the Government. I speak only my own. opinion. I believe an extra session indispensable. And if it takes place, the ex- pense attending it will be more than the difference between that of the present session and the last. I discover the Secretary has sent in no estimates for the outfits of ministers abroad, and the infits of those who are already there. Does he suppose General Harrison will not change the diplomatic corps ? Does he suppose the honor and interests of the country will any linger be entrusted to those, who now represent the national foreign courts ? Or is this a part of his system of retrenchment, that it will be better not to recall ministers, because the appointment of new ones will be attended with expense? These extra charges falling upon the civil list of the present year, will be fully equal to any of the last year, not incident to this. I have therefore sufficient data for assuming that the " civil, miscellaneous, and foreign intercourse," for the present year, will amount to at least 4,500,000. Next come the estimates for the military service. And these the Secretary puts down at $7,725,440 94. Now,, the gentleman from Maine (Mr. EVANS) has so effectually exposed the imposition attempted in this estimate, that I am sure there is not one who heard him that is not fully satisfied on the subject. I see, from the same document to which I have before referred, (No. 265,) that the appropriations for this branch of the service, at the last session, amounted to $8,343,900 83. And so far from the expenses necessary for the same being less this year than they were the last, they must necessarily be more. Not one word is said about the Florida war. House document, No. 70, of the present session, is a letter from the Secretary of War, containing an estimate of the appropria- tions necessary for the Florida war during the year, of which, it seems, $250,690 01 is due for service already performed, as follows : For arrearages to militia called into service by the Governor of Florida - $221,244 02 For pay of a battalion of Georgia volunteers for 3 months' service in 1840 - : 29,446 08 $250,690 10 It seems that there are already, in addition to the regular army in Florida, two thousand militia, 1,200 of them mounted men, and proposed to be increased to 1,500; and, as slated by the Paymaster General, " the President, having subse- quently sanctioned this service, places their claims on a footing with those of the militia regularly called into the service of the United States." According to the estimates submitted in the same document, by the Paymaster General, the Com'mis- sary General of Subsistence, the Surgeon General, and the Ordnance Department, the expenses of paying and subsisting this force for the year 1841, in addition to the arrearages already due, will amount to $2,385,329 75, the whole of which will fall on the year 1841. And, what is remarkable, the chairman of the Com- mittee of Ways and Means had this letter in his possession since the 17th De- cember, without suffering it to be brought to public view here. Mr. JONES. I beg leave to correct the gentleman from North Carolina. The letter was in the possession of the committee, subject to the inspection of all its members. There was no attempt on my part to conceal it. Mr. R. But, sir, I insist it was your duty to have brought it before the notice of the House. In the speech which you made at the commencement of this debate, in which you attempted to sustain the views of the Secretary of the Treasury, in submitting your estimates of receipts and expenditures for the year 1841, you did not include this item of expense for the Florida war. Mr. Chairman, (addressing the Chair,) I repeat, it was the duty of the honorable chairman of the Ways and Means, in his character as Chancellor of the Ex- chequer, with this knowledge in his possession, to have submitted estimates for this Florida war, when he unfolded his budget for 1841, in the speech with which he opened this debate. But he failed to do so ; and the first notice we have of it, rs in a letter laid on our desks, from the Secretary of War to the chair- man of the Ways and Means, dated December 17, 1840. Here, then, is an ad- ditional charge falling upon the year 1841 of $2,385,329, not even alluded to by the Secretary of the Treasury ; which, added to the estimates submitted by him, amounts to the sum of $10,110,770 69 ; and which, added to the appropriations of last year for the same service, amounts to $10,729,230 58. But, says the gentleman from South Carolina, (Mr. RHETT,) the Florida war will probably soon be terminated. Probably soon be terminated ! This is the language we have heard for years. It has long been the theme of Executive re- ports, and of the despatches of commanders-in-chief. Let a few miserable squaws be taken, or starving old men surrender themselves, and it is immediately heralded throughout the land that the power of the Indians has been destroyed ; that they are all coming in ; and that the war will soon be at an end. And the next account we hear is, that blood has been flowing in torrents, and houses have been wrapt in flames.' For every brave destroyed, two seem to spring up in his place. We have, within the last day or 'two, heard of the capture of 60 or 70 Indians; but how often has this been the case heretofore 1 It is impossible to estimate the number of Indians in Florida. Years ago, it was. said there were only a few hundred ; and although we have been destroying them all the while, yet the work of murder and ravage has continued. As soon as the army relaxes its operations, they become emboldened, leave their inaccessible haunts, and com- mence anew their course of pillage and death. You may suppose there is not an Indian in Florida, you may suddenly withdraw your army, and the first thing you hear, may be, that the Indians have reappeared in all their power. Sir, the Flor- ida war is not at an end, nor is it soon likely to be. Sam Jones and Tiger-tail yet lead their merciless bands through the everglades of that ill-fated region ; to- day doing " the deed of death," and to-morrow concealed in the impenetrable swamps. The bloody Mickasukies yet rove through the forests of Florida, leav- ing death and desolation in their track. To legislate with a view to the early dis- bandment of the army in Florida, is to leave your own countrymen exposed to the horrors of savage warfare. To do this through a false economy, is to sell the blood of your citizens for money. It is to surrender a portion of your territory to the savage, and to confess, in the face of the world, that a predatory band of Seminoles has successfully resisted all the boasted power of the Government. To stop the war at this stage, is to compromise the honor of the country. You must, you are compelled to, prosecute it to a successful issue. I therefore take it for granted that, in estimating the appropriations for the military service, you must include the $2,385,329 proposed in the letter from the Secretary of War. It seems that the Secretary of the Treasury, in estimating the reductions for the present year, cuts down the expenses of the Indian department $174,000 be- low the appropriations of last year. I know not whether this is on account of there being funds in the hands of agents yet unpaid, on account of outstanding ap- propriations, or whether it is in pursuance of that system of gradual retrenchment recommended in his report ; for it will be seen by reading the report of the Sec- retary, that he undertakes to read Congress a lecture on economy, after having exhausted the Treasury by his extravagance and mismanagement. And, in point- ing out the causes of, and grounds for, future retrenchment, he says that " fewer Indians remain to be removed," Certainly there are fewer to be removed. But are there fewer that ought to be removed this year than were removed the last ? Judg- ing from the rapid settlement of the Western States, and the consequent pressure around the Indians remaining, I should suppose there were more. I appeal to gentlemen from the Western States from Indiana, Illinois, Michigan, Mis- souri and I ask them, if they are not anxious to have the Indian title to the lands in their States extinguished, and to have those Indians removed to the West? Are they not every day becoming more inconvenient to the whites, and the whites to them ? And yet the Secretary seems to think this system of Indian relations will soon be at an end, and the expense attending it will be lessened every year. This is a most absurd idea'. The Indian relations of this country will constitute a permanent, standing charge upon this Government for one hundred years to come. And as the population of the country increases, and its frontier is extended, tho more complicated and expensive will our Indian relations become. This must be the case, till the vast region from the Mississippi to the Pacific is settled by the white man, and not an Indian is left remaining. The Secretary of the Treasury further says, in pursuance of his pretended anxiety for retrenchment, that the pensions are diminished by deaths. Not so very much, sir. Some of the old revolutionary pensioners die off, to be sure, and I am sorry for it. I wish they could live forever. They serve as a connecting link between the past and the present. They would serve to remind us of our departure from the pure and virtuous principles of the Revolution. And these old men hold on to life well. The same physical vigor which enabled them to perform such deeds of daring in the Revolution, yet preserves to them health and strength. The gentleman from Maine, (Mr. EVANS,) demonstrated that, if they had died off last year at the rate of ten per cent., it would not reduce the pension appropria- tion more than $200,000 ; whereas, the truth is they did not die in near so large a proportion. But, sir, it must be recollected that, whilst the pension list is an- nually lessened by death, it is still annually increasing from additions to the list. . Look at the annual reports of the Commissioner of Pensions, and you will see that this is the case. Look at the quantity of bills on your table for placing additional names on the pension roll many and most of which will probably pass, as soon as time can be obtained to pass upon then). Owing to these facts, I have no doubt but that, for the next five years, the additions, with the arrearage-pay in such cases, will be equal to the diminution from deaths. Assuming, then, that the military service will cost as much this year as it did last, which was $8,343,900 83, and adding the $2,385,329 stated to be necessary by the Secretary of War for the Florida service, and you have an aggregate of $10,729,230, for the military service, which will be found indispensably necessary. Next come the estimates for the navy, which the Secretary puts down at $5,445,399 21. Although I believe this to be much too small, yet, for the pres- ent, I will assume it as a sufficient sum. There is one item, however, of $150,000 for the pay of navy pensioners, which must be added, for which a bill has already passed this House, and for which the Secretary has sent in no estimate, but which will be a charge on the year 1841. But, says the gentleman from South Caroli- na, we do not know that the Senate will pass the bill. Perhaps it may not ; for, until that body is purged, which it is soon likely to be, I believe it capable of any injustice. But that is not the question. The question is, is it right to pass it? Shall we legislate -here under a supposition that one of the branches of the Le- gislature will not do its duty ? You might as well strike out of your estimates any other appropriation for the public service, (the army for example,) because we are not certain the Senate will pass it. You are in duty bound to pay these navy pensioners. You have squandered a fund which was properly theirs, and you are bound, by every consideration of honor, to pay them what is strictly theirs ; and by every principle of gratitude, to reward them for their services. This $150,000, added to the Secretary's estimates, will make the naval service for the year amount to $5,595,399. According to the data I have assumed, and I have placed them at the lowest probable amount, the items of expenditure for the present year will appear as follows, viz : Civil, miscellaneous, and foreign intercourse - $4,500,000 Military service, including Florida war - j -" 10,729,230 Navy pensions - - , " - 150,000 Naval service - - - ... -' - 5,595,399 Appropriations made for the service of the year 1841, by former acts of Congress .--.-- 1,013,200 Balances of appropriations made in 1840 and previously, standing over on the 1st January, 1841, and which will be a charge on the Treasury in 1841, after deducting so much as may remain not called for, and standing over at the close of 1841 - 2,000,000 10 Relief of the corporate cities in the District of Columbia, per act of 26th May, 1836, $139,200; and public debt payable at the Treasury, per act of 3d March, 1817, $10,000 - 149,200 Required to finish public buildings, according to the estimates of the architect - 400,000 Treasury notes and interest, allowing for $500,000, which may not come in during the year - 4,350,000 Amounting in the whole to - - $28,887,029 which is the amount necessarily chargeable upon the year 1841. Here, then, with a probable income of $21,723,473, we must meet an almost inevitable expenditure of $28,887,029. Sir, how can you do it, without borrow- ing money ? You will be compelled to borrow ; and, whether you do it by Treas- ury notes, or, loan, how are you to repay it, unless you raise the duties on imports, or resort to direct taxation? And how are you to sustain the heavy expenditures of coming years, unless you regulate your tariff to meet the demands upon the Treasury 1 But, exclaims the gentleman from Mississippi, (Mr. THOMPSON,) the cry of the Whigs has been reform, and by reform he understands a retrenchment in the expenditures. I can also inform the gentleman that it means honesty in the expenditures. It is not so much the amount expended, of which we have complained, as the manner in which it has been expended : paying $450 a day for steamboats, $20 a cord for wood, purchasing splendid furniture and silver spoons for mud boats, paying high salaries to crowds of loungers attached to your custom-houses, giving high and expensive jobs and contracts to political favorites, &.c. It is such corruption as this, of which we have so muchjcomplained, and which we have promised to reform. If the money which has been collected had been spent for the interest of the country, in disciplining our army, increasing our navy, completing our fortifications, erecting harbors, and other conveniences of commerce,