A Compilation of the Messages and Papers of the Presidents. Volume 5, part 4: James Buchanan
History
A Compilation of the Messages and Papers of the Presidents. Volume 5, part 4: James Buchanan
Buchanan, James, 1791-1868; Presidents -- United States; United States -- History -- Sources; United States -- Politics and government
On the other hand, when I came to examine carefully the condition of the
Post-Office Department, I did not meet as many or as great difficulties
as I had apprehended. Had the bill which failed been confined to
appropriations for the fiscal year ending on the 30th June next, there
would have been no reason of pressing importance for the call of an
extra session. Nothing would become due on contracts (those with
railroad companies only excepted) for carrying the mail for the first
quarter of the present fiscal year, commencing on the 1st of July, until
the 1st of December--less than one week before the meeting of the
present Congress. The reason is that the mail contractors for this and
the current year did not complete their first quarter's service until
the 30th September last, and by the terms of their contracts sixty
days more are allowed for the settlement of their accounts before the
Department could be called upon for payment.
The great difficulty and the great hardship consisted in the failure
to provide for the payment of the deficiency in the fiscal year ending
the 30th June, 1859. The Department had entered into contracts, in
obedience to existing laws, for the service of that fiscal year, and
the contractors were fairly entitled to their compensation as it became
due. The deficiency as stated in the bill amounted to $3,838,728, but
after a careful settlement of all these accounts it has been ascertained
that it amounts to $4,296,009. With the scanty means at his command the
Postmaster-General has managed to pay that portion of this deficiency
which occurred in the first two quarters of the past fiscal year, ending
on the 31st December last. In the meantime the contractors themselves,
under these trying circumstances, have behaved in a manner worthy
of all commendation. They had one resource in the midst of their
embarrassments. After the amount due to each of them had been
ascertained and finally settled according to law, this became a specific
debt of record against the United States, which enabled them to borrow
money on this unquestionable security. Still, they were obliged to
pay interest in consequence of the default of Congress, and on every
principle of justice ought to receive interest from the Government.
This interest should commence from the date when a warrant would have
issued for the payment of the principal had an appropriation been made
for this purpose. Calculated up to the 1st December, it will not exceed
$96,660--a sum not to be taken into account when contrasted with the
great difficulties and embarrassments of a public and private character,
both to the people and the States, which would have resulted from
convening and holding a special session of Congress.
Public-domain text, read in full here on John Shaqi.
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