It is certain that Mr. Gallatin was opposed to "protective" revenue. His
preference was for an "even" duty on all imports. This is not the place
for an economic discussion. The true policy of the United States is
probably between the extremes of protection and free trade. The nature
of our population has been changed by the enormous immigration of the
last fifty years. Moreover, instead of an absolute freedom from debt the
nation has had to endure the legacy of debt left by the Civil War, to
meet which a development of all its resources of manufacture as well as
of agriculture is required.
_Administration_
To arrive at a correct estimate of Mr. Gallatin's administration of the
Treasury Department, a cursory review of the establishment as he
received it from the hands of Mr. Wolcott is necessary. This review is
confined to administration in its limited sense, namely, the direction
of its clerical management under the provisions of statute law. The
organization of the department as originated by Hamilton and established
by the act of September 2, 1789, provided for a secretary of the
treasury as head of the department, whose general duty should be to
supervise the fiscal affairs of the country, and particularly to suggest
and prepare plans for the improvement and support of the public credit;
and, under his direction and supervision, a comptroller to adjust and
preserve accounts; an auditor to receive, examine, and rectify accounts;
a treasurer to receive, keep, and disburse moneys on warrants signed and
countersigned; a register to keep the accounts of receipts and
expenditures; and an assistant to the secretary of the treasury to fill
any vacancy from absence or other temporary cause. In addition to the
departments of State, Treasury, and War, a fourth, that of the Navy, was
established April 30, 1798. The three departments were brought into
relation with that of the Treasury by an act passed July 16, 1798,
supplementary to that organizing the Treasury, and which provided, 1st,
for the appointment of an accountant in each department, who was
required to report to the accounting officer of the Treasury; 2d, that
the Treasurer of the United States should only disburse by warrants on
the Treasury, countersigned by the accountant of the Treasury; 3d, that
all purchases for supplies for military or naval service should be
subject to the inspection and revision of the officers of the Treasury.
Mr. Jefferson, after his usual fashion of economy in the wrong
direction, proposed to Mr. Gallatin "to amalgamate the comptroller and
auditor into one, and reduce the register to a clerk of accounts: so
that the organization should consist, as it should at first, of a keeper
of money, a keeper of accounts, and the head of the department." But in
the Treasury Department there was no extravagance during Gallatin's
administration, and the shifting of responsibility would bring no saving
of salaries.
Public-domain text, read in full here on John Shaqi.
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