History of the United States of America, Volume 8 (of 9) : $b During the second administration of James MadisonAdams, Henry
History
History of the United States of America, Volume 8 (of 9) : $b During the second administration of James Madison
Adams, Henry
United States -- History -- 1801-1809; United States -- History -- 1809-1817
The Southern preference for government paper currency lay at the bottom
of Calhoun’s scheme as of Jefferson’s, and seemed to Dallas to combine
ignorance with dishonesty. Treasury notes bearing interest could not
be made to serve as a currency, and were useless as a foundation for
government paper. “What use is there,” asked Ingersoll,[364] “in such
a mass of banking machinery to give circulation to some millions of
Treasury notes? Why not issue them at once without this unwieldy, this
unnecessary medium?” Yet when Bolling Hall of Georgia, in pursuance of
Macon’s aphorism that “paper money never was beat,” moved, November 12,
Resolutions authorizing the issue of Treasury notes as legal tender,
the House refused to consider it by a vote of ninety-five to forty-two.
Eppes did not vote; Calhoun voted against it, and of the twenty-five
Southern members who supported it Macon and Stanford were the most
prominent.
Nothing could be plainer than that the House must ultimately come to
inconvertible government paper, whether issued by the Treasury or by
a Bank. Dallas, Eppes, and Calhoun were all agreed on that point, if
on no other; but after Congress had sat two months and a half, the
House was no nearer a decision than when it met. The Federalists,
voting at one time with Calhoun, at another with Dallas, were able to
paralyze action. Eppes wrote to Dallas, December 2, inviting further
information; and Dallas wrote back the same day, recounting the needs
of the Treasury for the current month, merely on account of the
national debt. Dallas reported that $5,726,000 in Treasury notes and
dividends were due, or would fall due by January 1; and that including
unavailable bank-credits, and subject to possible contingencies,
the Treasury might contain resources to meet these demands to the
amount of $3,972,000.[365] Eppes could do no more for immediate
relief than report a bill for the issue of some ten millions more of
interest-bearing Treasury notes, which was passed without debate and
became law, December 26, without improving the situation.
The House also passed the heavy tax-bills without much opposition
except from Federalists who wished to stop military operations on the
part of the government. Between thirty and forty members, or about one
half of the Federalists, carried their opposition to that point. The
bill raising the direct tax to six million dollars passed the House,
December 22, by a vote of one hundred and six to fifty-three, and
passed the Senate, January 5, 1815, by twenty-three to seven. Dallas
and Eppes hoped to raise about twenty million dollars through the new
taxation, or twice what had been previously attempted. Jefferson held
that these taxes could not be paid, and expressed his opinion without
reserve.
Public-domain text, read in full here on John Shaqi.
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