In this political scheme, whatever its merits or its originality,
everything was made to depend upon financial management, and, since the
temptation to borrow money was the great danger, payment of the debt was
the great dogma of the Democratic principle. "The discharge of the debt
is vital to the destinies of our government," wrote Mr. Jefferson to Mr.
Gallatin in October, 1809, when the latter was desperately struggling to
maintain his grasp on the Administration; "we shall never see another
President and Secretary of the Treasury _making all other objects
subordinate to this_." And Mr. Gallatin replied: "The reduction of the
debt was certainly the principal object in bringing me into office."
With the reduction of debt, by parity of reasoning, reduction of
taxation went hand in hand. On this subject Mr. Gallatin's own words at
the outset of his term of office give the clearest idea of his views. On
the 16th November, 1801, he wrote to Mr. Jefferson:
"If we cannot, with the probable amount of impost and sale of lands, pay
the debt at the rate proposed and support the establishments on the
proposed plans, one of three things must be done; either to continue the
internal taxes, or to reduce the expenditure still more, or to discharge
the debt with less rapidity. The last recourse to me is the most
objectionable, not only because I am firmly of opinion that if the
present Administration and Congress do not take the most effective
measures for that object, the debt will be entailed on us and the
ensuing generations, together with all the systems which support it and
which it supports, but also, any sinking fund operating in an increased
ratio as it progresses, a very small deduction from an appropriation for
that object would make a considerable difference in the ultimate term of
redemption which, provided we can in some shape manage the three per
cents, without redeeming them at their nominal value, I think may be
paid at fourteen or fifteen years.
"On the other hand, if this Administration shall not reduce taxes, they
never will be permanently reduced. To strike at the root of the evil and
avert the danger of increasing taxes, encroaching government,
temptations to offensive wars, &c., nothing can be more effectual than a
repeal of _all_ internal taxes; but let them all go and not one remain
on which sister taxes may be hereafter engrafted. I agree most fully
with you that pretended tax-preparations, treasure-preparations, and
army-preparations against contingent wars tend only to encourage wars.
If the United States shall unavoidably be drawn into a war, the people
will submit to any necessary tax, and the system of internal taxation
which then shall be thought best adapted to the then situation of the
country may be created instead of engrafted on the old or present plan.
If there shall be no real necessity for them, their abolition by this
Administration will most powerfully deter any other from reviving them."
Public-domain text, read in full here on John Shaqi.
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