The Second War with England, Vol. 2 of 2Headley, Joel Tyler
History
The Second War with England, Vol. 2 of 2
Headley, Joel Tyler
United States -- History -- War of 1812
During the agitation and excitement preceding the bombardment of Fort
McHenry, and the battles of Champlain and Plattsburg, the members of
Congress were slowly gathering to the ruined Capital, and two days
after Brown's gallant sortie from Fort Erie, assembled in the Patent
Office, the only public building left standing by the enemy.
Notwithstanding the glorious victories that had marked the summer
campaign, a gloom rested on Congress. The Government, indeed,
presented a melancholy spectacle, sitting amid the ashes of the
Capital, while the fact could not be disguised that the Commissioners
at Ghent gave no hope of peace. The war seemed far as ever from a
termination, while England, released from the drains on her troops,
navy and treasury, by the Continental war, was evidently making
preparations for grander and more terrible exhibitions of her power.
Her forces were gathering and her fleets accumulating upon our coast
for the avowed purpose of demolishing our seaports, burning up our
shipping, destroying our cities, and carrying a wide-spread desolation
along our shores. To meet the expenses required to resist these
attacks, a vast accession of funds was necessary, and yet the Treasury
was worse than empty. The effort to borrow, in August, the paltry sum
of six millions, a part of the $25,000,000 voted, had proved
unsuccessful, not half the amount being taken and that at less than 80
per cent. In May previous over nine millions and a half had been
obtained at from 85 to 88 per cent, and yet while victories were
illustrating our arms, not $3,000,000 would now be taken, and the
offers for that all below 80 per cent.
As the Treasury accounts stood at the close of the second quarter of
the year 1814, Mr. Campbell, the Secretary, estimated that nearly
twenty-five millions of dollars would be necessary to meet the
expenditures of the remaining two quarters. The public revenue during
that time would be nearly five millions, which the two loans and four
millions of Treasury notes would swell to a little over thirteen
millions, leaving about eleven millions to be obtained by some process
or other. A foreign loan of six millions was recommended.
Added to this the currency was thoroughly deranged. New banks had set
a vast amount of paper afloat, while the specie was all drained off to
pay for British goods, which surreptitiously got into the country. The
banks of the District of Columbia suspended payment with the British
invasion, and the panic spreading northward, there commenced a run
upon the banks which in turn stopped payment, until out of New
England, a large bank could scarcely be found that had not suspended.
The expense of maintaining such a vast army of militia as was kept on
foot, called for enormous disbursements, and many saw national
bankruptcy in the future should the war continue.
Public-domain text, read in full here on John Shaqi.
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