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Subject Area: Economics
Subject Area: Political Theory

GALLATIN TO MONROE. - Albert Gallatin, The Writings of Albert Gallatin, vol. 2 [1879]

Edition used:

The Writings of Albert Gallatin, ed. Henry Adams (Philadelphia: J.B. Lippincott, 1879). 3 vols.

Part of: The Writings of Albert Gallatin, 3 vols.

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GALLATIN TO MONROE.

No. 2.

Sir,

You were informed by my despatch No. 1 of my arrival in this city on the 9th of last month. On the 11th I had the audience from the King, to whom I delivered my letters of credence. The reception, both from him and from the Princes, was what is called gracious, and accompanied with the usual expressions of most friendly disposition towards the United States.

My abode here has been too short to enable me to form any opinion of the prospect we have of succeeding in obtaining the indemnities so justly due to our citizens, and I do not wish to enter into the discussion until I shall have ascertained as far as practicable the disposition of this government in that respect. Whatever this may be, the situation of their finances will be a formidable obstacle in our way. That there will be a great deficit this and every succeeding year until the foreign contributions are discharged is notorious. The precise amount of that deficit for this year is not so well known, but, from a source entitled to confidence, has been stated to me as exceeding three hundred and fifty millions of francs. It is not believed that any practical increase of taxes can produce more than one hundred millions. The residue, or 250 millions a year for five years, must therefore remain unpaid, or be provided for by creating new stock. That situation would, indeed, be deplorable in a country where there is no public credit, and where the Treasury cannot raise money in any other manner than by selling their 5 per cent. stock at the market rate, which does not now exceed 58 per cent. I still hope that the statement is exaggerated; but the reliance which seems to be placed on the forbearance of the allied powers confirms the opinion that the internal resources are not sufficient to meet the foreign demands.

It has been suggested to me that some classes of claims, particularly that of vessels burnt at sea, would, if pressed by themselves, have a better chance of being admitted; but, unless otherwise instructed, I will not pursue a course which might injure the general mass of our claims. . . .