Rising Sun Times, Volume 4, Number 163, Rising Sun, Ohio County, 24 December 1836 — Page 4

(Continued from iirst page.) $188,71(5; and in a distribution of 30 millions, she would receive hack from the Government according to the ratio of thedeposite bill, the sum of $30G,122: and similar results would follow the comparison between the small and the large Stales throughout the Union; iiin realizing to the small States an ad

vantage which would be doubtless as unacceptable to them as a motive for incorporating the principle m any system which would produce it, as it would be inconsistent with the lights and expectations of the large States. It was certainly the intention of that provision of the Constitution which declares, thai "all duties, imposts, and excises. shall be uniform throughout the United States," to make the burdens of taxation fall equally upon the people in whatever Stale "of the Union they may reside. But what would be the value of such an uniform rule it the money; raised by it could be immediately rei U.r .. lilTim.t w! :i. b Will lUllieil l u 1 11 I -ii l 'iigive to the people of some States much more, and to those of others much less, than their fair proportions ? Were the Federal Government to exempt, in e xpress terms, the imports, products, and manufactures of some portions ot the country from all duties, while it imposed heavy ones on others, the injustice could not be greater. It would be easy to show how, by the operations of such a principle, the large States of the Union would not only have to contribute their just share towards the support of the Federal Governmenl, but also have to bear, in some degree, the taxes necessary to support the Government of their small sisters; but it is deemed unnecessary to state the details where the general principle is so obvious. A system liable to such objections, can never be supposed to have been sanctioned by the framers of the constitution, when they conferred cn Congress the taxing power: and 1 feel persuaded that a mature examination ( the subject will satisfy every one that there are insurmountable difficulties in the operation of any plan which cm be devised of collecting revenue !or the purpose of distributing it. Congress is only authorized to levy taxes W o pa'j tfic debts and provide fir the common di fence and general welfare nf the hnited l files." There is no such provision as would authorise Congress to collect together the property of the country, under the name of revenue, for the purpose of dividing it equally or unequally among the States or the people. Indeed, it is not probable that such an idea ever occurred (o the States when they adop ted the constitution. But however this may be, the only safe rule for us in interpreting the powers granted to the Federal Government, is to regard the absence of express authority to touch a subject so important and delicate as this is, as equivalent to a prohibition. Even if our powers were less doubtful in this respect, as the constitution now stands, there are considerations afforded by recent experience, which would seem to make it our duty to avoid a resort to such a system. All will admit that the simplicity and economy of the Slate governments, mainly depend on I'm fact that money has to be supplied to support them by the same men, or their agent?, who voted it away in appropriations. Hence. when there are extravagant and wasteful appropriations, there must be a corresponding increase of taxes: and the people, becoming awakened, will ne cessarily scrutinize the character of measures which thus increase (heir burdens. By the watchful eye of self-interest, the agents cf the people in the State governments are repressed, and kept within the limits of a just economy. Bui if the necessity of lev) ing the taxes be taken from those who make the appropriations, and thrown upon a more distant and less responsible set of public agents, who have power to approach the people by an indirect and stealthy taxation, there is reason to fear that prodigality will soon superce de those characteristics which have thus far made us look with so much pride and confidence to the Slate Governments, as (he main slay of our Union and liberties. The State Legislatures, instead of studying to restrict lh ir Slate expenditures to the smallest possible sum, wiil claim credit for the ir profusion, and harrass the General Government for increased supplies. Piactically, there would soon be but one taxing power, and thai vested in a body of men far removed from (he people, in which the farming and nw-chan-ic interests would scare e iy bo. represented. The States would gradually lose (heir purity as well as their independence; they would not (hire (o murmur at the proceedings of (lie Gem ral Government, lest tlmy shoal 1 In-e their FUpphes; all would be merged in judical consolidation, cemented by

... iii bloody revolutions which occasionally sich occasionally7 overthrow the despotic systems ot Lie old world. In all the other aspects in which 1 have been able to look at the effect of such a principle of distribution upon the best interests of the country, I can i'o imihMir to compensate for the clisadvantage to which 1 have adverted. If we consider the protective duties, which are, in a great uegrec, the source of the surplus revenue, beueh-,-;.,l ,- c. (i.iM rf tl-,- Union, and prejudicial lo another, there is no cor ,. i reclive i'ov the evil in such a plan ol disti ibution. On the contrary, there is reason to fear that all the complaints which have sprung from this cause would be aggravated. Every one must be sensible that a distribution of the surplus must beget a disposition lo eheri-h the means which create it ; and .snv system, therefore, into which it (-li ters, must have a powerful tendency to ; incre ase rather than diminish the tarifl'. If it were even admitted that the advantages of sucli a system could be made equal to all the sections cf the Union, the reasons already so urgently calling for a reduction of the revenue, would, nevertheless, lose none of their force; for it will always be improbable that an intelligent .and virtuous community can consent to raise a surplus for the mere purpose of dividing it, dimihifhed as it must inevitably be, by (lie expenses of the various machinery necessary lo the process. The safest and simplest mode of obviating all the diflieulties which have be n mentioned, is to collect only rcvenuc enough to meet the wants oi the Government, and let the people keep the balance of the property in their own hands lo be used for their own prolit. Each Stale will then support its own Government, and contribute its due share towards the; rupnoilof the Gerier.l Governmenl. There would bo no surplus to cramp and lesseji (he resources of individual wealth and enterprise, and the banks would be left to their ordinary means. Whatever agitations and fluctuations might arise fr.v.i our unfortunate paper system. they on! ! never be alt i ibuted, justl y or unjustly, to the action of the Federal Government. There would be sonic guaranty that the spirit of wild speculation, which seeks to convert the surplus revenue into banking capital, would be effectually chee ked, and (bat the scenes of demoralization, which are now so prevalent through the kind, would disappear. Without desiring to conceal that the experience and observation of the last two years, have operated a partial change in my views upon this interesting subject, it is nevertheless regretted that the suggestions made by me in mv annual messages of 1859 and 18:30, have been greatly misunderstood. At that time, the great struggle was begun against that laliludiuarian consliuction of (he constitution which aulhorizesthc unlimited appropriation of the rcve- j nues of the Union, to internal improvements within ihe Stales, tending to invest in the hands, and place under the control, of the General Government, all the principal roads and canals of the country, in violation of Stale rights, and in derogation of Slate authority. At the same lime, the condition of the manufacturing interest was such as to create an apprehension that the duties on imports could not, without extensive mischief, be reduced in season to prevent the accumulation of a considerable surplus after the payment of the national debt. In view of the dangers of such a surplus, and in preference lo its application (o internal improvements, in derogation of the rights and powers of the Stales, the suggestion of a a amendment of (he constitution to authorize its distribution was made. It was an alternative for what w . re deemed greater evils a temporary resort !o relieve an ovei burd ened Treasury until the Government could, without a sudden and destructive revulsion in the business of ihe country, gradually return to the just principle of raising no more revenue from the people, in taxes, than is necessary for its economical support. Even that alternative was not spoken of but in connection with an amendment of (he constitution. No temporary inconvenience can justify the exercise of a prohibited power, or a power not granted by that instru ment: and it was from a conviction that the pow er to distribute evena temporary surplus of revenue is of that character that it was suggested only in connection with an appeal to (he source of all legal power in the General (Government, the States which have established it. No such appeal has been taken, and in my opinion a distribution of the i i surplus revenue by Congress, cither to I the Slut.: or to the people, is Q )e con

widespread corruption, which couiu i only be eradicated by one of those

sieiercu as among uie iimuuiuiiS oi the constitution. As already intimated,

i i a. . i, :t.:i: r ui) vies navcmiu,, . ,w-.:,j,M lar as to be convinced mat no alteration of the constitution in this respect is wise or expedient. The iutluence of an accumulating surplus upon the legislation of the General Government and the States, its effects upon the credit system of the country, producing dangerous extensions and ruinous contractions, ilunctuations in the price of property, rash speculation, idleness, extravagance, and a deterioalion of morals, have taught us mo important lesson, uiui any wuusient mischief which may attend the reduction of our revenue to the wants of our Government, is to be borne in preferonce to an overflowing Treasu ry. I beg leave to call your attention to another snbiect intimately associated with the preceding one cy of the country. -th e currenIt is apparent, from the whole context of tiie constitution, as well as the history of the times which gave birth to it ' - - - - 7 that it was the purpose of the conven (ion to establish a currency consisting of the precious metals. These, from (heir peculiar properties, which tendered them the standard of value in all other countries, were adopted in this, as well to establish its commercial standard in reference to foreign countries, by a permanent rule, as to exclude the use of a mutable medium of exchange, such as of certain agricultural commodities, recognized by (lie statutes of some States as a tender for debts, or the still more pernicious expedient of a paper currency. The I. ist, from the experience of the evils of the issues of paper during the revolution, had become so justly obnoxious, as not only to suggest the clause in the constitution, forbiding the emission of bills of credit by the Stales, but also lo produce that vole in the convention which negatived the preposition to grant power to Congress to charter corporations a proposition "11 u:idertood at the lime, as intended to authorize the establishment of a national bank, which was to issue a currency of bank notes, on a capital to be created lo some extent out of Government stocks. Although this proposition was refused by a direct vote of the convention, the object was afterwards in cfle!ct obtained, by its ingeniou- advocates, through a strained consti uction of the constitution. Tin.: debts of tin; revolution were funded, at prices which formed no equivalent compared will the nominal amount of the stock, and under circumstances which exposed the motives of some of those who participated in the passage of the act to distrust. The fact that the value of stocks was greatly enhanced by the creation of the bank, that it was well understood that such would be the case, and that some of the advocates of the measure were largely benefitted by i(, belong lo the the history of limes, and arc well calculated lo diminish the respect which might otherwise have been due to the action of the Congress w hich created the institution. On the establishment of a national bank, it became the interest of its creditors, that gold should be superceded by the paper of the bank, as a geneial currency. A value was soon attached to the gold coins, which made their exportation to foreign countries, as a mercantile commodity, more profitable than (heir retention and use at home as niojey. It followed, as a matter of course, f not designed by those who established the bank, that (he bank became, "I ('fleet, a substitute for the mint of the United Slates. Such was the origin of a national bank currency, and such the beginning of Ihose difficulties which now appear the excessive issues of the hanks incorporated by the various Stales. Although it may not be possible, by any legislative means within our power, Jo change at once the system which "!s been introduced, and has received t!e acquicscense of all portions of the country, it is certainly our duly lo do a'l that is consistent with our constitutional obligations, in preventing the mischiefs which are threatened by its ""due extension. That the efforts of t'ie fathers of our government to guard ''gainst it by a constitutional provision, "cieiounded on an intimate knowledge of the subject, has been frequently attested by the bitter experience of the country. The same causes which led them to refuse their sanction to a power authorizing the establishment of incorporations for banking purposes, now exist it much stronger degree to urge us to exert the utmost vigilance in calling into action the means necessary to correct the evils resulting from the unfortunate exercise of the power, and it is to be hoped that the opportunity for ef-

feeling this great good, will be impro

ved before the country witnesses new scenes of embarrassment and distress. Variableness must ever be the char acteristic of a currency, of which the recious metals are not the chief ingre dient, or which can be expanded or contracted without regard to the prin ciples that regulate the value of those i metals as a standard m the general trade of the world. Willi us, bunk issues constitute such a currency, and must do so until they are made depen-! dent on those just proportions of gold and silver, as a circulating medium which experience has proved to be necessary, not only in this, but in all other commercial countries. Where those proportions are not infused into the cirdilation, and do not control it, it is man-

ifest that prices must vary according to j banks were extending their business and the tide of bank issues, and the value their issues so largely, as to alarm conand stability ef properly must stand ex- side-rate .men, and render it doubtful posed lo all the uncertainly w hich at- j whether these bank credits, if permitlends the administration ol institutions ted to accumulate, would ultimately that are constantly liable to the j be of the least value lo the government, temptation of an interest distinct from j The spirit of expansion and speculation that of the community in w hich thev i was not confined to the deposit banks,

are established. The progress of an expansion, or rather a depreciation of the currency, by excessive bank issues, isalwaysaltcmicd by a loss to the laboring classes. This portion of the community have neither time nor opportunity to watch the ebbs and flows of (he money market. Engaged from day (o day in their usual toils, thev do not perceive that, aliho' their wages are nominally the same, or j even somewhat higher, thev are greatly i reduced in fact by the rapid increase of j a spurious cuirency, which, as it ap-j

pears to make money abound, (hey are crt'tai'.V the 1 reasury, requiring payat first inclined to consider a blessing. mctlt for l!ie public lands sold,lo be It is not so with the speculator, by w hom mr,(!e in specie, with an exception until this operation is belter understood, and ,i)e lilh f Iue present month, in favor is made to contribute to his advantage. ' actual settlers. This measure has

It is not until the prices of the necessaries of life become so dear that the laboi ingclasses cannot supply their wants out of their wages, that the wages ris"0, and gradually reach a justlv proportioned rate to that of the products of their labor. When thus by the dopreelation in conseqm m e of the quantity of paper in circulation, wages us well as prices become exorbitant, it is soon found that the whole e flee I of the adulteration is a tariff on our home industry for the benefit of the countries where gold and silver circulate, and maintain unit nnlty and moderation in piices. It is then perceived that the enhancement of the price of land and labor produces a corresponding m ... crease in (he price of products, until these, products do not sustain a eoitipe tition with similar ones in other countries; and thus both manufactured and agricultural productions cease to beatexportation from the countiy of the spurious currency, because they cannot be sold for cost. This is the process by w hich specie is banished by the paper of ihe banks. Their vaults arc soon exhausted to pay for foreign commodities; the next step is a stoppage of specie payment; a total degradation of paper as a currency; unusual depression of prices; the ruin of debtors, and the accumulation of properly in ihe hands of creditors and cautious capitalists. It was in view of these evils, together with the dangerous power wielded by the Bank of Ihe United States, and its repugnance to our constitution, that 1 was induced to exert the power conferred upon me by the American people, to prevent the continuance of that institution. But although various dangers to our republican institutions have been obviated by the failure of that bank to extort from (he government a renewal of its charter, it is obvious that little has been accomplished, except a salutary change of public opinion, towards restoring to the country the sound currency provided for in the constitution. In the acts of the several States prohibiting the circulation of small noles,and the auxiliary enactment of Congress at the last session forbidding their reception or payment on public account, the (rue policy of the country has been advanced, and a larger portion of the precious metals infused into our circulating medium. These measures will probably be followed up, in due lime, by the enactment of State laws banishing from circulation bank notes of still higher denominations; and the object may be materially promoted by further acts of Congress", forbidding the employment, as fiscal agents, of such banks as continue to issue notes of low denominations, and throw impediments in the way of the circulation of gold and silver. The eflects of an extension of hank credits and over issues of bank paper, have been strikingly illustrated in the sales of Ihe public lands. From the returns made by (he various Registers and lleceivers, in the early part of last summer, it was perceived that the re ceipts arising from the sales of the pub lic lands, were increasing lo an unprc-

cedented amount. In effect, however, these receipts amounted to nothing more than credit in hank. The banks lent out their notes to speculators ; they were paid to the lleceivers, and immediately returned to the banks, to be lent out again and again, being the mere instruments to transfer to speculators the

most valuable public land, and pay the government oy a credit on the books of the banks. Those credits on the books of some of the western banks, ususually called deposits, were already greatly beyond their immediate means of payment, and were rapidly increasing. Indeed each speculation furnished means for another; for no sooner had one individual or company paid in the notes, than they were immediately lent to another for a like purpose, and the but pervaded the whole multitude of banks throughout the Union, and was giving rise (o new institutions to aggravate the evil. The safety of the public funds, and the interest of the people generally, required that these operations should be checked; and it became the duty of every branch of the General and Slate Governments to adopt all legitimate and proper means (o produce (bat salutary effect. Under (his view of my duty, I directed the issuing of the order which will belaid before you by Ihe Seproduced many salutary consequences. It checked ihe career of the western Banks, and gave them additional strength in anticipation of the pressure which has since pervaded our Eastern as well as the European commercial cities. By preventing the extension of the credit system, it measurably cut ofT Ihe means of speculation, and retarded its progress in monopolizing the most valuable of the public lands. It has tended to save the new States from a non-resident proprietorship, one of (he greatest obstacles (o the advancement of a new country and the prosperity of an old one. It lias tended to keep open ihe public lands for entry by emigrants it government prices, instead of their i !,cillS compelled (o purchase of speculators at double and treble prices. And it is conveying into Ihe interior large sums in silver and gold, there to enter permanently into the currency of ihe country, and place it on a firmer foundation. It is confidently believed that the country will find in the motives w hich induced that order, and the happy consequences which will have ensued, much to commend and nothing to condemn. It remains for Congress if they approve the policy which dictated this order, to follow it up in its various bearings. Much good in my judgement, would be produced by prohibiting sales of the public lands, except to actual settlers at a reasonable reduction of price, and to limit thequantily which shall be sold to them. Although it is believed the General Government never ought to receive any thing but the constitutional currency in exchange for the public lands, that point would be of less importance if the lands were sold for immediate settlement and cultivation. Indeed, there is scarcely a mischief arising out of our present landsystem, including the accumulating surplus of revenue, which would not be remedied at once by a restriction on land sales to actual settlers; and it promises other advantages tolhe country in general, ami to the new Slates in particular, w hich cannot fail to re-, ceive the most profound consideration, of Congre ss. Experience continues to realize Iho expeetations entertained as to the ca-. pacity of the Stale Banks, to perform the duties of fiscal agents for the governmenl, at the time of the removal of the deposits. It was nlledged by the advocates of the bank of theU. States, that the State banks, whatever might be the regulations of the Treasury Department, could not make the transfers re quired by Ihe Governmenl, or negotiate the domestic exchanges of the countiy. It is now well ascertained, that the real domestic, exchanges performed, through discounts by the United States Bank and its Iwpnty-five branches, were at least one-third less than those of the deposit banks for an equal period of time, and if a comparison be instituted between the amounts of service rendered by these institutions on the broader basis which has beca (Continued on second page.)