The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1836-12-14
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o them equally, would be liable to all the
objections which apply to the principle
ofan equal division o. properly. To make
the General Government the instrument
Of carrying this odious principle into cf-
feet, would be at once to des roy the
means Of its usefulness, and change the
character designed for it by the trainers
Of the constitution
But the more extended and injurious
consequences likely T. result from po-
licy which would collect surplus re.
venue for the purpo Of distributing it,
may be forcibly illustrated by an cx-
animation Of the effects already produced
bv the present deposit act. This act,
although certainly designed to secure the
safe keeping fthe public revenue, is not
entirely free in its tendencies from many
ofthe objections which apply to this prin-
cIple of distribution. The Government
had without necessity, received from the
people a large surplus, which, instead Of
being employed as heretofore, Il returned
to them by means Of the public expendi-
ture. was deposited with sundry banks.
The banks proceeded to make loans upon
this surplus, and thus converted it into
banking capital and in this manner it
has tended to multiply bank charters, and
has had a great agency in producing a
spirit of wild speculation. The posses
sion and use OF the property out of which
this surplus was created, belong to the
people but the Government has trans.
ferred its possessi IN to Incorporated banks
whose interest and effort it is to make
large profits out Of its use. This pro-
cess need only to be stated to show it's
injustice and bad policy.
And the same observations apply to the
influence which is produced by the steps
nece Isary to collect, as well as to disiri-
butte such revenue. About three iiihs
of all the duties on imports are paid in
the city Of New. ork, but it is obvious
that the means to pay those duties are
drawn from every quarter Of the Union
Every citizen IN every State, who pur-
chases and consumes an article which
has paid duty at that port, contributes
T. the accumulatiag mass The surplus
collected there must, therefore be made
up of moneys or property Withdrawn from
other points and other States. Thus the
wealth and business of every region from
which these surplus funds proceed, must
be 10 some extent injured, while that of
the place where the funds are concen-
trated and are employed in banking, are
proportioLally extended. But both in
making the transfer Of the funds which
are first necessary to pay the duties aud
collect the surplus--and in making the
re.transter, which becomes necessary
when the time arrives for the distribution
of that surplus there is considerable
period when the funds cannot be brought
iito use ; and it is manifest that besides
the loss inevitable from such an operation
its tendency is to produce fluctuations in
the business ofthe country, which are al.
ways productive Of speculation, and de-
trimer tai to the interests o! regular trade.
Argument can scarcely be necessary to
show that n measure Of this nature ought
not to receive further legislative encou.
ragemeat.
BY examining the practical operation
Of the ratio for distribution, adopted in the
deposte bill of tho last session, we shall
discover other features that appear equal.
ly Objectionable. LIE, it be assumed, for
the sake of argument, that the surplus
moneys to be deposited with the States
have been collected, AMI belong to
them, in the ratio of their federal re-
preventative population assumption
Eps dpI M ha hot .l.,t
cos in our future revenue from imposis
and public lands must be made up by
direct taxes collected from the States in
that ratio. II is proposed to distribute
the surplus, say S3O000.000 not accord.
ing to tho ratio in which it has been col.
lected and belongs to the peorIe of the
States, but in that of their vo;es in the
colleges Of electors of President and Vice
President. The effect of distribution
upon that ratio is shown in the annexed
table marked A.
BY an examination of tn II table, it will
be perceived tha, in the distribution of a
surplus of $40, 100000, upon that basis.
there is great departure from the prin-
cple which regards representation as The
true measure of taxation and it will be
found that the tendency of that departure
will be TO Increase whatever inequalities
have been supposed to attend the opera.
tion ofour federal system in respect to its
bearings upon the different interes Is of the
Union In making the basis ofreprcsen-
tation the basis of taxatiol, the trainers
ofthe Constitution intended to cquslizo
the burdens which are necessary to sup.
port the Government, and the adoption of
that ratio. while it accomplished this ,b.
jectwas also the means of adjusting other
great topics arising out of the coiiliciing
views respecting the political equality Of
the various members of the coniederacy.
Whatever, therefore, disiurbs the liberal
spirit Of the compromises which establish.
ed rule OF taxation 50 just aud equitable,
and which experience has proved to be so
well adapted to the genius and habits OF
our people, should be received with the