Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1836-12-13

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ulaiisn. The possession aud use Of the property
out Of which this surplus created, belong 10 the
| peope-but the government has transferred its
possession 10 incorporated banks, whose interest and
| effort il is to make large prohtD out Of its use.-
This process need only be stated to show its inus-
! tice and bad policy.
! And the same observations apply to the influence
which il produced by the steps necessary 10 collect
ne well as distribute such revenue. About three
flhs tf all the duties on imports are paid in the city
| of New York but i is obvious that the means to
nav those duties are drawn from every quarter Of the
| Union. Every citizen ia every State, who purch-
ases and consumes an article which has paid duty
at that port, contributes to the accumulalng mass
| The surplus collected there must, therefore, he
| made up out Of money or property Withdrawn from
other points and ether states. Thus the wealth and
| business of every region from which these surplus
funds proceed must be To some extent injured, while
that Of the place where the funds cnrated,
| and are employed in banking, are proporiionably
extended. Bu both in making the transfer Of the
| funds which are first necessary 10 pay the duties
and collect the surplus-and in making the re-irans-
| fer which becomes necessary when the time arrives
for the distribution Of that surplus---here il con-
siderable period when the funds cannot be bro into
use and it is manifest that, besides the loss newt
| able from such opinion, its tendency is 10 pro-
| duce fluctuations in the business Of thel country,
| which are always productive Of spe culation and
detrimental TO the interest Of tho regular Trade
Argument can scarcely be necessary to show that
measure Of this character ought not to receive
! further legislative encouragement
BY examining the practical operations of the ra-
ito e,f distribution, adopted the deposie bill of
last session. we shall discover other features that
appear equally Objectionable. Let it be assumed,
for the sake Of argument, that the surplus money
| be deposited with the Stetss have boen collected
and belong them, in the ratio Of their federal fsp-
| rcsentative population-an assumption founded up
on the fact that any DEFICIENCIES in our future reven-
ne from imposts and public lands, must be made up
] by direct taxes collected from the States in that
I'D IL
s30O0OO00 not according to the ratio in which it
has been collected and belongs to the people of the
States, but in that of their votes in the colleges Of
electors Of President and Vice President. The
| effect of distribution upon that ratio is shown by
the annexed table, marked A.
BY an examination Of that table, it will be per-
ceived that in the distribution u surplus Of $780,
OOOOOO upon that basis, there is great departure
from the principe VIII ch regards representa- on as
the true measure Of taxation and it will be found
hat the tendency Of that departure will be to in
uease whatever inequalities have been suppos ed to
| attend the operation Of our federal system in res
pet to its bearings upon the different interests Of
lie Union. In making the basis Of representa-
tim, the trainers Of the constitution intended 10
eoalizo the burdens which are necessary to sup
| port the Government; and the adoption Of that
raio, while it accomplished this object was also the
means Of adjusting other great topics arising out Of
the conflicting views respecting the political equality
of the various members II the coniederaoy. What
ever therefore disturbs the liberal spirit Uf com
promise which established rule Of taxation SO jus
and equitable, and which experience has proved &c
be so well adapted TO the genius and habits Of ou
people, should be received with the greatest caution
and distrust.
beg leave to call your attention TO mother
) subject intimately associated with The proceed
ing one the currency oil the country.
+ Ii is apparent, from the whole context Of III,
constitution, as well as the history Of thu time
which gave birth TO il, that il was the ptrpos
= Of the convention to establish a currency con
sisting Of the precious metals. These, from
their peculiar properties, which rendered then
the standard o. value IN other countries, wer
4 adopted in this, as well 10 establish ils com
= metoial standard in reference to foreign coun
9 tries by permanent rule, as 10 exclude the us
8 Of mutabo medium Of exchange, such us az
! rculural commodities, recognised by the sia
tutes OF some states as a tender for debts, O
the still more pernicious expedent of par
- currency The last, from the experience c
c the evils Of the issue Of paper during the rcvo
e luton, Lad become SO justly obnoxious, az No
n only TO suggest the clause In the constitution
!. (orbldding the emission Of bills Of credit by tn
" states, but also 10 produce that vote in the cor
b. ~ention which negatived tho proposition
Q grant rover TO Congress TO charter corpora
= tiuns-a proposition well understood at III
y time, as intended 10 authorize the establish
!. ment Of national bank, which was TO issue
= currency Of bank notes, on capital TO be or,
al ated TO some extent Of government stock
ii Although this proposition was refused by
- direct vote of the convention, the object wa
10 afterwards in effect obtained, by the ingenio,
., advocates through a strained construction
n the constitution. The debts of the revoluio
,e were funded, at prices which formed no ECU
r valent compared with the nominal amonnf
stock, and under circumstances which expos,
ry the motives Of some OF those who participate
Us IN the passage Of the act TO distrust.
ns The facts that the value Of the stock vi
n greatly advanced by the creation OF the ban
G. il was well understood that such would be d
ne case, and that some of the advocates of q
he measures were largely benefited by il, belor
TO the history OF the times, and are well calc
ny lated to diminish the respect which mig
he otherwise have been due TO the action OF 1
uS Congress which created The institution.
os On the establishment OF a national bank,
lid became the interest Of it's creditors, that 60
an should be superseded blythe paper of the ban
sc as q general currency. A value was soon
ry tached 10 the gold coins, which made their G
nu portation to foreign countries, as a mercant
b;' commodity, more profitable than their rete
ton and use at home as money. 1t followe
as matter Of course, if not designed by tho
~ who established the bank, that the bank
rs came, in effect a substitute for the mint of /
Try United States.
he Such was the origin OF a national bank CT
ck rency, and such the beginning Of those di
OF cuties which now appear on the extensi
an issues Of tho banks inc, Tporated in the vario
.ch states.
lax Although it may not be possible, by any Il
Gut lsative means within our power, TO change
yer once the system which thus has been int
Die dnced, and has received the acquescence
los all portions of the country, il is certainly
IN, duty to do all that is consistent with our C,
cal sriiutien obligations in preventing the n,
zen chiefs which are threatened by its undue
TO tension. That the Efforts of the fathers of