The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-27

means of ship canal between Lake Erie and Lake
Ontario has been excluded from the above estimate
under the belief, that work so interesting and i'm
port MT in military point OF view, will be construct
ed al the eSpehse and under the authority of The
General Government.
Ii thus appears:
/. That the amount which the State
must eapend under existing laws
for the enlargement and the con-.
struction of canals already com n. ....
menced, will be $40 600
.. That The amount 10 be paid from
time to time, tor taking railroads
for public use whenever The State Wit.
shah find il beneficial TO the public ~"
interest to do So may be from ten
10 twenty millions, according 10 the
exert Of the works TO be selected
or say, 15COO,O00
8 Thai the amount TO be hereafter
authorized for extensions Of the
present canals, may be 100000
Making total of $4,000, 900
/, is not, however to be inferred that the commit
lee intend by stating the above sums TO recommend
expenditure 10 the amount of forty millions upon
our public works II is certain that under existing
laws, al least one half of thai sum must be ex-
pended but whether any portion Of The residue will
BE- appropriated will of course depend upon the views
of the present and succeeding Legislatures. They
wish merely to be understood that il the Leg isalure
from time 10 time shall see fiji TO expcnd that sum, il
may be safely borrowed, withou, imposing any bur.
thenS upon the people and that if the views OF the
Canal Commissioners rs 10 the future revenues OF
the canal, are correct, the whole amount, within
thirty years, may be reimbursed, and added 10 the
productive property of the State Ii is not improba
bic that those who in the habit OF decrying
public works may assert that debt is be incurred
10 an alarming amount, 10 be handed down as grie-
vous burthen TO all future generations; and yet in
truth, We shall only hand down what our fathers
have transmitted 10 us, public works, paid for and
free from debt, and themselves afiordng the means
Of sill further augmentng the power and the wealth
OF those who 10 follow us.
Nor will this event be deemed at all improbable
when we reflect that within the last twenty years the
canals have come down 10 us free from debt and
worth more than twenty millions We are turtu-
natey familiar with the certain operation Of an ex
cess OF revenue in eXtinguishing debt created for
public wn!ksbut for The sake OF presenting the sub
jet in more perspicuous form, an arithmetical
table is MISUNDERSTANDING the gradual progress
OF the deb within the next twenty years, to the
tent OF forty millions and then the successive stages
BY which il will reach its final extinguishmeut,
In respect TO that part Of the annual report ofthe
Comptroller of this State the finances referred 10
the consideration of the committee which suggests
the expediency OF ievyng tax for the purposes OF
the Treasury, they are compelled to state that, in
their Judgment no necessity exists for that measure.
They are aware, that from the year 1927, when the
report of Mr.. Wright announced to the public that
internal improvements could only be sustained by
direct taxation, down to the present time fiscal
officers have habitualiy urged upon the Legislature
the necessity of reSorting to that method Of erying
money for the use OF the State. II is not without
diidence that the committee feel themselves COM
PEELED wholly TO dissent from the experienced ind
vduals, who for the last ten years, have controlled
our public affairs; but after a laborious and careful
investigation they have been unable 10 discover any
reason why such mode of raising money should
have been recommended. In the opinion of the
committee there is no possible ground upon whicha
tax could be justified The Treasury is full and
needs no replenishing and ample means are pro-
vdcd for meeting the future engagements OF The
IT,iar pb rifr tlI1 n
pie 10 the buthcn Of direct tax would be equally
ulwiSe and unnecessary.
1t is stated, however, bv the Comptroller, and the
fact has been repeatedly urged in other official
nirations that Mr. Jefferson lays down the rule that
government disposed to cherish its credit should
never borrow dollar without laying tax 10 the
instant for paying the interest annually, and the princi
pal within given time" But the maxim is not sound,
to the full cxteu, 10 which 1t Is thus attempted TO be
applied II will he recollected that Mr. Jefferson lived
III period Of war and waseful expenditure, and in
speaking of the consequences Of public debt, he doubt
less intended to refer to expenditures upon objects
Of themselves yielding pecunlary return--such the
public defence, the protection of commerce, or the
penses of the civil administration No reason can pos
slby exist for extending the rule debts incurred for
public works, themselves producing IN income cquiva-
lent 10 the ntorest nor is it absolutely requisite that
such revenue shall be received " in the same instant"
IN which the debt is created, provided that il will DC
realized within reasonably moderate period. it may,
indeed be admitted that when such result is probema-
teal, cniy to be realized at PERIOD the
ought tn be LAID when to- work is commenced, provided
always that the government possess other pecuniary
means OF paying the interest But then it Must be
shown that such auxiliary resources arc possessed
for otherwise there could be necessity for levylng
money by tax for the mere purpose OF preserving pecu
mary funds which could be directly and economi-
caIy applied TO the object in question. And this is the
view which the Legislature has taken Of this question,
from the year 1885, when the State tax discontinued,
down 10 the present moment Although annually urged
to levy tax they have annually refused but have
ct 10 rely on the revenues from the public works to
meet the demands their treasury. The result has
shown that they right; for although the State has
constructed, since 1925, lateral canals the amount Of
%3.36i ,30l, has still remaining annual surplus
o nearly $500 GOO and Its people are free from
taxation.
Wlihout pretending. therefore, 10 detract from the
general authority Of the maxim thus quoted, II may be
claimed that experience has Shown It TO be in
accurate, when applied TO debts created for works Of
internal improvement. In truth il is hardly credible
that Mr. Jefferson intended thus TO apply il but if
he dd, il only shows what his ncreduly respect n
the Enc canal had sufficiently testified that enterprises
Of that character had not occupied his mos! deliberate
attention
1t will he perceived, that the very foundation upon
which the financial calculations Of the committee
based is the estimate Of the Canal Commas sub
United to tho gs,loulg, IN which they stat 5at tho
Ere canl w'thn few wears after rs enlargement viii
produce an annual revenue OF 1900 600 he In-
portance Of verifying the accuracy Of this estimate will
he evident any material error would lead TO the most
injurious consequences. Although the inquiry embraced