Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-09-07


good policy required it; That past experience denonsa
ed its necessity and ne believed it TO be according l"
Inc spirit Of the Constitution and the obvious
of the trainers of that instrument lie was wen sa',s
Cd fran reason and reflection, as well as from Inc
LIGHTS Of former xpe that the Stae oanhs' oi"
their limited and local character anu rom 'iIe
and unconuected existence. under dereht S'a" ~
rites could never harmonousiy adequo'eiy' anu rn
cieny perform The iuhcuohs VI h'e'4 1s' " WV
Mr. d observed that it was principle long esia:
bished in Virginia, tina, the business and operations Of
a,.h Goverpnent State and Federal, should be kept
se,a,ate and distinct That each Government should
be confined It's orbit; that each should separately
exercise lis appropriate powers; that oices and
the administration Of the two Governments should not
be united or blended in the same persons-are IN the
good old Commonwealth Of Virginia, regarded os card.
nal doctrines The proposed connection between the
banks and the Federal Government-the mixture OF
the revenues of the two Governments in the hands o
q common fiscal ngent--he TRANSMISSION Of the moneys
Of The Federal Government into the business o Cor
pora,ous-are palpahle violation Of the political cree"
Of Virginia, which she has constantly and a'den'y
cherished Such was The wakeful jealousy on inns suo
ec such the anxious desire to establish ana SECURE
this great principle of Slate sovereignty (donoess 10
guard effectuay against any sinister influence On .he
part Of the Federal GovcrnmenOthat at the very hst
session afler the Virginia Convention had rethcd Inc
Federal Constitution, the Legislature enacted mat any
person holding any office place, any commission OF
appointment whatsoever, whether any pay or emoiu'
ment was attached thereto or not, or II IN any way ac
eep,inp or receiving any emo,ument whatever should
be entirely disqualified for holding any othce IN the
State And the preamble of the nc after reciting that
the Convention had assen,sd TO the Federal Constitu
ton and the creation OF Federal Government Geca7es,
that il is Judged expeden and necessary that those
emnloyed in the Administration Of said Government
ought be disqualified from holding or administering
any office place whatsoever under the Governments
the Commonwealth
This was The doctrine maintained from The first by the
Revolutionary fathers Of the Old Dominion, and solemn
" embodied into law in l7e5, at the session that inter
vened between the act OF ratification and tie commence
men, Of the Federal Government From that period to
the present has been carefully preserved among our
living statutes And for The purpose Of upholding The
principle OF keeping the State and all It's insiitu
tons exempt from any improper influence or interior
ence by the Federal Government is part OF our fun
danpnal law, provision Of our amended Constitution
that certain persons in the service Of the U shall be
incapable Of exercising the elective franchise Mr. "
unhesslingly ayowed that he 'cGS one OF those VINO
advocated entire separation between the revenues oil
the Federal Government and the State Banks
Mr.. Chairman, | have also charged this scheme, OF
surrendering the 10 the use and employment
of the banks with conradicng the settled doctrines OF
political economy, aud grossly msiaking the nature and
effect of taxation and public expenditure. On THIS
branch of The subject might Gean the committee with
numerous references authors Of established repuatlon
and with copious extracts from their erude nvestIga
tons Admon:shed by the brevty OF our time, and out
Of respect 10 the anxiety Of others TO be heard will
content myself with few quotations from single writer.
On the subject Of public expenditure, Of consumption
by The Government, will take the liberty of reading
from Says Political Economy, the following
"if have made myself understood, III the commence.
men, Of this third book, my readers will have no diff!
Guilty in comprehendlng that public consumption, or that
which takes place for The general utility OF The whole
community, precisely analogous to that ct consump
ton which goes 10 satisfy the wants of individuals or
families. In either case there a destruction Of va.
lues and loss Of wealth. although, perhaps 10, sh
ling Of specie gees out Of the country.
"By way Of ensurIng conviction Of the truth Of this
position let trace, from FIRST TO last The passage Of
product towards ultimate consumption tie public
count.
"The Government exacts from tax payer the pay
ment Of given tax in the shape Of money 10 meet
this demand the tax payer exchanges part OF The pro-
ducts al his disposal for coin, which he pays 10 the tax
gatbeter: second set Of Government agents busted
in buying with that cloth and other necessaries i
the soldery Up 10 this point. there is no value lost or
consumed; there has only been cautious transfer Of
value and subSe quent act Of barter: but the value con
tbuted by the subject still exists in The shape Of stores
and supplies in the military depot In the end howe
yer, this value is consumed and then the portion Of
wealth which passes from the hands Of the tax payer IN
TO those of the tax gaerer destroyed and annhaIed
"Yet il is not the of money that s destroyed: that
has only passed from hand 10 another either without
any RETURN when it passed from the payer 10 the
tax Csherer, in exchange for nqu~or"i, as when
it passed from The Government agent 10 the contractor
for clothing and supplies. The value OF the money sur
wives The whole operation and goes through three four,
or dozen hands without any sensible alteration: 1t is
the value Of the clothing and necessares that disappears
with precisely the effect if the tax payer had,
with the same mnney purchased clothing and necessa
ries for his private consumption The sole dilier.
ence is, that the individual in the case, and the
State in the other enjoys the satisfaction resulting from
that con. unption.
"The same reasoning may be applied ali other kinds
OF public consumption. When The money Of the tax.
payer goes pay the salary Of public officer, that Of
ce sells his time, his talents, and his cxertions, TO the
public, all which consumed for pub Ic purposes. On
Ot
payer the value he receives in lieu of his services in
the any clerk person in the private
employ of the tax payer would do.
There has long been prevalent notion, that the
values paid by the community Tor the public service
turn 10 again in some shnre or other in the vulgar
phrase that what Government and lis agents receive IS
refunded again by their expenditure This is gross
faacy, but that has been productive OF Infinite
chief nasnuch II has been the preiext for great
deal of shameless waste aud diapidation The value
paid TO Government by the tax payer given without
equivalent OF return; 1t is expended by the Government,
in the purchase OF personal service OF objects Of con
sumption; in word Of products Of equivalsn value
which actually transferred. Purchase exchange
is a very different thing from restitution"
Turn it which you will. this operation, though
often very complex in the execution must always be
ducible by analysis TO this plain statement A product
consumed must always be product lost be the con.
sumner who he may: lost without return whenever no
value advantage is received IN return but to the lax
payer the advantages derived from the services Of the
public unctOnary, from the consumption effected in
the prosecution of public objects is positive return
elf, then, public and private expenditure affect So
cal wealth in the manner, the principles Of econo
N.Y. by which it should be regulated must be the same
in both There two kinds of economy any
than two kinds Of honesty Of morality. If
Government or an individual consume in such way
to give brh to product larger than that consumed,
successful effort Of productive industry viii be made II
product result from the acl of consumption there is
loss Of value whether 10 The State the individual
yet probably that loss Of value may have been productive
of all the good anticipated Military sores and supplies
and the time and labor Ct civil and military funcona
res, engaged in The efecual defence Of the Stale
we'll bestowed though consumed aud annihilaed it is
the same with them with the commodities and personal
service that have been consumed in private establish
nent The sole benefit resulting in The latter is
he sntis linn Of hal