The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-12-18


why he gave such vote The was, IN the hrst
place. thai could do harm, end In the next place
would have the effect 10 check this House IN It's expen-
dtures II The expenditures had not been prof 90
last year, there might have been payment Of this IN
stament But this aud the other House took different
views from what be did, and their expenditures were
prouse than they had been since he con-
nected with the Government He had hoped At tho
last session that the postponement OF this nstslnent
would have had effect TO check their extIssagant
expenditures but though he disappointed he would
again vote for the posponement with the same views
He would however, take this occasion 10 say. that he
would consent to dollar for this insisment
which he regarded in the light of debt, while they
had TO borrow money. The Senator from Kentucky
was entirely mistaken in regarding the deposlie oct IN
the light Of . promise TO the States. There was no
pledge, no obligation whatever; the act was one OF e.
pediency merely and il had fulfilled It's object He re-
peated again. that he would consent 10 give his
vote 10 borrow money to pay that instslment
Mr. NILES said he did not purpose to enter INTO an
extended Of this SUBJECT but would only oner
lew remarks IN reply TO the suggestions OF the gentle
man the other side Of the House, (Mr. Clay OF ky
in which assertions had been made, and principles adj
vanced. which were OF an importance not to be over
looked II is now slr, for the FIRST time. proposed TO
raise revenue for the purpose Of distribution among the
Staesto raise money from the people, enndviduai
capacity to be distributed among the States in their cor
porae capacity to the benefit OF chartered mono
poles He lMr N knew this not intended. nor
thought Of when the deposts bill was passed by the
Senate The object was to get rid Of an enormous
surplus which had accumulated. and was distributed
among ninety banks, expanding our already ossrgro~n
paper system. corrupting the legislation Of Congress-
aud embarrassing to public and private Affairs On his
ground he voted for that bill did majority Of those
who voted with him. Bot he commended that the object
for which the bill had been passed was accomplished;
The surplus Tad been drIosit-d He asked 4 u was
pretended by the Senator from Kentucky that there is
surplus IN the Treasury now, or would there be sur.
plus at the period proposed in the amendment DID
the gentleman know that by the operation Of his
own law. (the compromise act,) the biennial reduction
OF the duties on imports would occur during the coming
year. thus essenng, by that amount the fiscal resources
of the Government Under these circumstances TO
hold out the hope, would be done by the proposed
amendment, that the fourth ins,anent would be paid
in January 1910, when there would be surplus IN the
Treasury would be to sanction the idea that the mo-
ney would be raised by taxation This Is the essential
question: and the only question before the Senate But
1t is said that the Government should redeem pledge;
that the good faith Of the Government is pledged for
the payment Of the fourth ns,alment Of deposlte Sir,
If debt due by the Government to the States, 1t
should be discharged, But instead Of having any just
claim for this money, the States under Obligations 10
Congress for not retaining the three instamets al
ready deposited II 1t not for the inteposition Of
Congress- good faith would have required the Secretary
Of the Treasury recall the money deposited with the
States, for the necessities OF the Government: such
was the spirit and acquisitions Of the act He and the
friends who we're with him. had supported the bill IN
good faith deposite act not distribution among
the States l, he deposite Of . surplus This
had been accomplished, and The bill had fulfilled ITS
functions If il was intended as any more than de.
posite act--for distribution Of money among the
Sates-hen was our legislation fraud upon the coun-
try
He would remark, in reply to the Senator from South
Carolina, (Mr Calhoun) who proposes to vote for the
amendment, that it may he inducement to retrench-
ment and economy in the expenditures Of the Govern
ment, that it would be better to take direct me
thod Let adhere to that first great principle, which
he (Mr G. had often and ably advocated on this
floor, to raise money from the people than is
necessary for economical administration Of the Go.
vernment. This, sir ould be preferable 10 checking
contemplated exravagant expenditure by counlenanc-
ing what Is technically dis
trhution act.
Mr.. BENTON remarked that the natural progress
Of this thing had bren distinctly pointed out by him
when he had the homo. IN connection with hall dozen
other gentlemen to oppose the depose act. He knew
then that it distribution among the States. He
knew that it was the commencement Of system OF
evying money from the people, for those who would get
ii oat Of the hands Of the people He treated this act
then Distribution and secuted the idea OF It's heng
deposite He knew there no surplus in the Irea-
sury and said So and that in few years, we should be
left without money He stated these facts on this floor,
in such strong language, that a member came TO him.
and begged hun not to publish his remarks He stated
then that effects of this would he, either TO break
debtors Every thing he then said had been verified 10
the letter. We have seen, said Mr.. b. committee OF
the directors Of the banks Of New York. men OF the
highest intelligence and well versed in financial AFFAIRS
placing al the head Of the reasons which compelled them
to suspend specie payments the effect of this dIstrbu
ton act. He [Mr. b knew then well now that
Of the effects of this act would be either compel
these deposte banks to choose between stopping them
selves or crushing those indebted TO them. he knew
then that in the short space Of two years should be
and hot
for instead of calling back from the States any of the
money already distributed to them provided for in
the many cautious words inserted in the act make il
appear like deposte, the Government was driven to
the expedent of raising money by forced loan for
Treasury notes were nothing but forced loan from
those to whom they paid. Instead Of calling
the States for Of part of this money deposited
with them, this body now reproached with breach
Of faith to the States for not going to depose the
remainder. which was also claimed as debt That
which in the first instance declared to be depose
only, and treated tina, floor deposie, in
the place declared TO be debt, aud the Federal
Government tainted with breach Of faith for not
paying it. Now what was the effect OF the motion
der consideration 1t was direct proposition. to be
carried hereafter, of raising money by ndrecon for
the purpose Of distribution II was in which the
powerful and strong would be arayed against the weak
1t direct proposition to commit this Government
to the system OF deposltmg money with the States
The effect would be- that all that party who in favor
of raising money Of the whole divide among the few,
would throw every vote to diminish JUS, and necessary
appropriations, and to keep up the taxes The price Of
the public lands would be kept up and by the time the
tariff shall have worked out its object in January,
lS40 there would be enough interested to band toge
ther for the purpose Of raising from the Asiac section
of the Union, the cotton growing States. sufficient sum
for distribution Your crop, said Mr. b. amount
ing to some hundred millions, will hold out strong temp
the friends Of THIS system Of distribution
Mr. b. said he had voted here for the last ten years
against this system Of collecting money for distribution
He opposed it when il proposed by Senator from
New JERSEY [Mr Dickerson for the purpose Of keep
ing up the lsnf. He opposed it with the same zeal
when subsequent proposltlon was made TO DIVIDE The