Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-09-29

charged the administration rather than ON the IN
stitutisns themselves
So then, these vast amounts OF debt contracted by
the States, were contracted when the currency was
most redundant at home. The state banks, dashed
on to lend money on any and every security, were
stimulating all sorts of eXtravagance.
| This redundancy created by the banks, on the re-
| commendaion of the Government, excited false
hopes and led the states to contract the debts
! for which they revied from the head of the
| Government down to the lowest subordinate. One
half of this great state debt, one hundred million Of
dollars, contracted in the midst Of the expert
ment of 35 and SO This period, distinguished for
the prect dent management of public affairs, saw
debt of one hundred millions contracted by the states
in two years. During this period bank creations
and bank Accommodations kept pace with sovernmen-
tai experiments, and governmental experiments led
to extravaganza without parallel.
While on this subject, gentlemen, must say some
thing the subject of the charge oil the day.
which is false and unfouneed, which has been put
forth That the opponents of the present admins
traton have decided to come out with project for
the substitution by the general government of all
the state debts.
This subject was first started in the Senate ofthe
United States during the last session
| have said that the Government encouraged
these statesitO make these debts-encourag them,
because it favorite project with certain lead
ing men, to invest the surplus in the state
bonds.
In 1896 we took up this system of depositing this
money among the states.
AS early as May, 1886, motion made by Mr..
Silas Wright then, now, the ostcnsible, and most
eectua leader of the administration party that the
surplus money should be vested IN state bonds.
And when the bill came to the Senate for appre-
priating the surplus revenue he moved to strike out
that part of the bill, and insert that this surplus
should be inv ested in the state bonds.
We have half million of money from the Smith
sonian bequest, in state bonds; and we have other
sums OF money in trust from Indian lands which are
vested in state bonds.
say the administration itself has done all in its
power to foster this state credit and encouraged
them to enlarge this credit
And when the commercial crisis came, there was
an outcry raised against the assassination of State
Debts Now what say to you in this respect is
this, that while l do not charge this as amounting
to an assumption of state debts, was saying that
they were securities Of the highest regard and it
was the holding Of them up to Europe as worthy Of
credit, and answering the purposes of the admin
istration-and very pretty purpose it would have
been, if project made in lS26, TO give right to
purchase state bonds, had been carried out pre-
cious business indeed, they woud have made OF it.
?Laughter.l Suppose now that power had been
here were forty millions of money at Washington,
aud Mr.. Woodbury., conscientious and scrupulous
as he is known to be-(laughter)-with the infor-
nation which has reached him OF the result OF the
election in Maine-how do you think that money
would have been disposed Of! Can any living man
doubt that nth that power to bride the states with
that forty millions when state was in am cmer-
sency, it would rot be used to accommodate
states that were patriotic and be withheld from
those that were not (Laushter) A very pretty
a.,
position had succeeded Of my associate in the Sc
nate. But then it was said that we desire to make
assumption by the general government Of all these
state debts. Now there IS not particle OF founda-
ton for it-nothng in the world 10 justify il and
don't know a man in Congress that entertains the
opinion, ever did, that Congress has the consti
tutisna power TO assume the State debts, or could
exercise il If il / ad the power Why, Congress
might justly assume the private debts Of irdi
vidua-she may as well assume the bonds of Mr..
Aston as the bonds of New York. exempt from
these remarks the application Of the appro-
pirate TO the States Tor the liquidation of existhg
obligations but speak OF the assumption such
Mr. Renton and Mr.. Grundy argue against, and
against which they string out such inernnable
common places. ] was never disposed 10 accord
Congress such power. Now, gentlemen, YOU have
all heard the statement which .as appeared IN the
newspapers, and it is certainly of The most dcs
picable OF all the inventions Of the enemy. You
have heard Of a series of operations being set
foot in which l am represented as taking part
that ! went to England last year to get up a
interest there to persuade Congress TO assume the
state debts. O.aughter) Gentlemen, since / am
among you as a friend, well tell You all know
that subject left this country in the latter end Of
May, 1889, and at that time | had seen in
newspaper, nor heard from the lips of any living
being, the least suggestion about this thing went
to England, and il was most 81 ouy time in Eng
land as TO every thing respecting American com
merce and the state debts but | tell you upon my
honor, that English European Bank, no English
| or European holder Of American state debts, ever
said one word, or suggested to me- or in my hearing
ed the rcmotest idea notion AT the
ton CT that debt. or any guarantee Of them. APP
plause.l Once abroad did hear il mentioned by an
Anne rican citizen; told him the project was wholly
unconstitutional, and never could be accomplished
| in short, the consent Of the people TO make
constitution for the Units States. GApplause Cen
tlemea IL was natural that should often be asked
about these state debts The ST tie that belong to-
| had sent out bonds to England and had put them
into the hands Of bankers for sale other states had
| done TIE same, and perhaps there were some from
| this state We heard most gloomy accounts from
America almost every week, during the period that
was IN England ; to use common phrase, alarming
intelligence received by every arrival from this
| country, threw +" a daniper" over my spirits, and
under these circumstances people applied to me to
know what security we had, that these American
debts would be paid aud in the time. that the
interest would be punctuslly discharged What
did tell them on every such occasion
Why, that they must rely the public faith of
the states that ssred the bonds and on our ability
to redeem our public faith. Applause But never
did any such person ask II the debts would be qua
ranteed by Congress, nor was any suggestion made
that such an arrangement should take place. gcn-
tleman TO occasion TO know some
thing about the security Of sachusets bonds ne
had money TO invest and he liked the rate of inter
est-fvc per csnt-pays able femi-annually He asked
me what could say Of Mas aohuse and what as
surance could give him that the debt and the inter
est thereon would be punctually discharged What
did do went 10 my trunk and ! took out an alb
stract Of returns made under the authority Of the Lee
gisature Of Massachusetts, OF the annual product of
her labor and industry. PIT il into his hand and
told him to go and study that. Applause
He came back TO me within two days, ard he told
he desired to invest EiO0OO in the bonds OF the
State Of Masssc husetts, and I told him who The
agent was, and where he could co TO get it. More
than that, he did 60, and he did make the invest
ment. Several other gentlemen wished 20 make in
vestmen.s in the stock Of the State Of New York,
and they also to speak 10 me about il. | did
with them with the other; took out Of my trunk
the very excellent report Of your townsmcn, Mr..
Ruggles the resources Of The State OF New York,
and told them to go and study that. They did GO
they did study t-and they came back perfectly sa-
tisGed. (Cbeors)