The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1840-03-07
SPEECH OF MIR. CALHOUN,
OF SOUTH CAROLINA.


OF SOUTH CAROLINA.
In Senate, Wednesday,, February 5, 1871
On MIR. GRuNDY's report in relation.
to the assumption of the debts of th>
of the States by the Federal Govern
ment.
MIR. CALHOUN said:
When have heard it asserted, again
and again, in this discussion, that this re-
port was uncallcd for; that there was no
one in favor of the assumption of State
debts, and that the resolutions were mere
idle, abstract negatives, of no sort of I'LL
portancc; l could not but ask myself, III
all this be 80, why this deep excitement!
why this ardent zeal to make collateral is
sues? and, above all, why the great ankle
ty to avoid direct vote on the resolu-
tons! To these inquiries I could find but
one solution; and that is, disguise it as
you may, there is, in reality, at the bot
tom, deep and agtating question. Yes,
there is such question. The scheme of
assuming the debts of the States is no idle
fiction. The evidence of its reality, and
that st is now in agitation, burst from
every quarter, within and without these
walls. on this side and the other side Of
the Atlantic; not, indeed, a direct assump-
ton, for that would be too absurd; and
harmless, because too absurd; but in
form far more plausible and dangerous
an assumption, in effect, by dividing the
proceeds of the sales of public lands
among the States. l shall not stop to
show that such distribution, under existing
circumstances, with the deep indebted
ness and embarrassment of many Of the
States, would be, in reality, an assump-
ton. We all know, that without such In
dcbtedncss and Embarrassment, the scheme
of distribution would not have the least
chance for adoption, and that it would be
perfectly harmless. and cause no excite
mcnt; but plunged, as the States are, in
debt, it becomes question truly formlda-
bic, and on which the future politics of
the country are destined for years to turn.
If, then, the scheme should be adopted,
it must be by the votes of the indebted
States, in order to aid their credit, and
tighten their burden; and who is 80 blind
as not to see that it would be in truth,
what / have asserted it be in effect, to
that extent, an assumption of their debts.
Here, then, we have the real question
at issue, which has caused all this excite
ment and zeal-a question pregnant with
the most important consequences, llnme-
diate and remote. What | now propose
is, to trace rapidly and briefly some of
the more prominent which would result
from this scheme, should it ever become
a law.
The first, and most immediate, would
be to subtract from the Treasury sum
equal to the annual proceeds of the sales
of the public lands. do not intend to
examine the constitutional question whe-
ther Congress has or has not the right to
make the subtraction, and to divide the
proceeds among the States. 1t is not ne
cessary. The committee has conclusive
ly shown that it has no such power; that
it holds the public domain in trust for the
States in their Federal capacity as men,
bers of the Union, in aid of their contr,-
button to the Treasury; and that to dena-
tionalize the fund, Gf l may use the ex-
pression) by distributing it among the
States for their separate and individual
uses, would be manifest violation of the
trust, and wholly unwarranted by the
Constitution. Passing, then, by the con-
sttutional question, | intend to restrict
my inquiry to what would be its fiscal
and moneyed effects.
Thus regarded, the first effect of the
subtraction would be to cause an equal
deficit in the revenue, | need not inform
the Senate that there is not surplus cent
in the Treasury; that the most rigid eco
nomy will be necessary to meet the de-
mands on it during the current year; that
tho revenue, so far from being on the in
GREASE, must be rapidly reduced, under
existing laws, in the next two years; and
that every dollar withdrawn, by subtract
ing the proceeds of the public lands, must
make a corresponding deficit. We are