Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-06-07


of the two Houses of Congress, but the then Pres
idcnt of the United States exercised his veto pow
or, and the measure defeated. A regard to
truth requires me to say that the President was
fully sustained by the popular voice, His success
sor in the Chair of State unqualifedly pronounced
his opposition to any new charter of similar in
stitution and not only the popular election which
brought him into power, but the elections through
much of his term, seemed clearly to indicate a
concurrence with him in sentiment on the part OF
the people. After the public moneys were with
drawn from the U. States Bank they were placed
iu deposte with the State banks, and the result of
that policy has been before the country To say
nothing as to the question whether that experiment
was made under propitious or adverse crcumstan-
ces it may safely be asserted that it did receive
the unqualified condemnation of most of its early
advocates, and it is believed was also condemned
by the popular sentiment
The existing Sub-Treasury system does not
seem to stand in higher favor with the people, but
has recently been condemned in manner too
plainly indicated to admit of doubt Thus, in the
short period of eight years, the popular voice may
be regarded as having successfully condemned
each of the three schemes of finance to which |
have adverted. As to the first it was introduced
at time (1Sl6) when the State banks, then COM
parativey few in number had been forced to sus-
pend specie payments by reason of the war which
had previously prevailed with Great Britain
Whether, if the United States Bank charter which
expired in 1911 had been renewed in due season,
it would have been enabled to continue specie pay
ments during the and the disastrous period to
the commerce of the country which Immediately
succeeded, is, to say the least probemStlcal; and
whether the United States Bank of 1916 produced
restoration of specie payments, or the same was
accomplished through the fundamentally Of other
means, was matter of some difficulty at that time
to determine Certain it is, that for the first years
of the operation of that bank, its was as dis
astrous for The greater part of its subsequent ca
reer it became eminently successful. As to the
second, the experiment was tried with redundant
Treasury, which continued to increase until 1t
seemed to be the part of wisdom to distribute the
surplus revenue among the States, which, operating
at the time with the specie circular and the
causes before adverted to, caused them to suspend
specie payments, and involved the country in the
greatest embarrassment And, as to the third, if
carried through all the stages of transmutaton,
from paper and specie to nothing but the precious
metals, to say nothing of the insecurity of the pub
lie moneys its injurious effects have been antici-
pated by the country in its unqualified condemna-
ton. What is now to be regarded as the judgment
of the American people on this whole subject
have no accurate means of determining, but by APP
pealing to their more immediate representatives.
The late contest which terminated in the election
OF Gen. Harrison to the Presidency, was decided
on principles well known and openly declared; and
while the Sub-Treasury received in the result the
most decided condemnation, yet no other scheme of
finance seemed to have been concurred in. To
you, then, who have come more directly from the
body OF our common constituents, submit the en-
tire question, as best qualified to give full exposi-
ton of their wishes and opinions. shall be ready
TO concur with you In the adoption of such system
as you may propose, reservng to myself the ulti-
mate power OF rejecting any measure which may
IN my view of it conflict with the Constitution or
otherwise leopard the prosperity of the country;
npt with N vOulH
but which will not beve any act of yours will
call into requisiton
cannot avoid recurring, in connexion with this
subject to the necessity which exists for adopting
some suitable measure whereby the unlimited Gre
alton of banks by the States may be corrected in
future. Such result can be most readily achieved
by the consent of the States, to be expressed in
the form of a compact among themselves, which
they can only enter into with the consent and ap-
probation of the Government; a consent which
might In the present emergency of the public de-
mands Justifiaby be given in advance of any &C
ton by the States, inducement to such action
upon terms well defined by the act of the tender.
Such measure, addressing itself to the calm re-
Election of the States would find in the experience
OF the past, and the condition of the present. much
to sustain it. And it is greatly to be doubted
whether any scheme of finance can prove for any
length of time successful, while the States shall
continue in the unrestrained exercise of the pow
er OF creating banking corporations. This power
can only be limited by their consent
With the adoption of a financial agency of a
satisfactory character, the hope may be INDUCED
that the country may once more return to state OF
prosperity. Measures auxiliary thereto, and in
some measure, inseparably connected with its sue
cess will doubtless claim the attention of Congress.
Among such, distribution of the proceeds of the
sales of the public lands provided such distribu-
ton does not force upon Congress the necessity of
imposing upon commerce heavier burdens than
those contemplated by the act of 1888, would act
as an efficient remedial measure by being brought
directly in aid of the States. AS sincerely de-
voted to the task of preserving Just balance In
our system OF government by maintenance OF the
States IN condition the most free and respectable
and in the full possession of all their power, can
not otherwise than feel DESTROYS for their emancpa
ton from the situation to which the pressure or
their finances now subjects them. And, while
must repudiate a measure founded in error, and
wanting constitutional sanction, the slightest ap'
proach to an assumption by this Government of the
debts OF the States, yet can see, in the distribu
ton adverted to, much to recommends The CON-
pacts between the proprietor States and this Gov
ernment expressly guaranty to the States all the
benefits which may arise from the sales. The
mode by which this is to be effected addresses it
self to the discretion of Congress- as the trustee
for the States and its exercise, after the most ben
cfical manner, is restrained by nothing in the grant
or in the Constitution, so long as Congress shall
consult that equality in the distribution which thu
compacts require. In the present condition o
of the States the question of distribution ma,
be regarded as substantially question between di
rect and indirect taxation. If the distribution b.
not made in some form or other, the necessity vii
daily become more urgent with the debtor State
for resort TO an oppressive system of direct taxa
ton, or their credit and necessarily their powe
and influence, will be greatly diminished Tn
payment of taxes, after the most inconvenien
and oppressive mode, will be exacted in plac
OF contributions for the most part voluntaril
made, and therefore comparatively unoppres
sive. The States are EN- hatically the con
stituents of this Government; and we shout
be entirely regardless of the objects held in vie,
by them in the creation of this government if W
could be Indifferent to their good. The happy e
fects of such measure upon all the states woul
Immediately be manifested With the debtor state