The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1841-01-01
VOL. LIMO. 29a.

fence of the United States" but to redeem
| STOCKS issued for the use of internal improve
ment companies, and which would increasein
amount, In proportion to the facility of their
redemption. Hs
the public lands had become mine of
wealth, as expected by Mr. Madison. and the
Is enue from That and other sources had pro-
duced an unavoidable surplus beyond the ex-
Pendtures of the general government, there
would be strong inducement Tor amending the
constitution, so as to authorize the application
OF 1t to the relief of the States. But the ex-
penses incurred on account of the public lands,
including the cost of purchase, have been
greater than the receipts; and the whole re-
venue OF the United States is not more than
equal to the annual expenditures. Therefore,
whatever portion of it is taken away, must be
replaced by additional taxes on the PEOPLE.
Thedetciency would be supplied by an increase
OF the tariff; and, as the duties on imported
articles from part of their cost, they are in
creased in proportion to the profits of the i'm
porters and retailers, till the tax finally paid by
the consumer is twice as much as the revenue
paid into the Treasury. Increased duties on
wines, silk, -nd other Injuries, would not
affect the great body of the people; but the
policy of protection enters into every adjust
ment of the tariff, and the American system, as
1t is called, is best supported by taxes or the
implements of trade and husbandry, On the
materials for building and esuipping ships on
clothing, blankets, sugar, salt and other neces-
sarles of life.
The people could derive no benefit from the
distribution of any part of the public revenue,
unless they were relieved, at the same lime
from the necessity of paying back much larger
amount. But when the advocates ofthis- scheme
speak of returning money to the pockets of the
people, they mean that it is TO be transferred
from their representatives in Congress, to their
representatives in the different legislatures;
that, instead ofbeing used for the common ben
eft of the Union, it ought to be applied TO the
separate use of twenty-siX States. Under such
plan of distribution, t1e proceeds ofthe public
lands would be at as great distance from the
pockets of the people as they are now; and
whether this portion of the public revenue be
claimed for the people or the States, it is well
for both TO reflect, that while they are APP
pear1ng to be the advocates of State rights,
they are really conceding powers to the general
government, which may be extended to every
object that requires the expenditure OF money.
The assumption of State debts would pro
badly follow as a consequence of the distribu-
ton of the public revenue, and would only be
an application of the same principle to differ
ent object It has already been commended,
that the general government has the power to
assume the debts of the States, not because II
was granted, but because it has been exercised.
The precedent, referred to, is the act OF 1880,
nv which Congress assumed State debts, in GER
tain proportions, TO the amount of twenty-oue
millions, five hundred thousand dollars. But
payment was not to be made to State creators,
if it could be ascertained, that their clrIhcates
| of debt were issued for any other purpose, than
! for services or supplies towards the prosecution
of the war. The holders of these certificates
| were considered creditors of the United States,
| because the debts. of which they held the eVi-
dence, were contracted by the States in the
common struggle for independence. If an ar
gument can be drawn from this act, TO prove
that the general government has the power to
assume State debts contracted for canals and
railroads, the question Of power would be con-
sdered as settled, if continued appropriations
were made by Congress to aid the States in the
construction of such works. Constitutional
objections being once removed, the only obsta-
Gle to general assumption would be found, in
the difficulty of apportioning, among the States,
the benefit of shifting their burdens and respon-
sibilities upon the Union. The debt of Mary
land is fifteen millions, and taking that as the
scale of assumption, it would be necessary to
create a national debt of at least ive hundred
millions of dollars, to relieve her from her pre-
sent liabilities. The government stock, issued
for this purpose. would pass into the possession
of the States and their creditors, and form a
| fund for new enterprises, new banks, and for
speculations of every kind; which in tue course
Of few years, would produce the necessity for
another assumption.
| The public lands have been so often made
| the subject of executive communications, that
| could not withhold my own opinions, without
| appearing toconcur in the sentiments OF others,
nor express them without examining the ques-
ton at greater length than is consistent with
the proper limits of asmessage. 1t is for Con-
gress however to decide, how this question is
10 be disposed of; and whether it be determined
that the public territory belongs to the States
or the Union, it will still be necessary for this
State to resort to some other means for the sup
port of her credit and the fulfllment of her en-
gagements. Her portion of this fund, under
the new census, would probably not exceed
eighty thousand dollars a year, which would
leave an annual deficiency of more than FIVE
hundred thousand, to be provided for in some
other way. The Legislature will, no doubt,
carefully consider every circumstance, Connect
ed with the debt and finances of the Stale, and
will adopt such measures, as they may deem
necessary, TO preserve the public credit, and
provide for every Just claim on the Treasury.
The currency of this State consists of vari-
Gus kinds of paper, issued by banks under au-
thority of their charters, by other corporations
without authority, and by private associations
and individu ais, under the pretext of supplying
their neighbors with change. These private
issues will probably cease when specie pay
ments are resumed, but the banks, the savings
institutions, and other corporations, which have
issued notes or certificates for small sums, VIII
no doubt continne to exercise that privilege, as
long as is found to be profitable The small
currency, furnished by these corporations,
though nreferabIe in some respects to the notes
of individuals, is more injurious to the public;
because II il issued to much larger amount,
and has more permanent effect in preventing
fine circulation of specie. If the people prefer
the nse of specie for change, and for dealings
! of trifing amount, they certainly ought TO have
their choice; and this they never can have
whites mall notes of every description are per-
| mitted to circulate through the State.