, 1841-06-19
WHOLE NUMBER 400.

any act of yours will call into requisition.
l cannot avoid recurring, in connection with
this subject, 10 the necessity which exists for
adopting some suitable measure, whereby
the unlimited creation of State banks 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 accom-
pact among themselves, which they can only
enter into with the consent and appreciation
of this Government. A consent which might,
in the present emergency Of the public de-
mands, justifably be given by Congress in
advance of any action by the States as an
inducei-snt TO such action upon terms well
defined by the act Of tender. Such a meas
ure addressing itself to the calm reflection 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 unre-
strained power of creating banking corpora
lions. This power can only lie 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 re.
turn to state Of OBSERVATION-DISCLOSURES auxili.
airy thereto, and in some measure insepara-
bly, connected with its success, will doubtless
claim the attention of Congress. Among
such a distribution Of the proceeds of the
sales Of the public lands. provided such q
distribution does not force upon congress the
necessity OF imposing upon commerce heavi-
er burthens than those contemplated by the
act OF 1883, would act as an efficient remedi-
al measure by being brought directly in aid
Of the States. As one sincerely devoted to
the task Of preserving a just balance in our
system of Government by the maintenance
oil the States in a condition the most free and
respectable. and in the full possession Of all
their power, | cannot otherwise than feel
deslrous for their emancipation from the situ-
to which the pressure on their finances
now subjects them. And while I must re-
pudlate, as a measure founded in error, and
wanting constitutional sanction, the slightest
approach to an assumption by this govern
ment of the debts of the States, yet | can
see inthe distribution adverted to, much to
recommend it. The compacts between the
proprietor States and this Government ex.
pressly guarantee to the States all the bene-
fits which may arise from the sales. The
mode by which this is 10 be effected address
ses itself 10 the discretion of Congress as the
trustee for the States, and its exercise, after
the most beneficial manner, is restrained by
nothing IN the grants or in the Constitution
so long as congress shall consult that equali-
" in the distribution which the compacts re.
quire. In the present condition Of some of
the States the question of distribution may
be regarded as substantially a question be-
tween direct and indirect taxation. IL the
distribution be not made in some form or 9th.
er, the necessity will daily become more
urgent with the debtor-States for a resort to
an oppressive system of direct taxation, or
their credit, AMI necessarily their power and
will be greatly diminished. The
payment OF taxes, often the most %inconven-
lent and oppressive mode, will be exacted in
place of contributions for the most part VOL
made, and therefore comparatively
unopPressive. The States are emphatically
the constituents Of this Government, and we
should be entirely regardless of the subjects
held in view by them, in the creation of this
government, it we could be Indifferent to
their good. The happy effects of such a
measure upon all the States, would immedi-
atelY Re manifested. With the debtor States
it would effect the relief, to a great extent,
of the citizens from a heavy burthen of d.
rect taxation. which presses with severity
on the laboring classes, and eminently assist
in restoring the general prosperity. An i'm
advance would take place in the
price of the State securities, and the attitude
Of the States would become once more, as
il should ever be, lofty and erect. With
States laboring under no extreme pressure
from debt, the fund which they would derive
from this source would enable them to i'm
prove their condition in an eminent degree.
So far as this government is concerned, ap-
preparations to domestic objects approaching
in amount the revenue derived from the land
sales might be abandoned, thus a system of
and therefore unjust legislation
be submitted by one dispensing equali-
" TO all the members of this confederacy.
such distribution should be made
TO the States in the proceeds of the
sales. or in the form Of profits by virtue Of
my fiscal agency having those proceeds as its
basis, should such a measure be contemplated
BY Congress, would we'll deserve its considera.
ion. Nor would such disposition of the bro.
leeds of the sales. in any manner- nrevant.