Rutland herald. [volume] (Rutland, Vt.) 1823-1847, 1842-04-05

1t is with sincere regret that / now perceive the
necessity of departing from that act; because am
well aware that the expectations justly entertained
by some of the states will be disappointed by any
occasion which shall withhold from them the pro-
ceeds of the lands. But the condition was plainly
expressed in the message, and was inserted in
terms equally plain in the law ITSELF and amidst
the embarrassments which surround the country
on all sides, and beset both the general and state
governments; it appears to me that the object first
and hgest in importance is to establish the credit
ofths government, and TO place it on a durable
foundation and thus afford the most efectual sup
porto the credit of the States equal at least to
what it would receive from a direct distribution of
the proceeds of the sales of the public lands
When the distribution law was passed there was
reason to anticipate that there would socn be
real surplus 10 sribute. On that assumption il
was in my opinion. wise, just and benef-
cial measure. But to continue it in force while
there is no such surplus to distribute and when il
is manifestly necessary, not only to increase the
duties but at the same time to borrow money in
order to liquidate the public debt, and disembar-
rass the public treasury, would cause it to be re-
garded as an unwse alienation Of the best security
ofthe public creditor which would with difficulty
be excused and could not be justified
Causes of no ordinary character have recently
depressed American credit in the stock market of
the world to degree quite unprecedented. need
scarcely mention the condition of the banking in
stitutons of some of the States, the vast amount of
foreign debt contracted during period of wild
speculation by corporations and individuals, and
above all, the doctrine of reputation of contracts
solemnly entered into by States which though as
yet applied only under circumstances of a pecu-
liar character, and generally rebuked with sever
ity by the moral sense of the community, is vet so
very licentious and in government depending
wholly on opinion so very alarming, that the i'm
preston made by it to our disadvantage as peo-
pie, is any thing but surprising. Under such cir
cumstances, it is imperatively due from us to the
people whom we represent that when we go into
the money market to contract loan, we should
tender such securities to cause the money lender
as well at home as abroad to feel that the most
propitious opportunity is afforded him of investing
probably and iudciousy his capital A Gov
eminent which has paid off the debts of two wars
waged with the most powerful nation of modern
times should not be brought to the necessity of
chaffering for terms in the money market I'm
der such circumstances as have adverted to, our
object should be to produce with the capitalist
feeling of entire confidence, by tender ftha sort
of security which in all times past has been es-
teemed sufficient, and which for the small amount
of our proposed Indebtedness will unhesitatingly
be regarded as amply adequate. While pledge
OF all the revenues amounts to no more than is i'm
piled in every instance when the Government con-
tracts debt, and although it ought in ordinary
circumstances to be entirely satisfactory, vet in
times like these the capitalist would feel better sat
isfed with the pledgesof specific fund, ample in
magnitude to the payment of his interest and ulti-
mate reimbursement of his principal. Such is the
character ofthe land fund The most vigilant
money dealer will readily perceive that not only
will his interest be secured On such pledge, but
that debt of 81 100000 or $40 100000 would.
by the surplus ofsales over and above the payment
ofthe interest, be extinguished within any reason
able time fixed for its resumption To relieve the
treasury of its embarrassmenls and to aid in meet
ing its acquisitions until time allowed for anv new
tariff OF duties TO become available, it would seem
to be necessary to fund debt approaching to Sl8,
OOO,OOO; and, in order to place the negotiation of
the loan beyond reasonable doubt, | submit TO
Congress whether the proceeds of the sales of the
public lands should not be pledged for the paw
ment of the interest," and the Secretary ofthe Treas
ury be authorized out ofhe proceeds of such sales,
to purchase the stock, when it can be procured on
such terms as will render it beneficial in that way
to extinguish the debt and prevent the accumula-
ton of such surplus while its distribution is sus-
pended.
No one can doubt that were the Federal Treas
VI INV 40 prosperous us IL WIS ten years ago,
and its fiscal operations conducted by an efficient
agency OF its own, co-extensve with the Union,
the embarrassment of the States, and corporations
in them, would produce, even if they continued as
they are (were that possible effects far less disas
trous that those now experience 1t is the disor-
der here, at the heart and centre ofhe system that
paralyses and deranges every part of it. Who
does not know the permanent importance, not to
the Federal Government alone, but to every State
and every individual within its jurisdiction, even
in the most independent and isolated individual
pursuits in the preservation of sound state of pub
lie opinion and judicious administration here
The sympathy is instantaneous and UNIVERSAL
To attempt to remove the evil of the derangcd
credit and currency of the States while the disease
is allowed to rage in the vals of this Government
would be hopeless undertaking.
1t is the full conviction of this truth which en-
bodens me most earnestly to recommend to your
early and serious consideration the measures now
submitted to your better judgment as we'll as those
to which your attention has been already invited
The first great want ofthe country, that without
answering which all attempts at lettering the con-
dton of things will prove fruitless, is a complete