Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1843-05-05


ge measure Of national policy, as sim
pie as it would be eflicacioUs
Then he who is in favor Of relieving
the people from direct taxation will sup
port the measure. as will he who is for
retaining tho gold and silver in this
country instead of sending il abroad; for
no measure less comprehensive and en-
Iightened will effect these two great and
all important results And any expe.
dent short Of it will lsnlaize without
relieving the distress ollhe people.
The amount Of interest thus saved TO
the nation would. il set apart as sink
ing fund, very quickly liquidate the en-
tire capital Of the debt.
Although | have not proposed mea'
sure for the assumption Of The State
debts upon the principle OF the law OF
1890, as has sometimes been asserted,
have not the shadow Of doubt on my
mind that The General Government has
the power 10 assume the debts of the
States whenever, in its judgment, the
public interest shall require it, or the
necessities Of The States shall strongly
demand its exercise. II is loo manifest
to be debated that Congress has precise
Iy the same power now, and can exert
as enlarged discretion in its exercise,
as when it assumed the debls Of the
States iD 1890 And pending the dis
cussioD of that question in Congress, the
power Of the General Government was
we'll established. To assert tina, Con-
gress has no power TO extend aid 10
States almost bankrupt, and 10 people
who are 10 the midst OF ruin and distress,
is not only TO declare the Government
a failure, but TO ALLEVIATE from it the re
spect Of the States and the cherished af
tec,ons Of The people. The States ere
ated the Government as their agent, and
the people adopted it because they
thought that their indivdOal interests
would be advanced and the general vel.
fare promoted. The great and lOIustri-
Gus men who framed the Constitution,
and first administered the vital and salu
tary principles over the States and the
people, passed and sanctioned the law
which assumed the debts Of the States
The principal and almost only hostility
TO the measure aruse from the fact OF
the inequality of Indebtedness, and thai
subsequent bond holders, who had pur-
chased outstanding State bonds 4 State
issues at great depreciation in value,
were placed on equal terms with origi
nal holders.
The Legislature Of South Carolina in
strucled her Representatives in Con
gress, january 20, 1890, "to assume The
public debt of this [thal State and MAKE
precision for the payment Of Me samei"
and her Representatives in the Senate
and the House voted unanimously for
the assumption law Of 1890
When The House resolved itself into
Committee Of the Whole upon Mr. Ham.
lton's report, which had been made un-
der an order Of the House, Mr. Smith,
Of South Carolina who led in the debate
in order 10 test the sense of the House
upon the various measures recommend
ed by the Secretary OF the Treasury
submitted the following series Of reso
lutions, which he advocated with grea
ability:
Resoiped That Congress ought not lc
adjourn until they have adopted suct
measures as will make an adequate pro
vlsnn for the public debt.
ReSOjued, That, in making such pro,
vision, no discrimination shall be made
between the original holders OF the evI
dences and the assienees thereof
ReSOtred, That such OF Inc debts o
the individual States as have been in
CURED by them during the late wa
ought 10 be assumed by the Genera
Government, and like funds provided
for them,
ReSolued, That the arrearages OF in.
terest on the Continental and State debt
ought 10 be funded, and considered will
the principal.
Resolved, That the interest TO be pait
thereon does not exceed - per cent
per annum, for the present.
Mr.. Madison proposed resolution tt
include debts paid as we'll as outstanding
against The States as follows:
ReSolped, That the amount Of tn
debts actually paid by any State 10 it
creditors since - day Of - shal
be credited and paid to such State, on tn
same terms as shall be provided in the
case Of individuals.
Upon the first vote on assumption
the question was lost in the House by
small vote, and Mr.. Jefferson describe
the conseqve ice as follows:
"The great and trying question. as,
sumption Of Stale debts however, wa
lost in the House Of Representatives. =
So high were the feuds excited by thii
subject that, on its rejection. business wa