Sentinel of the valley. [volume] (Woodstock, Va) 1841-1848, 1845-12-18


! The advantage under any system of indirect
taxation, even within the revenue standard
must be in favor of the manufacturing interest;
and of this no other interest vii, complain.
| reconlmend to Congress the abolition Of
the minimum principle, or assumed, arbitrary,
and false values, aud of specific duties, and the
substitution in their place Of "a aatoTentdpiies
as the fairest and most equitable tax which
can be imposed. BY the cd caioree principle,
all articles are taxed according to their cost or
value, ard those Viii ch-are OF inferior quality
or of small cost. bear oniy the just proportion
Of tie lax with those OF superior quality Or
greater cost. The articles consunedby all are
taxed at the same rate. A system Of ad calo-
rem revenue duties, with proper Determinations
and proper guards against frauds in collecting
them, II is not doubled, willaford ample, Incl
dental advantages 70 manufacturers, and ena-
bic them to derive as great profits as can be de-
rived from any other regular business. 1t is
believed that such system. strictly within the
revenue standard, viii place the manufacturing
interests on q stable footing, and inure to their
permanent advantage while it will. as nearly
as may be practicable, extend to all the great
interests OF the couetry the incidental protec-
ton which can be afforded by cur revenue
laws. Such system, when once firmly esla-
bllshed, would be permanent, and not be sub
ject to the constant complaints, agi.ations, and
changes which must ever occur, when duties
are not laid for revenue, but for the "protectlon
. merely" Of favored interest.
In the deliberations Ct Congress upon this
subject, it is hoped that spirit OF mutual con-
cessicn and compromise between conflicting in
terests may prevail, and that the result of their
labors may be crowned with the happiest conse-
quences.
Blythe constitution of the =. S. it is provid-
ed, that "no money shall be drawn from the
treasury but in consequence of appropriations
made by law" public treasury was IN
doubtedly contemplated and intended to be ere
ated in which the public money should be kept
from the period Of collection until needed fer
public uses. In the collection and disbursement
Of the public money no agencies have ever been
employed by law, except such as We're appoin-
ted by the government, directly responsible 10 it.,
and under its control. The safe keeping of the
public money should be conEded TO public
treasury created by law, and under like respon-
sibility and control. Ii is not to he imagined
that the trainers Of the constitution could have
intended that a treasury should be created as a
place of deposite and safe keeping Of the public
money which was irresponsible to the govern
ment. The first Congress under the constita-
tion by the act of the I'd Of Sept..I79S, ''to es-
tablish the Treasury Department" provided
for the appointment of treasurer. and made it
his duty .sto receive and keep the moneys Of
the U. States. and sat all times to submit to
the Secretary Of the Treasury and the Comp
treller, or either of them, the inspection Of the
moneys in his hands"
Fiat banks, rational or state, could not have
been intended obe used IS a substitute for the
treasury spoken. ofin the constitution, as keep
ers Of the public money. is manifest from the
fact, that'at tha: time there was no national
bank. and but three or four State banks of linn
tied capital existed in the country. Their en-
ployment as Repositories was at first resorted
to, to a limited extent. but with no avowed in
ientlon Of continuing them permanently.s in
place Of The treasury Of the constitution
When they were afterwards from time to time
employed, it was from motives Of supposed
convenience.
Our experience has shown, that when bank
ing corporations have been the keepers Of the
public Moneys, and teen thereby made in eff
feet the treasury, the government can have no
guaranty that it can command the use Of its
own money for public purposes. The late
Bank Of the U. States proved faithless. The
State anks which Were afterwards employed !,
We're faithless. But few years ago, with mil
lions Of public money. in their keeping, the gov
ernment was brought almost to bankruptcy, s.
the public credit seriously impaired, because
of their inability or ind sposition to pay, on de-
mand, to the public creditors, in the only cur.
rency recognised by the constitution. Their
failure occurred in period Of peace, and great
Inconvenience and loss was suffered by the
public from it. Had the country been involved
in foreign war, that inconvenience and loss
would have been much greater. and might have
resulted in extreme public calamity. The
public money should not be mingled with The
private funds of banks or individuals, or be US
ed for private purposes. When it is placed in
banks for safe keeping, it is in effect loaned to
them without interes /, and is loaned by them
upon interest to the borrowers from them. Tbs
public money is converted into banking capital,
and is used and loaned out for the private profit
Of bank stockholders and when called for, Gas
was the case in 1857 it may be in the peck
els Of the borrowers from the banks, instead Of
being in the public treasury contemplated by
the constitution. The trainers Of the constitu-
ton could never have intended that TIE money
paid into the treasury should be thus convert
ed to private use, and placed beyond the con-
troll of the government.
Banks which hold the public money are often
tempted, by desire Of gain, to extend their
loans, increase their circulation, and thus slim
ulate, if not produce a spirit Of speculation and
extravaganza, which sooner or later must re-
sultin ruin to thousands. If the public money
be not permitted to be thus used, but be KEEP,
in the treasury and paid out to the public cred
itors in gold and silver, the temptation afforded
by its deposite with banks to an undue expan-
sion of their business would be checked, while
the amount Of the constitutional currency left
in circulation. would be enlarged by ita en-
ployment in the public collections and disburse
ments, and the banks themselves would in con
sequence be found in a safer and sounder con-
dition.
At present, State banks are employed as de.
positories, but without adequate regulations Of
I. = ,,heroi,v the nntjfc money can ha eeci,rsd