Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1845-12-11

TUTTUTF IWV ITV"F ""-
pursuits, except the capitalist, who has made his In
vestments in manufactures. All the great Interests OF
the country are not, as nearly as may be practicable,
equally protected by It
The government in theory knows no distinction OF
persons or classes, and should not bestow upon some
lfavors and privileges which all Others may not ENJOY
II was the purpose of its ~illustrious founders to base
the institutions which they reared upon the great and
unchanging principles of Justice and equity, conscious
that if administered in the spirit in which they were
conceived, they would be felt only by the benefits
which they ditfused, and would secure for themselves
IA defence in the hearts of the people, more powerful
than standing armies, and all the means and appliances
invented to sustain governments founded in injustice
and oppression,
The well known fact that the tariff act of 1912 was
passed by a majority of one vote in the Senate, and
two in the House of Representatives, and that some Of
those who felt themselves constrained, under the pecu-
liar circumstances existing at the time, to vote in its
favor, proclaimed its defects, and expressed their de-
termination to aid in its modification on the first oppor-
tunty, affords strong and conclusive evidence that il
was not intended to be permanent, and of the expedl-
ency and necessity of its thorough revision.
In Recommending to Congress a reduction of the
present rates of duty, and a revision and modification
of the act of l842, | am far from entertaining opinions
unfriendly to the manufacturers. On the contrary.
desire to see them prosperous, as far as they can be SC
ltiOu AtAPOSiH5 NiSI"UA WN
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 inter
est will complain.
recommend to Congress the abolition of the mini.
mum principle, or assumed, arbitrary, and false values
and of specific duties, and the substitution In then
place of al pnlOrem duties, us the fairest and mos
equitable indirect tax which can be imposed. By the
al uaJorem p%riciple, all articles are taxed according tt
their cost or value, and those which are of inferior quail
ity, Or Of small c~ost,bear only the just proportion oftht
tux with those which are of superior quality or create
cost. The articles consumed by all are taxed at the
same rate. A system of ad Uqtorem revenue duties
with proper determinations and proper guards agains
frauds in collecting them, it is not doubted, will atfort
ample incidental advantages to the manufacturers, an(
enable them to derive as great profits as can be derlv
ed from any other regular business, 1t is believed thai
such a system, strictly within the revenue standard
will place the manufacturing interests on a stable foot
ing, and inure to their permanent advantage while il
will, as nearly as may be practicable, extend to all the
great interests of the country the Incidental protection
which can be afforded by our revenue laws. Such
system, when once firmly established, would be perma
ncnt, and not be subject to the constant complaints, az
itations, and changes which must ever occur, when du
ties are not laid for revenue, but for the protection
merely" of a favored interest.
In the deliberations of Congress on this subject, it il
4 uJVCu Iilll Il oplll VI llIuu OllCCpolOI ulld COIHplOlI
Use between conflicting interests may prevail, and tina
the result oftheir labors may be crowned with the hap
plest consequences.
BY the constitution of the United States it is provid
ed, that "no money shall be drawn from the t%reasur,
but in consequence of appropriations made by law" Z
public treasury was undoubtedly contemplated and in
tehhed 10 Ut uica'ed! a. ~rh'"h the mhlic money shoult
be kept from the period Of collection until needed 70
public uses. In the collection and disbursement of thu
public money no agencies have ever been employed
by law, except such as were appointed by the govern
ment, directly responsible to it, and under its control
The safe keeping of the public money should be con
fided to a public treasury created by law, and unde
like responsibility and control. 1t Is not to be imagin
cd that the trainers Of the constitution could have in
tended that a treasury should be created as a place o
deposite and slfe-keeping of the public money which
was irresponsible to the government. The first Con
greSs under the constitution, by the act of the seconC
September, 1879, " to establish the Treasury Depart
n ~" provided for the appointment Oft treasurer, anC
made it his duty " to receive and keep the moneys o
the United States and " at all times to submit to thC
Secretary of the Treasury and the Comptroller, O
either Of them, the inspection of the moneys in biz
hands"
That banks, national or state, could not have beer
intended to be used as a substitute for the treasury
spoken of in the constitution, as keepers of the public
money, is manifest from the fact, that at that time there
was no national bank, and but three or four State
banks of limited capital existed in the country. Thei
employment as repositories was at first resorted to, tc
a limited extent, but with no avowed intention of con
tlnuing them permanently, in place of the treasury Of
the constitution. When they were afterwards from
time to time employed, it was from motives of suppos
ed convenience.
Our experience has shown, that when banking cor
~porations have been the keepers of the public money,
and been thereby made in effect the treasury, the 90
! uprptpaDf pan h1vo M n 1ruu+v thot IL can ,on,,,on
the use of its own money for public purposes. The
late bank of the United States proved to be faithless
The state banks which were afterwards employed,
were %taithless. But a few years ago, with millions OF
public money in their keeping, the government was
brought almost to bankruptcy, and the public credit
seriously impaired, because of their inability or indis-
position to pay, on demand, to the public creditor, in
the only currency recognized by the constitution
Their failure occurred in a period of peace, and great
Inconvenience and loss were suffered by the public
from it. Had the country been involved in a foreign
war, that inconvenience and loss would have been much
greater, and might have resulted in extreme public ca
lamity. The public money should not be mingled with
The private funds of banks or individuals, or be used
for private purposes. When it is placed in Il banks for
safe keeping, it is in effect loaned to them without in
terest, and is loaned by them upon interest to the Dor
rowers from them. The public money is converted in
to banking capital, and is used and loaned out for the
FiL uIS PIOllI VI buHN uHu Will julie
for, las was the case in 1887 it may be in the pockets
of the borrowers from the banks, instead of being in
he public treasury, as contemplated by the %constitu-
ton. The Trainers of the constitution could never have
intended that the money paid into the treasury should
be thus converted to private use, and placed beyond
tie control of the government.
Banks which hold the public money are often tempt
ed, by a desire of gain, to extend their loans, increase
their circulation, and thus stimulate, if not produce a
spirit of speculation and extravaganza, which sooner
or later must result in ruin to thousands. If the pub
lie money be not permitted to be thus used, but be
kept in the treasury and paid out to the public credit
os in gold and silver, the temptation afforded by its
deposlte with banks to an undue expansion of their bu-
siness would be checked, while the amount of the con-
%stitutional currency LETT in circulation would be enlar-
ged, by its employment in the public collections and
disbursements, and the banks themselves would, in con-
sequence, be found in a safer and sounder condition.
At present, state banks are employed as repositories,
but without adequate regulation of law, whereby the
public money can be secured against the casualties
aud exccs ea, revulsions, suspensions, and defalcations
to which, from overissues, overriding, an i~nordinate
desire for gain, Or other causes, they are constantly ex-