The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-02-18
tiorial taxation beyond what Is now imposed,
nnr ar,y increase of the revenues OF the Gov.

adversely affected, could the public credit
suffer? think not. The fact that we should
be able without any Increase OF taxation DOL
only to pay the current expenses OF the doT-
eminent, together with the interest upon the
whole debt thus increased, as well as to an
nualy set aside for sinking fund the amount
required by law, but also, in addition TO all
this, to have left surplus of 81, 900, 600 to
be applied to the reduction Of the principal
OF the piiblic debt, would fully sustain our
national credit at its present high standard.
Public credit il based upon the ability and
disposition of the State or nation 10 meet its
obligations, and both of these we have al.
ready conclusively established to the entire
satisfaction of the financial world. During
the last seven years we have not only
promptly met all our Obligations matured
and maturing, but we have also paid more
than S500,OOU,000 of the principal of the na-
tional debt. And these astonishing results
have been achieved during period when
deprecated paper currency unsettled values
and deranged business generally, while the
devastation and destruction of the late war,
and the consequent poverty and suffering,
prevailed over. one-tIird OF the Union, and
from which we have but recently begun to
substantially recover. And our astonish-
ment and admiration Is increased when we
remember another important fact: that during
all this time we have been gradually re-
duping taxation until to-day our internal
taxation is less than o1e-third of the amount
collected seven years ago. If during such
pariod we have accomplished results like
these, surely the confidence vf our public
creditors could not be shaken by our assump-
ton of so comparatively small an annual liza
bility rs Sl5,O00.000. Not only could no
lnrm come to our national credit from the
assumption of the State debts by the Federal
Government, but no injury could result
therefrom to the Taxpayers, the people OF
the United States.
Another objection which will be urged to
the second proposition is, that the adoption
of the constitutional amendment proposed
will be another step towards Capitalization,
another movement for the concentration Of
all power in the General Government. But
il may be successfully answered that this
amendment would confer no new or add
tional power upon the Federal Government.
That il would be an cncroachnent pro tdnt0
upon State sovereignty cannot be denied, but
it must be remembered that il would be the
voluntary surrender of power by the States
The exercise of which has heretofore in most
Instances resulted disastrously. It's exercise
has bankrupted some Suites, diShonored
others, and in few, if any, have the benefits
conferred been at all commensurate with the
evils eutailed. Pennsylvania and Mississippi,
Maryland ard Illinois, in the past, and Min
sofa, together with many Of the southern
States, in the present, are prominent Wit
nesses of the unwiSe exercise Of this power.
If ever useful or essential The day for its sx-
crcise in the way of 81 State aid to public
improvement has passed. Whenever
State steps beyond the sphere Of its legitl-
mate governmental duties and enters the
domain Of private enterprise substantial
failure has been the almost lnyarying result.
So uniformly has this been the experience of
the past that OF late the tile Of public senth
mant has been setting strongly in the onpo-
site direction, and we find incorporated in
many of the recently formed State
Constitutions an absolute prohibition
from the contraction Of any debt Eek
cept to meet CASUAL deficits in the reve-
nue., to redeem q previous liability of the
State, to suppress insurrcctioD, repcl inva-
sion, or defend the State in time of war;"
Such is the wise provision Of our State Con-
stitution, and this is about the scope Of the
proposed amendment to the Federal Const
tuition. Had like clause been incorporated
in the fundamental law of every southern
State much of the wrong and disgrace which
has TRANSFERRED in some Of them would never
have occurred, and in none of them would
the blighting curse Of even partial rcpudia-
ton obtained any countenance. If, then, the
experience Of both the past and the present
unite in the condemnation of the unlimited
exercise Of this power, why not curiail 1t,
especially /, any substantial good can be &C.
complished thereby:
II States have found it necessary and wise
to make such law unto themselves, why
not extend the sphere Of its benCtccncr, and
by the united voluntary action of all the
States make it the public, the fundamental
law of the nation? confess to an implicit
faith in the doctrine Of estates rights" az |
understand 1t, but fail to discover anything
detrimental TO the true interests or sovereign
rights of the States in the voluntary curtail-
ment of their power to harm themselves:
Ii the adoption of the amendment proposed
tended to aggrandizc the powers of the Fedc-
ri Government it might be Objectionable;
for, if tile prevailing iatitudInarian corstruc-
ton Of these powers BIO correct, then they
are too great already. But it would not. 1t
would surrender no useful or necessary
power Of the States and confer no additional
authority upon the Federal Government.
In its iull scope and meaning it amounts
simply to guarantee that il the States are
relieved from their present burthen5 no
more unnecessary debts will be contracted
in the future. And this guarantee ought to
be given as a protection not only to the
General Government, but to the States them
selves. II oil the States voluntarily unite
for the purpose of liquidating all their in
debtedness through the agency Of the Fed
eral Government, then the Government as
we'll as that OF each State should have tie
highest assurance that no condition Of aff4irs
could again arise which might render such
action Necessary.
have thus briefly noticed the chief objec-
tions which can be urged to the adoption of
the two propositions mentioned, and, | trust,
have demonstrated that they are not ouly not
insupeublc, but are rather Of little serious
importance when carefully and dspassion-
atcly examined.
Let us now briefly consider some Of the
advantages which would accrue from their
adoption. The enhancement of American
credit would be one of the most obvious as
well as most important results. Every State
bondholder would probably become Il
national creditor, and the diffusion OF the
ownership of the public debt among the peo-
pie would enhance its popularity and in
crease its security and value. And the day
would not be far distant when our national
debt would be owned Ivy American citizens,
just as the debt of England is owned by Eng
lishmen.
Why is 1t that we are paying upon our
national debt rate of interest fully two per
centum higher than English consols bear?
1t is not because our debt is larger or our
resources less, for the truth is our debt Is but