New national era. [volume] (Washington, D.C.) 1870-1874, 1874-07-16


for such stock, of the par value of $780,
800, the sum of $1,709, 262. Then the
directors admitted they had received
enough. and notified the Secretary of
the Treasury they were ready to trans
fer the canal to the custody of the Gen
eral Government so soon as the Depart
ment may be prepared to receive it."
But it happened that at that time the
Secretary was also Kentuckian, He
evidently felt that he could take some
liberties with his friends. He accord
ingly replied that Congress had not au-
th0rized the acceptance, "but requested
the president and directors each to retain
one share, flor eligibility and to man.
age it under the charter until authority
might by law be conferred on the De-
partment to receive it.'' The president
and directors very promptly acceded to
that request. 1t should be noticed that
the conduct of the Secretary exhibits an
instance of Difference to legislative au-
thority on the part of a high executive
officer which is believed to be quite
unique. He could not feel free to take
charge of the canal himself, because
Congress had not told him to do SO ; &c
cordingly he gaze 1t to his friends. Such
exhibitions of scrupulous regard for the
limits of jurisdiction are seldom wit
messed. 1t is gratifying to know that
this one was duly rewarded. When the
distinguished Secretary retired from the
Treasury he spas made president Of the
canal company.
OF the subsequent management, it is
only necessary to state that the directors
at once reduced the rate of tolls fifty per
cent. But as the canal was only two
miles long, and there were only five di-
rectors, they could manage to spend
for their own salaries and that of their
assistants but $44,Ol2 per annum, to
which they added So, 600 for contingent
cies consequently the revenues accumu-
lated in the treasury of the company.
To make that money useful, the directors
organized themselves into a savings
posted their surplus with the banking
company. 1.-THE latter received as much
for the use of the revenues as the former
did for collecting, they ought to have
been content. But avarice rarely is con-
tent. This anomalous corporation, with
one body, one head, but two faces, was
not content. When it was ascertained
how profitable they could make money
derived from the work they did not own,
they desired to get more money.
They hit upon the expedient of n.y.
pOthecating the canal and raising money
under pretense of enlarging it. In 1850
Congress authorized the directors" with
the revenues and credits Of the company,
to enlarge the said canal" Under that
act the company mortgaged the work for
some two millions of dollars and it is
not yet known whether the Government
will be able to recover it or not.
OTHER SPECIMENS OF DEMOCRATIC
RULE.
That party did not overturn our land
system, notwithstanding it was very
good one. During the year 1871 the
system was much improved that must
be confessed. But the Democratic party
was not in power that year. We ought
also gratefully to remember that the
grants of land made for educational
purposes were not repealed. The fact
furnishes striking illustration of spar
ing mercy. But the phenomenon is not
difficult to explain. Such grants
were made only to States in which
the lands were. Such lands were
found for the most part only in new
States. The new States were very unani-
mously Democratic in politics. The
States receiving the grants could alone
administer them, and the party seems to
have felt confident that grants so ad-
ministered would not promote the cause
of education more than grants of money
had promoted the cause of commerce.
All who are familiar with the early ex-
periences of the school funds in the
Southern and some of the Western
States, will need no other assurance that
that confidence was not misplaced.
The Capitol was not transplanted.
But when the Democratic party retired
from control, in 1861, scarcelya building
belonging to the Government was fin
ished. Perhaps, however, the party
would have avoided that cause of re-
proach if they had earlier formed the
design of transferring those buildings
to the use of another government.
Armies were then maintained. Their
ranks were thin, but they were sumptu-
ously fficered-oflicered far.tOo largely
by those who had been educated in
every soldierly grace save that of allie
glance.
A navy was suffered to exist. But as
it was found little too loyal to desert
it's flag, and little too gallant to sur
render it, when the hour of national
peril arrived, that navy was scattered
in remote seas.