Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-05-08
LENDING PUBLIC FUNDS


Congress helped the Centennial Exhibi-
ton at Philadelphia by loan Of 81 ,500,-
600, and the money was in time repaid
The Centennial Cotton Exposition Direct
DRY at New Orleans on the basis Of that
action, ask, the Government to lend to it
Sl,00O000. 1t win probably be done. But
it is very doubtful practice, and one that
will some day lead us into trouble
The bill authorizing the loan Is exactly
like that in the Philadelphia case. That
provided that " in the distribution Of any
moneys that may remain in the treasury of
the Centennial Board of Finance after the
payment OF It's debts, the appropriation
hereinbetore made shall he paid in full
into the Treasury of the United States be-
fore any dividend or percentage Of the
profits shall he paid to the holder, of said
stock" The stockholders subscribed about
81, 100000 When the Exposition closed
100000 remained on hand The stock
holders claimed that the sum should be
divided among them; the Government in
sisted that it, loan should first he repaid.
The stockholders took the case into Court
and secured decision in their favor The
Supreme Court of the United State, re
yersed the Judgment, and the Government
got its money. Now the stockholders are
appealing to Congress, to make them even :
that is the difference between D! and 50
per cent Of their investment That such
Il result may not follow the New Oriean,
Fair no man can give assurance. So, at
the best, under the law a proposed, it i, a
bad business. The New Orleans Expos
ton, in all probability, will not be 50 sue
cessful rs the Centennial Exhibition. 1t is
not, therefore, reasonable to look for
financial profit to result from it.
But has Congress the right to lend the pub
lie funds? Except in the direction Of the
conduct of the Government has It the
right to make gifts? 1t ha, always been a
serious question whether there was proper
warrant for the gifts made by Congress for
the relief Of Richmond, Portland, Cincin-
natl and the Mississippi sufferers. The
intent was good, and the result, morally
justified the acts. The acquie-encc of the
people in the charity testified to the large
heartcdncss of our citizenship; but it must
be apparent that if Congre,, can give for
a purpose foreign to that OF the Federal
Union 81, it can give 81, and $1,000
600, or S2O,0O0,OOO, or indeed
the entire sum Of the Treasury.
That, indeed, there is no limit to the right
to give, provided the right exists. II j,
true that it has all along been claimed
that to aid suffering citizens in great dis
asters is = purpose of Government but
those who so reason have not been able to
fortifv is by undeniablc affirmative au-
thority expressly granted by the States
composing the Union
The Constitution gives power to Con
gress to lay and collect taxes etc, to pay
the public debts and to provide for the
common defense and general welfare
That is TO say, as Story demonstrates to
collect taxes in order TO provide for the
general welfare. And, therefore, all con-
tribntions imposed being taxes, they must
be disbursed for objects national IN their
character. The lending of money to New
Orleans, if justified under this head, can
only be done by what would appear 10 be
strained construction. As every indus
trial exposition is for the general welfare
in greater or less degree, then every city,
county. District and State fair viii have
equal claim with New Orleans upon Con-
gress for speculative use of the public
funds. Certainly the excuse for lending
money to New Orleans is no better than