The morning news., 1889-03-03

THE PRESIDENT vEToEs THE BILL
FOR REPAYMENT.


a Surplus.
WASHINGTON, March 2-The President
to-day vetoed the direct tax bill In his
message to the Senate returning the bill
without his approval the President says;
The object Of this bill is quite clearly indi-
Gated in its title. is provisions have been
much discussed in both branches Of congress
and have received emphatic legislative sanction
fully appreciate the interest which IL has eX-
| cited and have by no means failed to recognize
| the persuasive presentation made in its favor.
| know, too, that interposition of executive dis
approval in this case is likely to arouse lrrlta-
tion and cause complaint and earnest criticism.
| Since, however, my Judgment will not permit
! me to assent to the legislation proposed, l can
tind no way of turning aside from what appears
| to be plain course of offic al duty.
THE ACT OF 1861.
On Aug. 5, 1861, federal statute was passed
| entitled AN act to provide increased revenue
from imports TO pay interest on the public debt.
and for other purposes" This law was passed
at a time when immense sums of money were
| needed by the government for the prose
| cution of the war for the union and
the purpose of the law was to increase
| in almost every possible way the federal
| revenues. The first seven sections of the
| statute were devoted to advancing very largely
| the rates of duties on imports; and to supple
ment this the eighth section provided that a
direct tax Of $50 900, 900 should be annually laid
and that certain amounts therein specified
should be apportioned to the respective states,
| The remainder of the law, consisting of fifty
sections contained most particular and detailed
provision for the collection of the tax through
the federal machinery.
ACTION OF THE STATES.
After devoting some space to a review of
these latter sections the President proceeds:
A majority of the states undertook the collec-
tion of their quotas, and accounted for the
amount thereof to the general government by
in their favor, against the tax. Fifteen per
cent. OF the amount of their respective quotas
| was retained as an allowance for collection and
| payment. In the northern, or such as were then
called the loyal states, nearly the entire quotas
| were collected and paid through the state
| agencies. The money necessary for this pur-
| pose was generally collected from the citizens
| OF the states with their other taxes, and in
| whatever manner their quotas may have been
| Cancelled whether by the payment Of money or
| setting off claims against the government it IS
safe to say as a general proposition that the
people of these states have individually been
obliged to pay the assessments made upon them
on account Of this direct tax, and have in
trusted it 10 their several states to be transmit
ted to the federal treasury.
COLLECTIONS IN THE SOUTH.
In the southern states, tnan in insurrection,
| whatever actually realized in money upon
this tax was collected directly by federal officers
| without the lnterposition Of the state ma
cIinery. and part Of its quota has been credit ID
| to each of these states. The entire amount ap-
| piled upon this tax including IS per cent for
collection was credited to the several states and
| territories upon the books of the treas
| ury, whether collected through their
| instrumentalities or by federal officers The
sum credited to all the states S17, 1853 635 ST.
which includes more than s., ,000, 900 on account
| of the Is per cent. allowed for collecting
| OF the amount credited only about 80 300 900 is
credited to the insurrectionary states. The
amount uncOllected of the $50 900 directed
TO be raised by this tax was S2,6l6,314 40, and
nearly this entire sum remained due upon quo
tas apportioned TO these states.
PROVISIONS OF THE BILL,
In this condition of affairs the bill under con
sideration directs the Secretary of the Treasury
TO credit to each state and terrific Of the
United States and the District Of Columbia a
sum equal to all the collections by set off or
otherwise made from said states and territories
aud District OF Columbia, or from any of the
citizens or inhabitants thereof or other per-
sons, under the act of congress approved
Aug 5, 1861. and amendatory acts thereto. -
An appropriations is also made Of such sum as
may be necessary to reimburse each state, ter
ritory and the District of Columbia for all
money found due to it under the provisions of
the bill, and it is provided that all money still
due to the United States on said direct tax shall
be remitted and relinquisded. The conceded
effect of this bill is to take from the money now
in the treasury the sum of more than S17,-
100000 or If the percentage allowed is
not included more thaa Sl5,O00,000, and pay
back to the respective states and territories the
sums they, or their citizens pail more than
twenty five years ago upon the direct tax levied
by the government of the United States for its
defense anu safety.
ITS CoNsTITUTIoNALITY DOUBTED
II is my belief that this appropri alton of the
public funds is not within the constitutional
power Of the congress. Under the limited and
delegated authority conferred by the con
stitution upon the general government the
statement Of the purposes for which money
may be lawfully raised by taxation In any form
declares also limit of the objects for which 1t
4
direct tax was lawfully and constitutionally
laid and that it rshtfuiy and correctly
collected. II cannot be claimed. therefore,
nor is it pretended that any debt arose
against the government and in favor
of any state or individual by the exaction
Of this tax, Surely, then, the appropriation
directed by this bill cannot be justified as pay
ment of a debt of the United States. The dis
burs sament of this money clearly has relation
to the common defense on the contrary il is
repayment of money raised, and long ago ex-
pended by the government to provide for the
common defense.
NOT FOR THE GENERAL WELFARE
The expenditure cannot properly be advocated
on the ground that the general welfare
Of the United States is ther by provided
for or promoted. This general welfare Of
the United States, ~ as used in the constitution
can only justify appropriations for national OBJ
lects and for purposes which have 10 do with
the prosperity growth, honor, or peace aud
dignity Of the nation Sheer, bald, gratuity
bestowed either upon states or individuals
based upon no better reason than supports the
gift proposed in this bill. has never been claimed
to he a provision for the general welfare. More
than fifty years ago the surplus Of IuOlic
money in the treasury was distributed among
the states; but the unconstitutionaty Of such
distribution, considered as gift Of money. APP
pears TO have been conceded, for IL
was put into the state treasures under the
guise Of a 81 deposit or loan, subject 10
the demand of the government II il was pro-
posed 10 raise by assessment upon the psOple
the sum necessary TO refund the money col
lected upon this direct tax, / am sure many
who are now silent would insist upon the limta-
tions Of the constitution In opposition to such a
scheme.
EVILS OF THE SURPLUS.
The large surplus in the treasury is the parent
OF many ills, and among them is found a ten
dency 70 an extremely liberal, II not loose, con
struction OF the constitution. Il also a.
tracts the gaze Of states and in
dviduals with kind Of fascination,
and gives rise TO plans and pretensions
that an uncongested treasury never could ex-
cite But If the constitutional question involved
in the consd ration Of this bill should be deter
mined 10 It's favor there are other objections re-
naming which prevent my assent to its proyis-
ions.
There should be certainty and stability about
the enforcement Of taxation which should teach
the citizen tsat the government will Only use
its power TO tax in cases where its necessity
ana justice are not doubtful, and which
should also discourage the disturbing idea
that the exercise Of this power may be
revoked by reimbursement OF taxes once col
lected. Any other theory cbeapens and, IN a
measure discredlts process which. more than
thorty. The government is not only kind. but
perforfus it's highest duty when IL restores To