States should be found, laying and collecting taxes for the purpose of distributing them, when collected, among the States of the Union.

I do not think it difficult to account for the present overflowing condition of the Treasury. The Treasury enjoys two sources of income-the custom-house and the public lands. The income from the customs has been large, because the commerce of the country has been greatly extended, and its prosperity has been remarkable. The exports of the country have continued to increase. While the cotton crop has grown larger and larger from year to year, the price of cotton has still kept up. Notwithstanding all the apprehensions entertained by prudent and sagacious men to the contrary, the world has not become overstocked with this article. The increase of consumption seems to keep pace with the increase of supply. The consequence is, a vast and increasing export by us, and an import corresponding with this export, and with the amount of earnings in the carrying trade; since the general rule undoubtedly is, taking a number of years together, that the amount of imports, and the earnings of freights, are about equal to the amount of exports. The cotton fields of the South, most unquestionably, form a great part of the basis of our commerce, and the earnings of our nav. igation another.

[SENATE.

lowest price. Now, with the two ends of this line our manufacturers have not much to do: that is to say, they have not much to do with the production of the very highest, or the very lowest, of these articles. Generally speaking, they work in the intermediate space. It was along this space, along this part of the line of work, that the minimum principle, as it has been usually called, operated. It struck just where the great object of protection required it to strike, and it struck no where else. All the rest it left free. It wasted no power. It accomplished its object by the least possible expenditure of means. Its aim was levelled at a distinct and well-discerned object, and its aim was exact, and the object was

reached.

But the minimum had become the subject of obloquy and reproach. It was railed at even, in good set terms, by some who professed to be, and who doubtless were, friends of the protecting policy. It was declared to be deception. It was said that it cheated the people, inasmuch as under its operation they did not see what amount of taxes they really paid. For one, I did not admit the fact, nor yield to the argument. I had no doubt the people knew what taxes they paid under the operation of the laws, as well as we who passed the laws; and whether they stopped to make precise calculations or not, if they found the tax neither oppressive nor heavy, and the effect of the law decidedly salutary, I did not believe they would complain of it, unless it was made a part of some other controversy. The minimum principle, however, in its application to broadcloths, was overthrown by the law of 1832, and that law, as it came from the House of Representatives, and as it finally passed, substituted a general and universal ad valorem duty of fifty per cent. An effort was made in the Senate to resist this general ad valorem system, and to hold on to the specific duty. But it did not prevail. The Senate was nearly evenly divided. The casting or turning vote was held by a gentleman, a friend for whom I always entertain very high regard, a member from Maryland, and not now in the Senate. After the discussion, he admitted himself almost satisfied that the law, in this particular, ought not to be altered; but his impression against the minimum, nevertheless, finally prevailed, and he voted for the new mode--that is to say, the gen eral ad valorem mode of laying the duty; and, to render this effectual, he himself proposed to carry that duty as

The honorable member from South Carolina had referred to the tariff of 1828 as the cause of the swollen state of the Treasury. I agree that there were many things in the act of 1828 unnecessarily put there. But we know they were not put there by the friends of the act. That act is a remarkable instance, I hope never to be repeated, of unnatural, violent, angry legislation. Those who introduced it designed, originally, nothing more than to meet the new condition of things which had been brought about by the altered policy of Great Britain in relation to taxes on wool. A bill with the same end in view had passed the House of Representatives in 1827, but was lost in the Senate. The act of 1828, however objectionable though it certainly was in many respects, has not been, in my opinion, the chief cause of the over-product of the customs. I think the act of 1832, confirmed by the act of 1833, commonly called the compromise act, has had much more to do in producing that result. Up to the time of the passing of the act of 1832, the minimum principle had been preserved in laying duties on certain manufac-high as sixty per cent. The Senate fixed it, indeed, at tures, especially woollen cloths. This ill-understood and much-reviled principle appears to me, nevertheless, and always had appeared to me, to be a just, proper, effectual, and strictly philosophical mode of laying protecting duties. It is exactly conformable, as I think, with the soundest and most accurate principles of political economy. It is, in the most rigid sense, what all such enactments, so far as practicable, should be; that is to say, a mode of laying specific duty. It lays the impost exactly where it will do good, and leaves the rest free. It is an intelligent, discerning, and discriminating principle; not a blind, headlong, generalizing, uncalculating operation. Simplicity undoubtedly is a great beauty in acts of legislation, as well as in works of art; but in both it must be a simplicity the result of congruity of parts, and adaptation to the end designed; not a rude generalization, which either leaves the particular object unaccomplished, or, in accomplishing it, accomplishes a dozen others also, which were not desired. is a simplicity which is wrought out by knowledge and skill; not the rough product of an undistinguishing, sweeping, general principle.

It

Let us suppose that the gradations in woollen cloths be represented by a line. At one end of this line are those of the highest price, and let the scale descend to the other end, where, of course, will be those of the

fifty-seven per cent., but the House non-concurred, and the law finally passed, as all know, establishing an ad valorem duty of fifty per cent. on wollen cloths, &c.

Now, Mr. President, when we recollect that the duties on woollen fabrics, of all kinds, bring into the Treasury four, or five, or six millions a year, every man ac. quainted with our manufactures must see at once that a portion of this vast sum is perfectly useless as a protecting duty; because it is imposed on fabrics with which our own manufacturers maintain no competition, and in regard to which, therefore, they ask no protection. I have instituted sundry inquiries for the purpose of learning, and of showing, what is the amount of duties collected annually on wollens, which have no distinct bearing, as protecting duties, on any of the products of our manufacturers. At present I will only say, and will say that with great confidence, that, of the surplus money now in the Treasury, several millions are the proceeds of ad valorem duties, which have conferred no perceptible benefit whatever on our manufacturing establishments. It is, therefore, sir, that I regard the law of 1832, and not the law of 1828, as the great error in our legislation. This law of 1828 was confirmed by the act of 1833, and is, of course, in actual operation at the present moment, except so far as it has become affected by the gradual reduction provided for by the last mentioned act. I

SENATE.]

Public Deposites.

wish not to discuss the act of 1833. I do not propose, at present, to disturb its operation; but, having alluded to it, I take the occasion of saying that I have not the least idea that that act can remain as the settled system of this country. When the honorable member from Kentucky introduced it, he called it a measure of concil. iation, and expressed the hope that if the manufacturing interests should be found to suffer under it, it might be modified by general consent. Although never concur. ring in the act, I entertain the same hope. I pray most fervently that former strifes and controversies on the tariff question may never be revived; but, at the same time, it is my opinion that the principles established by the law of 1833 can never form the commercial system of this country.

But, Mr. President, the most striking increase in the public revenue is in that branch of it which is derived from the sales of the public lands. How happens it that the proceeds from this quarter have sprung up, thus suddenly, to such a height? The Secretary's estimate of the proceeds of the sales of the public lands for this year was only four millions. The actual sales are likely to be twenty. What has occasioned this great and unexpected augmentation?

Sir, we are to remember that the growth and prosperity of the country, generally, are remarkable, and that as these increase, the western tide, both of people and property, increases also. The reflow of this property is into the Treasury through the land offices.

[MAY 31, 1836.

portunity. Purchase, it is true, has gone ahead of emigration; but emigration follows it, in near pursuit, and spreads its thousands and its tens of thousands close on the heels of the surveyor and the land-hunter. When I traversed a part of the Western States, three years ago, I could not but ask myself, in the midst of the vast forests around me, Where are the people to come from who are to begin cultivation here, and to checker this wilderness with fields of wheat? But, when returning on the Cumberland road, or while passing along other great chan nels of communication, I encountered the masses of population moving westward, I was tempted to ask myself, on the other hand, a far different question, and that was, Where in the world will all these people find room to settle?

Nor are we to overlook, in this survey of the causes of the vast increase in the sale of lands, the effects, almost magical, of that great agent of beneficence, prosperity, wealth, and power-internal improvement. This has brought the West to the Atlantic, and carried the Atlantic to the West. Ohio, Indiana, Illinois, Michigan, and Wisconsin, are no longer places remote from us. Railroads and canals have brought the settlers of these regions so near to us that we almost see the smoke of their cabins and hear the strokes of their axes. Maine to the upper Mississippi is already a beaten track, with one's acquaintances every where along the road, and that road even not a long one, if we measure it by the time required to pass over it.

From

The well-sustained demand for cotton has, of course Mr. President, if I am asked how long these causes, or augmented the demand for cotton lands; and we all know any of them, will continue to act, with this effective that good lands, for the production of that crop, are energy, I readily answer that I cannot foresee. Nor can sought for with great eagerness. We are to include, I foresee other events, which may affect our revenue too, the great expansion of the paper circulation among in years to come. And it is for this reason precisely, the causes tending to produce heavy purchases; and the that what I propose is limited to a single year. All the amount of foreign capital that has found its way, through uncertainties and contingencies which naturally belong one channel or another, into the country, and is giving to human affairs, hang over us. I know not what exan additional stimulus, and additional facility to enter-penditures may be called for next year. I know not prises, both public and private. Many of the States what may be necessary to satisfy the all-absorbing capahave contracted large debts, for purposes of improve- city of Indian wars and Indian treaties. I know not ment, and these stocks have gone abroad. I suppose what events, at home or abroad, may shake our comthere may be fifty millions of State securities now owned mercial security. I know not what frosts and blights in Europe. Foreign capital, also, has been introduced, may do against the cotton crops. I know not what may to a great extent of late, as the basis of commercial happen to our currency. I cannot tell what demands enterprise; a thing ordinarily to be expected, when we for the use of capital in other objects may slacken the look to the low rates of interest abroad, and the great purchase of public lands; for I am persuaded that, heredemand for money at home. It would be hazardous to after, our income from that source is likely to be much estimate proportions and amounts, on such a subject; more fluctuating than heretofore, as depending less on but it is certain that a large amount of property now the actual amount of emigration, and more on the ocafloat, in ships and goods, owned by Americans, and casional plenty or scarcity of money. Emigration sailing and transported on American account, is put into must hereafter supply its wants, much more than forcommercial operation by means of foreign capital actual-merly, out of lands already separated from the public ly advanced, or acting through the agency of credit. domain. This introduction of foreign capital, in all the various forms, has doubtless had some effect in extending our paper circulation, and in raising prices; and certainly it has had a direct effect upon the ability of making investments in the public lands.

Under these circumstances, it appears to me to be prudent to limit the proposed division to a single operation. Let us lighten the Treasury for once; and then let us pause, and contemplate our condition. As to what may then be expedient, events will enlighten us. We shall be able to judge more wisely, by the result of our experiments, and the future will be more visible as it approaches nearer.

And, sir, closely connected with these causes, is another, which I should consider, after all, the main cause: that is, the low price of land, compared with other descriptions of property. In every thing else prices have It will be observed, sir, that I give full time to the run up; but here price is chained down by the statute. deposite banks to prepare themselves to pay over these Goods, products of all kinds, and indeed all other lands, funds. Time for this purpose is indispensable. We may rise, and many of them have risen, some twenty-might do rather harm than good, if we were to require five and some forty or fifty per cent.; but Government any sudden operation of that kind. Give the banks lands remain at a dollar and twenty-five cents an acre; time; let them know what they have to do; let the comand vast portions of this land are equal, in natural fer-munity see into what channels the surplus funds are to tility, to any part of the globe. There is nothing on flow, and when they are to begin to flow; and men of either continent to surpass their quality. The Government business will then be able to see what is before them. land, therefore, at the present prices, and at the present I have the fullest confidence that if we now adopt this moment, is the cheapest safe object of investment. The measure, it will immediately relieve the country. sagacity of capital has found this out, and it grasps the op- will remove that severe and almost unparalleled pressure

It

Mr. SOUTHARD expressed the hope that the pref-duty; but you may, at your option, furnish to any officer erence would be given to the bill to extend the charters of the banks of the District of Columbia.

The instructions went on to say that if the commissioner deemed it proper to have counsel, the fees paid for such purpose would be allowed him.

Mr. WALL inquired who these instructions were signed by?

Mr. BENTON answered that they were signed by George Poindexter, chairman of the Committee on Public Lands. He apprehended that these proceedings were a novelty in the history of this country, or in that of Great Britain, and he trusted that they never would occur again. Mr. Gwin, having become acquainted with the manner in which these investigations had been carried on-depositions to be taken in the dark without giving him an opportunity of being heard in his defence-counsel to be feed against him, &c., had collected a mass of testimony for the purpose of defending himself, and rebutting the charges made against him; and all that was now asked was, that this defence might be printed, and sent abroad in the same manner as the accusations against him had been.

Mr. WALL said he would be glad to know if these instructions were the act of a committee of the Senate, or of the man whose name was signed to them. They seemed to him to be at war with every thing like justice. Mr. BENTON, in answer, read the resolution of the Senate under which the Committee on Public Lands were directed to make examinations in relation to alleged frauds with respect to the public lands, and the resolution authorizing the chairman of the committee to continue the examinations in the recess of the Senate. It seemed, therefore, that the instructions emanated from the Land Committee, and were signed by their chairman, George Poindexter.

Mr. CALHOUN said that he knew nothing at all relative to the charges made against Mr. Gwin; but it appeared to him that the regular course would be to refer the whole subject to the Committee on Public Lands. If Mr. Gwin had satisfactorily refuted the charges made against him, or had not succeeded in doing so, the fact would appear by the report of the committee. The best way of doing justice to all parties would be to subject the whole matter to the investigation of a com

mittee.

Mr, EWING, of Ohio, hoped that the reference to the Committee on the Public Lands would not be made. The charges against Mr. Gwin had been made two years ago. He (Mr. E.) was not a member of the Committee on the Public Lands at that time, and there were very few of that committee who were now in the Senate. If the reference proposed were not perfectly idle, the effect would be to renew the investigation into the charges against Mr. Gwin, together with his defence.

[JUEE 1, 1836.

of the time and place of taking depositions against him, or to permit any person to interfere with the performance of his duty, though he might, at his option, give copies of such depositions to any officer implicated, who might reside within a convenient distance. Sir, (said Mr. B.,) the whole thing is wrong from beginning to end, and they had better have done with it at once. All that was asked by Mr. Gwin was, that as these charges against him had been printed, and made a part of the public documents, his answer should also be printed and put upon the record.

Mr. EWING, of Ohio, was not disposed to answer in behalf of the gentleman who was chairman of the Committee on Public Lands at the time these investigations were ordered. If that gentleman were here he could answer for himself. With respect to frauds on the public lands, it was right that each branch of Congress should enter into investigations to ascertain them, and apply the proper remedy; it was right that they should not be permitted to pass without investigation. He should not undertake to say whether these investigations were conducted properly or otherwise. The gentleman who conducted them was not here to explain that matter; but he thought the Senate ought not to exhibit any great anxiety to get out of this matter, because the investigation was a very proper one, and, under the circumstances then existing, the Senate could not have done otherwise than order it. It was not his purpose now to inquire whether those investigations were conducted properly or not; all he rose for was to ob ject to the reference to the committee of a matter long ago passed over. It could not now be referred for the correction of a present evil, but to pass judgment on what had heretofore been done.

Mr. KING, of Alabama, observed that the matter had now gone by, and he could not but express his regret that such unsuccessful efforts should have been made to resist a course of procedure calculated to do the greatest injustice to individuals who held office under this Government. He said then, what he thought now, that it was an act of great injustice and oppression, to give power to the committee to enter into investigations touching the moral and official conduct of an individual, that individual being absent, and unable to defend himself, without giving him an opportunity of knowing what was charged against him, and of refuting the testimony that might be offered. The Senate, however, passed the resolution giving this power to the committee, with power to send for persons and papers; and they went on with their examinations till towards the end of the session, when they represented that they were unable to bring matters to a close, and requested that the examinations might be continued by their chairman. The chairman himself laid a resolution to this purport on the table, and, to his astonishment, as well as of others, the

Mr. BENTON was also opposed to the reference. He did not want to see any committee of that body sit as inquisitors on a citizen of the United States. It seemed to be carrying the business of extra judicial impeach-resolution was sustained by the Senate. ments beyond any thing yet sanctioned by the people of this country, or warranted by the constitution. They had seen enough of these inquisitorial proceedings in that body. The whole thing was wrong from its inception; it began wrong, it went on wrong, and it ended wrong. The Snate had got itself into a false position, and could not get forwards or backwards without another false step. The most becoming thing they could now do, was to drop the whole affair, and print the paper, in order to allow the defence to take the same direction that had been given to tire accusation. It would sound strange to the ears of the people of the United States, that the Senate of eighteen hundred and thirty-four, which set itself up to rectify all the abuses in the country, should issue a commission to investigate the character and conduct of an individual, and expressly forbid the commissioner to give any information to the accused

[Mr. K. here read the resolution.]

The resolution was laid on the table and taken up for consideration on a subsequent day, when the Senator from New York [Mr. WRIGHT] proposed to amend it by doing that which ought always to be done, to guard the right of individuals, and enable them to come forward and defend themselves, when testimony was offered impeaching their characters as honest men and public officers.

[Mr. K. here read Mr. WRIGHT'S amendment.] This, as he said, was the amendment proposed to the resolution, giving unlimited power to the chairman of the committee to enter into examinations, without giving notice to the party whose conduct was to be inquired into, and whose morals were to be impeached; and, astonishing as it was, this amendment was negatived by a vote taken by yeas and nays.

B. F. Curry and Samuel Gwin.

[Mr. K. then quoted the yeas and nays from the jour-sitions that were to be taken. Mr. P. had no objection nal of the Senate.]