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FEBRUARY, 1837.]

Distribution Question-Deposit with the States.

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Looking through the catalogue of complaints which | the most impressive form, upon the Government of the United States have to make against Mexico, on Mexico, for redress of the grievances which have their own account, as the party whose dignity and heretofore been ineffectually presented to its notice. honor are assailed, the committee are unable to perThe report having been read, ceive any proof of a desire on the part of the Mexican The consideration of it was postponed to the Government to repair injury or satisfy honor. next day.

The merchant vessels of the United States have been fired into, her citizens attacked, and even put to death, and her ships of war treated with disrespect when paying a friendly visit to a port where they had a right to expect hospitality. It was the inattention of the Mexican Government to complaints of this description that appears chiefly to have induced the return of the late chargé d'affaires; for in his note of December the 7th he says: "If those [the claims] that might be presented should be all acknowledged as just, yet so long as the several cases of unprovoked and inexcusable outrage inflicted on the officers and flag of his country, which have been heretofore submitted to the Mexican Executive, remained unsatisfactorily answered, he would have but one course to pursue.'

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It is possible that the claims for private property, which had recently been presented anew to their notice, may have attracted the serious attention of that Government; but if a cordial disposition was felt to adjust them, it is not easy to imagine why those cases, where a decree of the Mexican authorities had been for a long time passed for their payment, and a portion actually paid, were not fully satisfied. The committee are willing to hope, however, that the manifestation of serious discontent on the part of the United States, by the withdrawal of their official representative, will induce the Mexican Government to engage in the active investigation of all the grounds of complaint pressed upon them for many years past. They fully concur with the President, that ample cause exists for taking redress into our own hands, and believe that we should be justified in the opinion of other nations for taking such a step. But they are willing to try the experiment of another mand, made in the most solemn form, upon the justice of the Mexican Government, before any further proceedings are adopted. It is their opinion that a diplomatic functionary of the highest grade should be appointed to bear this last appeal, whose rank would indicate at once the importance of his mission, and the respect in which the Government to which he is accredited is held; for, notwithstanding the causeless ill feeling which appears to prevail in Mexico towards the Government and people of the United States, the latter will continue as long as possible to treat with respect their ancient though now estranged friend. In conclusion, the committee respectfully submit to the House the following resolu

tions :

The Distribution Question-Deposit with the
States.

Mr. BELL said he rose for the purpose of calling the attention of members to a few facts connected with the subject under consideration, and with the subject of the Treasury, and the expenditures of the Government generally, which he thought were either unknown to many honorable members, or, if known, had not received that attention which, from their extraordinary nature, they were entitled to receive from the representatives of the people and the guardians of the public interests.

The fact that the permanent expenditures of the Government had been doubled in amount within a few years past had been noticed heretofore. I wish (said Mr. B.) to bring to the notice of honorable gentlemen another most improper and unprecedented anomaly in the action of Congress upon the subject of the appropriation and expenditure of the public nioneys. The Committee of Ways and Means have given their sanction to appropriations, for the service of the present year, amounting made some mistake in the estimate of this to upwards of thirty millions, if I have not Besides these, there are other bills amount. reported by the standing committees of the House, which will swell them to about thirtyfive millions-an amount but little short of the de-appropriations to the same objects made at the last session of Congress. Do the members of this House know what proportion of the appropriations of the last year remains unexpended? The honorable chairman of the Committee of Ways and Means has told us that the present bill appropriates about nine hundred thousand dollars to fortifications; and that, he contends, ought to be voted, because it does not exceed the usual amount annually appropriated to the same objects. Sir, it is true that this does not exceed the amount usually appropriated, but the honorable gentleman has omitted to inform us that there was, on the 1st of January, a balance of upwards of six hundred thousand dollars remaining in the Treasury of the appropriations of the last year to the same objects, besides between two and three hundred thou

Resolved, That the indignities offered to the American flag, and injuries committed upon the persons and property of American citizens, by officers of the Mexican Government, and the refusal or neg-sand in the hands of the disbursing officers yet lect of that Government to make suitable atonement, would justify the Congress of the United States in taking measures to obtain immediate redress by the exercise of its own power. Resolved, That, as an evidence of the desire of the American Government to preserve peaceful relations with the Government of Mexico, as long as the same may be compatible with that dignity which it is due to the people of the United States to preserve unimpaired, the President be, and he is hereby, respectfully requested to make another solemn demand, in

unexpended. He has neglected to inform us that, in fact, about nine hundred thousand dollars of the last year's appropriations to fortifications remain to be expended during the present year; for I take it for granted that the work upon the fortifications has not been persisted in to any great extent during the winter. Thus, sir, instead of the amount proposed to be applied to this branch of the public service, during the present year, we propose to apply

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Distribution Question-Deposit with the States.

double that amount. Is there any thing in the present high prices of labor and materials, any thing in the great demand for laborers of all kinds, or is there any thing in the present prospect of peace with all nations, which calls for this unusual amount to be applied to fortifications? Are we not pushing these works too rapidly to admit of solid constructions? But, sir, (said Mr. B.,) I do not attach much importance to this view of the subject. Not only double, but treble and quadruple the amount of these appropriations can be expended by the Government, if it is found necessary in order to increase appropriations-if we shall, by our imprudent compliance with the demand of the Executive, encourage a race between appropriations and disbursements-if the appropriations are to be increased according to the ability of the Government to expend, or rather waste, as much as this House shall, from year to year, be found willing to appropriate. I repeat, if this shall be the measure of our appropriations, we need not care how large they are, they will be expended.

[FEBRUARY, 1837.

plus in the Treasury, which, upon every reasonable data of calculation, would, by the close of the year, amount to about forty millions of dollars, and which had since been ascertained to be forty-two millions. Upon every reasonable basis of estimate, the accruing revenue, down to the year 1842, would be equal to, and perhaps more than, what ought to be the actual wants and expenditures of the Government. In this state of things, this immense amount of revenue would, without some disposition of it, remain unemployed in the hands of the Federal Government, or be employed by the deposit banks for their individual profit. He said he need not say that he thought it too dangerous to permit such an immense amount of unappropriated money to remain for so long a time in the hands of the Government unemployed for any public purpose; that he would not trust this Government with such immense means of patronage and corruption, be it administered by whom it might. There is nothing so dangerous in its employment, or corrupting in its use, as money; and he did not regard any Government so inflexible in its virtue, or so far above the reach of temptation, as to trust it unnecessarily with means of so extraordinary and dangerous temptation.

Mr. CAMBRELENG, in answer to the remarks of the gentleman from Tennessee, (Mr. BELL,) in relation to excess of appropriations in the Treasury, said he had only to remark that there was a great deal of deception in relation to Mr. G. said that, when he voted for the dethose appropriations; because, although the posit act of the last session, he voted for it as money was in the Treasury, in most cases the being, what it professed to be, a mere deposit works for which it was appropriated were act, and not a distribution act in disguise, as it already under contract. The Committee of had been frequently characterized; nor did he Ways and Means were at one time of opinion intend to adopt the principles of that bill as a with the gentleman from Tennessee. They, system; for if the deposit principle is to be knowing that there were large amounts of adopted as a system, he would prefer the conmoney on hand in the Treasury, made inquiries stitutional principle proposed by a distinguished at the proper departments, and ascertained Senator from South Carolina, as more just and that, although there was a surplus on hand more equal in its operation. He said that he at present, yet the probability was that the was utterly and entirely opposed to the distriappropriations would fall short during the ensu-bution principle; it was corrupting in its opeing year.

Mr. C. then sent to the Clerk's table a report from the engineer department, showing the objects for which the appropriations were required, which showed that all the appropriations proposed in the bill would be needed during the ensuing year.

Mr. WILLIAMS, of North Carolina, advocated the amendment of the gentleman from Tennessee, on the ground of its recognizing a system of permanent distribution, from which he (Mr. W.) could see no possible evil that could result. Mr. GARLAND, of Virginia, said, that having voted for the deposit act of the last session, and intending to vote against the amendment proposed by the gentleman from Tennessee, he felt it due to himself briefly to state the reasons which induced him to vote as he now intended to do. He said that he felt no regret for the vote which he gave for the deposit act of the last session; he not only felt no regret, but was well satisfied that the vote was right and proper; such a one as, under like circumstances, he would give again. When the deposit act passed, there was a large actually existing sur

rations and dangerous in its tendencies.

If the system be adopted, there can be no doubt that, under our indirect and insidious system of taxation, the State Governments would ultimately look to this Government for the means of conducting their domestic works and sustaining their domestic institutions; that they would make diligent and active search for every possible subject of expenditure, until, finally, the people and the State Governments would cease to watch the pecuniary operations of the Federal Government with their accustomed vigilance, and make no effort to arrest its march to consolidation, and, finally, be ingulfed in its corrupting influence. The demands of the States would be met by corresponding taxation here, and a surplus produced for the purpose of distribution. He regarded this system, as many distinguished gentlemen had heretofore regarded it, the most dangerous and corrupting which could be incorporated into our legislation.

Mr. G. said that the true remedy was to reduce the taxation of the people to the wants of the Government, and the wants of the Gov

FEBRUARY, 1837.]

Distribution Question-Deposit with the States.

[H. OF R.

ernment to the most economical expenditure; | adopted, Mr. M. had prepared his amendment economy and simplicity being essential to puri- to prevent the repetition of one of the greatest ty, and purity to the maintenance of republican constitutional outrages that had ever taken place institutions. He said, Mr. Chairman, we must since the formation of this Government-income to it; we must reduce the expenditures directly done, to be sure, but not the less grievof this Government and the taxes of the people; ous. By the distribution law-for he would this they will compel you to do, if they prop-call it by its right name, it was "distribution," erly regard their rights and their liberties. though a mental reservation had been made by Mr. G. said he had another strong objection the use of the word "deposit "-the people to the adoption of the amendment proposed by of the large States had been sacrificed to the the gentleman from Tennessee, (Mr. BELL.) interest of those of the small States. He was It was, in effect, a deposit law, sought to be opposed to distribution in any way whatever; ingrafted upon a simple appropriation bill; and, even if his amendment should be incorembracing subjects totally distinct and dis-porated in the provision under consideration, similar in their characters; upon the same it would still be open to all his objections, principle, a tariff or any other incongruous law might be ingrafted upon an appropriation bill, and produce the greatest confusion upon the statute book. He thought that there ought to be the greatest possible system and congruity attainable in the framing of our laws. If he were otherwise favorable to the amendment, he would not vote for its adoption as an amendment to this bill.

loss to the whole people of the enormous expenses of collection? He entered his solemn protest against the whole principle.

though it would render it less unjust in its operation. He expressed his surprise at such a measure coming from the quarter it did. What had become of the once cherished Stateright doctrines? Where the doctrine of a strict construction of the constitution? Was it the design to continue the present oppressive system of taxation, for the purpose of collecting large amounts of money from the people, to Mr. UNDERWOOD was in favor of the amend-distribute it back in an unequal ratio, with the ment of the gentleman from Tennessee, because the object of it was to send the money back to the people, instead of keeping it in the vaults of the deposit banks, to enrich their stock- Mr. GIDEON LEE said: Mr. Chairman, I rarely holders, and add to the salary of their agent at give reasons for my vote. I shall, however, Washington. He went on to point out the vote against this amendment, on the ground I large increase in the number of deposit banks, voted against the distribution law of June; it especially in the State of New York, within is the same thing; my views are unchanged. the last year, and contended those banks were I vote against it, because it leads to the collecselected, and favored, with a view to aid the tion of money which the owners had better administration in carrying out its political keep than the Government; because it levies views. He then contrasted the amount of money for a purpose which the constitution public money on deposit in the banks in New does not warrant; because it corrupts our elecYork, Philadelphia, Baltimore, Cincinnati, and tion; because members of Congress will be Michigan, and attributed this difference more chosen in reference to the amount of money to the fact that some of those banks paid a they will pledge themselves to draw from the contribution to an agent at Washington, and federal coffers, and plant in their several dissome did not, than to any thing else; and in-tricts-I know the fact, that electioneering on variably, said he, those banks who pay a good sum to an agent get the largest amount of deposit. He feared there was some improper influence at work in the selection of these banks, and therefore he wished the source of corruption to be removed; and he considered this proposition as the best means of removing it.

Mr. MANN submitted an amendment to the amendment, providing that the deposit should be in proportion to the ratio of representation in the House of Representatives of the United States.

Mr. M. asked, where was the necessity of the proposition of the gentleman from Tennessee? Or had the gentleman any data upon which to estimate the amount of money to be appropriated under that proposition? And could they adopt it without that? The gentleman should have done what was done by an honorable Senator-introduced it at an early period of the session; for this amendment and that bill were identical. If, however, it should be

this principle is now in process; because I believe that, sooner or later, the inevitable effect will be to vote as little as possible for federal purposes: to withhold from the army, the navy, the fortifications, the proper necessary appropriations, and, finally, render the Federal Government a mere rope of sand.

Mr. THOMPSON, of South Carolina, could see no reason why, if this measure was wise and proper at the last session, it is not so now, except that the Executive has since openly taken ground against it—a very sufficient reason to some gentlemen. He was sure that it was not so with his friend from Virginia, (Mr. GarLAND.) If five millions was the sum proper to be left in the Treasury last year, what reason is there to require more now? If there is no surplus, there will be no distribution. Mr. T. said that of all humbuggery, in this age of humbugs, the greatest was that this measure would corrupt the States. What do gentlemen mean when they talk of corrupting that incorporeal thing, a State? They must mean, if

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[FEBRUARY, 1837.

indeed they mean any thing, that it will corrupt | repugnance, and vote for the amendment prothe people! This money is returned to the posed by the gentleman from Tennessee, (Mr. States, who have an unrestricted control of it. BELL.) That amendment, it was true, involved Has any one ever broached the idea of the a very important principle; but it had underStates corrupting their own people? How gone a full discussion; indeed, it had occupied corrupt them? By appropriating this money the attention of the country for years past, and to the beneficent purposes of internal improve- had received the deliberate consideration and ment and education? Would that more of the sanction of Congress at the last session. He States were thus corrupted. The distribution presumed, therefore, that every gentleman was must be equal, and fixed by positive law. There prepared to vote upon it. will be no discretion-no power of discrimination-no power of granting favors. Where that is the case, there can be no power of patronage. The money must be distributed, or left in the Treasury, to be distributed by the Secretary, at his good will and pleasure.

Mr. CRARY was opposed to the proposition of the gentleman from Tennessee, (Mr. BELL,) and to the amendment of the gentleman from New York, (Mr. MANN.) On no account could he be induced to vote for a distribution of the surplus, on the basis advocated by either of those gentlemen. The bill of the last session, called a deposit bill, but in fact a bill of distribution, was a bill of abominations. It distributed the public money unequally, unjustly. That money had been collected from the people of every section of the Union. It was paid into the Treasury by them, not in the proportion to their respective representations in the Senate and House of Representatives, nor in the proportion to their respective representation in the House alone, but in a proportion altogether at variance with either. It had been drawn from the people of the old States and the new, and not of the States only, but also of the Territories, and in proportion to their population at the present time. To distribute it, you went back to the census, taken six years ago; thus giving money to the people of the old States which you had taken from the people of the new States. By that act, the people whom he had to represent were deprived of a large sum of money which had been pillaged from them when they were unrepresented upon that floor; when they were denied a voice in the national councils. You propose now to reenact the same scene of injustice. He could not consent to it. If there was to be another distribution, there should be another census, and that census should form the basis of the distribution. In that way alone the surplus in your Treasury would be returned to those who had paid it there. In that way alone could justice be done to the people of his own State, to the people of the whole Western country.

Mr. BOULDIN said: To reduce the income to the wants of Government, and to reduce the tariff for that purpose, had been strongly recommended by the Executive. It was generally expected, on all hands, that it would be cut down in some degree. It was, however, then thought entirely too late in the session, and it was universally said that, at the commencement of this session, we should commence the work of reduction of the tariff and of the revenue. This was early proposed at the present session. Mr. B. had strong hopes and some fears on the subject, but voted to lay his colleague's resolution (Mr. MERCER's) on the table. This resolution sought to relinquish, on the part of the Federal Government, all claim to the money deposited by it with the States. Mr. B. did not know what effect this measure might have had on the reduction of the tariff, or on reduction generally of the revenue. The very able report of the Committee of Ways and Means, the chairman of which Mr. B. knew to be professedly, and did and does now believe to be sincerely, opposed to the protecting-duty system, seemed to brighten the prospect for reduction, which was cheering to Mr. B. and to the country.

But now, sir, (said Mr. B.,) we are again at the very crumbling brink of the grave of another session, and nothing is done. As to the report of the Senate, it promised little or nothing; what it would perform of that little he did not know. Between letting the money stay here, and the deposit bill as it was when ordered to be engrossed and finally passed-a sad alternative-Mr. B. was in doubt. Mr. B. has none now; with his loss of hope of reducing the tariff and the revenue to the wants of economy in the administration of our affairs, his doubts have vanished. It is true that the present Executive has recommended it, and the President elect has already, when questioned, declared his opinion to the same effect. Still (said Mr. B.) my hopes are gone. When I see the system of partly selling, but principally giving away, the public lands, playing into the Mr. ROBERTSON was, in general, much op- hands of the tariff system-protective system; posed to the addition of new clauses to an appro-and when I know that these are the only means priation bill, after it had been matured by the proper committee, particularly such as introduced matters unconnected with the main objects of the bill. This mode of legislation often left no alternative but to adopt a questionable or improper principle, or reject appropriations essential to the public service. But, in the present instance, he should overcome his

of increase or decrease in the revenue on the imposts and lands, unless we resort to direct taxation, I despair. They are the arbiters of our fate, and they are in the hands of those who are agreed to take care of those two systems, whatever may become of us. Sir, (repeated he,) I despair. The Executive can do nothing for us, let him try ever so hard.

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This system of one-tenth part selling, and | A few years since it was proposed to divide the other nine parts giving the public lands, among the States the money arising from the has a force and operation in it that has wholly sales of the public lands, by the land bill, escaped me heretofore. I know that, last originating with a distinguished Senator in session, there was something about the business another part of this House. It passed the that I could not see through. Whether it was Senate and this House by an overwhelming want of vision in me, or whether the whole majority. By the provisions of this bill, each subject was a muddy stream, impenetrable to of the new States in which the public lands the human eye, I did not know. But, though | were located received large donations of land, muddy then, it is now as clear to me as the and twelve and a half per cent. out of the mountain limestone water-the pure limpid proceeds of the sales within the State; and fountain, transparent as the air. the balance was divided equally among the States, based upon the census of 1830, which is the basis of the present proposition. This was intended to make up in some degree for the increased and increasing population of the new over the old States.

It is no longer a muddy pool to me. No, sir, I can now see a pin's head and point in ten feet water. I now see we shall not get the tariff down, we shall not materially reduce the revenue. I am willing (said Mr. B.) to let the compromise part of the tariff stand. I am willing to take off all the impost duties; I am willing to stop the sale of the public lands; I am willing all or any part of these things to bring down the revenue, but come down it must for me. I am willing to suspend all the rules, and set out this minute and spend all the balance of the time we have in doing it in a manner the best for all concerned. But it must come down, and that immediately, (said Mr. B.,) or I will vote to send any part, or all, back to the people. If I cannot get all, I will send what I can get. I will put it into the right pockets in every instance, if I can; I will come as near as I can.

Mr. B. said he knew it was unconstitutional thus to take it from the people in this way, and would be so to do the like again, and so it would be to keep it; and so long as we thus continue to take, I will continue to give back; and if I cannot do it unconditionally, I will lend it, deposit it. Strange thing, this take the people's money away from them, and then lend it to them. But if I can do no better, I must do that.

Mr. LANE said: The proposition now to be determined, and the only one in order for debate, is to distribute the surplus revenue among the several States, agreeably to the representation in this branch of Congress-to distribute, (said Mr. L.,) because no one believed a cent of it will ever be called for, or returned by the States.

The money proposed to be divided has been collected, not from the old States, not agreeably to the representation in this House, but from the whole people; and, whether regarded as arising from the sales of the public lands or upon duties upon merchandise, it has been paid according to population, not representation, in direct proportion to the amount paid for land and the consumption of imported articles. That if any disproportion in the collection of the amount proposed to be returned to the people exists, it is because the people of the new States have purchased more of the public lands than those of the old.

Sir, what has produced such an extraordinary change in the opinions of honorable members?

In this there was something generous, magnanimous, on the part of the advocates of the bill, towards the people of the new States, compared with the present proposition. The same gentlemen in this House who were the advocates of that bill are now the advocates of this proposition. Are honorable gentlemen prepared to give the reason and the cause for such a sudden change having passed over the vision of their political dreams? Is it to be found in the action of the people of the new States, in relation to recent and former elections of an important character? Surely not; no gentleman will admit this, though any one would be at a loss to find any other reason for such a change.

Mr. L. said the gentleman from Kentucky (Mr. UNDERWOOD) had, with an air of confidence, given the committee his reasons for supporting the proposition: that the money in the hands of the deposit banks increased the executive influence of the General Government; that it was not only improperly deposited, but used for political purposes to influence public opinion; that his honorable friend desired its removal from the pet banks, (as he is pleased to call them,) because these banks, or those who manage them, are the friends of the administration, and use the money for their own benefit.

Mr. L. said he was equally desirous for the removal of the money of the people from the possession and control of the banks, because they are, so far as his part of the country is concerned, most decidedly opposed to the administration and all those who sustain it; that they use the power that the public deposits give them for political purposes, and not for the public good; not to accommodate the people, whose money it is, but to advance the interest of the favored few; in short, to shave and oppress the people with the money of the people.

Sir, (said Mr. L.,) if the people of the States of this Union are incorruptible, he would like to have the gentleman inform the committee who it is he apprehends would be corrupted by the Executive of the Federal Government. conclude, Mr. L. said he had too much confidence in the justice of the members of the

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