removal of all duties increases the exportation of articles manufactured at home. I cannot conceive how this can be true. If foreigners can beat us in our own market, they can beat us elsewhere. The exports of domestic articles, in the years stated in the tables which the honorable gentleman has read, are not at all referable, I think, to any such cause as he supposes; that is to say, some natural cause necessarily producing such a result. The truth is, that prices fell, at that time, in consequence of excessive importations from Europe, and the holders of our own manufactured goods were obliged to get rid of them, by exportation or otherwise, in the best manner they could. It is known that our exports of manufactured articles have been very variable and irregular. When importations have been great, and prices become reduced, then exportation has taken place. Our manufacturers have, in many instances, shown much skill in the fabrication of articles suited to foreign markets. For a while, they have been successful, in some degree; but the English have always been ready to imitate them, and profit by their example. If a particular article, manufactured in the United States, has been found capable of being sold to a profit in the Mediterranean, in South America, in India, or in China, the English manufacturer has immediately set himself to work to produce a similar article, and to drive the American article out of the market, by a like article afforded at a lower price, because the result of cheaper labor. These English articles. have been sold as American products. The stamp of "Lowell," and "Tremont Mills," or "Lawrence Mills," has been found in Asia, and in South America, on articles manufactured at Manchester.

V. Finally, the honorable member is of opinion that the whole system of protection was prostrated, and is prostrated, cut up, root and branch, and exterminated forever, by the State interposition of South Carolina. He has often expressed this opinion before. I only take notice of it now, as he has expressed it very strongly, and as it leads me to fear that I have been wrong in the expectation which I have been willing to cherish, that he himself would see both the justice and the political wisdom of giving moderate and reasonable protection, and of continuing it, so long as necessary, to some of the great, leading, and important branches of domestic industry.

I have only to add, that I wish men of all parties, who entertain the opinion that duties on imports fall heavily and unequally on the South, would calmly reconsider that opinion. Look to the great article of woollen cloths; where are they most consumed, because most necessary? Our laborers cannot, and must not, be left shivering under a Northern sky, with the slight clothing which may be sufficient to protect the laborer of the South. They must have

woollens, and they pay the price for them; and pay the price enhanced, if enhanced, by the duties; and pay it willingly, for the sake of being secured in the hopes of a reasonable reward for their labor. This heavy article, one of those which pays most revenue, is consumed in the North, out of all proportion, more than in the South. Look to iron, another important article. The remarks applicable to woollens are applicable to this also; and the more so, as the manufacturing districts themselves are great consumers of iron. The same may be said of lead, and many other articles.

Sir, it is not my object to show that the South does not pay her part of the public contributions. I admit, most cheerfully, that she does pay her part; but my purpose has been to show, if I could, that she does not bear so unequal and unjust a portion of the public burdens as the gentleman has supposed. I am quite sure that a calm and dispassionate consideration of this whole subject, by intelligent and enlightened men, on either side of the Potomac, would result in the conviction that there is really no such wide difference, in regard to what the interests of the different parts of the country require, as ought either to endanger the security of the Union, or create ill-will. For myself, I fully and conscientiously believe that, in regard to this whole question, the interest of the North and East is entirely reconcilable to the real, solid, and permanent interest of the South and West.

VOL. III.

54

JJ*

SPEECH

IN THE SENATE OF THE UNITED STATES, MARCH 30, 1840, ON THE TREASURY NOTE BILL.

I REGRET, Mr. President, that the chairman of the committee is absent, as he might probably have made use of this occasion, not only to show the necessity of raising this sum of five millions, for the immediate use of Government, by some extraordinary means, but also to state his opinions upon the public revenue, both in regard to its present state and its prospect for the future.

The sum and substance of the measure now before us is, to borrow five millions of dollars, for two years, if necessary, and to pay therefor any rate of interest not exceeding six per cent. This borrowing is to be done by means of issuing Treasury notes, bearing interest; and, so often as they shall be received at the Treasury, they are to be re-issued, so that the whole sum of five millions may be kept out. And the authority to issue and re-issue is to last one year. The consequence of this is, that, one year from the date of the bill, if the whole five millions be not then outstanding, the balance may be issued, redeemable in a year from that time. It is a power, therefore, to make a loan, for five millions, with an authority to continue that loan, by borrowing to-day to repay the sum borrowed yesterday, and to continue this process, in effect, for two years. This is the substance of the bill.

Mr. President, at the opening of the session, the President of the United States informed Congress that the financial operations of the Government for the past year had been very successful.

The Secretary, too, in the very first paragraph of his annual report, stated, with much satisfaction, that the revenue of the Government had been increased, and the expenditures diminished.

That the resources of the country are abundant, no one can doubt. Its wealth, its activity, its commerce, and its freedom from burdensome taxation, render it able to raise, with entire facility, a revenue quite equal to all the just wants and necessities of the Government. But, notwithstanding these congratulations of the President and Secretary, I cannot but entertain a doubt whether, under the operations of provisions now actually existing, and under the expenditures which have been made, and are making, or are in

anticipation, it is prudent to indulge in sanguine hopes of an overflowing Treasury. The doubt receives countenance from the fact that the bill before us is to authorize the borrowing of five millions, in the form of Treasury notes, and under such circumstances as leave no reasonable hope, as I think, of their redemption within this year. I do not oppose the bill, but I propose to say a few words on the state of the Treasury, and on the history of its receipts and disbursements for the last three years.

We learn, from the Secretary's annual communication, that, at the commencement of this year, there was in the Treasury no more than a million and a half of dollars available for the purposes of Government. I omit fractions, and use round numbers, for the sake of brevity. At the same time, the Government owed, on outstanding Treasury notes bearing interest, two millions and three quarters, or two millions seven hundred and fifty thousand dollars.

This was the state of the Treasury January 1, 1840, as near as the Secretary could estimate or ascertain it in December. It turns out, from the paper just read, that, in fact, there were a few hundred thousand dollars more in the Treasury in January than the Secretary's estimate, but from what funds or sources does not appear; and this circumstance does not affect the general view which propose to take.

I

Let us now go back to January 1, 1837. In 1836, there being a great surplus in the Treasury, the deposit law was passed, by which five millions were to be reserved in the Treasury, in aid of accruing revenues that should be in the Treasury January 1, 1837, to meet future demand, and the rest of the money divided, in deposits, with the States, by four quarterly payments or instalments.

As the Secretary was obliged to make his calculation a little before the 1st of January, and could not say, exactly, what amount might be in the Treasury at the time, he made a safe allowance; and it happened, in the end, I think, that six millions and more were retained in the Treasury instead of five. At the commencement of 1837, then, the Government had on hand six millions; and it had before it the whole accruing revenue of the year. Before the year was out, - that is to say, in the September session,Congress suspended the payment of the last or fourth instalment, or fourth deposit to the States. This measure retained in the Treasury a further sum of nine millions, thus raising the reserved aggregate up to fifteen millions. Subsequently, the Treasury received from the Pennsylvania Bank of the United States five millions of dollars, as part of the property, or capital, of the United States in the former bank. This swelled the amount to twenty millions. So that, since January, 1837, the Treasury has had full twenty millions of former receipts, as well as all revenues arising

since.

Now, it is apparent that these twenty millions have been expended within the three years, in addition to all the revenue which has accrued in the mean time, with one deduction, which I shall state. It is true, that, in September, 1837, Congress suspended, or postponed, the payment of certain custom-house bonds; but the time of postponement has long since expired, and the bonds have been paid. It is true, also, that the deposit banks, in 1837, held certain sums belonging to Government, which they wished time to pay. But, before the commencement of this year, these debts had been brought down to a million of dollars, or thereabouts. The true account, then, stands thus:

Reserved under the Deposit Act, .

Amount of fourth deposit held back from the States,
Received from the Bank of the United States,

Borrowed on Treasury notes, outstanding Jan. 1, 1840, 2,750,000

Deduct amount in Treasury January 1, 1840,

22,750,000 1,550,000

21,200,000

Deduct amount still due from deposit banks,
Balance,

1,000,000

$20,200,000

Twenty millions two hundred thousand dollars, then, appear to have been expended in the three years between January, 1837, and January, 1840, besides all the receipts from the custom-house, and land-offices, and all other sources.

If there be any error in this general statement, I hope some gentleman will point it out, and I will cheerfully make the necessary correction. My object is to be accurate as well as distinct. But, if there be no error, - if this statement be true, as I

1

suppose, - then the result certainly is, that, for the last three years, the Government has expended almost seven millions a year beyond its income, and has supplied the deficiency out of funds previously acquired or received. The six millions reserved under the deposit law, the nine millions afterwards withheld from the States, the five millions received from the bank,—all these were funds. previously acquired, and none of them any part of the income of 1837, 1838, or 1839. All the income and revenue of those years have been expended, and these twenty millions more.

This general state of the Treasury, and the history of revenue and expenditure for the last three years, may well awaken attention. We have no twenty millions more in crib to go to. Our capital is expended. There will be two millions and a half due from the Bank of the United States in September, and there is a