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account for some of the great political changes which we had all witnessed within the last year or two. He trusted that a bill, demanded by all the considerations of humanity, mercy, and the public good, would pass, without any such amendmentĝas was now proposed to it.

SPEECH OF MR. SHEPARD,

OF NORTH CAROLINA, In the House of Representatives, February 4, 1841In Committee of the Whole on the state of the Union, on the Treasury Note bill.

Mr. BARNARD of New York proposed to make a loan of $10,000,000.

Mr. STANLY of North Carolina offered an amendment to lay a duty of 10 per cent. ad valorem on silks, 20 per cent. on wines, and 20 per cent. on linens.

Mr. SHEPARD addressed the committee as follows:

Mr. CHAIRMAN: I am reluctant to continue this discussion, but honorable gentlemen have advanced doctrines which I consider of a dangerous tendency, and I cannot forbear to express my own opinions. Since the commercial revulsion of 1837, the income of this Government has not been equal to its expenditure. In the years of plenty, the surplus revenue was divided among the States, and now, in the day of comparative famine, no willingness is manifested to curtail expenses, but a proposition is made to increase the burdens of the people. The member from Maine [Mr. EVANS] has asked, "in what branch of the public service can reduction be made?" I shall not set up for a political purifan, but I point to the unnecessary length of our sessions, to the disgraceful amount of contingencies, the enormous increase in the cost of collecting the revenue, and I believe that a faithful examination would unfold much more, that requires the knife and the caustic. Economy, however, should not approach stinginess, for this would ultimately prove the grossest extravagance; let worth and talent be well rewarded, and if sinecures be abolished, salaries reduced in proportion to the service rendered, and no expenses incurred for the special benefit of individuals or sections, I indulge the hope that, after the revival of trade, the revenue will be amply sufficient for all the wants of Government. Gentlemen have poured forth cataracts of eloquence on the subject of corruption, but they err in laying the whole blame on either of the great parties: it is immaterial who is the Presiden', or what faction has the ascendency; if much money be placed under the control of politicians, there is reason to fear that it will be used to advance the sehemes of party, and to promote the interest of cunning leaders. It is wise, therefore, to save our rulers from temptation; it is just to let the people hold their own property, and to take the smallest portion of their earnings, that the public service will admit.

I am opposed to the levy of new taxes, until an honest effort be made to economize, and I will not conseat that three articles shall be selected at the present time for the partial legislation of Congress. A new President will shortly be in office; those, who have assumed all the wisdom and virtue of the land, will have the reins of Government, and they should bear its responsibilities. At the next session the whole system of taxation must be revised, and there is no necessity for anticipating the deliberations of our successors: let timely warning be given to all the great interests of the country; let the public mind be drawn to this important subject in all its relations, and I hope that the question will be settled on a basis, satisfactory to all, and oppressive to

none.

A tax on imports is easy of collection, and borne without murmur by the mass, because its subtle operation is not perceived, though it is not the less powerful in its effect, or less liable to abuse, and should be watched with jealousy. The consumer pays the duty, and, if the article be limited in quantity or of indispensable necessity, this would be the end of the matter, and one man would not have more right to complain than another. But where the consumption depends on the price, the impost has a much a wider bearing. If cloth and mola-se be cheap, more of these comforts will be used than

Treasury Note Bill-Mr. Shepard.

when dear; a duty of 30 per cent. ad valorem on the former, and of 5 cents on the latter, must diminish importation, or keep out of the country much that would otherwise enter. The foreigner is not the only person who would be isjured by this result. His merchandise comes here in exchange for our productions—the trader of the city is a mere agent of the industrious classes, he buys the corn, cotton, the tobacco, the naval stores, the manufactures of domestic labor, and gives them for the products of other climes and other people. All commerce is resolvable into the great principle of exchange; if the country sells nothing, it can buy nothing; it it exports nothing it can import nothing; and that which comes here in the shape of foreign goods, is only another form of our own property, and is as much American industry, as the grass of our fields, or the cloth of our factories. Any distinction between them is fa lacious and unjust.

If a tax, therefore, on foreign merchandise diminish its consumption, domestic produce, which is exchanged for that merchandise, is indirectly affected. If we buy less of the foreigner, he is compelled to buy less of us; if we cease to take that which he can give, the market for the products of our own labor is lessened in like proportion. The exact degree to which the produce is injured by the customs, cannot be estimated with certainty, for trade, when driven from one path, will generally find another; but as the natural course of things is the most profitable, any law, which obstructs the free interchange of commodities, and aims at the establishment of an artificial system, must be butdensome to those classes, on whose industry the experiment is made.

But, sir, let us leave theory, and take a more practical view of the subject. In 1839 the exports of the United States were valued at $103,533,891of which $63,430,845 went to England, and $16,553,667 to France; in that year cotton was shipped to the amount of $61,238,982, of which $46,137,365 went to Great Britain, and $13,323,142 to France-$9,832,943 of tobacco was exported, of which $5,362,331 went to England, and $901,950 to France-$2,460,198 of rice was shipped$638,800 of naval stores, of which $501,584 went to England. It thus appears that cotion, tobacco, rice, and naval stores, constitute more than twothirds of the exports of the country, ($74,220,923,) and that England and France are the great markets, to which these productions are carried. Idian corn and timber would swell this sum considerably; they are left out of the calculation, because they are not exclusively the product of the six or seven States, which raise the great amount above mentioned. The imports of the same year amounted to $162,092,132, of which $71,600,351 came from England, and $33,284,119 from France, consisting principally of the manufactures of wool, cotton, iron, linen, silk, &c. These facts prove that an immense trade exists between the countries, founded on the mutual wants of the people, and the variety of their industry-a trade that that would keep pace with the increase of popula tion, and the growing demands of civilized life, if not disturbed by political quackery. England requires the raw material, but her climate forbids the culture. America needs the produce of British workmanship, but she cannot struggle with matured skill, vast capital, and low wages. Such ties bind together the nations of the earth. The gifts of Providence are widely distributed, perhaps, to show man that his real interest and substantial comfort are promote by peace and harmony.

If, for any purpose, a tax is laid on iron and woollen, so that the foreign manufacture is driven out of the market, or its consumption diminished, the foreigner will take less of cotton, tobacco, naval stores, or other domestic articles, which were exchanged for his own. The revenue of this country is principally derived from duties on the manufactures of Great Britain: her cotton goods, her woollen cloth, her iron, her glass, and her sugar, have been the great objects of attack-they have sustained the burden of the Federal Government, though this very England consumes nearly twothirds of our domestic productions. In aiming a blow at the foreigner, you strike one of your own citizens; the tax collected is paid by the consumer,

H, of Reps.

bat the effect reaches the producer, and all interested in his prosperity. This producer is the agricul turist of the Southern States-the cotton grower, the tobacco planter, and the getter of naval stores: the raiser of Indian corn is also concerned, for his market is among the planters, devoted to other products, and every citizen of those States, whatever may be his occupation, is benefited by maintaining the value of the staples, which give strength and wealth to the Southern community.

If this reasoning be sound, the Federal Government indirectly taxes the industry of a few States. This will bring to complaint from me, whilst the burden is reasonable, and the money is used for wise and constitutional purposes. But taxation should be equal. All receive protection from the Government, and all enjoy its inestima ble blessings; a tax is levied on the agriculturist,though his property requires no more vigilance than that of other citizens, and why should the domestic manufacturer escape? Is he a better man, or a braver soldier? Does he contribute more to the wealth of the country? Is he more liberal in his means or policy? And yet he is the favorite of the Government, living without taxation, possessing the home market by warring against foreign articles, and, as I will proceed to show, having the advantage of free trade with foreign States.

By the "Compromise act" of 1833, silks and linens were admitted free of duty. This was done, contrary to the wishes of the planter, for the beaefit of the manufacturer: he did not produce silk and linen goods, and insisted that the whole tax should be laid on iren, cotton, woollens, and other necessaries of life, because, in these things, he was a rival to the foreigner. The consequence is, that the trade between France and the United States has greatly increased; in 1830 the silks imponed were valued at $5,774,010; in 1835 they went up to $16,247,782; in 1839 to $21,350,669. The whole exportation of cotton to France has also increased, amounting in 1832 to little more than $7,500,000, and now to $13,323,142. Here is a powerful argument in favor of free trade; restriction is the malaria of commerce, its fetid breath deadens enterprise, and when it passes away, every thing springs into life and actividy. What was intended to be a gratuity to the manufacturer, has become useful to the cotton planter. France consumes nearly a fourth of the crop; she is steadily improving in skill and means, and may become a rival market to England for the great staple. But if a daty be imposed on lines and silks, this fair prospect may be seriously darkened; wise rulers will hesitate before they take a step of such importance without urgent necessity.

Glance your eye, sir, over the list of importa tions. You will find that heavy duties are imposed on nearly all the articles which come here in exchange for cotton, tobacco, &c. except worsted, wines, and these two, which are now selected for taxation. This is the only redeeming feature in the system of injustice; and yet gentlemen seem anxious to complete their work, and make it utterly hideous. If more revenue be absolutely necessary. it is at least decent that Southern agriculture should not bear the whole burden; and I will direct the attention of honorable members to a few objects that have escaped notice.

Shoes and leather are taxed, for the special comfort of the tanners and boot makers of Lynn, in Massachusetts; but raw hides and skins come in free, to the amount of $3,158,027: they are inported from Mexico and South America, in exchange for those manufactures, which the Govern ment has so bountifully protected from Europeas competition. Dyes to the amount of $586,450, mahogany $504,826, barilla $150,637, also are admitted free of duty: they are used by the manufacturer; they come principally from South Americ, in exchange for the work of the favorite. Coffes, valued at $9,744,103, is free: it comes from Brazil and Cuba; the former is a great market for the products of Northern labor, and the only productions of the latter which are taxed heavily in that country are sugar, which the creole of Louisiana wishes to furnish at a high price, and spirits, which our rulers fear might entice the people from a de

26TH CONG.... 2ND SESS.

Teas,

licious beverage called Yankee rum." amounting to $2 424 594, are also free: they come from China, in exchange for specie, and cotton manufactures. In 1839, there was exported $850,533 of fish to Cuba, Hayu, and South America; $630 455. of oil to the same and the Hanse towns; $2,975,301 of cotton goods to South America, priucipally; $178,142 of spermaceti candles to the same region; $361 840 of furniture to Cuba, &c; $453 471 of Soap and candles to South America; $131,588 of iron and nails to Cuba, &c; $748,862 of manufactures of iron to South America and Cuba, &c. &c; and $197,162 of gunpowder to Mex ico and South America. Nutmegs, pepper, cocoa, to a considerable amount, come in free from Holland and South America. Without going farther into detail, it will be seen that many other. articles, besides wine, silk, and linens, are admitted free of duty; but they are essential to the factories, or come in return for the products of manufacturing labor, and this may be a good reason to continue the bounty. More than two thirds of the imports from England are taxed, and one-third of those from France, whilst the merchandise from other countries is admitted on more favorable terms or entirely free; the commerce, in which the agricultural States of the South are most deeply interested, is shackled and embarrassed, whilst that which is carried on by the industry of other sections, is placed on the most liberal footing. And this is done by a Government established for the whole Union. Sir, I will not ask the gentleman from Pennsylvania [Mr. BRECKENRIDGE] to tell his constituents that good policy and fair dealing forbid such legislation; it might be cons.dered rnde, as they doubtless think it just to tax the whole world for their own benefit. But I was grieved and astounded to hear the honorable member from South Carolina [Mr. THOMPSON;] he has volunteered lay a burden on those whom he represents, and he will be spattered with praise for his magna nimitybut, sir, it is a virtue that he has no right to practise, until he is prepared to defray the whole cost.

The excuse for taxing wines, silks, and linens, is that they are luxuries. The gentleman from Georgia [Mr. NISBET] talked of the rich man, riding in his carriage and flaunting in silk. Such language gave me pain; it may blind the people of Georgia, but it caunot exalt the reputation of the gentleman. A tax on the rich will not benefit the poor; the fine lady will use silk, though its price be increased, but a heavy duty will debar the less wealthy from such apparel. But this cry proceeds from a source, that honest men will distrust -it comes from those who established and fastened on the country the restrictive system. Mr. CLAY was the author of the act of 1824, and Mr. WEBSTER was the champion of the law of 1828; by the former a tax of 33 per cent. ad valorem was placed on woollens, 34 cents per square yard on cotton bagging, 3 cents per pound on cables and other iron, 5 cents per pound on nails, 30 per cent. ad valorem on scythes, spades, knives, shovels -by the latter the duty on woollens was increased to 45 per cent. ad valorem, an additional tax of 10 per cent. ad valorem was put on axes, drawing knives, adzes, 10 cents per gallon on molasses, and by this or the act of 1832, 10 cents per bushel on salt, and 2 cents on brown sugar. These things were done to benefit the manufacturers of Lowell, the iron monger of Pittsburgh, the grower of hemp in Kentucky, and the sugar planter of Louisiana: the poor were taxed for their blanke's, for the ordinary comforts of life, for the utensils which gaia their livelihood, and the rights of all were trampled under foot to gratify ambition and cupidity. The bare memory of such acts must fill every sound heart with indignation; the authors will find it difficult to assume the guardianship of the poor, for professions will not save them from suspicion. But, sir, I am willing to lay the greatest burden on luxuries, and, to test the sincerity of gentlemen, I ask them to lower the tax on necessaries; let the rieh pay well for silks, linens, and wines, and permit coarse woollens, salt, molasses, and iron to come in without any duty. Will our opponents agree to this proposition? Will they do any thing that is really beneficial to the poorer classes? No, sir, no; the cry about luxuries is a mere plea for

Treasury Note Bill-Mr Shepard.

getting money, to squander on electioneering projects. If, however, gentlemen prefer another prin ciple, let an ad valorem duty of 10 per cent. be laid on all importations, whether necessaries or luxuries; a common feature should pervade our system of taxation; we ought not to legislate against a luxury to-day, and make war to-morrow on the common necessaries of life, or the Government should recognise no distinction, and put ali on the same footing. If I am not mistaken, the northera capitalist is beginning to manufacture silk goods; the day is past when he can boldly ask for protection, but if a duty could be laid, under any pretence whatever, the infant factories would swell into great establishments, and the whole people would contribute to his wealth. This may be one of the secret springs of the hypocritical movement for the relief of the poor.

Mr. Chairman, an attempt has been made to divide the friends of free trade, by appealing to the selfishness of the tobacco planter. We are told that a duty of 75 cents per pound is levied on tobacco in England, and that France prohibits the article, except a certain quantity for the King, who derives a large revenue from its sale; these facts are considered sound reasons for taxing wines, silks, and linens, in order to force England and France to admit tobacco on more liberal terms. If there was the slightest probability of open ng the market, I should not hesitate to impose countervailing duties; but I ask the gentleman from Maryland to mention a single instance where they have succeeded. These nations themselves have been wasing a commercial warfare for centuries; their statute books are full of the most absurd regulations, injurious to both parties, and now, when the error is seen, they cannot be touched, because great interests are dependent on the permanency of the laws. England and France are enormously indebied, and they must impose heavy taxes to pay the interest. Does the member from Maryland expect tobacco to be favored, when almost every thing thing that is eaten, drunken, or used in those countries, is grievonsly burdened? Perhaps England considers tobacco a "luxury," and thinks it right that her aristocracy should pay for the enjoy. ment; or she views it as a poison, whose use is destructive to health and cleanliness, and should be discouraged. The climate of Great Britain is good for tobacco, but its culture was forbidden more than one hundred years ago. This circumstance may throw light on her policy, and warn gentlemen of the danger of converting a consumer into a rival producer. Now, sir, is there much hope of driving France and England from their ancient policy? Negotiation may ultimately succeed, but the pride of these firm and gallant nations will be kindled at any measure, which bears the aspect of constraint, and the trade may be still farther shackled. Suppose, however, that retaliatory duties should not be successful, and then the tax on wines, silks, and linens will become a real injury to the planter; these are some of the articles which come in exchange for tobacco, and, if their consumption be diminished, the foreigner will be less able to purchase the domestic product. So that in striving to get more, we may lose the advantages already possessed.

But in quarreling about tobacco, we may bring down the value of another great staple. France and England will take cotton in exchange for their productions, and is it wise or just to embarrass a trade, that is mutually beneficial, because the ru lers of Europe will not also receive tobacco? Sir, this would not be dissimilar to the opium war on China. The universal demand for the great export, may be a blessing conferred, in recompense for the deadly climate where it grows, and I feel sure that the tobacco planter will not grumble at the preference, or wish to pursue a dangerous policy at the risk of injuring another citizen. It cannot be that Maryland, Virginia, and the fairest portion of my own State, will desert the principles for which they have long struggled; the gilded bait now presented is a deception of the enemy, to lure them from the safe ground heretofore occupied. The outsidefis fair,but within is concealed the instru ment that will drag them to destruction. If our ranks

H, of Reps.

be broken, and the Government once more begin to regulate industry, the stronger interests will rule according to their passions and their appetites: he history of the past is an index to the future, and the tariffs of 1824 and 1828 show what may be expected from those who are hungry and thirsty after plunder.

The principal object of these taxing schemes, is to prepare the way for dividing the proceeds of the public lands among the States. When Virginia ceded the Northwestern Territory in 1784, she declared that the lands shall be considered a common fund for the use and benefit of such of the United States, as have become or shall become members of the Confederation or Federal alliance of the said States, Virginia inclusive, according to their usual respective proportions in the general charge and expenditure, and shall be faithfully and bona fide disposed of for that purpose, and for no other purpose whatsoever." At that time, before the existence of the present Constitution, the Treasury of the United States was supplied by assessment on the States, in proportion to the land tax of each, and it is not surprising that the idea of a general fund should be connected with the manner in which it was usually raised. This explains the language in the latter part of the paragraph above quoted, "according to their usual respective proportions in the general charge and expenditure," which has been seized on as an autho rity for giving to the States the proceeds of the land. A mind anxious for truth, and not in search of an excuse for bad policy, will be satisfied that the expression "common fund," evinces the intention of Virginia to grant this Territory to the States a nation, not as separate communities. From the time of the cession, down to a very late period, this opinion was universally entertained, and its contrary is not heard of, till poli icians be. gan to think it a good instrument for delusion and bribery. The grant of Virginia extended only to the sovereignty of the country; the land itself be. longed to the aborigines, it was purchased from them by this Government, paid for by taxes levied at the custom-house, and in every view must be considered a national property. But that portion of the Northwestern Territory which remains unsold, is very small in comparison to the immense domain which was acquired from France; and yet honorable members who use the cession of Virginia as an argument, do not distinguish, and intend to apply the same principle of d sribution to the whole of that vast region. Whatever pretence, therefore, may be set forth, and however laborious gentlemen may be to disguise the real character of this measure, it conceals a doctrine of great magnitude and of momentous consequences. Sir, is it constitutional, or is it proper, that Congress should collect money for the Sate Legislatures? These are the questions involved in this discussion, and it is unworthy of a statesman to evade them, for the decision must deeply affect the destiny of our institutions.

The Federal Government was established for the purposes declared in the Constitution; it was authorized to "regulate commerce,' "to declare war," "to raise armies," "to maintain a navy," "to provide for the common defence," &c.; all powers not delegated are reserved to the States, and it was designed that all the duties of Government, not imposed on Congress,should be performed by the local Legislature. The excellence of the system depends on keeping each of these agents in its prescribed orbit. If the central body draw to itself what specially belongs to the smaller creations, or if these grasp at the means which give vigor and efficiency to the great head, the whe'e Government will be thrown into confusion. The Constitution does not empower Congress to become a tax gatherer for the State Legislatures, and it is. not necessary that we should assume this respectable position, for the same authority is given to both, though the forms may be different; and if money be needed for sectional objects, it ought to be levied by the local Government. But a great arguer [Mr. WEBSTER] has said that Congress has power to "dispose of the territory of the United States," without any limitation, and therefore we can act on this subject according to our own discretion. If this

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be sound reasoning, it is constitutional for us to to borrow money, and give it to the kingdom of France, for the power to borrow is also unlimited. The trae method of construing the sacred compact of our fathers, is to take an enlarged view of the whole instrument; the subordinate grants are ancillary to the great object; the power of taxation was conferred to effect the main purposes of the Federal Government, and in "disposing" of national property, we are bound to think of national duties, and o refrain from interfering with local affairs, however expedient it may seem to be. In their zeal to appropriate the public domain, and achieve a party triumph, gentlemen should remember that the proceedings of to-day will be an example for to-morrow; a false construction of our great charter may be the basis of future schemes, repugnant to the spirit of the contract, and hostile to the interests and feelings of large minorites of the people.

Toat portion of the opposite party, which boldly avows its principles, and is not ashamed of its true name, I sincerely respect; from the remainder, that is Federal in doctrine and Republican in profession, that is endeavoring to cheat the coun ry by tricks and devices, we have not much to hope. The former seeks to strengthen this Government, by making the States dependent on its bounty: formerly the plan was to encroach on the jurisdiction of the States, but now they are invited to assault the cen. tral Government, and seize its property. When the Legislatures taste of the public land, do gentlemen Suppose that the appetite for spoil will be satiated? May not other demagogues outstrip their teachers, and require a still greater share of the National Treasury? The Danaides were condemned to the endless task of pouring water into a leaky vessel, and a similar fate will attend us, if thirsty patriots increase in number with the usual rapidity. Is it wise, then, for the honest friends of a safe and efficient Government to threw away its means, and impair its necessary strength? Perhaps they suppose that depletion will render indispensable their favorite measure-a protective tariff. And is this the way to make the Government strong, to fix it deep in the hearts of the people, to create in us love and reverence for the work of our fathers? No, sir, Congress only becomes a tool of the dominant majority; it is used for vicious designs; and though one section may receive the shower of gold, another is burdened and oppressed.

But is this an auspicious period for the policy of distribution? In order to cast odium on Mr. Van Buren, gentlemen have drawn a sombre picture of our condition; according to them, the Treasury is in perfect chacs, the army d sorganized, the navy rotting, the Government heavily indebted, and yet they wish to dissipate the public revenue. Look abroad, sir, at the events which are transpiring in other quarters of the globe; France, armed to the teeth, increasing her marine, and indulging in dreams of gigantic ambition-Great Britain, dictaling to Europe, plundering Asia, and arrogantly searching our own ships on the high seas. At a mɔment England cou'd pounce on Cuba, and annoy the whole Southern coast, or a fleet of her steamships might anchor in the harbor of New York, before the blow was even suspected. Are we prepared to repel aggression? Have we availed ourselves of the great improvements in naval science? No, sir, American statesmen are too busy with the petty schemes of personal aggrandisement-they hunt after popularity as if it were the philosopher's stone -and they are now striving to bribe the country with that money, which should be devoted to its protection. Shame, shame cn such agrarian pro. jects!

The annual income from the public lands may be $3,000,000, and if it be given to the Legislature, the whole result is, that one agent is exchanged for another, and the people themselves do not receive the benefi'. Pennsylvania might get $300,000, and some would call this a gratuity, for which honor and glory shou'd be awarded to the nan, who bas discovered a new process of acquir ing money. But if this fund be taken from the Treasury, its place must be supplied by new taxes, or old burdens will remain, from which the country ought to be relieved. Pennsylvania will pay back

Pre-emption Law-Mr. Benton.

to the United States as much as she receives; her people will be taxed to return m ney which we gave to the Legislatures, and no one bat a demagogue can see the wisdom of this operation. The share of North Carolina might be $100,000, and the honest people of that ancient Commonwealth are made to believe, that this comes from the abundant generosity of someboiy unknown; whils', in reality, their salt, iren, sugar, molasses, cloth, &c. are highly taxed at the custom-house, to enable this Government to transfer a portion of its revenue to the rulers of the States. The deception thus practised is a great objection to this scheme: if the tax payers, knew whence the money was derived, or directly felt the hand that was rummaging their pockets, they would be more watchful of the politicians who control the local powers, and would hold them to the strictest accountability. But if Federal policy prevails, we shall behold a unversal scene of fraud and imposition; the facility of getting the people's money, without being caught, will open the door to the wildest schemes of expenditure, and the poor creatures, who hang about the legislative hall, seeking pay for dirty services, will receive an ample share of the public property. Why do we hear the groans that come up from every portion of the land, on account of debt? Credit has been too easy, and the people, not feeling any immediate burden, did not perceive the weight that every day's misconduct was accumulating. Such will be the issue of any contrivance to blind the country; the honest, and manly way is to tell the truth, and to scorn the political legerdemain which has become a favorite substitute for virtue and intelligence.

Mr. Chairman, I did hope that this session would be devoted to business. For years, the bitter conflict of party spirit has consumed the time of this House, and made us overlook the serious duties of legislation. The country needs repose, and if the promises of the late canvass were remembered, there would be a union of spirit and feeling to pro. mote the welfare of the whole nation. But, sir, economy is never mentioned, extravagance has ceased to be frightful, reform is the subject of ridicule, and the majority of this House are taunted with parsimony, because we are sincerely anxious to curtail expenses, and avoid the necessity of new taxation. The member from Maine [Mr. EVANS] boldly contends that the expenditure has not been too large; the gentleman from New York sketches a magnificent picture of improvements to be made; whilst their friend from Tennessee [Mr. BELL] gently chides them for being so open-mouthed, but does not commit himself in favor of economy, and complains of all things which his opponents are endeavoring to do. These are ominous signsthey exhibit a sordid hankering after patronage, and shadow forth the career which honorable geutlemen intend to pursue. The tumult of one election has scarcely subsided, when preparations are made for another conflict of a yet more vindictive character. The coming Administration is considered but the herald of one that is mightier and prouder than his representative: its influence will be used, its offices will be distributed, and its measures will be directed to elevate the man, who brought it into existence. Sir, is the country nothing, are the people nothing, that politicians have the audacity to make these selfish arrangements, without reference to the glory and well-being of the Republic? Such daring innovations, and reckless tampering with great interests, are worse than the mummery, the imbecility, and pompous parade, that now disgrace the land. But, if these forebodings prove unfounded, and the new President shall think and act for the whole nation, and not for a clique or a particular section, no member of this House will give him a more cheerful support than myself.

SPEECH OF MR BENTON,
OF MISS URI.

IN SENATE, Tuesday, January 26, 1841. The bill to establish a permanent prospective pre-emption system, in favor of settlers on the pub. lic lands, who shall inhabit and cultivate the same, and raise a log cabin thereon, was taken up, and

Senate.

having been read through, the question being on the motion of Mr. CRITTENDEN to recommit the bill, with instructions to report a bill for the distri bation of the proceeds of the sales of the public lands among the States.

Mr. MANGUM addressed the Senate at much length in opposition to the bill, and in favor of the recommitment.

Mr. BENTON rose in reply, not to the Senator who had just taken his seat, [Mr. MANGUM,] but in reply to a Senator who had spoken on Saturday, [Mr. WEBSTER,] and who on that day had amended an argument in favor of the land distribution bill, which he had used on Thursday. On that day he [Mr. W.] rested the whole argument in favor of the constitutional power of Congress to pass the bill, on the terms and conditions of the cession acts and deeds from the different States. He relied on nothing else. He (Mr. B.) had replied to him on the spot, showing the utter inadequacy of this argumentshowing that it did not cover the bill, or hardly touch it-that the bill applied to all the lands of the United States-those purchased from Spain and France, as well as those acquired from the States. The answer was conclusive; it was mathematical; it was the logic of the exact sciences; and every one saw its effect. It put an end to the debate; and, to all appearance, it had put an end to the question. Thus the debate of Thursday terminated.

On Saturday the Senator from Massachusetts renewed the discussion, and amended his argument. He brought forward new matter, which had escaped his view on Thursday. He took a new position, establishing himself on that clause in the Constitqtion which authorizes Congress to dispose of the territory of the United States. Upon this clause be took position, and deduced from it a new argument in favor of the d stribution bill, broad enough to cover all the lands, come from where they might, but not valid enough to stand examination. He deduced from it an unlimited authority in Congress to dispose not merely of the lands, but of the land revenue itself, according to its will and pleasure, without either guide or restraint from the Constita. tion. He made Congress absolute over that branch of the revenue, discriminating it from custom-house and internal revenue, and making it a fund for the unlimited exercise of legislative discretion. The argument was a startling one, wholly foreign to the nature of our powers, and vesting Congress with the same power over the whole property of the United States, which was claimed for the lands. This was immediately shown by the Sena. tor from Ohio, [Mr. ALLEN,] who pointed to the words of the Constitution, and showed that the word territory was coupled with that of other property, so that, if Congress had unlimited authority over the lands, it also had it over all the other property of the Union. This was a startling view of the new argument, both for the immensity of the property it would cover-the whole, in fact, which the Government owns, or may own-and the arbitrary, despotic nature of the power which it claimed for Congress. I undertake to add nothing to the view which that Senator presented in his luminous reply, but proceed to expose the fallacy of the new argument under a different aspect.

And, first, Mr. President, I wish to remark upon the fallacy of the sense in which a term, vital to

26TH CONG.... 2ND SESS.

the argument, is constantly used here, and elsewhere. It is the term cession, as applied to the acts and deeds by which Virginia, Georgia, and some other States, conveyed their rights in these lands to the General Government. That term is constantly used in the sense of gift, gratuity, dona. tion; and that not in relation to jurisdiction, or a right of purchase from the Indians, but in relation to the soil itself-in relation to the land itselfwhich is supposed thus to have been gratuitously bestowed. This is a mistake-an error-a fallacy —an illusion. The ceding States ceded no land— gave no land-conveyed no land, to the General Government. They ceded nothing but that which they had; and they had nothing in these lands but the right of purchasing them from the Indians, or the right of conquest in the event of hostilities. From the time of William Penn, this is all that the grantees of the crown, the colonies, or the States, have claimed in the Indian land covered by their grants or charters. Each for itself claimed the right of acquisition of that which was within its limits; and this right of acquisition is all that the ceding States could convey, or did convey, to the United States. They conveyed nothing but the right of purchase; and this has been the understanding of all the parties-the States, the Indians, and the Federal Government-from the first day of the cessions to the present hour. Never, in a single instance, has the Federal Government occupied ore foot of this ground until after it was purchased from the Indian tribe which claimed it. Never has she sold an acre until she had first bought it of the Indians; and where they have refused to sell, she has refused to disturb their possession, and either waited their time, and their price, as in the case of the Cherokee lands in the Southern States; or became their agent to sell the whole for their benefit, as in the case of the Chickasaw lands in the State of Mississippi. This is the exact state of all these cessions; so that it is indubitably true that, so far as land is concerned, and that is the only thing which the present question touches, the United Sates is a purchaser from the Indians, and not a donee from the States. She holds under Indian treaties, and not under State cessions. The same with the Florida and Louisiana acquisitions. We acquired from France and Spain precisely what we had acquired from the States-the same, and nothing more nor less. We obtained jurisdiction over the ceded territory, and acquired the right of purchase from the Indians. We have taken possession of no ground, not an acre, in Florida or Louisiana, until purchased from the Indians who claimed it. We have acted by the lands cedel by France and Spain precisely as we have acted by those ceded by the States. We have bought them from their Indian owners, or claiman's, before we touched them. They all come to us, so far as we have acquired them, in the same manner-by Indian treaties, and not by foreign treaties-by purchases from the Indians, and not by cessions from the crowns of France and Spain. Thus, sir, all the lands of the United States are held by the same tenure, and acquired in the same mode. All our proprietary rights are the same; they are all held by purchase, and all paid for by money taken out of the treasury of the Union.

All our acquisitions are purchases, and large is the amount which has been paid for them: to France, fifteen millions of dollars; to Spain, five millions; to the Indians, eighty-five millions; to

Pre-emption Law-Mr. Benton.

some of the States large sums, as to Georgia, to which State the Federal Government paid a great sum, besides extinguishing, for her benefit, at a great cost, the Cherokee title within her limits. Eighty-five millions is the purchase money paid to the Indians alone, besides annuities yet to run, and other indemnities, amounting now to about $775,000 per annum. Four hundred and forty. two millions of acres is the quantity thus purchased from the Indians; eighty-five millions the amount paid to them, besides the running annuities; twenty millions paid to France and Spain, and several millions to Georgia for the right of purchase: in all, above one hundred and ten millions paid for these lands. Now, where did all this money come froin? Sir, it came from the Treasury of the United States, and has not yet been reimbursed to it; for the sales of the lands have not been equal to he cost of their acquisition and management.

Can we distribute custom-house or direct tax revenue? It is admitted that we cannot. The whole argument that we hear, and the bill in question, all admit it. All agree that we cannot. But, behold the wonders of the juggling art! We cannot take the money out of the Treasury and divid it, but we may take the money out of that saine Treasury and convert it into land, and then reconvert the land into money, and then make the division! This is what the new argument of the Senator from Massachusetts amounts to! It is a mere circumvention of the Constitution. It makes mockery and derision of that instrument. It is a esson in legislative alchymy, by which, not base metals are transmuted into gold, but unconstitutional acts are metamorphosed into constitutional

ones.

This is the character and effect of the new argument, and where is the limit to its application-where the limit to the division of money which Congress may make under it? Our public lands are already estimated by the distribution party at one billion two hundred millions of della's. All that may be sold and divided out. We have, besides, some hundred millions of other property-fortsships-foundries-arsenals- navy yards-public buildings of all kinds-this Capitol: all these may be divided out; for they are other properly; and all the other property of the United States is subject to the same power of disposition which applies to the territory. In addition to this we may go on to convert and reconvert, to the end of the chapter. We may buy, and sell, and divide, as long as money, or land, or property of any kind can be found. Such is the end of the Senator's new and amended argument.

We have heard of latitudinarians in religion and in politics. We have heard of dexterous constructionists, who could construe themselves out of any creed, or any fundamental law. We have seen some wide constructions put upon our own Constitution. But who ever heard of the like of this before? Whoever heard before that the Congress of the United States was without a limit, without a restriction, without a guide, upon the exercise of its money powers? that it may, by a juggling trick of its own contrivance, throw off every constitutional restraint upon the power to raise, or to use money-take its own will for its sole guide, and go on to dispose of hundreds of millions, or thousands of millions of dollars, according to its own will and pleasure. Certainly, of all latitudinarian constractions of the Constitution, this is the widest and most dangerous. It is also one of the most flagrantly unfounded and indefensible; so that the Senator from Massachusetts, unfortunate as he was in his scant and stinted constitutional argument of Thursday, was still more so in the new and amended and boundless one of Saturday.

I now come, said Mr. B. to a subject which has become connected with this debate, and which has assamed a form to require a most deliberate consi

Senate.

I

deration. I aliude to the question of a foreiga interference in our late Presidential election. chanced to refer to this interference in a late speech; the Senator from Kentucky [Mr. CRIT ENDEN] denied it, and the Senator from Massachusetts [Mr. WEBSTER] has reiterated the denial. Under these circumstances it becomes my duty to advance, or to recede to sus'ain my assertion, or to retract it; and, as truth and justice will not permit me to do the latter, nothing remains but to go on with the accusation and bring forward the proofs. This I mean to do, and with the gravity and moderation which is due to the occasion. It is not an occasion for invective, for denunciation, for assertion with out evidence; it is not an occasion for passion or personality. It is an cccasion which requires calmness, fairness, considerat.on, and precision. It is a case which requires the proof to follow the charge, and the whole to be conducted with the gravity and equity of a judicial investigation. It concerns foreigners, who are not here to speak for themselves; it concerns the safety and independence of our form of government, which should not be lightly subjected to suspicions which weaken its strength. I know the responsibility of my position. I feel myself to be responsible for what I say-responsible to my own conscience, and to the greatest power of the age-the moral sense of all good men. Under this sense of responsibility I proceed to the discharge of my duty, and will first state the question over again, that Senators may be corrected of errors into which they have fallen, and my own design be made more clear and manifest. I have nothing to do with the loss or gain of the late election. I do not pretend to account here for its result. I do not think the inquiry a fit topic to be introduced into this chamber. It is one of party, and belongs to the forum of the people, and not to the bar of the Senate. I have a higher obj ct in view -one which rises far above party contestsone which rises far above the question of party supremacy-one which goes to the independence and the safety of our form of Government-which concerns the feelings of every patriot, be his place what it may in party politics-and which starts the frightful question whether this Republic, like all free Governments, is to become the prey and spoil of foreign interference, and foreign influence? This is the object in view, and this the question which it raises; a question which hes nothing to do with the loss or gain of the election-which has nothing to do with our party contests-which refers solely to foreigners, and to their conduct in our election to their interference in our election; and this without even suggesting the effect of that interference, and how far it might have influenced the result. I disclaim and repel all this inquiry, and limit myself to the mere question of interference. Have foreigners interfered in our election? That is my question; and not have foreigners governed the election? The offence is in the interference! The outrage to our form of Government-the insult to every American feeling-the attack upon our independence is in the interference itself! in the audacity and criminality of daring to interfere in our election at all, and not in the contingent consequence of more or less effect from that interfence. This is my question. It is one worthy to excle my inquiries-worthy to engage the attention of the Senate-worthy to command the attention of all patriots, be their party politics what they may; and to this question, stripped of all extraneous matter, I now proceed; and shall commence at once with the introduction of proofs

Behold this book, said B. holding up a new and handsome octavo volume. It is fresh from the London press, and speaks the sentiments of the English capitalists in relation to moneyed questions, and political parties, in the United States. It is a work upon the financial position and credit of such of our States as have contracted debts in Edrope; with a survey of their wealth and resources, their ability and disposition to pay their debts, and the dangers to be apprehended from the growth and prevalence of Democratic principles in the United States It was published in London on the 26th Cay of December, 1839, being, by a curious coincidence, the precise time at which the anti-assump. tion resolutions were ubmitted in this chamber.

26TH CONG....2ND SESS.

The name of Alexander Trotter, esq. is placed on the title page, as the author of the work; but it is more the work of a class than of an individual, and evidently speaks the sentimen's of the bankers and capitalists of London. It way be quoted and considered as their work.

The author entitles this work according to his fancy; I give it a different name from that which he has inscribed upon i; and draw my appellation from a similar production in English history, and which must have suggested the idea of the plan and design of this work: I allude to the Dooms Day Book of William the Conqueror, commonly called William, Duke of Normandy. We all know that when this French Duke had conquered England, he caused a survey to be made of the property of the kingdom, the value of all estates to be ascertained, and the whole to be entered up in a book, to which was given the impressive title of Dooms Diy Book. It was a significant and appropriate title; for all the property regestered in it was considered as the spil of conquest-as being brought up to a sort of judgment day, and thenceforth doomed to taxation and confiscation. It was the judgment book of the conqueror against the people whom he had subjugated. It gave him, at a view, the value of his conquest, and the means of making it available for the support of his army and his throne. The volume which I hold in my hand is an imitation of that work, with a change of names and localities. It is the Dooms Day Book, not of an English King, but of English money dealers; not of English, but of American property. It contains the register of the debts of our States held in London, with a view of the wealth and resources of the States which owe them, with many reflections on the circumstances which may either endanger or assure the ultimate payment of these debts. Among those circumstances which go to endanger this ultimate payment, the author relies upon one which surpasses and transcends all the rest. It is that of the growth and prevalence of Democratic principles in America! cracy is the dread and terror of these capitalists who hold the bonds of the States! It is their dread and terror. Democracy-American Democracy— is their fear and horror. But I will not precipitate the narrative, nor jump to the conclusion. The right understanding of the main point which I mean to bring out, requires the character of the whole work to be exhibice, that is political application to our affairs may be seen by all, and its authoritative weight may be iel'. Tais character is well made known in the headings to the fi st chapter of the work; and from these he dings I will read a selection of items which will be sufficient for the purpose which I have in view.

Mr. B. then read:

Demo

"High credit of the Federal Government. Credit of the States not identical with this. Accumulation and distribution of the surplus revenue. Financial difficulties, and postpone in nt of the transfer of the fourth instalment. First National Bank of the United States. Second Bank of the United States. Opposition of the President (Jackson) to the renewal of the charter. Is probable motives. Disastrous consequence of his hostility to the Bank. Effects of the President's interference with the banking system. Facilities afforded by the Bank of the United States interfered with by the withdrawal of the pub. lic deposites. Distribution of the surplus revenue injudiciously effectel. Specie circular. Effects of the two combined. Measures of the Presiden' to procure gold. Disastrous consequences. Failures in New Orleans and New York. Suspension by the banks of specie payments. Impolicy of the gold bill.

Moral

iluence of slavery. Funds for works of internal improvement, and for the establishment of banks, chiefly obtained from loans. Security of the public creditor derived from the application of the funds. Advantage of auxiliary funds. Second sus pension of specie payraents by the banks. Apparent necessity for this course. Dangers to which banks are exposed in the Southern States."

From these headings to the matters contaised in the first chapter, Mr. B. said the Senate could comprehend the character of the work; that it was identical in political sentiment with the anti-Democratic party in this country; following the lead of that party, and borrowing the very topics and language which it used in our party warfare here. It would seem to be an American production, of the Fede ral school, issued from à partisan press of this conniry, instead of being, as it is, a high Tory production from the press of London, and the pen of an Englishman. It is needless to quote from the body of this chapter to show how the subj cts are treated which are named in the headings. That is

Pre-emption Bill-Mr. Benton.

sufficiently manifest from the mere statement of the subject. If read, they would be taken for Federal speeches delivered on this floor. So exactly is this the case, that the manu argument of the Sena or from Massachusetts [Mr. WEBSTER] on Saturday last, in favor of auxiliary supplies from the Federal Government to the States, appeared to me to be borrowed from this American DoomsDay book of the English capitalists, which I hold in my band. The argument of the Senator was, that as the States had surrendered to the Federal Government all the great sources of revenue in giving up to it the public lands and the customhouse duties, therefore, the Federal Government was bound to lend a helping hand to the States. This was the substance of his argument. The same idea is found in this book, published in London twelve months before the gentleman's speech was delivered here, but written in London during the year that the gentleman was in that city. The ideas of the speech and of the book are identical; and I will read from the book, for the benefit of the stenographers, who may not have completed their report, as well as for the information of the Senate, what I find to be written in it under the head of auxiliary funds needed by some of the States. Mr. Bread:

"In the case of many States, auxiliary funds are specially ap propriated to this purpose; in others, the security of the loans are based solely on the general credit of the State. The appropriation of such funds is in almost all cases desirable, as, how. ever great the resources of a State may be, its fiscal means are often extremely limited. his arises, not only from the most productive sources of revenue, such as the proceeds of the sales of the public lands, imposts on commerce, and the revenue of the post oflice having been surrendered to the General Government, and belonging exclusively to it, but also from the anxiety always shown by the people of the United States to control their rulers by making them dependent on their will for the supplies, which they at all times very sparingly allot to them. This Democra tic feeling is carried so far, even in the wealthiest States, that the treasuries are constantly exposed to become bare; and the accounts of almost all are complicated by the borrowing and repaying of temporary loans made by moneyed institutions of the State to provide for unexpected emergencies, or even for the or dinary demands of the public administration."

Having thus shown the political character of the work, its identity with Federalism, and its consequent conclusive authority with that party, Mr. B. proceeded to show the manner in which the author had executed his work in stating the debts, and showing the wealth and resources of the indebted States. For this purpose, he had taken the States in detail, one by one, and had examined the condition of each one under the same heads. Mr. B. would not follow the author over each State, but would give an idea of the whole, by showing the method of treating one; and, for his exemplar, would take the State of Kentucky-a State on which the author seemed to have bestowed peculiar attention. Mr. B. then read from the book:

"KENTUCKY-Amount of debt and liabilities. Form of so.curity, when and where redeemable. Rates of interest, and when and where payable. Amount at present chargeable on the Treasury. Bank of Kentucky. Northern Bauk of Kentucky. Condition of the banks at different epochs. Nature of internal improvements. Condition of the Treasury. Commerce of the State. Amount of taxable property."

These heads are filled up by details, said Mr. B. which it is not my design to pursue. I only propose to show the manner in which the affairs of the States are treated, for the purpose of arriving at results. The author of the work finds Kentucky to be a rich State, and rapidly increasing in wealth. He is forcibly struck with this increase, and states it with clearness and precision. He says:

"The increase in the general wealth of the State may be judged of by the progressive increase in the returns made to the audi tor of the taxable property in the State. This, which in 1830 amounted to $103,543,633, by the last valuation amounted to $224.053,041."

This is the result of the survey of the debts, resoures, and wealth of Kentucky; and here the mind is naturally turned to make a remark, pertinent to the occasion, and entitled to the careful remembrance of every Democrat in America. It grows out of the last quoted paragraph of this London book-the paragraph in which the writer shows the wealth of Kentucky to have increased one hundred and twenty-one millions of dollars in the eight preceding years. This is an amazing increase, more than doubling the value of the State, and naturally turns the inquiry to the peried of time at which it took place. That period was from 1831 to 1839; that is to say, it was during the Democratic administrations of General Jackson

Senate.

and Mr. Van Buren, covering a part but the whole of neither. It was during these Administrations, and during a period of time when the panic and distress orators were filling the land with cries and lamentations, and terrifying all imaginations with pictures of misery, poverty, and desolation. It was during the time that these orators daily proclaimed the total ruin of the country, and daily asserted there could be no prosperity without a change of men and measures-without the overthrow of the Democracy, and the re-establishment of a National Bank. It was during the time when there was "no King in Israel;" when the King Bank had expired under the veto, and the removal of the deposites; and when there was no "Regulator" to take care of the property and politics of the people. It was during the time of the gold bill, the specie circular, the war upon credit, the Maysville road velo, the pocketing of the land distribution bill, and so many other measures, each of which, according to the doleful lamentations of the distress orators, was sufficient to ruin and destroy the country. It was during this period of Democratic misrule and misgovernment, and in the midst of this national destruction and misery, according to these orators, that the autentic valua tions of the Kentucky property show the wealth of that State to have advanced from 103 to 124000,000 of dollars! to have more than doubled! to have gone 21,000,000 further in these eight years, than in the whole previous half century of her existence, during twenty years of which she had a double portion-two branches-Benjamin's shareof that national blessing, the Bank of the United States! The authentic record of the tax list shows this result. The record shows it; and in showing it, what a monument of honor and glory is raised to Jackson and Democracy! What a lesson of chastisement and rebuke is read to their assailants!

Mr. B. said it had been vauntingly declared on on this floor, during the extra session of 1837, by a Senator from South Carolina, who sits over the way [Mr. PRESTON.] that the appointment of Mr. Biddie to be Secretary of the Treasury, would add one hundred millions of dollars to the value of the property of the people of the United States. This was said in reproach of the ruinous measures, as they were called, of Jackson and Van Buren, and to show the necessity of changing men and measures. It was spoken, as the event proves, without a reference to the valuation tables of taxable property, and has not been repeated since. It would doubt. less not be said now. It was considered a hyperbolical compliment to Mr. Biddle at the time, and a couple of short years years proved it to be so. It has been seen to have been a most unmerited compliment to him; it has turned into little less than a sarcasm upon him. But, while shooting so far beyond the desert of him it was intended to honor, how infinitely it falls short of the merit of him it was intended to reproach! General Jackson's administration has actually increased the value of the property of the people-not one hundred-but more than a thousand millions of dollars. In Kentucky alone it was one hundred and twenty-one millions; in Massachusetts it was ninety-nine millions. Here are two hundred and tweaty millions of increase in two States alone, and of the middle class-States which, in wealth and population, rank far below several others. Pursue the inquiry-apply it to the whole Unicoextend it over the twelve years of Democratic sway-over the whole period of General Jackson's and Mr. Van Buren's administrations-and then see the result. Far above one thousand millions of dollars-much nearer to two thousand, than one thousand millions-will be the grand aggregate of the united increases. Instead of one hundred millions for a total increase, near one hundred and fifty millions of annual increase, for twelve successive years, will turn out to be the historical re cord of the case. Such is the answer which an thentic history is giving to Federal lamentations over ruin and misrale. Such is the gorgeous pic ture of national prosperity which crowns and adorns the Democratic Administrations. Let the friends of Democracy every where verify and com plete it. Let them apply to the fiscal record of every State and Territory-take the comparative