Latest / State of the Union Addresses 1829-1836 / 017 - Andrew Jackson December 5 1836 part 1
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- 0:01Speaker 1: Section seventeen of State of the Union Addresses eighteen twenty
- 0:06Speaker 1: nine to eighteen thirty six. This is a LibriVox recording.
- 0:11Speaker 1: All LibriVox recordings are in the public domain. For more
- 0:14Speaker 1: information or to volunteer, please visit LibriVox dot org. Andrew Jackson,
- 0:20Speaker 1: December fifth, eighteen thirty six, Part one, Fellow citizens of
- 0:27Speaker 1: the Senate and of the House of Representatives, Addressing to
- 0:31Speaker 1: you the last annual message I shall ever present to
- 0:35Speaker 1: the Congress of the United States. It is a source
- 0:38Speaker 1: of the most heartfelt satisfaction to be able to congratulate
- 0:43Speaker 1: you on the high state of prosperity which our beloved
- 0:48Speaker 1: country has attained, with no causes at home or abroad.
- 0:54Speaker 1: To lessen the confidence with which we look to the
- 0:57Speaker 1: future for continuing proofs of the capacity of our free
- 1:02Speaker 1: institutions to produce all the fruits of good government. The
- 1:07Speaker 1: general condition of our affairs may well excite our national pride.
- 1:14Speaker 1: I cannot avoid congratulating you and my country, particularly on
- 1:19Speaker 1: the success of the efforts made during my administration by
- 1:24Speaker 1: the Executive and Legislature in conformity with the sincere, constant,
- 1:31Speaker 1: and earnest desire of the people to maintain peace and
- 1:36Speaker 1: establish cordial relations with all foreign powers. Our gratitude is
- 1:41Speaker 1: due to the supreme ruler of the universe, and I
- 1:45Speaker 1: invite you to unite with me in offering to him
- 1:50Speaker 1: fervent supplications that his providential care may ever be extended
- 1:57Speaker 1: to those who follow us, enabling them to avoid the
- 2:01Speaker 1: dangers and the horrors of war, consistently with a just
- 2:06Speaker 1: and indispensable regard to the rights and honor of our country.
- 2:12Speaker 1: But although the present state of our foreign affairs, standing
- 2:17Speaker 1: without important change, as they did when you separated in
- 2:22Speaker 1: July last, is flattering in the extreme, I regret to
- 2:26Speaker 1: say that many questions of an interesting character at issue
- 2:31Speaker 1: with other powers are yet unadjusted. Amongst the most prominent
- 2:37Speaker 1: of these is that of our northeast boundary. With an
- 2:42Speaker 1: undiminished confidence in the sincere desire of His Britannic Majesty's
- 2:47Speaker 1: government to adjust that question, I am not yet in
- 2:52Speaker 1: possession of the precise grounds upon which it proposes a
- 2:56Speaker 1: satisfactory adjustment. In France, our diplomatic relations have been resumed,
- 3:04Speaker 1: and under circumstances which attest the disposition of both governments
- 3:09Speaker 1: to preserve a mutually beneficial intercourse and foster those amicable
- 3:14Speaker 1: feelings which are so strongly required by the true interests
- 3:19Speaker 1: of the two countries. With Russia, Austria, Prussia, Naples, Sweden
- 3:27Speaker 1: and Denmark, the best understanding exists, and our commercial intercourse
- 3:33Speaker 1: is gradually expanding itself with them. It is encouraged in
- 3:38Speaker 1: all these countries except Naples by their mutually advantageous and
- 3:44Speaker 1: liberal treaty stipulations with Us. The claims of our citizens
- 3:49Speaker 1: on Portugal are admitted to be just, but provision for
- 3:54Speaker 1: the payment of them has been unfortunately delayed by frequent
- 3:59Speaker 1: political tis changes in that kingdom. The blessings of peace
- 4:05Speaker 1: have not been secured by Spain. Our connections with that
- 4:09Speaker 1: country are on the best footing, with the exception of
- 4:14Speaker 1: the burdens still imposed upon our commerce with her possessions
- 4:18Speaker 1: out of Europe. The claims of American citizens for losses
- 4:24Speaker 1: sustained at the bombardment of Antwerp have been presented to
- 4:29Speaker 1: the governments of Holland and Belgium, and will be pressed
- 4:33Speaker 1: in due season to settlement with Brazil and all our
- 4:39Speaker 1: neighbors of this continent. We continue to maintain relations of
- 4:44Speaker 1: amity and concord extending our commerce with them, as far
- 4:49Speaker 1: as the resources of the people and the policy of
- 4:52Speaker 1: their governments will permit. The just and long standing claims
- 4:58Speaker 1: of our citizens upon some of them are yet sources
- 5:02Speaker 1: of dissatisfaction and complaint. No danger is apprehended, however, that
- 5:09Speaker 1: they will not be peacefully, although tardily, acknowledged and paid
- 5:13Speaker 1: by all, unless the irritating effect of her struggle with
- 5:18Speaker 1: Texas should unfortunately make our immediate neighbor Mexico an exception.
- 5:25Speaker 1: It is already known to you by the correspondence between
- 5:29Speaker 1: the two governments communicated at your last session, that our
- 5:33Speaker 1: conduct in relation to that struggle is regulated by the
- 5:37Speaker 1: same principles that governed us in the dispute between Spain
- 5:42Speaker 1: and Mexico. Herself and I trust that it will be
- 5:46Speaker 1: found on the most severe scrutiny that our acts have
- 5:50Speaker 1: strictly corresponded with our professions. That the inhabitants of the
- 5:55Speaker 1: United States should feel strong prepossessions for the one part
- 6:00Speaker 1: party is not surprising. But this circumstance should of itself
- 6:05Speaker 1: teach us great caution, lest it lead us into the
- 6:09Speaker 1: great error of suffering. Public policy to be regulated by
- 6:14Speaker 1: partiality or prejudice, And there are considerations connected with the
- 6:20Speaker 1: possible result of this contest between the two parties of
- 6:24Speaker 1: so much delicacy and importance to the United States that
- 6:28Speaker 1: our character requires that we should neither anticipate events nor
- 6:34Speaker 1: attempt to control them. The known desire of the Texans
- 6:40Speaker 1: to become a part of our system, although its gratification
- 6:44Speaker 1: depends upon the reconcilement of various and conflicting interests, necessarily
- 6:51Speaker 1: a work of time and uncertain in itself, is calculated
- 6:56Speaker 1: to expose our conduct to misconstruction in the eyes of
- 7:01Speaker 1: the world. There are already those who indifferent to principle themselves,
- 7:07Speaker 1: and prone to suspect the want of it in others,
- 7:12Speaker 1: charge us with ambitious designs and insidious policy. You will
- 7:19Speaker 1: perceive by the accompanying documents that the extraordinary mission from
- 7:24Speaker 1: Mexico has been terminated on the sole ground that the
- 7:27Speaker 1: obligations of this government to itself and to Mexico under
- 7:32Speaker 1: treaty stipulations have compelled me to trust a discretionary authority
- 7:38Speaker 1: to a high officer of our army to advance into
- 7:43Speaker 1: territory claimed as part of Texas, if necessary to protect
- 7:47Speaker 1: our own or the neighboring frontier from Indian depredation. In
- 7:53Speaker 1: the opinion of the Mexican functionary who has just left us,
- 7:57Speaker 1: the honor of his countrary will be wounded by American
- 8:01Speaker 1: soldiers entering with the most amicable avowed purposes upon ground
- 8:07Speaker 1: from which the followers of his government have been expelled,
- 8:11Speaker 1: and over which there is at present no certainty of
- 8:15Speaker 1: a serious effort on its part to re establish its dominion.
- 8:22Speaker 1: The departure of this minister was the more singular, as
- 8:26Speaker 1: he was apprised that the sufficiency of the causes assigned
- 8:30Speaker 1: for the advance of our troops by the commanding General
- 8:34Speaker 1: had been seriously doubted by me, And there was every
- 8:38Speaker 1: reason to suppose that the troops of the United States,
- 8:42Speaker 1: their commander, having had time to ascertain the truth or
- 8:45Speaker 1: falsehood of the information upon which they had marched to Nagadoches,
- 8:51Speaker 1: would be either there in perfect accordance with the principles
- 8:56Speaker 1: admitted to be just in his conference with the Secretary
- 8:59Speaker 1: of State by the Mexican minister himself, or were already
- 9:04Speaker 1: withdrawn in consequence of the impressive warnings their commanding officer
- 9:09Speaker 1: had received from the Department of War. It is hoped
- 9:13Speaker 1: and believed that his government will take a more dispassionate
- 9:18Speaker 1: and just view of this subject, and not be disposed
- 9:22Speaker 1: to construe a measure of justifiable precaution made necessary by
- 9:28Speaker 1: its known inability in execution of the stipulations of our
- 9:32Speaker 1: treaty to act upon the frontier into an encroachment upon
- 9:37Speaker 1: its rights or a stain upon its honour. In the meantime,
- 9:42Speaker 1: the ancient complaints of injustice made on behalf of our
- 9:47Speaker 1: citizens are disregarded, and new causes of dissatisfaction have arisen,
- 9:53Speaker 1: some of them of a character requiring prompt remonstrance and
- 9:59Speaker 1: ample and immediate redress. I trust, however, by tempering firmness
- 10:05Speaker 1: with courtesy, and acting with great forbearance upon every incident
- 10:10Speaker 1: that has occurred or that may happen, to do and
- 10:14Speaker 1: to obtain justice, and thus avoid the necessity of again
- 10:19Speaker 1: bringing this subject to the view of Congress. It is
- 10:23Speaker 1: my duty to remind you that no provision has been
- 10:27Speaker 1: made to execute our treaty with Mexico for tracing the
- 10:31Speaker 1: boundary line between the two countries. Whatever may be the
- 10:36Speaker 1: prospect of Mexico's being soon able to execute the treaty
- 10:40Speaker 1: on its part. It is proper that we should be
- 10:43Speaker 1: in anticipation, prepared at all times to perform our obligations,
- 10:50Speaker 1: without regard to the probable condition of those with whom
- 10:54Speaker 1: we have contracted them. The result of the confidential inquiries
- 10:59Speaker 1: made into the condition and prospects of the newly declared
- 11:04Speaker 1: Texan government will be communicated to you in the course
- 11:07Speaker 1: of the session. Commercial treaties, promising great advantages to our
- 11:13Speaker 1: enterprising merchants and navigators have been formed with the distant
- 11:18Speaker 1: governments of Musket and Siam. The ratifications have been exchanged,
- 11:24Speaker 1: but have not reached the Department of State. Copies of
- 11:28Speaker 1: the treaties will be transmitted to you if received before,
- 11:32Speaker 1: or published if arriving after the close of the present
- 11:36Speaker 1: session of Congress. Nothing has occurred to interrupt the good
- 11:42Speaker 1: understanding that has long existed with the barbary powers, nor
- 11:47Speaker 1: to check the good will which is gradually growing up
- 11:50Speaker 1: from our intercourse with the dominions of the government of
- 11:55Speaker 1: growing of the distinguished Chief of the Ottoman Empire. Information
- 12:00Speaker 1: has been received at the Department of State that a
- 12:04Speaker 1: treaty with the Emperor of Morocco has just been negotiated,
- 12:09Speaker 1: which I hope will be received in time to be
- 12:12Speaker 1: laid before the Senate previous to the close of the session.
- 12:17Speaker 1: You will perceive from the report of the Secretary of
- 12:20Speaker 1: the Treasury that the financial means of the country continue
- 12:25Speaker 1: to keep pace with its improvement in all other respects.
- 12:30Speaker 1: The receipts into the Treasury during the present year will
- 12:33Speaker 1: amount to about forty seven million, six hundred and ninety
- 12:38Speaker 1: one thousand, eight hundred and ninety eight dollars, those from
- 12:42Speaker 1: customs being estimated at twenty two million, five hundred and
- 12:47Speaker 1: twenty three thousand, one hundred and fifty one dollars, those
- 12:51Speaker 1: from lands at about twenty four million dollars, and the
- 12:55Speaker 1: residue from miscellaneous sources. Spenditures for all objects during the
- 13:02Speaker 1: year are estimated not to exceed thirty two million dollars,
- 13:07Speaker 1: which will leave a balance in the Treasury for public
- 13:10Speaker 1: purposes on the first day of January next of about
- 13:14Speaker 1: forty one million, seven hundred and twenty three thousand, nine
- 13:19Speaker 1: hundred and fifty nine dollars. The sum, with the exception
- 13:23Speaker 1: of five million dollars, will be transferred to the several
- 13:27Speaker 1: states in accordance with the provisions of the Act regulating
- 13:32Speaker 1: the deposits of the public money. The unexpected balances of
- 13:37Speaker 1: appropriation on the first day of January next are estimated
- 13:42Speaker 1: at fourteen million, six hundred and thirty six thousand and
- 13:46Speaker 1: sixty two dollars, exceeding by nine million, six hundred and
- 13:51Speaker 1: thirty six thousand, sixty two dollars the amount which will
- 13:56Speaker 1: be left in the deposit banks subject to the draft
- 14:00Speaker 1: after the treasurer of the United States, after the contemplated
- 14:03Speaker 1: transfers to the several States are made. If therefore, the
- 14:08Speaker 1: future receipts should not be sufficient to meet these outstanding
- 14:13Speaker 1: and future appropriations, there may be soon a necessity to
- 14:18Speaker 1: use a portion of the funds deposited with the states.
- 14:24Speaker 1: The consequences apprehended when the Deposit Act of the last
- 14:29Speaker 1: Session received a reluctant approval have been measurably realized. Though
- 14:35Speaker 1: an act merely for the deposit of the surplus monies
- 14:38Speaker 1: of the United States in the state treasuries for safe
- 14:42Speaker 1: keeping until they may be wanted for the service of
- 14:46Speaker 1: the general government, it has been extensively spoken of as
- 14:50Speaker 1: an act to give the money to the several States,
- 14:54Speaker 1: and they have been advised to use it as a gift,
- 14:58Speaker 1: without regard to them means of refunding it. When called for.
- 15:03Speaker 1: Such a suggestion has doubtless been made without a proper
- 15:07Speaker 1: attention to the various principles and interests which are affected
- 15:13Speaker 1: by it. It is manifest that the law itself cannot
- 15:17Speaker 1: sanction such a suggestion, and that, as it now stands,
- 15:22Speaker 1: the States have no more authority to receive and use
- 15:25Speaker 1: the deposits without intending to return them, than any deposit
- 15:30Speaker 1: bank or any individual temporarily charged with the safe keeping
- 15:35Speaker 1: or application of the public money, would now have for
- 15:38Speaker 1: converting the same to their private use without the consent
- 15:42Speaker 1: and against the will of the government. But independently of
- 15:46Speaker 1: the violation of public faith and moral obligation which are
- 15:51Speaker 1: involved in this suggestion, when examined in reference to the
- 15:55Speaker 1: terms of the present Deposit Act, it is believed that
- 16:00Speaker 1: the considerations which should govern the future legislation of Congress
- 16:05Speaker 1: on this subject will be equally conclusive against the adoption
- 16:09Speaker 1: of any measure recognizing the principles on which the suggestion
- 16:14Speaker 1: has been made. Considering the intimate connection of the subject
- 16:19Speaker 1: with the financial interests of the country and its great
- 16:23Speaker 1: importance in whatever aspect it can be viewed. I have
- 16:28Speaker 1: bestowed upon it the most anxious reflection, and feel it
- 16:32Speaker 1: to be my duty to state to Congress such thoughts
- 16:35Speaker 1: as have occurred to me, to aid their deliberation in
- 16:39Speaker 1: treating it in the manner best calculated to conduce to
- 16:43Speaker 1: the common good. The experience of other nations admonished us
- 16:49Speaker 1: to hasten the extinguishment of the public debt. But it
- 16:53Speaker 1: will be in vain that we have congratulated each other
- 16:57Speaker 1: upon the disappearance of this evil if we do not
- 17:01Speaker 1: guard against the equally great one of promoting the unnecessary
- 17:06Speaker 1: accumulation of public revenue. No political maxim is better established
- 17:12Speaker 1: than that which tells us that an improvident expenditure of
- 17:16Speaker 1: money is the parent of profligacy, and that no people
- 17:20Speaker 1: can hope to perpetuate their liberties who long acquiesce in
- 17:25Speaker 1: a policy which taxes them for objects not necessary to
- 17:30Speaker 1: the legitimate and real wants of their government. Flattering as
- 17:34Speaker 1: is the condition of our country at the present period,
- 17:38Speaker 1: because of its unexampled advance in all the steps of
- 17:42Speaker 1: social and political improvement, it cannot be disguised that there
- 17:47Speaker 1: is a lurking danger already apparent in the neglect of
- 17:51Speaker 1: this warning truth, and that the time has arrived when
- 17:56Speaker 1: the representatives of the people should be employed in rising
- 18:00Speaker 1: some more appropriate remedy than now exists to avert it.
- 18:06Speaker 1: Under our present revenue system, there is every probability that
- 18:11Speaker 1: there will continue to be a surplus beyond the wants
- 18:14Speaker 1: of the government, and it has become our duty to
- 18:17Speaker 1: decide whether such a result be consistent with the true
- 18:22Speaker 1: objects of our government. Should a surplus be permitted to
- 18:26Speaker 1: accumulate beyond the appropriations, it must be retained in the
- 18:31Speaker 1: treasury as it now is, or distributed among the people
- 18:36Speaker 1: or the states. To retain it in the treasury unemployed
- 18:41Speaker 1: in any way is impracticable. It is, besides, against the
- 18:47Speaker 1: genius of our free institutions. To lock up involves the
- 18:50Speaker 1: treasure of the nation. To take from the people the
- 18:54Speaker 1: right of bearing arms and put their weapons of defense
- 18:58Speaker 1: in the hands of a standing army would be scarcely
- 19:01Speaker 1: more dangerous to their liberties than to permit the government
- 19:04Speaker 1: to accumulate immense amount of treasure beyond the supplies necessary
- 19:10Speaker 1: to its legitimate wants. Such a treasure would doubtless be
- 19:15Speaker 1: employed at some time, as it has been in other
- 19:18Speaker 1: countries when opportunity tempted. Ambition to collect it merely for
- 19:25Speaker 1: distribution to the states would seem to be highly impolitic,
- 19:30Speaker 1: if not as dangerous as the proposition to retain it
- 19:33Speaker 1: in the treasury. The shortest reflection must satisfy everyone that
- 19:39Speaker 1: to require the people to pay taxes to the government
- 19:43Speaker 1: merely that they may be paid back again is sporting
- 19:47Speaker 1: with the substantial interests of the country, and no system
- 19:51Speaker 1: which produces such a result can be expected to receive
- 19:54Speaker 1: the public countenance. Nothing could be gained by it, even
- 20:01Speaker 1: if each individual who contributed a portion of the tax
- 20:04Speaker 1: could receive back promptly the same portion. But it is
- 20:09Speaker 1: apparent that no system of the kind can ever be
- 20:12Speaker 1: enforced which will not absorb a considerable portion of the
- 20:16Speaker 1: money to be distributed in salaries and commissions to the
- 20:20Speaker 1: agents employed in the process, and in the various losses
- 20:24Speaker 1: and deprecations which arise from other causes. And the practical
- 20:28Speaker 1: effect of such an attempt must, ever, be to burden
- 20:31Speaker 1: the people with taxes, not for purposes beneficial to them,
- 20:36Speaker 1: but to swell the profits of deposit banks and support
- 20:39Speaker 1: a band of useless public officers. A distribution to the
- 20:45Speaker 1: people is impracticable and unjust. In other respects, it would
- 20:51Speaker 1: be taking one man's property and giving it to another.
- 20:55Speaker 1: Such would be the unavoidable result of a rule of equality,
- 21:00Speaker 1: and none other is spoken of or would be likely
- 21:03Speaker 1: to be adopted. Inasmuch as there is no mode by
- 21:06Speaker 1: which the amount of the individual contributions of our citizens
- 21:10Speaker 1: to the public revenue can be ascertained, we know that
- 21:14Speaker 1: they contribute unequally, and a rule therefore that would distribute
- 21:20Speaker 1: to them equally would be liable to all the objections
- 21:25Speaker 1: which apply to the principle of an equal division of property.
- 21:29Speaker 1: To make the general Government the instrument of carrying this
- 21:33Speaker 1: odious principle into effect would be at once to destroy
- 21:37Speaker 1: the means of its usefulness and change the character designed
- 21:41Speaker 1: for it by the framers of the Constitution. But the
- 21:45Speaker 1: more extended and injurious consequences likely to result from a
- 21:50Speaker 1: policy which would collect a surplus revenue for the purpose
- 21:54Speaker 1: of distributing it may be forcibly illustrated by an examination
- 21:59Speaker 1: of the effects already produced by the present Deposit Act.
- 22:05Speaker 1: This Act, although certainly designed to secure. The safe keeping
- 22:09Speaker 1: of the public revenue is not entirely free in its
- 22:14Speaker 1: tendencies from any of the objections which apply to this
- 22:18Speaker 1: principle of distribution. The government had, without necessity received from
- 22:23Speaker 1: the people a large surplus, which, instead of being employed
- 22:28Speaker 1: as heretofore and returned to them by means of the
- 22:31Speaker 1: public expenditure, was deposited with sundry banks. The banks proceeded
- 22:39Speaker 1: to make loans upon this surplus, and thus converted it
- 22:43Speaker 1: into banking capital. And in this manner it has tended
- 22:47Speaker 1: to multiply bank charters, and has had a great agency
- 22:52Speaker 1: in producing the spirit of wild speculation. The possession and
- 22:57Speaker 1: use of the property out of which this surplus was
- 23:00Speaker 1: created belonged to the people, but the government has transferred
- 23:05Speaker 1: its possession to incorporated banks, whose interest and effort is
- 23:10Speaker 1: to make large profits out of its use. This process
- 23:15Speaker 1: need only be stated to show its injustice and bad policy.
- 23:20Speaker 1: And the same observations applied to the influence which is
- 23:24Speaker 1: produced by the steps necessary to collect, as well as
- 23:28Speaker 1: to distribute such a revenue. About three fifths of all
- 23:33Speaker 1: the duties on imports are paid in the City of
- 23:36Speaker 1: New York, but it is obvious that the means to
- 23:38Speaker 1: pay those duties are drawn from every quarter of the union.
- 23:43Speaker 1: Every citizen in every state who purchases and consumes an
- 23:47Speaker 1: article which has paid a duty at that port contributes
- 23:51Speaker 1: to the accumulating mass. The surplus collected there must therefore
- 23:56Speaker 1: be made up of money or property withdrawn from other
- 24:00Speaker 1: points and other states. Thus, the wealth and business of
- 24:05Speaker 1: every region from which these surplus funds proceed must be
- 24:10Speaker 1: to some extent injured, while that of the place where
- 24:14Speaker 1: the funds are concentrated and are employed in banking are
- 24:19Speaker 1: proportionably extended. But both in the making the transfer of
- 24:24Speaker 1: the funds, which are first necessary to pay the duties
- 24:27Speaker 1: and collect the surplus, and in making the retransfer, which
- 24:31Speaker 1: becomes necessary when the time arrives for the distribution of
- 24:35Speaker 1: that surplus. There is a considerable period when the funds
- 24:40Speaker 1: cannot be brought into use, and it is manifest that,
- 24:44Speaker 1: besides the loss inevitable from such an operation, its tendency
- 24:49Speaker 1: is to produce fluctuations in the business of the country,
- 24:53Speaker 1: which are always productive of speculation and detrimental to the
- 24:58Speaker 1: interests of regular trade. Argument can scarcely be necessary to
- 25:04Speaker 1: show that a measure of this character ought not to
- 25:08Speaker 1: receive further legislative encouragement. By examining the practical operation of
- 25:16Speaker 1: the ration for distribution adopted in the Deposit Bill of
- 25:20Speaker 1: the last session, we shall discover other features that appear
- 25:25Speaker 1: equally objectionable. Let it be assumed, for the sake of argument,
- 25:30Speaker 1: that the surplus moneys to be deposited with the States
- 25:34Speaker 1: have been collected and belong to them in the ration
- 25:38Speaker 1: of their federal representative population, an assumption founded upon the
- 25:43Speaker 1: fact that any deficiencies in our future revenue from imposts
- 25:47Speaker 1: and public lands must be made up by direct taxes
- 25:51Speaker 1: collected from the states. In that ration. It is proposed
- 25:55Speaker 1: to distribute the surplus, say thirty million dollars, not according
- 26:00Speaker 1: to the ration in which it has been collected and
- 26:03Speaker 1: belongs to the people of the States, but in that
- 26:06Speaker 1: of their votes in the colleges of electors of President
- 26:09Speaker 1: and vice president. The effect of a distribution upon that
- 26:13Speaker 1: ration is shown by the ennext table marked A. By
- 26:18Speaker 1: an examination of that table, it will be perceived that
- 26:22Speaker 1: in the distribution of a surplus of thirty million dollars
- 26:26Speaker 1: upon that basis, there is a great departure from the
- 26:29Speaker 1: principle which regards representation as the true measure of taxation.
- 26:35Speaker 1: And it will be found that the tendency of that
- 26:38Speaker 1: departure will be to increase whatever inequalities have been supposed
- 26:43Speaker 1: to attend the operation of our federal system in respect
- 26:48Speaker 1: to its bearings upon the different interests of the Union.
- 26:52Speaker 1: In making the basis of representation the basis of taxation,
- 26:56Speaker 1: the framers of the Constitution intended to equalize the burdens
- 27:00Speaker 1: which are necessary to support the government, and the adoption
- 27:04Speaker 1: of that ratio. While it accomplished this object, was also
- 27:09Speaker 1: the means of adjusting other great topics arising out of
- 27:13Speaker 1: the conflicting views respecting the political equality of the various
- 27:18Speaker 1: members of the Confederacy. Whatever therefore disturbs the liberal spirit
- 27:24Speaker 1: of the compromises, which established a rule of taxation so
- 27:28Speaker 1: just and equitable, and which experience has proved to be
- 27:32Speaker 1: so well adapted to the genius and habits of our people,
- 27:36Speaker 1: should be received with the greatest caution and distrust. A
- 27:41Speaker 1: bare inspection in the ennexed table of the differences produced
- 27:46Speaker 1: by the ration used in the Deposit Act compared with
- 27:50Speaker 1: the results of a distribution according to the ration of
- 27:53Speaker 1: direct taxation must satisfy every unprejudiced mind that the former
- 28:00Speaker 1: ration contravenes the spirit of the Constitution and produces a
- 28:04Speaker 1: degree of injustice in the operations of the federal government,
- 28:09Speaker 1: which would be fatal to the hope of perpetuating it
- 28:15Speaker 1: by the ration of direct taxation. For example, the state
- 28:19Speaker 1: of Delaware, in the collection of thirty million dollars of revenue,
- 28:23Speaker 1: would pay into the treasury one hundred and eighty eight thousand,
- 28:28Speaker 1: seven hundred and sixteen dollars, and in a distribution of
- 28:31Speaker 1: thirty million dollars, she would receive back from the government
- 28:35Speaker 1: according to the ration of the deposit bill, the sum
- 28:38Speaker 1: of three hundred and six thousand, one hundred and twenty
- 28:42Speaker 1: two dollars, and similar results would follow the comparison between
- 28:46Speaker 1: the small and the large states throughout the Union, thus
- 28:49Speaker 1: realizing to the small states and advantage which would be
- 28:53Speaker 1: doubtless as unacceptable to them as a motive for incorporating
- 28:59Speaker 1: the principle inn as any system which would produce it,
- 29:02Speaker 1: as it would be inconsistent with the rights and expectations
- 29:06Speaker 1: of the large states. It was certainly the intention of
- 29:09Speaker 1: that provision of the Constitution which declares that all duties, imposts,
- 29:14Speaker 1: and excises shall be uniformed throughout the United States, to
- 29:20Speaker 1: make the burdens of taxation fall equally upon the people
- 29:23Speaker 1: in whatever state of the Union they may reside. But
- 29:27Speaker 1: what would be the value of such a uniform rule
- 29:30Speaker 1: if the monies raised by it could be immediately returned
- 29:34Speaker 1: by a different one, which will give to the people
- 29:37Speaker 1: of some states much more and to those of others
- 29:40Speaker 1: much less than their fair proportions. Were the federal government
- 29:45Speaker 1: to exempt, in express terms, the imports, products and manufacturers
- 29:51Speaker 1: of some portions of the country from all duties, while
- 29:54Speaker 1: it imposed heavy ones on others, the injustice could not
- 29:59Speaker 1: be greater. It would be easy to show how, by
- 30:02Speaker 1: the operation of such a principle, the large states of
- 30:06Speaker 1: the Union would not only have to contribute their just
- 30:10Speaker 1: share towards the support of the federal government, but also
- 30:14Speaker 1: have to bear in some degree the taxes necessary to
- 30:19Speaker 1: support the governments of their smaller sisters. But it is
- 30:23Speaker 1: deemed unnecessary to state the details where the general principle
- 30:27Speaker 1: is so obvious. A system liable to such objections can
- 30:33Speaker 1: never be supposed to have been sanctioned by the framers
- 30:37Speaker 1: of the Constitution when they conferred on Congress the taxing power,
- 30:42Speaker 1: And I feel persuaded that a mature examination of the
- 30:46Speaker 1: subject will satisfy every one that there are insurmountable difficulties
- 30:52Speaker 1: in the operation of any plan which can be devised
- 30:56Speaker 1: of collecting revenue for the purpose of distributing it. Congress
- 31:00Speaker 1: is only authorized to levy taxes to pay the debts
- 31:05Speaker 1: and provide for the common defense and general welfare of
- 31:09Speaker 1: the United States. There is no such provision as would
- 31:13Speaker 1: authorize Congress to collect together the property of the country
- 31:19Speaker 1: under the name of revenue, for the purpose of dividing
- 31:22Speaker 1: it equally or unequally among the states or the people. Indeed,
- 31:28Speaker 1: it is not probable that such an idea ever occurred
- 31:31Speaker 1: to the States when they adopted the Constitution. But however,
- 31:36Speaker 1: this may be the only safe rule for us in
- 31:39Speaker 1: interpreting the powers granted to the federal government is to
- 31:43Speaker 1: regard the absence of express authority to touch a subject
- 31:48Speaker 1: so important and delegate as this as equivalent to a prohibition,
- 31:54Speaker 1: even if our powers were less doubtful in this respect.
- 31:58Speaker 1: As the Constitution now stands, there are considerations afforded by
- 32:03Speaker 1: recent experience which would seem to make it our duty
- 32:07Speaker 1: to avoid a resort to such a system. All will
- 32:12Speaker 1: admit that the simplicity and economy of the state governments
- 32:17Speaker 1: mainly depend on the fact that money has to be
- 32:21Speaker 1: supplied to support them by the same men or their
- 32:24Speaker 1: agents who voted away in appropriations. Hence, when there are
- 32:30Speaker 1: extravagant and wasteful appropriations, there must be a corresponding increase
- 32:35Speaker 1: of taxes, and the people, becoming awakened, will necessarily scrutinize
- 32:42Speaker 1: the character of measures which thus increase their burdens. By
- 32:47Speaker 1: the watchful eye of self interest, the agents of the
- 32:51Speaker 1: people and the state governments are repressed and kept within
- 32:55Speaker 1: the limits of a just economy. But if the necessity
- 32:59Speaker 1: of life levying the taxes be taken from those who
- 33:02Speaker 1: make the appropriations and thrown upon a more distant and
- 33:07Speaker 1: less responsible set of public agents, who have power to
- 33:11Speaker 1: approach the people by an indirect and stealthy taxation, there
- 33:16Speaker 1: is reason to fear that prodigality will soon supersede those
- 33:21Speaker 1: characteristics which have thus far made us look with so
- 33:25Speaker 1: much pride and confidence to the state governments as the
- 33:29Speaker 1: mainstay of our union and liberties. The state legislatures, instead
- 33:35Speaker 1: of studying to restrict their state expenditures to the smallest
- 33:39Speaker 1: possible sum, will claim credit for their profusion and harass
- 33:44Speaker 1: the general government for increased supplies. Practically, there would soon
- 33:50Speaker 1: be but one taxing power, and that vested in a
- 33:54Speaker 1: body of men far removed from the people, in which
- 33:58Speaker 1: the farming and mechanic inns interests would scarcely be represented.
- 34:03Speaker 1: The states would gradually lose their purity as well as
- 34:07Speaker 1: their independence. They would not dare to murmur at the
- 34:11Speaker 1: proceedings of the general government lest they should lose their supplies.
- 34:17Speaker 1: All would be merged in a practical consolidation, cemented by
- 34:22Speaker 1: wide spread corruption, which could only be eradicated by one
- 34:26Speaker 1: of those bloody revolutions which occasionally overthrow the despotic systems
- 34:32Speaker 1: of the old world. In all the other aspects in
- 34:37Speaker 1: which I have been able to look at the effect
- 34:40Speaker 1: of such a principle of distribution upon the best interests
- 34:44Speaker 1: of the country, I can see nothing to compensate for
- 34:47Speaker 1: the disadvantages to which I have adverted. If we consider
- 34:52Speaker 1: the protective duties, which are in a great degree the
- 34:55Speaker 1: source of the surplus revenue beneficial to one section of
- 34:59Speaker 1: the US Union, and prejudicial to another, there is no
- 35:03Speaker 1: corrective for the evil, and such a plan of distribution,
- 35:07Speaker 1: on the contrary, there is reason to fear that all
- 35:11Speaker 1: the complaints which have sprung from this cause would be aggravated.
- 35:16Speaker 1: Everyone must be sensible that a distribution of the surplus
- 35:20Speaker 1: must be yet a disposition to cherish the means which
- 35:24Speaker 1: create it, and any system therefore into which it enters
- 35:29Speaker 1: must have a powerful tendency to increase, rather than diminish,
- 35:34Speaker 1: the tariff. If it were even admitted that the advantages
- 35:39Speaker 1: of such a system could be made equal to all
- 35:42Speaker 1: the sections of the Union, the reasons already so urgently
- 35:46Speaker 1: calling for a reduction of the revenue would nevertheless lose
- 35:50Speaker 1: none of their force, For it will always be improbable
- 35:54Speaker 1: that an intelligent and virtuous community can consent to raise
- 35:59Speaker 1: a surplus for the mere purpose of dividing it, diminished,
- 36:04Speaker 1: as it must inevitably be, by the expenses of the
- 36:07Speaker 1: various machinery necessary to the process. The safest and simplest
- 36:12Speaker 1: mode of obviating all the difficulties which have been mentioned
- 36:17Speaker 1: is to collect only revenue enough to meet the wants
- 36:20Speaker 1: of the government, and let the people keep the balance
- 36:23Speaker 1: of their property in their own hands to be used
- 36:27Speaker 1: for their own profit. Each state will then support its
- 36:32Speaker 1: own government and contribute its due share toward the support
- 36:36Speaker 1: of the general government. There would be no surplus to
- 36:40Speaker 1: cramp and lessen the resources of individual wealth and enterprise,
- 36:44Speaker 1: and the banks would be left to their ordinary means.
- 36:49Speaker 1: Whatever agitations and fluctuations might arise from our unfortunate paper system,
- 36:55Speaker 1: they could never be attributed justly or unjustly to the
- 37:00Speaker 1: action of the federal government. There would be some guarantee
- 37:04Speaker 1: that the spirit of wild speculation, which seeks to convert
- 37:08Speaker 1: the surplus revenue into banking capital, would be effectually checked,
- 37:14Speaker 1: and that the scenes of demoralization which are now so
- 37:18Speaker 1: prevalent through the land would disappear. Without desiring to conceal
- 37:25Speaker 1: that the experience and observation of the last two years
- 37:28Speaker 1: have operated a partial change in my views upon this
- 37:32Speaker 1: interesting subject. It is nevertheless regretted that the suggestions made
- 37:38Speaker 1: by me in my annual messages of eighteen twenty nine
- 37:41Speaker 1: and eighteen thirty have been greatly misunderstood. At that time,
- 37:46Speaker 1: the great struggle was begun against the latitudinarian construction of
- 37:51Speaker 1: the Constitution, which authorizes the unlimited appropriation of the revenues
- 37:57Speaker 1: of the Union to internal improvements, with than the States
- 38:01Speaker 1: tending to invest in the hands and place under the
- 38:04Speaker 1: control of the General Government all the principal roads and
- 38:08Speaker 1: canals of the country, in violation of state rights and
- 38:12Speaker 1: in derogation of state authority. At the same time, the
- 38:16Speaker 1: condition of the manufacturing interest was such as to create
- 38:21Speaker 1: an apprehension that the duties on imports could not, without
- 38:26Speaker 1: extensive mischief, be reduced in season to prevent the accumulation
- 38:32Speaker 1: of a considerable surplus after the payment of the national debt.
- 38:36Speaker 1: In view of the dangers of such a surplus, and
- 38:39Speaker 1: in preference to its application to internal improvements in derogation
- 38:45Speaker 1: of the rights and powers of the States, the suggestion
- 38:49Speaker 1: of an amendment of the Constitution to authorize its distribution
- 38:53Speaker 1: was made. It was an alternative for what were deemed
- 38:58Speaker 1: greater evils, a temporary resort to relieve an overburdened treasury,
- 39:05Speaker 1: until the government could, without a sudden and destructive revulsion
- 39:09Speaker 1: in the business of the country, gradually returned to the
- 39:13Speaker 1: just principle of raising no more revenue from the people
- 39:17Speaker 1: in taxes than is necessary for its economical support. Even
- 39:22Speaker 1: that alternative was not spoken of. But in connection with
- 39:27Speaker 1: an amendment of the Constitution, no temporary inconvenience can justify
- 39:32Speaker 1: the exercise of a prohibited power not granted by that instrument.
- 39:37Speaker 1: And it was from a conviction that the power to
- 39:40Speaker 1: distribute even a temporary surplus of revenue is of that
- 39:44Speaker 1: character that it was suggested only in connection with an
- 39:49Speaker 1: appeal to the source of all legal power in the
- 39:51Speaker 1: general government, the states which have established it. No such
- 39:57Speaker 1: appeal has been taken, and in my opinion, a distribution
- 40:01Speaker 1: of the surplus revenue by Congress, either to the states
- 40:05Speaker 1: or to the people, is to be considered as among
- 40:08Speaker 1: the prohibitions of the Constitution. As already intimated, my views
- 40:13Speaker 1: have undergone a change so far as to be convinced
- 40:17Speaker 1: that no alteration of the Constitution in this respect is
- 40:20Speaker 1: wise or expedient. The influence of an accumulating surplus upon
- 40:26Speaker 1: the credit system of the country, producing dangerous extensions and
- 40:30Speaker 1: ruinous contractions, fluctuations in the price of property, rash speculation, idleness, extravagance,
- 40:38Speaker 1: and a deterioration of morals, have taught us the important
- 40:43Speaker 1: lesson that any transient mischief, which may attend the reduction
- 40:48Speaker 1: of our revenue to the wants of our government, is
- 40:52Speaker 1: to be borne in preference to an overflowing treasury. End
- 40:57Speaker 1: of Section seventeen