SENATE.]

Sinking Fund, &c.

and the Committee held it to be right and reasonable that some part of these profits ought to go to the public, to whom the capital belonged, which produced them. The House of Commons was of the same opinion; the Chancellor of the Exchequer also; and of the terms offered by the Bank, either to pay about seven hundred and fifty thousand dollars annually for the use of these balances, or to make a loan of about fifteen millions of dollars without interest, the latter was accepted by the Chancellor, and finally ratified by Parliament, after a debate, in which the sole point was the inadequacy of the compensation. Mr. B. admitted that there was discouragement, as well as encouragement, for him in this example. He was discouraged by seeing that Mr. Burke was baffled for twenty years, and died before the Bank was brought to terms; but he was encouraged by seeing that she was brought to terms at last, though it took a Chancellor of the Exchequer and Prime Minister of England-a Pitt, and the son of a Pitt-to bring her to.

Mr. B. took up his fourth resolution, and read it: "That a public debt is a public burthen; that the present debt of the United States is a burthen upon the People of the United States, to the amount of more than fifteen millions of dollars per annum; that the people ought to be relieved from this burthen as soon as possible, and might be relieved from it in four years, by a timely and judicious application of the means in the power of Congress."

He would not waste time upon the general proposition with which the resolution set out, although he knew there were many who disputed that proposition: he would go to the clause which asserted the annual amount of burthen which this debt imposed upon the people to exceed fifteen millions of dollars, and prove it by a statement as brief as it would be plain and intelligible. The annual amount paid on the debt for the last four years averaged about twelve millions of dollars, and he hoped that the payments for the next four would rather exceed than fall short of the same average. This would be admitted to be a burthen to the amount of twelve millions per annum, by all who admitted that taxes were burthens. In the next place, these twelve millions were levied upon the consumption of foreign goods, the averaged duty on which was now fifty per cent., upon which fifty the retail merchant had his profit, as well as upon the cost of the article. It was all cost to him. This profit might average 333 per cent., especially where the article went through the hands of several sellers. This advance on twelve millions would be four millions, which, together, made sixteen millions, and sustains the words of the resolution. But this is not all. A farther expense attends the collection of these duties, to the amount of about nine hundred thousand dollars per annum more, in salaries, fees, and commissions to the revenue officers. This also comes out of the pockets of the people, and contributes to swell far above the statement in the resolution, the annual burthen which the people bear on account of the public debt.

That this debt can be paid off in four years by a "timely" and "judicious" application of the means in the power of Congress, was a proposition susceptible of the clearest demonstration. Its nominal amount was fifty-eight millions, its real amount about forty-nine millions, after deducting seven millions for stock in the United States' Bank, and two millions more for the difference between the nominal amount, and the market price of the 3 per cent. stock. The adoption of the first resolution offered by Mr. B. would probably sink the market price of this stock one or two millions lower by destroying its character of perpetuity, and then the actual debt would be but forty-seven millions. But, even at forty-three millions, it can be paid off in four years, by applying the twelve millions which will go to the principal and interest, to the principal alone, and raising the interest from accelerated sales of the public lands. This was what was intended by a "timely" and

[JAN. 6, 1829"judicious" application of the means in the power of Congress; words which were borrowed from the first message of President Washington to Congress, and enforced by the first and ablest of all the Secretaries of the Treasury, but which had never yet been acted upon by Congress. At this part of his argument Mr. B took the following bold positions:

1. That one hundred millions of acres of land sold, near forty years ago, at an average of twenty cents per acre, as recommended by General Hamilton, would have been worth sixty millions of dollars to the people, by extinguishing twenty millions of debt, and stopping the payment of forty millions in interest.

2. That all the land sold by the Federal Government has not been worth one cent to the people, the amount received from sales being swallowed up in expenses, or lost in interest upon the capital of land unsold, while paying interest upon the capital of the debt unpaid.

3. That the sale of the eighty millions of land to which his graduation bill was applicable, would raise, at an average of twenty-five cents per acre, twenty millions of dollars in four years, the one half of which would pay the interest on the public debt, and the other half would give to all the neglected States their proportionate shares of the amount expended in the favored States on works of internal improvement.

Mr. B's fifth resolution related to the abolition of duties, and imported that duties to the amount of the ten millions of dollars now annually levied on account of the public debt, ought to be abolished as soon as that debt was paid, and might be abolished, according to the present indications of the revenue, without diminishing the protection due to any branch of domestic industry, and with great advantage to the agriculture and commerce of the country.

Mr. B. went on to say, that this resolution presented a great question to the consideration of the Senate and American people. It was a question in the decision of which, above all others, the vote of the representative ought to be governed by the will of the constituent. It was a question to the consideration of which the attention ef the people ought to be worked up, and worked up in time to know what their representatives were about, before a final decision might be made to their prejudice. With this view, he had brought forward the question at the last sess on of Congress; with this view he brought it forward now; and for the same purpose he should bring itf orward at the next session, if his resolution was not adopted at the present one.

The first clause of the resolution asserts that duties ought to be abolished to the amount of ten millions of dollars, the instant the public debt is paid off. I know there are many who think differently, who are of opinion that the duties ought to be kept up, and the amount expended by Congress in works of internal improvement; but my mind is clear and decisive in favor of the abolition. There will be enough for internal improvement without these ten millions, which now go, not to that object, but to the public debt. I am for the abolition, because I am opposed to all taxation not required for the necessary support of the Government. I am against raising money by taxes, either for accumulation in the vaults of the Treasury, or for repartition among the people. What is attempted to be kept in the Treasury would be wasted; a partition could never be fairly made; a majority of the payers would never get back their own. The pockets of the people are the best treasuries which the Government can have for its spare revenues. They are the safest; for every citizen is the keeper of his own. They are the cheapest, for these keepers have no salaries; they are the most beneficial, for they are the only treasuries of which the keeper may always use the contents without blame, and with profit to himself and the country.

I am for the abolition, because the sum is great in itself,

and raised at still greater expense to the people. The levy of ten millions for the Government cost upwards of fifteen millions to the people. It is a mistake of the present day, founded upon what was fact thirty years ago, to suppose that taxation by duties is the cheapest way of levying money from the people. This was true when the average duties were seven and a half per cent. and when the addition of that amount to the value of the article made no sensible addition to its cost. But all this is now changed. The average duties are now 50 per cent. and this adds one half to the cost of the article; the merchant's profit is thirty-three and a third per cent. on this duty of 50, and that adds a third more to it. Fees, salaries, and commissions, are then paid besides to the revenue officers to the annual amount of near nine hundred thousand dollars more. The effect of all these per cents. fees, and salaries, is, that it now costs the people nearly two dollars to raise one dollar for the Government, and this load is increased upon some, by the fact that smugglers, and dealers with smugglers, pay nothing. A levy of twelve millions for the public debt, now occasions a levy of more than fifteen, and nearly twenty millions upon the people; a rate of expense for collection out of all proportion to the revenue raised, exceeded in no country upon earth but in England, and from which the people, in the language of the resolution, ought to be relieved as soon as possible.

[SENATE.

Yes, break out to bitterest enmity upon dissension of a farthing! With how much greater bitterness, then, when the dissension is for millions, when the parties are whole communities, their passions inflamed by association, no common superior to decide between them, an individual shame lost in the mass of undistinguished multitudes! The last thing that any friend to the peace, the harmony, the stability of the Union, would wish to see, would be an annual scramble on the floor of Congress for ten millions of dollars. We shall have heart-burnings enough in distributing the two or three millions of surplus revenue which will remain without these ten millions, and in scrambling for the countless millions of the public land.

ing any other; and thus an angry question will drop from our discussions, and every cloud of discontent will vanish from our horizon.

I am for the abolition, because it will be the means of I am for the abolition, because the wielding of ten mil- restoring the harmony of this Union, now greatly impaired lions of surplus revenue would dangerously increase the by a tariff, which sits hard upon the navigating and plantpatronage of the Federal Government. This sum is now ing interests of the country. An abolition of ten milmortgaged to the payment of the public debt, and its ap-lions of duties will relieve these interests, without injur plication to that object being fixed and regular, involves the exercise of but little patronage. Released from that mortgage, it would be applicable to innumerable objects, and subject to the annual appropriation by Congress. Its The last branch of this resolution declares, that this distribution would attract all eyes, and excite universal cu- abolition may be made, according to present indications pidity. It would draw deputations from cities, towns, and of the revenue, without detriment to domestic industry, villages, from companies and corporations, from counties, and with great advantage to agriculture and commerce. States, and districts, to the feet of the Federal Govern- On this point my remarks will be few and brief. They ment, all clamorous for their share of the spoil, or negare abridged, and almost superseded by the labors of the lecting their own business to obtain it, and all becoming last session. This subject, upon a resolution of my own, less independent in proportion as they received it-like the was referred to the Committee of Finance twelve months degenerate Romans, who ceased to be free when they be ago. That Committee reported a list of thirty-two articles, gan to look to the public granaries, instead of their own estimated to yield a revenue of seven and a quarter milcribs, for a supply of corn. lions, on which the duties might be repealed without injury to domestic industry; seven other articles, whose product could not be then ascertained, and six more on which the drawback for the last year exceeded the revenue, but which, in a run of several years, yield a considerable sum. This makes forty-five articles, and to these I think about fifteen more might be added. But I omit these fifteen. I take the forty-five* reported by the Committee, and say that they will yield the ten millions in four years from this time. They yield a million and a half more now than was estimated by the Committee. Three of them alone exceed that estimate by eight hundred and thirty thousand dollars. But this is a detail, and a subordinate inquiry. If we agree in the great principle of abolition, there will be no balk about a few articles, or a few thousands of dollars more or less. The benefit to agriculture and commerce would be great and immediate from this abolition. Free trade is their delight and element, and this abolition of duties would set the half of our trade free. A few examples will illustrate its benefit. We have a growing trade with France, of which the chief articles on our part are cotton and tobacco; on her part, silks and wines. She took from us last year seventy millions of pounds of cotton, and thirty thousand hogsheads of to

I am for the abolition, because an annual scramble on the floors of Congress for ten millions of dollars, would fill our halls with bargains, combinations, intrigue, and corruption. The effect would be inevitable. Help my State to half a million, and I will help yours to another half. A majority of the members might meet beforehand, and divide the whole among their own States. They might do worse. They might insert appropriations for roads and canals, in States whose representatives denied the constitutionality of such appropriations, and thus subject them to the censure of their constituents, for not taking a share while it was going. In this way, the delegation of a State might be rendered obnoxious to their constituents, and broken down at home by a manœuvre here. Is this fancy, or is it fact? exclaimed Mr. B. It is fact, and the history of our legislation proves it. Within the last three years the manœuvre was tried. A bill came up from the House of Representatives with appropriations for internal improvement for a majority of the States, including some whose delegations could not vote for such objects. The bill passed through this chamber, and became a law; but the design against the members failed. A kindly feeling prevailed. The yeas and nays were not called. The bill went through without noise, and the obnoxious voters were not pointed out to their constituents. This may be attempted again, upon a greater scale, and with a more determined intent, if ten millions are to be annually divided out.

I am for the abolition, because the annual division of

Salt, coffee, teas, linens, wines, silks, cocoa, almonds, currants, prunes, figs, raisins, mace, cloves, nutmegs, cinnamon, cassia, poji

per, pimento, bristles, Spanish brown, ochre, camphor, Cayenne pep

per, ginger, olive oil, olives, alum, corks, quicksilver, opium, eapers, worsted stuffs, hankees, boiting cloths, quilis, black bottles, demijohns, thread and silk lace, cambrics, lawns, Cashmere shawis,

gauze, ribbons, straw mats, and Canton crape.

bacco. An abolition of duties on silks and wines will increase our purchases of those articles, and her purchases of our cotton and tobacco, and require a great increase of ships for their transportation. The same of the West India trade. We have a great trade with these islands, the chief articles on our part beef, pork, flour, corn, corn meal, whiskey, bacon, and lumber; and hers, coffee and specie, of which they sent us last year fifty millions of pounds of the former, and two millions two hundred thousand dollars of the latter. Our duty on coffee is five cents a pound, more than half of the first cost of the article. Abolish it, and we shall take double the quantity of coffee, and greatly increase our exports of provisions and imports of specie.

Mr. B. had now finished his exposition of the reasons and policy of his resolutions. He had spoken to them all at once, but they could be discussed separately on the motion of any Senator; the vote, of course, would be on each separate resolution.

[JAN. 7 to 12, 1829.

MONDAY, JAN. 12, 1829.

GEORGIA AND THE UNITED STATES. The CHAIR communicated a letter from the Governor of the State of Georgia, transmitting the following Protest of the Legislature of that State :

"STATE OF GEORGIA.

EXECUTIVE DEPARTMENT,
Milledgeville, December 30th, 1828.
SIR: The enclosed protest is transmitted to you, to be
laid before the Senate of the United States.
I am, sir, your obedient servant,

Hon. Joux C. CALHOUN,

JOHN FORSYTH.

Vice President of the U. States."

"From a painful conviction that a manifestation of the public sentiment, in the most imposing and impressive form, is called for by the present agitated state of the Southern section of the Union, the General Assembly of the State of Georgia have deemed it their duty to adopt the novel expedient of addressing, in the name of the State, the Senate of the Congress of the United States. "In her sovereign character, the State of Georgia protests against the act of the last session of Congress, entitled "An act in alteration title, fraudulent in its pretexts, oppressive in its exactions, partial of the several acts imposing duties on imports," as deceptive in its and unjust in its operations, unconstitutional in its well-known objects, ruinous to commerce and agriculture-to secure a hateful monopoly to a combination of importanate manufacturers. "Demanding the repeal of an act which has already disturbed the Union and endangered the public tranquillity, weakened the confidence of whole States in the Federal Government, and diminished the affection of large masses of the people to the Union itself, and the abanble of wisely directing their own enterprise; which sets up the servants of the people in Congress as the exclusive judges of what pursuits are most advantageous and suitable for those by whom they were elected, the State of Georgia expects that, in perpetual testimony thereof, the deliberate and solemn expression of her opinion will be carefully preserved among the archives of the Senate; and in justification of her character to the present generation, and to posterity,if, unfortunately, Congress, disregarding the protest, and continuing to pervert powers granted for clearly defined and well understood purposes, to effectuate objects never intended by the great parties by whom the Constitution was framed, to be entrusted to the controlling guardianship of the Federal Government, should render necessary measures of a decisive character, for the protection of the people of the State, and the vindication of the Constitution of the United States.

Mr. SMITH, of Md. moved the reference of the first resolution to the Committee of Finance. He said, that the subject was one that required much consideration; that he had applied some of his leisure hours to satisfy himself on the subject; that he had not yet perfected his inquiries. So far as he had gone had convinced him that the Senator (Mr. BENTON) was mistaken. If referred to the Committee, the subject would be fully investigated, and he believed it would be shown, that there would be of debt, (redeemable at the pleasure of the Government) sufficient, with the interest annually paya-donment of the degrading system which considers the people as incapable, to absorb the whole of the ten millions of dollars which the Commissioners of the Sinking Fund were authorized by law to apply annually to the payment of the principal and interest of the public debt. He had, he said, completed his inquiry for the years 1829 and 1830, and could state that there were of six and five per cent., redeemable during those years, a sum which, with the interest accruing for those years, would amount to $ 22, 878,639; the payment to be made for those two years, agreeably to law, was twenty millions, which would leave a surplus, payable in 1831, of $2,878 639. He trusted, he said, that he had satisfied the Senate, that, during the years 1829 and 1830 there were of stocks redeemable, and of interest payable, an amount amply sufficient to satisfy the Commissioners of the Sinking Fund for those two years. He added, that he was not yet prepared to give a statement respecting the years 1831 and 1832, but if the resolution should be committed, he hoped, and believed, that he would be able to show that, without any authority to purchase, the whole or nearly the whole of the 6, 5, and 4 per cent. debts, (Bank debt excepted) might be paid off in 1832.

Mr. S. concluded by offering the following as an amendment to the first clause of the resolution:

IRBY HUDSON,

Speaker of the House of Representatives.
THOMAS STOCKS,

President of the Senate.
JOHN FORSYTH, Governor."

Mr. BERRIEN said, that the annunciation made from the Chair, imposed a duty on his colleague and himself, which, with his assent, he would perform, by giving a direction, with the sanction of the Senate, to the document, which had been just announced. I am not willing, sir, [said Mr. B.] to see an act so grave and interesting in its character, pass away with those mere every day events which are forgotten almost in the instant of their Occurrence. In order, therefore, that it may be distinctly presented to the notice of the Senate, before I submit Strike out the first clause, and insertthe motion which it calls for, I will state its purport, and "Resolved, That the Committee on Finance be instruct- avail myself of the occasion to make a very brief remark. ed to inquire into the expediency of authorizing the Com- That document, sir, of which an official has been missioners of the Sinking Fund to purchase, at its current transmitted to my colleague and myself, is the protest of market price, the public debt, whenever, in their opin- the State of Georgia, made through her constitutional orion, such purchases can be made beneficially for the gans, to this assembly of the Representatives of States, interests of the United States, and consistently with ex-against the "act in alteration of the several acts laying isting engagements."

copy

duties on imports," passed at the late session of the Con

After a few words from Mr. BENTON, by way of re-gress of the United States. In her sovereign character, as joinder, the resolutions were ordered to lie on the table.

one of the original members of this Confederacy, by whom this Government was called into existence, that State protests against this act, on the several grounds which are specifically set forth, in that instrument, which is attested There was no business transacted this day giving rise by the signatures of her Legislative and Executive func

to debate.

WEDNESDAY, JAN. 7, 1829.

THURSDAY, JAN. 8, 1829.

There was little business transacted this day-nothing to occasion debate. Adjourned to Monday..

tionaries, and authenticated under her public seal.

It is now delivered to this Department of the Federal Government, to be deposited in its archives, in perpetuam rei memoriam, to serve whenever the occasion may require it, as an authentic testimony of the solemn dissent of

one of the Sovereign States of this Union from the act therein protested against, as an infraction of the constitutional compact by which she is united to the other members of this Confederacy.

It is difficult, sir, to repress-it is, perhaps, still more difficult appropriately to express the feelings which belong to such an occasion as the present. I have been educated in sentiments of reverence for our Federal Union, and, through life, I have habitually cherished these sentiments. As an individual citizen, therefore, it is painful to recur to that disastrous policy which has imposed on the State in which I live the stern necessity of assuming this relation to the Government of this Confederacy.

[SENATE.

at nought, they will still look with confidence to the returning justice of this Government.

I fulfil my duty, sir, on this occasion, with a cherished reliance on that justice; with a deep and abiding conviction of the patriotism and forbearance of that people by whom it is demanded; with an humble but unwavering trust in the mercy of Heaven.

On motion, by Mr. BERRIEN, the letter and protest were then ordered to be printed, for the use of the Senate. THE SINKING FUND, &c.

Mr. S. withdrew his amendment, and moved to refer the whole subject to the Committee on Finance.

The Senate then took up for consideration the resolu tions heretofore offered by Mr. BENTON, relative to the As one of the Representatives on this floor of that Sinking fund, the Public Debt, the Bank of the United State, whose citizens have always been forward to mani- States, &c.-the question being on the amendment herefest a profound and devoted attachment to this Union-tofore submitted by Mr. SMITH, of Maryland. of a patriotic and gallant people, who would freely yield their treasure and unsparingly shed their blood in its defence; the occasion is one of deep and unmingled humiliation, which demands the deposite, in the registry of the Senate, of this record of their wrongs. There may be those, sir, who will look to this act with indifference, perhaps with levity; who will consider it as the result of momentary excitement; and see, or think they see in it, merely the effusion of impassioned, but evanescent feeling. I implore those gentlemen not to deceive themselves on a subject in relation to which error may be alike dangerous to us all.

ނ

Mr. SANFORD said, he was satisfied that it was expedient to adopt the first of the resolutions of the gentleman from Missouri. We have now [said he about fifty millions of debt, and the whole of it, excepting the three per cent. debt, may be discharged in three or four years. What is to be done with the three per cents. amounting to more than thirteen millions of dollars? Is this part of the debt to be perpetual? His own opinion was, that this, like every other portion of the debt, should be extinguished, as soon and as fast as possible. How is the three Forty years of successful experiment have proved the per cent. debt, then, to be extinguished? Certainly, in efficiency of this Government to sustain us in an honorable no other way than by payment or purchase. We must intercourse with the other nations of the world. Exter- either pay the full nominal amount, or we must purchase nally, in peace and in war, amid the fluctuations of com- this debt from its holders. The highest market price to merce, and the strife of arms, it has protected our inter- which this debt has risen is eighty-five per cent.; ests, and defended our rights. One trial, one fearful tri- the fluctuations of the market, for a long time past, al, yet remains to be made. It is one, under the apprehen- having been between eighty and eighty-five per cent.; and sion of which the bravest may tremble-which the wise the medium rate of the market being, perhaps, about and the good will anxiously endeavour to avoid. It is eighty-three per cent. By the restriction now in force, that experiment which shall test the competency of this under the law of 1817, the Commissioners of the Sinking Government to preserve our internal peace, whenever a Fund are not permitted to purchase this debt, when its question vitally affecting the bond, which unites us as one market price exceeds sixty-five per cent. None has been people, shall come to be solemnly agitated between the purchased; and none will ever be purchased, while this sovereign members of this Confederacy. In proportion to restriction continues. To provide for the payment of this its dangers should be our solicitude to avoid it, by ab- debt, or to declare our purpose to pay it, would elevate staining on the one hand from acts of doubtful legislation, the debt to par; but to give an authority to purchase as well as by the manner of resistance on the other, to would not much advance the market price of this debt. those which are deemed unconstitutional. Between the Such an authority ought to be, and would be, exercised independent members of this Confederacy, sir, there can very cautiously and slowly. This debt is widely diffused, be no common arbiter. They are necessarily remitted to and much of it is held in Europe. So long as it is an antheir own sovereign will, deliberately expressed, in the ex- nuity of indefinite duration, its value is governed by the ercise of those reserved rights of sovereignty, the delega- market rate of interest, and it cannot rise much above its tion of which would have been an act of political suicide. present market rate; since, at a higher rate, it would afThe designation of such an arbiter, sir, was, by the force ford an interest lower than the lowest market rate of of invincible necessity, casus omissus among the provi- interest in the world. So long, therefore, as the final dissions of a constitution conferring limited powers, the in- charge of the capital of this annuity is indefinitely distant, terpretation of which was to be confided to the surbordi- the capital itself will probably never rise to ninety per nate agents, created by those who were entrusted to ad- cent. in the market. As it is clearly our interest to buy minister it. this debt rather than to pay it; as the greater part of this debt is held by persons who have no desire to sell it; as the portions offered in the market, from time to time, are small; and, as it would be inexpedient to raise the market, by offering higher prices than the current rates; it is necessary, if we intend to purchase, to begin and to proceed with all the caution of discreet buyers. There can be no doubt that an authority in the Commissioners of the Sinking Fund to purchase at market rates would be judiciously exercised by them. If this operation shall be commenced, until all the other portions of the public debt shall be paid, our situation may, and probably will, be that, with means in the Treasury fully equal to the discharge of this debt of thirteen millions, we shall be obliged either to postpone its payment, or to pay it at par, or to purchase it upon terms far less advantageous to the public than may be made by gradual and progressive pur

I earnestly hope, that the wise and conciliatory spirit of this Government, and of those of the several States, will postpone, to a period far distant, the day which will summon us to so fearful a trial. If we are indeed doomed to encounter it, I as earnestly hope that it may be entered upon in the spirit of peace, and with cherished recollections of former amity. But the occasion which shall impel the sovereign people of even one of the members of this Confederacy to resolve, that they are not bound by its acts, is one to which no patriot can look with levity, nor yet with indifference. What ever men and freemen may do to avert it, the people of Georgia will do. Deeply as they feel the wrongs which they suffer, they will yet bear and forbear. Though their complaints have been hitherto disregarded, and their remonstrances have been heretofore set