should be made of this surplus earnestly engaged the attention of our statesmen. It was early perceived that an accumulation of money was not consonant with our system of government - and that it would disturb the equilibrium of the exchanges, currency and trade of the country.-Many projects were advanced to meet the new state of things which was about to occur. The enemies of the tariff proposed to lessen the duties and thus bring the revenues to a level with the expenses of the government. The new states who had previously asserted their claim, now insisted that the treasury should be relieved of the income from the public lands, by first reducing the price, ard finally ceding to the states in which they were situated, all the lands which might remain unsold at the end of twenty years from the time in which they were brought into market. Others were in favor of dividing what should remain of the revenues, after providing for the support of governinent, among the states, without interfering with either source of income. This last proposition at one time received the sanction of General Jackson, and by him was recommended to Congress. At a later period another method was proposed of freeing the government from its treasure; this was by adopting a most wasteful system of expenditure. This so far succeeded that the expenses of the general government were increased, from fitteen millions in 1824, to thirty millions in 1837.

While the public mind was agitated by the discussion of these various projects, the committee on manufactures in the Senate of the United States, of which committee Mr Clay was a member, were, during the ses sion of 1831, 32, instructed to inquire into the expediency of reducing the price of public lands and of ceding them to the several states in which they are situated, on reasonable terms. This reference of the subject of the public lands to a committee on manufactures, a reference contrary to all parliamentary practice, and which can be accounted for only by the supposition of its bearing upon the presidential election then pending, was attended with this happy result. It was this reference, directing the powerful mind of an experienced and patriotic statesman to the investigation of this subject, which brought distinctly before the people the proposition of distributing among the states the proceeds of this fund, which was granted for their use and benefit. The bill reported, provided for the equal division of the proceeds among the several states, after allowing ten per cent. to the states in which the lands were situated. This act passed the Senate, and at the succeeding session of Congress, passed both houses of that body by large majorities, and was sent to the President for his approval, near its close. Instead of returning the bill that Congress might exercise its constitutional right upon it, the chief magistrate retained it in his possession, and suffered Congress to be dissolved: thus preventing that branch of the government from exercising a right secured to it by the constitution. That they would have passed the bill into a law by a vote of two thirds in each branch, has never, to the knowledge of your committee, been denied.

While your committee find no fault with the bill referred to, they would not confine the instructions to your representatives to all its particular details. All that the resolution asks for is, a just distribution of the net proceeds of the public lands. Vermont should ask for nothing but what is clearly right. If the bill had passed and continued in force to the present time, she would have received $1,198,500. Splendid as this boon would be, incalculable as might be the advanta

ges it would bestow upon the state, in the endowment of her colleges, academies and common schools, the improvement of the roads and the construction of other means of internal communication, she would spurn the treasure if unjustly acquired.

It therefore becomes necessary that we should inquire into the right, which Congress has to make such distributions--the justice of the claims of the old states as compared with the pretensions of the newand finally to consider the expediency of the proposed measure.

If we refer to the terms of the deeds of cession, we find that they do not require that the proceeds of these lands shall be applied to the current expenses of the government, but leave them as a fund for the use and benefit of the several states. Instead therefore of being opposed to the distribution, the language of these deeds would favor the idea, that Congress might suffer the several states, according to a just pro portion, to receive the income from this fund and apply it to such purposes as may be most beneficial to them.--Revenue thus receiv ed into the treasury appears, to your committee, to stand upon different grounds from that collected from the customs. A surplus thus accumulated has once been distributed, and if done constitutionally, furnishes a strong argument in favor of the power of Congress to adopt the proposed measure. The constitution itself imposes no restriction, but gives Congress unlimited powers to dispose of the territory and other property of the United States."

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Although we are not obliged to insist upon all the provisions of the bill which once passed both houses of Congress, providing for the distribution of the proceeds of the public lands, it is highly probable, if any mode should be adopted, it would embrace its most important features. The objections to that bill then would constitute the objections to the whole plan. In ascertaining what these objections are, perhaps no better authority can be had than the message of the President, returning the "land bill" to the Senate.

The bill provided that this money should be divided among the states according to their population, after allowing to the new states ten per cent. upon the sales within their limits. It was objected that this proportion was inconsistent with the terms of the deeds of cession, which required that they should be for the use and benefit of the several states, "according to their usual respective proportions in the general charge and expenditure." The mode in which the revenue is now collected from the customs, instead of assessments upon the several states as was practised under the articles of Confederation, renders it impossible to ascertain the exact amount paid by each state.-But as taxation is based upon representation or population, the intention of the grantors would be more nearly obtained by the plan proposed than by any other that could be now devised, and no injustice would be com mitted. The uniform practice of the government has been to place the money from the public lands in the treasury, with revenues derived from other sources, and apply it to the payment of appropriations by which it is in no way certain the states are alike benefited. This is a greater departure from the conditions of the grants than could be made by the adoption of the proportion fixed in the bill, and would be nore likely to affect injuriously the equal rights of the states, which were intended to be secured by he terms of cession.

It was a'so objected that the allowance of ten per cent, to the new

states was unequal as regarded the old, by depriving them of a portion to which they were entitled by the conditions of the cession. Your committee find a difficulty in reconciling this objection, with the recommendation in the same message, to reduce the price of the public lands to a nominal sum barely sufficient to cover the expenses, and finally to cede them entirely to the new states. The allowance of the ten per cent. may be justified on different grounds. It may be considercd only as placing the new upon an equality with the old states-the cen sus of 1830 not exbibiting the proportion of their populations. Or as the ten per cent. was to be calculated only upon the amount of sales in the particular state, and was to be appropriated for the purposes of education and internal improvement, it may be considered only as the proper share of support which should be given to these great interests by an extensive landholder within their limits, who is exempted from

taxation.

It was further objected that the sum proposed to be distributed equally to the states, being left at their unrestricted disposal, might be applied to objects not of a national importance and for which in the opinion of the President the national revenue shou'd not be appropiated. Howev er forcible this objection might be to the division of a surplus derived from ordinary sources of taxation, it can have no importance when applied to a fund of this nature, which is held for the use and benefit of the several states. They certainly are as capable of judging what is for their benefit as the general government can be. But this need not in any point of view form an objection. Let the purposes for which it shall be appropriated be specified - and certainly there is no object of greater national importance than the education of the people; preparing them to sustain the important relation they bear to the whole civilized world.

Your committee have now examined the principal constitutional objectious, and they are constrained to say, that in their opinion they are far fetched and not such as would naturally present themselves to the Hind. The conditions of the grants are so plain and the provisions of the constitution so simple, that it requires no great legal acquirements to decide the question. There is not a freeman of Vermont who is capable of acting as a Juror, who is not as well qualified to judge correctly upon this subject as the President at Washington. Your com mittee feel no hesitation therefore in leaving this part of the subject and proceeding to consider the pretensions of the new states. Upon this point it will be necessary to consume but little time. Their claim to

these lands is so opposed to our moral sense, so repugnant to the ideas of the rights of property implanted within us by nature, exhibits such a disregard of solemn contracts, and is such a breach of pledged faith, that had it not received favor from two successive Presidents, who should be above all sectional and interested motives, it could be viewed only as one of those projects by which public men trust to maintain the favor of their constituents by exciting their cupidity or their prejudices. It has been gravely ass、rted on the floor of the Senate by the author of this project, that if not now freely yielded to them by the old states, af ter the census of 1850, the new states would be strong enough to take the lands within their limits. However debased may be individuals, your committeehave too much confidence in the honesty of human nature, to believe such a scheme could be adopted. Especially if the

old states are true to themselves and not willing to barter away their birthright for a mess of pottage-if they do not become so bound in the fetters of party, that they will sacrifice their best interests now, and of posterity for hundreds of years to come, for a short enjoyment of power by some favorite sons.

In considering the expediency of the proposed distribution, it will be proper to inquire what would have been the probable consequences, had the bill from the committee on manufactures received the sanction of the President, or not been withheld from the ultimate action of Congress. At that time the national debt was nearly paid-the income from the public lands amounted to more than three millions of dollars, which together with the revenue derived from the customs, was more than sufficient to pay the expenses of the government. A surplus must of course soon accumulate, and the possession of it became a matter of importance. Under these circumstances the deposites were, by an act of the President, contrary to the advice of Congress, removed from the Bank of the United States, which had been chartered as the fiscal agent of the government, and placed in certain favored state banks. Instructions were given them to use liberally the government funds for the accommodation of the merchants, and the creation of new banks to receive their deposites was urged upon the states. As money become abundant and easy to be obtined, a spirit of speculation was (:11gendered. More goods were imported and more land sold, and thus both sources of revenue were increased. The income of the public lands from $6,099,981 in 1834, increased to $23,983,192 in '36, and the surplus in two years amounted to forty millions of dollars. The increase of the surplus increased the spirit of speculation, and the speculations which followed swelled the amount of the surplus, thus inutually furnishing food for each other. The necessity of a distribution now become apparent, and notwithstanding opposition from a high quarter, Congress with great unanimity passed the law for that purpose. With regard to the mode in which that fund was distributed and the measures adopted by the general government to check that wild spirit of speculation, which its own doings had created, it is not necessary to speak. The country is yet groaning under the pressure of a ruined currency-the merchants who, in order to maintain the credit and honor of their country, so long struggled against the fury of the elements and the adverse policy of the government, are sill suppliants for justice and relief. If all the distress which this revulsion occasioned could be seen at one glance- if we could hear the cries of children for bread,— if we could perceive all the agony of parents out of employment and knew not from what source they should on the morrow derive food for their families, and feel one of the pangs which would shoot through their breast, when they looked upon those dependent on their exertions for the supply of their wants-it we could estimate the sleepless nights and mental anxiety ofthem an of business, an amount of suffering would be presented which could only be surpassed by the ravages of war, pestilence or famine.

Your committee are constrained to believe that all these evils would have been avoided had the bill providing for the distribution of the proceeds of the public lands passed into a law-while the state governinents, by a wise and beneficent disposition of this money, would have been diffusing joy and happiness to every corner of our country. From

future.

the experience of the past, we may derive lessons of wisdom for the At the present time, to be sure, we have a bankrupt treasury and an imperfect currency. Treasury notes are the hard money of the government, and when inquiry is made, where is the fourth instalment due the States? echo answers, where? But this state of things will not long endure. The young, active and vigorous energies of our people will again restore them from this depression, and we may again hope to see the business of the country proceeding with order and regularity. The old States may then again assert their claim to a share of this common fund. Until that period arrives, it becomes us as a people, to resist the unjust pretensions of the new States, and to keep a watchful eye over those public servants who would surrender our just rights. We should remember that two successive Presidents, have recommended the eventual abandonment to the states of the lands within their limits, that a bill for this purpose has once passed the Senate, and unless we are diligent in our remonstrances we may soon see pass from our hands a treasure which might bless every part of our State.

The benefits which the possension of such a fund would confer upon the state must be apparent to all. In 1837 the Secretary of the Treas"ury estimated the amount of sales at five millions of dollars, and expressed the opinion that the land, annually required for actual settleinent, would for many years produce a similar sum. The receipts of the same year amounted to $6,776,236 52, and it cannot be supposed that another of greater depression can occur. This would give Vermont over $100,000 every year-a sum more than sufficient to defray all the expenses of her government, and with the fund she already possesses, capable of endowing our colleges and academies and supporting our common schools.

Your committee will present but one more consideration, which should influence the people in asserting their just claims to a portion of this common fund. This arises from the fact that the possession of such a treasure by the general government, furnishes a political capital, which will be made use of by trading politicians to obtain place and power. The votes of the west have already been held out to the high est bidder, and there has been no want of liberal offers. If we would therefore preserve the purity of our elections, we must remove this source of corruption, by an equal and just distribution of the proceeds of these lands. There can be no dobut but that the influence of these lands upon our national politics is an increasing evil, which will soon become of such magnitude that a surrender of them to the new states would be preferable to their remaining in their present condition. For these reasons a distinguished Senator from the South, has lately proposed to place the management of them in the bands of these states, reserving to the general government a moiety of the proceeds, hoping in this way to seperate them from the Presidential elections and secure some of this common fund for the benefit of all. But let the distribution once take place, and there is no dauger that it will ever be disturbed. It will become the settled policy of the country. To be sure it may be interrupted in times of war or other public calamity, but the stream will again begin to flow with the return of peace and pros. perity.

Wearied with repeated denials, and with the hope of securing a portion of this common fund to the states by whose labors it was ac.