tax-payers, through the agency of govern- (as in the case of a war,) to load the taxment: that if the Rothschilds, for in-payer (i. e. voter) himself, with the restance, lend the goverment a million at 5 per cent. they have lent it to the tax-payers, who ought to consider it a very advantageous loan. But if the tax-payers are the borrowers, they are, by the same rule, the expenders of the money. Whether the transaction is a good one, or not, depends upon the manner in which the money is expended. If it is well employed by the government, in such enterprises as will yield a fair return to the public; it cannot be set down as a loss. The capitalists, in that case, have invested their money in a national enterprise, for which the people pay them interest, and neither party are the losers. If the national wealth is increasing at the rate of 5 per cent. per annum, or more, by the general and distributed industry of all the tax-payers, other things being equal, they will not find it a disadvantage to borrow money at 5 per cent. If, on the contrary, the body of the nation is not increasing its substance at that rate, it will be a loser by such a bargain. The most serious objection to a national debt is, however, that it facilitates the employment of capital, by government, in unjust and unprofitable projects. Capitalists are eager to lend. Ambitious and unjust governments are eager to borrow. The taxpayers are unthinking and ignorant. The consequences are, a dreadful waste of the substance of the nation. When governments refuse to borrow, capital is thrown into manufactures, commerce, agriculture, and other forms of industry. In these it increases rapidly, and with it increases the ability of the nation to pay such taxes as may be necessary at the time when they are needed. sponsibility of the thing, as in a private speculation. This policy would not only prevent all engagements in unnecessary and unjust wars, by keeping the conscience of the people in harmony with their pecuniary interests, (a sure means of making men honest and considerate,) but it would lead them to invest the public money in such projects as would reimburse the nation for its expenses. The democratic party maintain a speculative opposition to funded national debts. Were they to maintain, what they dare not do, a direct opposition, they would probably not have been able to force duty-payers into a support of the Mexican war. Another and highly important objection to a system of public debt, even when we suppose the money to have been justly and profitably employed, and to the advantage of the nation, is that it converts the government itself into a monied corporation, employing a prodigious capital for such purposes as it may see fit. The accumulated earnings of thousands of individuals are thrown into its hands, to be employed at its discretion. The Government of England is a monied corporation, which has sunk its capital, and taxes the people to pay interest on the money it has lost, and which yields it nothing. Thus, instead of being the agent and representative of the popular will, and the national industry, it has become an irresponsible corporation, with the right of raising funds by force. This is the effect of keeping the tax-payer separated from the government by the intervention of an unlimited credit system. A principal objection to the of late very democratic system of contracting public debts is, that the loaning of great masses of property, to government, deprives the tax-payers of a double advantage; first, that of having a capital, created out of small and scattered sums, employed for the general good; and, second, the use, to a great extent, of the concentrated means of capitalists. It matters not what may have been the nature of the enterprise, the lender must have back his money. Had he invested it himself, he would have been responsible for his own losses; but, for public loans, the tax-payers are responsible. One party manages the enterprise, (a war, for example,) and another is responsible for the cost. A million of poor tax-payers pay a dolThe great secret of economical government lar each into the public treasury. Let us will then be, to bring the opinion of the tax-suppose that the money is justly applied payer to bear directly upon the project it- for their defence, and for the assistance of self; and by making the payment follow their industry, by the government. A instantly upon the adoption of the project, good government is almost the creator of national industry. The dollar they have each paid in, well employed by their representative agents, will enable them all to increase their little wealth, some once, some twice, and some an hundred fold. At the same time, the capitalist, unable to make the government his debtor, is compelled to employ the million he would have lent, in industrial projects for his own and their advantage, realizing for them and for himself a much larger return, than if he had lent it; though, indeed, with greater labor. It is better, therefore, to pay a dollar to-day, than two dollars twenty years hence, inasmuch as we thereby enjoy in addition to the benefits of a good and wealthy government, devoted to the protection of industry, the employment offered by the capitalist whose money must now be directed upon private enterprises. We do not mean, by these arguments, to impress the idea, that we have already incurred a great and immediate danger, by the increase of the national liabilities. The commerce of the nation is, doubtless, fully equal, under an equitable system of specific duties, to cancel, by degrees, all our obligations. We would not even propose a sudden and violent change of policy, in regard to the contraction of debt. We desire only the gradual payment, not by any delusive system of a sinking fund, which, like a spend-thrift's reservation, puts conscience asleep; but by a method, first, of economical administration, and, second, of direct appropriations, of which the people will see the merit, and feel the force. On the 1st of July, 1850, by the estimate of Mr Meredith, there will be a deficit of nearly six millions, for which no provision has been made. On the 1st of July, 1851, there will be a deficit of more than ten and a half millions-the total deficit exceeding sixteen millions, which, if provided for by loans, temporary or funded, will be merely an addition to the national debt. The actual public debt already exceeds $64,700,000, the greater portion of which is redeemable before the year 1868. Under the system that has been pursued for the last three or four years, of contracting debt upon debt, and putting the day of payment as far as possible into the future, it is not unreasonable to suppose that the public debt will, within twenty years, have risen to $100,000,000. Mean while the expenses of the government have been greatly increased by additions to the national territory. The great increase of the business of the country, requiring an additional number of inspectors, guagers, weighers, will add considerably to the cost of collecting the revenue. The act of March 3d, 1845, limiting the number of these officers, will need to be revised for the more effectual prevention of breaches or evasions of the revenue laws. The warehousing system, introduced by Mr. Walker, has greatly increased the number of officials required by that service. nécessity of creating new collection districts in Texas and California, in addition to those already established, is also a necessity for new expense. In the jugdment of the Secretary, no reduction is practicable in these branches of service; on the contrary, the force will have to be increased. The Nor are the expenses of the army, on a peace establishment, likely to be at all diminished. The necessity of protecting the frontier of Texas and New Mexico, and of maintaining military posts in the new territories, will draw largely upon the public purse, and there is every reason to believe that public opinion will soon demand a large addition to the navy for the protection of a commerce which attracts the attention and excites the jealousy of our commercial rivals. These latter suggestions are not, however, made by the Secretary of the Treasury. In a word, every thing points to a necessity for the adoption of the most efficient and economical means of increasing the revenue. We have our choice among three methods, the imposition of direct taxes, or of specific duties, or the augmentation of the national debt. Concerning the first method, the imposition of direct taxes, it is unnecessary to say much at present. If democratic economists think it a popular measure, they will not fail to propose it to the people. To all the influence and popularity which can be gained by saddling the country with excises, corn taxes, land taxes, taxes on legal proceedings, on churches, school houses, live stock, and the various necessaries of life, they are welcome; we shall not grudge it them; but we confess we are ambitious of the honor, the credit, and the praise which will belong to us if we suc ceed in paying the expenses of the government by the direct and economical method of specific duties. While at the same time we deprecate, nay, earnestly seek to avoid, the odium which must follow, if not in the present, then in the succeeding generation, of that slack, faithless and timid policy which shall content itself with pushing forward the national liabilities into the future, and fix upon us, as a nation, the habit of paying in promises to be kept by our posterity. Not only, therefore, to meet our present necessities and provide for the increased expenses of our government, but to nip this great evil in the bud, to keep our national liabilities within manageable limits, we cannot but give a warm support to the proposition of the honorable Secretary of the Treasury. Mr. Meredith has given us a statement of the excess of army and navy expenditure, occasioned by the war with Mexico. The excess of army expenditure for that purpose has been more than $58,800,000, and to this, added the excess of naval expenditure, makes a total exceeding $63, 600,000. The increase of debt by the use of the public credit, to meet the additional expense, was only $49,009,000; leaving $14,600,000 to be paid out of the revenue. Land warrants to the amount of $18, 000,000 have also been issued; thereby diminishing the sales of public lands, and the revenues therefrom accruing, in the sum of, perhaps, 2,000,000. To this, however, no reasonable objection can be raised, as the issue of a land-warrant is a cheaper process than the sale of as much land at auction. "To provide for the payment out of the revenue of the instalment which will be due to Mexico in the fiscal year ending 30th June, 1852, to secure the raising of a fund for the gradual extinguishment of our heavy public debt, and to place the revenue on a sure basis of sufficiency for all the expenditures of the Government, it will be necessary to adopt measures for increasing the revenue; and the most available means to that end are to be found in raising the duty on imports. That an economy as rigid as may be found compatible with the necessities of the country will regulate the appropriations, under existing circumstances cannot be doubted." "In proposing some alterations in the existing tariff, with a view, as well to the necessary augmentation of the revenue as the encouragement of industry, I think it right to present distinctly the views entertained on the latter subject, in the hope that a course may be adopted by the wisdom and patriotism of Congress which may tend to harmonize discordant feelings and promote the general prosperity." Under this head, he says he entertains no doubt of the rightful power of Congress to regulate commerce and impose duties in such a manner as shall favor the industry of the country. It will no doubt, at some future time be matter of wonder that it should ever have been necessary for any government, performing its natural duties, to defend such a position. The revenue, in whatever shape, or by whatever means, or under whatever theory it is collected, has to be expended, after, its collection for the protection of the national industry and property. To this end forts are built, an army and navy is maintained, commerce is defended, territories are purchased from foreign nations, post-offices are established, light-houses are erected, and the rights of each and all are defended. By what species of argumentation are we then to be convinced, that these ends are to be thought sole Mr. Meredith estimates that had there been no unusual expenditure, there would have been a balance in the Treasury, on the 1st of July, of more than $12,600,000. The Secretary attributes the deficit declared for the coming years to the extraordinary expenses of the war and treaty with Mexico; and that the justly high public credit of the United States is not en-ly during the expenditure, and never during dangered by the fact, that a new loan will be required. He proposes, therefore, that a loan not to exceed $16,500,000, be authorized on such terms of interest and repayment as the President, in his discretion, shall, previous to their being issued, see fit to order. Mr. Meredith adds: the collection, of the public revenue. Lighthouses are established in order that those who engage in commercial enterprises may not wreck their property on rocks and shoals. Light-houses are there for the protection of persons engaged in navigation. They could, if they chose, stay at home and live upon the products of the soil; but it is not deemed expedient by Government that men should be solely farmers, or that the profits of the farmer should be limited to an exchange with his immediate neighbors; it is deemed expedient that a new branch of industry should be created and fostered by that beneficent agency which wields the sovereign power of the people; and for this reason light-houses are built and navies are maintained, and as yet our democratic theorists have raised no argument against this wide stretch of sovereignty; they rather seem to glory in it. They have even been at the pains to fabricate a theory for its particular defence; the theory of Free Trade. "I find no obligation written in the Constitution," says Mr. Meredith, "to lay taxes, duties or imposts, at the lowest rate that will yield the largest revenue. "" Can it be doubted for a moment that an injunction of the kind would directly contravene the intention of the constitution itself, which has provided for the regulation of all things necessary for the public good; or that the power to regulate commerce and enforce duties given by the constitution, was given for the public good? And would not that be, in spirit, an unconstitutional regulation which destroyed a branch of the national industry? Let us suppose that one third of the population were already engaged in manufacture; would not that be in spirit an unconstitutional regulation which impoverished that third in order that the remaining third might be enabled to live, for a time, more economically? And was not the tariff of forty-six opposed to the general spirit of the constitution when it broke down the national industry and threw out of employment the workers in cloth and iron in order that the cultivators of the earth might procure foreign luxuries at a little lower rate? Is it not protection with a vengeance, to make regulations for the little finger of industry which paralyze the right arm? to make regulations for commerce, tending to a lessening of the material of commerce, and to a depression of that power and intelligence through which it chiefly thrives-the power and intelligence of the artizan ? "If it were true, that a duty laid on a given article with a view to encourage our own productions is unlawful, because it may operate, by discouraging importation, as a partial prohibition, the proposition would be equally true of every duty laid with that intent, whether it were above or below the maximum revenue rate. But, as under the power to regulaté commerce, it is competent for Congress to enact a direct and total prohibition of the importation of any article, it can be no objection to an act levying duties, that it may operate in partially preventing importation. Whether it be wise or just so to levy duties, is another question. What I mean to say now is, that there is no prohibition of it in the constitution. The proposition is maintained, as universally true, that the express grant of a power to Congress gives to that body the right of exercising that power in such manner as in its opinion may be most conducive to the advantage of the country. "As instances of the exercise of the power of regulating commerce, may be mentioned the prohibition of importations, except at designated ports; the prohibition of the coasting trade to all foreign vessels, and to all American vessels, not licensed and enrolled; the prohibition of certain trade to foreign vessels under the Navigation act of 1817; the prohibition of certain trade to American vessels by the Non-intercourse act, and of all trade by the Embargo act; the drawback on the reexportation of foreign goods; finally, the prohibition of the introduction of adulterated drugs into the country by the act of 26th June, 1848. "Under the power to levy taxes, duties, and imposts, I refer to the discriminating tonnage duties on foreign vessels, the discriminating duties on their cargoes, the preamble to the first law imposing duties passed under the constitution, and the enactments of most of the subsequent ones. "These enactments show that at most or all periods of our history the views which I have expressed appear to have been sustained and acted on." Any provision of the constitution, conferring a certain power, or range of power, upon Congress, is given with the understanding that that power shall be exercised with discretion, and in no instance to the detriment of the national health, liberty, or prosperity. The maxim of Free Trade, that government shall collect its revenues with regard only to its own financial neces sities, taken as it is commonly understood, has not only an aspect of inhumanity, but contravenes its own intention; for it might be contended that a system of policy tending to increase the internal resources of the country, that is to say, that a policy established for the protection of agriculture and manufactures, would be of necessity advantageous to commerce. It is hardly necessary to urge, that as the commerce of the country is measured by its internal wealth, its material being the exchangeable surplus of that wealth, regulations for the protection of agriculture and manufactures are effectually regulations for the augmentation of commerce itself. Moreover, as the Secretary shows, the most valuable commerce, in other words, that which yields the largest return to the country which engages in it, is a commerce in manufactured articles. "Great Britain exports chiefly what she has first brought to the form in which it is ready for ultimate consumption; it is at the stage of its highest value, and her market is almost co-extensive with the civilized world. "All history shows that where are the workshops of the world, there must be the marts of the world, and the heart of wealth, commerce, and power. It is as vain to hope to make these marts by providing warehouses, as it would be to make a crop by building a barn." employed would be much more limited in amount and much less profitable to the carriers than what we now have. Yet our commerce is, in fact, of the same nature with that above described. The seed bears to the cotton the same relation which cotton bears to the cloth. If we now export cotton of the value of about sixty-six millions, the same cotton, when converted into cloth, would make an export of some two hundred and sixty-four millions, or some two hundred and forty-five millions after deducting the fifteen or twenty millions which would be required for our own consumption (in addition to the portion of our present manufactures, consumed at home), and our imports would be thereby in like manner increased. England, at this moment, derives a large portion of her power from spinning and weaving our cotWhen we shall spin and weave it ourselves, make our own iron, and manufacture our other staples, we shall have transferred to this country the great centres of wealth, commerce, civilization, and political, as well as moral and intellectual power." ton. Political economy seems to be, with most men, an affair of the imagination; in fact, a department of poetry. We hear much of the white wings of commerce whitening the shores of continents. golden grain. Viewed in the purple light of morning, while the misty hollows are yet fresh with dew, it is a sight that sends the spirit upward in thankful prayer to the great Economist, the good Father under whose inspiration Man has accomplished so beautiful and so good a work. A ship is indeed a very beautiful object, but so also is a well-cultivated farm, diverAnd again: "Commerce is the machi-sified with grass fields, copses, and slopes of nery of exchange. It is the handmaid of agriculture and manufactures. It will not be affirmed that it is ever positively injurious-but it will be more or less useful as it co-operates more or less with the productive industry of the country. The mere carriage of commodities by sea or land is necessarily profitable only to the carrier, who is paid for it. It may be useful or not to others, according to circumstances. The farmer finds a railroad a great convenience, but he understands that it is better employed in carrying his crop, than in carrying away his seed-wheat and manure. "The commerce which should consist in carrying cotton-seed abroad, to be there grown, would not be so useful as that which is now occupied in exporting the raw cotton grown at home. We should easily understand, also, that the commerce thus Nor is our wonder less excited and our admiration awakened by that other evidence of the Divine skill guiding the human hand, the workshop of the artizan. Winding by some rugged pathway along the declivity of a mountain, we hear far below a subterannean thunder. The rigid leaves of the pine tremble above us. The forest quivers with the din. We descend, and here, fixed upon rocks, under the spray of a cataract, we discover the shop of the iron forger. A mighty hammer, in shape and bulk like a fragment of rock, leaps frantic at its task, moulding the glowing metal with a terrible |