[CHAPTER XCIX.]
DISTRESS OF THE TREASURY: THREE TARIFF BILLS, AND TWO VETOES: END OF THE COMPROMISE ACT.
Never were the coffers and the credit of the Treasury—not even in the last year of the war with Great Britain (1814)—at a lower ebb, or more pitiable point, than at present. A deficit of fourteen millions in the Treasury—a total inability to borrow, either at home or abroad, the amount of the loan of twelve millions authorized the year before—treasury-notes below par—a million and a half of protested demands—a revenue from imports inadequate and decreasing: such was the condition of the Treasury, and all the result of three measures forced upon the previous administration by the united power of the opposition, and the aid of temporizing friends, too prone to take alarm in transient difficulties, and too ready to join the schemes of the opposition for temporary relief, though more injurious than the evils they were intended to remedy. These three measures were: 1. Compromise act of 1833. 2. The distribution of surplus revenue in 1837. 3. The surrender of the land revenue to the States. The compromise act, by its slow and imperceptible reductions of revenue during its first seven years, created a large surplus: by its abrupt and precipitous falling off the last two, made a deficit. The distribution of this surplus, to the amount of near thirty millions, took away the sum which would have met this deficiency. And the surrender of the land revenue diverted from its course the second largest stream of revenue that came into the Treasury: and the effect of the whole was to leave it without money and without credit: and with a deficit which was ostentatiously styled, "the debt of the late administration." Personally considered, there was retributive justice in this calamitous visitation. So far as individuals were concerned it fell upon those who had created it. Mr. Tyler had been the zealous promoter of all these measures: the whig party, whose ranks he had joined, had been their author: some obliging democrats were the auxiliaries, without which they could not have been carried. The administration of President Tyler now needed the money: his former whig friends had the power to grant, or withhold it: and they chose, either to withhold, or to grant upon terms which Mr. Tyler repulsed. They gave him two tariff revenue bills in a month, which he returned with vetoes, and had to look chiefly to that democracy whom he had left to join the whigs (and of whom he had become the zealous opponent), for the means of keeping his administration alive.
A bill called a "provisional tariff" was first sent to him: he returned it with the objections which made it impossible for him to approve it: and of which these objections were the chief:
"It suspends, in other words, abrogates for the time, the provision of the act of 1833, commonly called the 'compromise act.' The only ground on which this departure from the solemn adjustment of a great and agitating question seems to have been regarded as expedient is, the alleged necessity of establishing, by legislative enactments, rules and regulations for assessing the duties to be levied on imports, after the 30th June, according to the home valuation; and yet the bill expressly provides that 'if before the 1st of August there be no further legislation upon the subject, the laws for laying and collecting duties shall be the same as though this act had not been passed.' In other words, that the act of 1833, imperfect as it is considered, shall in that case continue to be, and to be executed under such rules and regulations as previous statutes had prescribed, or had enabled the executive department to prescribe for that purpose, leaving the supposed chasm in the revenue laws just as it was before.
"The bill assumes that a distribution of the proceeds of the public lands is, by existing laws, to be made on the first day of July, 1842, notwithstanding there has been an imposition of duties on imports exceeding twenty per cent. up to that day, and directs it to be made on the 1st of August next. It seems to me very clear that this conclusion is equally erroneous and dangerous; as it would divert from the Treasury a fund sacredly pledged for the general purposes of the government, in the event of a rate of duty above twenty per cent. being found necessary for an economical administration of the government. The act of September last, which provides for the distribution, couples it inseparably with the condition that it shall cease—first, in case of war; second, as soon and so long as the rate of duties shall, for any reason whatever, be raised above twenty per cent. Nothing can be more clear, express, or imperative, than this language. It is in vain to allege that a deficit in the Treasury was known to exist, and that means were taken to supply this deficit by loan when the act was passed."
These reasons show the vice and folly of the acts which a pride of consistency still made him adhere to. That compromise act of 1833 assumed to fix the tariff to eternity, first, by making existing duties decline through nine years to a uniform ad valorem of twenty per centum on all dutied articles; next, by fixing it there for ever, giving Congress leave to work under it on articles then free; but never to go above it: and the mutual assurance entered into between this act and the land distribution act of the extra session, was intended to make sure of both objects—the perpetual twenty per centum, and the land distribution. One hardly knows which to admire most, the arrogance, or the folly, of such presumptuous legislation: and to add to its complication there was a clear division of opinion whether any duty at all, for want of a law appointing appraisers, could be collected after the 30th of June. Between the impracticability, and the unintelligibility of the acts, and his consistency, he having sanctioned all these complicated and dependent measures, it was clear that Mr. Tyler's administration was in a deplorable condition. The low credit of the government, in the impossibility of getting a small loan, was thus depicted:
"Who at the time foresaw or imagined the possibility of the present real state of things, when a nation that has paid off her whole debt since the last peace, while all the other great powers have been increasing theirs, and whose resources already so great, are yet but in the infancy of their development, should be compelled to haggle in the money market for a paltry sum, not equal to one year's revenue upon her economical system."
Not able to borrow, even in time of peace, a few millions for three years! This was in the the time of paper money. Since gold became the federal currency, any amount, and in time of war, has been at the call of the government; and its credit so high, and its stock so much above par, that twenty per centum premium is now paid for the privilege of paying, before they are due, the amounts borrowed during the Mexican war:
"This connection (the mutual assurance between the compromise act and the land distribution) thus meant to be inseparable, is severed by the bill presented to me. The bill violates the principle of the acts of 1833, and September, 1841, by suspending the first, and rendering, for a time, the last inoperative. Duties above twenty per cent. are proposed to be levied, and yet the proviso in the distribution act is disregarded. The proceeds of the sales are to be distributed on the 1st of August; so that, while the duties proposed to be enacted exceed twenty per cent. no suspension of the distribution to the States is permitted to take place. To abandon the principle for a month is to open the way for its total abandonment. If such is not meant, why postpone at all? Why not let the distribution take place on the 1st of July, if the law so directs? (which, however, is regarded as questionable.) But why not have limited the provision to that effect? Is it for the accommodation of the Treasury? I see no reason to believe that the Treasury will be in better condition to meet the payment on the 1st of August, than on the 1st of July."