To make
the General Government the instrument of carrying this odious principle
into effect would be at once to destroy the means of its usefulness and
change the character designed for it by the framers of the Constitution.
But the more extended and injurious consequences likely to result
from a policy which would collect a surplus revenue for the purpose of
distributing it may be forcibly illustrated by an examination of the
effects already produced by the present deposit act. This act, although
certainly designed to secure the safe-keeping of the public revenue,
is not entirely free in its tendencies from any of the objections which
apply to this principle of distribution. The Government had without
necessity received from the people a large surplus, which, instead
of being employed as heretofore and returned to them by means of the
public expenditure, was deposited with sundry banks. The banks proceeded
to make loans upon this surplus, and thus converted it into banking
capital, and in this manner it has tended to multiply bank charters
and has had a great agency in producing a spirit of wild speculation.
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