The people of the loyal States paid this direct tax as they bore other
burdens in support of the Government, and I believe the taxpayers
themselves are content. In the light of these considerations I am
opposed to the payment of money from the Federal Treasury to enrich the
treasuries of the States. Their funds should be furnished by their own
citizens, and thus should be fostered the taxpayer's watchfulness of
State expenditures and the taxpayer's jealous insistence upon the strict
accountability of State officials. These elements of purity and strength
in a State are not safely exchanged for the threatened demoralization
and carelessness attending the custody and management of large gifts
from the Federal Treasury.
The baneful effect of a surplus in the Treasury of the General
Government is daily seen and felt. I do not think, however, that this
surplus should be reduced or its contagion spread throughout the States
by methods such as are provided in this bill.
There is still another objection to the bill, arising from what seems to
me its unfairness and unjust discrimination.
In the case of proposed legislation of at least doubtful
constitutionality, and based upon no legal right, the equities which
recommend it should always be definite and clear.
The money appropriated by this bill is to be paid to the governors of
the respective States and Territories in which it was collected, whether
the same was derived through said States and Territories, or directly
"from any of the citizens or inhabitants thereof or other persons;" and
it is further provided that such sums as were collected in payment of
this Federal tax through the instrumentality of the State or Territorial
officials, and accounted for to the General Government by such States
and Territories, are to be paid unconditionally to their governors,
while the same collected in payment of said tax by the United States,
or, in other words, by the Federal machinery created for that purpose,
are to be held in trust by said States or Territories for the benefit of
those paying the same.
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