notice of the Convention some facts connected
with the early history of this fund. The pro-
position was undoubtedly expressed in very im-
posing terms. It appeared upon the face of it
to be perfectly equitable and fair. It imports
that the good people of the State, having con-
tributed a particular amount, now propose to
distribute it amongst themselves in the propor-
tion of their respective contributions. This ap-
pearance was however entirely fallacious. The
assumption on which it rested was altogether
unauthorized. The fund was not contributed
by the present counties of the State, nor by the
present population of the State, in the ratio in
which it is now proposed to distribute it. He
had stated on a former occasion that the fund
was derived from property belonging to the
State when its condition was very different from
what it is at present. Some of the counties,
now with a large population, had then no exist-
ence. As early as the separation of the colony
from the mother country, the government of
Maryland was entitled to a large sum in the
English stocks, which was the subject of earn-
est and constant prosecution, until its final re-
covery. Judge Samuel Chase was the first
agent employed by the State, afterwards Mr.
Monroe, (who was subsequently President of
the United States,) while he was in Europe, and
finally the late Judge Nicholson, who received
the proceeds of the claim. He had endeavored
to procure the various reports of these several
agents, but, strange to say, these interesting items
in our history were almost buried in oblivion
The earliest document he had been able to obtain
was the Journal of the House of Delegate
in 1806, in which was contained a report of a
committee upon the subject.
Mr. C. here read from the report the statement
of receipts and investments of this fund. It was
obvious, therefore, that the acquisition of this
fund originally, was not from contributions in
proportionate shares by the different portions of
the State in the ratio of their present population.
The amount, as is seen from the report, was
invested in stock, most of it in stock of the
Banks of the State. The charters of these
Banks had reserved for the use of the State
certain number of shares, to be subscribed for
by the State at its pleasure. The State availed
itself of this privilege from time to time, and it
was known to all who were acquainted with the
financial history of the State prior to the war
of 1812, that the actual expenses of the State
were defrayed from the proceeds of this fund,
and without any resort to taxation for that pur
pose. Those proceeds with the indirect source
of revenue, such as licenses, forfeitures and so
on, produced an amount adequate to the support
of the executive, legislative and judicial departments
of the government. When the increase
expenditures of the State, consequent on the
war of 1812, exceeded the revenue, the policy
Was unfortunately adopted of expending the
State's capital instead of manfully providing ad-
ditional revenue. Each dominant party feared
to hazard the loss of power by commencing |
system of direct taxation, when a very moderate
amount, if applied in aid of current receipts,
would have availed. The ruinous policy of exhausting
the capital was adopted. The stocks
from time to time were sold and the proceeds
applied to the demands against the governments
A part of these demands arose from the neces-
sity of providing for the military defence of the
State. Portions of the State exposed to attack
and invasion from a maritime foe, were actually
visited by the enemy, and at a time too when
the general government had neither men nor
money to provide the means of resistance, which
their obligations, no less than the destructive
character of the warfare waged upon us, required
them to furnish. The defence of the State de-
volved upon its own executive and military officers,
so far as the troops were to be found, and
upon its own resources so far as pecuniary
means were to be furnished. It is also known
that after the close of the war, when the funds
of the United States treasury became abund-
ant, these advances by our State were reimbursed.
The repayment was made expressly
on the ground that the amount advanced by the
State was applied to accomplish objects which
in an especial and exclusive manner belonged
to the United States, and which should have
been attended to and paid for by them. The
amount reimbursed must certainly be regarded
as subject to all considerations which would apply
to the original fund.
The Legislature aware of this, and also aware
of the fact that this fund was originally contri-
buted in a condition of the State very unlike
the present, and at a time when in all their in-
tercourse with each other, the several counties
acted as so many associated sovereignties, provided
for the distribution of this particular
fund, and this only equally amongst the counties.
Other revenues derived from taxation and
other sources, since the period when this fund
was raised, have been ordered to be distributed
upon different principles. Now, after the lapse of
so many years, it is proposed to lay violent hands
on this small portion of the State's revenues and
distribute it, not to those who raised it, but accord-
ing to the white population of the present time.
Mr. SCHLEY. Does the gentleman say this money
was contributed equally by all the counties?
Mr, CHAMBERS. I say it was contributed at
a time when every thing in the legislative department
was done by counties as communities'
If the gentleman will examine the early history
of the legislation of the State, he will find that
taxes were imposed by assessing the several
counties, as the General Government during the
confederation did the several States.
Mr. BRENT, of Baltimore. The proposition
now is to return what has been expended.
Mr. CHAMBERS proceeded. His object was
to show how erroneously the proposed principle
would work. He would illustrate it. Suppose,
a long-standing, wealthy firm, composed of half
a dozen partners, by each of whom a large
amount of capital had been advanced—say a
million of dollars. At a certain time they pro-
mote an intelligent, moral and industrious clerk |
