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4 a OOOO EAE _NO. 3. WATIONAL INTERNAL IMPROVEMENTS. Special of the President on River and ‘bor To THx SNArx AND Hovae OF RKPRESKNTATIVES— In returning to the House of Representatives, in Jroprations for ths opus’ preservation aaa ccmpetina ions for the r, and com; of certain heretofore commenced under authority of law,’ it became necessary for me, owing ‘to the late day at whieh the bill was passed, to state my objections to it very briefly, announcing, at the same Serene ceeeee ones sims rate discussion, at the present session gress; for, while by no means insensible of the arduousness of ths ‘task thus by me, I conceived that the two houses were entitled to an exposition of the considera- tions which had induced dissent, on my part, from their conclusions in this instance. The it constitutional question of the power of the government in relation to internal improvements been the subject of earnest difference ot opinion at every period of the history of the U Stetes. Annual and special messages of successive Presidents have been occupied with it, sometimes in remarks on the tig —ing topic, ani frequently in objection to particular bills. The confilcting sentiments of eminent statesmen, exprossed pe feangy cn or in conventions called exprestly to de- vise, foppeere some plan calculated to relieve the sub- ject of embarrassmeuts with which it is environed, ‘while they have directed public attention strongly to the ‘magnitude of the interests involved, have yet left unset- “ted the limits, not merely of expediency, but of conati- tutional power, in relation to works of this class by the general government. What is intended by the phrase ‘internal Co Ding smentat’? What does it embrace, und what exclude? ‘No such language is found in the constitution. Not only is it not an expression of ascertainable constitutional wer, but it has no sufficient exactness of mean to of any value as the basis of a safe conclusion, either of constitutional law or of practical statesmanship, President John Quincy Adaims, in claiming, on one oc- easion, after his retirement from office, the authorship of the idea of introducing into the administration of the af- fairs of the general government, ‘‘a permanent and re- gular system’? of internal improvements, s; of it as @ system by which ‘“‘the whole Union would have been checkered over with railroads and canals,’ affording “thigh wages and constant employment to hundreds of thousands of laborers;”’ and he places it in express con- trast with the construction of such works by legis- lation of the States and by private enterprise. It is quite obvious that if there be any constitutional power which authorizes the construction of ‘railroads and canals’’ by Congress, the same power must compre- hend turnpikes and ordinary carriage roadg; nay, it must extend tothe construction of bridges, to the draining of marshes, to the erection of levees, to the construction of canals of ei omg ieee a word, to all the ible means of the material improvement of the , by developing its natural resources, anywhere and everywhere, even within the proper jurisdiction of the several States. But if there be any constitutional power thus com- hensive in its nature, must not the sam® power em. Brace within its scope other kinds of improvements, of equal utility in themselves, and equally important’ to the welfare of the whole country? sident Jefferson, while intimating the expediency of so amending the constitution as to comprise objects of physical progress and well-being, does not fail to perceive that ‘‘other ob- jects of public improvement,”’ including ‘‘public edu- cation,’’ by name, belong to the same of powers. In fact, not only public instruction, but hospitals, ca. tablishments of science and art, libraries, and, indeed, every thing appertaining to the internal welfare of the country, are just as much choc of internal improve- ment—or, in other words, of internal utility—aa canals and railway: The admission of the power, in either of its senses, implies its existence in the other; and since, if it exists at all, it involves dangerous augmentation’ of the po- Kitical functions and of the patconage of the federal rument, we ought to see clearly by what clause or clauses of the constitution it is conferred. Ihave had occasion more than once to express and deem it | edad now to repeat, that it is,in my judgment, ‘to be taken for granted, fundamental proposition not requiring elucidation, that the federal government is the creature of the individual States, and of the peo- ple of the States severally: that the sovereign power in them alone it all the powers of the federal go- vernment are derivative ones, the enumeration and limi- tations ot which are contained in the instrument which organized it; and by express terms, ‘the powers not de- legated to the United States by the constifution, nor pro- hibited by it to the States, are reserved to the States re- spectively, or to the people.” Starting from this foundation of our constitutional faith, and proceeding to inquire in what part of the con stitution the power of make appropriations for the in- ternal improvements is found, it is necessary to reject all idea of there being any grant of power in the p:e- amble. Whenthat instrument says, ‘ We, the people of the United States, in order to form a more perfect | union, establish justice, insure domestic tranquillity, provide for the common defence, promote the gene- ral welfare, and secure the blessings of liberty to ourselves and our posterity,” it only declares the inducemants and the anticipated results of the things ordained and established by it. To assume that any- t more can be designed by the language of the = arable, would be to convert afl the body of the constitu- tion, with its carefully weighed enumerations and limi- tations, into mere surplusage. The same may be said of the phrase in the grant oi the power to Congress “to pay the debs and provide for the common defence and general welfare of the United States:”? or, to construe the words more exactly, they are not significant of grant or concession, but of restriction of the specific grants, having the effect of saying that, in laying and collecting taxes for each of the precise objects of power granted to the general government, Congress must exercise any such definite and undoubted power in strict subordina- tion to the Parpere ot the common defence and general welfare of ail the Sta“es, There being no specific grant in the constitution of a power to sanction approy ‘ations for internal improve- ments, and no general provision broad enough to cover any such indefinite object, it becomes necessary to look for particular powers to which one or another of the things included in the phrase ‘internal improvements” may be referred. In the discussions of this question by the advocates of the organization of a ‘general system of internal im- provements’ under the auspices of the federal govern- ment, reliance is had, for lhe justification of the mea- sure, on several of the powers expressly granted to Con- such as to establish post offices and post roads; ; to raise A to dis- per, the territory and other public property of the nited States. As to the last of these sources of power—that of dis- ing of the territory and other public property of the Batted san reg aad may be Senta Read it bit apg in the management of the public property, Dabieearvmeste beta: te the pusoesstal enced tion of the trust; but this must be the primary object of any auch improvement, and it would be an abuse of the trust to sacrifice the interest of the property to in- cidental "settee As to the other assumed sources of a general power over internal improvements, they being specific powers, of which this is supposed to be the incident, if the framers of the constitution, wise and thoughtful men as they were, intended to confer on Co 8 the power over & subject so wide as the whole field of internal im provements, it is remarkable that they did not use lan- guage clearly to express it; or, in otber words, that they id not give it asa distinct and substantive power, in- stead of making it the implied incident of some other one; for such is the magaitude of the supposed inciden- and its capacity of expansion, that any sys- tem established under it would exceed each of the others in the amount of expeaditure and number of the persons employed, which would thus be thrown apon the general mn may be illustrated by taking, as a single example, one the many thi comprehen: clearly in the idea of ‘a general eystem of in- terval, improvements,” namely, roads, Let it be supposed that the power to construct roads over the whole Union, According) to the suggestion of Presi- dent J. Q. Adams in 1507, whilst a member of the Senate ot Congress would have begun, of knowledge at the time, by constructing turnpikes then, as knowledge advanced, it would have constructed canals; and at the present time it would e been em- barked in an almost limitless scheme of railroads. Now, there are in the United States, the results of State or private enterprise, upwards of 17,000 miles of a] , and 6,000 of canals—in all, 22,000 miles —the total cost ‘of which may be estimated at little short of six hundred millions of dollars; and if the same works had been constructed by the fedsral government, sup- posing the thing to have been practicable, the coat would bave probably been not less than nine hundred millions of dollars. hws Sooke ond examen ployed ix superintending, managing and keeping up these can Shomer may be Stated at one hundred and twenty- six thousand, or bouts; to which are to be added seventy thousand oreighty thousand employed on the railroads in construction, making « total of at least two in pursuance of the state hundred thousand 8, vesenting in families aear- ly @ million of so employed on or maintained by this one clasa of public works in the United States. In view of all this it is not easy toestimate the diras- ‘trous conrequences which must have resulted from sach extended local improvements being undertaken by the ernment. State lation upon this sub t would have been suspended, and private enterprise ralyred, while a; tions for appropriations would Cove perverted the tion of Congress,exhausted the national treasury, and left the people burdened with & heavy public debt beyond the capacity of generations to discharge. Init ‘oocetvable that the framers of the constitation intended (hat authority, ew | after it such immense consequences, should be infes by implication as the incident of enumerated powers! | cannot think this and the impossibility of supposing it would be «till more glaring, if similar calculations were carried out in d to the numerous objects of material, moral and itical usefulness, of which the idea of internal im- covements admits. It may be safely inferred that if framers of the constitution had intended to confer the power tomake appropriations for the objects cated, it would Lave been enumeratea among the gtan' ‘expressly made to Congress. en, therefore, any one of the powers actually em merated is adduced of referred toas the ground of an assumption to warrant the incidental or implied power of “internal onan eel that hypothesi further admitted particular act mecessary to t) ranted power. when the object of a given road, the clearing of a parti colar chacael, or the construction of a particular harbor of refage, is manifestly required by the exigencies of the r military service of the country, then it seems niable that it may be (nag ig te Ap prebended in the powers to declare war, to provide an maintain & navy, and to raise and su armies. At the same time, it would be a misuse of these powers aad of the constitution to undertake to build Great system of internal improvements. And oning applies to the aesumption of any euch volves im that to establish post roads and to reg: If the particular itprovem-at, whether by land or rea, be necemary ty the exscation of {he couamerated powers, then, but mot otherwise, it fella ni to me une a violation the United States, had beea conceded: | | none exist, | fae litating commercial intercourse, and within the of To extent can poetry nytt wl len nt, on But there is one clause of the constitution in which ithas been that express authority to con- struct works of improvement hae been conferred United Statos, and to exe rehased by the conrent of the same shall be, for the erection of forts, magazines, arsenals. dockyards, and other need- ful buildings.’’ But any such siy will be seen to be groundless when this provision is carefully exa- mined and compared with other parts of the consti- tution. It is undoubtedly true that ‘like authority” refers back to “ exclusive legislation in all cases whatever,” an 8) to the District of Columbia; and there is the district no division of powers, as between the general and the State governments. In those places which the United States has porches or retains within any of the States —sites for -yards or forts, for exam process of the given State is still permitted to run for some purposes, and therefore the Veiga es Pig the bag ert is not al wolutely lect. it us ass for argument’s sake, That the jurisdiction of the United States in a. tract of land ceded to it for the purpose of a dock-yard or fort, by Virginia or Maryland, ia as complete as in that ceded by them for the seat of government, and then proceed to analyze this clause of the constitution. It provides that Congress shall have certain le Psi egg a bade all places in » sy inited for cer purposes. plies that Congress has otherwise the power to purchose, But where docs Con; get the power to purchase? Manifestly, it must be from some other clause of the constitution, for it is not conferred by this one. Now, as it is a funda- mental principle that the constitution is one of limited powers, the authority to pi one of the enumerations of Pitaitse br the otfecte tn negasd, Sr misioh logictat Ss o wi ive autborit id directly conferred, The ol expressions of the clause in question con- firm this conclusion, since the jurisdiction is given as to places bygone me poy peop ser hey str or pur- ; arsenals, and dock ls, are ‘abviously relecabio h recognized heads of specific constitutional power. There remains only the pt rase ‘‘and other needf - ings.” Wherefore ful? Needful for any possible purpose withim the whole range of the business of so- ciety and of government? Clearly not; but only such ‘buildings’? as are ‘needful’ fo the United States in the exercise of any of the powers conferred on Con- 8 oThas, the United States need, in the exercise of ad- mitted powers, not only forts, magazines, arsenals and dockyards, but also court uses, prisons, custom houses, and post offices within the respective States. Places for the erection of such buildings the Rost government may constitutionally purchase, and having purchased them, the jurisdiction over them belongs to the United States. fad if the general government has the power to build a lighthouse or a beacon, it may pur- chase a place for that object; and having purcl it, then this clause of the constitut ou fig jurisdiction over it, Still, the power to purchase for the purpose of erecting a lighthouse or beacon must depend on the ex- istence of the power to erect; and if that power exiats, it must be sought after in some other clause of the con- | stitution. From whatever point of view, therefore, the subject is regarded, whether asa questioa of express or implied power, the conclusion is the same, that Congress has no constitutional authority to carry on a system of inter- pal improvements; and in this conviction the system has been wy, opposed by the soundest expositorsa of the functions of the government. It is not to be supposed that in no conceivable case shall there be doubt as to whether a given object be or not @ necessary incident of the mijitary, naval, or an: other power. ‘As is imperfect, 0 ‘are his methods of ut his thoughts. Human lan; save inex. pressi the exact sciences, must always fail to pre- clude all possibility of controversy. Hence it is that in one branch of the subject—the question of the power of Congress to make appropriations in aid of navigation— there is lexs of positive conviction than in regard to the general subject; and it theretore seems proper, in this respect, to revert to the history of the practice of the government e very ea-liest acts of the first session of hat for the establishment and support of lighthouse , approved by President Washington on the 7th of August, 1789, which contains the following provi- s10ni t all expenses which shall accrue from and after the fifteenth day of August, one thousand seven hun- dred ard eichty-ning, in th? necessary support, main- tenance, and repairs of all lighthouses, beacons, buoys, and public piers, erected, poe or ‘sunk before ihe passing of this act, at the entrance of, or within any bay, inlet, harbor, or port of the United’ States, for ren- dering the navigation thereof easy and safe, shall be de- frayed out of the treasury of the United States: Provided, nevertheless, That none of the said expenses shall con: | tinue to be so defrayel after the expiration of one year from the ¢ay aforesaid, unless suc! thouses, boa- cons, buoys, and public piers shall, in the mean time, be ceded to, and vested in, the United States by the State _ or States respectively in’ which the same may be, to- | ther with the lands and tenements thereunto belong- ing, and together with the jurisdiction of the same.” Acts containing appropriations for this class of public works were pas: in 1791, 1792, 1793, and so on, from year to year, down to the prosent time, and the tenor of these acts, when examined with reference to other parts of the subject, is worthy of special consideration. It is a remarkable fact that for a period of more than thirty years after the adoption of the constitution, appropriations of this class were confined, with scare an apparent exception, to the construction of light. houses, beacons, buoys and public piers, and the stal age of channels; to render navigation it is true, but only by indicating to the cles in his way, not by removing those obstacles, nor in any other respect changing artificially the pre-existing natural condition of the earth and sea. It is obvious, however, that works of art for the removal of natu impediments to navigation, or to prevent their forma- tion, or for supplying harbors where these do not exist, are also means of rendering navigation safe and eacy; in supposable cases, be the most efficient, he most economicul, of such means, No ’ is not until the year 1824 that, in an act to improve the navigation of the rivers Ohio and Misiasippi, and in another act making appropriations for deepening the channel leading into the harbor of Presque Isle. on Lake Erie, and for repairing uth beash in Massachusetts bay, we have any example of an appropriation for the improvement of harborsin the nature of those provided for in the bill returned by me to the House of Repre- sentatives. It appears not probable that the abstinence of Con- xs in this respect is attributable altogether to consi- erations of economy, or to any failure to perceive that the removal of an obstacle to navigation might be not less useful than the indication of it for avoidance; and it may be well assumed that the course of legislation so torg pursued was induced, in whole or in part, by soli- citous consideration in regard to the constitutional power over such matters vested in Congress. One other peculiarity in this course of legislation is not less remarkable, Itis, that whew the general go- yernment first took charge of lighthouses and beacons, it required the works themselves, and the laodsou | which they were situated, to be ceded to the United States; and although for @ time this precaution was neglected in the caseof new works, in the sequel it was | provided by general laws that no lighthouse should be constructed on any site previous to the jurisdiction over the same being ceded to the United States, Constitutional authority for the construction and sup- port of many of the public works of this nature, itis | certain, may be found in the power of Congress to maintain a navy and provide for the general defence: but their numbrr, and, in many instances, their loca- tion, preclude the idea of their being fully justified as Recemary and proper incidents of that power. “And they do not » susceptible of being referred to any other of the specific in Congress by the constitution, unless it be to raise revenue, in t0 {ar as this ‘relates to navigation. The praciice under | all my predecessors in office, the expross admissions of | some of them, and absence of denial by any, sufficieatly manifest thelr bewef that the power to orect light houses, beacons and ns, piers "’ erec y bay, inlet, harbor or port of the United States for rendering the navigation ereof easy and safe,” If it be contended that thix review of the history of appropriations of this class leads to the inference that, Leyond the purposes of national defence and maintain: ance of a navy, there is authority in the constitution to construct certain works in aid of navigation, it is, at the same time, to be remembered that the conclusions thus dedured from cotemporaneous construction and continued acquiescence are themselves directly a of limitations of conatitutionality, as well as ox the nature and the description of those ve aide to | principle as to ite spptleation: ig | established legislative uw: | Congress may construct lighthouses pa beacons, od provide, as it does, other means to prevent shipwrecks on the coasts of the jin the ernment cannot is, and make improve. | Soeats of rivrs and barbors of tho nature sud to the degree of all the provisions of the bill of the last session of 7 To justify such extended power, it has been urged that, if it be comstitutional to appropriate money for | the purpose of pointing out, by the construction of lighthouses or beacons, where an obstacle to navigation | existe, it is equally so to remove such obstacle, or to | avoid it by the creation of an artificial channel; that if the object be lawful, then the means adopted solely with reference to the end must be lawful, and that therefore it is not material, constitutionally ing, whether a given obstruction to navigation be indicated for avoid. | ance, or be actually avoiled by excavating a new chan- nel; that if it bea legitimate object of expenditure to preserve a ship from wreck by means of a beaconipr of Tevenue cutters, it must be not lens so to provide * of safety by the improvement of harbors, or, where non heir srtifelal conatraction, and thence argument ‘naturally passes to the propriety of im- proving river for the benefit of internal navigation ‘aune all these objects are of more or lens importai to the commercial as well os the aaval interests of the | United States, ‘The answer to all this is, that the question of o pred and easy communication to and through of (he country ts substantially the name, whether ly land or water: that the uses of roads and canals in iting by com. | monity of interests the most remote quarters of the country by land commanicatioa, the same io their watore as the uses of aavigible fore, the question of the facilities ide to be provid ed to pavigation, by whatsoever , ie bat sabdivi won of the great question of (oe comstitutionslit, expediency Of in'ernal improve: ora ment. Io conficwmation of tam, ning } "inne 1 | ple | te SAT ees are aatrtact ects of fy that of the year. 1833, under the adurluls- of President Jackson, by including her sad providing fer ta. one bill an Vall iver and’hurker soe, ‘as road works, recognises the fact that they sae abe Sennabes of same great subject of internal ones. the pepulaticn, and wealth of the coun- try increased, and J extended into remote re- , the ley va for additional means of communica- ion impressed itself upon all miobs with a force which had not beene: at the date of the formation of the constitution, and more and more embarrassed those who were most anxious to abstain scrupulously from any exercise of doubtful power. Hence the recognition | in ‘the messages of Presidents Jefferson, Madison and — Monroe, of the eminent desirableness of such works, with ‘the admission that some of them could lawfully and | should be conducted by the general government, but with obvious uncertainty of opinion as to the lige be- — such - ied ke catacuie such as are not— such a8 oug! receive appro} ions from Congress, and such as ought to be seosignes, to private enterprise or the legislation of the several States, This uncertainty has not been removed by the prac- tical working of our institutions in later times; for al- Sous the acquisition of additional territory and the application of steam to the propulsion of vea-els have gest magnified the importance of internal commerce, fact has, At the same time, complicated the ques- tion of the power of the general government over the present subject. In fine, a careful review of the opinions of all my predecessors, and of the tive history of the coun- does not indicate an; ed rule by which to decide it, of the infinite va, ible river and har- f w af of bor improvements, are within the scope of the ane by the constitution; and the question still re- unsettled. President Jackson conceded the con- atitutionality, under suitable ciroumstances, ot the im- provement of rivers and barbors, t! agency by bre and bape Polk rag the meoptie y o ‘establishment uppert, by a) ions from the treasury, of t-hhow gpd and yu buoys, other improvemes ; within’ the Bape, falls ait aae of ocean and lake coasts immediately con- nected with foreign commerce. But if the distinction thus made rests upon the differ- ences between foreign and domestic commerce, it can- not be restricted thereby to the bays, inleta and harbors sh Saeronaaay Nest, eee (01 commerce haa already penetrat usands of miles into the interior of the continent, by means of our great rivers, and will continue so to extend itself with hepa f+ ama settlement, until it reaches the limit of navi ity. At the time of the adoption of the constitution the vast i ". stripped even the mont sanguine anticipations of the fa- ps my hgh vat gee and it illustrates the that no rule ia which undertaken to dis te, 80 far as regards river and harbor improvements, between theAtlantic or Pacific coasts and the great lakes and rivers of the interior regions of North America. Indeed, it in (ip! erroneous to suppose that any auch discrimination a ever existed in the practice of the ment, To the, contrary fof which is the significant fact before stated, that when, after abstaining from all such appro- priations for more than , Congress ent upon the policy of improving the navigation of rivera hr ei it commenced with the rivers Mississippi and Ohio. ‘The Congress of the Union, adopting, In this respect, one of the ideas of that of the Confedeestion, haa taken heed to declare, from time to time, as occasion required, either in acts for disposing of the public lands (ty the Territories, or in acta for admitting new States, that all navigable rivers within the same “‘shall be deemed to be and remain public highways.’ Out of this condition of things arose a question which at successive periods of our public annals has occupied the attention of the best minds of the Union. | This question is, what waters are public navigable wa. ters, #0 a8 not to be of State character and jurisdiction, but of federal jurisdiction and charaoter, in the intent of the constitution and of Congress? A proximate, but imperfect answer to this important question is furnish. | ed by the acts of Congress and the decisions of the Sa. | reme Court of the United States, defining the constitu. | ional limits of the maritime jurisdiction of thi government, That jurisdiction is entirely inc of the revenue power. It is not decived from istit measured by. | In that act of Congress which, in the first year of the government, organized our judicial system, and which, whether we look to the subject, the comprehensive wis! | dom with which it was treated, or the deference with | which its provisions have come to be regarded, is only second to constitution itself, there is a section in which the statesmen who framod the constitution have laced on record their construction of it in this matter. t enacts that the district courts of the United States “shall have exclusive cognizance of all civil cases of admiralty and maritime jurisdiction, including all seizures under the law of impost, navigation, or trade of the United States, when the seizures are made on waters which are navigable from the sea by vessels of ten or more tons burden, within their respective districts, as well as upon the high seas.’’ In this cotemporaneous , exposition of the constitution, there is no trace of sug- gestion that nationality of jurisdiction is limited to the fea, or even to tide waters. ‘The law is marked by a sagacious apprehension of the | fact that the great lakes and the Missiasippi were navi- gable waters of the United States even then, before the acquisition of Louisiana bad made wholly our own the | territorial greatness of the West. It repudiates, un- equivoeally, the rule of the common law according to | which the ‘question of whether a water {s public navi- gable water or not depends upon whether it is salt or not, and therefore in a river confines that quality to tide-water—a rule resulting from the geographical con diton of England, and applicable to an island with small and narrow streams, the only navigi portion of which, for ships, is in immediate contact with the ocean, but wholly inapplicable to the great inland fresh water seas of America, and its mighty rivers, with secondary branches exceeding in magnitude the largest rivers of Great Britain. At a later period, it is true that, in disregard of the more comprehensive definition of navigability afforded by that act of Cecazest it was for a time held by many that the rule established for England was to be received i ited States, the effect of which was to exclude from the jurisdiction of the general government not only the waters of the Mismssippi, but also those of the great lakes. To this construction it was with truth objected, that, in 80 far as concerns the lakes, they are in fact seas, al- though of fresh water; that they are the natural ma- rine communications betwe series of ulous States, and between them and the possessions of a fo- | reign nation; that they are actually navigated by ships of commerce of the st capacity; that they had once , the scene of foreign war; and n arbitrary doctrine of the tech . to exclude such waters from the juris- diction of the general government. In to the river Mississippi, it was objected that, to draw a line across that at the point of ebb and flood of tide, and say that the part below was public navigable water, and the part above not, while in the latter the water way at least equally deep and navigable, and its commer rich asin the former, with numerous ports of foreign entry and delivery, wag to sanction a distinction artili cial and unjust, because regardless of the real {act of navigabilicy We may conceive that some such considerations led to the enactment, in the year 1846, of an act, in addition to that of 1789, declaring that ‘the district courts of the United States shall have, possess, and exercise the same jurisdiction in matters of contract and tort, arising in, upon, or concerning steamboats, and other vessels of twenty tons burden and upwards, enrolled and licensed for the coasting trade, and at the time em ployed in business of commerce ‘and navigation be tween ports and places in different States ana Territo- ries upon the lakes and navigable waters connecting anid lakes, as is now possessed and exercised by the , raid courts in cases of the like steamboats and other vessela employed in navigation and commerce upon the high seas or tide-waters, within the admiralty and mari time jurisdiction of the United States.” It in observable that the act of 1789 applies the juris diction of the United States to all “waters which are able from the sea’’ for vessels of ten tonw burden iat of 1845 extends the jurisdiction to enrolled vewsels of twenty tons burden, on the lakes and navi gable waters connecting said lakes, though not waters navigable from the sea, provided such voasels be em between places in different States and Terri ‘Thus it appears that these provisions of law, { prescribe conditions by which to determine whethe waters are public navigable waters, subject to thi thority of the federal government. The conditions in clade all waters, whether salt orfreah. and whether of sea, lake or river, provided they be capable of navigation by versels of a certain tonnage, and for commerce either between the United “tates and foreign countries, or be. tw ny two or more of the States or Territories of the Union. This excludes water wholly within any par ticalar State, and not used as the means of commercial communicstion with any other State, and subject to be improve: or olstructed, at will, by the State within whieh it may happen to be. The constitutionality of these provisions of atatate has been called in question. Their conatitationality bax heen maintained, however, by repeated decisions of the Su Court of the United States, and they are, there. ‘ore, the law of the land by the concurrent act of the legislative, the executive, and the judicial departments of the governmen' t. Regarded as affording « criterion of what is navigable water, and as such satloet to the maritime jurisdiction of the Su) Court and of |, these acta are ob jgctionable in this, that the rale of nav ity nan ar rary one; that Congress taay repeal the present ruie ” anew one; and that thus « legislative defini tion will be able to restrict or enlarge the limite of con stitutional power. Yet this varia of standard seems inherent in the natare of things. At any rate neither the frst Congress, composet of the statesnven of the era when the constitution was adopted, nor an subsequent ) has afforded us the means of «' taining greater precision of construction as to this part of the constitution. This reflection may serve to relieve from undeserved reproach an idea of one of the greatest men of the re public, President Jackson. fie, seeking amid all the ficulties of the subject for some prac rule of ac- tion ia rd to appropriations for the improvement of rivers and harbors, prescribed for his owa official con duet the rule of confining such appropriations to . Places below the ports of entry or delivery established y law." He raw clearly, ax the authors of the above meutione! acts of 1789 and 1845 did, that there is no inflexible ma ral line of discrimination between what ix national ant bat local, by means of which to determine absolutely and ©: at what on a river the jurisdiction of the U States shall ond. He wed, ao of course admitted, that the ation, while conferring on the government nome power of action to ren der oa ton safe and easy, had uf necessity left te Con | gress much of discretion in this matter, He confided in See to exercian that discretion wisely, i mah perenittiog imael! to wa ppose it poswibie that of satry oF delivery would ever be tata dlished by fer the etpressaad only purpow of evading the com | i Jt remaina, therefore, to comader the measure Of decretion in Lee enercion By o the | own resources, or by recurrence to the provision of the | constitution which authorises the States to lay duties of __NEW YORK HERALD, THURSDAY, JANUARY 4, 1855. . a ¥ ad har Power to provice for the improvement of ality , and also that of the legitimate re-poos executive in the same relation In matters of tion of the moat wmqm eonstitutionality, it is always material to com, amount of stionable ewhat weapy blie money shall be appropriated te” I particular object. The same consideration ap, with augmented foree to a class of appropriations wh are their nature peculiarly prose to run to exena. and which, being made in the exercise of incidental pow- ers, have ‘intrinsic tendency to overstep the bounds of constitutionality. fan appropriation for impreving the uavigability of a river, or deepening or protecting a harbor, Lave refer- ence to military or uaval purposes, thea ita rightfulmess, Whether ia amount. or iu the objects to which it ia up, plied, depends manifestly on the military or naval | exigency ; and the subject matter atfords ita own mea sures o! legislative discretion. Bat if the appropriation | for such an object have no distinct relation ve mai li- tary or naval wanta of the country, and is wholly, or even mainly, intended to promote the revenue from com> | merce, then the very vagueness of the proposed purpose of the expenditure constitutes a perpetual admonition of reserve and caution, Through disregard of this, it is undeniable that in many cases appropriations of this | nature have been made unwisely, without accomplishing | beneficial results conumensurate with the cost, and sometimes for evil rather than good, independently of thori dubious relation to the coustitution. Among the radicat changes of the course of legislation | in these matters, which, in my judgment, the public interest demands, one is a return to the primitive idea of Congress, which required in this class of public works, anin all others, a conveyance of the soil, and a cession Of the juriadietion to the United States.’ T think this | condition ought never to have been waived in the case of any harbor itprovement of a permanent nature, as where piers, jetties, sea walla, and other like works are to be constricted and maintained. It would powerfully tend to counteract endeavors to obtain appropriations fa local character, and chiefly calculated to promote individual interests. The want of such a provision is the occasion of abuses in regard to existing works, ex- posing them to private encroachment without sufficient means of redresas by law Indeed, Ihe absence, in such cases, of a cession of jurisdiction has constituted one of the constitutional objections to appropriations of this class, It is not easy to perceive any sufficient reason for uiring it in the case of arsenals or forts which does equally apply to all other public works; if to be con structed and imalntained by Congress in the exercise of & constitutional power of appropriation, 1d be brought within the jurisdiction of the ty i ‘There is another measure of precaution in regard to such appropriations which seems to me to be worthy of the consideration of Congress. It is, to make appropria- tion for every work in ® separate Dill, so that each one shall stand ‘on its own indepenient’ merits, and, if it ass, shall do so under cirsumstances of legislativ *scru- ny, entitling it to be regarded as of gencral interost, nd a proper subject of chargeon the treatury of the a. During that period of time in which the country had not come to look to Congress for appropriations. of thix nature, several of the States, whose productions or geo- graphical position invited foreign commerce, had enter- ed upon plans for the improvement of their harbors b: themselves, and through means of support drawn di- rectly from that commerce, in virtue of au express con- stitutional power, needing for its exercise only the per mission of Corgress. Harbor improvementa thus con- structed and maintained, the expenditures upon them | being defrayed by the very facilities they afford, are a | voluntary charge on those only who see fit to avail | themselves of wuch facilities, and can be justly com- plained of by none. ‘On the other hand, so long as,these improvements are carried on by appropriations from the treasury, the ben its will continue t> enure to those alone who enjoy the ities afforded, while the expenditure will be « bur den upon the whole country, and the discrimination a double injury to places equally requiring improvement, but not equally favored by appropriations. ‘These considerations, addot to the riobarrassments of the whole question, amply suffice to suggest the policy of confining appropriations by the general goverament to works necessary to the executon of its undoubted powers,and of leaving all others to individual enterprise, or to the reparate States, to be provided for out of their ch ton: with the consent of Congress. bagi FRANKLIN PIERCE. Wasmineton, December 30, 1854. FINANCIAL AND COMMERCIAL, | MONEY MARKET. | Wepnespay, Jan. 3-6 P.M. Wall etreet was dail and gloomy this morning. At the first board the bears had full control of the market. Indiana 5’s fell off 2 per ceut; Virginia | 6's, 1; New York Centrai Bords, }; Delaware and Hudson, 1; Canton Company, j; New Jersey Zins 4; Cumberland Coal, }; New York Central Rail- | road, 4; Hudson River Railroad, 4; Reading Rail- | road, 4; Galena and Chicago Rutlroad, 64; Erie | Railroad, 3; Harlem, 4; Erie Income Bonds ad- vanced j per cent; Nicaragua Transit, 4; New Jer- | sey Railroad, 1. Erie and Reading were brought out | | in large lots, and were freely offered at the decline. | The market, on the whole, was very blue, and the | prospect is by no means flattering. The numerous failures reported yesterday have created a great ex citement in the public mind, and renewed the ap- prchensions entertained earlier in the season. The panica caused by previous failures, both of private individuals and of banks, had almost entirely sub- sided, and the impression was becoming prevalent that a little longer period of quiet would restore confidence, and that we should pass through the pressure without many more large failures. None of theee anticipations have been realized, but, om the contrary, we find upon the first business day of | the new year the announcement of several | failures, affecting interests in every section of the | country. The failure of Messrs. Wadsworth & | Bheldon may carry down houses in Chicago and St. Louls with whom they were connected in | business. As bankers, Wadsworth & Sheldon wore — lorgely engaged in collections for bankera in West- ern cities, and the probability is that extensive | lonees have in this way been realized. The failures which have taken place in this city among private banking houses, have nearly destroyed confidence in that claes of capitaliats, and will throw into the regular incorporated banks an immense amount of business which heretofore has been conducted by individuals. We have encouraged the establishing of private banking houses, believing that they would act aa # check upon tke fluctuations of our banking nality of the | | goverpmen’ HOME YEArF wince relative to the duty which should, under the present tariff, be levied | on concentrated tyrup or molasses. There were rumors of other failures to-day, but we could not trace them to avy rellab’e source. | At the eecond board there was a reaction in the | market, and nearly all the ‘aucies improved u trac tion. Nicaragua went up { per cent; Cumberland “onl, 4; New York Central Railroad, 4; Erle Rail ‘4,1; Hodson Railroad, 4; Reading Railroad, 1. © was considerable baoyancy at the close. tranractions at the office of the Assistant t of this port, to day, were as follows:— ‘ Treseure 00 ‘ance of Mr. Loggett was noticed Tt is attributed to his peountary posses ba as they are of @ private oba- ai eee rd ‘rehensiona relative to his personal asfety. ‘The Basp. ‘re City Bank discounted his paper just as it would th. «i of avy other active business man of good credit, g “48 6906 endorsers. It was a regular business teonsse ‘90, although ra- ther extravagant in amount fors >aaklug institu tion with » emall capital. Ths ender, mente of Mr. E. F. Purdy were not obtained by any Misrepreaen- , tation, and it is yet to be shown that Mr. Loggett in | a defaulter in any shape. The managem: ut of the | liberally for a director. The New Orleans Canal and Banking Comp. ny have declared a semi-annual dividend of five per cent; the Firemen’s Insurance Company, of Boston, 8 semi-annual dividend of ten per cent. The warrants ontered at the Treasury Depart- ment, Washington, on the lat inst., were as fol” lor For the redemption of stock... For paying other treasury debts For covering into the treasury from For covering into the treasury from customs. 08: For the War Department. , 14 at For the Interior Departmen’ +. 26,617 7 The following summary will show the aggregate condition of the Baltimore banks now, as compared with January, 1854:— $25,084 00 59,008 BZ vin... 206,524 24 5,008 45 089 865 70,343 2,430, 846 4 2,28, 708 Deposits... \ 6,854,629 ‘The comparative increase and decrease in these balances is as follows: — Increase, $084,209 Capital. B17 Deposit... 2... 1/1088 Investments 108,627 We learn that Measrs. David Taytor & Uo., the ex tensive shoe manufacturers of Lyna, Mass., have re sumed payment. ‘The following stock sa!oa were made in New Bod tord on the 30th of December :~—5 shares Merchants’ Bank at 107; 10 do., 106{; 17 shares Marine Dank, 1044; 7 ahares Mechanics ’Bank, 1054; 3 do., 1024. The Bank of Charleston has declared a dividend of four per cent on its capital stock for the last six months; the State Bank a dividend of four per cent for the last six months. The South Curolina Bank bas declared a semiannual dividend of $160 per share; the Pecple’s Bank a semiannual dividend of seventy five cents per share. The Bauk of George- town a semi-annual dividend of $1 25 por share; the South Caroling Insurance Company # semi-ancual Cividend of @1 per share; the Commercial Bank of Columbia a semi-annual dividend of $1 per share; the Columbia Gas Company # dividend of $1 50 por share of $25 for the last six months. Ata meeting of the creditors of the Glendon Rolling Milla Company assiguees were chosen debts of from $500 000 to $500,000 were proved. The New Bedford and Taunton Railroad Company have declared s semi-annual dividend of three por have passed their usual January dividend. The Naumkeag Manulacturing Company have de- clared @ semi-annual dividend of four per cent; the Lancaster Mills two per coat; the Sandwich Glaw Company five per cent. One of the largest éry goods houses in Boston has isaued a circular to its customers aunoua slag that from and after its date ali goods will be sold on # credit of six months. The annual report of the directors of the An droscoggia Railroad shows that the grom earniags of the road for the year, after deducting amounts pald tothe Androscoggin and Kennebec, and Atlantic and St. Lawrence roads, were $29,782 17; gross ex- penses for same time, $16,975 09-leaving « net ex- cers of $12,807 28. During the year 22,023 pas sengers and 4,154 tons of freight were carried | over the road, being an increase in passengers of 2A3L and 94 14-100 tons of freight. The whole | number of miles tun daring the year have been 30,400, and without lons of life or injury to elther pasecnger or employé. In the construdtion and equipment of the road up to the date of the report, the expenditures wore #9 6 22; to meet this the receipts were, $251,072 o2—iabilities remaining, $111,624 90, to moet which the company has assets to the amount of $97 52. The revenue collected in the district of Boston ant institutions, by distributing capital and giving the Ciarlestows for Dec., 18b., was $500,437 07 commercial community facilities for doing busine-s 'ecember, loos 451,617 04 when the managers of our Wall street banks took | tieorenne 6s it into their heads to cut down their dissoants; but por the last six montha of bio we moat admit that so far these concerns have been | a failure. They have involved themselves in every species of speculation; have been engaged ia all sorte of schemes, and have been as much the cause as anything else of the inflation and ultimate broak down inthe railroad projecta of the day. About * half-a-dozen of the private banking houses started in this city during the past five yours, bave failed. How many more will follow time only will de termine. About twelve monthe since one of those private banking concerns thought best to attack the Herap on account of the course it waa pur. suing im relation to the enormous expansion of rail rowd credits, and the policy of corporations loaning their credit to railroad companies. At that time | the house referred to, and all others engaged (n the same basiness, were fearfu! that some of their pro- jects would suddenly collapse, and it became neces. sary that any opposition should be put down, or its sathority and influence destroyed. Many who wore induced by the fanciful representations of these ne- gotiators of railroad loans to make such iavest ments have deeply regretted it sinve. Taey have ‘ned too late that all is not gold that glitters, and that even railroad bonds are frequently no bet ter than so much fancy stock. Had our advice at that time been followed, we should not have had so many disasters to record since, and the revulsion would have been comparatively moderate. ‘The suspension of Messrs. Foster & Stephenson, and of Mr. Winthrop G. Kay, was caused by the fall ure Of Merara. Belcher A Brothers, ugar refiners, of St. Lois, an stated yesterday. The Messrs. Belcher were in the habit of drawing to «large amount on both of the houses in this city, above named, and in | the regular course of business drafts were acoepted without mncb regard to he sum, the acceptors having tail confidence in the ability of the drawers to protect them at maturity. Lately Mesa. Foster & Ste phenson were drawn on so heavily that they object ed to accept, when they were informed by the Mensra. Belcher that all the drafte drawn by them were on their house, aod that they were not draw ing, a anual, on any other house ia the city. This restored confidence again, and drafts were freely w cepted for atime loneer. At last the failure of the Meenrs. Reicher was aunosnced, when it eppesred that they bad been drawing on Mr. Ray tom larger extent than ueual, and we believe alto upon other | houses in this city. The howse of Belsher & Pro there, of Ht Louls and New Orleans, wae one of the pad wes well known ‘ur ie important ealte wtih the Fame time in 1 Decrease in xix month« rn A cireular recently iasued by the Buxton, C meord and Montreal Ratirosd Company states the earnings of that rosd for the nix months ending October 1, at #15 76 $157,014 50, and the expenses, inclading $14,741 25 expended im extraordinary repairs and jvosses wy fire, at $81,151 17, leaving net earnings for the six months $75,483 33. This has been appropriated as follows Payment of coupons on bone 22.97! Interest on floating devt 0,780 47 Fxtre interest, commissions, ke. oo same,. 11,255 00 Div. of & per cent on preferred stock 19.510 $65 402 Leaving & surplus of S124 6 Tota $75,583 a3 The floating debt has been reduced from $941,278 12 to $257 365 60 daring the «ix months, ond to meet this the directors estimate that $100,000 eet cattle, exter will be received in the disposal of preferred mock and conversion of shares, and the company Lave on hand $173,600 of mortgage bonds unsold. The net earn ings for the six months are fully op to the extimate made at the last annoal report, which was #150,000 for the year, and the first month of the second tai! stows « rtill larger ratio of gain, being $9,100 over the corresponding month of 1451, The agaregate movement of tee banks of New Hempahise, cn the fires Monday of Loc cording to reports made to the Secretary compared with that for March ancered comparative st ytement teven or New Hiwrenne March, 1660 ist en 14, f Btete inte the pecie on band Hee! eatate ‘ ah Iho OTM 1" Wille of other binke = 1 omy / It will be seen that toe incresse io each depart ment has been, during the past four yours, a very gieatper cent, particalanly in capital, disevaste depesite and circulations. An inci ease of nearly one and a half million is circulation bus been pronfed for by an inerewe of only $16,000) tm mpecie aad $19,900 im redemption depowity. This shows great wrakaew oo the part of the banks of thet State which may some lay prove their dewtroction, We bave very litte faite in Uae of beoklog ayrioms deporita 6 ’ seston of we } largemt in the eoontry io the mage refining basionm, _ of the New Hegtacd tates. Accerding to the Memags of tee Governor @f 19 rate of hilasouri to the Legislature of that Btate, it appease that the total amount received in the Treasury ‘The two years euding Oct., 184, was The total amount expended for time was, The totai 1hbt The surplus revenu balan ts @ntinated at in the Treasury. 435,150 Se ‘The revennes collected under the present «ystems of taxation are more than sufficient to moet the curren! expenses of the State government, and they are likely to be eahanced hereafter, yot » reduction Of taxes ty not recommended. It is deemed more judicious to apply this eurplas to the reiemption of the ou‘standiug debts of the State, For the week ending Saturday, Dec. 23, there was transported from the whole Cumberland coal region 198.09 tone, ani since the lit of January last, 646,004 04 tons, of which 495,891.02 tons were trane ported over the Baltimore and Ohio Railroad. criminal nature, his friends falling off in the a» the Bal:imors and Ohio Ralilread, The vipments ly owing to the atrike oa The water hae been drawn out of the canal to mike ropatra, $1000 C17's, '70ex. int 9000 Ky 6's 11000 5000 15000 10000 . , 5000 Brie Inc bowdy Empire City Bank are at fault in discoum lag 40 | {3000 Krie bda,’8i.08 1600 N ind bonds. . 20000 TH Cent RN ba 900 do... #8 1000 8 ¥ Coa RR be 5000 do...... bs 3000 do... B80 600 NY Cont cert’s 100 aba D & H Canal 16 Am Exeb Paok do... 1000 Lud State 5's, cr " 100 Canton Co., 60 Flor & K Jt St 200 N Jersey Zine Stock Exchange. Wepwesnay, Jan. 3, 1866 a2 100 she Ch €1Co.860 aT mo 7 190 Gold Hi Miae 1 bs oT 16 N Y¥ Cent Ik BING 560 50 1h luo aa SON J Zine... i, 5 Metropol'n Bank do...+.. b8 wlo Nic Transit Co i oe 60 do 3% 60 do «0 BTN 676 do.,....88 13% 0 do. e 21% 100 do .....b60 14 do... 880 27K 660 do bio 1 ¢ 3 50 Penn Coal Co.b20 | 100 Cumb Coal Co.n3 60 do vlo 200 do...,.opg Tig 100 do 10 Pan'a RR ex div 72 00 do... ...88 250 do.,.,..000 50 do, «3 200 do.,...b00 200 do .....b80 50 do. ees, wh GD 100 do 60 Chic ARIRR.bS 16 150 60 sessed BROOND BOARD. $1000 C174, "TO.ex.in 82 OOeha N ¥ Coa RR BL 19000 II Cen RK bay 64% oe WANS she D & HCanal 106% ait 1000 Gold Hill Mine te 8 200 Nic Transit. bib 14 . Sa 300 Harlem RR, boo 24 a10 Ny 100 00 so, DO bIO GAM 100 Cumb Coal. . 960 10 do bo SAN 200 do ‘ 100 Hud Riv RR bb B46 260 do bso 200 Keating RE “pe m’ 0 do.......nb 200 do abt 12K 100 do... 100 do op 724 100 do... be <« 100 d3..43 phe Th CITY TIRADE REPORT, Wroweapay, Jan. 30 P M Amiit.—The market ha» remained joactive since the new year came in, while prices were without change. Brea pert vious rate ‘The rales embraced about common to good State, at former que Canadian at Abo vee m, yor tions, $0 25 Flour wa easier to purchase at pre~ prices closed with great steadiness. 000 a 6,000 bbla , imebudi $9 50, aod ex ye | , with Southera at $9009 $11 76, and 28 » bond, and at $10 in bowd 060 bushels Canadian white were sold, at $2 15; 1,600 do. Kouthern red at 8205, im atore: 3,606 do, white Missourt at 2 875 end 600 Long tnland red at$2, Meni—200 bbls. New Jersey sold at $4 25 Rye flour was unchanged A The market wae firmer, with sales of about 65,000 bushels, including Western mixed, ot $10 $1 01, and southern Jersey white and yellow at 6101 a $102, Onte ranged from Bie. 9 10e Cop van Halen of 400 bags Klo were wade, at OKo. © raged pork months « for Lond for eight ra oge ting 406. per foot ot her article be dull at 80.4 40 for No, | « ' Th $2 87 for Grand Rank mark more active, and the wales 060 bales closing at ‘Ke. de he Atinutic’s news. lace offer rk, at et 80 0 5 #4 60 for No Frvit.—The market was quiet and prices unchanged Guswy Cron han again declined in price, the last salen having been made at lie. a 11) Hewy —There no ehange to nates In December ultima the of Aweriean. arrive 1,041 bales hind ond th prices otroular to their embraced 421 talon ‘undressed, + lniter price for an extra choles e at 0200 0 $245, lravin the etock in tr nthe Ist inet 1.080 bales undreas ed, and 2,479 do. ood, = conwiderabie portion of whieh i bell for higher prices. The styck of Manila on the Int December was 7,400 bales arrived «ince, powe, Inv th On Case 845 per ton Hams » OMe atl Tat ww week tail, toge senor of m—Pork wae dull, ere in moternte nand, prices are neminal 200 bbis. thin oblong were made at tnd contract for 1,000 salen of 900 to 400 Bix prime sold wt $12 25 + and thoulters at for prime, Deel wea 20 ble yim mene country beef hams wore 1 arranged brass pork was pearce t sued to be s gool shipping demand for Kurope » pour neluded ale ie ab Lae | 100 bbls, Onker sand + 16 n DROVE YARD, (ered uring the werk inde ry whence the supplies .) ad ee Yreu a 409 oo od Virginia, op foot vo New Jersey, on fr peat ~ | ly the Erie Kt Hae calves rema bnet, De In vow heer and lamnbe Seep. a for rm hiberal supply 4 learn be “a nee our leat, olerior desceiptions of " ( romuen & ” ” ” Sd a ” 6 7 1% et 1H s@ 1% 2 6e 2m eo ‘Oo ste sb 10 32a ss %& es “— AT wROWwSING'S. “~ . » oO ve s 1“ sor yeicme wares Wit ton outer, Wut veal ant mu AT CUAMEFRI Ain & Sit beet oatthe ") stu 4 cowe ant calves rea! cnbves herp and Ines Mernet genersily 10 beeves O liries Totel ews ay Onna