SURPLUS, DISTRIBUTION OF
\sˈɜːpləs], \sˈɜːpləs], \s_ˈɜː_p_l_ə_s]\
Definitions of SURPLUS, DISTRIBUTION OF
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The distribution of the treasury surplus among the States in preference to appropriating it to internal improvements was advocated by President Jackson in 1829, the debt having been paid, while the compromise of 1832 forbade the reduction of the tariff. In 1836 a bill to this, but this failed. The bill provided that all the money in the treasury, January 1, 1837, in excess of $ 5,000,000, was to be deposited with the States in the proportion of their membership in the electoral college, and in four installments. The States were to give certificates of deposits, payable to the Secretary of the Treasury on demand. Jackson defended this step on the ground that many of the States were "improvement States," with a growing money market and a large debt, and therefore in urgent need of funds. The States mostly misused the money. Only three of the four installments were paid, when the crash of 1837 came upon the Federal Government, and no more was paid. History by Bourne.
By John Franklin Jameson