Money.

Sec.1. Having shown how the legislative department of the general
government is constituted, we proceed to consider its powers. It is
thought proper, however, first to notice one important characteristic of
the general government, in which it differs from the state governments,
and the knowledge of which is necessary to a right understanding of the
powers of the state and national governments respectively.

Sec.2. The general government is a government of _delegated_ powers; that
is, powers which have been intrusted or _delegated_ to it by the states,
or the people of the states. Having derived its powers from the states,
or the people, it has such powers only as have been conferred by the
constitution. Hence it is called a government of _limited_ powers. The
states, on the other hand, existing before the general government, and
possessing entire sovereignty or supreme power, may exercise all powers
which they have not surrendered to the general government. In other
words, their powers are _unlimited_, except so far as they have parted
with any of their original powers.

Sec.3. Most of the powers of congress are enumerated in the eighth section
of the first article of the constitution. The first in the list is in
these words: "Congress shall have power to lay and collect taxes,
duties, imposts, and excises, to pay the debts and provide for the
common defense and general welfare of the United States; but all duties,
imposts, and excises shall be uniform throughout the U. States."

Sec.4. We have already noticed the want of such a power in the old
congress. The debt which had been contracted to carry on the war
remained unpaid; and congress, as we have seen, had no power to raise
money either to pay debts or to defray the current expenses of the
government. (Chap. XXVII: Sec.4, 6.) It could neither raise money by
_direct_ taxation; that is, by taxing the persons and property of the
citizens, nor by _indirect_ taxation, which is by duties.

Sec.5. _Duties_, or _customs_, are taxes on goods imported from, or
exported to, a foreign country. _Imposts_ are taxes on imported goods
only. Duties on exports, however, being deemed inexpedient, are not laid
by our government. An _excise_ is a tax neither on imports nor exports,
but on articles produced and consumed in the country, and on licenses to
deal in certain commodities. The money paid for license to sell
spirituous liquors is an _excise_ tax.

Sec.6. Dutie