These hopes assumed shape in the next session in "An act to set apart and pledge certain funds for internal improvements," which pledged the proceeds of the "bonus" for constructing roads and canals, and improving the navigation of watercourses. It was passed by a close vote in each branch of Congress, after a long debate in the House upon the powers of the General Government. This debate showed Calhoun, the future spokesman of State rights, in favour of extended expenditures in the various States without constitutional restriction, and Timothy Pickering, former member of John Adams's Cabinet, in the attitude of denying the right of the National Government under the implied powers to expend a dollar without the consent of the State in which the improvement lay. Neither would he admit that the regulation of commerce included more than waterways. It was an additional evidence of the reversal of parties.
The Representatives from the Eastern States generally wished to use the money to relieve the ordinary burdens of taxation, realising that the larger part of these improvements would lie beyond the Alleghenies and, presumably, of no benefit to them. Individual members may have held great expectations of the gratitude to be gained from their constituents by securing a share of the bank money. Madison rudely shattered these in the closing hours of his administration by vetoing the bill. It was a heroic duty. To such a distance had the party gone from the confines of strict construction, so resistless had been the hand of compulsion in the sixteen years of Republican administration, so powerfully had this internal improvement system affected the cupidity of the people, so careless had Congress grown of the difference between the reserved and expressed powers, that Madison felt it necessary to recall his party to its first principles. In his veto message, he spoke the almost forgotten language of the old days when he said that the power to regulate commerce did not extend to enterprises conducted within the several States; that the efforts of the Union should be confined to foreign commerce; that any expenditure of the bonus proceeds under the plea of the common defence would be to give Congress a general power of legislation. It was the first reaction after the compelling days of the war. It was not an agreeable or popular task, but it was done heroically. It was love's labour lost, because it was impossible for Madison or his successor long to hold in check the demands of the people for means of communication as they spread toward the West over the inviting public lands.