The year is 1846. The President is James K. Polk. The issue is an "An act making appropriations for the improvement of certain harbors and rivers" passed by Congress. Polk vetoes the bill. Full presidential veto message is here. Fun and interesting excerpts here:
"It must produce a disreputable scramble for the public money, by the conflict which is inseparable from such a system between local and individual interests and the general interest of the whole."
"On examining its provisions and the variety of objects of improvement which it embraces, many of them of a local character, it is difficult to conceive, if it shall be sanctioned and become a law, what practical constitutional restraint can hereafter be imposed upon the most extended system of internal improvements by the Federal Government in all parts of the Union."
"The Constitution has not, in my judgment, conferred upon the Federal Government the power to construct works of internal improvement within the States, or to appropriate money from the Treasury for that purpose."
"The general proposition that the Federal Government does not possess this power is so well settled and has for a considerable period been so generally acquiesced in that it is not deemed necessary to reiterate the arguments by which it is sustained."
"The whole frame of the Federal Constitution proves that the Government which it creates was intended to be one of limited and specified powers. A construction of the Constitution so broad as that by which the power in question is defended tends imperceptibly to a consolidation of power in a Government intended by its framers to be thus limited in its authority. "The obvious tendency and inevitable result of a consolidation of the States into one sovereignty would be to transform the republican system of the United States into a monarchy."
"It not only leads to a consolidation of power in the Federal Government........, but its inevitable tendency is to embrace objects for the expenditure of the public money which are local in their character, benefiting but few at the expense of the common Treasury of the whole."
"It will produce combinations of local and sectional interests, strong enough when united to carry propositions for appropriations of public money which could not of themselves, and standing alone, succeed, and can not fail to lead to wasteful and extravagant expenditures."
"The wisdom of the framers of the Constitution in withholding power over such objects from the Federal Government and leaving them to the local governments of the States becomes more and more manifest with every year's experience of the operations of our system."
"The treasure of the world would hardly be equal to the improvement of every bay, inlet, creek, and river in our country which might be supposed to promote the agricultural, manufacturing, or commercial interests of a neighborhood."