Chapter XCII
REMOVAL OF THE DEPOSITS FROM THE BANK OF THE UNITED STATES.
The fact of this removal was communicated to Congress, in the annual message of the President; the reasons for it, and the mode of doing it, were reserved for a separate communication; and especially a report from the Secretary of the Treasury, to whom belonged the absolute right of the removal, without assignment of any reasons except to Congress, after the act was done. The order for the removal, as it was called--for it was only an order to the collectors of revenue to cease making their deposits in that bank, leaving the amount actually in it, to be drawn out of intervals, and in different sums, according to the course at the government disbursements--was issued the 22d of September, and signed by Roger B. Taney, Esq., the new Secretary of the Treasury, appointed in place of Mr. Wm. J. Duane, who, refusing to make the removal, upon the request of the President, was himself removed. This measure (the ceasing to deposit the public moneys with the Bank of the United States) was the President's own measure, conceived by him, carried out by him, defended by him, and its fate dependent upon him. He had coadjutors in every part of the business, but the measure was his own; for this heroic civil measure, like a heroic military resolve, had to be the offspring of one great mind--self-acting and poised--seeing its way through all difficulties and dangers; and discerning ultimate triumph over all obstacles in the determination to conquer them, or to perish. Councils are good for safety, not for heroism--good for escapes from perils, and for retreats, but for action, and especially high and daring action, but one mind is wanted. The removal of the deposits was an act of that kind--high and daring, and requiring as much nerve as any enterprise of arms, in which the President had ever been engaged. His military exploits had been of his own conception; his great civil acts were to be the same: more impeded than promoted by councils. And thus it was in this case. The majority of his cabinet was against him. His Secretary of the Treasury refused to execute his will. A few only--a fraction of the cabinet and some friends--concurred heartily in the act: Mr. Taney, attorney general, Mr. Kendall, Mr. Francis P. Blair, editor of the Globe; and some few others.
He took his measures carefully and deliberately, and with due regard to keeping himself demonstrably, as well as actually right. Observation had only confirmed his opinion, communicated to the previous Congress, of the misconduct of the institution, and the insecurity of the public moneys in it: and the almost unanimous vote of the House of Representatives to the contrary, made no impression upon his strong conviction. Denied a legislative examination into its affairs, he determined upon an executive one, through inquiries put to the government directors, and the researches into the state of the books, which the Secretary of the Treasury had a right to make. Four of those directors, namely, Messrs. Henry D. Gilpin, John T. Sullivan, Peter Wager, and Hugh McEldery, made two reports to the President, according to the duty assigned them, in which they showed great misconduct in its management, and a great perversion of its funds to undue and political purposes. Some extracts from these reports will show the nature of this report, the names of persons to whom money was paid being omitted, as the only object, in making the extracts, is to show the conduct of the bank, and not to disturb or affect any individuals.
"On the 30th November, 1830, it is stated on the minutes, that 'the president submitted to the board a copy of an article on banks and currency, just published in the American Quarterly Review of this city, containing a favorable notice of this institution, and suggested the expediency of making the views of the author more extensively known to the public than they can be by means of the subscription list.' Whereupon, it was, on motion, 'Resolved, That the president be authorized to take such measures, in regard to the circulation of the contents of the said article, either in whole or in part, as he may deem most for the interests of the bank.' On the 11th March, 1831, it again appears by the minutes that 'the president stated to the board, that, in consequence of the general desire expressed by the directors, at one of their meetings of the last year, subsequent to the adjournment of Congress, and a verbal understanding with the board, measures had been taken by him, in the course of that year, for furnishing numerous copies of the reports of General Smith and Mr. McDuffie on the subject of this bank, and for widely disseminating their contents through the United States; and that he has since, by virtue of the authority given him by a resolution of this board, on the 30th day of November last, caused a large edition of Mr. Gallatin's essay on banks and currency to be published and circulated, in like manner, at the expense of the bank. He suggested, at the same time, the propriety and expediency of extending still more widely a knowledge of the concerns of this institution, by means of the republication of other valuable articles, which had issued from the daily and periodical press.' Whereupon, it was, on motion, 'Resolved, That the president is hereby authorized to cause to be prepared and circulated, such documents and papers as may communicate to the people information, in regard to the nature and operations of the bank.'
"In pursuance, it is presumed, of these resolutions, the item of stationary and printing was increased, during the first half year of 1831, to the enormous sum of $29,979 92, exceeding that of the previous half year by $23,000, and exceeding the semi-annual expenditure of 1829, upwards of $26,000. The expense account itself, as made up in the book which was submitted to us, contained very little information relative to the particulars of this expenditure, and we are obliged, in order to obtain them, to resort to an inspection of the vouchers. Among other sums, was one of $7,801, stated to have been paid on orders of the president, under the resolution of 11th March, 1831, and the orders themselves were the only vouchers of the expenditure which we found on file. Some of the orders, to the amount of about $1,800, stated that the expenditure was for distributing General Smith's and Mr. McDuffie's reports, and Mr. Gallatin's pamphlet; but the rest stated generally that it was made under the resolution of 11th of March, 1831. There were also numerous bills and receipts for expenditures to individuals: $1,300 for distributing Mr. Gallatin's pamphlet; $1,675 75 for 5,000 copies of General Smith's and Mr. McDuffie's reports, &c.; $440 for 11,000 extra papers; of the American Sentinel, $125 74 for printing, folding, packing, and postage on 3,000 extras; $1,830 27 for upwards of 50,000 copies of the National Gazette, and supplements containing addresses to members of State legislatures, reviews of Mr. Benton's speech, abstracts of Mr. Gallatin's article from the American Quarterly Review, and editorial article on the project of a Treasury Bank; $1,447 75 for 25,000 copies of the reports of Mr. McDuffie and General Smith, and for 25,000 copies of the address to members of the State legislatures, agreeably to order; $2,850 for 10,000 copies of 'Gallatin on Banking,' and 2,000 copies of Professor Tucker's article.
"During the second half year of 1831, the item of stationery and printing was $13,224 87, of which $5,010 were paid on orders of the president, and stated generally to be under the resolution of 11th March, 1831, and other sums were paid to individuals, as in the previous account, for printing and distributing documents.
"During the first half year of 1832, the item of stationery and printing was $12,134 16, of which $2,150 was stated to have been paid on orders of the president, under the resolution of 11th March, 1831. There are also various individual payments, of which we noticed $106 38 for one thousand copies of the review of Mr. Benton's speech; $200 for one thousand copies of the Saturday Courier; $1,176 for twenty thousand copies of a pamphlet concerning the bank, and six thousand copies of the minority report relative to the bank; $1,800 for three hundred copies of Clarke & Hall's bank book. During the last half year of 1832, the item of stationery and printing rose to $26,543 72, of which $6,350 are stated to have been paid on orders of the president, under the resolution of 11th March, 1831. Among the specified charges we observe $821 78 for printing a review of the veto; $1,371 04 for four thousand copies of Mr. Ewing's speech, bank documents, and review of the veto; $4,106 13 for sixty-three thousand copies of Mr. Webster's speech, Mr. Adams's and Mr. McDuffie's reports, and the majority and minority reports; $295 for fourteen thousand extras of The Protector, containing bank documents; $2,583 50 for printing and distributing reports, Mr. Webster's speech, &c. $150 12 for printing the speeches of Messrs. Clay, Ewing, and Smith, and Mr. Adams's report; $1,512 75 to Mr. Clark, for printing Mr. Webster's speech and articles on the veto, and $2,422 65 for fifty-two thousand five hundred copies of Mr. Webster's speech. There is also a charge of $4,040 paid on orders of the president, stating that it is for expenses in measures for protecting the bank against a run on the Western branches.
"During the first half year of 1833, the item of stationery and printing was $9,093 59, of which $2,600 are stated to have been paid on orders of the president, under the resolution of 11th March, 1831. There is also a charge of $800 for printing the report of the exchange committee."
These various items, amounting to about $80,000, all explain themselves by their names and dates--every name of an item referring to a political purpose, and every date corresponding with the impending questions of the recharter and the presidential election; and all charged to the expense account of the bank--a head of account limited, by the nature of the institution, so far as printing was concerned, to the printing necessary for the conducting of its own business; yet in the whole sum, making the total of $80,000, there is not an item of that kind included. To expose, or correct these abuses, the government directors submitted the following resolution to the board:
"Whereas, it appears by the expense account of the bank for the years 1831 and 1832, that upwards of $80,000 were expended and charged under the head of stationery and printing during that period; that a large proportion of this sum was paid to the proprietors of newspapers and periodical journals, and for the printing, distribution, and postage of immense numbers of pamphlets and newspapers; and that about $20,000 were expended under the resolutions of 30th November, 1830, and 11th March, 1831, without any account of the manner in which, or the persons to whom, they were disbursed: and whereas it is expedient and proper that the particulars of this expenditure, so large and unusual, which can now be ascertained only by the examination of numerous bills and receipts, should be so stated as to be readily submitted to, and examined by, the board of directors and the stockholders: Therefore, Resolved, That the cashier furnish to the board, at as early a day as possible, a full and particular statement of all these expenditures, designating the sums of money paid to each person, the quantity and names of the documents furnished by him, and his charges for the distribution and postage of the same; together with as full a statement as may be of the expenditures under the resolutions of 30th November, 1830, and 11th March, 1831. That he ascertain whether expenditures of the same character have been made at any of the offices, and if so, procure similar statements thereof, with the authority on which they were made. That the said resolutions be rescinded, and no further expenditures made under the same."
This resolution was rejected by the board, and in place of it another was adopted, declaring perfect confidence in the president of the bank, and directing him to continue his expenditures under the two resolves of November and March according to his discretion;--thus continuing to him the power of irresponsible expenditure, both in amount and object, to any extent that he pleased. The reports also showed that the government directors were treated with the indignity of being virtually excluded, both from the transactions of the bank, and the knowledge of them; and that the charter was violated to effect these outrages. As an instance, this is given: the exchange committee was in itself, and even confined to its proper duties, that of buying and selling exchange, was a very important one, having the application of an immense amount of the funds of the bank. While confined to its proper duties, it was changed monthly, and the directors served upon it by turns; so that by the process of rotation and speedy renewal, every member of the directory was kept well informed of the transactions of this committee, and had their due share in all its great operations. But at this time--(time of the renewed charter and the presidential election)--both the duties of the committee, and its mode of appointment were altered; discounting of notes was permitted to it, and the appointment of its members was invested in Mr. Biddle; and no government director was henceforth put upon it. Thus, a few directors made the loans in the committee's room, which by the charter could only be made by seven directors at the board; and the government directors, far from having any voice in these exchange loans, were ignorant of them until afterwards found on the books. It was in this exchange committee that most of the loans to members of Congress were made, and under whose operations the greatest losses were eventually incurred. The report of the four directors also showed other great misconduct on the part of the bank, one of which was to nearly double its discounts at the approaching termination of the charter, running them up in less than a year and a half from about forty-two and a half to about seventy and a half millions of dollars. General Jackson was not the man to tolerate these illegalities, corruptions and indignities. He, therefore, determined on ceasing to use the institution any longer as a place of deposit for the public moneys; and accordingly communicated his intention to the cabinet, all of whom had been requested to assist him in his deliberations on the subject. The major part of them dissented from his design; whereupon he assembled them the 22nd of September, and read to them a paper, of which the following are the more essential parts:
"Having carefully and anxiously considered all the facts and arguments which have been submitted to him, relative to a removal of the public deposits from the Bank of the United States, the President deems it his duty to communicate in this manner to his cabinet the final conclusions of his own mind, and the reasons on which they are founded, in order to put them in durable form, and to prevent misconceptions.
"The President's convictions of the dangerous tendencies of the Bank of the United States, since signally illustrated by its own acts, were so overpowering when he entered on the duties of chief magistrate, that he felt it his duty, notwithstanding the objections of the friends by whom he was surrounded, to avail himself of the first occasion to call the attention of Congress and the people to the question of its recharter. The opinions expressed in his annual message of December, 1829, were reiterated in those of December, 1830 and 1831, and in that of 1830, he threw out for consideration some suggestions in relation to a substitute. At the session of 1831-'32 an act was passed by a majority of both Houses of Congress rechartering the present bank, upon which the President felt it his duty to put his constitutional veto. In his message, returning that act, he repeated and enlarged upon the principles and views briefly asserted in his annual messages, declaring the bank to be, in his opinion, both inexpedient and unconstitutional, and announcing to his countrymen, very unequivocally, his firm determination never to sanction, by his approval, the continuance of that institution or the establishment of any other upon similar principles.
"There are strong reasons for believing that the motive of the bank in asking for a recharter at that session of Congress, was to make it a leading question in the election of a President of the United States the ensuing November, and all steps deemed necessary were taken to procure from the people a reversal of the President's decision.
"Although the charter was approaching its termination, and the bank was aware that it was the intention of the government to use the public deposit as fast as it has accrued, in the payment of the public debt, yet did it extend its loans from January, 1831, to May, 1832, from $42,402,304 24 to $70,428,070 72, being an increase of $28,025,766 48, in sixteen months. It is confidently believed that the leading object of this immense extension of its loans was to bring as large a portion of the people as possible under its power and influence; and it has been disclosed that some of the largest sums were granted on very unusual terms to the conductors of the public press. In some of these cases, the motive was made manifest by the nominal or insufficient security taken for the loans, by the large amounts discounted, by the extraordinary time allowed for payment, and especially by the subsequent conduct of those receiving the accommodations.
"Having taken these preliminary steps to obtain control over public opinion, the bank came into Congress and asked a new charter. The object avowed by many of the advocates of the bank, was to put the President to the test, that the country might know his final determination relative to the bank prior to the ensuing election. Many documents and articles were printed and circulated at the expense of the bank, to bring the people to a favorable decision upon its pretensions. Those whom the bank appears to have made its debtors for the special occasion, were warned of the ruin which awaited them, should the President be sustained, and attempts were made to alarm the whole people by painting the depression in the price of property and produce, and the general loss, inconvenience, and distress, which it was represented would immediately follow the re-election of the President in opposition to the bank.
"Can it now be said that the question of a recharter of the bank was not decided at the election which ensued? Had the veto been equivocal, or had it not covered the whole ground--if it had merely taken exceptions to the details of the bill, or to the time of its passage--if it had not met the whole ground of constitutionality and expediency, then there might have been some plausibility for the allegation that the question was not decided by the people. It was to compel the President to take his stand, that the question was brought forward at that particular time. He met the challenge, willingly took the position into which his adversaries sought to force him, and frankly declared his unalterable opposition to the bank as being both unconstitutional and inexpedient. On that ground the case was argued to the people, and now that the people have sustained the President, notwithstanding the array of influence and power which was brought to bear upon him, it is too late, he confidently thinks, to say that the question has not been decided. Whatever may be the opinions of others, the President considers his re-election as a decision of the people against the bank. In the concluding paragraph of his veto message he said:
"'I have now done my duty to my country. If sustained by my fellow-citizens, I shall be grateful and happy; if not, I shall find in the motives which impel me, ample grounds for contentment and peace.'
"He was sustained by a just people, and he desires to evince his gratitude by carrying into effect their decision, so far as it depends upon him.
"Of all the substitutes for the present bank, which have been suggested, none seems to have united any considerable portion of the public in its favor. Most of them are liable to the same constitutional objections for which the present bank has been condemned, and perhaps to all there are strong objections on the score of expediency. In ridding the country of an irresponsible power which has attempted to control the government, care must be taken not to unite the same power with the executive branch. To give a President the control over the currency and the power over individuals now possessed by the Bank of the United States, even with the material difference that he is responsible to the people, would be as objectionable and as dangerous as to leave it as it is. Neither the one nor the other is necessary, and therefore ought not to be resorted to.
"But in the conduct of the bank may be found other reasons, very imperative in their character, and which require prompt action. Developments have been made from time to time of its faithlessness as a public agent, its misapplication of public funds, its interference in elections, its efforts, by the machinery of committees, to deprive the government directors of a full knowledge of its concerns, and above all, its flagrant misconduct as recently and unexpectedly disclosed, in placing all the funds of the bank, including the money of the government, at the disposition of the president of the bank, as means of operating upon public opinion and procuring a new charter without requiring him to render a voucher for their disbursement. A brief recapitulation of the facts which justify these charges and which have come to the knowledge of the public and the President, will, he thinks, remove every reasonable doubt as to the course which it is now the duty of the President to pursue.
"We have seen that in sixteen months, ending in May, 1832, the bank had extended its loans more than $28,000,000, although it knew the government intended to appropriate most of its large deposit during that year in payment of the public debt. It was in May, 1832, that its loans arrived at the maximum, and in the preceding March, so sensible was the bank that it would not be able to pay over the public deposit when it would be required by the government, that it commenced a secret negotiation without the approbation or knowledge of the government, with the agents, for about $2,700,000 of the three per cent. stocks held in Holland, with a view of inducing them not to come forward for payment for one or more years after notice should be given by the Treasury Department. This arrangement would have enabled the bank to keep and use during that time the public money set apart for the payment of these stocks.
"Although the charter and the rules of the bank, both, declare that 'not less than seven directors' shall be necessary to the transaction of business, yet, the most important business, even that of granting discounts to any extent, is intrusted to a committee of five members who do not report to the board.
"To cut off all means of communication with the government, in relation to its most important acts, at the commencement of the present year, not one of the government directors was placed on any one committee. And although since, by an unusual remodelling of those bodies, some of those directors have been placed on some of the committees, they are yet entirely excluded from the committee of exchange, through which the greatest and most objectionable loans have been made.
"When the government directors made an effort to bring back the business of the bank to the board, in obedience to the charter and the existing regulations, the board not only overruled their attempt, but altered the rule so as to make it conform to the practice, in direct violation of one of the most important provisions of the charter which gave them existence.
"It has long been known that the president of the bank, by his single will, originates and executes many of the most important measures connected with the management and credit of the bank, and that the committee, as well as the board of directors, are left in entire ignorance of many acts done, and correspondence carried on, in their names, and apparently under their authority. The fact has been recently disclosed, that an unlimited discretion has been, and is now, vested in the president of the bank to expend its funds in payment for preparing and circulating articles, and purchasing pamphlets and newspapers, calculated by their contents to operate on elections and secure a renewal of its charter.
"With these facts before him, in an official report from the government directors, the President would feel that he was not only responsible for all the abuses and corruptions the bank has committed, or may commit, but almost an accomplice in a conspiracy against that government which he has sworn honestly to administer, if he did not take every step, within his constitutional and legal power, likely to be efficient in putting an end to these enormities. If it be possible, within the scope of human affairs, to find a reason for removing the government deposits, and leaving the bank to its own resource for the means of effecting its criminal designs, we have it here. Was it expected, when the moneys of the United States were directed to be placed in that bank, that they would be put under the control of one man, empowered to spend millions without rendering a voucher or specifying the object? Can they be considered safe, with the evidence before us that tens of thousands have been spent for highly improper, if not corrupt, purposes, and that the same motive may lead to the expenditure of hundreds of thousands and even millions more? And can we justify ourselves to the people by longer lending to it the money and power of the government, to be employed for such purposes?
"In conclusion, the President must be permitted to remark that he looks upon the pending question as of higher consideration than the mere transfer of a sum of money from one bank to another. Its decision may affect the character of our government for ages to come. Should the bank be suffered longer to use the public moneys, in the accomplishment of its purposes, with the proof of its faithlessness and corruption before our eyes, the patriotic among our citizens will despair of success in struggling against its power; and we shall be responsible for entailing it upon our country for ever. Viewing it as a question of transcendent importance, both in the principles and consequences it involves, the President could not, in justice to the responsibility which he owes to the country, refrain from pressing upon the Secretary of the Treasury his view of the considerations which impel to immediate action. Upon him has been devolved, by the constitution and the suffrages of the American people, the duty of superintending the operation of the Executive departments of the governments, and seeing that the laws are faithfully executed. In the performance of this high trust, it is his undoubted right to express to those whom the laws and his own choice have made his associates in the administration of the government, his opinion of their duties, under circumstances, as they arise. It is this right which he now exercises. Far be it from him to expect or require that any member of the cabinet should, at his request, order, or dictation, do any act which he believes unlawful, or in his conscience condemns. From them, and from his fellow-citizens in general, he desires only that aid and support which their reason approves and their conscience sanctions.
"The President again repeats that he begs his cabinet to consider the proposed measure as his own, in the support of which he shall require no one of them to make a sacrifice of opinion or principle. Its responsibility has been assumed, after the most mature deliberation and reflection, as necessary to preserve the morals of the people, the freedom of the press, and the parity of the elective franchise, without which, all will unite in saying that the blood and treasure expended by our forefathers, in the establishment of our happy system of government, will have been vain and fruitless. Under these convictions, he feels that a measure so important to the American people cannot be commenced too soon; and he, therefore, names the first day of October next as a period proper for the change of the deposits, or sooner, provided the necessary arrangements with the State banks can be made."
I was in the State of Virginia, when the Globe newspaper arrived, towards the end of September, bringing this "paper," which the President had read to his cabinet, and the further information that he had carried his announced design into affect. I felt an emotion of the moral sublime at beholding such an instance of civic heroism. Here was a President, not bred up in the political profession, taking a great step upon his own responsibility from which many of his advisers shrunk; and magnanimously, in the act itself, releasing all from the peril that he encountered, and boldly taking the whole upon himself. I say peril; for if the bank should conquer, there was an end to the political prospects of every public man concurring in the removal. He believed the act to be necessary; and believing that, he did the act--leaving the consequences to God and the country. I felt that a great blow had been struck, and that a great contest must come on, which could only be crowned with success by acting up to the spirit with which it had commenced. And I repaired to Washington at the approach of the session with a full determination to stand by the President, which I believed to be standing by the country; and to do my part in justifying his conduct, and in exposing and resisting the powerful combination which it was certain would be formed against him.
Chapter XCIII
BANK PROCEEDINGS, ON SEEING THE DECISION OF THE PRESIDENT, IN RELATION TO THE REMOVAL OF THE DEPOSITS.
Immediately on the publication in the Globe of the "Paper read to the Cabinet," the bank took it into consideration in all the forms of a co-ordinate body. It summoned a meeting of the directors--appointed a committee--referred the President's "Paper" to it--ordered it to report--held another meeting to receive the report--adopted it (the government directors, Gilpin, Wager, and Sullivan voting against it)--and ordered five thousand copies of the report to be printed. A few extracts from the report, entitled a Memorial to Congress, are here given, for the purpose of showing, First, The temper and style in which this moneyed corporation, deriving its existence from the national Congress, indulged itself, and that in its corporate capacity, in speaking of the President of the United States and his cabinet; and, next, to show the lead which it gave to the proceedings which were to be had in Congress. Under the first head, the following passages are given:
"The committee to whom was referred on the 24th of September, a paper signed 'Andrew Jackson,' purporting to have been read to a cabinet on the 18th, and also another paper signed 'H. D. Gilpin, John T. Sullivan, Peter Wager, and Hugh McEldery,' bearing date August 19th, 1833--with instructions to consider the same, and report to the board 'whether any, and what steps may be deemed necessary on the part of the board in consequence of the publication of said letter and report,' beg leave to state--
"To justify this measure is the purpose of the paper signed 'Andrew Jackson.' Of the paper itself, and of the individual who has signed it, the committee find it difficult to speak with the plainness by which alone such a document, from such a source, should be described, without wounding their own self-respect, and violating the consideration which all American citizens must feel for the chief magistracy of their country. Subduing, however, their feelings and their language down to that respectful tone which is due to the office, they will proceed to examine the history of this measure, its character and the pretexts offered in palliation of it.
"1st. It would appear from its contents and from other sources of information, that the President had a meeting of what is called the cabinet, on Wednesday, the 18th September, and there read this paper. Finding that it made no impression on the majority of persons assembled, the subject was postponed, and in the mean time this document was put into the newspapers. It was obviously published for two reasons. The first was to influence the members of the cabinet by bringing to bear upon their immediate decision the first public impression excited by misrepresentations, which the objects of them could not refute in time--the second was, by the same excitement, to affect the approaching elections in Pennsylvania, Maryland and New Jersey. Its assailants are what are called politicians (i.e., the assailants of the bank)."
Such is the temper and style in which the President of the United States is spoken of by this great moneyed corporation, in a memorial addressed to Congress. Erecting itself into a co-ordinate body, and assuming in its corporate capacity an authority over the President's act, it does not even condescend to call him President. It is "Andrew Jackson," and the name always placed between inverted commas to mark the higher degree of contempt. Then the corporation shrinks from remarking on the "paper" itself, and the "individual" who signed it, as a thing injurious to their own self-respect, and only to be done in consideration of the "office" which he fills, and that after "subduing" their feelings--and this was the insolence of the moneyed power in defeat, when its champion had received but forty-nine votes for the Presidency out of two hundred and eighty-eight given in! What would it have been in victory? The lead which it gave to the intended proceedings in Congress, is well indicated in these two paragraphs, and the specifications under them:
"The indelicacy of the form of those proceedings corresponds well with the substance of them, which is equally in violation of the rights of the bank and the laws of the country.
"The committee willingly leave to the Congress of the United States, the assertion of their own constitutional power, and the vindication of the principles of our government, against the most violent assault they have ever yet encountered; and will now confine themselves to the more limited purpose of showing that the reasons assigned for this measure are as unfounded as the object itself is illegal."
The illegality of the proceeding, and the vindication of the constitution, and the principles of the government, from a most violent assault, are the main objects left by the bank to the Congress; the invalidity of the reasons assigned for the removal, are more limited, and lest the Congress might not discover these violations of law and constitution, the corporation proceeds to enumerate and establish them. It says:
"Certainly since the foundation of this government, nothing has ever been done which more deeply wounds the spirit of our free institutions. It, in fact, resolves itself into this--that whenever the laws prescribe certain duties to an officer, if that officer, acting under the sanctions of his official oath and his private character, refuses to violate that law, the President of the United States may dismiss him and appoint another; and if he too should prove to be a 'refractory subordinate,' to continue his removals until he at last discovers in the descending scale of degradation some irresponsible individual fit to be the tool of his designs. Unhappily, there are never wanting men who will think as their superiors wish them to think--men who regard more the compensation than the duties of their office--men to whom daily bread is sufficient consolation for daily shame.
"The present state of this question is a fearful illustration of the danger of it. At this moment the whole revenue of this country is at the disposal--the absolute, uncontrolled disposal--of the President of the United States. The laws declare that the public funds shall be placed in the Bank of the United States, unless the Secretary of the Treasury forbids it. The Secretary of the Treasury will not forbid it. The President dismisses him, and appoints somebody who will. So the laws declare that no money shall be drawn from the Treasury, except on warrants for appropriations made by law. If the Treasurer refuses to draw his warrant for any disbursement, the President may dismiss him and appoint some more flexible agent, who will not hesitate to gratify his patron. The text is in the official gazette, announcing the fate of the dismissed Secretary to all who follow him. 'The agent cannot conscientiously perform the service, and refuses to co-operate, and desires to remain to thwart the President's measures. To put an end to this difficulty between the head and the hands of the executive department, the constitution arms the chief magistrate with authority to remove the refractory subordinate.' The theory thus avowed, and the recent practice under it, convert the whole free institutions of this country into the mere absolute will of a single individual. They break down all the restraints which the framers of the government hoped they had imposed on arbitrary power, and place the whole revenue of the United States in the hands of the President.
"For it is manifest that this removal of the deposits is not made by the order of the Secretary of the Treasury. It is a perversion of language so to describe it. On the contrary, the reverse is openly avowed. The Secretary of the Treasury refused to remove them, believing, as his published letter declares, that the removal was 'unnecessary, unwise, vindictive, arbitrary and unjust.' He was then dismissed because he would not remove them, and another was appointed because he would remove them. Now this is a palpable violation of the charter. The bank and Congress agree upon certain terms, which no one can change but a particular officer; who, although necessarily nominated to the Senate by the President, was designated by the bank and by Congress as the umpire between them. Both Congress and the bank have a right to the free and honest and impartial judgment of that officer, whoever he may be--the bank, because the removal may injure its interests--the Congress, because the removal may greatly incommode and distress their constituents. In this case, they are deprived of it by the unlawful interference of the President, who 'assumes the responsibility,' which, being interpreted, means, usurps the power of the Secretary.
"The whole structure of the Treasury shows that the design of Congress was to make the Secretary as independent as possible of the President. The other Secretaries are merely executive officers; but the Secretary of the Treasury, the guardian of the public revenue, comes into more immediate sympathy with the representatives of the people who pay that revenue; and although, according to the general scheme of appointment, he is nominated by the President to the Senate, yet he is in fact the officer of Congress, not the officer of the President.
"This independence of the Secretary of the Treasury--if it be true in general--is more especially true in regard to the bank. It was in fact the leading principle in organizing the bank, that the President should be excluded from all control of it. The question which most divided the House of Representatives was, whether there should be any government directors at all; and although this was finally adopted, yet its tendency to create executive influence over the bank was qualified by two restrictions: first, that no more than three directors should be appointed from any one State; and, second, that the president of the bank should not be, as was originally designed by the Secretary of the Treasury, chosen from among the government directors. Accordingly, by the charter, the Secretary of the Treasury is every thing--the President comparatively nothing. The Secretary has the exclusive supervision of all the relations of the bank with the government."
These extracts are sufficient to show that the corporation charged the President with illegal and unconstitutional conduct, subversive of the principles of our government, and dangerous to our liberties in causing the deposits to be removed--that they looked upon this illegal, unconstitutional, and dangerous conduct as the principal wrong--and left to Congress the assertion of its own constitutional power, and the vindication of the principles of the government from the assault which they had received. And this in a memorial addressed to Congress, of which five thousand copies, in pamphlet form, were printed, and the members of Congress liberally supplied with copies. It will be seen, when we come to the proceedings of Congress, how far the intimations of the memorial in showing what ought to be done, and leaving Congress to do it, was complied with by that body.
Chapter XCIV
REPORT OF THE SECRETARY OF THE TREASURY TO CONGRESS ON THE REMOVAL OF THE DEPOSITS.
By the clause in the charter authorizing the Secretary of the Treasury to remove the deposits, that officer was required to communicate the fact immediately to Congress, if in session, if not, at the first meeting; together with his reasons for so doing. The act which had been done was not a "removal," in the sense of that word; for not a dollar was taken from the Bank of the United States to be deposited elsewhere; and the order given was not for a "removal," but for a cessation of deposits in that institution, leaving the public moneys which were in it to be drawn out in the regular course of expenditure. An immediate and total removal might have been well justified by the misconduct of the bank; a cessation to deposit might have been equally well justified on the ground of the approaching expiration of the charter, and the propriety of providing in time for the new places of deposit which that expiration would render necessary. The two reasons put together made a clear case, both of justification and of propriety, for the order which had been given; and the secretary, Mr. Taney, well set them forth in the report which he made, and which was laid before Congress on the day after its meeting. The following are extracts from it:
"The Treasury department being intrusted with the administration of the finances of the country, it was always the duty of the Secretary, in the absence of any legislative provision on the subject, to take care that the public money was deposited in safe keeping, in the hands of faithful agents, and in convenient places, ready to be applied according to the wants of the government. The law incorporating the bank has reserved to him, in its full extent, the power he before possessed. It does not confer on him a new power, but reserves to him his former authority, without any new limitation. The obligation to assign the reasons for his direction to deposit the money of the United States elsewhere, cannot be considered as a restriction of the power, because the right of the Secretary to designate the place of deposit was always necessarily subject to the control of Congress. And as the Secretary of the Treasury presides over one of the executive departments of the government, and his power over this subject forms a part of the executive duties of his office, the manner in which it is exercised must be subject to the supervision of the officer to whom the constitution has confided the whole executive power, and has required to take care that the laws be faithfully executed.
"The faith of the United States is, however, pledged, according to the terms of the section above stated, that the public money shall be deposited in this bank, unless 'the Secretary of the Treasury shall otherwise order and direct.' And as this agreement has been entered into by Congress, in behalf of the United States, the place of deposit could not be changed by a legislative act, without disregarding a pledge, which the legislature has given; and the money of the United States must therefore continue to be deposited in the bank, until the last hour of its existence, unless it shall be otherwise ordered by the authority mentioned in the charter. The power over the place of deposit for the public money would seem properly to belong to the legislative department of the government, and it is difficult to imagine why the authority to withdraw it from this bank was confided exclusively to the Executive. But the terms of the charter appear to be too plain to admit of question; and although Congress should be satisfied that the public money was not safe in the care of the bank, or should be convinced that the interests of the people of the United States imperiously demanded the removal, yet the passage of a law directing it to be done, would be a breach of the agreement into which they have entered.
"In deciding upon the course which it was my duty to pursue in relation to the deposits, I did not feel myself justified in anticipating the renewal of the charter on either of the above-mentioned grounds. It is very evident that the bank has no claim to renewal, founded on the justice of Congress. For, independently of the many serious and insurmountable objections, which its own conduct has furnished, it cannot be supposed that the grant to this corporation of exclusive privileges, at the expense of the rest of the community, for twenty years, can give it a right to demand the still further enjoyment of its profitable monopoly. Neither could I act upon the assumption that the public interest required the recharter of the bank, because I am firmly persuaded that the law which created this corporation, in many of its provisions, is not warranted by the constitution, and that the existence of such a powerful moneyed monopoly, is dangerous to the liberties of the people, and to the purity of our political institutions.
"The manifestations of public opinion, instead of being favorable to a renewal, have been decidedly to the contrary. And I have always regarded the result of the last election of the President of the United States, as the declaration of a majority of the people that the charter ought not to be renewed. It is not necessary to state here, what is now a matter of history. The question of the renewal of the charter was introduced into the election by the corporation itself. Its voluntary application to Congress for the renewal of its charter four years before it expired, and upon the eve of the election of President, was understood on all sides as bringing forward that question for incidental decision, at the then approaching election. It was accordingly argued on both sides, before the tribunal of the people, and their verdict pronounced against the bank, by the election of the candidate who was known to have been always inflexibly opposed to it.
"The monthly statement of the bank, of the 2d September last, before referred to, shows that the notes of the bank and its branches, then in circulation, amounted to $18,413,287 07, and that its discounts amounted to the sum of $62,653,359 59. The immense circulation above stated, pervading every part of the United States, and most commonly used in the business of commerce between distant places, must all be withdrawn from circulation when the charter expires. If any of the notes then remain in the hands of individuals, remote from the branches at which they are payable, their immediate depreciation will subject the holders to certain loss. Those payable in the principal commercial cities would, perhaps, retain nearly their nominal value; but this would not be the case with the notes of the interior branches, remote from the great marts of trade. And the statements of the bank will show that a great part of its circulation is composed of notes of this description. The bank would seem to have taken pains to introduce into common use such a description of paper as it could depreciate, or raise to its par value, as best suited its own views; and it is of the first importance to the interests of the public that these notes should all be taken out of circulation, before they depreciate in the hands of the individuals who hold them; and they ought to be withdrawn gradually, and their places supplied, as they retire, by the currency which will become the substitute for them. How long will it require, for the ordinary operations of commerce, and the reduction of discounts by the bank, to withdraw the amount of circulation before mentioned, without giving a shock to the currency, or producing a distressing pressure on the community? I am convinced that the time which remained for the charter to run, after the 1st of October (the day on which the first order for removal took effect), was not more than was proper to accomplish the object with safety to the community.
"There is, however, another view of the subject, which in my opinion, made it impossible further to postpone the removal. About the 1st of December, 1832, it had been ascertained that the present Chief Magistrate was re-elected, that his decision against the bank had thus been sanctioned by the people. At that time the discounts of the bank amounted to $61,571,625 66. Although the issue which the bank took so much pains to frame had now been tried, and the decision pronounced against it, yet no steps were taken to prepare for its approaching end. On the contrary, it proceeded to enlarge its discounts, and, on the 2d of August, 1833, they amounted to $64,160,349 14, being an increase of more than two and a half millions in the eight months immediately following the decision against them. And so far from preparing to arrange its affairs with a view to wind up its business, it seemed from this course of conduct, to be the design of the bank to put itself in such an attitude, that, at the close of its charter, the country would be compelled to submit to its renewal, or to bear all the consequences of a currency suddenly deranged, and also a severe pressure for the immense outstanding claims which would then be due to the corporation. While the bank was thus proceeding to enlarge its discounts, an agent was appointed by the Secretary of the Treasury to inquire upon what terms the State banks would undertake to perform the services to the government which have heretofore been rendered by the Bank of the United States; and also to ascertain their condition in four of the principal commercial cities, for the purpose of enabling the department to judge whether they would be safe and convenient depositories for the public money. It was deemed necessary that suitable fiscal agents should be prepared in due season, and it was proper that time should be allowed them to make arrangements with one another throughout the country, in order that they might perform their duties in concert, and in a manner that would be convenient and acceptable to the public. It was essential that a change so important in its character, and so extensive in its operation upon the financial concerns of the country, should not be introduced without timely preparation.
"The United States, by the charter, reserved the right of appointing five directors of the bank. It was intended by this means not only to provide guardians for the interests of the public in the general administration of its affairs, but also to have faithful officers, whose situation would enable them to become intimately acquainted with all the transactions of the institution, and whose duty it would be to apprize the proper authorities of any misconduct on the part of the corporation likely to affect the public interest. The fourth fundamental article of the constitution of the corporation declares that not less than seven directors shall constitute a board for the transaction of business. At these meetings of the board, the directors on the part of the United States had of course a right to be present; and, consequently, if the business of the corporation had been transacted in the manner which the law requires, there was abundant security that nothing could be done, injuriously affecting the interests of the people, without being immediately communicated to the public servants, who were authorized to apply the remedy. And if the corporation has so arranged its concerns as to conceal from the public directors some of its most important operations, and has thereby destroyed the safeguards which were designed to secure the interests of the United States, it would seem to be very clear that it has forfeited its claim to confidence, and is no longer worthy of trust.
"Instead of a board constituted of at least seven directors, according to the charter, at which those appointed by the United States have a right to be present, many of the most important money transactions of the bank have been, and still are, placed under the control of a committee, denominated the exchange committee, of which no one of the public directors has been allowed to be a member since the commencement of the present year. This committee is not even elected by the board, and the public directors have no voice in their appointment. They are chosen by thy president of the bank, and the business of the institution, which ought to be decided on by the board of directors, is, in many instances, transacted by this committee; and no one had a right to be present at their proceedings but the president, and those whom he shall please to name as members of this committee. Thus, loans are made, unknown at the time to a majority of the board, and paper discounted which might probably be rejected at a regular meeting of the directors. The most important operations of the bank are sometimes resolved on and executed by this committee; and its measures are, it appears, designedly, and by regular system, so arranged, as to conceal from the officers of the government transactions in which the public interests are deeply involved. And this fact alone furnishes evidence too strong to be resisted, that the concealment of certain important operations of the corporation from the officers of the government is one of the objects which is intended to be accomplished by means of this committee. The plain words of the charter are violated, in order to deprive the people of the United States of one of the principal securities which the law had provided to guard their interests, and to render more safe the public money intrusted to the care of the bank. Would any individual of ordinary discretion continue his money in the hands of an agent who violated his instructions for the purpose of hiding from him the manner in which he was conducting the business confided to his charge? Would he continue his property in his hands, when he had not only ascertained that concealment had been practised towards him, but when the agent avowed his determination to continue in the same course, and to withhold from him, as far as he could, all knowledge of the manner in which he was employing his funds? If an individual would not be expected to continue his confidence under such circumstances, upon what principle could a different line of conduct be required from the officers of the United States, charged with the care of the public interests? The public money is surely entitled to the same care and protection as that of an individual; and if the latter would be bound, in justice to himself, to withdraw his money from the hands of an agent thus regardless of his duty, the same principle requires that the money of the United States should, under the like circumstances, be withdrawn from the hands of their fiscal agent."
Having shown ample reasons for ceasing to make the public deposits in the Bank of the United States, and that it was done, the Secretary proceeds to the next division of his subject, naturally resulting from his authority to remove, though not expressed in the charter; and that was, to show where he had ordered them to be placed.
"The propriety of removing the deposits being thus evident, and it being consequently my duty to select the places to which they were to be removed, it became necessary that arrangements should be immediately made with the new depositories of the public money, which would not only render it safe, but would at the same time secure to the government, and to the community at large, the conveniencies and facilities that were intended to be obtained by incorporating the Bank of the United States. Measures were accordingly taken for that purpose, and copies of the contracts which have been made with the selected banks, and of the letters of instructions to them from this department, are herewith submitted. The contracts with the banks in the interior are not precisely the same with those in the Atlantic cities. The difference between them arises from the nature of the business transacted by the banks in these different places. The State banks selected are all institutions of high character and undoubted strength, and are under the management and control of persons of unquestioned probity and intelligence. And, in order to insure the safety of the public money, each of them is required, and has agreed, to give security whenever the amount of the deposit shall exceed the half of the amount of the capital actually paid in; and this department has reserved to itself the right to demand security whenever it may think it advisable, although this amount on deposit may not be equal to the sum above stated. The banks selected have also severally engaged to transmit money to any point at which it may be required by the direction of this department for the public service, and to perform all the services to the government which were heretofore rendered by the Bank of the United States. And, by agreements among themselves to honor each other's notes and drafts, they are providing a general currency at least as sound as that of the Bank of the United States, and will afford facilities to commerce and in the business of domestic exchange, quite equal to any which the community heretofore enjoyed. There has not been yet sufficient time to perfect these arrangements, but enough has already been done to show that, even on the score of expediency, a Bank of the United States is not necessary, either for the fiscal operations of the government, or the public convenience; and that every object which the charter to the present bank was designed to attain, may be as effectually accomplished by the State banks. And, if this can be done, nothing that is useful will be lost or endangered by the change, while much that is desirable will be gained by it. For no one of these corporations will possess that absolute and almost unlimited dominion over the property of the citizens of the United States which the present bank holds, and which enables it at any moment, at its own pleasure, to bring distress upon any portion of the community whenever it may deem it useful to its interest to make its power felt. The influence of each of the State banks is necessarily limited to its own immediate neighborhood, and they will be kept in check by the other local banks. They will not, therefore, be tempted by the consciousness of power to aspire to political influence, nor likely to interfere in the elections of the public servants. They will, moreover, be managed by persons who reside in the midst of the people who are to be immediately affected by their measures; and they cannot be insensible or indifferent to the opinions and peculiar interests of those by whom they are daily surrounded, and with whom they are constantly associated. These circumstances always furnish strong safeguards against an oppressive exercise of power, and forcibly recommend the employment of State banks in preference to a Bank of the United States, with its numerous and distant branches.
"In the selection, therefore, of the State banks as the fiscal agents of the government, no disadvantages appear to have been incurred on the score of safety or convenience, or the general interests of the country, while much that is valuable will be gained by the change. I am, however, well aware of the vast power of the Bank of the United States, and of its ability to bring distress and suffering on the country. This is one of the evils of chartering a bank with such an amount of capital, with the right of shooting its branches into every part of the Union, so as to extend its influence to every neighborhood. The immense loan of more than twenty-eight millions of dollars suddenly poured out, chiefly in the Western States, in 1831, and the first four months in 1832, sufficiently attests that the bank is sensible of the power which its money gives it, and has placed itself in an attitude to make the people of the United States feel the weight of its resentment, if they presume to disappoint the wishes of the corporation. By a severe curtailment it has already made it proper to withdraw a portion of the money it held on deposit, and transfer it to the custody of the new fiscal agents, in order to shield the community from the injustice of the Bank of the United States. But I have not supposed that the course of the government ought to be regulated by the fear of the power of the bank. If such a motive could be allowed to influence the legislation of Congress, or the action of the executive departments of the government, there is an end to the sovereignty of the people; and the liberties of the country are at once surrendered at the feet of a moneyed corporation. They may now demand the possession of the public money, or the renewal of the charter; and if these objects are yielded to them from apprehensions of their power, or from the suffering which rapid curtailments on their part are inflicting on the community, what may they not next require? Will submission render such a corporation more forbearing in its course? What law may it not hereafter demand, that it will not, if it pleases, be able to enforce by the same means?"
Thus the keeping of the public moneys went to the local banks, the system of an independent treasury being not then established; and the notes of these banks necessarily required their notes to be temporarily used in the federal payments, the gold currency not being at that time revived. Upon these local banks the federal government was thrown--first, for the safe keeping of its public moneys; secondly, to supply the place of the nineteen millions of bank notes which the national had in circulation; thirdly, to relieve the community from the pressure which the Bank of the United States had already commenced upon it, and which, it was known, was to be pushed to the ultimate point of oppression. But a difficulty was experienced in obtaining these local banks, which would be incredible without understanding the cause. Instead of a competition among them to obtain the deposits, there was holding off, and an absolute refusal on the part of many. Local banks were shy of receiving them--shy of receiving the greatest possible apparent benefit to themselves--shy of receiving the aliment upon which they lived and grew! and why this so great apparent contradiction? It was the fear of the Bank of the United States! and of that capacity to destroy them to which Mr. Biddle had testified in his answers to the Senate's Finance Committee; and which capacity was now known to be joined to the will; for the bank placed in the same category all who should be concerned in the removal--both the government that ordered it, and the local banks which received what it lost. But a competent number were found; and this first attempt to prevent a removal, by preventing a reception of the deposits elsewhere, entirely failed.
XCV. NOMINATION OF GOVERNMENT DIRECTORS, AND THEIR REJECTION
By the charter of the bank, the government was entitled to five directors, to be nominated annually by the President, and confirmed by the Senate. At the commencement of the session of 1833-'34, the President nominated the five, four of them being the same who had served during the current year, and who had made the report on which the order for the removal of the deposits was chiefly founded. This drew upon them the resentment of the bank, and caused them to receive a large share of reproach and condemnation in the report which the committee of the bank drew up, and which the board of directors adopted and published. When these nominations came into the Senate it was soon perceived that there was to be opposition to these four; and for the purpose of testing the truth of the objections, Mr. Kane, of Illinois, submitted the following resolution:
"Resolved, That the nominations of H. D. Gilpin, John T. Sullivan, Peter Wager, and Hugh McEldery, be recommitted to the Committee on Finance, with instructions to inquire into their several qualifications and fitness for the stations to which they have been nominated; also into the truth of all charges preferred by them against the board of directors of the Bank of the United States, and into the conduct of each of the said nominees during the time he may have acted as director of the said bank; and that the said nominees have notice of the times and places of meetings of said committee, and have leave to attend the same."
Which was immediately rejected by the following vote:
"YEAS.--Messrs. Benton, Brown, Forsyth, Grundy, Hendricks, Hill, Kane, King of Alabama, Linn, McKean, Moor, Morris, Rives, Robinson, Shepley, Tallmadge, Tipton, White, Wilkins, Wright.--20.
"NAYS.--Messrs. Bell, Bibb, Black, Calhoun, Chambers, Clay, Clayton, Ewing, Frelinghuysen, Kent, King of Georgia, Knight, Mangum, Naudain, Poindexter, Porter, Prentiss, Robbins, Silsbee, Smith, Southard, Sprague, Swift, Tomlinson, Tyler, Waggaman, Webster.--27."
And this resolution being rejected, requiring a two-fold examination--one into the character and qualifications of the nominees, the other into the truth of their representations against the bank, it was deemed proper to submit another, limited to an inquiry into the character and fitness of the nominees; which was rejected by the same vote. The nominations were then voted upon separately, and each of the four was rejected by the same vote which applied to the first one, to wit, Mr. Gilpin: and which was as follows:
"YEAS.--Messrs. Benton, Black, Brown, Forsyth, Grundy, Hendricks, Hill, Kane, King of Alabama, Linn, McKean, Moore, Morris, Robinson, Shepley, Tallmadge, Tipton, White, Wilkins, Wright.--20.
"NAYS.--Messrs. Bell, Bibb, Calhoun, Chambers, Clay, Ewing, Frelinghuysen, Kent, Knight, Mangum, Naudain, Poindexter, Porter, Prentiss, Preston, Robbins, Silsbee, Smith, Sprague, Swift, Tomlinson, Tyler, Waggaman, Webster.--24."
These rejections being communicated to the President, he immediately felt that it presented a new case for his energy and decision of conduct. The whole of the rejected gentlemen had been confirmed the year before--had all acted as directors for the current year--and there was no complaint against them except from the Bank of the United States; and that limited to their conduct in giving information of transactions in the bank to President Jackson at his written request. Their characters and fitness were above question. That was admitted by the Senate, both by its previous confirmation for the same places, and its present refusal to inquire into those points. The information which they had given to the President had been copied from the books of the bank, and the transactions which they communicated had been objected to by them at the time as illegal and improper; and its truth, unimpeachable in itself, was unimpeached by the Senate in their refusal to inquire into their conduct while directors. It was evident then that they had been rejected for the report which they made to the President; and this brought up the question, whether it was right to punish them for that act? and whether the bank should have the virtual nomination of the government directors by causing those to be rejected which the government nominated? and permitting none to serve but those whose conduct should be subordinate to the views and policy of the bank? These were questions, first, for the Senate, and then for the country; and the President determined to bring it before both in a formal message of re-nomination. He accordingly sent back the names of the four rejected nominations in a message which contained, among others, these passages:
"I disclaim all pretension of right on the part of the President officially to inquire into, or call in question, the reasons of the Senate for rejecting any nomination whatsoever. As the President is not responsible to them for the reasons which induce him to make a nomination, so they are not responsible to him for the reasons which induce them to reject it. In these respects, each is independent of the other and both responsible to their respective constituents. Nevertheless, the attitude in which certain vital interests of the country are placed by the rejection of the gentlemen now re-nominated require of me, frankly, to communicate my views of the consequences which must necessarily follow this act of the Senate, if it be not reconsidered.
"The characters and standing of these gentlemen are well known to the community, and eminently qualify them for the offices to which I propose to appoint them. Their confirmation by the Senate at its last session to the same offices is proof that such was the opinion of them entertained by the Senate at that time; and unless some thing has occurred since to change it, this act may now be referred to as evidence that their talents and pursuits justified their selection.
"The refusal, however, to confirm their nominations to the same offices, shows that there is something in the conduct of these gentlemen during the last year which, in the opinion of the Senate, disqualifies them; and as no charge has been made against them as men or citizens, nothing which impeaches the fair private character they possessed when the Senate gave them their sanction at its last session, and as it moreover appears from the journal of the Senate recently transmitted for my inspection, that it was deemed unnecessary to inquire into their qualifications or character, it is to be inferred that the change in the opinion of the Senate has arisen from the official conduct of these gentlemen. The only circumstances in their official conduct which have been deemed of sufficient importance to attract public attention are the two reports made by them to the executive department of the government, the one bearing date the 22d day of April, and the other the 19th day of August last; both of which reports were communicated to the Senate by the Secretary of the Treasury with his reasons for removing the deposits.
"The truth of the facts stated in these reports, is not, I presume, questioned by any one. The high character and standing of the citizens by whom they were made prevent any doubt upon the subject. Indeed the statements have not been denied by the president of the bank, and the other directors. On the contrary, they have insisted that they were authorized to use the money of the bank in the manner stated in the two reports, and have not denied that the charges there made against the corporation are substantially true.
"It must be taken, therefore, as admitted that the statements of the public directors, in the reports above mentioned, are correct: and they disclose the most alarming abuses on the part of the corporation, and the most strenuous exertions on their part to put an end to them. They prove that enormous sums were secretly lavished in a manner, and for purposes that cannot be justified; and that the whole of the immense capital of the bank has been virtually placed at the disposal of a single individual, to be used, if he thinks proper, to corrupt the press, and to control the proceedings of the government by exercising an undue influence over elections.
"The reports were made in obedience to my official directions; and I herewith transmit copies of my letter calling for information of the proceedings of the bank. Were they bound to disregard the call? Was it their duty to remain silent while abuses of the most injurious and dangerous character were daily practised? Were they bound to conceal from the constituted authorities a course of measures destructive to the best interests of the country, and intended, gradually and secretly, to subvert the foundations of our government, and to transfer its powers from the hands of the people to a great moneyed corporation? Was it their duty to sit in silence at the board, and witness all these abuses without an attempt to correct them; or, in case of failure there, not to appeal to higher authority? The eighth fundamental rule authorizes any one of the directors, whether elected or appointed, who may have been absent when an excess of debt was created, or who may have dissented from the act, to exonerate himself from personal responsibility by giving notice of the fact to the President of the United States; thus recognizing the propriety of communicating to that officer the proceedings of the board in such cases. But, independently of any argument to be derived from the principle recognized in the rule referred to, I cannot doubt for a moment that it is the right and the duty of every director at the board to attempt to correct all illegal proceedings, and in case of failure, to disclose them; and that every one of them, whether elected by the stockholders or appointed by the government, who had knowledge of the facts, and concealed them, would be justly amenable to the severest censure.
"But, in the case of the public directors, it was their peculiar and official duty to make the disclosures; and the call upon them for information could not have been disregarded without a flagrant breach of their trust. The directors appointed by the United States cannot be regarded in the light of the ordinary directors of a bank appointed by the stockholders, and charged with the care of their pecuniary interests in the corporation. They have higher and more important duties. They are public officers. They are placed at the board not merely to represent the stock held by the United States, but to observe the conduct of the corporation, and to watch over the public interests. It was foreseen that this great moneyed monopoly might be so managed as to endanger the interests of the country; and it was therefore deemed necessary, as a measure of precaution, to place at the board watchful sentinels, who should observe its conduct, and stand ready to report to the proper officers of the government every act of the board which might affect injuriously the interests of the people.
"It was, perhaps, scarcely necessary to present to the Senate these views of the powers of the Executive, and of the duties of the five directors appointed by the United States. But the bank is believed to be now striving to obtain for itself the government of the country, and is seeking, by new and strained constructions, to wrest from the hands of the constituted authorities the salutary control reserved by the charter. And as misrepresentation is one of its most usual weapons of attack, I have deemed it my duty to put before the Senate, in a manner not to be misunderstood, the principles on which I have acted.
"Entertaining, as I do, a solemn conviction of the truth of these principles, I must adhere to them, and act upon them, with constancy and firmness.
"Aware, as I now am, of the dangerous machinations of the bank, it is more than ever my duty to be vigilant in guarding the rights of the people from the impending danger. And I should feel that I ought to forfeit the confidence with which my countrymen have honored me, if I did not require regular and full reports of every thing in the proceedings of the bank calculated to affect injuriously the public interests, from the public directors, and if the directors should fail to give the information called for, it would be my imperious duty to exercise the power conferred on me by the law of removing them from office, and of appointing others who would discharge their duties with more fidelity to the public. I can never suffer any one to hold office under me, who would connive at corruption, or who should fail to give the alarm when he saw the enemies of liberty endeavoring to sap the foundations of our free institutions, and to subject the free people of the United States to the dominion of a great moneyed corporation.
"Any directors of the bank, therefore, who might be appointed by the government, would be required to report to the Executive as fully as the late directors have done, and more frequently, because the danger is more imminent; and it would be my duty to require of them a full detail of every part of the proceedings of the corporation, or any of its officers, in order that I might be enabled to decide whether I should exercise the power of ordering a scire facias, which is reserved to the President by the charter, or adopt such other lawful measures as the interests of the country might require. It is too obvious to be doubted, that the misconduct of the corporation would never have been brought to light by the aid of a public proceeding at the board of directors.
"The board, when called on by the government directors, refused to institute an inquiry or require an account, and the mode adopted by the latter was the only one by which the object could be attained. It would be absurd to admit the right of the government directors to give information, and at the same time deny the means of obtaining it. It would be but another mode of enabling the bank to conceal its proceedings, and practice with impunity its corruptions. In the mode of obtaining the information, therefore, and in their efforts to put an end to the abuses disclosed, as well as in reporting them, the conduct of the late directors was judicious and praiseworthy, and the honesty, firmness, and intelligence, which they have displayed, entitle them, in my opinion, to the gratitude of the country.
"If the views of the Senate be such as I have supposed, the difficulty of sending to the Senate any other names than those of the late directors will be at once apparent. I cannot consent to place before the Senate the name of any one who is not prepared, with firmness and honesty, to discharge the duties of a public director in the manner they were fulfilled by those whom the Senate have refused to confirm. If, for performing a duty lawfully required of them by the Executive, they are to be punished by the subsequent rejection of the Senate, it would not only be useless but cruel to place men of character and honor in that situation, if even such men could be found to accept it. If they failed to give the required information, or to take proper measures to obtain it, they would be removed by the Executive. If they gave the information, and took proper measures to obtain it, they would, upon the next nomination, be rejected by the Senate. It would be unjust in me to place any other citizens in the predicament in which this unlooked for decision of the Senate has placed the estimable and honorable men who were directors during the last year.
"If I am not in error in relation to the principles upon which these gentlemen have been rejected, the necessary consequence will be that the bank will hereafter be without government directors and the people of the United States must be deprived of their chief means of protection against its abuses; for, whatever conflicting opinions may exist as to the right of the directors appointed in January, 1833, to hold over until new appointments shall be made, it is very obvious that, whilst their rejection by the Senate remains in force, they cannot, with propriety, attempt to exercise such a power. In the present state of things, therefore, the corporation will be enabled effectually to accomplish the object it has been so long endeavoring to attain. Its exchange committees, and its delegated powers to its president, may hereafter be dispensed with, without incurring the danger of exposing its proceedings to the public view. The sentinels which the law had placed at its board can no longer appear there.
"Justice to myself, and to the faithful officers by whom the public has been so well and so honorably served, without compensation or reward, during the last year, has required of me this full and frank exposition of my motives for nominating them again after their rejection by the Senate. I repeat, that I do not question the right of the Senate to confirm or reject at their pleasure; and if there had been any reason to suppose that the rejection, in this case, had not been produced by the causes to which I have attributed it, or of my views of their duties, and the present importance of their rigid performance, were other than they are, I should have cheerfully acquiesced, and attempted to find others who would accept the unenviable trust. But I cannot consent to appoint directors of the bank to be the subservient instruments, or silent spectators, of its abuses and corruptions; nor can I ask honorable men to undertake the thankless duty, with the certain prospect of being rebuked by the Senate for its faithful performance, in pursuance of the lawful directions of the Executive."
This message brought up the question, virtually, Which was the nominating power, in the case of the government directors of the bank? was it the President and Senate? or the bank and the Senate? for it was evident that the four now nominated were rejected to gratify the bank, and for reasons that would apply to every director that would discharge his duties in the way these four had done--namely, as government directors, representing its stock, guarding its interest, and acting for the government in all cases which concerned the welfare of an institution whose notes were a national currency, whose coffers were the depository of the public moneys, and in which it had a direct interest of seven millions of dollars in its stock. It brought up this question: and if negatived, virtually decided that the nominating power should be in the bank; and that the government directors should no more give such information to the President as these four had given. And this question it was determined to try, and that definitively, in the persons of these four nominated directors, with the declared determination to nominate no others if they were rejected; and so leave the government without representation in the bank. This message of re-nomination was referred to the Senate's Committee of Finance, of which Mr. Tyler was chairman, and who made a report adverse to the re-nominations, and in favor of again rejecting the nominees. The points made in the report were, first, the absolute right of the Senate to reject nominations; secondly, their privilege to give no reasons for their rejections (which the President had not asked); and, thirdly, against the general impolicy of making re-nominations, while admitting both the right and the practice in extraordinary occasions. Some extracts will show its character: thus:
"The President disclaims, indeed, in terms, all right to inquire into the reasons of the Senate for rejecting any nomination; and yet the message immediately undertakes to infer, from facts and circumstances, what those reasons, which influenced the Senate in this case, must have been; and goes on to argue, much at large, against the validity of such supposed reasons. The committee are of opinion that, if, as the President admits, he cannot inquire into the reasons of the Senate for refusing its assent to nominations, it is still more clear that these reasons cannot, with propriety, be assumed, and made subjects of comment.
"In cases in which nominations are rejected for reasons affecting the character of the persons nominated, the committee think that no inference is to be drawn except what the vote shows; that is to say, that the Senate withholds its advice and consent from the nominations. And the Senate, not being bound to give reasons for its votes in these cases, it is not bound, nor would it be proper for it, as the committee think, to give any answer to remarks founded on the presumption of what such reasons must have been in the present case. They feel themselves, therefore, compelled to forego any response whatever to the message of the President, in this particular, as well by the reasons before assigned, as out of respect to that high officer.
"The President acts upon his own views of public policy, in making nominations to the Senate; and the Senate does no more, when it confirms or rejects such nominations.
"For either of these co-ordinate departments to enter into the consideration of the motives of the other, would not, and could not, fail, in the end, to break up all harmonious intercourse between them. This your committee would deplore as highly injurious to the best interests of the country. The President, doubtless, asks himself, in the case of every nomination for office, whether the person be fit for the office; whether he be actuated by correct views and motives; and whether he be likely to be influenced by those considerations which should alone govern him in the discharge of his duties--is he honest, capable, and faithful? Being satisfied in these particulars, the President submits his name to the Senate, where the same inquiries arise, and its decision should be presumed to be dictated by the same high considerations as those which govern the President in originating the nomination.
"For these reasons, the committee have altogether refrained from entering into any discussion of the legal duties and obligations of directors of the bank, appointed by the President and Senate, which forms the main topic of the message.
"The committee would not feel that it had fully acquitted itself of its obligations, if it did not avail itself of this occasion to call the attention of the Senate to the general subject of renomination.
"The committee do not deny that a right of renomination exists; but they are of opinion that, in very clear and strong cases only should the Senate reverse decisions which it has deliberately formed, and officially communicated to the President.
"The committee perceive, with regret, an intimation in the message that the President may not see fit to send to the Senate the names of any other persons to be directors of the bank, except those whose nominations have been already rejected. While the Senate will exercise its own rights according to its own views of its duty, it will leave to other officers of the government to decide for themselves on the manner they will perform their duties. The committee know no reasons why these offices should not be filled; or why, in this case, no further nomination should be made, after the Senate has exercised its unquestionable right of rejecting particular persons who have been nominated, any more than in other cases. The Senate will be ready at all times to receive and consider any such nominations as the President may present to it.
"The committee recommend that the Senate do not advise and consent to the appointment of the persons thus renominated."
While these proceedings were going on in the Senate, the four rejected gentlemen were paying some attention to their own case; and, in a "memorial" addressed to the Senate and to the House of Representatives, answered the charges against them in the Directors' Report, and vindicated their own conduct in giving the information which the President requested--reasserted the truth of that information; and gave further details upon the manner in which they had been systematically excluded from a participation in conducting the main business of the bank, and even from a knowledge of what was done. They said:
"Selected by the President and Senate as government directors of the Bank of the United States, we have endeavored, during the present year, faithfully to discharge the duties of that responsible trust. Appointed without solicitation, deriving from the office no emolument, we have been guided in our conduct by no views but a determination to uphold, so far as was in our power, those principles which we believe actuated the people of the United States in establishing a national bank, and in providing by its charter that they should be represented at the board of directors. We have regarded that institution, not merely as a source of profit to individuals, but as an organ of the government, established by the nation for its own benefit. We have regarded ourselves, not as mere agents of those whose funds have been subscribed towards the capital of the bank, but as officers appointed on behalf of the American people. We have endeavored to govern all our conduct as faithful representatives of them. We have been deterred from this by no preconcerted system to deprive us of our rights, by no impeachment of our motives, by no false views of policy, by no course of management which might be supposed to promote the interests of those concerned in the institution, at the danger or sacrifice of the general good. We have left the other directors to govern themselves as they may think best for the interests of those by whom they were chosen. For ourselves, we have been determined, that where any differences have arisen, involving on the one hand that open and correct course which is beneficial to the whole community, and, on the other, what are supposed to be the interests of the bank, our efforts should be steadily directed to uphold the former, our remonstrances against the latter should be resolute and constant; and, when they proved unavailing, our appeal should be made to those who were more immediately intrusted with the protection of the public welfare.
"In pursuing this course we have been met by an organized system of opposition, on the part of the majority. Our efforts have been thwarted, our motives and actions have been misrepresented, our rights have been denied, and the limits of our duties have been gratuitously pointed out to us, by those who have sought to curtail them to meet their own policy, not that which we believe led to the creation of the offices we hold. Asserting that injury has been done to them by the late measure of the Secretary of the Treasury, in removing the public deposits, an elaborate statement has been prepared and widely circulated; and taking that as their basis, it has been resolved by the majority to present a memorial to the Senate and House of Representatives. We have not, and do not interfere in the controversy which exists between the majority of the board and the executive department of the government; but unjustly assailed as we have been in the statement to which we have referred, we respectfully claim the same right of submitting our conduct to the same tribunal, and asking of the assembled representatives of the American people that impartial hearing, and that fair protection, which all their officers and all citizens have a right to demand. We shall endeavor to present the view we have taken of the relation in which we are placed, as well towards the institution in question as towards the government and people of the United States, to prove that from the moment we took our seats among the directors of the bank, we have been the objects of a systematic opposition; our rights trampled upon, our just interference prevented, and our offices rendered utterly useless, for all the purposes required by the charter; and to show that the statements by the majority of the board, in the document to which we refer, convey an account of their proceedings and conduct altogether illusory and incorrect."
The four gentlemen then state their opinions of their rights, and their duties, as government directors--that they were devised as instruments for the attainment of public objects--that they were public directors, not elected by stockholders, but appointed by the President and Senate--that their duties were not merely to represent a moneyed interest and promote the largest dividend for stockholders, but also to guard all the public and political interest of the government in an institution so largely sharing its support and so deeply interested in its safe and honorable management. And in support of this opinion of their duties they quoted the authority of Gen. Hamilton, founder of the first bank of the United States; and that of Mr. Alexander Dallas, founder of the second and present bank; showing that each of them, and at the time of establishing the two banks respectively, considered the government directors as public officers, bound to watch over the operations of the bank, to oppose all malpractices, and to report them to the government whenever they occurred. And they thus quoted the opinions of those two gentlemen:
"In the celebrated report of Alexander Hamilton, in 1790, that eminent statesman and financier, although then impressed with a persuasion that the government of the country might well leave the management of a national bank to 'the keen, steady, and, as it were, magnetic sense of their own interest,' existing among the private stockholders, yet holds the following remarkable and pregnant language: 'If the paper of a bank is permitted to insinuate itself into all the revenues and receipts of a country; if it is even to be tolerated as the substitute for gold and silver, in all the transactions of business; it becomes, in either view, a national concern of the first magnitude. As such, the ordinary rules of prudence require that the government should possess the means of ascertaining, whenever it thinks fit, that so delicate a trust is executed with fidelity and care. A right of this nature is not only desirable, as it respects the government, but it ought to be equally so to all those concerned in the institution, as an additional title to public and private confidence, and as a thing which can only be formidable to practices that imply mismanagement.'
"In the letter addressed by Alexander James Dallas, the author of the existing bank, to the chairman of the committee on a national currency, in 1815, the sentiments of that truly distinguished and patriotic statesman are explicitly conveyed upon this very point. 'Nor can it be doubted,' he remarks, 'that the department of the government which is invested with the power of appointment to all the important offices of the State, is a proper department to exercise the power of appointment in relation to a national trust of incalculable magnitude. The national bank ought not to be regarded simply as a commercial bank. It will not operate on the funds of the stockholders alone, but much more on the funds of the nation. Its conduct, good or bad, will not affect the corporate credit and resources alone, but much more the credit and resources of the government. In fine, it is not an institution created for the purposes of commerce and profit alone, but much more for the purposes of national policy, as an auxiliary in the exercise of some of the highest powers of the government. Under such circumstances, the public interests cannot be too cautiously guarded, and the guards proposed can never be injurious to the commercial interests of the institution. The right to inspect the general accounts of the bank, may be employed to detect the evils of a mal-administration, but an interior agency in the direction of its affairs will best serve to prevent them.' This last sentence, extracted from the able document of Secretary Dallas, developes at a glance what had been the experience of the American government and people, in the period which elapsed between the time of Alexander Hamilton and that immediately preceding the formation of the present bank. Hamilton conceived that 'a right to inspect the general accounts of the bank,' would enable government 'to detect the evils of a mal-administration,' and their detection he thought sufficient. He was mistaken: at least so thought Congress and their constituents, in 1815. Hence the inflexible spirit which prevailed at the organization of a new bank, in establishing 'an interior agency in the direction of its affairs,' by the appointment of public officers, through whom the evils of a mal-administration might be carefully watched and prevented."
The four gentlemen also showed, in their memorial, that when the bill for the charter of the present bank was under consideration in the Senate, a motion was made to strike out the clause authorizing the appointment of the government directors; and that that motion was resisted, and successfully, upon the ground that they were to be the guardians of the public interests, and to secure a just and honorable administration of the affairs of the bank; that they were not mere bank directors, but government officers, bound to watch over the rights and interests of the government, and to secure a safe and honest management of an institution which bore the name of the United States--was created by it--and in which the United States had so much at stake in its stock, in its deposits, in its circulation, and in the safety of the community which put their faith in it. Having vindicated the official quality of their characters, and shown their duty as well as their right to inform the government of all mal-practices, they entered upon an examination of the information actually given, showing the truth of all that was communicated, and declaring it to be susceptible of proof, by the inspection of the books of the institution, and by an examination of its directors and clerks.
"We confidently assert that there is in it no statement or charge that can be invalidated; that every one is substantiated by the books and records of the bank; that no real error has been pointed out in this elaborate attack upon us by the majority. It is by suppressing facts well known to them, by misrepresenting what we say, by drawing unjust and unfair inferences from particular sentences, by selecting insulated phrases, and by exhibiting partial statements; by making unfounded insinuations, and by unworthily impeaching our motives, that they endeavor to controvert that which they are unable to refute. When the expense account shall be truly and fully exhibited to any tribunal, if it shall be found that the charges we have stated do not exist; when the minutes of the board shall be laid open, if it shall be found the resolutions we have quoted are not recorded; we shall acknowledge that we have been guilty of injustice and of error, but not till then.
"We have thus endeavored to present to the assembled representatives of the American people, a view of the course which, for nearly a year, the majority in a large moneyed institution, established by them for their benefit, have thought proper to pursue towards those who have been placed there, to guard their interests and to watch and control their conduct. We have briefly stated the systematic series of actions by which they have endeavored to deprive them of every right that was conferred on them by the charter, and to assume to themselves a secret, irresponsible, and unlimited power. We have shown that, in endeavoring to vindicate or to save themselves, they have resorted to accusations against us, which they are unable to sustain, and left unanswered charges which, were they not true, it would be easy to repel. We have been urged to this from no desire to enter into the lists with an adversary sustained by all the resources which boundless wealth affords. We have been driven to it by the nature and manner of the attack made upon us, in the document on which the intended memorial to Congress is founded."
But all their representations were in vain. Their nominations were immediately rejected, a second time, and the seal of secrecy preserved inviolate upon the reasons of the rejection. The "proceedings" of the Senate were allowed to be published; that is to say, the acts of the Senate, as a body, such as its motions, votes, reports, &c., but nothing of what was said pending the nominations. A motion was made by Mr. Wright to authorize the publication of the debates, which was voted down; and so differently from what was done in the case of Mr. Van Buren. In that case, the debates on the nomination were published; the reasons for the rejection were shown; and the public were enabled to judge of their validity. In this case no publication of debates was allowed; the report presented by Mr. Tyler gave no hint of the reasons for the rejection; and the act remained where that report put it--on the absolute right to reject, without the exhibition of any reason.
And thus the nomination of the government directors was rejected by the United States Senate, not for the declared, but for the known reason of reporting the misconduct of the bank to the President, and especially as it related to the appointment and the conduct of the exchange committee. A few years afterwards a committee of the stockholders, called the "Committee of Investigation," made a report upon the conduct and condition of the bank, in which this exchange committee is thus spoken of: "The mode in which the committee of exchange transacted their business, shows that there really existed no check whatever upon the officers, and that the funds of the bank were almost entirely at their disposition. That committee met daily, and were attended by the cashier, and at times, by the president. They exercised the power of making the loans and settlements, to full as great an extent as the board itself. They kept no minutes of their proceedings--no book in which the loans made, and business done, were entered; but their decisions and directions were given verbally to the officers, to be by them carried into execution. The established course of business seems to have been, for the first teller to pay on presentation at the counter, all checks, notes, or due bills having indorsed the order, or the initials, of one of the cashiers, and to place these as vouchers in his drawer, for so much cash, where they remained, until just before the regular periodical counting of the cash by the standing committee of the board on the state of the bank. These vouchers were then taken out, and entered as 'bills receivable,' in a small memorandum-book, under the charge of one of the clerks. These bills were not discounted, but bore interest semi-annually, and were secured by a pledge of stock, or some other kind of property. It is evidently impossible under such circumstances, to ascertain or be assured, in regard to any particular loan or settlement, that it was authorized by a majority of the exchange committee. It can be said, however, with entire certainty, that the very large business transacted in this way does not appear upon the face of the discount books--was never submitted to the examination of the members of the board at its regular meetings, nor is any where entered on the minutes as having been reported to that body for their information or approbation."
XCVI. SECRETARY'S REPORT ON THE REMOVAL OF THE DEPOSITS
In the first days of the session Mr. Clay called the attention of the Senate to the report of the Secretary of the Treasury, communicating the fact that he had ordered the public deposits to cease to be made in the Bank of the United States, and giving his reasons for that act, and said:
"When Congress, at the time of the passage of the charter of the bank, made it necessary that these reasons should be submitted, they must have had some purpose in their mind. It must have been intended that Congress should look into these reasons, determine as to their validity; and approve or disapprove them, as might be thought proper. The reasons had now been submitted, and it was the duty of Congress to decide whether or not they were sufficient to justify the act. If there was a subject which, more than any other, seemed to require the prompt action of Congress, it certainly was that which had reference to the custody and care of the public treasury. The Senate, therefore, could not, at too early a period, enter on the question--what was the actual condition of the treasury?
"It was not his purpose to go into a discussion, but he had risen to state that it appeared to him to be his duty as a senator, and he hoped that other senators took similar views of their duty, to look into this subject, and to see what was to be done. As the report of the Secretary of the Treasury had declared the reasons which had led to the removal of the public deposits, and as the Senate had to judge whether, on investigation of these reasons, the act was a wise one or not, he considered that it would not be right to refer the subject to any committee, but that the Senate should at once act on it, not taking it up in the form of a report of a committee, but going into an examination of the reasons as they had been submitted."
Mr. Benton saw two objections to proceeding as Mr. Clay proposed--one, as to the form of his proposition--the other, as to the place in which it was made. The report of the Secretary, charging acts of misconduct as a cause of removal, would require an investigation into their truth. The House of Representatives being the grand inquest of the nation, and properly chargeable with all inquiries into abuses, would be the proper place for the consideration of the Secretary's report--though he admitted that the Senate could also make the inquiry if it pleased; but should do it in the proper way, namely, by inquiring into the truth of the allegations against the bank. He said:
"He requested the Senate to bear in mind that the Secretary had announced, among other reasons which he had assigned for the removal of the deposits, that it had been caused by the misconduct of the bank, and he had gone into a variety of specifications, charging the bank with interfering with the liberties of the people in their most vital elements--the liberty of the press, and the purity of elections. The Secretary had also charged the bank with dishonoring its own paper on several occasions, and that it became necessary to compel it to receive paper of its own branches. Here, then, were grave charges of misconduct, and he wished to know whether, in the face of such charges, this Congress was to go at once, without the previous examination of a committee, into action upon the subject?
"He desired to know whether the Senate were now about to proceed to the consideration of this report as it stood, and, without receiving any evidence of the charges, or taking any course to establish their truth, to give back the money to this institution? He thought it would be only becoming in the bank itself to ask for a committee of scrutiny into its conduct, and that the subject ought to be taken up by the House of Representatives, which, on account of its numbers, its character as the popular branch, and the fact that all money bills originated there, was the most proper tribunal for the hearing of this case. He did not mean to deny that the Senate had the power to go into the examination. But to fix a day now for the decision of so important a case, he considered as premature. Were the whole of the charges to be blown out of the paper by the breath of the Senate? Were they to decide on the question, each senator sitting there as witness and juror in the case? He did not wish to stand there in the character of a witness, unless he was to be examined on oath either at the bar of the Senate, or before a committee of that body, where the evidence would be taken down. He wished to know the manner in which the examination was to be conducted; for he regarded this motion as an admission of the truth of every charge which had been made in the report, and as a flight from investigation."
Mr. Clay then submitted two resolutions in relation to the subject, the second of which after debate, was referred to the committee on finance. They were in these words:
"1st. That, by dismissing the late Secretary of the Treasury, because he would not, contrary to his sense of his own duty, remove the money of the United States in deposit with the Bank of the United States and its branches, in conformity with the President's opinion, and by appointing his successor to effect such removal, which has been done, the President has assumed the exercise of a power over the Treasury of the United States, not granted to him by the constitution and laws, and dangerous to the liberties of the people.
"2d. That the reasons assigned by the Secretary of the Treasury for the removal of the money of the United States deposited in the Bank of the United States and its branches, communicated to Congress on the 3d day of December, 1833, are unsatisfactory and insufficient."
The order for the reference to the finance committee was made in the Senate at four o'clock in the afternoon of one day; and the report upon it was made at noon the next day; a very elaborate argumentative paper, the reading of which by its reporter (Mr. Webster) consumed one hour and a quarter of time. It recommended the adoption of the resolution; and 6000 copies of the report were ordered to be printed. Mr. Forsyth, of Georgia, complimented the committee on their activity in getting out a report of such length and labor, in so short a time, and in the time usually given to the refreshment of dinner and sleep. He said:
"Certainly great credit was due to the committee on finance for the zeal, ability, and industry with which the report had been brought out. He thought the reference was made yesterday at four o'clock; and the committee could hardly have had time to agree on and write out so long a report in the short space of time intervening since then. It was possible that the subject might have been discussed and well understood in the committee before, and that the chairman had time to embody the sentiments of the various members of the committee previous to the reference. If such was the case, it reminded him of what had once happened in one of the courts of justice of the State of Georgia. A grave question of constitutional law was presented before that court, was argued for days with great ability, and when the argument was concluded, the judge drew from his coat pocket a written opinion, which he read, and ordered to be recorded as the opinion of the court. It appeared, therefore, that unless the senator from Massachusetts carried the opinion of the committee in his coat pocket, he could not have presented his report with the unexampled dispatch that had been witnessed."
Mr. Webster, evidently nettled at the sarcastic compliment of Mr. Forsyth, replied to him in a way to show his irritated feelings, but without showing how he came to do so much work in so short a time. He said:
"Had the gentleman come to the Senate this morning in his usual good humor, he would have been easily satisfied on that point. He will recollect that the subject now under discussion was deemed, by every body, to be peculiarly fitted for the consideration of the committee on finance; and that, three weeks ago, I had intimated my intention of moving for such a reference. I had, however, delayed the motion, from considerations of courtesy to other gentlemen, on all sides. But the general subject of the removal of the deposits, had been referred to the committee on finance, by reference of that part of the President's message; and various memorials, in relation to it, had also been referred. The subject has undergone an ample discussion in committee. I had been more than once instructed by the committee to move for the reference of the Secretary's letter, but the motion was postponed, from time to time, for the reasons I have before given. Had the gentleman from Georgia been in the Senate yesterday, he would have known that this particular mode of proceeding was adopted, as was then well understood, for the sole purpose of facilitating the business of the Senate, and of giving the committee an opportunity to express an opinion, the result of their consideration. If the gentleman had heard what had passed yesterday, when the reference was made, he would not have expressed surprise."
The fact was the report had been drawn by the counsel for the bank, and differed in no way in substance, and but little in form, from the report which the bank committee had made on the paper, "purporting to have been signed by Andrew Jackson, and read to what was called a cabinet." But the substance of the resolution (No. 2, of Mr. Clay's), gave rise to more serious objections than the marvellous activity of the committee in reporting upon it with the elaboration and rapidity with which they had done. It was an empty and inoperative expression of opinion, that the Secretary's reasons were "unsatisfactory and insufficient;" without any proposition to do any thing in consequence of that dissatisfaction and insufficiency; and, consequently, of no legislative avail, and of no import except to bring the opinion of senators, thus imposingly pronounced, against the act of the Secretary. The resolve was not practical--was not legislative--was not in conformity to any mode of doing business--and led to no action;--neither to a restoration of the deposits nor to a condemnation of their keeping by the State banks. Certainly the charter, in ordering the Secretary to report, and to report at the first practicable moment, both the fact of a removal, and the reasons for it, was to enable Congress to act--to do something--to legislate upon the subject--to judge the validity of the reasons--and to order a restoration if they were found to be untrue or insufficient; or to condemn the new place of deposit, if it was deemed insecure or improper. All this was too obvious to escape the attention of the democratic members who inveighed against the futility and irrelevance of the resolve, unfit for a legislative body, and only suitable for a town meeting; and answering no purpose as a senatorial resolve but that of political effect against public men. On this point Mr. Forsyth said:
"The subject had then been taken out of the hands of the Senate, and sent to the committee on finance; and for what purpose was it sent thither? Did any one doubt what would be the opinion of the committee on finance? Would such a movement have been made, had it not been intended thereby to give strength to the course of the opposition? He was not in the Senate when the reference was yesterday made, but he had supposed that it was made for the purpose of some report in a legislative form, but it has come back with an argument, and a recommendation of the adoption of the resolution of the senator from Kentucky; and when the resolutions were adopted, would they not still be sent back to that committee for examination? Why had not the committee, who seemed to know so well what would be the opinion of the Senate, imbodied that opinion in a legislative form?"
To the same effect spoke many members, and among others, Mr. Silas Wright, of New-York, who said:
"He took occasion to say, that with regard to the reference made yesterday, he was not so unfortunate as his friend from Georgia, to be absent at the time, and he then, while the motion was pending, expressed his opinion that a reference at four o'clock in the afternoon, to be returned with a report at twelve the next day, would materially change the aspect of the case before the Senate. He was also of opinion, that the natural effect of sending this proposition to the committee on finance would be, to have it returned with a recommendation for some legislative action. In this, however, he had been disappointed, the proposition had been brought back to the Senate in the same form as sent to the committee, with the exception of the very able argument read that morning."
Mr. Webster felt himself called upon to answer these objections, and did so in a way to intimate that the committee were not "green" enough,--that is to say, were too wise--to propose any legislative action on the part of Congress in relation to this removal. He said:
"There is another thing, sir, to which the gentleman has objected. He would have preferred that some legislative recommendation should have accompanied the report--that some law, or joint resolution, should have been recommended. Sir, do we not see what the gentleman probably desires? If not, we must be green politicians. It was not my intention, at this stage of the business, to propose any law, or joint resolution. I do not, at present, know the opinions of the committee on this subject. On this question, at least, to use the gentleman's expression, I do not carry their opinions in my coat pocket. The question, when it arrives, will be a very grave one--one of deep and solemn import--and when the proper time for its discussion arrives, the gentleman from Georgia will have an opportunity to examine it. The first thing is, to ascertain the judgment of the Senate, on the Secretary's reasons for his act."
The meaning of Mr. Webster in this reply--this intimation that the finance committee had got out of the sap, and were no longer "green"--was a declaration that any legislative measure they might have recommended, would have been rejected in the House of Representatives, and so lost its efficacy as a senatorial opinion; and to avoid that rejection, and save the effect of the Senate's opinion, it must be a single and not a joint resolution; and so confined to the Senate alone. The reply of Mr. Webster was certainly candid, but unparliamentary, and at war with all ideas of legislation, thus to refuse to propose a legislative enactment because it would be negatived in the other branch of the national legislature. Finally, the resolution was adopted, and by a vote of 28 to 18; thus:
"YEAS.--Messrs. Bibb, Black, Calhoun, Clay, Clayton, Ewing, Frelinghuysen, Hendricks, Kent, King of Georgia, Knight, Leigh, Mangum, Naudain, Poindexter, Porter, Prentiss, Preston, Robbins, Silsbee, Smith, Southard, Sprague, Swift, Tomlinson, Tyler, Waggaman, Webster.
"NAYS.--Messrs. Benton, Brown, Forsyth, Grundy, Hill, Kane, King of Alabama, Linn, McKean, Moore, Robinson, Shepley, Tallmadge, Tipton, White, Wilkins, Wright."
The futility of this resolve was made manifest soon after its passage. It was nugatory, and remained naked. It required nothing to be done, and nothing was done under it. It became ridiculous. And eventually, and near the end of the session, Mr. Clay proposed it over again, with another resolve attached, directing the return of the deposits to the Bank of the United States; and making it joint, so as to require the consent of both houses, and thus lead to legislative action. In submitting his resolution in this new form he took occasion to allude to their fate in the other branch of the legislature, where rejection was certain, and to intimate censure upon the President for not conforming to the opinion of the Senate in its resolves; as if the adverse opinion of the House (from its recent election, its superior numbers, and its particular charge of the revenue), was not more than a counterpoise to the opinion of the Senate. In this sense, he stood up, and said:
"Whatever might be the fate of these resolutions at the other end of the capitol, or in another building, that consideration ought to have no influence on the course of this body. The Senate owed it to its own character, and to the country, to proceed in the discharge of its duties, and to leave it to others, whether at the other end of the capitol or in another building, to perform their own obligations to the country, according to their own sense of their duty, and their own convictions of responsibility. To them it ought to be left to determine what was their duty, and to discharge that duty as they might think best. For himself, he should be ashamed to return to his constituents without having made every lawful effort in his power to cause the restoration of the public deposits to the United States Bank. While a chance yet remained of effecting the restoration of the reign of the constitution and the laws, he felt that he should not have discharged this duty if he failed to make every effort to accomplish that desirable object.
"The Senate, after passing the resolution which they had already passed, and waiting two months to see whether the Executive would conform his course to the views expressed by this branch of the legislature; after waiting all this time, and perceiving that the error, as the Senate had declared it to be, was still persevered in, and seeing the wide and rapid sweep of ruin over every section of the country, there was still one measure left which might arrest the evil, and that was in the offering of these resolutions--to present them to this body; and, if they passed here, to send them to the other House; and, should they pass them, to present to the President the plain question, if he will return to the constitutional track; or, in opposition to the expressed will of the legislature, retain the control over the millions of public money which are already deposited in the local banks, and which are still coming in there."
Mr. Benton replied to Mr. Clay, showing the propriety of these resolutions if offered at the commencement of the session--their inutility now, so near its end; and the indelicacy in the Senate, in throwing itself between the bank and the House of Representatives, at a moment when the bank directors were standing out in contempt against the House, refusing to be examined by its committee, and a motion actually depending to punish them for this contempt. For this was then the actual condition of the corporation; and, for the Senate to pass a resolution to restore the deposits in these circumstances, was to take the part of the bank against the House--to justify its contumacy--and to express an opinion in favor of its re-charter; as all admitted that restoration of the deposits was wrong unless a re-charter was granted. Mr. B. said:
"He deemed the present moment to be the most objectionable time that could have been selected for proposing to restore the public deposits to the United States Bank. Such a proposition might have been a proper proceeding at the commencement of the session. A joint resolution, at that time, would have been the proper mode; it could have been followed by action; and, if constitutionally passed, would have compelled the restoration of these deposits. But the course was different. A separate resolution was brought in, and passed the Senate; and there it stopped. It was a nugatory resolution, leading to no action. It was such a one as a State legislature, or a public meeting, might adopt, because they had no power to legislate on the subject. But the Senate had the power of legislation; and, six months ago, when the separate resolution was brought in, the Senate, if it intended to act legislatively on the subject at all, ought to have proceeded by joint resolution, or by bill, at that time. But it thought otherwise. The separate resolution was adopted; after adoption, no instruction was given to a committee to bring in a bill; nothing was done to give legislative effect to the decision of the Senate; and now, at the end of six months, the first attempt is made to move in our legislative capacity, and to pass a joint resolution--equivalent to a statute--to compel the restoration of these deposits. This is the state of the proceeding; and, Mr. B. must be permitted to say, and to give his reasons for saying, that the time selected for this first step, in our legislative capacity, in a case so long depending, is most inappropriate and objectionable. Mr. B. would not dwell upon the palpable objections to this proceeding, which must strike every mind. The advanced stage of the session--the propositions to adjourn--the quantity of business on hand--the little probability that the House and the President would concur with the Senate, or that two thirds of the two Houses could be brought to pass the resolution, if the President declined to give it his approbation. These palpable objections must strike every mind and make it appear to be a useless consumption of time for the Senate to pass the resolution.
"Virtually, it included a proposition to re-charter the bank; for the most confidential friends of that institution admitted that it was improper to restore the deposits, unless the bank charter was to be continued. The proposition to restore them, virtually included the proposition to re-charter; and that was a proposition which, after having been openly made on this floor, and leave asked to bring in a bill to that effect, had been abandoned, under the clear conviction that the measure could not pass. Passing from these palpable objections, Mr. B. proceeded to state another reason, of a different kind, and which he held to be imperative of the course which the Senate should now pursue: he alluded to the state of the questions at this moment depending between the Bank of the United States and the House of Representatives, and the nature of which exacted from the Senate the observance of a strict neutrality, and an absolute non-interference between those two bodies. The House of Representatives had ordered an inquiry into the affairs and conduct of the bank. The points of inquiry indicated misconduct of the gravest import, and had been ordered by the largest majority, not less than three or four to one. That inquiry was not yet finished; it was still depending; the committee appointed to conduct it remains organized, and has only reported in part. That report is before the Senate and the public; and shows that the directors of the Bank of the United States have resisted the authority of the House--have made an issue of power between itself and the House--for the trial of which issue a resolution is now depending in the House, and is made the order of the day for Tuesday next.
"Here, then, are two questions depending between the House and the bank; the first, an inquiry into the misconduct of the bank; the second, a proposition to compel the bank to submit to the authority of the House. Was it right for the Senate to interpose between those bodies, while these questions were depending? Was it right to interfere on the part of the bank? Was it right for the Senate to leap into the arena, throw itself between the contending parties, take sides with the bank, and virtually declare to the American people that there was no cause for inquiry into the conduct of the bank, and no ground of censure for resisting the authority of the House? Such would, doubtless, be the effect of the conduct of the Senate, if it should entertain the proposition which is now submitted to it. That proposition is one of honor and confidence to the bank. It proceeds upon the assumption that the bank is right, and the House is wrong, in the questions now depending between them; that the bank has done nothing to merit inquiry, or to deserve censure; and that the public moneys ought to be restored to her keeping, without waiting the end of the investigation which the House has ordered, or the decision of the resolution which affirms that the bank has resisted the authority of the House, and committed a contempt against it. This is the full and fair interpretation--the clear and speaking effect--of the measure now proposed to the Senate. Is it right to treat the House thus? Will the Senate, virtually, intelligibly, and practically, acquit the bank, when the bank will not acquit itself?--will not suffer its innocence to be tested by the recorded voice of its own books, and the living voice of its own directors? These directors have refused to testify; they have refused to be sworn; they have refused to touch the book; because, being directors and corporators, and therefore parties, they cannot be required to give evidence against themselves. And this refusal, the public is gravely told, is made upon the advice of eminent counsel. What counsel? The counsel of the law, or of fear? Certainly, no lawyer--not even a junior apprentice to the law--could give such advice. The right to stand mute, does not extend to the privilege of refusing to be sworn. The right does not attach until after the oath is taken, and is then limited to the specific question, the answer to which might inculpate the witness, and which he may refuse to answer, because he will say, upon his oath, that the answer will criminate himself. But these bank directors refuse to be sworn at all. They refuse to touch the book; and, in that refusal, commit a flagrant contempt against the House of Representatives, and do an act for which any citizen would be sent to jail by any justice of the peace, in America. And is the Senate to justify the directors for this contempt? to get between them and the House? to adopt a resolution beforehand--before the day fixed for the decision of the contempt, which shall throw the weight of the Senate into the scale of the directors against the House, and virtually declare that they are right in refusing to be sworn?"
The resolutions were, nevertheless, adopted, and by the fixed majority of twenty-eight to eighteen, and sent to the House of Representatives for concurrence, where they met the fate which all knew they were to receive. The House did not even take them up for consideration, but continued the course which it had began at the commencement of the session; and which was in exact conformity to the legislative course, and exactly contrary to the course of the Senate. The report of the Secretary of the Treasury, the memorial of the bank, and that of the government directors, were all referred to the Committee of Ways and Means; and by that committee a report was made, by their chairman, Mr. Polk, sustaining the action of the Secretary, and concluding with the four following resolutions:
"1. Resolved, That the Bank of the United States ought not to be re-chartered.
"2. Resolved, That the public deposits ought not to be restored to the Bank of the United States.
"3. Resolved, That the State banks ought to be continued as the places of deposit of the public money, and that it is expedient for Congress to make further provision by law, prescribing the mode of selection, the securities to be taken, and the manner and terms on which they are to be employed.
"4. Resolved, That, for the purpose of ascertaining, as far as practicable, the cause of the commercial embarrassment and distress complained of by numerous citizens of the United States, in sundry memorials which have been presented to Congress at the present session, and of inquiring whether the charter of the Bank of the United States has been violated; and, also, what corruptions and abuses have existed in its management; whether it has used its corporate power or money to control the press, to interfere in politics, or influence elections; and whether it has had any agency, through its management or money, in producing the existing pressure; a select committee be appointed to inspect the books and examine into the proceedings of the said bank, who shall report whether the provisions of the charter have been violated or not; and, also, what abuses, corruptions, or malpractices have existed in the management of said bank; and that the said committee be authorized to send for persons and papers, and to summon and examine witnesses, on oath, and to examine into the affairs of the said bank and branches; and they are further authorized to visit the principal bank, or any of its branches, for the purpose of inspecting the books, correspondence, accounts, and other papers connected with its management or business; and that the said committee be required to report the result of such investigation, together with the evidence they may take, at as early a day as practicable."
These resolutions were long and vehemently debated, and eventually, each and every one, adopted by decided, and some by a great majority. The first one, being that upon the question of the recharter, was carried by a majority of more than fifty votes--134 to 82; showing an immense difference to the prejudice of the bank since the veto session of 1832. The names of the voters on this great question, so long debated in every form in the halls of Congress, the chambers of the State legislatures, and in the forum of the people, deserve to be commemorated--and are as follows:
"YEAS.--Messrs. John Adams, William Allen, Anthony, Archer, Beale, Bean, Beardsley, Beaumont, John Bell, John Blair, Bockee, Boon, Bouldin, Brown, Bunch, Bynum, Cambreleng, Campbell, Carmichael, Carr, Casey, Chaney, Chinn, Claiborne, Samuel Clark, Clay, Clayton, Clowney, Coffee, Connor, Cramer, W. R. Davis, Davenport, Day, Dickerson, Dickinson, Dunlap, Felder, Forester, Foster, W. K. Fuller, Fulton, Galbraith, Gholson, Gillet, Gilmer, Gordon, Grayson, Griffin, Jos. Hall, T. H. Hall, Halsey, Hamer, Hannegan, Jos. M. Harper, Harrison, Hathaway, Hawkins, Hawes, Heath, Henderson, Howell, Hubbard, Abel Huntington, Inge, Jarvis, Richard M. Johnson, Noadiah Johnson, Cave Johnson, Seaborn Jones, Benjamin Jones, Kavanagh, Kinnard, Lane, Lansing, Laporte, Lawrence, Lay, Luke Lea, Thomas Lee, Leavitt, Loyall, Lucas, Lyon, Lytle, Abijah Mann, Joel K. Mann, Mardis, John Y. Mason, Moses Mason, McIntire, McKay, McKinley, McLene McVean, Miller, Henry Mitchell, Robert Mitchell, Muhlenberg, Murphy, Osgood, Page, Parks, Parker, Patterson, D. J. Pearce, Peyton, Franklin Pierce, Pierson, Pinckney, Plummer, Polk, Rencher, Schenck, Schley, Shinn, Smith, Speight, Standifer, Stoddert, Sutherland, William Taylor, Wm. P. Taylor, Francis Thomas, Thomson, Turner, Turrill, Vanderpoel, Wagener, Ward, Wardwell, Wayne, Webster, Whallon.--134.
"NAYS.--Messrs. John Quincy Adams, John J. Allen, Heman Allen, Chilton Allan, Ashley, Banks, Barber, Barnitz, Barringer, Baylies Beaty, James M. Bell, Binney, Briggs, Bull, Burges, Cage, Chambers, Chilton, Choate, William Clark, Corwin, Coulter, Crane, Crockett, Darlington, Amos Davis, Deberry, Deming, Denny, Dennis, Dickson, Duncan, Ellsworth, Evans, Edward Everett, Horace Everett, Fillmore, Foot, Philo C. Fuller, Graham, Grennel, Hiland Hall, Hard, Hardin, James Harper, Hazeltine, Jabez W. Huntington, Jackson, William C. Johnson, Lincoln, Martindale, Marshall, McCarty, McComas, McDuffie, McKennan, Mercer, Milligan, Moore, Pope, Potts, Reed, William B. Shepherd, Aug. H. Shepperd, William Slade, Charles Slade, Sloane, Spangler Philemon Thomas, Tompkins, Tweedy, Vance, Vinton, Watmough, Edward D. White, Frederick Whittlesey, Elisha Whittlesey, Wilde, Williams, Wilson, Young.--82."
The second and third resolutions were carried by good majorities, and the fourth overwhelm overwhelmingly--175 to 42. Mr. Polk immediately moved the appointment of the committee, and that it consist of seven members. It was appointed accordingly, and consisted of Messrs. Francis Thomas of Maryland, chairman; Everett of Massachusetts; Muhlenberg of Pennsylvania; John Y. Mason of Virginia; Ellsworth of Connecticut; Mann of New-York; and Lytle of Ohio. The proceedings of this committee, and the reception it met with from the bank, will be the subject of a future and separate chapter. Under the third resolution the Committee of Ways and Means soon brought in a bill in conformity to its provisions, which was passed by a majority of 22, that is to say, by 112 votes against 90. And thus all the conduct of the President in relation to the bank, received the full sanction of the popular representation; and presented the singular spectacle of full support in one House, and that one specially charged with the subject, while meeting condemnation in the other.
Chapter XCVII
CALL ON THE PRESIDENT FOR A COPY OF THE "PAPER READ TO THE CABINET."
In the first days of the session Mr. Clay submitted a resolution, calling on the President to inform the Senate whether the "paper," published as alleged by his authority, and purporting to have been read to the cabinet in relation to the removal of the deposits, "be genuine or not;" and if it be "genuine," requesting him to cause a copy of it to be laid before the Senate. Mr. Forsyth considered this an unusual call, and wished to know for what purpose it was made. He presumed no one had any doubt of the authenticity of the published copy. He certainly had not. Mr. Clay justified his call on the ground that the "paper" had been published--had become public--and was a thing of general notoriety. If otherwise, and it had remained a confidential communication to his cabinet, he certainly should not ask for it; but not answering as to the use he proposed to make of it, Mr. Forsyth returned to that point, and said he could imagine that one branch of the legislature under certain circumstances might have a right to call for it; but the Senate was not that branch. If the paper was to be the ground of a criminal charge against the President, and upon which he is to be brought to trial, it should come from the House of Representatives, with the charges on which he was to be tried. Mr. Clay rejoined, that as to the uses which were to be made of this "paper" nothing seemed to run in the head of the Senator from Georgia but an impeachment. This seemed to be the only idea he could connect with the call. But there were many other purposes for which it might be used, and he had never intended to make it the ground of impeachment. It might show who was the real author of the removal of the deposits--whether the President, or the Secretary of the Treasury? and whether this latter might not have been a mere automaton. Mr. Benton said there was no parliamentary use that could be made of it, and no such use had been, or could be specified. Only two uses can be made of a paper that may be rightfully called for--one for legislation; the other for impeachment; and not even in the latter case when self-crimination was intended. No legislative use is intimated for this one; and the criminal use is disavowed, and is obliged to be, as the Senate is the tribunal to try, not the inquest to originate impeachments. But this paper cannot be rightfully called for. It is a communication to a cabinet; and communications to the cabinet are the same whether in writing, or in a speech. It is all parol. Could the copy of a speech made to the cabinet be called for? Could an account of the President's conversation with his cabinet be called for? Certainly not! and there is no difference between the written and the spoken communication--between the set speech and a conversation--between a thing made public, or kept secret. The President may refuse to give the copy; and certainly will consult his rights and his self-respect by so refusing. As for the contents of the paper, he has given them to the country, and courts the judgment of the country upon it. He avows his act--gives his reasons--and leaves it to all to judge. He is not a man of concealments, or of irresponsibility. He gave the paper to the public instantly, and authentically, with his name fully signed to it; and any one can say what they please of it. If it is wanted for an invective, or philippic, there it is! ready for use, and seeking no shelter for want of authenticity. It is given to the world, and is expected to stand the test of all examination. Mr. Forsyth asked the yeas and nays on Mr. Clay's call; they were ordered; and the resolution passed by 23 to 18. The next day the President replied to it, and to the effect that was generally foreseen. He declared the Executive to be a co-ordinate branch of the government, and denied the right of the Senate to call upon him for any copies of his communications to his cabinet--either written or spoken. Feeling his responsibility to the American people, he said he should be always ready to explain to them his conduct; knowing the constitutional rights of the Senate, he should never withhold from it any information in his power to give, and necessary to the discharge of its duties. This was the end of the call; and such an end was the full proof that it ought not to have been made. No act could be predicated upon it--no action taken on its communication--none upon the refusal, either of censure or coercion. The President stood upon his rights; and the Senate could not, and did not, say that he was wrong. The call was a wrong step, and gave the President an easy and a graceful victory.
Chapter XCVIII
MISTAKES OF PUBLIC MEN:--GREAT COMBINATION AGAINST GENERAL JACKSON:--COMMENCEMENT OF THE PANIC.
In the year 1783, Mr. Fox, the great parliamentary debater, was in the zenith of his power and popularity, and the victorious leader in the House of Commons. He gave offence to the King, and was dismissed from the ministry, and immediately formed a coalition with Lord North; and commenced a violent opposition to the acts of the government. Patriotism, love of liberty, hatred of misrule and oppression, were the avowed objects of his attacks; but every one saw (to adopt the language of history), that the real difficulty was his own exclusion from office; and that his coalition with his old enemy and all these violent assaults, were only to force himself back into power: and this being seen, his efforts became unavailing, and distasteful to the public; and he lost his power and influence with the people, and sunk his friends with him. More than one hundred and sixty of his supporters in the House of Commons, lost their places at the ensuing election, and were sportively called "Fox's Martyrs;" and when they had a procession in London, wearing the tails of foxes in their hats, and some one wondered where so many tails of that animal had come from, Mr. Pitt slyly said a great many foxes had been lately taken: one, upon an average, in every borough. Mr. Fox, young at that time, lived to recover from this prostration; but his mistake was one of those of which history is full and the lesson of which is in vain read to succeeding generations. Public men continue to attack their adversaries in power, and oppose their measures, while having private griefs of their own to redress, and personal ends of their own to accomplish; and the instinctive sagacity of the people always sees the sinister motive, and condemns the conduct founded upon it.
Mr. Clay, Mr. Calhoun, and Mr. Webster were now all united against General Jackson, with all their friends, and the Bank of the United States. The two former had their private griefs: Mr. Clay in the results of the election, and Mr. Calhoun in the quarrel growing out of the discovery of his conduct in Mr. Monroe's cabinet, and it would have been difficult so to have conducted their opposition, and attack, as to have avoided the imputation of a personal motive. But they so conducted it as to authorize and suggest that imputation. Their movements all took a personal and vindictive, instead of a legislative and remedial, nature. Mr. Taney's reasons for removing the deposits were declared to be "unsatisfactory and insufficient"--being words of reproach, and no remedy; nor was the remedy of restoration proposed until driven into it. The resolution, in relation to Gen. Jackson, was still more objectionable. The Senate had nothing to do with him personally, yet a resolve was proposed, against him entirely personal, charging him with violating the laws and the constitution; and proposing no remedy for this imputed violation, nor for the act of which it was the subject. It was purely and simply a personal censure--a personal condemnation that was proposed; and, to aggravate the proposition, it came from the suggestion of the bank directors' memorial to Congress.
The combination was formidable. The bank itself was a great power, and was able to carry distress into all the business departments of the country; the political array against the President was unprecedented in point of number, and great in point of ability. Besides the three eminent chiefs, there were, in the Senate: Messrs. Bibb of Kentucky; Ezekiel Chambers of Maryland; Clayton of Delaware; Ewing of Ohio; Frelinghuysen of New Jersey; Watkins Leigh of Virginia; Mangum of North Carolina; Poindexter of Mississippi; Alexander Porter of Louisiana; William C. Preston of South Carolina; Southard of New Jersey; Tyler of Virginia. In the House of Representatives, besides the ex-President, Mr. Adams, and the eminent jurist from Pennsylvania, Mr. Horace Binney, there was a long catalogue of able speakers: Messrs. Archer of Virginia; Bell of Tennessee; Burgess of Rhode Island; Rufus Choate of Massachusetts; Corwin of Ohio; Warren R. Davis of South Carolina; John Davis of Massachusetts; Edward Everett of Massachusetts; Millard Fillmore of New-York, afterwards President; Robert P. Letcher of Kentucky; Benjamin Hardin of Kentucky; McDuffie of South Carolina; Peyton of Tennessee; Vance of Ohio; Wilde of Georgia; Wise of Virginia: in all, above thirty able speakers, many of whom spoke many times; besides many others of good ability, but without extensive national reputations. The business of the combination was divided--distress and panic the object--and the parts distributed, and separately cast to produce the effect. The bank was to make the distress--a thing easy for it to do, from its own moneyed power, and its power over other moneyed institutions and money dealers; also to get up distress meetings and memorials, and to lead the public press: the politicians were to make the panic, by the alarms which they created for the safety of the laws, of the constitution, the public liberty, and the public money: and most zealously did each division of the combination perform its part, and for the long period of three full months. The decision of the resolution condemning General Jackson, on which all this machinery of distress and panic was hung, required no part of that time. There was the same majority to vote it the first day as the last; but the time was wanted to get up the alarm and the distress; and the vote, when taken, was not from any exhaustion of the means of terrifying and agonizing the country, but for the purpose of having the sentence of condemnation ready for the Virginia elections--ready for spreading over Virginia at the approach of the April elections. The end proposed to themselves by the combined parties, was, for the bank, a recharter and the restoration of the deposits; for the politicians, an ascent to power upon the overthrow of Jackson.
The friends of General Jackson saw the advantages which were presented to them in the unhallowed combination between the moneyed and a political power--in the personal and vindictive character which they gave to the proceedings--the private griefs of the leading assailants--the unworthy objects to be attained--and the cruel means to be used for their attainment. These friends were also numerous, zealous, able, determined; and animated by the consciousness that they were on the side of their country. They were, in the Senate:--Messrs. Forsyth of Georgia; Grundy of Tennessee; Hill of New Hampshire; Kane of Illinois; King of Alabama; Rives of Virginia; Nathaniel Tallmadge of New York; Hugh L. White of Tennessee; Wilkins of Pennsylvania; Silas Wright of New-York; and the author of this THIRTY YEARS' VIEW. In the House, were:--Messrs. Beardsley of New-York; Cambreleng of New-York; Clay of Alabama; Gillett of New-York; Hubbard of New Hampshire; McKay of North Carolina; Polk of Tennessee; Francis Thomas of Maryland; Vanderpoel of New-York; and Wayne of Georgia.
Mr. Clay opened the debate in a prepared speech, commencing in the style which the rhetoricians call ex abruptu--being the style of opening which the occasion required--that of rousing and alarming the passions. It will be found (its essential parts) in the next chapter.
Chapter XCIX
MR. CLAY'S SPEECH AGAINST PRESIDENT JACKSON ON THE REMOVAL OF THE DEPOSITS--EXTRACTS.
"Mr. Clay addressed the Senate as follows: We are, said he, in the midst of a revolution, hitherto bloodless, but rapidly tending towards a total change of the pure republican character of the government, and to the concentration of all power in the hands of one man. The powers of Congress are paralyzed, except when exerted in conformity with his will, by frequent and an extraordinary exercise of the executive veto, not anticipated by the founders of the constitution, and not practised by any of the predecessors of the present Chief Magistrate. And, to cramp them still more, a new expedient is springing into use, of withholding altogether bills which have received the sanction of both Houses of Congress, thereby cutting off all opportunity of passing them, even if, after their return, the members should be unanimous in their favor. The constitutional participation of the Senate in the appointing power is virtually abolished, by the constant use of the power of removal from office without any known cause, and by the appointment of the same individual to the same office, after his rejection by the Senate. How often have we, senators, felt that the check of the Senate, instead of being, as the constitution intended, a salutary control, was an idle ceremony? How often, when acting on the case of the nominated successor, have we felt the injustice of the removal? How often have we said to each other, well, what can we do? the office cannot remain vacant without prejudice to the public interests; and, if we reject the proposed substitute, we cannot restore the displaced, and perhaps some more unworthy man may be nominated.
"The judiciary has not been exempted from the prevailing rage for innovation. Decisions of the tribunals, deliberately pronounced, have been contemptuously disregarded, and the sanctity of numerous treaties openly violated. Our Indian relations, coeval with the existence of the government, and recognized and established by numerous laws and treaties, have been subverted; the rights of the helpless and unfortunate aborigines trampled in the dust, and they brought under subjection to unknown laws, in which they have no voice, promulgated in an unknown language. The most extensive and most valuable public domain that ever fell to the lot of one nation is threatened with a total sacrifice. The general currency of the country, the life-blood of all its business, is in the most imminent danger of universal disorder and confusion. The power of internal improvement lies crushed beneath the veto. The system of protection of American industry was snatched from impending destruction at the last session; but we are now coolly told by the Secretary of the Treasury, without a blush, 'that it is understood to be conceded on all hands that a tariff for protection merely is to be finally abandoned.' By the 3d of March, 1837, if the progress of innovation continue, there will be scarcely a vestige remaining of the government and its policy as they existed prior to the 3d of March, 1829. In a term of years, a little more than equal to that which was required to establish our liberties, the government will have been transformed into an elective monarchy--the worst of all forms of government.
"Such is a melancholy but faithful picture of the present condition of our public affairs. It is not sketched or exhibited to excite, here or elsewhere, irritated feeling; I have no such purpose. I would, on the contrary, implore the Senate and the people to discard all passion and prejudice, and to look calmly but resolutely upon the actual state of the constitution and the country. Although I bring into the Senate the same unabated spirit, and the same firm determination, which have ever guided me in the support of civil liberty, and the defence of our constitution, I contemplate the prospect before us with feelings of deep humiliation and profound mortification.
"It is not among the least unfortunate symptoms of the times, that a large proportion of the good and enlightened men of the Union, of all parties, are yielding to sentiments of despondency. There is, unhappily, a feeling of distrust and insecurity pervading the community. Many of our best citizens entertain serious apprehensions that our Union and our institutions are destined to a speedy overthrow. Sir, I trust that the hopes and confidence of the country will revive. There is much occasion for manly independence and patriotic vigor, but none for despair. Thank God, we are yet free; and, if we put on the chains which are forging for us, it will be because we deserve to wear them. We should never despair of the republic. If our ancestors had been capable of surrendering themselves to such ignoble sentiments, our independence and our liberties would never have been achieved. The winter of 1776-'77, was one of the gloomiest periods of our revolution; but on this day, fifty-seven years ago, the father of his country achieved a glorious victory, which diffused joy, and gladness, and animation throughout the States. Let us cherish the hope that, since he has gone from among us, Providence, in the dispensation of his mercies, has near at hand, in reserve for us, though yet unseen by us, some sure and happy deliverance from all impending dangers.
"When we assembled here last year, we were full of dreadful forebodings. On the one hand, we were menaced with a civil war, which, lighting up in a single State, might spread its flames throughout one of the largest sections of the Union. On the other, a cherished system of policy, essential to the successful prosecution of the industry of our countrymen, was exposed to imminent danger of destruction. Means were happily applied by Congress to avert both calamities, the country was reconciled, and our Union once more became a band of friends and brothers. And I shall be greatly disappointed, if we do not find those who were denounced as being unfriendly to the continuance of our confederacy, among the foremost to fly to its preservation, and to resist all executive encroachments.
"Mr. President, when Congress adjourned at the termination of the last session, there was one remnant of its powers--that over the purse--left untouched. The two most important powers of civil government are those of the sword and purse; the first, with some restrictions, is confided by the constitution to the Executive, and the last to the legislative department. If they are separate, and exercised by different responsible departments, civil liberty is safe; but if they are united in the hands of the same individual, it is gone. That clear-sighted and revolutionary orator and patriot, Patrick Henry, justly said, in the Virginia convention, in reply to one of his opponents, 'Let him candidly tell me where and when did freedom exist, when the sword and purse were given up from the people? Unless a miracle in human affairs interposed, no nation ever retained its liberty after the loss of the sword and the purse. Can you prove, by any argumentative deduction, that it is possible to be safe without one of them? If you give them up, you are gone.'
"Up to the period of the termination of the last session of Congress, the exclusive constitutional power of Congress over the treasury of the United States had never been contested. Among its earliest acts was one to establish the treasury department, which provided for the appointment of a treasurer, who was required to give bond and security, in a very large amount, 'to receive and keep the moneys of the United States, and disburse the same upon warrants drawn by the Secretary of the Treasury, countersigned by the Comptroller, recorded by the Register, and not otherwise.' Prior to the establishment of the present Bank of the United States, no treasury or place had been provided or designated by law for the safe keeping of the public moneys, but the treasurer was left to his own discretion and responsibility. When the existing bank was established, it was provided that the public moneys should be deposited with it, and, consequently, that bank became the treasury of the United States; for, whatever place is designated by law for the keeping of the public money of the United States, under the care of the treasurer of the United States, is, for the time being, the treasury. Its safety was drawn in question by the Chief Magistrate, and an agent was appointed a little more than a year ago to investigate its ability. He reported to the Executive that it was perfectly safe. His apprehensions of its solidity were communicated by the President to Congress, and a committee was appointed to examine the subject; they, also, reported in favor of its security. And, finally, among the last acts of the House of Representatives, prior to the close of the last session, was the adoption of a resolution, manifesting its entire confidence in the ability and solidity of the bank.
"After all these testimonies to the perfect safety of the public moneys in the place appointed by Congress, who could have supposed that the place would have been changed? Who could have imagined that, within sixty days of the meeting of Congress, and, as it were, in utter contempt of its authority, the change should have been ordered? Who would have dreamed that the treasurer should have thrown away the single key to the treasury, over which Congress held ample control, and accepted, in lieu of it, some dozens of keys, over which neither Congress nor he has any adequate control? Yet, sir, all this has been done; and it is now our solemn duty to inquire, 1st. By whose authority it has been ordered; and, 2d. Whether the order has been given in conformity with the constitution and laws of the United States.
"I agree, sir, and I am very happy whenever I can agree with the President, as to the immense importance of these questions. He says, in the paper which I hold in my hand, that he looks upon the pending question as involving higher considerations than the 'mere transfer of a sum of money from one bank to another. Its decision may affect the character of our government for ages to come.' And, with him. I view it as 'of transcendent importance, both in the principles and the consequences it involves.' It is a question of all time, for posterity as well as for us--of constitutional government or monarchy--of liberty or slavery. As I regard it, I hold the bank as nothing, as perfectly insignificant, faithful as it has been in the performance of all its duties. I hold a sound currency as nothing, essential as it is to the prosperity of every branch of business, and to all conditions of society, and efficient as the agency of the bank has been in providing the country with a currency as sound as ever existed, and unsurpassed by any in Christendom. I consider even the public faith, sacred and inviolable as it ever should be, as comparatively nothing. All these questions are merged in the greater and mightier question of the constitutional distribution of the powers of the government, as affected by the recent executive innovation. The real inquiry is, shall all the barriers which have been erected by the caution and wisdom of our ancestors, for the preservation of civil liberty, be prostrated and trodden under foot, and the sword and the purse be at once united in the hands of one man? Shall the power of Congress over the treasury of the United States, hitherto never contested, be wrested from its possession, and be henceforward wielded by the Chief Magistrate? Entertaining these views of the magnitude of the question before us, I shall not, at least to-day, examine the reasons which the President has assigned for his act. If he has no power to perform it, no reasons, however cogent, can justify the deed. None can sanctify an illegal or unconstitutional act.
"The question is, by virtue of whose will, power, dictation, was the removal of the deposits effected? By whose authority and determination were they transferred from the Bank of the United States, where they were required by the law to be placed, and put in banks which the law had never designated? And I tell gentlemen opposed to me, that I am not to be answered by the exhibition of a formal order bearing the signature of R. B. Taney, or any one else. I want to know, not the amanuensis or clerk who prepared or signed the official form, but the authority or the individual who dictated or commanded it; not the hangman who executes the culprit, but the tribunal which pronounced the sentence. I want to know that power in the government, that original and controlling authority, which required and commanded the removal of the deposits. And, I repeat the question, is there a senator, or intelligent man in the whole country, who entertains a solitary doubt?
"Hear what the President himself says in his manifesto read to his cabinet: 'The President deems it his duty to communicate in this manner to his cabinet the final conclusions of his own mind, and the reasons on which they are founded.' And, at the conclusion of this paper, what does he say? 'The President again repeats that he begs his cabinet to consider the proposed measure as his own, in the support of which he shall require no one of them to make a sacrifice of opinion or principle. Its responsibility has been assumed, after the most mature deliberation and reflection, as necessary to preserve the morals of the people, the freedom of the press, and the purity of the elective franchise, without which all will unite in saying that the blood and treasure expended by our forefathers, in the establishment of our happy system of government, will have been vain and fruitless. Under these convictions, he feels that a measure so important to the American people cannot be commenced too soon; and he therefore names the 1st day of October next as a period proper for the change of the deposits, or sooner, provided the necessary arrangements with the State banks can be made.' Sir, is there a senator here who will now tell me that the removal was not the measure and the act of the President?
"Thus is it evident that the President, neither by the act creating the treasury department, nor by the bank charter, has any power over the public treasury. Has he any by the constitution? None, none. We have already seen that the constitution positively forbids any money from being drawn from the treasury but in virtue of a previous act of appropriation. But the President himself says that 'upon him has been devolved, by the constitution, and the suffrages of the American people, the duty of superintending the operation of the executive departments of the government, and seeing that the laws are faithfully executed.' If there existed any such double source of executive power, it has been seen that the treasury department is not an executive department; but that, in all that concerns the public treasury, the Secretary is the agent or representative of Congress, acting in obedience to their will, and maintaining a direct intercourse with them. By what authority does the President derive power from the mere result of an election? In another part of this same cabinet paper he refers to the suffrages of the people as a source of power independent of a system in which power has been most carefully separated, and distributed between three separate and independent departments. We have been told a thousand times, and all experience assures us, that such a division is indispensable to the existence and preservation of freedom. We have established and designated offices, and appointed officers in each of those departments, to execute the duties respectively allotted to them. The President, it is true, presides over the whole; specific duties are often assigned by particular laws to him alone, or to other officers under his superintendence. His parental eye is presumed to survey the whole extent of the system in all its movements; but has he power to come into Congress, and to say such laws only shall you pass; to go into the courts, and prescribe the decisions which they may pronounce; or even to enter the offices of administration, and, where duties are specifically confided to those officers, to substitute his will to their duty? Or, has he a right, when those functionaries, deliberating upon their own solemn obligations to the people, have moved forward in their assigned spheres, to arrest their lawful progress, because they have dared to act contrary to his pleasure? No, sir; no, sir. His is a high and glorious station, but it is one of observation and superintendence. It is to see that obstructions in the forward movement of government, unlawfully interposed, shall be abated by legitimate and competent means.
"Such are the powers on which the President relies to justify his seizure of the treasury of the United States. I have examined them, one by one, and they all fail, utterly fail, to bear out the act. We are brought irresistibly to the conclusions, 1st, That the invasion of the public treasury has been perpetrated by the removal of one Secretary of the Treasury, who would not violate his conscientious obligations, and by the appointment of another, who stood ready to subscribe his name to the orders of the President; and, 2dly, That the President has no color of authority in the constitution or laws for the act which he has thus caused to be performed.
"And now let us glance at some of the tremendous consequences which may ensue from this high-handed measure. If the President may, in a case in which the law has assigned a specific duty exclusively to a designated officer, command it to be executed, contrary to his own judgment, under the penalty of an expulsion from office, and, upon his refusal, may appoint some obsequious tool to perform the required act, where is the limit to his authority? Has he not the same right to interfere in every other case, and remove from office all that he can remove, who hesitate or refuse to do his bidding contrary to their own solemn convictions of their duty? There is no resisting this inevitable conclusion. Well, then, how stands the matter of the public treasury? It has been seen that the issue of warrants upon the treasury is guarded by four independent and hitherto responsible checks, each controlling every other, and all bound by the law, but all holding their offices, according to the existing practice of the government, at the pleasure of the President. The Secretary signs, the Comptroller countersigns, the Register records, and the Treasurer pays the warrant. We have seen that the President has gone to the first and highest link in the chain, and coerced a conformity to his will. What is to prevent, whenever he desires to draw money from the public treasury, his applying the same penalty of expulsion, under which Mr. Duane suffered, to every link of the chain, from the Secretary of the Treasury down, and thus to obtain whatever he demands? What is to prevent a more compendious accomplishment of his object, by the agency of transfer drafts, drawn on the sole authority of the Secretary, and placing the money at once wherever, or in whatsoever hands, the President pleases?
"What security have the people against the lawless conduct of any President? Where is the boundary to the tremendous power which he has assumed? Sir, every barrier around the public treasury is broken down and annihilated. From the moment that the President pronounced the words, 'This measure is my own; I take upon myself the responsibility of it,' every safeguard around the treasury was prostrated, and henceforward it might as well be at the Hermitage. The measure adopted by the President is without precedent. I beg pardon--there is one; but we must go down for it to the commencement of the Christian era. It will be recollected by those who are conversant with Roman history, that, after Pompey was compelled to retire to Brundusium, Cæsar, who had been anxious to give him battle, returned to Rome, 'having reduced Italy,' says the venerable biographer, 'in sixty days--[the exact period between the day of the removal of the deposits and that of the commencement of the present session of Congress, without the usual allowance of any days of grace]--in sixty days, without bloodshed.' The biographer proceeds:
"'Finding the city in a more settled condition than he expected, and many senators there, he addressed them in a mild and gracious manner [as the President addressed his late Secretary of the Treasury], and desired them to send deputies to Pompey with an offer of honorable terms of peace,' &c. As Metellus, the tribune, opposed his taking money out of the public treasury, and cited some laws against it--[such, Sir, I suppose, as I have endeavored to cite on this occasion]--Cæsar said 'Arms and laws do not flourish together. If you are not pleased at what I am about, you have only to withdraw. [Leave the office, Mr. Duane!] War, indeed, will not tolerate much liberty of speech. When I say this, I am renouncing my own right; for you, and all those whom I have found exciting a spirit of faction against me, are at my disposal.' Having said this, he approached the doors of the treasury, and, as the keys were not produced, he sent for workmen to break them open. Metellus again opposed him, and gained credit with some for his firmness; but Cæsar, with an elevated voice, threatened to put him to death if he gave him any further trouble. 'And you know very well, young man,' said he, 'that this is harder for me to say than to do.' Metellus, terrified by the menace, retired; and Cæsar was afterwards easily and readily supplied with every thing necessary for that war.
"Mr. President (said Mr. C.) the people of the United States are indebted to the President for the boldness of this movement; and as one, among the humblest of them, I profess my obligations to him. He has told the Senate, in his message refusing an official copy of his cabinet paper, that it has been published for the information of the people. As a part of the people, the Senate, if not in their official character, have a right to its use. In that extraordinary paper he has proclaimed that the measure is his own and that he has taken upon himself the responsibility of it. In plain English, he has proclaimed an open, palpable and daring usurpation!
"For more than fifteen years, Mr. President, I have been struggling to avoid the present state of things. I thought I perceived, in some proceedings, during the conduct of the Seminole war, a spirit of defiance to the constitution and to all law. With what sincerity and truth--with what earnestness and devotion to civil liberty, I have struggled, the Searcher of all human hearts best knows. With what fortune, the bleeding constitution of my country now fatally attests.
"I have, nevertheless, persevered; and, under every discouragement, during the short time that I expect to remain in the public councils, I will persevere. And if a bountiful Providence would allow an unworthy sinner to approach the throne of grace, I would beseech Him, as the greatest favor He could grant to me here below, to spare me until I live to behold the people, rising in their majesty, with a peaceful and constitutional exercise of their power, to expel the Goths from Rome; to rescue the public treasury from pillage, to preserve the constitution of the United States; to uphold the Union against the danger of the concentration and consolidation of all power in the hands of the Executive; and to sustain the liberties of the people of this country against the imminent perils to which they now stand exposed.
"And now, Mr. President, what, under all these circumstances, is it our duty to do? Is there a senator who can hesitate to affirm, in the language of the resolutions, that the President has assumed a dangerous power over the treasury of the United States, not granted to him by the constitution and the laws; and that the reasons assigned for the act by the Secretary of the Treasury are insufficient and unsatisfactory?
"The eyes and the hopes of the American people are anxiously turned to Congress. They feel that they have been deceived and insulted; their confidence abused; their interests betrayed; and their liberties in danger. They see a rapid and alarming concentration of all power in one man's hands. They see that, by the exercise of the positive authority of the Executive, and his negative power exerted over Congress, the will of one man alone prevails, and governs the republic. The question is no longer what laws will Congress pass, but what will the Executive not veto? The President, and not Congress, is addressed for legislative action. We have seen a corporation, charged with the execution of a great national work, dismiss an experienced, faithful, and zealous president, afterwards testify to his ability by a voluntary resolution, and reward his extraordinary services by a large gratuity, and appoint in his place an executive favorite, totally inexperienced and incompetent, to propitiate the President. We behold the usual incidents of approaching tyranny. The land is filled with spies and informers, and detraction and denunciation are the orders of the day. People, especially official incumbents in this place, no longer dare speak in the fearless tones of manly freemen, but in the cautious whispers of trembling slaves. The premonitory symptoms of despotism are upon us; and if Congress do not apply an instantaneous and effective remedy, the fatal collapse will soon come on, and we shall die--ignobly die--base, mean, and abject slaves; the scorn and contempt of mankind; unpitied, unwept, unmourned!"
C. MR. BENTON'S SPEECH IN REPLY TO MR. CLAY--EXTRACTS
Mr. Clay had spoken on three successive days, being the last days of the year 1833. Mr. Benton followed him,--and seeing the advantage which was presented in the character of the resolve, and that of the speech in support of it, all bearing the impress of a criminal proceeding, without other result than to procure a sentence of condemnation against the President for violating the laws and the constitution, endangering the public liberty and establishing a tyranny,--he took up the proceeding in that sense; and immediately turned all the charges against the resolution itself and its mover, as a usurpation of the rights of the House of Representatives in originating an impeachment, and a violation of law and constitution in trying it ex parte; and said:
"The first of these resolutions contained impeachable matter, and was in fact, though not in form, a direct impeachment of the President of the United States. He recited the constitutional provision, that the President might be impeached--1st, for treason; 2d, for bribery; 3d, for high crimes; 4th, for misdemeanors; and said that the first resolution charged both a high crime and a misdemeanor upon the President; a high crime, in violating the laws and constitution, to obtain a power over the public treasure, to the danger of the liberties of the people; and a misdemeanor, in dismissing the late Secretary of the Treasury from office. Mr. B. said that the terms of the resolution were sufficiently explicit to define a high crime, within the meaning of the constitution, without having recourse to the arguments and declarations used by the mover in illustration of his meaning; but, if any doubt remained on that head, it would be removed by the whole tenor of the argument, and especially that part of it which compared the President's conduct to that of Cæsar, in seizing the public treasure, to aid him in putting an end to the liberties of his country; and every senator, in voting upon it, would vote as directly upon the guilt or innocence of the President, as if he was responding to the question of guilty or not guilty, in the concluding sentence of a formal impeachment.
"We are, then, said Mr. B., trying an impeachment! But how? The constitution gives to the House of Representatives the sole power to originate impeachments; yet we originate this impeachment ourselves. The constitution gives the accused a right to be present; but he is not here. It requires the Senate to be sworn as judges; but we are not so sworn. It requires the Chief Justice of the United States to preside when the President is tried; but the Chief Justice is not presiding. It gives the House of Representatives a right to be present, and to manage the prosecution; but neither the House nor its managers are here. It requires the forms of criminal justice to be strictly observed; yet all these forms are neglected and violated. It is a proceeding in which the First Magistrate of the republic is to be tried without being heard, and in which his accusers are to act as his judges!
"Mr. B. called upon the Senate to consider well what they did before they proceeded further in the consideration of this resolution. He called upon them to consider what was due to the House of Representatives, whose privilege was invaded, and who had a right to send a message to the Senate, complaining of the proceeding, and demanding its abandonment. He conjured them to consider what was due to the President, who was thus to be tried in his absence for a most enormous crime; what was due to the Senate itself, in thus combining the incompatible characters of accusers and judges, and which would itself be judged by Europe and America. He dwelt particularly on the figure which the Senate would make in going on with the consideration of this resolution. It accused the President of violating the constitution; and itself committed twenty violations of the same constitution in making the accusation! It accused him of violating a single law, and itself violated all the laws of criminal justice in prosecuting him for it. It charged him with designs dangerous to the liberties of the citizens, and immediately trampled upon the rights of all citizens, in the person of their Chief Magistrate.
"Mr. B. descanted upon the extraordinary organization of the Senate, and drew an argument from it in favor of the reserve and decorum of their proceedings. The Senate were lawgivers, and ought to respect the laws already made; they were the constitutional advisers of the President, and should observe, as nearly as possible, the civil relations which the office of adviser presumes; they might be his judges, and should be the last in the world to stir up an accusation against him, to prejudge his guilt, or to attack his character with defamatory language. Decorum, the becoming ornament of every functionary, should be the distinguishing trait of an American senator, who combines, in his own office, the united dignities of the executive, the legislative, and the judicial character. In his judicial capacity especially, he should sacrifice to decorum and propriety; and shun, as he would the contagious touch of sin and pestilence, the slightest approach to the character of prosecutor. He referred to British parliamentary law to show that the Lords could not join in an accusation, because they were to try it; but here the Senate was sole accuser, and had nothing from the House of Representatives to join; but made the accusation out and out, and tried it themselves. He said the accusation was a double one--for a high crime and a misdemeanor--and the latter a more flagrant proceeding than the former; for it assumed to know for what cause the President had dismissed his late Secretary, and undertook to try the President for a thing which was not triable or impeachable.
"From the foundation of the government, it had been settled that the President's right to dismiss his secretaries resulted from his constitutional obligation to see that the laws were faithfully executed. Many Presidents had dismissed secretaries, and this was the first time that the Senate had ever undertaken to found an impeachment upon it, or had assumed to know the reasons for which it was done.
"Mr. B. said that two other impeachments seemed to be going on, at the same time, against two other officers, the Secretary of the Treasury and the Treasurer; so that the Senate was brimful of criminal business. The Treasurer and the Secretary of the Treasury were both civil officers, and were both liable to impeachment for misdemeanors in office; and great misdemeanors were charged upon them. They were, in fact, upon trial, without the formality of a resolution; and, if hereafter impeached by the House of Representatives, the Senate, if they believed what they heard, would be ready to pronounce judgment and remove them from office, without delay or further examination.
"Mr. B. then addressed himself to the Vice-President (Mr. Van Buren), upon the novelty of the scene which was going on before him, and the great change which had taken place since he had served in the Senate. He commended the peculiar delicacy and decorum of the Vice-President himself, who, in six years' service, in high party times, and in a decided opposition, never uttered a word, either in open or secret session, which could have wounded the feelings of a political adversary, if he had been present and heard it. He extolled the decorum of the opposition to President Adams' administration. If there was one brilliant exception, the error was redeemed by classic wit, and the heroic readiness with which a noble heart bared its bosom to the bullets of those who felt aggrieved. Still addressing himself to the Vice-President, Mr. B. said that if he should receive some hits in the place where he sat, without the right to reply, he must find consolation in the case of his most illustrious predecessor, the great apostle of American liberty (Mr. Jefferson), who often told his friends of the manner in which he had been cut at when presiding over the Senate, and personally annoyed by the inferior--no, young and inconsiderate--members of the federal party.
"Mr. B. returned to the point in debate. The President, he repeated, was on trial for a high crime, in seizing the public treasure in violation of the laws and the constitution. Was the charge true? Does the act which he has done deserve the definition which has been put upon it? He had made up his own mind that the public deposits ought to be removed from the Bank of the United States. He communicated that opinion to the Secretary of the Treasury; the Secretary refused to remove them; the President removed him, and appointed a Secretary who gave the order which he thought the occasion required. All this he did in virtue of his constitutional obligation to see the laws faithfully executed; and in obedience to the same sense of duty which would lead him to dismiss a Secretary of War, or of the Navy, who would refuse to give an order for troops to march, or a fleet to sail. True, it is made the duty of the Secretary of the Treasury to direct the removal of the deposits; but the constitution makes it the duty of the President to see that the Secretary performs his duty; and the constitution is as much above law as the President is above the Secretary.
"The President is on trial for a misdemeanor--for dismissing his Secretary without sufficient cause. To this accusation there are ready answers: first, that the President may dismiss his Secretaries without cause; secondly, that the Senate has no cognizance of the case; thirdly, that the Senate cannot assume to know for what cause the Secretary in question was dismissed.
"The Secretary of the Treasury is on trial. In order to get at the President, it was found necessary to get at a gentleman who had no voice on this floor. It had been found necessary to assail the Secretary of the Treasury in a manner heretofore unexampled in the history of the Senate. His religion, his politics, his veracity, his understanding, his Missouri restriction vote, had all been arraigned. Mr. B. said he would leave his religion to the constitution of the United States, Catholic as he was, and although 'the Presbyterian might cut off his head the first time he went to mass;' for he could see no other point to the anecdote of Cromwell and the capitulating Catholics, to whom he granted the free exercise of their religion, only he would cut off their heads if they went to mass. His understanding he would leave to himself. The head which could throw the paper which was taken for a stone on this floor, but which was, in fact, a double-headed chain-shot fired from a forty-eight pounder, carrying sails, masts, rigging, all before it, was a head that could take care of itself. His veracity would be adjourned to the trial which was to take place for misquoting a letter of Secretary Crawford, and he had no doubt would end as the charge did for suppressing a letter which was printed in extenso among our documents, and withholding the name and compensation of an agent; when that name and the fact of no compensation was lying on the table. The Secretary of the Treasury was arraigned for some incidental vote on the Missouri restriction, when he was a member of the Maryland legislature. Mr. B. did not know what that vote was; but he did know that a certain gentleman, who lately stood in the relation of sergeant to another gentleman, in a certain high election, was the leader of the forces which deforced Missouri of her place in the Union for the entire session which he first attended (not served) in the Congress of the United States. His politics could not be severely tried in the time of the alien and sedition law, when he was scarce of age; but were well tried during the late war, when he sided with his country, and received the constant denunciations of that great organ of federalism, the Federal Republican newspaper. For the rest, Mr. B. admitted that the Secretary had voted for the elder Adams to be President of the United States, but denied the right of certain persons to make that an objection to him. Mr. B. dismissed these personal charges, for the present, and would adjourn their consideration until his (Mr. Taney's) trial came on, for which the senator from Kentucky (Mr. Clay), stood pledged; and after the trial was over, he had no doubt but that the Secretary of the Treasury, although a Catholic and a federalist, would be found to maintain his station in the first rank of American gentlemen and American patriots.
"Mr. B. took up the serious charges against the Secretary: that of being the mere instrument of the President in removing the deposits, and violating the constitution and laws of the land. How far he was this mere instrument, making up his mind, in three days, to do what others would not do at all, might be judged by every person who would refer to the opposition papers for the division in the cabinet about the removal of the deposits; and which constantly classed Mr. Taney, then the Attorney General, on the side of removal. This classification was correct, and notorious, and ought to exempt an honorable man, if any thing could exempt him, from the imputation of being a mere instrument in a great transaction of which he was a prime counsellor. The fact is, he had long since, in his character of legal adviser to the President, advised the removal of these deposits; and when suddenly and unexpectedly called upon to take the office which would make it his duty to act upon his own advice, he accepted it from the single sense of honor and duty; and that he might not seem to desert the President in flinching from the performance of what he had recommended. His personal honor was clean; his personal conduct magnanimous; his official deeds would abide the test of law and truth.
"Mr. B. said he would make short work of long accusations, and demolish, in three minutes, what had been concocting for three months, and delivering for three days in the Senate. He would call the attention of the Senate to certain clauses of law, and certain treasury instructions which had been left out of view, but which were decisive of the accusation against the Secretary. The first was the clause in the bank charter, which invested the Secretary with the power of transferring the public funds from place to place. It was the 15th section of the charter: he would read it. It enacted that whenever required by the Secretary of the Treasury, the bank should give the necessary facilities for transferring the public funds from place to place, within the United States, or territories thereof; and for distributing the same in payment of the public creditors, &c.
"Here is authority to the Secretary to transfer the public moneys from place to place, limited only by the bounds of the United States and its territories; and this clause of three lines of law puts to flight all the nonsense about the United States Bank being the treasury, and the Treasurer being the keeper of the public moneys, with which some politicians and newspaper writers have been worrying their brains for the last three months. In virtue of this clause, the Secretary of the Treasury gave certain transfer drafts to the amount of two millions and a quarter; and his legal right to give the draft was just as clear, under this clause of the bank charter, as his right to remove the deposits was under another clause of it. The transfer is made by draft; a payment out of the treasury is made upon a warrant; and the difference between a transfer draft and a treasury warrant was a thing necessary to be known by every man who aspired to the office of illuminating a nation, or of conducting a criminal prosecution, or even of understanding what he is talking about. They have no relation to each other. The warrant takes the money out of the treasury: the draft transfers it from point to point, for the purpose of making payment: and all this attack upon the Secretary of the Treasury is simply upon the blunder of mistaking the draft for the warrant.
"The senator from Kentucky calls upon the people to rise, and drive the Goths from the capital. Who are those Goths? They are General Jackson and the democratic party,--he just elected President over the senator himself, and the party just been made the majority in the House--all by the vote of the people. It is their act that has put these Goths in possession of the capital to the discomfiture of the senator and his friends; and he ought to be quite sure that he felt no resentment at an event so disastrous to his hopes, when he has indulged himself with so much license in vituperating those whom the country has put over him.
"The senator from Kentucky says the eyes and the hopes of the country are now turned upon Congress. Yes, Congress is his word, and I hold him to it. And what do they see? They see one House of Congress--the one to which the constitution gives the care of the purse, and the origination of impeachments, and which is fresh from the popular elections: they see that body with a majority of above fifty in favor of the President and the Secretary of the Treasury, and approving the act which the senator condemns. They see that popular approbation in looking at one branch of Congress, and the one charged by the constitution with the inquisition into federal grievances. In the other branch they see a body far removed from the people, neglecting its proper duties, seizing upon those of another branch, converting itself into a grand inquest, and trying offences which itself prefers; and in a spirit which bespeaks a zeal quickened by the sting of personal mortification. He says the country feels itself deceived and betrayed--insulted and wronged--its liberties endangered--and the treasury robbed: the representatives of the people in the other House, say the reverse of all this--that the President has saved the country from the corrupt dominion of a great corrupting bank, by taking away from her the public money which she was using in bribing the press, subsidizing members, purchasing the venal, and installing herself in supreme political power.
"The senator wishes to know what we are to do? What is our duty to do? I answer, to keep ourselves within our constitutional duties--to leave this impeachment to the House of Representatives--leave it to the House to which it belongs, and to those who have no private griefs to avenge--and to judges, each of whom should retire from the bench, if he happened to feel in his heart the spirit of a prosecutor instead of a judge. The Senate now tries General Jackson; it is subject to trial itself--to be tried by the people, and to have its sentence reversed."
The corner-stone of Mr. Clay's whole argument was, that the Bank of the United States was the treasury of the United States. This was his fundamental position, and utterly unfounded, and shown to be so by the fourteenth article of what was called the constitution of the bank. It was the article which provided for the establishment of branches of the mother institution, and all of which except the branch at Washington city, were to be employed, or not employed, as the directors pleased, as depositories of the public money; and consequently were not made so by any law of Congress. The article said:
"The directors of said corporation shall establish a competent office of discount and deposit in the District of Columbia, whenever any law of the United States shall require such an establishment; also one such office of discount and deposit in any State in which two thousand shares shall have been subscribed, or may be held, whenever, upon application of the legislature of such State, Congress may, by law, require the same: Provided, The directors aforesaid shall not be bound to establish such office before the whole of the capital of the bank shall have been paid up. And it shall be lawful for the directors of the said corporation to establish offices of discount and deposit wheresoever they shall think fit, within the United States or the territories thereof, to such persons, and under such regulations, as they shall deem proper, not being contrary to law, or the constitution of the bank. Or, instead of establishing such offices, it shall be lawful for the directors of the said corporation, from time to time, to employ any other bank or banks, to be first approved by the Secretary of the Treasury, at any place or places that they may deem safe and proper, to manage and transact the business proposed as aforesaid, other than for the purposes of discount, to be managed and transacted by such officers, under such agreements, and subject to such regulations, as they shall deem just and proper.
"Mr. B. went on to remark upon this article, that it placed the establishment of but one branch in the reach or power of Congress, and that one was in the District of Columbia--in a district of ten miles square--leaving the vast extent of twenty-four States, and three Territories, to obtain branches for themselves upon contingencies not dependent upon the will or power of Congress; or requiring her necessities, or even her convenience, to be taken into the account. A law of Congress could obtain a branch in this district; but with respect to every State, the establishment of the branch depended, first, upon the mere will and pleasure of the bank; and, secondly, upon the double contingency of a subscription, and a legislative act, within the State. If then, the mother bank does not think fit, for its own advantage, to establish a branch; or, if the people of a State do not acquire 2,000 shares of the stock of the bank, and the legislature, therefore, demand it, no branch will be established in any State, or any Territory of the Union. Congress can only require a branch, in any State, after two contingencies have happened in the State; neither of them having the slightest reference to the necessities, or even convenience, of the federal government.
"Here, then, said Mr. B., is the Treasury established for the United States! A Treasury which is to have an existence but at the will of the bank, or the will of a State legislature, and a few of its citizens, enough to own 2,000 shares of stock worth $100 a share! A Treasury which Congress has no hand in establishing, and cannot preserve after it is established; for the mother bank, after establishing her branches, may shut them up, or withdraw them. Such a thing has already happened. Branches in the West have been, some shut up, some withdrawn; and, in these cases, the Treasury was broken up, according to the new-fangled conception of a national Treasury. No! said Mr. B., the Federal bank is no more the Treasury of the United States than the State banks are. One is just as much the Treasury as the other; and made so by this very 14th fundamental article of the constitution of the bank. Look at it! Look at the alternative! Where branches are not established, the State banks are to be employed!
"The Bank of the United States is to select the State bank; the Secretary of the Treasury is to approve the selection; and if he does so the State bank so selected, and so approved becomes the keeper of the public moneys; it becomes the depository of the public moneys; it transfers them; it pays them out; it does every thing except make discounts for the mother bank and issue notes; it does everything which the federal government wants done; and that is nothing but what a bank of deposit can do. The government makes no choice between State banks and branch banks. They are all one to her. They stand equal in her eyes; they stand equal in the charter of the bank itself; and the horror that has now broken out against the State banks is a thing of recent conception--a very modern impulsion; which is rebuked and condemned by the very authority to which it traces its source. Mr. B. said, the State banks were just as much made the federal treasury by the bank charter, as the United States Bank itself was: and that was sufficient to annihilate the argument which now sets up the federal bank for the federal treasury. But the fact was, that neither was made the Treasury; and it would be absurd to entertain such an idea for an instant; for the federal bank may surrender her charter, and cease to exist--it can do so at any moment it pleases--the State banks may expire upon their limitation; they may surrender; they may be dissolved in many ways, and so cease to exist; and then there would be no Treasury! What an idea, that the existence of the Treasury of this great republic is to depend, not upon itself, but upon corporations, which may cease to exist, on any day, by their own will, or their own crimes."
The debates on this subject brought out the conclusion that the treasury of the United States had a legal, not a material existence--that the Treasurer having no buildings, and keepers, to hold the public moneys, resorted (when the treasury department was first established), to the collectors of the revenue, leaving the money in their hands until drawn out for the public service--which was never long, as the revenues were then barely adequate to meet the daily expenses of the government; afterwards to the first Bank of the United States--then to local banks; again to the second bank; and now again to local banks. In all these cases the keepers of the public moneys were nothing but keepers, being the mere agents of the Secretary of the treasury in holding the moneys which he had no means of holding himself. From these discussions came the train of ideas which led to the establishment of the independent treasury--that is to say, to the creation of officers, and the erection of buildings, to hold the public moneys.
Chapter CI
CONDEMNATION OF PRESIDENT JACKSON--MR. CALHOUN'S SPEECH--EXTRACTS.
It was foreseen at the time of the coalition between Mr. Calhoun and Mr. Clay, in which they came together--a conjunction of the two political poles--on the subject of the tariff, and laid it away for a term to include two presidential elections--that the effect would be (even if it was not the design), to bring them together upon all other subjects against General Jackson. This expectation was not disappointed. Early in the debate on Mr. Clay's condemnatory resolution, Mr. Calhoun took the floor in its support; and did Mr. Clay the honor to adopt his leading ideas of a revolution, and of a robbery of the treasury. He not only agreed that we were in the middle of a revolution, but also asserted, by way of consolation to those who loved it, that revolutions never go backwards--an aphorism destined, in this case, to be deceived by the event. In the pleasing anticipation of this aid from Mr. Calhoun and his friends, Mr. Clay had complacently intimated the expectation of this aid in his opening speech; and in that intimation there was no mistake. Mr. Calhoun responded to it thus:
"The Senator from Kentucky [Mr. Clay] anticipates with confidence that the small party, who were denounced at the last session as traitors and disunionists, will be found, on this trying occasion, standing in the front rank, and manfully resisting the advance of despotic power. I (said Mr. C.) heard the anticipation with pleasure, not on account of the compliment which it implied, but the evidence which it affords that the cloud which has been so industriously thrown, over the character and motive of that small but patriotic party begins to be dissipated. The Senator hazarded nothing in the prediction. That party is the determined, the fixed, and sworn enemy to usurpation, come from what quarter and under what form it may--whether from the executive upon the other departments of this government, or from this government on the sovereignty and rights of the States. The resolution and fortitude with which it maintained its position at the last session, under so many difficulties and dangers, in defence of the States against the encroachments of the general government, furnished evidence not to be mistaken, that that party, in the present momentous struggle, would be found arrayed in defence of the rights of Congress against the encroachments of the President. And let me tell the Senator from Kentucky (said Mr. C.) that, if the present struggle against executive usurpation be successful, it will be owing to the success with which we, the nullifiers--I am not afraid of the word--maintained the rights of the States against the encroachment of the general government at the last session."
This assurance of aid was no sooner given than complied with. Mr. Calhoun, and all his friends came immediately to the support of the resolution, and even exceeded their author in their zeal against the President and his Secretary. Notwithstanding the private grief which Mr. Calhoun had against General Jackson in the affair of the "correspondence" and the "exposition"--the contents of which latter were well known though not published--and notwithstanding every person was obliged to remember that grief while Mr. Calhoun was assailing the General, and alleging patriotism for the motive, and therefore expected that it should have imposed a reserve upon him; yet, on the contrary he was most personally bitter, and used language which would be incredible, if not found, as it is, in his revised reports of his speeches. Thus, in enforcing Mr. Clay's idea of a robbery of the treasury after the manner of Julius Cæsar, he said:
"The senator from Kentucky, in connection with this part of his argument, read a striking passage from one of the most pleasing and instructive writers in any language [Plutarch], the description of Cæsar forcing himself, sword in hand, into the treasury of the Roman commonwealth. We are at the same stage of our political revolution, and the analogy between the two cases is complete, varied only by the character of the actors and the circumstances of the times. That was a case of an intrepid and bold warrior, as an open plunderer, seizing forcibly the treasury of the country, which, in that republic, as well as ours, was confined to the custody of the legislative department of the government. The actors in our case are of a different character--artful, cunning, and corrupt politicians, and not fearless warriors. They have entered the treasury, not sword in hand, as public plunderers, but, with the false keys of sophistry, as pilferers, under the silence of midnight. The motive and the object are the same, varied in like manner by circumstances and character. 'With money I will get men, and with men money,' was the maxim of the Roman plunderer. With money we will get partisans, with partisans votes, and with votes money, is the maxim of our public pilferers. With men and money Cæsar struck down Roman liberty, at the fatal battle of Pharsalia, never to rise again; from which disastrous hour all the powers of the Roman republic were consolidated in the person of Cæsar, and perpetuated in his line. With money and corrupt partisans a great effort is now making to choke and stifle the voice of American liberty, through all its natural organs; by corrupting the press; by overawing the other departments; and, finally, by setting up a new and polluted organ, composed of office-holders and corrupt partisans, under the name of a national convention, which, counterfeiting the voice of the people, will, if not resisted, in their name dictate the succession; when the deed will be done, the revolution be completed, and all the powers of our republic, in like manner, be consolidated in the President, and perpetuated by his dictation."
On the subject of the revolution, "bloodless as yet," in the middle of which we were engaged, and which was not to go backwards, Mr. Calhoun said:
"Viewing the question in its true light, as a struggle on the part of the Executive to seize on the power of Congress, and to unite in the President the power of the sword and the purse, the senator from Kentucky [Mr. Clay] said truly, and, let me add, philosophically, that we are in the midst of a revolution. Yes, the very existence of free governments rests on the proper distribution and organization of power; and, to destroy this distribution, and thereby concentrate power in any one of the departments, is to effect a revolution. But while I agree with the senator that we are in the midst of a revolution, I cannot agree with him as to the time at which it commenced, or the point to which it has progressed. Looking to the distribution of the powers of the general government, into the legislative, executive, and judicial departments, and confining his views to the encroachment of the executive upon the legislative, he dates the commencement of the revolution but sixty days previous to the meeting of the present Congress. I (said Mr. C.) take a wider range, and date it from an earlier period. Besides the distribution among the departments of the general government, there belongs to our system another, and a far more important division or distribution of power--that between the States and the general government, the reserved and delegated rights, the maintenance of which is still more essential to the preservation of our institutions. Taking this wide view of our political system, the revolution, in the midst of which we are, began, not as supposed by the senator from Kentucky, shortly before the commencement of the present session, but many years ago, with the commencement of the restrictive system, and terminated its first stage with the passage of the force bill of the last session, which absorbed all the rights and sovereignty of the States, and consolidated them in this government. Whilst this process was going on, of absorbing the reserved powers of the States, on the part of the general government, another commenced, of concentrating in the executive the powers of the other two--the legislative and judicial departments of the government; which constitutes the second stage of the revolution, in which we have advanced almost to the termination."
Mr. Calhoun brought out in this debate the assertion, in which he persevered afterwards until it produced the quarrel in the Senate between himself and Mr. Clay, that it was entirely owing to the military and nullifying attitude of South Carolina that the "compromise" act was passed, and that Mr. Clay himself would have been prostrated in the attempt to compromise. He thus, boldly put forward that pretension:
"To the interposition of the State of South Carolina we are indebted for the adjustment of the tariff question; without it, all the influence of the senator from Kentucky over the manufacturing interest, great as it deservedly is, would have been wholly incompetent, if he had even thought proper to exert it, to adjust the question. The attempt would have prostrated him, and those who acted with him, and not the system. It was the separate action of the State that gave him the place to stand upon, created the necessity for the adjustment, and disposed the minds of all to compromise."
The necessity of his own position, and the indispensability of Mr. Calhoun's support, restrained Mr. Clay, and kept him quiet under this cutting taunt; but he took ample satisfaction for it some years later, when the triumph of General Jackson in the "expunging resolution," and the decline of their own prospects for the Presidency, dissolved their coalition, and remitted them to their long previous antagonistic feelings. But there was another point in which Mr. Calhoun intelligibly indicated what was fully believed at the time, namely, that the basis of the coalition which ostensibly had for its object the reduction of the tariff, was in reality a political coalition to act against General Jackson, and to the success of which it was essential that their own great bone of contention was to be laid aside, and kept out of the way, while the coalition was in force. It was to enable them to unite their forces against the "encroachments and corruptions of the Executive" that the tariff was then laid away; and although the removal of the deposits was not then foreseen, as the first occasion for this conjunction, yet there could have been no failure of finding occasions enough for the same purpose when the will was so strong--as subsequent events so fully proved. General Jackson could do but little during the remainder of his Presidency which was not found to be "unconstitutional, illegal, corrupt, usurping, and dangerous to the liberties of the people;" and as such, subject to the combined attack of Mr. Clay and Mr. Calhoun and their respective friends. All this was as good as told, and with an air of self-satisfaction at the foresight of it, in these paragraphs of Mr. Calhoun's speech:
"Now, I put the solemn question to all who hear me: if the tariff had not then been adjusted--if it was now an open question--what hope of successful resistance against the usurpations of the Executive, on the part of this or any other branch of the government, could be entertained? Let it not be said that this is the result of accident--of an unforeseen contingency. It was clearly perceived, and openly stated, that no successful resistance could be made to the corruption and encroachments of the Executive, while the tariff question remained open, while it separated the North from the South, and wasted the energy of the honest and patriotic portions of the community against each other, the joint effort of which is indispensably necessary to expel those from authority who are converting the entire powers of government into a corrupt electioneering machine; and that, without separate State interposition, the adjustment was impossible. The truth of this position rests not upon the accidental state of things, but on a profound principle growing out of the nature of government, and party struggles in a free State. History and reflection teach us, that when great interests come into conflict, and the passions and the prejudices of men are aroused, such struggles can never be composed by the influence of any individuals, however great; and if there be not somewhere in the system some high constitutional power to arrest their progress, and compel the parties to adjust the difference, they go on till the State falls by corruption or violence.
"I will (said Mr. C.) venture to add to these remarks another, in connection with the point under consideration, not less true. We are not only indebted to the cause which I have stated for our present strength in this body against the present usurpation of the Executive, but if the adjustment of the tariff had stood alone, as it ought to have done, without the odious bill which accompanied it--if those who led in the compromise had joined the State-rights party in their resistance to that unconstitutional measure, and thrown the responsibility on its real authors, the administration, their party would have been so prostrated throughout the entire South, and their power, in consequence, so reduced, that they would not have dared to attempt the present measure; or, if they had, they would have been broken and defeated."
Mr. Calhoun took high ground of contempt and scorn against the Secretary's reasons for removing the deposits, so far as founded in the misconduct of the bank directors--declaring that he would not condescend to notice them--repulsing them as intrusive--and shutting his eyes upon these accusations, although heinous in their nature, then fully proved; and since discovered to be far more criminal than then suspected, and such as to subject their authors, a few years afterwards, to indictments in the Court of General Sessions, for the county of Philadelphia, for a "conspiracy to cheat and defraud the stockholders;"--indictments on which they were saved from jury trials by being "habeas corpus'd" out of the custody of the sheriff of the county, who had arrested them on bench warrants. Mr. Calhoun thus repulsed all notice of these accusations:
"The Secretary has brought forward many and grievous charges against the bank. I will not condescend to notice them. It is the conduct of the Secretary, and not that of the bank, which is immediately under examination; and he has no right to drag the conduct of the bank into the issue, beyond its operations in regard to the deposits. To that extent I am prepared to examine his allegations against it; but beyond that he has no right--no, not the least--to arraign the conduct of the bank; and I, for one, will not, by noticing his charges beyond that point, sanction his authority to call its conduct in question. But let the point in issue be determined, and I, as far as my voice extends, will give to those who desire it the means of the freest and most unlimited inquiry into its conduct."
But, while supporting Mr. Clay generally in his movement against the President, Mr. Calhoun disagreed with him in the essential averment in his resolve, that his removal of Mr. Duane because he would not, and the appointment of Mr. Taney because he would, remove them was a usurpation of power. Mr. Calhoun held it to be only an "abuse;" and upon that point he procured a modification of his resolve from Mr. Clay, notwithstanding the earnestness of his speech on the charge of usurpation. And he thus stated his objection:
"But, while I thus severely condemn the conduct of the President in removing the former Secretary and appointing the present, I must say, that in my opinion it is a case of the abuse, and not of the usurpation of power. I cannot doubt that the President has, under the constitution, the right of removal from office; nor can I doubt that the power of removal, wherever it exists, does, from necessity, involve the power of general supervision; nor can I doubt that it might be constitutionally exercised in reference to the deposits. Reverse the present case; suppose the late Secretary, instead of being against, had been in favor of the removal; and that the President, instead of being for, had been against it, deeming the removal not only inexpedient, but, under circumstances illegal; would any man doubt that, under such circumstances, he had a right to remove his Secretary, if it were the only means of preventing the removal of the deposits? Nay, would it not be his indispensable duty to have removed him? and, had he not, would not he have been universally and justly held responsible?"
In all the vituperation of the Secretary, as being the servile instrument of the President's will, the members who indulged in that species of attack were acting against public and recorded testimony. Mr. Taney was complying with his own sense of public duty when he ordered the removal. He had been attorney-general of the United States when the deposit-removal question arose, and in all the stages of that question had been in favor of the removal; so that his conduct was the result of his own judgment and conscience; and the only interference of the President was to place him in a situation where he would carry out his convictions of duty. Mr. Calhoun, in this speech, absolved himself from all connection with the bank, or dependence upon it, or favors from it. Though its chief author, he would have none of its accommodations: and said:
"I am no partisan of the bank; I am connected with it in no way, by moneyed or political ties. I might say, with truth, that the bank owes as much to me as to any other individual in the country; and I might even add that, had it not been for my efforts, it would not have been chartered. Standing in this relation to the institution, a high sense of delicacy, a regard to independence and character, has restrained me from any connection with the institution whatever, except some trifling accommodations, in the way of ordinary business, which were not of the slightest importance either to the bank or myself."
Certainly there was no necessity for Mr. Calhoun to make this disclaimer. His character for pecuniary integrity placed him above the suspicion of a venal motive. His errors came from a different source--from the one that Cæsar thought excusable when empire was to be attained. Mr. Clay also took the opportunity to disclaim any present connection with, or past favors from the bank; and,
"Begged permission to trespass a few moments longer on the Senate, to make a statement concerning himself personally. He had heard that one high in office had allowed himself to assert that a dishonorable connection had subsisted between him (Mr. C), and the Bank of the United States. When the present charter was granted, he voted for it; and, having done so, he did not feel himself at liberty to subscribe, and he did not subscribe, for a single share in the stock of the bank, although he confidently anticipated a great rise in the value of the stock. A few years afterwards, during the presidency of Mr. Jones, is was thought, by some of his friends at Philadelphia, expedient to make him (Mr. C), a director of the Bank of the United States; and he was made a director without any consultation with him. For that purpose five shares were purchased for him, by a friend, for which he (Mr. C), afterwards paid. When he ceased to be a director, a short time subsequently, he disposed of those shares. He does not now own, and has not for many years been the proprietor of, a single share.
"When Mr. Cheves was appointed president of the bank, its affairs in the States of Kentucky and Ohio were in great disorder; and his (Mr. C.'s), professional services were engaged during several years for the bank in those States. He brought a vast number of suits, and transacted a great amount of professional business for the bank. Among other suits was that for the recovery of the one hundred thousand dollars, seized under the authority of a law of Ohio, which he carried through the inferior and supreme courts. He was paid by the bank the usual compensation for these services, and no more. And he ventured to assert that no professional fees were ever more honestly and fairly earned. He had not, however, been the counsel for the bank for upwards of eight years past. He does not owe the bank, or any one of its branches, a solitary cent. About twelve or fifteen years ago, owing to the failure of a highly estimable (now deceased), friend, a large amount of debt had been, as his indorser, thrown upon him (Mr. C), and it was principally due to the Bank of the United States. He (Mr C.) established for himself a rigid economy, a sinking fund, and worked hard, and paid off the debt long since, without receiving from the bank the slightest favor. Whilst others around him were discharging their debts in property, at high valuations, he periodically renewed his note, paying the discount, until it was wholly extinguished."
But it was not every member who could thus absolve himself from bank connection, favor, or dependence. The list of congressional borrowers, or retainers, was large--not less than fifty of the former at a time, and a score of the latter; and even after the failure of the bank and the assignment of its effects, and after all possible liquidations had been effected by taking property at "high valuation," allowing largely for "professional services," and liberal resorts to the "profit and loss" account, there remained many to be sued by the assignees to whom their notes were passed; and some of such early date as to be met by a plea of the statute of limitations in bar of the stale demand. Mr. Calhoun concluded with a "lift to the panic" in a reference to the "fearful crisis" in which we were involved--the dangers ahead to the liberties of the country--the perils of our institutions--and a hint at his permanent remedy--his panacea for all the diseases of the body politic--dissolution of the Union. He ended thus:
"We have (said Mr. C), arrived at a fearful crisis; things cannot long remain as they are. It behooves all who love their country, who have affection for their offspring, or who have any stake in our institutions, to pause and reflect. Confidence is daily withdrawing from the general government. Alienation is hourly going on. These will necessarily create a state of things inimical to the existence of our institutions, and, if not speedily arrested, convulsions must follow, and then comes dissolution or despotism; when a thick cloud will be thrown over the cause of liberty and the future prospects of our country."