LVIII. THE TWENTY-SECOND CONGRESS…

LVIII. THE TWENTY-SECOND CONGRESS

This body commenced its first session the 5th of December, 1831, and terminated that session July 17th, 1832; and for this session alone belongs to the most memorable in the annals of our government. It was the one at which the great contest for the renewal of the charter of the Bank of the United States was brought on, and decided--enough of itself to entitle it to lasting remembrance, though replete with other important measures. It embraced, in the list of members of the two Houses, much shining talent, and a great mass of useful ability, and among their names will be found many, then most eminent in the Union, and others destined to become so. The following are the names:

SENATE.

MAINE--John Holmes, Peleg Sprague.

NEW HAMPSHIRE--Samuel Bell, Isaac Hill.

MASSACHUSETTS--Daniel Webster, Nathaniel Silsbee.

RHODE ISLAND--Nehemiah R. Knight, Asher Robbins.

CONNECTICUT--Samuel A. Foot, Gideon Tomlinson.

VERMONT--Horatio Seymour, Samuel Prentiss.

NEW-YORK--Charles E. Dudley, Wm. Marcy.

NEW JERSEY--M. Dickerson, Theodore Frelinghuysen.

PENNSYLVANIA--Geo. M. Dallas, Wm. Wilkins.

DELAWARE--John M. Clayton, Arnold Naudain.

MARYLAND--E. F. Chambers, Samuel Smith.

VIRGINIA--Littleton W. Tazewell, John Tyler.

NORTH CAROLINA--B. Brown, W. P. Mangum.

SOUTH CAROLINA--Robert Y. Hayne, S. D. Miller.

GEORGIA--George M. Troup, John Forsyth.

KENTUCKY--George M. Bibb, Henry Clay.

TENNESSEE--Felix Grundy, Hugh L. White.

OHIO--Benjamin Ruggles, Thomas Ewing.

LOUISIANA--J. S. Johnston, Geo. A. Waggaman.

INDIANA--William Hendricks, Robert Hanna.

MISSISSIPPI--Powhatan Ellis, Geo. Poindexter.

ILLINOIS--Elias K. Kane, John M. Robinson.

ALABAMA--William R. King, Gabriel Moore.

MISSOURI--Thomas H. Benton, Alex. Buckner.

HOUSE OF REPRESENTATIVES.

From MAINE--John Anderson, James Bates, George Evans, Cornelius Holland, Leonard Jarvis, Edward Kavanagh, Rufus McIntire.

NEW HAMPSHIRE--John Brodhead, Thomas Chandler, Joseph Hammons, Henry Hubbard, Joseph M. Harper, John W. Weeks.

MASSACHUSETTS--John Quincy Adams, Nathan Appleton, Isaac C. Bates, George N. Briggs, Rufus Choate, Henry A. S. Dearborn, John Davis, Edward Everett, George Grennell, jun., James L. Hodges, Joseph G. Kendall, John Reed. (One vacancy.)

RHODE ISLAND--Tristam Burgess, Dutee J. Pearce.

CONNECTICUT--Noyes Barber, William W. Ellsworth, Jabez W. Huntington, Ralph I. Ingersoll, William L. Storrs, Ebenezer Young.

VERMONT--Heman Allen, William Cahoon, Horace Everett, Jonathan Hunt, William Slade.

NEW YORK--William G. Angel, Gideon H. Barstow, Joseph Bouck, William Babcock, John T. Bergen, John C. Brodhead, Samuel Beardsley, John A. Collier, Bates Cooke, C. C. Cambreleng, John Dickson, Charles Dayan, Ulysses F. Doubleday, William Hogan, Michael Hoffman, Freeborn G. Jewett, John King, Gerrit Y. Lansing, James Lent, Job Pierson, Nathaniel Pitcher, Edmund H. Pendleton, Edward C. Reed, Erastus Root, Nathan Soule, John W. Taylor, Phineas L. Tracy, Gulian C. Verplanck, Frederic Whittlesey, Samuel J. Wilkin, Grattan H. Wheeler, Campbell P. White, Aaron Ward, Daniel Wardwell.

NEW JERSEY--Lewis Condict, Silas Condict, Richard M. Cooper, Thomas H. Hughes, James Fitz Randolph, Isaac Southard.

PENNSYLVANIA--Robert Allison, John Banks, George Burd, John C. Bucher, Thomas H. Crawford, Richard Coulter, Harmar Denny, Lewis Dewart, Joshua Evans, James Ford, John Gilmore, William Heister, Henry Horn, Peter Ihrie, jun., Adam King, Henry King, Joel K. Mann, Robert McCoy, Henry A. Muhlenberg, T. M. McKennan, David Potts, jun., Andrew Stewart, Samuel A. Smith, Philander Stephens, Joel B. Sutherland, John G. Watmough.

DELAWARE--John J. Milligan.

MARYLAND--Benjamin C. Howard, Daniel Jenifer, John L. Kerr, George E. Mitchell, Benedict I. Semmes, John S. Spence, Francis Thomas, George C. Washington, J. T. H. Worthington.

VIRGINIA--Mark Alexander, Robert Allen, William S. Archer, William Armstrong, John S. Barbour, Thomas T. Bouldin, Nathaniel H. Claiborne, Robert Craig, Joseph W. Chinn, Richard Coke, jun., Thomas Davenport, Philip Doddridge, Wm. F. Gordon, Charles C. Johnston, John Y. Mason, Lewis Maxwell, Charles F. Mercer, William McCoy, Thomas Newton, John M. Patton, John J. Roane, Andrew Stevenson.

NORTH CAROLINA--Dan'l L. Barringer, Laughlin Bethune, John Branch, Samuel P. Carson, Henry W. Conner, Thomas H. Hall, Micajah T. Hawkins, James J. McKay, Abraham Rencher, William B. Shepard, Augustine H. Shepperd, Jesse Speight, Lewis Williams.

SOUTH CAROLINA--Robert W. Barnwell, Jas. Blair, Warren R. Davis, William Drayton, John M. Felder, J. R. Griffin, Thomas R. Mitchell, George McDuffie, Wm. T. Nuckolls.

GEORGIA--Thomas F. Foster, Henry G. Lamar, Daniel Newnan, Wiley Thompson, Richard H. Wilde, James M. Wayne. (One vacancy.)

KENTUCKY--John Adair, Chilton Allan, Henry Daniel, Nathan Gaither, Albert G. Hawes, R. M. Johnson, Joseph Lecompte, Chittenden Lyon, Robert P. Letcher, Thomas A. Marshall, Christopher Tompkins, Charles A. Wickliffe.

TENNESSEE--Thomas D. Arnold, John Bell, John Blair, William Fitzgerald, William Hall, Jacob C. Isacks, Cave Johnson, James K. Polk, James Standifer.

OHIO--Joseph H. Crane, Eleutheros Cooke, William Creighton, jun., Thomas Corwin, James Findlay, William W. Irwin, William Kennon, Humphrey H. Leavitt, William Russel, William Stanberry, John Thomson, Joseph Vance, Samuel F. Vinton, Elisha Whittlesey.

LOUISIANA--H. A. Bullard, Philemon Thomas, Edward D. White.

INDIANA--Ratliff Boon, John Carr, Jonathan McCarty.

MISSISSIPPI--Franklin E. Plummer.

ILLINOIS--Joseph Duncan.

ALABAMA--Clement C. Clay, Dixon H. Lewis, Samuel W. Mardis.

MISSOURI--William H. Ashley.

DELEGATES.

MICHIGAN--Austin E. Wing.

ARKANSAS--Ambrose H. Sevier.

FLORIDA--Joseph M. White.

Andrew Stevenson, Esq., of Virginia, was re-elected speaker; and both branches of the body being democratic, they were organized, in a party sense, as favorable to the administration, although the most essential of the committees, when the Bank question unexpectedly sprung up, were found to be on the side of that institution. In his message to the two Houses, the President presented a condensed and general view of our relations, political and commercial, with foreign nations, from which the leading passages are here given:

"After our transition from the state of colonies to that of an independent nation, many points were found necessary to be settled between us and Great Britain. Among them was the demarcation of boundaries, not described with sufficient precision in the treaty of peace. Some of the lines that divide the States and territories of the United States from the British provinces, have been definitively fixed. That, however, which separates us from the provinces of Canada and New Brunswick to the North and the East, was still in dispute when I came into office. But I found arrangements made for its settlement, over which I had no control. The commissioners who had been appointed under the provisions of the treaty of Ghent, having been unable to agree, a convention was made with Great Britain by my immediate predecessor in office, with the advice and consent of the Senate, by which it was agreed 'that the points of difference which have arisen in the settlement of the boundary line between the American and British dominions, as described in the fifth article of the treaty of Ghent, shall be referred, as therein provided, to some friendly sovereign or State, who shall be invited to investigate, and make a decision upon such points of difference:' and the King of the Netherlands having, by the late President and his Britannic Majesty, been designated as such friendly sovereign, it became my duty to carry, with good faith, the agreement, so made, into full effect. To this end I caused all the measures to be taken which were necessary to a full exposition of our case to the sovereign arbiter; and nominated as minister plenipotentiary to his court, a distinguished citizen of the State most interested in the question, and who had been one of the agents previously employed for settling the controversy. On the 10th day of January last, His Majesty the King of the Netherlands delivered to the plenipotentiaries of the United States, and of Great Britain, his written opinion on the case referred to him. The papers in relation to the subject will be communicated, by a special message, to the proper branch of the government, with the perfect confidence that its wisdom will adopt such measures as will secure an amicable settlement of the controversy, without infringing any constitutional right of the States immediately interested.

"In my message at the opening of the last session of Congress, I expressed a confident hope that the justice of our claims upon France, urged as they were with perseverance and signal ability by our minister there, would finally be acknowledged. This hope has been realized. A treaty has been signed, which will immediately be laid before the Senate for its approbation; and which, containing stipulations that require legislative acts, must have the concurrence of both Houses before it can be carried into effect.

"Should this treaty receive the proper sanction, a source of irritation will be stopped, that has, for so many years, in some degree alienated from each other two nations who, from interest as well as the remembrance of early associations, ought to cherish the most friendly relations--an encouragement will be given for perseverance in the demands of justice, by this new proof, that, if steadily pursued, they will be listened to--and admonition will be offered to those powers, if any, which may be inclined to evade them, that they will never be abandoned. Above all, a just confidence will be inspired in our fellow-citizens, that their government will exert all the powers with which they have invested it, in support of their just claims upon foreign nations; at the same time that the frank acknowledgment and provision for the payment of those which were addressed to our equity, although unsupported by legal proof, affords a practical illustration of our submission to the Divine rule of doing to others what we desire they should do unto us.

"Sweden and Denmark having made compensation for the irregularities committed by their vessels, or in their ports, to the perfect satisfaction of the parties concerned, and having renewed the treaties of commerce entered into with them, our political and commercial relations with those powers continue to be on the most friendly footing.

"With Spain, our differences up to the 22d of February, 1819, were settled by the treaty of Washington of that date; but, at a subsequent period, our commerce with the states formerly colonies of Spain, on the continent of America, was annoyed and frequently interrupted by her public and private armed ships. They captured many of our vessels prosecuting a lawful commerce, and sold them and their cargoes; and at one time, to our demands for restoration and indemnity, opposed the allegation, that they were taken in the violation of a blockade of all the ports of those states. This blockade was declaratory only, and the inadequacy of the force to maintain it was so manifest, that this allegation was varied to a charge of trade in contraband of war. This, in its turn, was also found untenable; and the minister whom I sent with instructions to press for the reparation that was due to our injured fellow-citizens, has transmitted an answer to his demand, by which the captures are declared to have been legal, and are justified because the independence of the states of America never having been acknowledged by Spain, she had a right to prohibit trade with them under her old colonial laws. This ground of defence was contradictory, not only to those which had been formerly alleged, but to the uniform practice and established laws of nations; and had been abandoned by Spain herself in the convention which granted indemnity to British subjects for captures made at the same time, under the same circumstances, and for the same allegations with those of which we complain.

"I, however, indulge the hope that further reflection will lead to other views, and feel confident, that when his Catholic Majesty shall be convinced of the justice of the claim, his desire to preserve friendly relations between the two countries, which it is my earnest endeavor to maintain, will induce him to accede to our demand. I have therefore dispatched a special messenger, with instructions to our minister to bring the case once more to his consideration; to the end that if, which I cannot bring myself to believe, the same decision, that cannot but be deemed an unfriendly denial of justice, should be persisted in, the matter may, before your adjournment, be laid before you, the constitutional judges of what is proper to be done when negotiation for redress of injury fails.

"The conclusion of a treaty for indemnity with France, seemed to present a favorable opportunity to renew our claims of a similar nature on other powers, and particularly in the case of those upon Naples; more especially as, in the course of former negotiations with that power, our failure to induce France to render us justice was used as an argument against us. The desires of the merchants who were the principal sufferers, have therefore been acceded to, and a mission has been instituted for the special purpose of obtaining for them a reparation already too long delayed. This measure having been resolved on, it was put in execution without waiting for the meeting of Congress, because the state of Europe created an apprehension of events that might have rendered our application ineffectual.

"Our demands upon the government of the Two Sicilies are of a peculiar nature. The injuries on which they are founded are not denied, nor are the atrocity and perfidy under which those injuries were perpetrated attempted to be extenuated. The sole ground on which indemnity has been refused is the alleged illegality of the tenure by which the monarch who made the seizures held his crown. This defence, always unfounded in any principle of the law of nations--now universally abandoned, even by those powers upon whom the responsibility for acts of past rulers bore the most heavily, will unquestionably be given up by his Sicilian Majesty, whose counsels will receive an impulse from that high sense of honor and regard to justice which are said to characterize him; and I feel the fullest confidence that the talents of the citizen commissioned for that purpose will place before him the just claims of our injured citizens in such a light as will enable me, before your adjournment, to announce that they have been adjusted and secured. Precise instructions, to the effect of bringing the negotiation to a speedy issue, have been given, and will be obeyed.

"In the late blockade of Terceira, some of the Portuguese fleet captured several of our vessels, and committed other excesses, for which reparation was demanded; and I was on the point of dispatching an armed force, to prevent any recurrence of a similar violence, and protect our citizens in the prosecution of their lawful commerce, when official assurances, on which I relied, made the sailing of the ships unnecessary. Since that period, frequent promises have been made that full indemnity shall be given for the injuries inflicted and the losses sustained. In the performance there has been some, perhaps unavoidable, delay; but I have the fullest confidence that my earnest desire that this business may at once be closed, which our minister has been instructed strongly to express, will very soon be gratified. I have the better ground for this hope, from the evidence of a friendly disposition which that government has shown by an actual reduction in the duty on rice, the produce of our Southern States, authorizing the anticipation that this important article of our export will soon be admitted on the same footing with that produced by the most favored nation.

"With the other powers of Europe, we have fortunately had no cause of discussions for the redress of injuries. With the Empire of the Russias, our political connection is of the most friendly, and our commercial of the most liberal kind. We enjoy the advantages of navigation and trade, given to the most favored nation; but it has not yet suited their policy, or perhaps has not been found convenient from other considerations, to give stability and reciprocity to those privileges, by a commercial treaty. The ill-health of the minister last year charged with making a proposition for that arrangement, did not permit him to remain at St. Petersburg; and the attention of that government, during the whole of the period since his departure, having been occupied by the war in which it was engaged, we have been assured that nothing could have been effected by his presence. A minister will soon be nominated, as well to effect this important object, as to keep up the relations of amity and good understanding of which we have received so many assurances and proofs from his Imperial Majesty and the Emperor his predecessor.

"The treaty with Austria is opening to us an important trade with the hereditary dominions of the Emperor, the value of which has been hitherto little known, and of course not sufficiently appreciated. While our commerce finds an entrance into the south of Germany by means of this treaty, those we have formed with the Hanseatic towns and Prussia, and others now in negotiation, will open that vast country to the enterprising spirit of our merchants on the north; a country abounding in all the materials for a mutually beneficial commerce, filled with enlightened and industrious inhabitants, holding an important place in the politics of Europe, and to which we owe so many valuable citizens. The ratification of the treaty with the Porte was sent to be exchanged by the gentleman appointed our chargé d'affaires to that court. Some difficulties occurred on his arrival; but at the date of his last official dispatch, he supposed they had been obviated, and that there was every prospect of the exchange being speedily effected.

"This finishes the connected view I have thought it proper to give of our political and commercial relations in Europe. Every effort in my power will be continued to strengthen and extend them by treaties founded on principles of the most perfect reciprocity of interest, neither asking nor conceding any exclusive advantage, but liberating, as far as it lies in my power, the activity and industry of our fellow-citizens from the shackles which foreign restrictions may impose.

"To China and the East Indies, our commerce continues in its usual extent, and with increased facilities, which the credit and capital of our merchants afford, by substituting bills for payments in specie. A daring outrage having been committed in those seas by the plunder of one of our merchantmen engaged in the pepper trade at a port in Sumatra, and the piratical perpetrators belonging to tribes in such a state of society that the usual course of proceeding between civilized nations could not be pursued, I forthwith dispatched a frigate with orders to require immediate satisfaction for the injury, and indemnity to the sufferers.

"Few changes have taken place in our connections with the independent States of America since my last communication to Congress. The ratification of a commercial treaty with the United Republics of Mexico has been for some time under deliberation in their Congress, but was still undecided at the date of our last dispatches. The unhappy civil commotions that have prevailed there, were undoubtedly the cause of the delay; but as the government is now said to be tranquillized, we may hope soon to receive the ratification of the treaty, and an arrangement for the demarcation of the boundaries between us. In the mean time, an important trade has been opened, with mutual benefit, from St. Louis, in the State of Missouri, by caravans, to the interior provinces of Mexico. This commerce is protected in its progress through the Indian countries by the troops of the United States, which have been permitted to escort the caravans beyond our boundaries to the settled part of the Mexican territory.

"From Central America I have received assurances of the most friendly kind, and a gratifying application for our good offices to remove a supposed indisposition towards that government in a neighboring state: this application was immediately and successfully complied with. They gave us also the pleasing intelligence, that differences which had prevailed in their internal affairs had been peaceably adjusted. Our treaty with this republic continues to be faithfully observed, and promises a great and beneficial commerce between the two countries; a commerce of the greatest importance, if the magnificent project of a ship canal through the dominions of that state, from the Atlantic to the Pacific Ocean, now in serious contemplation, shall be executed.

"I have great satisfaction in communicating the success which has attended the exertions of our minister in Colombia to procure a very considerable reduction in the duties on our flour in that republic. Indemnity, also, has been stipulated for injuries received by our merchants from illegal seizures; and renewed assurances are given that the treaty between the two countries shall be faithfully observed.

"Chili and Peru seem to be still threatened with civil commotions; and, until they shall be settled, disorders may naturally be apprehended, requiring the constant presence of a naval force in the Pacific Ocean, to protect our fisheries and guard our commerce.

"The disturbances that took place in the Empire of Brazil, previously to, and immediately consequent upon, the abdication of the late Emperor, necessarily suspended any effectual application for the redress of some past injuries suffered by our citizens from that government, while they have been the cause of others, in which all foreigners seem to have participated. Instructions have been given to our minister there, to press for indemnity due for losses occasioned by these irregularities, and to take care that our fellow-citizens shall enjoy all the privileges stipulated in their favor, by the treaty lately made between the two powers; all which, the good intelligence that prevails between our minister at Rio Janeiro and the regency gives us the best reason to expect.

"I should have placed Buenos Ayres on the list of South American powers, in respect to which nothing of importance affecting us was to be communicated, but for occurrences which have lately taken place at the Falkland Islands, in which the name of that republic has been used to cover with a show of authority acts injurious to our commerce, and to the property and liberty of our fellow-citizens. In the course of the present year, one of our vessels engaged in the pursuit of a trade which we have always enjoyed without molestation, has been captured by a band acting, as they pretend, under the authority of the government of Buenos Ayres. I have therefore given orders for the dispatch of an armed vessel, to join our squadron in those seas, and aid in affording all lawful protection to our trade which shall be necessary; and shall, without delay, send a minister to inquire into the nature of the circumstances, and also of the claim, if any, that is set up by that government to those islands. In the mean time, I submit the case to the consideration of Congress, to the end that they may clothe the Executive with such authority and means as they may deem necessary for providing a force adequate to the complete protection of our fellow-citizens fishing and trading in those seas.

"This rapid sketch of our foreign relations, it is hoped, fellow-citizens, may be of some use in so much of your legislation as may bear on that important subject; while it affords to the country at large a source of high gratification in the contemplation of our political and commercial connection with the rest of the world. At peace with all--having subjects of future difference with few, and those susceptible of easy adjustment--extending our commerce gradually on all sides, and on none by any but the most liberal and mutually beneficial means--we may, by the blessing of Providence, hope for all that national prosperity which can be derived from an intercourse with foreign nations, guided by those eternal principles of justice and reciprocal good will which are binding as well upon States as the individuals of whom they are composed.

"I have great satisfaction in making this statement of our affairs, because the course of our national policy enables me to do it without any indiscreet exposure of what in other governments is usually concealed from the people. Having none but a straightforward, open course to pursue--guided by a single principle that will bear the strongest light--we have happily no political combinations to form, no alliances to entangle us, no complicated interests to consult; and in subjecting all we have done to the consideration of our citizens, and to the inspection of the world, we give no advantage to other nations, and lay ourselves open to no injury."

This clear and succinct account of the state of our foreign relations makes us fully acquainted with these affairs as they then stood, and presents a view of questions to be settled with several powers which were to receive their solution from the firm and friendly spirit in which they would be urged. Turning to our domestic concerns, the message thus speaks of the finances; showing a gradual increase, the rapid extinction of the public debt, and that a revenue of 27-3/4 millions was about double the amount of all expenditures, exclusive of what that extinction absorbed:

"The state of the public finances will be fully shown by the Secretary of the Treasury, in the report which he will presently lay before you. I will here, however, congratulate you upon their prosperous condition. The revenue received in the present year will not fall short of twenty-seven million seven hundred thousand dollars; and the expenditures for all objects other than the public debt will not exceed fourteen million seven hundred thousand. The payment on account of the principal and interest of the debt, during the year, will exceed sixteen millions and a half of dollars: a greater sum than has been applied to that object, out of the revenue, in any year since the enlargement of the sinking fund, except the two years following immediately thereafter. The amount which will have been applied to the public debt from the 4th of March, 1829, to the 1st of January next, which is less than three years since the administration has been placed in my hands, will exceed forty millions of dollars."

On the subject of government insolvent debtors, the message said:

"In my annual message of December, 1829, I had the honor to recommend the adoption of a more liberal policy than that which then prevailed towards unfortunate debtors to the government; and I deem it my duty again to invite your attention to this subject. Actuated by similar views, Congress at their last session passed an act for the relief of certain insolvent debtors of the United States: but the provisions of that law have not been deemed such as were adequate to that relief to this unfortunate class of our fellow-citizens, which may be safely extended to them. The points in which the law appears to be defective will be particularly communicated by the Secretary of the Treasury: and I take pleasure in recommending such an extension of its provisions as will unfetter the enterprise of a valuable portion of our citizens, and restore to them the means of usefulness to themselves and the community."

Recurring to his previous recommendation in favor of giving the election of President and Vice-President to the direct vote of the people, the message says:

"I have heretofore recommended amendments of the federal constitution giving the election of President and Vice-President to the people, and limiting the service of the former to a single term. So important do I consider these changes in our fundamental law, that I cannot, in accordance with my sense of duty, omit to press them upon the consideration of a new Congress. For my views more at large, as well in relation to these points as to the disqualification of members of Congress to receive an office from a President in whose election they have had an official agency, which I proposed as a substitute, I refer you to my former messages."

And concludes thus in relation to the Bank of the United States:

"Entertaining the opinions heretofore expressed in relation to the Bank of the United States, as at present organized, I felt it my duty, in my former messages, frankly to disclose them, in order that the attention of the legislature and the people should be seasonably directed to that important subject, and that it might be considered and finally disposed of in a manner best calculated to promote the ends of the constitution, and subserve the public interests. Having thus conscientiously discharged a constitutional duty, I deem it proper, on this occasion, without a more particular reference to the views of the subject then expressed, to leave it for the present to the investigation of an enlightened people and their representatives."

Spotted a typo or a problem in this chapter? Tell us

LIX. REJECTION OF MR. VAN BUREN, MINISTER TO ENGLAND

At the period of the election of General Jackson to the Presidency, four gentlemen stood prominent in the political ranks, each indicated by his friends for the succession, and each willing to be the General's successor. They were Messrs. Clay and Webster, and Messrs. Calhoun and Van Buren; the two former classing politically against General Jackson--the two latter with him. But an event soon occurred to override all political distinction, and to bring discordant and rival elements to work together for a common object. That event was the appointment of Mr. Van Buren to be Secretary of State--a post then looked upon as a stepping-stone to the Presidency--and the imputed predilection of General Jackson for him. This presented him as an obstacle in the path of the other three, and which the interest of each required to be got out of the way. The strife first, and soon, began in the cabinet, where Mr. Calhoun had several friends; and Mr. Van Buren, seeing that General Jackson's administration was likely to be embarrassed on his account, determined to resign his post--having first seen the triumph of the new administration in the recovery of the British West India trade, and the successful commencement of other negotiations, which settled all outstanding difficulties with other nations, and shed such lustre upon Jackson's diplomacy. He made known his design to the President, and his wish to retire from the cabinet--did so--received the appointment of minister to London, and immediately left the United States; and the cabinet, having been from the beginning without harmony or cohesion, was dissolved--some resigning voluntarily, the rest under requisition--as already related in the chapter on the dissolution of the cabinet. The voluntary resigning members were classed as friends to Mr. Van Buren, the involuntary as opposed to him, and two of them (Messrs. Ingham and Branch) as friends to Mr. Calhoun; and became, of course, alienated from General Jackson. I was particularly grieved at this breach between Mr. Branch and the President, having known him from boyhood--been school-fellows together, and being well acquainted with his inviolable honor and long and faithful attachment to General Jackson. It was the complete extinction of the cabinet, and a new one was formed.

Mr. Van Buren had nothing to do with this dissolution, of which General Jackson has borne voluntary and written testimony, to be used in this chapter; and also left behind him a written account of the true cause, now first published in this Thirty Years' View, fully exonerating Mr. Van Buren from all concern in that event, and showing his regret that it had occurred. But the whole catastrophe was charged upon him by his political opponents, and for the unworthy purpose of ousting the friends of Mr. Calhoun, and procuring a new set of members entirely devoted to his interest. This imputation was negatived by his immediate departure from the country, setting out at once upon his mission, without awaiting the action of the Senate on his nomination. This was in the summer of 1831. Early in the ensuing session--at its very commencement, in fact--his nomination was sent in, and it was quickly perceptible that there was to be an attack upon him--a combined one; the three rival statesmen acting in concert, and each backed by all his friends. No one outside of the combination, myself alone excepted, could believe it would be successful. I saw they were masters of the nomination from the first day, and would reject it when they were ready to exhibit a case of justification to the country: and so informed General Jackson from an early period in the session. The numbers were sufficient: the difficulty was to make up a case to satisfy the people; and that was found to be a tedious business.

Fifty days were consumed in these preliminaries--to be precise, fifty-one; and that in addition to months of preparation before the Senate met. The preparation was long, but the attack vigorous; and when commenced, the business was finished in two days. There were about a dozen set speeches against him, from as many different speakers--about double the number that spoke against Warren Hastings--and but four off-hand replies for him; and it was evident that the three chiefs had brought up all their friends to the work. It was an unprecedented array of numbers and talent against one individual, and he absent,--and of such amenity of manners as usually to disarm political opposition of all its virulence. The causes of objection were supposed to be found in four different heads of accusation; each of which was elaborately urged:

1. The instructions drawn up and signed by Mr. Van Buren as Secretary of State, under the direction of the President, and furnished to Mr. McLane, for his guidance in endeavoring to reopen the negotiation for the West India trade.

2. Making a breach of friendship between the first and second officers of the government--President Jackson and Vice-President Calhoun--for the purpose of thwarting the latter, and helping himself to the Presidency.

3. Breaking up the cabinet for the same purpose.

4. Introducing the system of "proscription" (removal from office for opinion's sake), for the same purpose.

A formal motion was made by Mr. Holmes, of Maine, to raise a committee with power to send for persons and papers, administer oaths, receive sworn testimony, and report it, with the committee's opinion, to the Senate; but this looked so much like preferring an impeachment, as well as trying it, that the procedure was dropped; and all reliance was placed upon the numerous and elaborate speeches to be delivered, all carefully prepared, and intended for publication, though delivered in secret session. Rejection of the nomination was not enough--a killing off in the public mind was intended; and therefore the unusual process of the elaborate preparation and intended publication of the speeches. All the speakers went through an excusatory formula, repeated with equal precision and gravity; abjuring all sinister motives; declaring themselves to be wholly governed by a sense of public duty; describing the pain which they felt at arraigning a gentleman whose manners and deportment were so urbane; and protesting that nothing but a sense of duty to the country could force them to the reluctant performance of such a painful task. The accomplished Forsyth complimented, in a way to be perfectly understood, this excess of patriotism, which could voluntarily inflict so much self-distress for the sake of the public good; and I, most unwittingly, brought the misery of one of the gentlemen to a sudden and ridiculous conclusion by a chance remark. It was Mr. Gabriel Moore, of Alabama, who sat near me, and to whom I said, when the vote was declared, "You have broken a minister, and elected a Vice-President." He asked how? and I told him the people would see nothing in it but a combination of rivals against a competitor, and would pull them all down, and set him up. "Good God!" said he, "why didn't you tell me that before I voted, and I would have voted the other way." It was only twenty minutes before, for he was the very last speaker, that Mr. Moore had delivered himself thus, on this very interesting point of public duty against private feeling:

"Under all the circumstances of the case, notwithstanding the able views which have been presented, and the impatience of the Senate, I feel it a duty incumbent upon me, not only in justification of myself, and of the motives which govern me in the vote which I am about to give, but, also, in justice to the free and independent people whom I have the honor in part to represent, that I should set forth the reasons which have reluctantly compelled me to oppose the confirmation of the present nominee. Sir, it is proper that I should declare that the evidence adduced against the character and conduct of the late Secretary of State, and the sources from which this evidence emanates, have made an impression on my mind that will require of me, in the conscientious though painful discharge of my duty, to record my vote against his nomination."

The famous Madame Roland, when mounting the scaffold, apostrophized the mock statue upon it with this exclamation: "Oh Liberty! how many crimes are committed in thy name!" After what I have seen during my thirty years of inside and outside views in the Congress of the United States, I feel qualified to paraphrase the apostrophe, and exclaim: "Oh Politics! how much bamboozling is practised in thy game!"

The speakers against the nomination were Messrs. Clay, Webster, John M. Clayton, Ewing of Ohio, John Holmes, Frelinghuysen, Poindexter, Chambers of Maryland, Foot of Connecticut, Governor Miller, and Colonel Hayne of South Carolina, and Governor Moore of Alabama--just a dozen, and equal to a full jury. Mr. Calhoun, as Vice-President, presiding in the Senate, could not speak; but he was understood to be personated by his friends, and twice gave the casting vote, one interlocutory, against the nominee--a tie being contrived for that purpose, and the combined plan requiring him to be upon the record. Only four spoke on the side of the nomination; General Smith of Maryland, Mr. Forsyth, Mr. Bedford Brown, and Mr. Marcy. Messrs. Clay and Webster, and their friends, chiefly confined themselves to the instructions on the West India trade; the friends of Mr. Calhoun paid most attention to the cabinet rupture, the separation of old friends, and the system of proscription. Against the instructions it was alleged, that they begged as a favor what was due as a right; that they took the side of Great Britain against our own country; and carried our party contests, and the issue of our party elections, into diplomatic negotiations with foreign countries; and the following clause from the instructions to Mr. McLane was quoted to sustain these allegations:

"In reviewing the causes which have preceded and more or less contributed to a result so much regretted, there will be found three grounds upon which we are most assailable: 1. In our too long and too tenaciously resisting the right of Great Britain to impose protecting duties in her colonies. 2. In not relieving her vessels from the restriction of returning direct from the United States to the colonies after permission had been given by Great Britain to our vessels to clear out from the colonies to any other than a British port. And, 3. In omitting to accept the terms offered by the act of Parliament of July, 1825, after the subject had been brought before Congress and deliberately acted upon by our government. It is, without doubt, to the combined operation of these (three) causes that we are to attribute the British interdict; you will therefore see the propriety of possessing yourself fully of all the explanatory and mitigating circumstances connected with them, that you may be able to obviate, as far as practicable, the unfavorable impression which they have produced."

This was the clause relied upon to sustain the allegation of putting his own country in the wrong, and taking the part of Great Britain, and truckling to her to obtain as a favor what was due as a right, and mixing up our party contests with our foreign negotiations. The fallacy of all these allegations was well shown in the replies of the four senators, and especially by General Smith, of Maryland; and has been further shown in the course of this work, in the chapter on the recovery of the British West India trade. But there was a document at that time in the Department of State, unknown to the friends of Mr. Van Buren in the Senate, which would not only have exculpated him, but turned the attacks of his assailants against themselves. The facts were these: Mr. Gallatin, while minister at London, on the subject of this trade, of course sent home dispatches, addressed to the Secretary of State (Mr. Clay), in which he gave an account of his progress, or rather of the obstacles which prevented any progress, in the attempted negotiation. There were two of these dispatches, one dated September 22, 1826, the other November the 14th, 1827. The latter had been communicated to Congress in full, and printed among the papers of the case; of the former only an extract had been communicated, and that relating to a mere formal point. It so happened that the part of this dispatch of September, 1826, not communicated, contained Mr. Gallatin's report of the causes which led to the refusal of the British to treat--their refusal to permit us to accept the terms of their act of 1825, after the year limited for acceptance had expired--and which led to the order in council, cutting us off from the trade; and it so happened that this report of these causes, so made by Mr. Gallatin, was the original from which Mr. Van Buren copied his instructions to Mr. McLane! and which were the subject of so much censure in the Senate. I have been permitted by Mr. Everett, Secretary of State under President Fillmore--(Mr. Webster would have given me the same permission if I had applied during his time, for he did so in every case that I ever asked)--to examine this dispatch in the Department of State, and to copy from it whatever I wanted; I accordingly copied the following:

"On three points we were perhaps vulnerable.

"1. The delay of renewing the negotiation.

"2. The omission of having revoked the restriction on the indirect intercourse when that of Great Britain had ceased.

"3. Too long an adherence to the opposition to her right of laying protecting duties. This might have been given up as soon as the act of 1825 passed. These are the causes assigned for the late measure adopted towards the United States on that subject; and they have, undoubtedly, had a decisive effect as far as relates to the order in council, assisted as they were by the belief that our object was to compel this country to regulate the trade upon our own terms."

This was a passage in the unpublished part of that dispatch, and it shows itself to be the original from which Mr. Van Buren copied, substituting the milder term of "assailable" where Mr. Gallatin had applied that of "vulnerable" to Mr. Adams's administration. Doubtless the contents of that dispatch, in this particular, were entirely forgotten by Mr. Clay at the time he spoke against Mr. Van Buren, having been received by him above four years before that time. They were probably as little known to the rest of the opposition senators as to ourselves; and the omission to communicate and print them could not have occurred from any design to suppress what was material to the debate in the Senate, as the communication and printing had taken place long before this occasion of using the document had occurred.

The way I came to the knowledge of this omitted paragraph was this: When engaged upon the chapter of his rejection, I wrote to Mr. Van Buren for his view of the case; and he sent me back a manuscript copy of a speech which he had drawn up in London, to be delivered in New-York, at some "public dinner," which his friends could get up for the occasion; but which he never delivered, or published, partly from an indisposition to go into the newspapers for character--much from a real forbearance of temper--and possibly from seeing, on his return to the United States, that he was not at all hurt by his fall. That manuscript speech contained this omitted extract, and I trust that I have used it fairly and beneficially for the right, and without invidiousness to the wrong. It disposes of one point of attack; but the gentlemen were wrong in their whole broad view of this British West India trade question. Jackson took the Washington ground, and he and Washington were both right. The enjoyment of colonial trade is a privilege to be solicited, and not a right to be demanded; and the terms of the enjoyment are questions for the mother country. The assailing senators were wrong again in making the instructions a matter of attack upon Mr. Van Buren. They were not his instructions, but President Jackson's. By the constitution they were the President's, and the senators derogated from that instrument in treating his secretary as their author. The President alone is the conductor of our foreign relations, and the dispatches signed by the Secretaries of State only have force as coming from him, and are usually authenticated by the formula, "I am instructed by the President to say," &c., &c. It was a constitutional blunder, then, in the senators to treat Mr. Van Buren as the author of these instructions; it was also an error in point of fact. General Jackson himself specially directed them; and so authorized General Smith to declare in the Senate--which he did.

Breaking up the cabinet, and making dissension between General Jackson and Mr. Calhoun, was the second of the allegations against Mr. Van Buren. Repulsed as this accusation has been by the character of Mr. Van Buren, and by the narrative of the "Exposition," it has yet to receive a further and most authoritative contradiction, from a source which admits of no cavil--from General Jackson himself--in a voluntary declaration made after that event had passed away, and when justice alone remained the sole object to be accomplished. It was a statement addressed to "Martin Van Buren, President of the United States," dated at the Hermitage, July 31st, 1840, and ran in these words:

"It was my intention as soon as I heard that Mr. Calhoun had expressed his approbation of the leading measures of your administration, and had paid you a visit, to place in your possession the statement which I shall now make; but bad health, and the pressure of other business have constantly led me to postpone it. What I have reference to is the imputation that has been sometimes thrown upon you, that you had an agency in producing the controversy which took place between Mr. Calhoun and myself, in consequence of Mr. Crawford's disclosure of what occurred in the cabinet of Mr. Monroe relative to my military operations in Florida during his administration. Mr. Calhoun is doubtless already satisfied that he did you injustice in holding you in the slightest degree responsible for the course I pursued on that occasion: but as there may be others who may still be disposed to do you injustice, and who may hereafter use the circumstance for the purpose of impairing both your character and his, I think it my duty to place in your possession the following emphatic declaration, viz.: That I am not aware of your ever saying a word to me relative to Mr. Calhoun, which had a tendency to create an interruption of my friendly relations with him:--that you were not consulted in any stage of the correspondence on the subject of his conduct in the cabinet of Mr. Monroe;--and that, after this correspondence became public, the only sentiment you ever expressed to me about it was that of deep regret that it should have occurred. You are at liberty to show this letter to Mr. Calhoun and make what other use of it you may think proper for the purpose of correcting the erroneous impressions which have prevailed on this subject."

A testimony more honorable than this in behalf of a public man, was never delivered, nor one more completely disproving a dishonorable imputation, and showing that praise was due where censure had been lavished. Mr. Van Buren was not the cause of breaking up the cabinet, or of making dissension between old friends, or of raking up the buried event in Mr. Monroe's cabinet, or of injuring Mr. Calhoun in any way. Yet this testimony, so honorable to him, was never given to the public, though furnished for the purpose, and now appears for the first time in print.

Equally erroneous was the assumption, taken for granted throughout the debate, and so extensively and deeply impressed upon the public mind, that Mr. Calhoun was the uniform friend of General Jackson in the election--his early supporter in the canvass, and steadfast adherent to the end. This assumption has been rebutted by Mr. Calhoun himself, who, in his pamphlet against General Jackson, shows that he was for himself until withdrawn from the contest by Mr. Dallas at a public meeting, in Philadelphia, in the winter of 1823-4; and after that was perfectly neutral. His words are: "When my name was withdrawn from the list of presidential candidates, I assumed a perfectly neutral position between Gen. Jackson and Mr. Adams." This clears Mr. Van Buren again, as he could not make a breach of friendship where none existed, or supplant a supporter where there was no support: and that there was none from Mr. Calhoun to Gen. Jackson, is now authentically declared by Mr. Calhoun himself. Yet this head of accusation, with a bad motive assigned for it, was most perseveringly urged by his friends, and in his presence, throughout the whole debate.

Introducing the "New-York system of proscription" into the federal government, was the last of the accusations on which Mr. Van Buren was arraigned; and was just as unfounded as all the rest. Both his temper and his judgment was against the removal of faithful officers because of difference of political opinion, or even for political conduct against himself--as the whole tenor of his conduct very soon after, and when he became President of the United States, abundantly showed. The departments at Washington, and some part of every State in the Union, gave proofs of his forbearance in this particular.

I have already told that I did not speak in the debate on the nomination of Mr. Van Buren; and this silence on such an occasion may require explanation from a man who does not desire the character of neglecting a friend in a pinch. I had strong reasons for that abstinence, and they were obliged to be strong to produce it. I was opposed to Mr. Van Buren's going to England as minister. He was our intended candidate for the Presidency, and I deemed such a mission to be prejudicial to him and the party, and apt to leave us with a candidate weakened with the people by absence, and by a residence at a foreign court. I was in this state of mind when I saw the combination formed against him, and felt that the success of it would be his and our salvation. Rejection was a bitter medicine, but there was health at the bottom of the draught. Besides, I was not the guardian of Messrs. Clay, Webster, and Calhoun, and was quite willing to see them fall into the pit which they were digging for another. I said nothing in the debate; but as soon as the vote was over I wrote to Mr. Van Buren a very plain letter, only intended for himself, and of which I kept no copy; but having applied for the original for use in this history, he returned it to me, on the condition that I should tell, if I used it, that in a letter to General Jackson, he characterized it as "honest and sensible." Honest, I knew it to be at the time; sensible, I believe the event has proved it to be; and that there was no mistake in writing such a letter to Mr. Van Buren, has been proved by our subsequent intercourse. It was dated January 28, 1832, and I subjoin it in full, as contemporaneous testimony, and as an evidence of the independent manner in which I spoke to my friends--even those I was endeavoring to make President. It ran thus:

"Your faithful correspondents will have informed you of the event of the 25th. Nobody would believe it here until after it happened, but the President can bear me witness that I prepared him to expect it a month ago. The public will only understand it as a political movement against a rival; it is right, however, that you should know that without an auxiliary cause the political movement against you would not have succeeded. There were gentlemen voting against you who would not have done so except for a reason which was strong and clear in their own minds, and which (it would be improper to dissemble) has hurt you in the estimation of many candid and disinterested people. After saying this much, I must also say, that I look upon this head of objection as temporary, dying out of itself, and to be swallowed up in the current and accumulating topics of the day. You doubtless know what is best for yourself, and it does not become me to make suggestions; but for myself, when I find myself on the bridge of Lodi, I neither stop to parley, nor turn back to start again. Forward, is the word. Some say, make you governor of New-York; I say, you have been governor before: that is turning back. Some say, come to the Senate in place of some of your friends; I say, that of itself will be only parleying with the enemy while on the middle of the bridge, and receiving their fire. The vice-presidency is the only thing, and if a place in the Senate can be coupled with the trial for that, then a place in the Senate might be desirable. The Baltimore Convention will meet in the month of May, and I presume it will be in the discretion of your immediate friends in New-York, and your leading friends here, to have you nominated; and in all that affair I think you ought to be passive. 'For Vice-President,' on the Jackson ticket, will identify you with him; a few cardinal principles of the old democratic school might make you worth contending for on your own account. The dynasty of '98 (the federalists) has the Bank of the United States in its interest; and the Bank of the United States has drawn into its vortex, and wields at its pleasure, the whole high tariff and federal internal improvement party. To set up for yourself, and to raise an interest which can unite the scattered elements of a nation, you will have to take positions which are visible, and represent principles which are felt and understood; you will have to separate yourself from the enemy by partition lines which the people can see. The dynasty of '98 (federalists), the Bank of the United States, the high tariff party, the federal internal improvement party, are against you. Now, if you are not against them, the people, and myself, as one of the people, can see nothing between you and them worth contending for, in a national point of view. This is a very plain letter, and if you don't like it, you will throw it in the fire; consider it as not having been written. For myself, I mean to retire upon my profession, while I have mind and body to pursue it; but I wish to see the right principles prevail, and friends instead of foes in power."

The prominent idea in this letter was, that the people would see the rejection in the same light that I did--as a combination to put down a rival--as a political blunder--and that it would work out the other way. The same idea prevailed in England. On the evening of the day, on the morning of which all the London newspapers heralded the rejection of the American minister, there was a great party at Prince Talleyrand's--then the representative at the British court, of the new King of the French, Louis Phillippe. Mr. Van Buren, always master of himself, and of all the proprieties of his position, was there, as if nothing had happened; and received distinguished attentions, and complimentary allusions. Lord Aukland, grandson to the Mr. Eden who was one of the Commissioners of Conciliation sent to us at the beginning of the revolutionary troubles, said to him, "It is an advantage to a public man to be the subject of an outrage"--a remark, wise in itself, and prophetic in its application to the person to whom it was addressed. He came home--apparently gave himself no trouble about what had happened--was taken up by the people--elected, successively, Vice-President and President--while none of those combined against him ever attained either position.

There was, at the time, some doubt among their friends as to the policy of the rejection, but the three chiefs were positive in their belief that a senatorial condemnation would be political death. I heard Mr. Calhoun say to one of his doubting friends, "It will kill him, sir, kill him dead. He will never kick sir, never kick;" and the alacrity with which he gave the casting votes, on the two occasions, both vital, on which they were put into his hands, attested the sincerity of his belief, and his readiness for the work. How those tie-votes, for there were two of them, came to happen twice, "hand-running," and in a case so important, was matter of marvel and speculation to the public on the outside of the locked-up senatorial door. It was no marvel to those on the inside, who saw how it was done. The combination had a superfluity of votes, and, as Mr. Van Buren's friends were every one known, and would sit fast, it only required the superfluous votes on one side to go out; and thus an equilibrium between the two lines was established. When all was finished, the injunction of secrecy was taken off the proceedings, and the dozen set speeches delivered in secret session immediately published--which shows that they were delivered for effect, not upon the Senate, but upon the public mind. The whole proceeding illustrates the impolicy, as well as peril to themselves, of rival public men sitting in judgment upon each other, and carries a warning along with it which should not be lost.

As an event affecting the most eminent public men of the day, and connecting itself with the settlement of one of our important foreign commercial questions--as belonging to history, and already carried into it by the senatorial debates--as a key to unlock the meaning of other conduct--I deem this account of the REJECTION of Mr. Van Buren a necessary appendage to the settlement of the British West India trade question--as an act of justice to General Jackson's administration (the whole of which was involved in the censure then cast upon his Secretary of State), and as a sunbeam to illuminate the labyrinth of other less palpable concatenations.

Spotted a typo or a problem in this chapter? Tell us

LX. BANK OF THE UNITED STATES--ILLEGAL AND VICIOUS CURRENCY

In his first annual message, in the year 1829, President Jackson, besides calling in question the unconstitutionality and general expediency of the Bank, also stated that it had failed in furnishing a uniform currency. That declaration was greatly contested by the Bank and its advocates, and I felt myself bound to make an occasion to show it to be well founded, and to a greater extent than the President had intimated. It had in fact issued an illegal and vicious kind of paper--authorized it to be issued at all the branches--in the shape of drafts or orders payable in Philadelphia, but voluntarily paid where issued, and at all the branches; and so made into a local currency, and constituting the mass of all its paper seen in circulation; and as the greatest quantity was usually issued at the most remote and inaccessible branches, the payment of the drafts were well protected by distance and difficulty; and being of small denominations, loitered and lingered in the hands of the laboring people until the "wear and tear" became a large item of gain to the Bank, and the difficulty of presenting them at Philadelphia an effectual bar to their payment there. The origin of this kind of currency was thus traced by me: It was invented by a Scotch banker of Aberdeen, who issued notes payable in London, always of small denominations, that nobody should take them up to London for redemption. The Bank of Ireland seeing what a pretty way it was to issue notes which they could not practically be compelled to pay, adopted the same trick. Then the English country bankers followed the example. But their career was short. The British parliament took hold of the fraud, and suppressed it in the three kingdoms. That parliament would tolerate no currency issued at one place, and payable at another.

The mode of proceeding to get at the question of this vicious currency was the same as that pursued to get at the question of the non-renewal of the charter--namely, an application for leave to bring in a joint resolution declaring it to be illegal, and ordering it to be suppressed; and in asking that leave to give the reasons for the motion: which was done, in a speech of which the following are some parts:

"Mr. Benton rose to ask leave to bring in his promised resolution on the state of the currency. He said he had given his notice for the leave he was about to ask, without concerting or consulting with any member of the Senate. The object of his resolution was judicial, not political; and he had treated the senators not as counsellors, but as judges. He had conversed with no one, neither friend nor adversary; not through contempt of counsel, or fear of opposition, but from a just and rigorous regard to decorum and propriety. His own opinion had been made up through the cold, unadulterated process of legal research; and he had done nothing, and would do nothing, to prevent, or hinder, any other senator from making up his opinion in the same way. It was a case in which politics, especially partisan politics, could find no place; and in the progress of which every senator would feel himself retiring into the judicial office--becoming one of the judices selecti--and searching into the stores of his own legal knowledge, for the judgment, and the reasons of the judgment, which he must give in this great cause, in which a nation is the party on one side, and a great moneyed corporation on the other. He [Mr. B.] believed the currency, against which his resolution was directed, to be illegal and dangerous; and so believing, it had long been his determination to bring the question of its legality before the Senate and the people; and that without regard to the powerful resentment, to the effects of which he might be exposing himself. He had adopted the form of a declaratory resolution, because it was intended to declare the true sense of the charter upon a disputed point. He made his resolution joint in its character, that it might have the action of both Houses of Congress; and single in its object, that the main design might not be embarrassed with minor propositions. The form of the resolution gave him a right to state his reasons for asking leave to bring it in; the importance of it required those reasons to be clearly stated. The Senate, also, has its rights and its duties. It is the right of the Senate and House of Representatives, as the founder of the bank corporation, to examine into the regularity of its proceedings, and to take cognizance of the infractions of its charter; and this right has become a duty, since the very tribunal selected by the charter to try these infractions had tried this very question, and that without the formality of a scire facias or the presence of the adverse party, and had given judgment in favor of the corporation; a decision which he [Mr. B.] was compelled, by the strongest convictions of his judgment, to consider both as extrajudicial and erroneous.

"The resolution, continued Mr. B., which I am asking leave to bring in, expresses its own object. It declares against the legality of these orders, AS A CURRENCY. It is the currency which I arraign. I make no inquiry, for I will not embarrass my subject with irrelevant and immaterial inquiries--I make no inquiry into the modes of contract and payment which are permitted, or not permitted, to the Bank of the United States, in the conduct of its private dealings and individual transactions. My business lies with the currency; for, between public currency and private dealings, the charter of the bank has made a distinction, and that founded in the nature of things, as broad as lines can draw, and as clear as words can express. The currency concerns the public; and the soundness of that currency is taken under the particular guardianship of the charter; a special code of law is enacted for it: private dealings concern individuals: and it is for individuals, in making their bargains, to take care of their own interests. The charter of the Bank of the United States has authorized, but not regulated, certain private dealings of the bank; it is full and explicit upon the regulation of currency. Upon this distinction I take my stand. I establish myself upon the broad and clear distinction which reason makes, and the charter sanctions. I arraign the currency! I eschew all inquiry into the modes of making bargains for the sale or purchase of bills of exchange, buying and selling gold or silver bullion, building houses, hiring officers, clerks, and servants, purchasing necessaries, or laying in supplies of fuel and stationery.

"1. I object to it because it authorizes an issue of currency upon construction. The issue of currency, sir, was the great and main business for which the bank was created, and which it is, in the twelfth article, expressly authorized to perform, and I cannot pay so poor a compliment to the understandings of the eminent men who framed that charter, as to suppose that they left the main business of the bank to be found, by construction, in an independent phrase, and that phrase to be found but once in the whole charter. I cannot compliment their understandings with the supposition that, after having authorized and defined a currency, and subjected it to numerous restrictions, they had left open the door to the issue of another sort of currency, upon construction, which should supersede the kind they had prescribed, and be free from every restriction to which the prescribed currency was subject.

"Let us recapitulate. Let us sum up the points of incompatibility between the characteristics of this currency, and the requisites of the charter: let us group and contrast the frightful features of their flagrant illegality. 1. Are they signed by the president of the bank and his principal cashier? They are not! 2. Are they under the corporate seal? Not at all! 3. Are they drawn in the name of the corporation? By no means! 4. Are they subject to the double limitation of time and amount in case of credit? They are not; they may exceed sixty days' time, and be less than one hundred dollars! 5. Are they limited to the minimum size of five dollars? Not at all! 6. Are they subject to the supervision of the Secretary of the Treasury? Not in the least! 7. The prohibition against suspending specie payments? They are not subject to it! 8. The penalty of double interest for delayed payment? Not subject to it! 9. Are they payable where issued? Not at all, neither by their own terms, nor by any law applicable to them! 10. Are they payable at other branches? So far from it, that they were invented to avoid such payment! 11. Are they transferable by delivery? No; by indorsement! 12. Are they receivable in payment of public dues? So far from it, that they are twice excluded from such payments by positive enactments! 13. Are the directors liable for excessive issues? Not at all! 14. Has the holder a right to sue at the branch which issues the order? No, sir, he has a right to go to Philadelphia, and sue the directors there! a right about equivalent to the privilege of going to Mecca to sue the successors of Mahomet for the bones of the prophet! Fourteen points of contrariety and difference. Not a feature of the charter in the faces of these orders. Every mark a contrast; every lineament a contradiction; all announcing, or rather denouncing, to the world, the positive fact of a spurious progeny; the incontestable evidence of an illegitimate and bastard issue.

"I have now, Mr. President, brought this branch bank currency to the test of several provisions in the charter, not all of them, but a few which are vital and decisive. The currency fails at every test; and upon this failure I predicate an argument of its total illegality. Thus far I have spoken upon the charter, and have proved that if this currency can prevail, that instrument, with all its restrictions and limitations, its jealous, prohibitory constitution, and multiplied enactments for the safety of the public, is nothing but a blank piece of paper in the hands of the bank. I will now have recourse to another class of arguments--a class extrinsic to the charter, but close to the subject--indispensable to fair examination, and directly bearing upon the illegal character of this currency.

"1. In the first place, I must insist that these orders cannot possibly serve for currency, because they are subject to the law of indorsable paper. The law which governs all such paper is too universally known to be enlarged upon here. Presentation for acceptance and payment, notice of default in either, prompt return of the dishonored paper; and all this with rigorous punctuality, and a loss of recourse for the slightest delay at any point, are the leading features of this law. Now it is too obvious that no paper subject to the law of indorsement can answer the purposes of circulation. It will die on the hands of the holders while passing from one to another, instead of going to the place of payment. Now it is incontestable that these orders are instruments negotiable by indorsement, and by indorsement alone. Whether issued under the charter, or under the general laws of the land, they are still subject to the law of indorsable paper. They are the same in either case as if drawn by one citizen upon another. And this is a point which I mean to make clear: for many worthy people believe there is some peculiar law for bank paper, which takes it out of the operation of the general laws of the land. Not so the fact. The twelfth fundamental article of the bank constitution declares that the bills or notes to be issued by the bank shall be negotiable in the same manner as if issued by a private person; that is to say, those payable to a named person or his order, by indorsement, in like manner and with the like effect as foreign bills of exchange; and those made payable to bearer shall be negotiable by delivery alone; in the same manner, we may add, as a silver dollar. So much for these orders, if drawn under the charter; if not drawn under it, they are then issued under the general law of the land, or without any law at all. Taken either under the charter or out of it, it comes to the same point, namely, that these orders are subject to the same law as if drawn by one private person upon another. This is enough to fix their character, and to condemn them as a circulating medium; it is enough for the people to know; for every citizen knows enough of law to estimate the legal value of an unaccepted order, drawn upon a man five hundred or one thousand miles off! But it has the word bearer on the back! Yes, sir, and why not on the face as easily as on the back? Our school-time acquaintance, Mr. President, the gentleman from Cork, with his coat buttoned behind, had a sensible, and, I will add, a lawful reason for arraying himself in that grotesque habiliment; but what reason can the bank have for putting bearer on the back of the order, where it has no effect upon its negotiable character, and omitting it on the face, where it would have governed the character, and secured to the holder all the facilities for the prompt and easy recovery of the contents of a paper transferable by mere delivery? The only effect of this preposterous or cunning indorsement must be to bamboozle the ignorant--pardon the low word, sir--to bamboozle the ignorant with the belief that they are handling a currency which may at any time be collected without proof, trouble, or delay; while in reality it is a currency which reserves to the bank all the legal defences which can be set up to prevent the recovery of a parcel of old, unaccepted, unpresented, unauthorized bills of exchange.

"2. I take a second exception to these orders as a currency. It is this, that being once paid, they are done with. A note transferable by delivery, may be reissued, and its payment demanded again, and so on forever. But a bill of exchange, or any paper subject to the same law with a bill of exchange, is incapable of reissue, and is payable but once. The payment once made, extinguishes the debt; the paper which evidenced it is dead in law, and cannot be resuscitated by any act of the parties. That payment can be plead in bar to any future action. This law applies to checks and orders as well as to bills of exchange; it applies to bank checks and orders as well as to those of private persons, and this allegation alone would annihilate every pretension of these branch bank orders to the character of currency.

"The bank went into operation with the beginning of the year 1817; established eighteen branches, half a dozen of which in the South and West; issued its own notes freely, and made large issues of notes payable at all these branches. The course of trade carried the branch notes of the South and West to the Northeast; and nothing in the course of trade brought them back to the West. They were payable in all demands to the federal government; merchants in Philadelphia, New-York, and Boston received them in payment of goods, and gave them--not back again in payment of Southern and Western produce--but to the collectors of the customs. Become the money of the government, the bank had to treat them as cash. The fourteenth section of the charter made them receivable in all payments to the government, and another clause required the bank to transfer the moneys of the government to any point ordered; these two clauses (the transfer clause being harmless without the receiving one contained in the fourteenth section) laid the bank under the obligation to cash all the notes of all the branches wherever presented; for, if she did not do it, she would be ordered to transfer the notes to the place where they were payable, and then to transfer the silver to the place where it was wanted; and both these operations she had to perform at her own expense. The Southern and Western branch notes flowed to the Northeast; the gold and silver of the South and West were ordered to follow them; and, in a little while, the specie of the South and West was transferred to the Northeast; but the notes went faster on horses and in mail stages than the silver could go in wagons; and the parent bank in Philadelphia, and the branches in New-York and Boston, exhausted by the double operation of providing for their own, and for Southern and Western branch notes besides, were on the point of stopping payment at the end of two years. Mr. Cheves then came into the presidency; he stopped the issue of Southern and Western branch paper, and saved the bank from insolvency! Application was then made to Congress to repeal the fourteenth section of the charter, and thus relieve the bank from this obligation to cash its notes every where. Congress refused to do so. Application was made at the same time to repeal a part of the twelfth fundamental article of the constitution of the bank, for the purpose of relieving the president and principal cashier of the parent bank from the labor of signing the five and ten dollar notes. Congress refused that application also. And here every thing rested while Mr. Cheves continued president. The Southern and Western branches ceased to do business as banks; no bank notes or bills were seen but those bearing the signatures of the president and his principal cashier, and none of these payable at Southern and Western branches. The profits of the stockholders became inconsiderable, and the prospect of a renewed charter was lost in the actual view of the inactivity and uselessness of the bank in the South and West. Mr. Cheves retired. He withdrew from an institution he had saved from bankruptcy, but which he could not render useful to the South and West; and then ensued a set of operations for enabling the bank to do the things which Congress had refused to do for it; that is to say, to avoid the operation of the fourteenth section, and so much of the twelfth fundamental article as related to the signature of the notes and bills of the bank. These operations resulted in the invention of the branch bank orders. These orders, now flooding the country, circulating as notes, and considered every where as gold and silver (because they are voluntarily cashed at several branches, and erroneously received at every land office and custom-house), have given to the bank its present apparent prosperity, its temporary popularity, and its delusive cry of a sound and uniform currency. This is my narrative; an appalling one, it must be admitted; but let it stand for nothing if not sustained by the proof.

"I have now established, Mr. President, as I trust and believe, the truth of the first branch of my proposition, namely, that this currency of branch bank orders is unauthorized by the charter, and illegal. I will now say a few words in support of the second branch of the proposition, namely, that this currency ought to be suppressed.

"The mere fact of the illegality, sir, I should hold to be sufficient to justify this suppression. In a country of laws, the laws should be obeyed. No private individual should be allowed to trample them under foot; much less a public man, or public body; least of all, a great moneyed corporation wielding above one hundred millions of dollars per annum, and boldly contending with the federal government for the sceptre of political power--money is power! The Bank of the United States possesses more money than the federal government; and the question of power is now to be decided between them. That question is wrapped up in the case before you. It is a case of clear conviction of a violation of the laws by this great moneyed corporation; and that not of a single statute, and by inadvertence, and in a small matter, which concerns but few, but in one general, sweeping, studied, and systematic infraction of a whole code of laws--of an entire constitution, made for its sole government and restraint--and the pernicious effects of which enter into the revenues of the Union, and extend themselves to every moneyed transaction between man and man. This is the case of violated law which stands before you; and if it goes unpunished, then do I say, the question of political power is decided between the bank and the government. The question of supremacy is at an end. Let there be no more talk of restrictions or limitation in the charter. Grant a new one. Grant it upon the spot. Grant it without words! Grant it in blank! to save the directors from the labor of re-examination! the court from the labor of constructions! and yourselves from the radation of being publicly trampled under foot.

"I do insist, Mr. President, that this currency ought to be suppressed for illegality alone, even if no pernicious consequences could result from its circulation. But pernicious consequences do result. The substituted currency is not the equivalent of the branch bank notes, whose place it has usurped: it is inferior to those notes in vital particulars, and to the manifest danger and loss of the people.

"In the first place, these branch bank orders are not payable in the States in which they are issued. Look at them! they are nominally payable in Philadelphia! Look at the law! It gives the holder no right to demand their contents at the branch bank, until the order has been to Philadelphia, and returned. I lay no stress upon the insidious circumstance that these orders are now paid at the branch where issued, and at other branches. That voluntary, delusive payment may satisfy those who are willing to swallow a gilded hook; it may satisfy those who are willing to hold their property at the will of the bank. For my part, I want law for my rights. I look at the law, to the legal rights of the holder, and say that he has no right to demand payment at the branch which issued the order. The present custom of paying is voluntary, not compulsory; it depends upon the will of the bank, not upon law; and none but tyrants can require, or slaves submit to, a tenure at will. These orders, even admitting them to be legal, are only payable in Philadelphia and to demand payment there, is a delusive and impracticable right. For the body of the citizens cannot go to Philadelphia to get the change for the small orders; merchants will not remit them; they would as soon carry up the fires of hell to Philadelphia; for the bank would consign them to ruin if they did. These orders are for the frontiers; and it is made the interest and the policy of merchants to leave them at home, and take a bill of exchange at a nominal premium. Brokers alone will ever carry them, and that as their own, after buying them out of the hands of the people at a discount fixed by themselves.

"This contrivance, Mr. President, of issuing bank paper at one place, payable at another and a distant place, is not a new thing under the sun; but its success, if it succeeds here, will be a new thing in the history of banking. This contrivance, sir, is of European origin. It began in Scotland some years ago, with a banker in Aberdeen, who issued promissory notes payable in London. Then the Bank of Ireland set her branches in Sligo, Cork, and Belfast, at the same work; and they made their branch notes payable in Dublin. The English country bankers took the hint, and put out their notes payable in London. The mass of these notes were of the smaller denominations, one or two pounds sterling, corresponding with our five and ten dollar orders; such as were handled by the laboring classes, and who could never carry them to London and Dublin to demand their contents. At this point the British Imperial Parliament took cognizance of the matter; treated the issue of such notes as a vicious practice, violative of the very first idea of a sound currency, and particularly dangerous to the laboring classes. The parliament suppressed the practice. This all happened in the year 1826; and now this practice, thus suppressed in England, Scotland, and Ireland, is in full operation in our America! and the directors of the Bank of the United States are celebrated, as the greatest of financiers, for picking up an illegal practice of Scottish origin, and putting it into operation in the United States, and that, too, in the very year in which it was suppressed in Great Britain!"

Leave was not given to introduce the joint resolution. The friends of the bank being a majority in the Senate, refused the motion, but felt themselves bound to make defence for a currency so illegal and vicious. Further discussion was stopped for that time; but afterwards, on the question of the recharter, the illegality of this kind of currency was fully established, and a clause put into the new charter to suppress it. The veto message put an end to the charter, and for the necessity of the remedy in that quarter; but the practice has been taken up by local institutions and private bankers in the States, and become an abuse which requires extirpation.

Spotted a typo or a problem in this chapter? Tell us

Chapter LXI

ERROR OF MONS. DE TOCQUEVILLE IN RELATION TO THE BANK OF THE UNITED STATES, THE PRESIDENT, AND THE PEOPLE.

The first message of President Jackson, delivered at the commencement of the session of 1829-30, confirmed the hopes which the democracy had placed in him. It was a message of the Jeffersonian school, and re-established the land-marks of party, as parties were when founded on principle. Its salient point was the Bank of the United States, and the non-renewal of its charter. He was opposed to the renewal, both on grounds of constitutionality and expediency; and took this early opportunity of so declaring, both for the information of the people, and of the institution, that each might know what they had to rely upon with respect to him. He said:

"The charter of the Bank of the United States expires in 1836, and its stockholders will probably apply for a renewal of their privileges. In order to avoid the evils resulting from precipitancy in a measure involving such important principles, and such deep pecuniary interests, I feel that I cannot, in justice to the parties interested, too soon present it to the deliberate consideration of the legislature and the people. Both the constitutionality and the expediency of the law creating this bank are well questioned by a large portion of our fellow-citizens; and it must be admitted by all that it has failed in the great end of establishing a uniform and sound currency."

This passage was the grand feature of the message, rising above precedent and judicial decisions going back to the constitution and the foundation of party on principle; and risking a contest at the commencement of his administration, which a mere politician would have put off to the last. The Supreme Court had decided in favor of the constitutionality of the institution; a democratic Congress, in chartering a second bank, had yielded the question, both of constitutionality and expediency. Mr. Madison, in signing the bank charter in 1816, yielded to the authorities without surrendering his convictions. But the effect was the same in behalf of the institution, and against the constitution, and against the integrity of party founded on principle. It threw down the greatest landmark of party, and yielded a power of construction which nullified the limitations of the constitution, and left Congress at liberty to pass any law which it deemed necessary to carry into effect any granted power. The whole argument for the bank turned upon the word "necessary" at the end of the enumerated powers granted to Congress; and gave rise to the first great division of parties in Washington's time--the federal party being for the construction which would authorize a national bank; the democratic party (republican, as then called,) being against it.

It was not merely the bank which the democracy opposed, but the latitudinarian construction which would authorize it, and which would enable Congress to substitute its own will in other cases for the words of the constitution, and do what it pleased under the plea of "necessary"--a plea under which they would be left as much to their own will as under the "general welfare" clause. It was the turning point between a strong and splendid government on one side, doing what it pleased, and a plain economical government on the other, limited by a written constitution. The construction was the main point, because it made a gap in the constitution through which Congress could pass any other measures which it deemed to be "necessary:" still there were great objections to the bank itself. Experience had shown such an institution to be a political machine, adverse to free government, mingling in the elections and legislation of the country, corrupting the press; and exerting its influence in the only way known to the moneyed power--by corruption. General Jackson's objections reached both heads of the case--the unconstitutionality of the bank, and its inexpediency. It was a return to the Jeffersonian and Hamiltonian times of the early administration of General Washington, and went to the words of the constitution, and not to the interpretations of its administrators, for its meaning.

Such a message, from such a man--a man not apt to look back when he had set his face forward--electrified the democratic spirit of the country. The old democracy felt as if they were to see the constitution restored before they died--the young, as if they were summoned to the reconstruction of the work of their fathers. It was evident that a great contest was coming on, and the odds entirely against the President. On the one side, the undivided phalanx of the federal party (for they had not then taken the name of whig); a large part of the democratic party, yielding to precedent and judicial decision; the bank itself, with its colossal money power--its arms in every State by means of branches--its power over the State banks--its power over the business community--over public men who should become its debtors or retainers--its organization under a single head, issuing its orders in secret, to be obeyed in all places and by all subordinates at the same moment. Such was the formidable array on one side: on the other side a divided democratic party, disheartened by division, with nothing to rely upon but the goodness of their cause, the prestige of Jackson's name, and the presidential power;--good against any thing less than two-thirds of Congress on the final question of the re-charter; but the risk to run of his non-election before the final question came on.

Under such circumstances it required a strong sense of duty in the new President to commence his career by risking such a contest; but he believed the institution to be unconstitutional and dangerous, and that it ought to cease to exist; and there was a clause in the constitution--that constitution which he had sworn to support--which commanded him to recommend to Congress, for its consideration, such measures as he should deem expedient and proper. Under this sense of duty, and under the obligation of this oath, President Jackson had recommended to Congress the non-renewal of the bank charter, and the substitution of a different fiscal agent for the operations of the government--if any such agent was required. And with his accustomed frankness, and the fairness of a man who has nothing but the public good in view, and with a disregard of self which permits no personal consideration to stand in the way of a discharge of a public duty, he made the recommendation six years before the expiration of the charter, and in the first message of his first term; thereby taking upon his hands such an enemy as the Bank of the United States, at the very commencement of his administration. That such a recommendation against such an institution should bring upon the President and his supporters, violent attacks, both personal and political, with arraignment of motives as well as of reasons, was naturally to be expected; and that expectation was by no means disappointed. Both he and they, during the seven years that the back contest (in different forms) prevailed, received from it--from the newspaper and periodical press in its interest, and from the public speakers in its favor of every grade--an accumulation of obloquy, and even of accusation, only lavished upon the oppressors and plunderers of nations--a Verres, or a Hastings. This was natural in such an institution. But President Jackson and his friends had a right to expect fair treatment from history--from disinterested history--which should aspire to truth, and which has no right to be ignorant or careless. He and they had a right to expect justice from such history; but this is what they have not received. A writer, whose book takes him out of that class of European travellers who requite the hospitality of Americans by disparagement of their institutions, their country, and their character--one whose general intelligence and candor entitle his errors to the honor of correction--in brief, M. de Tocqueville--writes thus of President Jackson and the Bank of the United States:

"When the President attacked the bank, the country was excited and parties were formed; the well-informed classes rallied round the bank, the common people round the President. But it must not be imagined that the people had formed a rational opinion upon a question which offers so many difficulties to the most experienced statesman. The bank is a great establishment, which enjoys an independent existence, and the people, accustomed to make and unmake whatever it pleases, is startled to meet with this obstacle to its authority. In the midst of the perpetual fluctuation of society, the community is irritated by so permanent an institution, and is led to attack in order to see whether it can be shaken or controlled, like all other institutions of the country."--(Chapter 10.)

Of this paragraph, so derogatory to President Jackson and the people of the United States, every word is an error. Where a fact is alleged, it is an error; where an opinion is expressed, it is an error; where a theory is invented, it is fanciful and visionary. President Jackson did not attack the bank; the bank attacked him, and for political as well as pecuniary motives; and under the lead of politicians. When General Jackson, in his first message, of December, 1829, expressed his opinion to Congress against the renewal of the bank's charter, he attacked no right or interest which the bank possessed. It was an institution of limited existence, enjoying great privileges,--among others a monopoly of national banking, and had no right to any prolongation of existence or privilege after the termination of its charter--so far from it, if there was to be another bank, the doctrine of equal rights and no monopolies or perpetuities required it to be thrown open to the free competition of all the citizens. The reasons given by the President were no attack upon the bank. He impugned neither the integrity nor the skill of the institution, but repeated the objections of the political school to which he belonged, and which were as old as Mr. Jefferson's cabinet opinion to President Washington, in the year 1791, and Mr. Madison's great speech in the House of Representatives in the same year. He, therefore, made no attack upon the bank, either upon its existence, its character, or any one of its rights. On the other hand, the bank did attack President Jackson, under the lead of politicians, and for the purpose of breaking him down. The facts were these: President Jackson had communicated his opinion to Congress in December, 1829, against the renewal of the charter; near three years afterwards, on the 9th of January, 1832, while the charter had yet above three years to run, and a new Congress to be elected before its expiration, and the presidential election impending--(General Jackson and Mr. Clay the candidates)--the memorial of the president and directors of the bank was suddenly presented in the Senate of the United States, for the renewal of its charter.

Now, how came that memorial to be presented at a time so inopportune? so premature, so inevitably mixing itself with the presidential election, and so encroaching upon the rights of the people, in snatching the question out of their hands, and having it decided by a Congress not elected for the purpose--and to the usurpation of the rights of the Congress elected for the purpose? How came all these anomalies? all these violations of right, decency and propriety? They came thus, the bank and its leading anti-Jackson friends believed that the institution was stronger than the President--that it could beat him in the election--that it could beat him in Congress (as it then stood), and carry the charter,--driving him upon the veto power, and rendering him odious if he used it, and disgracing him if (after what he had said) he did not. This was the opinion of the leading politicians friendly to the bank, and inimical to the President. But the bank had a class of friends in Congress also friendly to Gen. Jackson; and between these two classes there was vehement opposition of opinion on the point of moving for the new charter. It was found impossible, in communications between Washington and Philadelphia, then slow and uncertain, in stage coach conveyances, over miry roads and frozen waters, to come to conclusions on the difficult point. Mr. Biddle and the directors were in doubt, for it would not do to move in the matter, unless all the friends of the bank in Congress acted together. In this state of uncertainty, General Cadwallader, of Philadelphia, friend and confidant of Mr. Biddle, and his usual envoy in all the delicate bank negotiations or troubles, was sent to Washington to obtain a result; and the union of both wings of the bank party in favor of the desired movement. He came, and the mode of operation was through the machinery of caucus--that contrivance by which a few govern many. The two wings being of different politics, sat separately, one headed by Mr. Clay, the other by Gen. Samuel Smith, of Maryland. The two caucuses disagreed, but the democratic being the smaller, and Mr. Clay's strong will dominating the other, the resolution was taken to proceed, and all bound to go together.

I had a friend in one of these councils who informed me regularly of the progress made, and eventually that the point was carried for the bank--that General Cadwallader had returned with the news, and with injunctions to have the memorial immediately at Washington, and by a given day. The day arrived, but not the memorial, and my friend came to inform me the reason why; which was, that the stage had got overturned in the bad roads and crippled Gen. Cadwallader in the shoulder, and detained him; but that the delay would only be of two days; and then the memorial would certainly arrive. It did so; and on Monday, the 9th of January, 1832, was presented in the Senate by Mr. Dallas, a senator from Pennsylvania, and resident of Philadelphia, where the bank was established. Mr. Dallas was democratic, and the friend of General Jackson, and on presenting the memorial, as good as told all that I have now written, bating only personal particulars. He said:

"That being requested to present this document to the Senate, praying for a renewal of the existing charter of the bank, he begged to be indulged in making a few explanatory remarks. With unhesitating frankness he wished it to be understood by the Senate, by the good commonwealth which it was alike his duty and his pride to represent with fidelity on that floor, and by the people generally, that this application, at this time, had been discouraged by him. Actuated mainly, if not exclusively, by a desire to preserve to the nation the practical benefits of the institution, the expediency of bringing it forward thus early in the term of its incorporation, during a popular representation in Congress which must cease to exist some years before that term expires, and on the eve of all the excitement incident to a great political movement, struck his mind as more than doubtful. He felt deep solicitude and apprehension lest, in the progress of inquiry, and in the development of views, under present circumstances, it might be drawn into real or imaginary conflict with some higher, some more favorite, some more immediate wish or purpose of the American people; and from such a conflict, what sincere friend of this useful establishment would not strive to save or rescue it, by at least a temporary forbearance or delay?"

This was the language of Mr. Dallas, and it was equivalent to a protest from a well-wisher of the bank against the perils and improprieties of its open plunge into the presidential canvass, for the purpose of defeating General Jackson and electing a friend of its own. The prudential counsels of such men as Mr. Dallas did not prevail; political counsels governed; the bank charter was pushed--was carried through both Houses of Congress--dared the veto of Jackson--received it--roused the people--and the bank and all its friends were crushed. Then it affected to have been attacked by Jackson; and Mons. de Tocqueville has carried that fiction into history, with all the imaginary reasons for a groundless accusation, which the bank had invented.

The remainder of this quotation from Mons. de Tocqueville is profoundly erroneous, and deserves to be exposed, to prevent the mischiefs which his book might do in Europe, and even in America, among that class of our people who look to European writers for information upon their own country. He speaks of the well-informed classes who rallied round the bank; and the common people who had formed no rational opinion upon the subject, and who joined General Jackson. Certainly the great business community, with few exceptions, comprising wealth, ability and education, went for the bank, and the masses for General Jackson; but which had formed the rational opinion is seen by the event. The "well-informed" classes have bowed not merely to the decision, but to the intelligence of the masses. They have adopted their opinion of the institution--condemned it--repudiated it as an "obsolete idea;" and of all its former advocates, not one exists now. All have yielded to that instinctive sagacity of the people, which is an overmatch for book-learning; and which being the result of common sense, is usually right; and being disinterested, is always honest. I adduce this instance--a grand national one--of the succumbing of the well-informed classes to the instinctive sagacity of the people, not merely to correct Mons. de Tocqueville, but for the higher purpose of showing the capacity of the people for self-government. The rest of the quotation, "the independent existence--the people accustomed to make and unmake--startled at this obstacle--irritated at a permanent institution--attack in order to shake and control;" all this is fancy, or as the old English wrote it, fantasy--enlivened by French vivacity into witty theory, as fallacious as witty.

I could wish I were done with quotations from Mons. de Tocqueville on this subject; but he forces me to make another extract from his book, and it is found in his chapter 18, thus:

"The slightest observation enables us to appreciate the advantages which the country derives from the bank. Its notes are taken on the borders of the desert for the same value as in Philadelphia. It is nevertheless the object of great animosity. Its directors have proclaimed their hostility to the President, and are accused, not without some show of probability, of having abused their influence to thwart his election. The President, therefore, attacks the establishment with all the warmth of personal enmity; and he is encouraged in the pursuit of his revenge by the conviction that he is supported by the secret propensities of the majority. It always holds a great number of the notes issued by the provincial banks, which it can at any time oblige them to convert into cash. It has itself nothing to fear from a similar demand, as the extent of its resources enables it to meet all claims. But the existence of the provincial banks is thus threatened, and their operations are restricted, since they are only able to issue a quantity of notes duly proportioned to their capital. They submit with impatience to this salutary control. The newspapers which they have bought over, and the President, whose interest renders him their instrument, attack the bank with the greatest vehemence. They rouse the local passions and the blind democratic instinct of the country to aid in their cause; and they assert that the bank directors form a permanent aristocratic body, whose influence must ultimately be felt in the government, and must affect those principles of equality--upon which society rests in America."

Now, while Mons. de Tocqueville was arranging all this fine encomium upon the bank, and all this censure upon its adversaries, the whole of which is nothing but a French translation of the bank publications of the day, for itself and against President Jackson--during all this time there was a process going on in the Congress of the United States, by which it was proved that the bank was then insolvent, and living from day to day upon expedients; and getting hold of property and money by contrivances which the law would qualify as swindling--plundering its own stockholders--and bribing individuals, institutions, and members of legislative bodies, wherever it could be done. Those fine notes, of which he speaks, were then without solid value. The salutary restraint attributed to its control over local banks was soon exemplified in its forcing many of them into complicity in its crimes, and all into two general suspensions of specie payments, headed by itself. Its solidity and its honor were soon shown in open bankruptcy--in the dishonor of its notes--the violation of sacred deposits--the disappearance of its capital--the destruction of institutions connected with it--the extinction of fifty-six millions of capital (its own, and that of others drawn into its vortex);--and the ruin or damage of families, both foreign and American, who had been induced by its name, and by its delusive exhibitions of credit, to invest their money in its stock. Placing the opposition of President Jackson to such an institution to the account of base and personal motives--to feelings of revenge because he had been unable to seduce it into his support--is an error of fact manifested by all the history of the case; to say nothing of his own personal character. He was a senator in Congress during the existence of the first national bank, and was against it; and on the same grounds of unconstitutionality and of inexpediency. He delivered his opinion against this second one before it had manifested any hostility to him. His first opposition was abstract--against the institution--without reference to its conduct; he knew nothing against it then, and neither said, or insinuated any thing against it. Subsequently, when misconduct was discovered, he charged it; and openly and responsibly. Equally unfounded is the insinuation in another place, of subserviency to local banks. He, the instrument of local banks! he who could not be made the friend, even, of the great bank itself; who was all his life a hard money man--an opposer of all banks--the denouncer of delinquent banks in his own State; who, with one stroke of his pen, in the recess of Congress, and against its will, in the summer of 1836, struck all their notes from the list of land-office payments! and whose last message to Congress, and in his farewell address to the people, admonished them earnestly and affectionately against the whole system of paper money--the evils of which he feelingly described as falling heaviest upon the most meritorious part of the community, and the part least able to bear them--the productive classes.

The object of this chapter is to correct this error of Mons. de Tocqueville, and to vindicate history, and to do justice to General Jackson and the democracy: and my task is easy. Events have done it for me--have answered every question on which the bank controversy depended, and have nullified every argument in favor of the bank--and that both with, and without reference to its misconduct. As an institution, it has been proved to be "unnecessary," and the country is found to do infinitely better without it than with it. During the twenty years of its existence there was pecuniary distress in the country--periodical returns of expansion and contraction, deranged currency, ruined exchanges, panics and convulsions in the money market. In the almost twenty years which have elapsed since, these calamitous words have never been heard: and the contrast of the two periods will make the condemnation of one, and the eulogy of the other. There was no gold during the existence of the bank: there has been an ample gold currency ever since, and that before we got California. There were general suspensions of specie payments during its time; and none since. Exchanges were deranged during its existence: they have been regular since its death. Labor and property lived the life of "up and down"--high price one day, no price another day--while the bank ruled: both have been "up" all the time, since it has been gone. We have had a war since--a foreign war--which tries the strength of financial systems in all countries; and have gone through this war not only without a financial crisis, but with a financial triumph--the public securities remaining above par the whole time; and the government paying to its war debt creditors a reward of twenty dollars upon the hundred to get them to accept their pay before it is due; and in this shining side of the contrast, experience has invalidated the decision of the Supreme Court, by expunging the sole argument upon which the decision rested. "Necessity," "necessary to carry into effect the granted powers," was the decision of the court. Not so, the voice of experience. That has proved such an institution to be unnecessary. Every granted power, and some not granted, have been carried into effect since the extinction of the national bank, and since the substitution of the gold currency and the independent treasury; and all with triumphant success--the war power above all, and most successfully exercised of all. And this sole foundation for the court's decision in favor of the constitutionality of the bank being removed, the decision itself vanishes--disappears--"like the baseless fabric of a vision, leaving not a wreck behind." But there will be a time hereafter for the celebration of this victory of the constitution over the Supreme Court--the only object of this chapter being to vindicate General Jackson and the people from the errors of Mons. de Tocqueville in relation to them and the bank: which is done.

Spotted a typo or a problem in this chapter? Tell us

LXII. EXPENSES OF THE GOVERNMENT

Economy in the government expenditures was a cardinal feature in the democratic policy, and every increase of expense was closely scrutinized by them, and brought to the test of the clearest necessity. Some increase was incident to the growing condition of the country; but every item beyond the exigencies of that growth was subjected to severe investigation and determined opposition. In the execution of this policy the expenses proper of the government--those incident to working its machinery--were, immediately after my entrance into the Senate, and after the army and other reductions of 1820 and '21 had taken effect--just about eight millions of dollars. The same expenditure up to the beginning of the year 1832--a period of about ten years--had risen to thirteen and a half millions: and, adverting to this increase in some current debate, and with a view to fix attention upon the growing evil, I stated to the Senate that these expenses had nearly doubled since I had been a member of the Senate. This statement drew a reply from the veteran chairman of the Senate's committee on finance (General Smith, of Maryland), in opposition to my statement; which, of course, drew further remarks from me. Both sets of remarks are valuable at this day--instructive in the picture they present between 1822--1832--and 1850. Gen. Smith's estimate of about ten millions instead of eight--though predicated on the wrong basis of beginning to count before the expenses of the army reduction had taken effect, and counting in the purchase of Florida, and some other items of a nature foreign to the support of government--even his estimate presents a startling point of comparison with the same expenditure of the present day; and calls for the revival of that spirit of economy which distinguished the democracy in the earlier periods of the government. Some passages from the speech of each senator (General Smith and Mr. Benton) will present this brief, but important inquiry, in its proper point of view. Gen. Smith said:

"I will now come, Mr. President, to my principal object. It is the assertion, 'that, since the year 1821, the expenses of the government had nearly doubled;' and I trust I shall be able to show that the senator from Missouri [Mr. Benton] had been under some misapprehension. The Senate are aware of the effect which such an assertion, coming from such high authority, must have upon the public mind. It certainly had its effect even upon this enlightened body. I mentioned to an honorable senator a few days since, that the average ordinary expenditure of the government for the last nine years did not exceed the sum of twelve and a half millions. But, said the senator, the expenditures have greatly increased during that period. I told him I thought they had not; and I now proceed to prove, that, with the exception of four years, viz., 1821, 1822, 1823, and 1824, the expenditures of the government have not increased. I shall endeavor to show the causes of the reduction of expenses during those years, and that they afford no criteria by which to judge of the necessary expenses of government, and that they are exceptions to the general rate of expenditures, arising from particular causes. But even they exhibit an expenditure far above the one half of the present annual ordinary expenses.

"In the year 1822, which was the period when the senator from Missouri [Mr. Benton] took his seat in the Senate, the ordinary expenses of the government amounted to the sum of $9,827,643. The expenses of the year 1823, amounted to $9,784,154. I proceed, Mr. President, to show the cause which thus reduced the ordinary expenses during these years. I speak in the presence of gentlemen, some of whom were then in the House of Representatives, and will correct me if my recollection should lead me into error. During the session of the year 1819-'20 the President asked a loan, I think, of five millions, to defray the expenses of the government, which he had deemed necessary, and for which estimates had, as usual, been laid before Congress. A loan of three millions only was granted; and, in the next session, another loan of, I think, seven millions was asked, in order to enable the Executive to meet the amount of expenses estimated for, as necessary for the year 1821. A loan of five millions was granted, and in the succeeding year another loan of five hundred thousand dollars was asked, and refused. Congress were dissatisfied that loans should be required in time of profound peace, to meet the common expenses of the nation; and they refused to grant the amount asked for in the estimates, although this amount would have been granted if there had been money in the treasury to meet them, without resorting to loans. The Committee of Ways and Means (and it was supported by the House) lessened some of the items estimated for, and refused others. No item, except such as was indispensably necessary, was granted. By the adoption of this course, the expenditures were reduced, in 1821, to $10,723,479, and to the sums already mentioned for the two years, 1822 and 1823, and the current expenses of 1824. $10,330,144. The consequence was, that the treasury was restored to a sound state, so that Congress was enabled, in the year 1825, to appropriate the full amount of the estimate. The expenditures of 1824 amounted to $15,330,144. This large expenditure is to be attributed to the payment made to Spain in that year, of $5,000,000 for the purchase of Florida. I entertained doubts whether I ought to include this sum in the expenditures; but, on full consideration, I deemed it proper to include it. It may be said that it was an extraordinary payment, and such as could not again occur. So is the payment on account of awards under the Treaty of Ghent, in 1827 and 1828, amounting to $1,188,716. Of the same character, too, are the payments made for the purchase of lands from the Indians; for the removal of the Indians; for payments to the several States for moneys advanced during the late war; and a variety of other extraordinary charges on the treasury."

The error of this statement was in the basis of the calculation, and in the inclusion of items which did not belong to the expenses proper of the government, and in beginning to count before the year of reduction--the whole of which, in a period of ten years made an excess of twenty-two millions above the ordinary expenses. I answered thus:

"Mr. Benton rose in reply to the senator from Maryland. Mr. B. said that a remark of his, in a former debate, seemed to have been the occasion of the elaborate financial statements which the senator from Maryland had just gone through. Mr. B. said he had made the remark, in debate; it was a general one, and not to be treated as an account stated by an accounting officer. His remark was, that the public expenditure had nearly doubled since he had been a member of the Senate. Neither the words used, nor the mode of the expression, implied the accuracy of an account; it was a remark to signify a great and inordinate increase in a comparatively short time. He had not come to the Senate this day with the least expectation of being called to justify that remark, or to hear a long arraignment of it argued; but he was ready at all times to justify, and he would quickly do it. Mr. B. said that when he made the remark, he had no statement of accounts in his eye, but he had two great and broad facts before him, which all the figures and calculations upon earth, and all the compound and comparative statements of arithmeticians, could not shake or alter; which were--first, that when he came into the Senate the machinery of this government was worked for between eight and nine millions of dollars; and, secondly, the actual payments for the last year, in the President's message, were about fourteen millions and three-quarters. The sum estimated for the future expenditures, by the Secretary of the Treasury, was thirteen and a half millions; but fifteen millions were recommended by him to be levied to meet increased expenditures. Mr. B. said these were two great facts which he had in his eye, and which he would justify. He would produce no proofs as to the second of his facts, because the President's message and the Secretary's report were so recently sent in, and so universally reprinted, that every person could recollect, or turn to their contents, and verify his statement upon their own examination or recollection. He would verify his first statement only by proofs, and for that purpose would refer to the detailed statements of the public expenditures, compiled by Van Zandt and Watterston, and for which he had just sent to the room of the Secretary of the Senate. Mr. B. would take the years 1822-'3; for he was not simple enough to take the years before the reduction of the army, when he was looking for the lowest expenditure. Four thousand men were disbanded, and had remained disbanded ever since; they were disbanded since he came into the Senate; he would therefore date from that reduction. This would bring him to the years 1822-'3, when you, sir (the Vice-President), was Secretary of War. What was the whole expenditure of the government for each of those years? It stood thus:

1822, $17,676,592 63 1823, 15,314,171 00

"These two sums include every head of expenditure--they include public debt, revolutionary and invalid pensions; three heads of temporary expenditure. The payments on account of the public debt in those two years, were--

In 1822, $7,848,919 12 1823, 5,530,016 41

"Deduct these two sums from the total expenditure of the years to which they refer, and you will have--

For 1822, $9,727,673 41 1823, 9,784,155 59

"The pensions for those years were--

Revolutionary. Invalid. Aggregate.

1822, $1,642,590 94 $305,608 46 $1,947,199 40 1823, 1,449,097 04 331,491 48 1,730,588 52

"Now, deduct these pensions from the years to which they refer, and you will have just about $8,000,000 as the expense of working the machinery of government at the period which I had in my eye. But the pensions have not yet totally ceased; they are much diminished since 1822, 1823, and in a few years must cease. The revolutionary pensioners must now average seventy years of age; their stipends will soon cease. I hold myself well justified, then, in saying, as I did, that the expenditures of the government have nearly doubled in my time. The remark had no reference to administrations. There was nothing comparative in it; nothing intended to put up, or put down, any body. The burdens of the people is the only thing I wish to put down. My service in the Senate has extended under three administrations, and my periods of calculation extend to all three. My opinion now is, that the machinery of this government, after the payment of the public debt, should be worked for ten millions or less, and two millions more for extraordinaries; in all twelve millions; but this is a point for future discussion. My present object is to show a great increase in a short time; and to show that, not to affect individuals, but to show the necessity of practising what we all profess--economy. I am against keeping up a revenue, after the debt and pensions are paid, as large, or nearly as large, as the expenditure was in 1822, 1823, with these items included. I am for throwing down my load, when I get to the end of my journey. I am for throwing off the burden of the debt, when I get to the end of the debt. The burden of the debt is the taxes levied on account of it. I am for abolishing these taxes; and this is the great question upon which parties now go to trial before the American people. One word more, and I am done for the present. The senator for Maryland, to make up a goodly average for 1822, and 1823, adds the expenditure of 1824, which includes, besides sixteen millions and a half for the public debt, and a million and a half for pensions, the sum of five millions for the purchase of Florida. Sir, he must deduct twenty-two millions from that computation; and that deduction will bring his average for those years to agree very closely with my statement."

It was something at the time this inquiry took place to know which was right--General Smith, or myself. Two millions, more or less, per annum in the public expenditures, was then something--a thing to be talked about, and accounted for, among the economical men of that day. It seems to be nothing now, when the increases are many millions per annum--when personal and job legislation have become the frequent practice--when contracts are legislated to adventurers and speculators--when the halls of Congress have come to be considered the proper place to lay the foundations, or to repair the dilapidations of millionary fortunes: and when the public fisc, and the national domain may consider themselves fortunate sometimes in getting off with a loss of two millions in a single operation.

Spotted a typo or a problem in this chapter? Tell us

Chapter LXIII

BANK OF THE UNITED STATES--RECHARTER COMMENCEMENT OF THE PROCEEDINGS.

In the month of December 1831, the "National Republicans" (as the party was then called which afterwards took the name of "whig"), assembled in convention at Baltimore to nominate candidates of their party for the presidential, and vice-presidential election, which was to take place in the autumn of the ensuing year. The nominations were made--Henry Clay of Kentucky, for President; and John Sergeant of Pennsylvania for Vice-President: and the nominations accepted by them respectively. Afterwards, and according to what was usual on such occasions, the convention issued an address to the people of the United States, setting forth the merits of their own, and the demerits of the opposite candidate; and presenting the party issues which were to be tried in the ensuing elections. So far as these issues were political, they were legitimate subjects to place before the people: so far as they were not political, they were illegitimate, and wrongfully dragged into the political arena, to be made subservient to party elevation. Of this character were the topics of the tariff, of internal improvement, the removal of the Cherokee Indians, and the renewal of the United States Bank charter. Of these four subjects, all of them in their nature unconnected with politics, and requiring for their own good to remain so unconnected, I now notice but one--that of the renewal of the charter of the existing national bank;--and which was now presented as a party object, and as an issue in the election, and under all the exaggerated aspects which party tactics consider lawful in the prosecution of their aims. The address said:

"Next to the great measures of policy which protect and encourage domestic industry, the most important question, connected with the economical policy of the country, is that of the bank. This great and beneficial institution, by facilitating exchanges between different parts of the Union, and maintaining a sound, ample, and healthy state of the currency, may be said to supply the body politic, economically viewed, with a continual stream of life-blood, without which it must inevitably languish, and sink into exhaustion. It was first conceived and organized by the powerful mind of Hamilton. After having been temporarily shaken by the honest though groundless scruples of other statesmen, it has been recalled to existence by the general consent of all parties, and with the universal approbation of the people. Under the ablest and most faithful management it has been for many years past pursuing a course of steady and constantly increasing influence. Such is the institution which the President has gone out of his way in several successive messages, without a pretence of necessity or plausible motive, in the first instance six years before his suggestion could with any propriety be acted upon, to denounce to Congress as a sort of nuisance, and consign, as far as his influence extends, to immediate destruction.

"For this denunciation no pretext of any adequate motive is assigned. At a time when the institution is known to all to be in the most efficient and prosperous state--to be doing all that any bank ever did or can do, we are briefly told in ten words, that it has not effected the objects for which it was instituted, and must be abolished. Another institution is recommended as a substitute, which, so far as the description given of it can be understood, would be no better than a machine in the hands of the government for fabricating and issuing paper money without check or responsibility. In his recent message to Congress, the President declares, for the third time, his opinion on these subjects, in the same concise and authoritative style as before, and intimates that he shall consider his re-election as an expression of the opinion of the people that they ought to be acted on. If, therefore, the President be re-elected, it may be considered certain that the bank will be abolished, and the institution which he has recommended, or something like it, substituted in its place.

"Are the people of the United States prepared for this? Are they ready to destroy one of their most valuable establishments to gratify the caprice of a chief magistrate, who reasons, and advises upon a subject, with the details of which he is evidently unacquainted, in direct contradiction to the opinion of his own official counsellors? Are the enterprising, liberal, high-minded, and intelligent merchants of the Union willing to countenance such a measure? Are the cultivators of the West, who find in the Bank of the United States a never-failing source of that capital, which is so essential to their prosperity, and which they can get nowhere else, prepared to lend their aid in drying up the fountain of their own prosperity? Is there any class of the people or section of the Union so lost to every sentiment of common prudence, so regardless of all the principles of republican government, as to place in the hands of the executive department the means of an irresponsible and unlimited issue of paper money--in other words, the means of corruption without check or bounds? If such be, in fact, the wishes of the people, they will act with consistency and propriety in voting for General Jackson, as President of the United States; for, by his re-election, all these disastrous effects will certainly be produced. He is fully and three times over pledged to the people to negative any bill that may be passed for re-chartering the bank, and there is little doubt that the additional influence which he would acquire by a re-election, would be employed to carry through Congress the extraordinary substitute which he has repeatedly proposed."

Thus the bank question was fully presented as an issue in the election by that part of its friends which classed politically against President Jackson; but it had also democratic friends, without whose aid the recharter could not be got through Congress; and the result produced which was contemplated with hope and pleasure--responsibility of a veto thrown upon the President. The consent of this wing was necessary: and it was obtained as related in a previous chapter, through the instrumentality of a caucus--that contrivance of modern invention by which a few govern many--by which the many are not only led by the few, but subjugated by them, and turned against themselves and after having performed at the caucus as a figurante (to make up a majority), become real actors in doing what they condemn. The two wings of the bank friends were brought together by this machinery, as already related in chapter lxi.; and operations for the new charter immediately commenced, in conformity to the decision. On the 9th day of January the memorial of the President, Directors & Company of the Bank was presented in each House--by Mr. Dallas in the Senate, and Mr. McDuffie in the House of Representatives; and while condemning the time of bringing forward the question of the recharter, Mr. Dallas, in further intimation of his previously signified opinion of its then dangerous introduction, said: "He became a willing, as he was virtually an instructed agent, in promoting to the extent of his humble ability, an object which, however dangerously timed its introduction might seem, was in itself as he conceived, entitled to every consideration and favor." Mr. Dallas then moved for a select committee to revise, consider, and report upon the memorial--which motion was granted, and Messrs. Dallas, Webster, Ewing of Ohio, Hayne of South Carolina, and Johnston of Louisiana, were appointed the committee--elected for that purpose by a vote of the Senate--and all except one favorable to the recharter.

In the House of Representatives Mr. McDuffie did not ask for the same reference--a select committee--but to the standing committee of Ways and Means, of which he was chairman, and which was mainly composed of the same members as at the previous session when it reported so elaborately in favor of the bank. The reason of this difference on the point of the reference was understood to be this: that in the Senate the committee being elective, and the majority of the body favorable to the bank, a favorable committee was certain to be had on ballot--while in the House the appointment of the committee being in the hands of the Speaker (Mr. Stevenson), and he adverse to the institution, the same favorable result could not be safely counted on; and, therefore, the select committee was avoided, and the one known to be favorable was preferred. This led to an adverse motion to refer to a select committee--in support of which motion Mr. Wayne of Georgia, since appointed one of the justices of the Supreme Court, said:

"That he had on a former occasion expressed his objection to the reference of this subject to the Committee of Ways and Means; and he should not trouble the House by repeating now what he had advanced at the commencement of the session in favor of the appointment of a select committee; but he called upon gentlemen to consider what was the attitude of the Committee of Ways and Means in reference to the bank question, and to compare it with the attitude in which that question had been presented to the House by the President of the United States; and he would ask, whether it was not manifestly proper to submit the memorial to a committee entirely uncommitted upon the subject. But this was not the object for which he had risen; the present question had not come upon him unexpectedly; he had been aware before he entered the House that a memorial of this kind would this morning be presented; and when he looked back upon the occurrences of the last four weeks, and remembered what had taken place at a late convention in Baltimore, and the motives which had been avowed for bringing forward the subject at this time, he must say that gentlemen ought not to permit a petition of this kind to receive the attention of the House. Who could doubt that the presentation of that memorial was in fact a party measure, intended to have an important operation on persons occupying the highest offices of the government? If, however, it should be considered necessary to enter upon the subject at the present time, Mr. Wayne said he was prepared to meet it. But when gentlemen saw distinctly before their eyes the motive of such a proceeding, he hoped that, notwithstanding there might be a majority in the House in favor of the bank, gentlemen would not lend themselves to that kind of action. Could it be necessary to take up the question of rechartering the bank at the present session? Gentlemen all knew that four years must pass before its charter would expire, and that Congress had power to extend the period, if further time was necessary to wind up its affairs. It was known that other subjects of an exciting character must come up during the present session and could there be any necessity or propriety in throwing additional matter into the House, calculated to raise that excitement yet higher?"

Mr. McDuffie absolved himself from all connection with the Baltimore national republican convention, and claimed like absolution for the directory of the bank; and intimated that a caucus consultation to which democratic members were party, had led to the presentation of the memorial at this time;--an intimation entirely true, only it should have comprehended all the friends of the bank of both political parties. A running debate took place on these motions, in which many members engaged. Admitting that the parliamentary law required a friendly committee for the application, it was yet urged that that committee should be a select one, charged with the single subject, and with leisure to make investigations;--which leisure the Committee of Ways did not possess--and could merely report as formerly, and without giving any additional information to the House. Mr. Archer of Virginia, said:

"As regarded the disposal of the memorial, it appeared clear to him that a select committee would be the proper one. This had been the disposal adopted with all former memorials. Why vary the mode now? The subject was of a magnitude to entitle it to a special committee. As regarded the Committee of Ways and Means, with its important functions, were not its hands to be regarded as too full for the great attention which this matter must demand? It was to be remarked, too, that this committee, at a former session, with little variety in its composition, had, in the most formal manner, expressed its opinion on the great question involved. We ought not, as had been said, to put the memorial to a nurse which would strangle it. Neither would it be proper to send it to an inquest in which its fate had been prejudged. Let it go to either the Committee of Ways and Means, or a select committee; the chairman of that committee would stand as he ought, in the same relation to it. If the last disposal were adopted, too, the majority of the committee would consist, under the usage in that respect, of friends of the measure. The recommendation of this mode was, that it would present the nearest approach to equality in the contest, of which the case admitted.

"Mr. Mitchell, of South Carolina, said that he concurred entirely in the views of his friend from Georgia [Mr. Wayne]. He did not think that the bank question ought to be taken up at all this session; but if it were, it ought most unquestionably to be referred to a select committee. He saw no reason, however, for its being referred at all. The member from South Carolina [Mr. McDuffie] tells us, said Mr. M., that it involves the vast amount of fifty millions of dollars; that this is dispersed to every class of people in our widely extended country; and if the question of rechartering were not decided now, it would hazard these great and complicated interests. Mr. M. said he attached no importance to this argument. The stockholders who met lately at Philadelphia thought differently, for, by a solemn resolution, they left it discretionary with the president of the bank to propose the question to Congress when he saw fit. If they had thought that a postponement would have endangered their interests, would they not have said so? This fact does away the argument of the member from South Carolina. The bank question was decided by the strongest party question which could be put to this or any House. It has been twice discussed within a few years. It was rejected once in the Senate by the vote of the Vice-President, and it afterwards passed this House with a majority of two. It would divide the whole country, and excite on that floor, feelings of the most exasperated bitterness. Not a party question? Does not the member from South Carolina [Mr. McDuffie] remember that this question divided the country into federalists and republicans? It was a great constitutional question, and he hoped all those who thought with him, would rally against it in all their strength. But why refer it to the Committee of Ways and Means? It was committed before to a select committee on national currency. If this question was merely financial, as whether we should sell our stock, and, if we did, whether we should sell it to the bank, he would not object to its being referred to the Committee of Ways and Means. But it was not a question of revenue. It was one of policy and the constitution--one of vast magnitude and of the greatest complexity--requiring a committee of the most distinguished abilities on that floor. It was a party question in reference to men and things out of doors. Those who deny this, must be blind to every thing around them--we hear it every where--we see it in all which we read. Sir, we have now on hand a topic which must engross every thought and feeling--a topic which perhaps involves the destinies of this nation--a topic of such magnitude as to occupy us the remainder of the session; I mean the tariff. I hope, therefore, this memorial will be laid on the table, and, if not, that it will be referred to a select committee."

Mr. Charles Johnston, of Virginia, said:

"The bank has been of late distinctly and repeatedly charged with using its funds, and the funds of the people of these States, in operating upon and controlling public opinion. He did not mean to express any opinion as to the truth or falsehood of this accusation, but it was of sufficient consequence to demand an accurate inquiry. The bank was further charged with violating its charter, in the issue of a great number of small drafts to a large amount, and payable, in the language of the honorable member from New-York [Mr. Cambreleng], "nowhere;" this charge, also, deserved inquiry. There were other charges of maladministration which equally deserved inquiry; and it was his [Mr. J.'s] intention, at a future day, unless some other gentleman more versed in the business of the House anticipated him, to press these inquiries by a series of instructions to the committee intrusted with the subject. Mr. J. urged as an objection to referring this inquiry to the Committee of Ways and Means, that so much of their time would be occupied with the regular and important business connected with the fiscal operations of the government, that they could not spare labor enough to accomplish the minute investigations wanted at their hands. We had been further told that all the members of that committee were friendly to the project of rechartering the bank, and the honorable gentleman [Mr. Mercer] had relied upon the fact, as a fair exponent of public opinion in favor of the bank. He [Mr. J.] added, that although he could by no means assent to the force of this remark, yet that it furnished strong reason for those who wished a close scrutiny of the administration of the bank, to wish some gentlemen placed on the committee of inquiry, who would be actuated by the zeal of fair opposition to the bank; he conceded that a majority of the committee should be composed of its friends. He concluded, by hoping that the memorial would be referred to a select committee."

Finally the vote was taken, and the memorial referred to the Committee of Ways and Means, but by a slender majority--100 against 90--and 24 members absent, or not voting. The members of the committee were: Messrs. McDuffie, of South Carolina; Verplanck of New-York; Ingersoll, of Connecticut; Gilmore, of Pennsylvania; Mark Alexander, of Virginia; Wilde, of Georgia; and Gaither, of Kentucky.

Spotted a typo or a problem in this chapter? Tell us

Chapter LXIV

BANK OF THE UNITED STATES--COMMITTEE OF INVESTIGATION ORDERED.

SEEING the state of parties in Congress, and the tactics of the bank--that there was a majority in each House for the institution, and no intention to lose time in arguing for it--our course of action became obvious, which was--to attack incessantly, assail at all points, display the evil of the institution, rouse the people--and prepare them to sustain the veto. It was seen to be the policy of the bank leaders to carry the charter first, and quietly through the Senate; and afterwards, in the same way in the House. We determined to have a contest in both places; and to force the bank into defences which would engage it in a general combat, and lay it open to side-blow, as well as direct attacks. With this view a great many amendments and inquiries were prepared to be offered in the Senate, all of them proper, or plausible, recommendable in themselves, and supported by acceptable reasons; which the friends of the bank must either answer, or reject without answer; and so incur odium. In the House it was determined to make a move, which, whether resisted or admitted by the bank majority, would be certain to have an effect against the institution--namely, an investigation by a committee of the House, as provided for in the charter. If the investigation was denied, it would be guilt shrinking from detection; if admitted, it was well known that misconduct would he found. I conceived this movement, and had charge of its direction. I preferred the House for the theatre of investigation, as most appropriate, being the grand inquest of the nation; and, besides, wished a contest to be going on there while the Senate was engaged in passing the charter; and the right to raise the committee was complete, in either House. Besides the right reserved in the charter, there was a natural right, when the corporation was asked for a renewed lease, to inquire how it had acted under the previous one. I got Mr. Clayton, a new member from Georgia (who had written a pamphlet against the bank in his own State), to take charge of the movement; and gave him a memorandum of seven alleged breaches of the charter, and fifteen instances of imputed misconduct, to inquire into, if he got his committee; or to allege on the floor, if he encountered resistance.

On Thursday, the 23d of February, Mr. Clayton made his motion--"That a select committee be appointed to examine into the affairs of the Bank of the United States, with power to send for persons and papers, and to report the result of their inquiries to the House." This motion was objected to, and its consideration postponed until the ensuing Monday. Called up on that day, an attempt was made to repulse it from the consideration of the House. Mr. Watmough, a representative from Pennsylvania, and from the city, a friend to the bank, and from his locality and friendship supposed to be familiar with its wishes, raised the question of consideration--that is, called on the House to decide whether they would consider Mr. Clayton's motion; a question which is only raised under the parliamentary law where the motion is too frivolous, or flagrantly improper, to receive the attention of the House. It was a false move on the part of the institution; and the more so as it seemed to be the result of deliberation, and came from its immediate representative. Mr. Polk, of Tennessee, saw the advantage presented; and as the question of consideration was not debatable, he demanded, as the only mode of holding the movement to its responsibility, the yeas and nays on Mr. Watmough's question. But it went off on a different point--a point of order--the question of consideration not lying after the House has taken action on the subject; and in this case that had been done--very little action to be sure--only postponing the consideration from one day to another; but enough to satisfy the rule; and so the motion of Mr. Watmough was disallowed; and the question of consideration let in. Another movement was then made to cut off discussion, and get rid of the resolution, by a motion to lay it on the table, also made by a friend of the bank [Mr. Lewis Williams, of North Carolina]. This motion was withdrawn at the instance of Mr. McDuffie, who began to see the effect of these motions to suppress, not only investigation, but congressional discussion; and, besides, Mr. McDuffie was a bold man, and an able debater, and had examined the subject, and reported in favor of the bank, and fully believed in its purity; and was, therefore, the less averse to debate. But resistance to investigation was continued by others, and was severely animadverted upon by several speakers--among others, by Mr. Polk, of Tennessee, who said:

"The bank asks a renewal of its charter; and ought its friends to object to the inquiry? He must say that he had been not a little surprised at the unexpected resistance which had been offered to the resolution under consideration, by the friends and admirers of this institution--by those who, no doubt, sincerely believed its continued existence for another term of twenty years to be essential to the prosperity of the country. He repeated his surprise that its friends should be found shrinking from the investigation proposed. He would not say that such resistance afforded any fair grounds of inference that there might be something "rotten in the state of Denmark." He would not say this; for he did not feel himself authorized to do so; but was it not perceived that such an inference might, and probably would, be drawn by the public? On what ground was the inquiry opposed? Was it that it was improper? Was it that it was unusual? The charter of the bank itself authorized a committee of either House of Congress to examine its books, and report upon its condition, whenever either House may choose to institute an examination. A committee of this House, upon a former occasion, did make such an examination, and he would refer to their report before he sat down. Upon the presentation of the bank memorial to the other branch of the legislature, a select committee had been invested with power to send for persons and papers, if they chose to do so. When the same memorial was presented to that House, what had been the course pursued by the friends of the bank? A motion to refer it to a select committee was opposed. It was committed to their favorite Committee of Ways and Means. He meant no disrespect to that committee, when he said that the question of rechartering the bank was known to have been prejudged by that committee. When the President of the United States brought the subject of the bank to the notice of Congress in December, 1829, a select committee was refused by the friends of the bank, and that portion of the message was referred to the Committee of Ways and Means. Precisely the same thing occurred at the commencement of the last and at the present session of Congress, in the reference which was made of that part of the messages of the President upon the subject of the bank. The friends of this institution have been careful always to commit it to the same committee, a committee whose opinions were known. Upon the occasion first referred to, that committee made a report favorable to the bank, which was sent forth to the public,--not a report of facts, not a report founded upon an examination into the affairs of the bank. At the present session, we were modestly asked to extend this bank monopoly for twenty years, without any such examination having taken place. The committee had reported a bill to that effect, but had given us no facts in relation to the present condition of the bank. They had not even deemed it necessary to ask to be invested with power to examine either into its present condition, or into the manner in which its affairs have been conducted.

"He would now call the attention of the House to the examination of the bank, made by a committee of this House in the year 1819, and under the order of the House. He then held the report of that committee in his hand. That committee visited the bank at Philadelphia; they examined its books, and scrutinized its conduct. They examined on oath the president, a part of the directors and officers of the bank. And what was the result? They discovered many and flagrant abuses. They found that the charter had been violated in divers particulars, and they so reported to this House. He would not detain the House, however, with the details of that document. Gentlemen could refer to it, and satisfy themselves. It contained much valuable information, as bearing upon the proposition now before the House. It was sufficient to say that at that period, within three years after the bank had gone into existence, it was upon the very verge of bankruptcy. This the gentleman from South Carolina would not deny. The report of the committee to which he had alluded authorized him to say that there had been gross mismanagement, he would not use any stronger term, and in the opinion of that committee (an opinion never reversed by Congress) a palpable violation of the charter. Now sir, this was the condition of the bank in 1819. The indulgence of Congress induced them not to revoke the charter. The bank had gone on in its operations. Since that period no investigation or examination had taken place. All we knew of its doings, since that period, was from the ex parte reports of its own officers. These may all be correct, but, if they be so, it could do no harm to ascertain the fact."

Mr. Clayton then justified his motion for the committee, first upon the provisions of the charter (article 23) which gave to either House of Congress the right at all times to appoint a committee to inspect the books, and to examine in to the proceedings of the bank; and to report whether the provisions of the charter had been violated; and be treated as a revolt against this provision of the charter, as well as a sign of guilt, this resistance to an absolute right on the part of Congress, and most proper to be exercised when the institution was soliciting the continuation of its privileges; and which right had been exercised by the House in 1819, when its committee found various violations of the charter, and proposed a scire facias to vacate it:--which was only refused by Congress, not for the sake of the bank, but for the community--whose distresses the closing of the bank might aggravate. Next, he justified his motion on the ground of misconduct in the bank in seven instances of violated charter, involving forfeiture; and fifteen instances of abuse, which required correction, though not amounting to forfeiture of the charter. All these he read to the House, one by one, from a narrow slip of paper, which he continued rolling round his finger all the time. The memorandum was mine--in my handwriting--given to him to copy, and amplify, as they were brief memoranda. He had not copied them; and having to justify suddenly, he used the slip I had given him--rolling it on his finger, as on a cylinder, to prevent my handwriting from being seen: so he afterwards told me himself. The reading of these twenty-two heads of accusation, like so many counts in an indictment, sprung the friends of the bank to their feet--and its foes also--each finding in it something to rouse them--one to the defence, the other to the attack. The accusatory list was as follows:

"FIRST: Violations of charter amounting to forfeiture:

"1. The issue of seven millions, and more, of branch bank orders as a currency.

"2. Usury on broken bank notes in Ohio and Kentucky: nine hundred thousand dollars in Ohio, and nearly as much in Kentucky. See 2 Peters' Reports, p. 527, as to the nature of the case.

"3. Domestic bills of exchange, disguised loans to take more than at the rate of six per cent. Sixteen millions of these bills for December last. See monthly statements.

"4. Non-user of the charter. In this, that from 1819 to 1826, a period of seven years, the South and West branches issued no currency of any kind. See the doctrine on non-user of charter and duty of corporations to act up to the end of their institution, and forfeiture for neglect.

"5. Building houses to rent. See limitation in their charter on the right to hold real property.

"6. In the capital stock, not having due proportion of coin.

"7. Foreigners voting for directors, through their trustees.

"SECOND: Abuses worthy of inquiry, not amounting to forfeiture, but going, if true, clearly to show the inexpediency of renewing the charter.

"1. Not cashing its own notes, or receiving in deposit at each branch, and at the parent bank, the notes of each other. By reason of this practice, notes of the mother bank are at a discount at many, if not all, of her branches, and completely negatives the assertion of 'sound and uniform currency.'

"2. Making a difference in receiving notes from the federal government and the citizens of the States. This is admitted as to all notes above five dollars.

"3. Making a difference between members of Congress and the citizens generally, in both granting loans and selling bills of exchange. It is believed it can be made to appear that members can obtain bills of exchange without, citizens with a premium; the first give nominal endorsers, the other must give two sufficient resident endorsers.

"4. The undue accumulation of proxies in the hands of a few to control the election for directors.

"5. A strong suspicion of secret understanding between the bank and brokers to job in stocks, contrary to the charter. For example, to buy up three per cent. stock at this day; and force the government to pay at par for that stock; and whether the government deposits may not be used to enhance its own debts.

"6. Subsidies and loans, directly or indirectly, to printers, editors, and lawyers, for purposes other than the regular business of the bank.

"7. Distinction in favor of merchants in selling bills of exchange.

"8. Practices upon local banks and debtors to make them petition Congress for a renewal of its charter, and thus impose upon Congress by false clamor.

"9. The actual management of the bank, whether safely and prudently conducted. See monthly statements to the contrary.

"10. The actual condition of the bank, her debts and credits; how much she has increased debts and diminished her means to pay in the last year; how much she has increased her credits and multiplied her debtors, since the President's message in 1829, without ability to take up the notes she has issued, and pay her deposits.

"11. Excessive issues, all on public deposits.

"12. Whether the account of the bank's prosperity be real or delusive.

"13. The amount of gold and silver coin and bullion sent from Western and Southern branches of the parent bank since its establishment in 1817. The amount is supposed to be fifteen or twenty millions, and, with bank interest on bank debts, constitutes a system of the most intolerable oppression of the South and West. The gold and silver of the South and West have been drawn to the mother bank, mostly by the agency of that unlawful currency created by branch bank orders, as will be made fully to appear.

"14. The establishment of agencies in different States, under the direction and management of one person only, to deal in bills of exchange, and to transact other business properly belonging to branch banks, contrary to the charter.

"15. Giving authority to State banks to discount their bills without authority from the Secretary of the Treasury."

Upon the reading of these charges a heated and prolonged discussion took place, in which more than thirty members engaged (and about an equal number on each side); in which the friends of the bank lost so much ground in the public estimation, in making direct opposition to investigation, that it became necessary to give up that species of opposition--declare in favor of examination--but so conducted as to be nugatory, and worse than useless. One proposition was to have the investigation made by the Committee of Ways and Means--a proposition which involved many departures from parliamentary law--from propriety--and from the respect which the bank owed to itself, if it was innocent. By all parliamentary law such a committee must be composed of members friendly to the inquiry--hearty in the cause--and the mover always to be its chairman: here, on the contrary, the mover was to be excluded: the very champion of the Bank defence was to be the investigating chairman; and the committee to whom it was to go, was the same that had just reported so warmly for the Bank. But this proposition had so bad a look that the chairman of the Committee of Ways and Means (Mr. McDuffie) objected to it himself, utterly refusing to take the office of prosecutor against an institution of which he was the public defender. Propositions were then made to have the committee appointed by ballot, so as to take the appointment of the committee out of the hands of the Speaker (who, following the parliamentary rule, would select a majority of members favorable to inquiry); and in the vote by ballot, the bank having a majority in the House, could reverse the parliamentary rule, and give to the institution a committee to shield, instead of to probe it. Unbecoming, and even suspicious to the institution itself as this proposition was, it came within a tie vote of passing, and was only lost by the casting vote of the Speaker. Investigation of some kind, and by a select committee, becoming then inevitable, the only thing that could be done in favor of the bank was to restrict its scope; and this was done both as to time and matter; and also as to the part of the institution to be examined. Mr. Adams introduced a resolution to limit the inquiry to the operations of the mother bank, thereby skipping the twenty-seven branches, though some of them were nearer than the parent bank; also limiting the points of inquiry to breaches of the charter, so as to cut off the abuses; also limiting the time to a short day (the 21st of April)--March then being far advanced; so as to subject full investigation to be baffled for the want of time. The reason given for these restrictions was to bring the investigation within the compass of the session--so as to insure action on the application before the adjournment of Congress--thereby openly admitting its connection with the presidential election. On seeing his proposed inquiry thus restricted, Mr. Clayton thus gave vent to his feelings:

"I hope I may be permitted to take a parting leave of my resolution, as I very plainly perceive that it is going the way of all flesh. I discover the bank has a complying majority at present in this House, and at this late hour of the night are determined to carry things in their own way; but, sir, I view with astonishment the conduct of that majority. When a speaker rises in favor of the bank, he is listened to with great attention; but when one opposed to it attempts to address the House, such is the intentional noise and confusion, he cannot be heard; and, sir, the gentleman who last spoke but one in favor of an inquiry, had to take his seat in a scene little short of a riot. I do not understand such conduct. When I introduced my resolution, I predicated it upon the presumption that every thing in this House would, when respectfully presented, receive a respectful consideration, and would be treated precisely as all other questions similarly situated are treated. I expected the same courtesy that other gentlemen received in the propositions submitted by them, that it would go to a committee appointed in the usual form, and that they would have the usual time to make their report. I believed, for I had no right to believe otherwise, that all committees of this House were honest, and that they had too much respect for themselves, as well as for the House, to trifle with any matter confided to their investigation. Believing this, I did expect my resolution would be submitted in the accustomed way; and if this House had thought proper to trust me, in part, with the examination of the subject to which it refers, I would have proceeded to the business in good faith, and reported as early as was practicable with the important interests at stake. It has been opposed in every shape; vote upon vote has been taken upon it, all evidently tending to evade inquiry; and now it is determined to compel the committee to report in a limited time, a thing unheard of before in this House, and our inquiries are to be confined entirely to the mother bank; whereas her branches, at which more than half the frauds and oppressions complained of have been committed, are to go unexamined, and we are to be limited to breaches of the charter when the abuses charged are numerous and flagrant, and equally injurious to the community. We are only to examine the books of the parent bank, the greatest part of which may be accidentally from home, at some of the branches. If the bank can reconcile it to herself to meet no other kind of investigation but this, she is welcome to all the advantages which such an insincere and shuffling course is calculated to confer; the people of this country are too intelligent not to understand exactly her object."

Among the abuses cut off from examinations by these restrictions, were two modes of extorting double and treble compensation for the use of money, one by turning a loan note into a bill of exchange, and the other by forcing the borrower to take his money upon a domestic bill instead of on a note--both systematically practised upon in the West, and converting nearly all the Western loans into enormously usurious transactions. Mr. Clayton gave the following description of the first of these modes of extorting usury:

"I will now make a fuller statement; and I think I am authorized to say that there are gentlemen in this House from the West, and under my eye at present, who will confirm every word I say. A person has a note in one of the Western branch banks, and if the bank determines to extend no further credit, its custom is, when it sends out the usual notice of the time the note falls due, to write across the notice, in red ink, these three fatal words--well understood in that country--'Payment is expected.' This notice, thus rubricated, becomes a death-warrant to the credit of that customer, unless he can raise the wind, as it is called, to pay it off, or can discount a domestic bill of exchange. This last is done in one of two ways. If he has a factor in New Orleans who is in the habit of receiving and selling his produce, he draws upon him to pay it off at maturity. The bank charges two per centum for two months, the factor two and a half, and thus, if the draft is at sixty days, he pays at the rate of twenty-seven per centum. If, however, he has no factor, he is obliged to get some friend who has one to make the arrangement to get his draft accepted. For this accommodation he pays his friend one and a half per cent., besides the two per cent. to the bank, and the two and a half per cent. to the acceptor; making, in this mode of arrangement, thirty-six per cent. which he pays before he can get out of the clutches of the bank for that time, twelve per cent. of which, in either case, goes to the bank; and so little conscience have they, in order to make this, they will subject a poor and unfortunate debtor to the other enormous burdens, and consequently to absolute beggary. For it must be obvious to every one that such a per cent. for money, under the melancholy depreciation of produce every where in the South and West, will soon wind up the affairs of such a borrower. No people under the heavens can bear it; and unless a stop is put to it, in some way or other, I predict the Western people will be in the most deplorable situation it is possible to conceive. There is another great hardship to which this debtor is liable, if he should not be able to furnish the produce; or, which is sometimes the case, if it is sacrificed in the sale of it at the time the draft becomes due, whereby it is protested for want of funds, it returns upon him with the additional cost of ten per cent. for non-payment. Now, sir, that is what is meant by domestic bills of exchange, disguised as loans, to take more than six per cent.; for, mark, Mr. Speaker, the bank does not purchase a bill of exchange by paying out cash for it, and receiving the usual rate of exchange, which varies from one-quarter to one per cent.; but it merely delivers up the poor debtor's note which was previously in bank, and, what is worse, just as well secured as the domestic bill of exchange which they thus extort from him in lieu thereof. And while they are thus exacting this per cent. from him, they are discounting bills for others not in debt to them at the usual premium of one per cent. The whole scene seems to present the picture of a helpless sufferer in the hands of a ruffian, who claims the merit of charity for discharging his victim alive, after having torn away half his limbs from his body."

The second mode was to make the loan take the form of a domestic bill from the beginning; and this soon came to be the most general practice. The borrowers finding that their notes were to be metamorphosed into bills payable in a distant city, readily fell into the more convenient mode of giving a bill in the first instance payable in some village hard by, where they could go to redeem it without giving commissions to intermediate agents in the shape of endorsers and brokers. The profit to the bank in this operation was to get six per centum interest, and two per cent. exchange; which, on a sixty days' bill, was twelve per cent. per annum; and, added to the interest, eighteen per cent. per annum; with the addition of ten per centum damages if the bill was protested; and of this character were the mass of the loans in the West--a most scandalous abuse, but cut off, with a multitude of others, from investigation from the restrictions placed upon the powers of the committee.

The supporters of the institution carried their point in the House, and had the investigation in their own way; but with the country it was different. The bank stood condemned upon its own conduct, and badly crippled by the attacks upon her. More than a dozen speakers assailed her: Clayton, Wayne, Foster of Georgia; J. M. Patton, Archer, and Mark Alexander of Virginia; James K. Polk of Tennessee; Cambreleng, Beardsley, Hoffman and Angel of New-York; Mitchell and Blair of South Carolina; Carson of North Carolina; Leavitt of Ohio. The speakers on the other side were: McDuffie and Drayton of South Carolina; Denny, Crawford, Coulter, Watmough, of Pennsylvania; Daniel of Kentucky; Jenifer of Maryland; Huntington of Connecticut; Root and Collins of New-York; Evans of Maine; Mercer of Virginia; Wilde of Georgia. Pretty equally matched both in numbers and ability; but the difference between attack and defence--between bold accusation and shrinking palliation--the conduct of the bank friends, first in resisting all investigation, then in trying to put it into the hands of friends, then restricting the examination, and the noise and confusion with which many of the anti-bank speeches were saluted--gave to the assailants the appearance of right, and the tone of victory throughout the contest; and created a strong suspicion against the bank. Certainly its conduct was injudicious, except upon the hypothesis of a guilt, the worst suspicion of which would be preferable to open detection and such, eventually, was found to be the fact. In justice to Mr. McDuffie, the leading advocate of the bank, it must be remembered that the attempts to stifle, or evade inquiry, did not come from him but from the immediate representative of the bank neighborhood--that he twice discountenanced and stopped such attempts, requesting them to be withdrawn; and no doubt all the defenders of the bank at the time believed in its integrity and utility, and only followed the lead of its immediate friends in the course which they pursued. For myself I became convinced that the bank was insolvent, as well as criminal; and that, to her, examination was death; and therefore she could not face it.

The committee appointed were: Messrs. Clayton, Richard M. Johnson of Kentucky, Francis Thomas of Maryland, and Mr. Cambreleng of New-York, opposed to the recharter of the Bank; Messrs. McDuffie, John Quincy Adams, and Watmough, in favor of it. The committee was composed according to the parliamentary rule--the majority in favor of the object--but one of them (Colonel Johnson of Kentucky), was disqualified by his charitable and indulgent disposition for the invidious task of criminal inquisition; and who frankly told the House, after he returned, that he had never looked at a bank-book, or asked a question while he was at Philadelphia; and, Mr. Adams in invalidating the report of the majority against the bank, disputed the reality of the majority, saying that the good nature of Colonel Johnson had merely licensed it. On the other hand, the committee was as favorably composed for the bank--Mr. Adams and Mr. McDuffie both able writers and speakers, of national reputation, investigating minds, ardent temperaments, firm believers in the integrity and usefulness of the corporation; and of character and position to be friendly to the institution without the imputation of an undue motive. Mr. Watmough was a new member, but acceptable to the bank as its immediate representative, as the member that had made the motions to baffle investigation; and as being from his personal as well as political and social relations, in the category to form, if necessary, its channel of confidential communication with the committee.

The committee made three reports--one by the majority, one by the minority, and one by Mr. Adams alone. The first was a severe recrimination of the bank on many points--usury, issuing branch bank orders as a currency, selling coin, selling stock obtained from government under special acts of Congress, donations for roads and canals, building houses to rent or sell, loans unduly made to editors, brokers, and members of Congress. The adversary reports were a defence of the bank on all these points, and the highest encomiums upon the excellence of its management, and the universality of its utility; but too much in the spirit of the advocate to retain the character of legislative reports--which admit of nothing but facts stated, inductions drawn, and opinions expressed. Both, or rather all three sets of reports, were received as veracious, and lauded as victorious, by the respective parties which they favored; and quoted, as settling for ever the bank question, each way. But, alas, for the effect of the progress of events! In a few brief years all this attack and defence--all this elaboration of accusation, and refinement of vindication--all this zeal and animosity, for and against the bank--the whole contest--was eclipsed and superseded by the actualities of the times the majority report, as being behind the facts: the minority, as resting upon vanished illusions. And the great bank itself, antagonist of Jackson, called imperial by its friends, and actually constituting a power in the State--prostrate in dust and ashes--and invoking from the community, through the mouth of the greatest of its advocates (Mr. Webster), the oblivion and amnesty of an "obsolete idea."

It is not the design of this View to explore these reports for the names of persons implicated (some perhaps unjustly), in the criminating statements of the majority. The object proposed in this work does not require that interference with individuals. The conduct of the institution is the point of inquiry; and in that conduct will be found the warning voice against the dangers and abuses of such an establishment in all time to come.

Spotted a typo or a problem in this chapter? Tell us

Chapter LXV

THE THREE PER CENT. DEBT, AND LOSS IN NOT PAYING IT WHEN THE RATE WAS LOW, AND THE MONEY IN THE BANK OF THE UNITED STATES WITHOUT INTEREST.

There was a part of the revolutionary debt, incurred by the States and assumed by Congress, amounting to thirteen and a quarter millions of dollars, on which an interest of only three per centum was allowed. Of course, the stock of this debt could be but little over fifty cents in the dollar in a country where legal interest was six per centum, and actual interest often more. In 1817, when the Bank of the United States went into operation, the price of that stock was sixty-four per centum--the money was in bank, more than enough to pay it--a gratuitous deposit, bringing no interest--and which was contained in her vaults--her situation soon requiring the aid of the federal government to enable her to keep her doors open. I had submitted a resolve early in my term of service to have this stock purchased at its market value; and for that purpose to enlarge the power of the commissioners of the sinking fund, then limited to a price a little below the current rate: a motion which was resisted and defeated by the friends of the bank. I then moved a resolve that the bank pay interest on the deposits: which was opposed and defeated in like manner. Eventually, and when the rest of the public debt should be paid off, and the payment of these thirteen and a quarter millions would become obligatory under a policy which eschewed all debt--a consummation then rapidly approaching, under General Jackson's administration--it was clear that the treasury would pay one hundred cents on the dollar on what could be then purchased for sixty-odd, losing in the mean time the interest on the money with which it could be paid. It made a case against the bank, which it felt itself bound to answer, and did so through senator Johnson, of Louisiana: who showed that the bank paid the debt which the commissioners of the sinking fund required. This was true; but it was not the point in the case. The point was that the money was kept in deposit to sustain the bank, and the enlargement of the powers of the commissioners resisted to prevent them from purchasing this stock at a low rate, in view of its rise to par: which soon took place; and made palpable the loss to the United States. At the time of the solicited renewal of the charter, this non-payment of the three per cents was brought up as an instance of loss incurred on account of the bank; and gave rise to the defence from Mr. Johnson; to which I replied:

"Mr. Benton had not intended, he said, to say a word in relation to this question, nor should he now rise to speak upon it, but from what had fallen from the senator from New Jersey. That gentleman had gone from the resolution to the bank, and from the bank he had gone to statements respecting his resolutions on alum salt, which were erroneous. Day by day, memorials were poured in upon us by command of the bank, all representing, in the same terms, the necessity of renewing its charter. These memorials, the tone of which, and the time of their presentation, showed their common origin, were daily ordered to be printed. These papers, forming a larger mass than we ever had on our tables before, and all singing, to the same tune, the praises of the bank, were ordered to be printed without hesitation. The report which he had moved to have printed for the benefit of the farmers, was struck at by the senator of New Jersey. In the first place, the senator was in error as to the cost of printing the report. He had stated it to be one thousand nine hundred dollars, whereas it was only one thousand one hundred dollars. A few days ago, two thousand copies of a report of the British House of Commons on the subject of railroads was ordered to be printed. Following the language of that resolution, he had moved the printing of another report of that body, which would interest a thousand of our citizens, where that report would interest one. There was not a farmer in America who would not deem it a treasure. It covered the whole saline kingdom; and those unacquainted with its nature had no more idea of it than a blind man had of the solar rays. It was of the highest value to the farmer and the grazier. It showed the effect of the mineral kingdom upon the animal kingdom; and its views were the results of the wisdom, experience, and first talents of Great Britain. The assertion of the senator, that the bank aided in producing a sound currency, he would disprove by facts and dates. In 1817 the bank went into operation. In three or four years after, forty-four banks were chartered in Kentucky, and forty in Ohio; and the United States Bank, so far from being able to put them down, was on the verge of bankruptcy. With the use of eight millions of public money, it was hardly able, from day to day to sustain itself. Eleven millions of dollars, as he could demonstrate, the people had lost by maintaining the bank during this crisis. But for a waggon load of specie from the mint, as Mr. Cheves informs us, it would have become bankrupt. In addition to this, the use of government deposits, to the extent of eight millions, was necessary to sustain it; and the country lost eleven millions by the diversion of those deposits to this purpose. Congress authorized the purchase of the thirteen millions of three per cents,--at that time, they could have been purchased at sixty-five cents, now they were at ninety-six per cent. This was one item of the amount lost, and the other was the interest on the stock from that time to the present, amounting to six millions more. It was shown by Mr. Cheves that the United States Bank owed its existence to the local banks--to the indulgence and forbearance of the banks of Philadelphia and Boston, notwithstanding its receipt of the silver from Ohio and Kentucky, which drained that country, destroyed its local banks, and threw down the value of every description of its property. The United States Bank currency was called by the senator the poor man's friend. The orders on the branches--these drafts issued in Dan and made payable in Beersheba--had their origin with a Scotchman; and, when their character was discovered, they were stopped as oppressive to the poor; and this bank, which was cried up as the poor man's friend, issued those same orders, in paper so similar to that of the bank notes, that the people could not readily discern the difference between them. It was thought that the people might mistake the signature of the little cashier and the little president for the great cashier and the great president. The stockholders were foreigners, to a great extent--they were lords and ladies--reverend clergymen and military officers. The widows, in whose behalf our sympathy was required, were countess dowagers, and the Barings, some of whom owned more of the stock than was possessed in sixteen States of this Union."

Spotted a typo or a problem in this chapter? Tell us

Chapter LXVI

BANK OF THE UNITED STATES--BILL FOR THE RECHARTER REPORTED IN THE SENATE--AND PASSED THAT BODY.

The first bank of the United States, chartered in 1791, was a federal measure, conducted under the lead of General Hamilton--opposed by Mr. Jefferson, Mr. Madison and the republican party; and became a great landmark of party, not merely for the bank itself, but for the latitudinarian construction of the constitution in which it was founded, and the great door which it opened to the discretion of Congress to do what it pleased, under the plea of being "necessary" to carry into effect some granted power. The non-renewal of the charter in 1811, was the act of the republican party, then in possession of the government, and taking the opportunity to terminate, upon its own limitation, the existence of an institution, whose creation they had not been able to prevent. The charter of the second bank, in 1816, was the act of the republican party, and to aid them in the administration of the government, and, as such, was opposed by the federal party--not seeming then to understand that, by its instincts, a great moneyed corporation was in sympathy with their own party, and would soon be with it in action--which this bank soon was--and now struggled for a continuation of its existence under the lead of those who had opposed its birth, and against the party which created it. Mr. Webster was a federal leader on both occasions--against the charter, in 1816; for the recharter, in 1832--and in his opening speech in favor of the renewal, according to the bill reported by the Senate's select committee, and in allusion to these reversals of positions, and in justification of his own, he spoke thus, addressing him self to the Vice-President, Mr. Calhoun:

"A considerable portion of the active part of life has elapsed, said Mr. W., since you and I, Mr. President, and three or four other gentlemen, now in the Senate, acted our respective parts in the passage of the bill creating the present Bank of the United States. We have lived to little purpose, as public men, if the experience of this period has not enlightened our judgments, and enabled us to revise our opinions; and to correct any errors into which we may have fallen, if such errors there were, either in regard to the general utility of a national bank, or the details of its constitution. I trust it will not be unbecoming the occasion, if I allude to your own important agency in that transaction. The bill incorporating the bank, and giving it a constitution, proceeded from a committee of the House of Representatives, of which you were chairman, and was conducted through that House under your distinguished lead. Having recently looked back to the proceedings of that day, I must be permitted to say that I have perused the speech by which the subject was introduced to the consideration of the House, with a revival of the feeling of approbation and pleasure with which I heard it; and I will add, that it would not, perhaps, now, be easy to find a better brief synopsis of those principles of currency and of banking, which, since they spring from the nature of money and of commerce, must be essentially the same, at all times, in all commercial communities, than that speech contains. The other gentlemen now with us in the Senate, all of them, I believe, concurred with the chairman of the committee, and voted for the bill. My own vote was against it. This is a matter of little importance; but it is connected with other circumstances, to which I will, for a moment, advert. The gentlemen with whom I acted on that occasion, had no doubts of the constitutional power of Congress to establish a national bank; nor had we any doubts of the general utility of an institution of that kind. We had, indeed, most of us, voted for a bank, at a preceding session. But the object of our regard was not whatever might be called a bank. We required that it should be established on certain principles, which alone we deemed safe and useful, made subject to curtain fixed liabilities, and so guarded that it could neither move voluntarily, nor be moved by others out of its proper sphere of action. The bill, when first introduced, contained features, to which we should never have assented, and we set ourselves accordingly to work with a good deal of zeal, in order to effect sundry amendments. In some of those proposed amendments, the chairman, and those who acted with him, finally concurred. Others they opposed. The result was, that several most important amendments, as I thought, prevailed. But there still remained, in my opinion, objections to the bill, which justified a persevering opposition till they should be removed."

He spoke forcibly and justly against the evils of paper money, and a depreciated currency, meaning the debased issues of the local banks, for the cure of which the national bank was to be the instrument--not foreseeing that this great bank was itself to be the most striking exemplification of all the evils which he depicted. He said:

"A disordered currency is one of the greatest of political evils. It undermines the virtues necessary for the support of the social system, and encourages propensities destructive of its happiness. It wars against industry, frugality, and economy; and it fosters the evil spirits of extravagance and speculation. Of all the contrivances for cheating the laboring classes of mankind, none has been more effectual than that which deludes them with paper money. This is the most effectual of inventions to fertilize the rich man's field, by the sweat of the poor man's brow. Ordinary tyranny, oppression, excessive taxation, these bear lightly on the happiness of the mass of the community, compared with fraudulent currencies, and the robberies committed by depreciated paper. Our own history has recorded for our instruction enough, and more than enough, of the demoralizing tendency, the injustice, and the intolerable oppression on the virtuous and well disposed, of a degraded paper currency, authorized by law, or any way countenanced by government."

He also spoke truly on the subject of the small quantity of silver currency in the United States--only some twenty-two millions--and not a particle of gold; and deprecated the small bank note currency as the cause of that evil. He said:

"The paper circulation of the country is, at this time, probably seventy-five or eighty millions of dollars. Of specie we may have twenty or twenty-two millions: and this, principally, in masses in the vaults of the banks. Now, sir, this is a state of things which, in my judgment, leads constantly to overtrading, and to the consequent excesses and revulsions which so often disturb the regular course of commercial affairs.

"Why have we so small an amount of specie in circulation? Certainly the only reason is, because we do not require more. We have but to ask its presence, and it would return. But we voluntarily banish it by the great amount of small bank notes. In most of the States the banks issue notes of all low denominations, down even to a single dollar. How is it possible, under such circumstances, to retain specie in circulation? All experience shows it to be impossible. The paper will take the place of the gold and silver. When Mr. Pitt, in the year 1797, proposed in Parliament to authorize the Bank of England to issue one pound notes, Mr. Burke lay sick at Bath of an illness from which he never recovered; and he is said to have written to the late Mr. Canning, 'Tell Mr. Pitt that if he consents to the issuing of one pound notes, he must never expect to see guinea again.'"

The bill provided that a bonus of $500,000 in three equal annual instalments should be paid by the bank to the United States for its exclusive privileges: Mr. Webster moved to modify the section, so as to spread the payment over the entire term of the bank's proposed existence--$150,000 a year for fifteen years. I was opposed both to the bonus, and the exclusive privilege, and said:

"The proper compensation for the bank to make, provided this exclusive privilege was sold to it, would be to reduce the rate of interest on loans and discounts. A reduction of interest would be felt by the people; the payment of a bonus would not be felt by them. It would come into the treasury, and probably be lavished immediately on some scheme, possibly unconstitutional in its nature, and sectional in its application. He was not in favor of any scheme for getting money into the treasury at present. The difficulty lay the other way. The struggle now was to keep money out of the treasury,--to prevent the accumulation of a surplus; and the reception of this bonus would go to aggravate that difficulty, by increasing that surplus. Kings might receive bonuses for selling exclusive privileges to monopolizing companies. In that case his subjects would bear the loss, and he would receive the profit; but, in a republic, it was incomprehensible that the people should sell to a company the privilege of making money out of themselves. He was opposed to the grant of an exclusive privilege; he was opposed to the sale of privileges; but if granted, or sold, he was in favor of receiving the price in the way that would be most beneficial to the whole body of the people; and, in this case, a reduction of interest would best accomplish that object. A bank, which had the benefit of the credit and revenue of the United States to bank upon, could well afford to make loans and discounts for less than six per centum. Five per centum would be high interest for such a bank; and he had no doubt, if time was allowed for the application, that applications enough would be made to take the charter upon these terms."

I opposed action on the subject at this session. The bank charter had yet four years to run, and two years after that to remain in force for winding up its affairs; in all, six years before the dissolution of the corporation: and this would remit the final decision to the Congress which would sit between 1836 and 1838, and there was not only to be a new Congress elected before that time, but a new Congress under a new apportionment of the representation, in which there would be a great augmentation of members, and especially in the West, where the operation of the present bank was most injurious. The stockholders had not applied for the recharter at this session: that was the act of the directors and politicians, or rather of the politicians and directors; for the former governed the decision. The stockholders in their meeting last September only authorized the president and directors to apply at any time before the next triennial meeting--at any time within three years; and that would carry the application to the right time. I, therefore, inveighed against the present application, and insisted that:

"Many reasons oppose the final action of Congress upon this subject at the present time. We are exhausted with the tedium, if not with the labors of a six months' session. Our hearts and minds must be at home, though our bodies are here. Mentally and bodily we are unable to give the attention and consideration to this question, which the magnitude of its principles, the extent and variety of its details, demand from us. Other subjects of more immediate and pressing interest must be thrown aside, to make way for it. The reduction of the price of the public lands, for which the new States have been petitioning for so many years, and the modification of the tariff, the continuance of which seems to be weakening the cement which binds this Union together, must be postponed, and possibly lost for the session, if we go on with the bank question. Why has the tariff been dropped in the Senate? Every one recollects the haste with which that subject was taken up in this chamber; how it was pushed to a certain point; and how suddenly and gently it has given way to the bank bill! Is there any union of interest--any conjunction of forces--any combined plan of action--any alliance, offensive or defensive, between the United States Bank and the American system? Certainly they enter the field together, one here, the other yonder (pointing to the House of Representatives), and leaving a clear stage to each other, they press at once upon both wings, and announce a perfect non-interference, if not mutual aid, in the double victory which is to be achieved. Why have the two bills reported by the Committee on Manufactures, and for taking up which notices have been given: why are they so suddenly, so easily, so gently, abandoned? Why is the land bill, reported by the same committee, and a pledge given to call it up when the Committee on Public Lands had made their counter report, also suffered to sleep on the table? The counter report is made; it is printed; it lies on every table; why not go on with the lands, when the settlement of the question of the amount of revenue to be derived from that source precedes the tariff question, and must be settled before we can know how much revenue should be raised from imports.

"An unfinished investigation presented another reason for delaying the final action of Congress on this subject. The House of Representatives had appointed a committee to investigate the affairs of the bank; they had proceeded to the limit of the time allotted them--had reported adversely to the bank--and especially against the renewal of the charter at this session; and had argued the necessity of further examinations. Would the Senate proceed while this unfinished investigation was depending in the other end of the building? Would they act so as to limit the investigation to the few weeks which were allowed to the committee, when we have from four to six years on hand within which to make it? The reports of this committee, to the amount of some 15,000 copies had been ordered to be printed by the two Houses, to be distributed among the people. For what purpose? Certainly that the people might read them--make up their minds upon their contents--and communicate their sentiments to their representatives. But these reports are not yet distributed; they are not yet read by the people; and why order this distribution without waiting for its effect, when there is so much time on hand? Why treat the people with this mockery of a pretended consultation--this illusive reference to their judgment--while proceeding to act before they can read what we have sent to them? Nay, more; the very documents upon which the reports are founded are yet unprinted! The Senate is actually pushed into this discussion without having seen the evidence which has been collected by the investigating committee, and which the Senate itself has ordered to be printed for the information of its members.

"The decision of this question does not belong to this Congress, but to the Congress to be elected under the new census of 1830. It looked to him like usurpation for this Congress to seize upon a question of this magnitude, which required no decision until the new and full representation of the people shall come in; and which, if decided now, though prematurely and by usurpation, is irrevocable, although it cannot take effect until 1836;--that is to say, until three years after the new and full representation would be in power. What Congress is this? It is the apportionment of 1820, formed on a population of ten millions. It is just going out of existence. A new Congress, apportioned upon a representation of thirteen millions, is already provided for by law; and after the 4th of March next--within nine months from this day--will be in power, and entitled to the seats in which we sit. That Congress will contain thirty members more than the present one. Three millions of people--a number equal to that which made the revolution--are now unrepresented, who will be then represented. The West alone--that section of the Union which suffers most from the depredations of the bank--loses twenty votes! In that section alone a million of people lose their voice in the decision of this great question. And why? What excuse? What necessity? What plea for this sudden haste which interrupts an unfinished investigation--sets aside the immediate business of the people--and usurps the rights of our successors? No plea in the world, except that a gigantic moneyed institution refuses to wait, and must have her imperial wishes immediately gratified. If a charter was to be granted, it should be done with as little invasion of the rights of posterity--with as little encroachment upon the privileges of our successors--as possible. Once in ten years, and that at the commencement of each full representation under a new census, would be the most appropriate time; and then charters should be for ten, and not twenty years.

"Mr. B. had nothing to do with motives. He neither preferred accusations, nor pronounced absolutions: but it was impossible to shut his eyes upon facts, and to close up his reason against the induction of inevitable inferences. The presidental election was at hand;--it would come in four months;--and here was a question which, in the opinion of all, must affect that election--in the opinion of some, may decide it--which is pressed on for decision four years before it is necessary to decide it, and six years before it ought to be decided. Why this sudden pressure? Is it to throw the bank bill into the hands of the President, to solve, by a practical reference, the disputed problem of the executive veto, and to place the President under a cross fire from the opposite banks of the Potomac River? He [Mr. B.] knew nothing about that veto, but he knew something of human nature, and something of the rights of the people under our representative form of government; and he would be free to say that a veto which would stop the encroachment of a minority of Congress upon the rights of its successors--which would arrest a frightful act of legislative usurpation--which would retrieve for the people the right of deliberation, and of action--which would arrest the overwhelming progress of a gigantic moneyed institution--which would prevent Ohio from being deprived of five votes, Indiana from losing four, Tennessee four, Illinois two, Alabama two, Kentucky, Mississippi and Missouri one each--which would lose six votes to New-York and two to Pennsylvania; a veto, in short, which would protect the rights of three millions of people, now unrepresented in Congress, would be an act of constitutional justice to the people, which ought to raise the President, and certainly would raise him, to a higher degree of favor in the estimation of every republican citizen of the community than he now enjoyed. By passing on the charter now, Congress would lose all check and control over the institution for the four years it had yet to run. The pendency of the question was a rod over its head for these four years; to decide the question now, is to free it from all restraint, and turn it loose to play what part it pleased in all our affairs--elections, State, federal, presidential.

"Mr. B. turned to the example of England, and begged the republican Senate of the United States to take a lesson from the monarchial parliament of Great Britain. We copied their evil ways; why not their good ones? We copied our bank charter from theirs; why not imitate them in their improvements upon their own work? At first the bank had a monopoly resulting from an exclusive privilege: that is now denied. Formerly the charter was renewed several years before it was out: it now has less than a year to run, and is not yet rechartered."

A motion was made by Mr. Moore of Alabama, declaratory of the right of the States to admit, or deny the establishment of branches of the mother bank within their limits, and to tax their loans and issues, if she chose to admit them: and in support of that motion Mr. Benton made this speech:

"The amendment offered by the senator from Alabama [Mr. Moore] was declaratory of the rights of the States, both to refuse admission of these branch banks into their limits, and to tax them, like other property, if admitted: if this amendment was struck out, it was tantamount to a legislative declaration that no such rights existed, and would operate as a confirmation of the decision of the Supreme Court to that effect. It is to no purpose to say that the rejection of the amendment will leave the charter silent upon the subject; and the rights of the States, whatsoever they may be, will remain in full force. That is the state of the existing charter. It is silent upon the subject of State taxation; and in that silence the Supreme Court has spoken, and nullified the rights of the States. That court has decided that the Bank of the United States is independent of State legislation! consequently, that she may send branches into the States in defiance of their laws, and keep them there without the payment of tax. This is the decision; and the decision of the court is the law of the land; so that, if no declaratory clause is put into the charter, it cannot be said that the new charter will be silent, as the old one was. The voice of the Supreme Court is now heard in that silence, proclaiming the supremacy of the bank, and the degradation of the States; and, unless we interpose now to countervail that voice by a legislative declaration, it will be impossible for the States to resit it, except by measures which no one wishes to contemplate.

"Mr. B. regretted that he had not seen in the papers any report of the argument of the senator from Virginia [Mr. Tazewell] in vindication of the right of the States to tax these branches. It was an argument brief, powerful, and conclusive--lucid as a sunbeam, direct as an arrow, and mortal as the stroke of fate to the adversary speakers. Since the delivery of that argument, they had sat in dumb show, silent as the grave, mute as the dead, and presenting to our imaginations the realization of the Abbé Sieyes's famous conception of a dumb legislature. Before the States surrendered a portion of their sovereignity to create this federal government, they possessed the unlimited power of taxation; in the act of the surrender, which is the constitution, they abridged this unlimited right but in two particulars--exports and imports--which they agreed no longer to tax, and therefore retained the taxing power entire over all other subjects. This was the substance of the argument which dumbfounded the adversary; and the distinction which was attempted to be set up between tangible and intangible, visible and invisible, objects of taxation; between franchises and privileges on one side, and material substances on the other, was so completely blasted and annihilated by one additional stroke of lightning, that the fathers of the distinction really believed that they had never made it! and sung their palinodes in the face of the House.

"The argument that these branches are necessary to enable the federal government to carry on its fiscal operations, and, therefore, ought to be independent of State legislation, is answered and expunged by a matter of fact, namely, that Congress itself has determined otherwise, and that in the very charter of the bank. The charter limits the right of the federal government to the establishment of a single branch, and that one in the District of Columbia! The branch at this place, and the parent bank at Philadelphia, are all that the federal government has stipulated for. All beyond that, is left to the bank itself; to establish branches in the States or not, as it suited its own interest; or to employ State banks, with the approbation of the Secretary of the Treasury, to do the business of the branches for the United States. Congress is contented with State banks to do the business of the branches in the States; and, therefore, authorizes the very case which gentlemen apprehend and so loudly deprecate, that New-York may refuse her assent to the continuance of the branches within her limits, and send the public deposits to the State banks. This is what the charter contemplates. Look at the charter; see the fourteenth article of the constitution of the bank; it makes it optionary with the directors of the bank to establish branches in such States as they shall think fit, with the alternative of using State banks as their substitutes in States in which they do not choose to establish branches. This brings the establishment of branches to a private affair, a mere question of profit and loss to the bank itself; and cuts up by the roots the whole argument of the necessity of these branches to the fiscal operations of the federal government. The establishment of branches in the States is, then, a private concern, and presents this question: Shall non-residents and aliens--even alien enemies, for such they may be--have a right to carry on the trade of banking within the limits of the States, without their consent, without liability to taxation, and without amenability to State legislation? The suggestion that the United States owns an interest in this bank, is of no avail. If she owned it all, it would still be subject to taxation, like all other property is which she holds in the States. The lands which she had obtained from individuals in satisfaction of debts, were all subject to taxation; the public lands which she held by grants from the States, or purchases from foreign powers, were only exempted from taxation by virtue of compacts, and the payment of five per centum on the proceeds of the sales for that exemption."

The motion of Mr. Moore was rejected, and by the usual majority.

Mr. Benton then moved to strike out so much of the bill as gave to the bank exclusive privileges, and to insert a provision making the stockholders liable for the debts of the institution; and in support of his motion quoted the case of the three Scottish banks which had no exclusive privilege, and in which the stockholders were liable, and the superior excellence of which over the Bank of England was admitted and declared by English statesmen. He said:

"The three Scottish banks had held each other in check, had proceeded moderately in all their operations, conducted their business regularly and prudently, and always kept themselves in a condition to face their creditors; while the single English bank, having no check from rival institutions, ran riot in the wantonness of its own unbridled power, deluging the country, when it pleased, with paper, and filling it with speculation and extravagance; drawing in again when it pleased, and filling it with bankruptcy and pauperism; often transcending its limits, and twice stopping payment, and once for a period of twenty years. There can be no question of the incomparable superiority of the Scottish banking system over the English banking system, even in a monarchy; and this has been officially announced to the Bank of England by the British ministry, as far back as the year 1826, with the authentic declaration that the English system of banking must be assimilated to the Scottish system, and that her exclusive privilege could never be renewed. This was done in a correspondence between the Earl of Liverpool, first Lord of the Treasury, and Mr. Robinson, Chancellor of the Exchequer, on one side, and the Governor and Deputy Governor of the Bank of England on the other. In their letter of the 18th January, 1826, the two ministers, adverting to the fact of the stoppage of payment, and repeated convulsions of the Bank of England, while the Scottish banks had been wholly free from such calamities, declared their conviction that there existed an unsound and delusive system of banking in England, and a sound and solid system in Scotland! And they gave the official assurance of the British government, that neither His Majesty's ministers, nor parliament, would ever agree to renew the charter of the Bank of England with their exclusive privileges! Exclusive privileges, they said, were out of fashion! Nor is it renewed to this day, though the charter is within nine months of its expiration!

"In the peculiar excellence of the Scottish plan, lies a few plain and obvious principles, closely related to republican ideas. First. No exclusive privileges. Secondly. Three independent banks to check and control each other, and diffuse their benefits, instead of one to do as it pleased, and monopolize the moneyed power. Thirdly. The liability of each stockholder for the amount of his stock, on the failure of the bank to redeem its notes in specie. Fourthly. The payment of a moderate interest to depositors. Upon these few plain principles, all of them founded in republican notions, equal rights, and equal justice, the Scottish banks have advanced themselves to the first rank in Europe, have eclipsed the Bank of England, and caused it to be condemned in its own country, and have made themselves the model of all future banking institutions in Great Britain. And now, it would be a curious political phenomenon, and might give rise to some interesting speculations on the advance of free principles in England, and their decline in America, if the Scottish republican plan of banking should be rejected here, while preferred there; and the British monarchial plan, which is condemned there, should be perpetuated here! and this double incongruity committed without necessity, without excuse, without giving the people time to consider, and to communicate their sentiments to their constituents, when there is four, if not six years, for them to consider the subject before final decision is required!"

The clause for continuing the exclusive privilege of the bank, was warmly contested in the Senate, and arguments against it drawn from the nature of our government, as well as from the example of the British parliament, which had granted the monopoly to the Bank of England in her previous charters, and denied it on the last renewal. It owed its origin in England to the high tory times of Queen Anne, and its extinction to the liberal spirit of the present century. Mr. Benton was the chief speaker on this point; and--

"Pointed out the clauses in the charter which granted the exclusive privilege, and imposed the restriction, which it was the object of his motion to abolish; and read a part of the 21st section, which enacted that no other bank should be established by any future law of the United States, during the continuance of that charter, and which pledged the faith of the United States to the observance of the monopoly thereby created. He said the privilege of banking, here granted, was an exclusive privilege, a monopoly, and an invasion of the rights of all future Congresses, as well as of the rights of all citizens of the Union, for the term the charter had to run, and which might be considered perpetual; as this was the last time that the people could ever make head against the new political power which raised itself in the form of the bank to overbalance every other power in the government. This exclusive privilege is contrary to the genius of our government, which is a government of equal rights, and not of exclusive privileges; and it is clearly unauthorized by the constitution, which only admits of exclusive privileges in two solitary, specified cases, and each of these founded upon a natural right, the case of authors and inventors; to whom Congress is authorized to grant, for a limited time, the exclusive privilege of selling their own writings and discoveries. But in the case of this charter there is no natural right, and it may be well said there is no limited time; and the monopoly is far more glaring and indefensible now than when first granted; for then the charter was not granted to any particular set of individuals, but lay open to all to subscribe to it; but now it is to be continued to a particular set, and many of them foreigners, and all of whom, or their assignees, had already enjoyed the privilege for twenty years. If this company succeeds now in getting their monopoly continued for fifteen years, they will so intrench themselves in wealth and power, that they will be enabled to perpetuate their charter, and transmit it as a private inheritance to their posterity. Our government delights in rotation of office; all officers, from the highest to the lowest, are amenable to that principle; no one is suffered to remain in power thirty-five years; and why should one company have the command of the moneyed power of America for that long period? Can it be the wish of any person to establish an oligarchy with unbounded wealth and perpetual existence, to lay the foundation for a nobility and monarchy in this America!

"The restriction upon future Congresses is at war with every principle of constitutional right and legislative equality. If the constitution has given to one Congress the right to charter banks, it has given it to every one. If this Congress has a right to establish a bank, every other Congress has. The power to tie the hands of our successors is nowhere given to us; what we can do our successors can; a legislative body is always equal to itself. To make, and to amend; to do, and to undo; is the prerogative of each. But here the attempt is to do what we ourselves cannot amend--what our successors cannot amend--and what our successors are forbidden to imitate, or to do in any form. This shows the danger of assuming implied powers. If the power to establish a national bank had been expressly granted, then the exercise of that power, being once exerted, would be exhausted, and no further legislation would remain to be done; but this power is now assumed upon construction, after having been twice rejected, in the convention which framed the constitution, and is, therefore, without limitation as to number or character. Mr. Madison was express in his opinions in the year 1791, that, if there was one bank chartered, there ought to be several! The genius of the British monarchy, he said, favored the concentration of wealth and power. In America the genius of the government required the diffusion of wealth and power. The establishment of branches did not satisfy the principle of diffusion. Several independent banks alone could do it. The branches, instead of lessening the wealth and power of the single institution, greatly increased both, by giving to the great central parent bank an organization and ramification which pervaded the whole Union, drawing wealth from every part, and subjecting every part to the operations, political and pecuniary, of the central institution. But this restriction ties up the hands of Congress from granting other charters. Behave as it may--plunge into all elections--convulse the country with expansions and contractions of paper currency--fail in its ability to help the merchants to pay their bonds--stop payment, and leave the government no option but to receive its dishonored notes in revenue payments--and still it would be secure of its monopoly; the hands of all future Congresses would be tied up; and no rival or additional banks could be established, to hold it in check, or to supply its place.

"Is this the Congress to do these things? Is this the Congress to impose restrictions upon the power of their successors? Is this the Congress to tie the hands of all Congresses till the year 1851? In nine months this Congress is defunct! A new and full representation of the people will come into power. Thirty additional members will be in the House of Representatives; three millions of additional people will be represented. The renewed charter is not to take effect till three years after this full representation is in power! And are we to forestall and anticipate them? Take their proper business out of their hands--snatch the sceptre of legislation from them--do an act which we cannot amend--which they cannot amend--which is irrevocable and intangible; and, to crown this act of usurpation, deliberately set about tying the hands, and imposing a restriction upon a Congress equal to us in constitutional power, superior to us in representative numbers, and better entitled to act upon the subject, because the present charter is not to expire, nor the new one to take effect, until three years after the new Congress shall be in power! It is in vain to say that this reasoning would apply to other legislative measures, and require the postponement of the land bill and the tariff bill. Both these bills require immediate decision, and therein differ from the bank bill, which requires no decision for three years to come. But the difference is greater still; for the land bill and tariff bill are ordinary acts of legislation, open to amendment, or repeal, by ourselves and successors; but the charter is to be irrevocable, unamendable, binding upon all Congresses till the year 1851. This is rank usurpation; and if perpetrated by Congress, and afterwards arrested by an Executive veto, the President will become the true representative of the people, the faithful defender of their rights, and the defender of the rights of the new Congress which will assemble under the new census.

"Mr. B. concluded his remarks by showing the origin, and also the extinction, of the doctrine in England. A tory parliament in the reign of Queen Anne had first granted an exclusive privilege to the Bank of England, and imposed a restriction upon the right of future parliaments to establish another bank; and the ministry of 1826 had condemned this doctrine, and proscribed its continuance in England. The charter granted to the old Bank of the United States and to the existing bank had copied those obnoxious clauses; but now that they were condemned in England as too unjust and odious for that monarchial country, they ought certainly to be discarded in this republic, where equal rights was the vital principle and ruling feature of all our institutions."

All the amendments proposed by the opponents of the bank being inexorably voted down, after a debate which, with some cessations, continued from January to June, the final vote was taken, several senators first taking occasion to show they had no interest in the institution. Mr. Benton had seen the names of some members in the list of stockholders; and early in the debate had required that the rule of parliamentary law should be read; which excludes the interested member from voting, and expunges his vote if he does, and his interest is afterwards discovered. Mr. Dallas said that he had sold his stock in the institution as soon as it was known that the question of the recharter would come before him: Mr. Silsbee said that he had disposed of his interest before the question came before Congress: Mr. Webster said that the insertion of his name in the list of stockholders was a mistake in a clerk of the bank. The vote was then taken on the passage of the bill, and Stood: YEAS: Messrs. Bell, of New Hampshire; Buckner, of Missouri; Chambers, of Maryland; Clay, of Kentucky; Clayton, of Delaware; Dallas of Pennsylvania; Ewing, of Ohio; Foot, of Connecticut; Frelinghuysen, of New Jersey; Hendricks, of Indiana; Holmes, of Maine; Josiah S. Johnston, of Louisiana; Knight, of Rhode Island; Naudain, of Delaware; Poindexter, of Mississippi; Prentiss, of Vermont; Robbins, of Rhode Island; Robinson, of Illinois; Ruggles, of Ohio; Seymour, of Vermont; Silsbee, of Massachusetts; Smith (Gen. Samuel), of Maryland; Sprague, of Maine; Tipton, of Indiana; Tomlinson, of Connecticut; Waggaman, of Louisiana; Webster, of Massachusetts; and Wilkins, of Pennsylvania: 28. Nays: Messrs. Benton, of Missouri; Bibb, of Kentucky; Brown, of North Carolina; Dickerson, of New Jersey; Dudley, of New-York; Ellis, of Mississippi; Forsyth, of Georgia; Grundy, of Tennessee; Hayne, of South Carolina; Hill, of New Hampshire; Kane, of Illinois; King, of Alabama; Mangum, of North Carolina; Marcy, of New-York; Miller, of South Carolina; Moore, of Alabama; Tazewell, of Virginia; Troup, of Georgia; Tyler, of Virginia; Hugh L. White, of Tennessee: 20.

Spotted a typo or a problem in this chapter? Tell us

Chapter LXVII

BANK OF THE UNITED STATES--BILL FOR THE RENEWED CHARTER PASSED IN THE HOUSE OF REPRESENTATIVES.

The bill which had passed the Senate, after a long and arduous contest, quickly passed the House, with little or no contest at all. The session was near its end; members were wearied; the result foreseen by every body--that the bill would pass--the veto be applied--and the whole question of charter or no charter go before the people in the question of the presidential election. Some attempts were made by the adversaries of the bill to amend it, by offering amendments, similar to those which had been offered in the Senate; but with the same result in one House as in the other. They were all voted down by an inexorable majority; and it was evident that the contest was political, and relied upon by one party to bring them into power; and deprecated by the other as the flagrant prostitution of a great moneyed corporation to partisan and election purposes. The question was soon put; and decided by the following votes:

YEAS.--Messrs. Adams, C. Allan, H. Allen, Allison, Appleton, Armstrong, Arnold, Ashley, Babcock, Banks, N. Barber, J. S. Barbour, Barringer, Barstow, I. C. Bates, Briggs, Bucher, Bullard, Burd, Burges, Choate, Collier, L. Condict, S. Condit, E. Cooke, B. Cooke, Cooper, Corwin, Coulter, Craig, Crane, Crawford, Creighton, Daniel, J. Davis, Dearborn, Denny, Dewart, Doddridge, Drayton, Ellsworth, G. Evans, J. Evans, E. Everett, H. Everett, Ford, Gilmore, Grennell, Hodges, Heister, Horn, Hughes, Huntington, Ihrie, Ingersoll, Irvin, Isacks, Jenifer, Kendall, H. King, Kerr, Letcher, Mann, Marshall, Maxwell, McCoy, McDuffie, McKennan, Mercer, Milligan, Newton, Pearce, Pendleton, Pitcher, Potts, Randolph, J. Reed, Root, Russel, Semmes, W. B. Shepard, A. H. Shepperd, Slade, Smith, Southard, Spence, Stanberry, Stephens, Stewart, Storrs, Sutherland, Taylor, P. Thomas, Tompkins, Tracy, Vance, Verplanck, Vinton, Washington, Watmough, E. Whittlesey, F. Whittlesey, E. D. White, Wickliffe, Williams, Young--106.

NAYS.--Messrs. Adair, Alexander, Anderson, Archer, J. Bates, Beardsley, Bell, Bergen, Bethune, James Blair, John Blair, Bouck, Bouldin, Branch, Cambreleng, Carr, Chandler, Chinn, Claiborne, Clay, Clayton, Coke, Conner, W. R. Davis, Dayan, Doubleday, Felder, Fitzgerald, Foster, Gaither, Gordon, Griffin, T. H. Hall, W. Hall, Hammons, Harper, Hawes, Hawkins, Hoffman, Hogan, Holland, Howard, Hubbard, Jarvis, Cave Johnson, Kavanagh, Kennon, A. King, J. King, Lamar, Leavitt, Lecompte, Lewis, Lyon, Mardis, Mason, McCarty, McIntire, McKay, Mitchell, Newnan, Nuckolls, Patton, Pierson, Polk, E. C. Reed, Rencher, Roane, Soule, Speight, Standifer, F. Thomas, W. Thompson, J. Thomson, Ward, Wardwell, Wayne, Weeks, Wheeler, C. P. White, Wilde, Worthington.--84.

Spotted a typo or a problem in this chapter? Tell us