JUNE 23, 1834.] Presentation of Memorials. [H. or R. Bank of the United States; such was at that time the "I am persuaded that no man, whatever his preconconsummation of the memorials and petitions which pour-ceived opinions may be, can preside over the Treasury ed in from all quarters, and which the chairman of the one year, without being deeply impressed with the expeCommittee of Ways and Means has lately thought proper diency of the Bank of the United States in conducting the to speak of with contempt, and to treat as the fictions of finances of the Union. The provision in the constitution federalists and bank advocates. But, notwithstanding the which gives Congress the power to pass all laws which efforts of the administration on this floor, notwithstanding may be necessary and proper to carry into effect the the clamor raised by demagogues every where, notwith- enumerated powers, gives Congress the right to pass the standing the very sudden and remarkable change of opin- bank bill. ion among some of her own representatives, Pennsylvania will still prefer to keep her eye upon those great fathers of her principles and her policy to whom she has been so long accustomed to look up-I mean upon Madison, Gallatin, and Crawford. What is the language of these highly-distinguished and consistent republicans? Let us examine, and place it in contrast with what is now given. And first, as to Mr. Gallatin: on the 30th January, 1811, Mr. Crawford, then a member of the United States Senate, applied officially to Mr. Gallatin, at that time Secretary of the Treasury, "for his views as to the practicability of employing the State banks as places of deposite for the public moneys, and as means suited to regulate the currency of the country. Mr. Gallatin replies to the following effect; and I venture to say that no candid man will read his reply, without deeming the question entirely put at rest. I desire, particularly, to bring this letter to public view, because, in a debate on the bank deposite bill, the chairman of the Committee of Ways and Means turned this letter to his own account, and quoted one single paragraph "as evidence of the very highest character" in favor of his State bank deposite bill. I submit this letter, entire, to my countrymen, and rely confidently upon their good sense to come to a just conclusion; and I am willing to give the honorable gentleman from Tennessee the whole benefit of his extract. They will find, too, that no doubt rested, even at that day, on the mind of Mr. Gallatin, as to the constitutionality of the bank. (See end of speech.) * * I was Secretary of the Treas ury more than eight years, and during that time I had ample evidence of the great utility of the Bank of the United States in managing the fiscal concerns of the Union." And now, Mr. Speaker, let me ask, ought or can any thing more conclusive be required on the question? I think not, sir; and I heartily trust that, at least so far as my own native State is concerned, the high and elevated authorities I have just quoted will prove a sufficient barrier against the attempts and designs of self-interested demagogues. And here, Mr. Speaker, I take my leave of this part of the subject; I feel it, however, to be my solemn duty to advance one step further into the general question. It is but too evident, from movements which have lately manifested themselves on this floor, that, in despite of all the petitions and remonstrances of the people, the infamous "experiment" is to be forced onward. We have lately seen a chairman of a most distinguished committee rise in his place, and in a speech of two hours, intended purely for political effect, seek to force through a bill which, I venture to assert, is in direct opposition to the views and interests of the people, against all previous and all judicial authority, and which, if passed, will inflict a mortal wound both upon the constitution and the laws. have likewise seen another bill of vast importance, as it relates to the currency and the general welfare, hastily forced through the House, without debate, without being reported upon, or receiving the action of any of the committees of the House, and recommended purely as a party measure. We No doubt, therefore, can exist upon the mind of any man that the Bank of the United States is to be put down, cost what it may, and that the State banks, against all previous experience, and in the very face of the still existing balance of 1,500,000 dollars of “unavailable funds," are to be permanently substituted as places of deposite for the public moneys. Under these circumstances, I consider it to be my bounden duty to state the case fairly to my constituents and my country. I shall, therefore, proceed now to show the nature of the security which they at present possess for the vast amount of accruing revenue, and, in juxtaposition, the actual condition and resources of the Bank of the United States. I recommend it to their careful perusal. And here, Mr. Speaker, I might rest this whole question, even on the authority of the gentleman from Tennessee, [Mr. POLK.] But, sir, the further you go in quest of authority, the stronger the case becomes. What says Mr. Madison' the virtuous, the enlightened Madison; almost the last survivor of that immortal civic band by whose labors our constitution was framed. It will be recollected that, in 1814, a majority of the two Houses of Congress sanctioned the chartering of a Bank of the United States-a measure forced upon them by the extreme state of depression under which the country labored, in consequence of the total derangement of its currency, and the State bank deposite system. Mr. Madison, acting under a conscientious conviction that this charter would not effect the object proposed, modestly returned the bill to Congress It may well be supposed, sir, that the bank at "head with his objections. In April, 1816, however, he affixed quarters," the military chest, as the Bank of the Metropohis name to the charter of the existing bank, and in June, lis may be not inaptly styled, will be guarded with ex1831, in reply to a letter addressed to him on the subject treme care, and ought, of course, to present the best of the bank, he wrote the letter which I now hold in my statement. Let us see, then, how this matter stands; and hand, and which I shall annex, at full length, to my writ- here, sir, let me premise that I have been led to make ten remarks. (See end of speech.) In this letter Mr. this examination from seeing what I suppose was an offiMadison for ever settles the constitutional question. He cial statement, made in the Globe on or about the 1st of reasons like a philosopher, a statesman, and a man of May last; it will enable the people to judge what reliance sense; and I do most fervently hope that my countrymen is hereafter to be placed on any statement coming from will read and deliberate upon the views contained in this that quarter. invaluable document, and remember that it will ever be ranked among the best of those precious relics left us by the sages of 1776. But, sir, I stop not here. I have still one authority left, scarcely less conclusive than those I have already given. Mr. Crawford, a statesman of undoubted talents and the deepest experience, meets the question directly in front, and says that VOL. X.--304 To my mind, sir, the results are startling in the extreme; and as I have not been able to come to a more satisfactory conclusion in looking over the accounts of any of the selected banks, I confess myself overwhelmed by the most dismal forebodings of the future. By the "statement" of the "Official," the following appears to have been the condition of this Bank of the Metropolis on the 1st day of January, 1834, to wit: ton, to the amount of Making up the amount, above stated, of $10,000 00 1,922 92 204,900 00 $216,822 92 This, certainly, is no very flattering picture; but let us proceed. By the last report, lately made to the Senate, it will be seen that the condition of this bank, on the 5th of May, had somewhat varied. By a comparison of these two statements, made at an interval of only four months, the country will be enabled to form a correct judgment of the effect of the "experiment," and of the capability of Now, sir, I think it will scarcely be pretended that any those State banks to afford those facilities to the com- amount of money could be raised on these items, in the merce and industry of the country, so essential to their present deranged state of the currency, and under the due encouragement, and her general prosperity. During pressure existing, particularly in this District. I think I the short interval above mentioned, the discounts of this hazard but little in saying that ten thousand dollars could bank have been reduced six thousand dollars, and its cir- not be realized in money from the whole of them. culation contracted sixty thousand dollars; and, by looking now, to say nothing of the very questionable character of closely into all the facts as they present themselves, it is this last transaction, that of a bank dealing in its own manifest that the public funds are locked up to sustain the stock at a depreciated value, and under circumstances credit of particular banks, and the people deprived of all which will not, perhaps, bear the light of day, there can the benefits they have hitherto enjoyed from their free be no doubt that the difference between the cost of the and liberal circulation. One, therefore, of the main ob-stock and its par value forms a part of the surplus of jects of a good banking system, that of keeping capital in $29,055 67. circulation in lieu of being centralized, is entirely destroyed. But to make this plain, on the 5th day of May the bank stood as follows, viz: Capital, Circulation, Due to Treasurer United States, Due to banks, do. And Now, sir, I believe that the highest price offered for a small amount of this stock put up for sale at public auction, was only 83 per centum, and, at another attempt to $500,000 sell at public sale, there was no bid at all. It is, there95,136 fore, not improbable but that this gain will prove to be a 662,676 loss. special deposites, 20,625 It is fairly to be presumed, too, that a part of the bal 58,836 ances set down as due from banks, einbraces the sums re JUNE 23, 1834.] Presentation of Memorials. [H. OF K cently loaned to the banks which have suspended specie moneys. Now, I think I have clearly shown that her payments; if this be the case, to that extent, at least for whole probable available means do not exceed 620,774 the present, these balances are not available. dollars. Thus, then, it is seen that, so far from being able to There can be no doubt that, under the existing cir. meet all its engagements, by a curtailment of 30 per cumstances of the country, the whole amount of the centum in three equal calls, at sixty, one hundred and public funds will be immediately required. In this twenty, and one hundred and eighty days, it will require event, the result is inevitable-a deficiency to meet the 63 per centum on $755,476, the amount of discounts, to Treasurer's drafts, of 192,621 dollars. And what now enable the bank to meet its just demands; and when or becomes of the holders of the notes and of the claims of where so large a sum can be raised to meet these demands, individuals? They must rely upon collections to be made is a question of fearful import, not only to the directors from the discounted debt, and from the sale of the stock of this institution, but, allow me to add, to this House, as of their own bank. I think I have clearly shown that well as to those who have assumed the responsibility of con- these are not to be relied on; but it must be further refiding the money of the people to such places of deposite. collected that the United States has a preference over But, sir, I have seen it stated that the Bank of the individuals; and as it is highly probable all the public United States has made repeated "runs,” as they are moneys will be required in the course of the year for the technically called, upon the Bank of the Metropolis, with current expenses of the Government, the other creditors the view to destroy it by abstracting all its specie: I be- of this bank must look to it in due season; otherwise, lieve this is not true. I have sought the necessary infor- they will be left to get their pay as best they can. mation, and understand that there has been but a single Under all these circumstances, then, what claim has demand made for specie by the United States Bank on this or any of the deposite banks upon the forbearance that bank, and that for fifty thousand dollars only, while of the United States Bank? Surely none. And the the state of the balances between the two institutions more so, as further forbearance on her part can only would have authorized a demand of not less than half a tend to jeopardize the interests of her own stockholders, million: nor could this have been imputed to the Bank of and finally deprive her of so much additional means to the United States as an act of injustice, or as one she would enable her, when the great crisis shall at length arrive, not have been sanctioned in adopting, under the existing which is destined to convulse the whole community, if state of warfare waged against her; for I venture to as not shake the very foundations of our Union itself, to resert that the deposite bank holds not a dollar of coin in main firm and unmoved at her moorings. her vaults that has not been directly or indirectly withdrawn from the Bank of the United States, or some one of her branches; the illegality and unconstitutionality of which have been so clearly demonstrated. Sir, the course pursued by the United States Bank, in this instance, is precisely that adopted by her in her relations with all the State banks-an entire elevation above all personal animosities, and a regard solely to the credit of the country at large, and the convenience of all the great interests of the nation. "This will be seen, more distinctly, in the following comparison of the business and deposites of the three places where the present pressure is mainly ascribed to the reductions of the bank; that is, at Philadelphia, New York, and Boston. At those places The loans were Domestic bills. Public deposites. Oct. 2, $12,509,778 15 $6,317,700 28 $6,871,626 64 Dec. 2, 11,639,130 47 4,037,642 70 2,830,864 81 Reduct's, $870,647 68 $2,280,057 58 $4,040,761 83 making the actual reduction of loans only $870,647 68, on a reduction of Government deposites, of $4,040, 761 83. "And taking the bills into consideration, the whole reduction of loans and bills will be only $3,150,705 26, for a reduction of deposites of $4,040,761 83; and all this at a moment when secret drafts to the amount of $2,300,000 were hanging over the bank. That she will be enabled to do this, I firmly believe, and will now proceed to make manifest. (See end of speech.) The analysis I am about to make is one embarrassed by no difficulties. It presents itself in a form intelligible to the plainest understanding. It is purely a matter of official statement. It involves the vast concerns of a great and thriving nation. It develops the secret springs of all the great interests of society. It plainly exposes the nerves and fibres of all those springs, and shows what exquisite skill is necessary in the employment of them, and what exquisite skill has been brought to bear upon their past operation. Sir, I mean not, sir, to repeat all or any of the arguments which, in the course of this painful session, have been uttered with so much eloquence and effect upon this floor against the acts and the policy of the President of the United States. I leave them to operate their full effects upon the minds of the people; and I call upon them maturely and deliberately to weigh the consequences which have already sprung from those acts, and the effect which is likely to be produced upon their own welfare, and the future prosperity of their children, by the new relations towards them and the constitution which the President has thought proper to assume. let it not be supposed that the people of these United States will permit themselves any longer to be deceived. Political means, to ensure political results, involving great principles of national policy, they will sanction; but when it shall once become manifest to their minds that political means are only used to smooth the way to broad, and uncontrolled, and unconstitutional power; that the hue and cry of political demagogues is to be raised against every principle, and every institution of the coun$4,719,972 80 try, and every co-ordinate branch of the Government 4,083,260 15 that opposes the inroad, or does not lend itself to the advance of power, then, sir, my life on it, they will shake $636,712 65 off the infatuation which has hitherto palsied their energies, and in the bold and energetic language of the ironcrowned monarch of ancient Lombardy, exclaim, "Gare à qui la touche." Sir, they will not be satisfied with the means proposed and now offered to them by the majority of this House to silence their cries, and evade their petitions for redress; they will reject the bill offered by "It will be seen how little reason there is to complain of the reductions of the bank. In fact, the bank, so far from endeavoring to oppress the State banks, has treated them with the greatest liberality. Thus: The debt from the State banks on the 2d of October, was On the 2d December, A diminution of only while the bank reduced its own business upwards of five millions." There is yet, however, one other view in which this matter strikes me as being of deep moment. It will be remembered that this Bank of the Metropolis holds at present au amount equal to 814,395 dollars of the public The notes and debts of [JUNE 23, 1834. 10,385,439 15 2,035,985 00 10,180,008 76 2,195,489 00 11,183,774 54 3,094,787 00 12,298,333 20 $12,298,333 20 3,329,362 00 3,329,362 00 $7,892,290 05 8,277,417 70 2,515,662 51 385,127 65 1,634,891 69 15,627,695 20 the honorable chairman of the Committee of Ways and March 1 18,523,189 00 Means. They are not yet reduced to that condition of April 1 17,521,264 39 vassalage and imbecility which this bill presupposes. May 1 16,604,147 90 What, sir, legalize the unconstitutional acts of the Presi- June 1 16,612,527 06 dent by a remedy proposed by himself? Leave the con- Now, sir, let us test the conduct of the bank during stitution to wither, become a dead letter, and the law to this period of severe trial, and see whether she has forbe prostrate at the foot of the executive throne, while gotten her duty to the public, and given herself up to a they rivet with their own hands the chains he has at- wanton spirit of retaliation, or whether she has not regu tempted to throw around them? No, sir, never. If the lated herself by an extreme prudence, and kept her acgreat means by which the currency has been hitherto tion always within the line forced upon her by the Execu regulated and controlled is to be abolished, and an old tive. Since the removal of the deposites, and condemned political expedient substituted in their The reduction of loans has been place, let it be done at least under the sanction of the While the reduction of deposites has been law, and with all the forms prescribed by the constitution. The constitution and the laws must be redeemed. Being more than the reduction of loans by The President must purge his own heart and his councils The reduction of the notes in circulation is of that obdurate arrogance which refuses to confess a The increase of the specie, wrong, and, laying aside his personal animosities, and his The specie is now military notions, submit himself to public opinion, and in his executive action confine himself modestly within the limits prescribed by the constitution and the laws; then, sir, all the evils of which we complain will be at once remedied: and if the people so decide, the great object of his unrelenting vengeance will expire by her own limitation, and it will become the duty of Congress to a provide other means to promote the general welfare. But, Mr. Speaker, it is assumed that the bank is the cause of all the distress and want of confidence, and general derangement into which the country has been thrown. Sir, that this is not true, is susceptible of of presidential patronage, of executive venom, and of mathematical demonstration. I proceed to the proof. every corrupt press in the country, was brought to bear No one has denied the existence of the most unparal- upon her; to break her was a matter of life and death with leled state of prosperity with which the year 1833 her persecutors; no matter what amount of ruin ensued, opened. The people were buoyant with hope, and the no matter to what degree public confidence was prosyear promised a most abundant harvest. On the first day of October the President of the United States issued his mandate, without previous notice, or any of the previous arrangements which the importance of the measure, and a common feeling of benevolence to his countrymen, ought to have dictated: the public deposites were at once withdrawn from the place which the law had appointed for them. While the notes in circulation amount to 16,612,527 06 Here, Mr. Speaker, you have presented to your view more remarkable instance of skill, sound management, and solvency, in an institution, than perhaps have ever before been manifested. During the whole period which the most unrelenting persecution. The combined force this statement contemplates, the bank was the object of lost. "6 trated, or the national currency deranged, the prestige of military firmness, of glory, of victory, must not be assault upon the general welfare and prosperity of the 'Carthage was to be destroyed;" and the unholy people was persevered in. The bank has remained unshe has been enabled, from her position, to extend the touched. The whirlwind has swept by her, and, while hand of relief whenever and wherever it has been claimed, without regard to party distinctions, she has defied the storm. The immediate claims against her were the deThat there may be no mistake in this matter, I ask the posites and her circulation. The means immediately to attention of the House to the following statement. be relied upon to meet these claims, are the specie and pledge myself for its entire authenticity, and only desire the debts from banks. What then, sir, was the situation of the Bank of the United States? I that it may be carefully perused. It contains the amount shows the condition of the bank in these particulars when I now ask attention to the following statement. It of loans, of public deposites, and of private deposites, the first bold effort was made to destroy her, and the on the day the deposites were withdrawn, and on each shout of anticipated victory bellowed from a hundred succeeding month, up to the 1st of June instant. It pre-throats; and at the present time, when the confederated Certainly, sir, we have before us a fine comment upon the wisdom of our rulers, and the sagacity of our minister of finance! In the midst of the general hurrah, the bank has quietly pursued the even tenor of her way, and has actually paid off nearly eleven millions of her liabilities, finding herself at this moment with more funds in her possession than when she sat out. Such, Mr. Speaker, is the general result of this war of persecution against the Bank of the United States. Calm, temperate, and just, her board of directors have! anticipated every blow aimed at the interests of the country, and have protected the institution over which they preside from the violence which has fallen with an iron hand upon the people. The following table fully develops the general condition of the bank on the 1st day of June instant. It presents an argument in itself worth all that could be said or written, and ought to convince the people of the benefits which might be derived from an institution so regulated, and so solvent, under circumstances of general harmony and prosperity, when it presents such results under circumstances of so widely different a character. On the 1st day of June, 1834, the bank owed to depositors, public and private, Owed to holders of its notes, Unclaimed dividends on its own stock, Total, $9,599,880 66 26,212,407 72 $26,285,588 70 This is every dollar which any man has a right to claim from the bank. Now, to pay them, the bank has Total, [H. OF R Since the 1st day of October, 1833, the Bank of the a Making a total of $1,000,000 2,500,000 $3,500,000 The bank has imported this large amount of specie with view to place her own solvency beyond all manner of doubt, and to enable her the better to sustain that crisis which must inevitably result from the measures of the Government. This importation has had the effect desired, and public confidence has increased towards that institution." But what becomes of the two million five huudred thousand dollars over and above that imported by the bank? What effect has it had upon the business of the country? To what degree has it restored, either generally or partially, that 'confidence among the merchants and traders so essential to their welfare and that of the country at large, and which has of late been so utterly annihilated? To what amount has it tended to increase the circulation of values, or to afford facilities in the making of payments? None whatever, sir. The business of the country is at a stand; the whole year has been thrown away; confidence still holds aloof, and the means of employment are infinitely diminished; nor do I believe, Mr. Speaker, that four times the amount would produce any effect whatever on the general concerns of the nation, until the proper remedies are applied by Congress itself. Of this, sir, I have but little hope; and although there may be a redeeming spirit in the country and her institutions sufficient to carry her safely through the calamities ahead, yet, sir, I, for one, can never consent to prove the vigor of our constitution at the expense of so much individual distress. Before I conclude, I must be allowed to notice one more subject. Among the many clamors raised against the bank, it has been attempted to arouse public indignation against $12,298,333 00 her for the republishing of valuable public documents and speeches of members of Congress. I cannot believe, sir, that, when this matter is temperately viewed, the people 3,329,362 00 will disapprove of it. What possible injury has it or can 1,995,290 00 it effect? Do these documents contain any thing preju2,904,762 00 dicial to the interests of the people, or adverse to the in52,289,053 00 stitutions of our country, or to the soundest republican doctrine? No, sir; no one will dare to say they do. They 72,816,801 00 contain the best collection of facts, and the soundest po164, 110 00 litical views; and, without exception, they breathe the pu rest and most elevated principles of liberty. $72,980,911 00 Sir, we are now at the close of a long and most painful session of Congress. On the part of the friends of the Here, then, is a mass of property of more than seventy-administration, every argument has been used, and every two millions bound for the safe-keeping of the public effort employed, to sustain the administration in all its funds, and the performance of the duties of commissoiners policy, and especially the President in all his views and of loans and pension agents. Compare this security, Mr. Speaker, with that offered by these deposite banks, and surely we may wonder how the wicked policy under which the country now groans can be permitted to continue.. assumptions. These arguments have been distributed in large quantities, and public opinion has decidedly repprobated most of them. Still, sir, they continue to be disseminated among "the party," and every true liegeman is bound to receieve them as his rule of faith. Now, I must be allowed to notice one other matter. It is cer- sir, wherein consists the sin of the bank? She has spread tain that there have been large importations of specie into the antidote wherever the poison has reached; she has the country during the late winter and spring; and I have thrown light where it was sought to perpetuate darkness, heard it triumphantly announced on this floor as one of and the people have felt the influence of that light. the happy consequences of the President's measures. They have become acquainted with the great principles The gentlemen who used this language, if they knew of our constitution and of civil liberty, and have been no better, are grossly deceived. The whole amount sup-taught the danger likely to result from the unconstitutional posed to have reached our shores has been estimated at and alarming doctrines of "presidential protests." They about six millions; it has not probably been so much. This have acted accordingly, and the sin is visited upon the specie comes either direct from England and France, or bank: with what justice, I feel confident I can rely upon more generally from Mexico to New Orleans, and thence the people to say. to New York and Philadelphia., I intended, Mr. Speaker, to have said much more on |