190

REPORT OF THE RANK OF THE UNITED STATES.

Funded debt,

Loans, viz:—

[SEPTEMBER

51,897 07

$53,504,196 99

DISTRIBUTION.

13,020,469 27

22,072,405 46

Personal security,
Funded debt,

Domestic Bills,

67.928 13

2,713,760 30

Debt of Smith & B. 1,357,157 23.
Foreign Bills,
Bank Stock,
Mortgages,

From this it will appear, that the purchases of bills Profit and loss, of exchange, amount to more than forty four millions, the drafts issued by the Bank and the Branches on each other exceed forty-two millions; and the transfers on account of the Government were upwards of twelve millions. If to these be added the amount of bills not purchased in the first instance by the Bank but collected through its agency, the aggregate will represent an actual movement in the business of the Union, much exceeding one hundred millions of dollars. This has been conducted at a very moderate expense, and with a facility which has caused so large a displacement of funds, to be almost imperceptible in any of the interests of the community. More experience and a greater mass of operations may enable the Bank to reduce still further, even these slight charges; but should it be able only to retain them at their present rates, it will have accomplished all that is necessary or perhaps desirable. 3d. The influence of these measures on the country has been in every stage of them eminently salutary.The substitution of a sound currency for a depreciated and irresponsible circulation, which was hastening to involve in confusion, all public and private interests, is of itself an advantage, which can scarcely be over-estimated, conferring as it does, stability on property, and security on all the rewards of industry; while the interior commerce of the whole Union is relieved from the oppressions of a multifarious and fluctuating paper money, requiring at each step some new sacrifice which, however, disguised, fell ultimately as a charge on the productive industry of the country. The means, moreover, by which these objects have been attained, the

restraint on the over issues of other institutions-the ex

tensive operations in domestic and foreign exchange-the bringing of the institution into immediate contact and sympathy with the real business of all parts of the country, are in themselves direct and positive benefits to the community. They form too the natural occupation of a Bank of the United States, which divested of all local influences and interests, finds its appropriate sphere in facilitating the commerce of the States with each other and with foreign nations. Accordingly, it may be assumed with safety, that there has never been in the history of this country, any period when its monied concerns were more steady and equal-its interior trade transacted with more economy and convenience, and the necessary fluctuations incident to its foreign commerce less sensibly felt, than during the last eight years. This term is sufficiently long and various to test the efficacy of the system. It embraced a period, when, in addition to its habitual causes of fluctuation the monied system was disturbed by the reimbursement of many millions of the public debt, a great portion of which was to be remitted to Europe, and more especially it included the year 1825, one of the most critical in our own -history, and probably the most disastrous to the banking system of England.

Due by banks, &c.
Real estate,
Bonus, premium, &c.
Banking houses,
Notes of state banks,
Specie,

24,599 76 5,974,725 SO 8,000 00

-32,218,876 68

1,650,869 73

587,102 38 1,180,880 00 834,922 15

664,642 56

3,346,434 22

$53,504,196 99

State of the Bank August 1st, 1831.

11,545,116 51

$82,165,578 89

Due from sundry offices and banks,
Expenses, &c.
Banking houses,
Notes of state banks,
Specie,

4th. Having explained the effects of this system on the currency, the exchanges, the state banks, and the community, it remains to show that these purposes have been accomplished without any sacrifice of the interests of the Stockholders, but that the bank itself has shared The analysis of these statements will present the folin the benefits it communicates. This will be perceiv-|lowing differences in the situation of the bank at these ed by contrasting the present state of the institution, respective periods: with its condition at the triennial meeting of 1822. Its situation at these respective periods was as follows: State of the Bank August 30, 1822.

There have been several notices in the late papers of unusual appearances in the sun and moon. A gentleman who recently travelled up the Susquehanna, has given us this communication:

That on Thursday afternoon (the 4th Aug.) at about 5 o'clock, the sun assumed a violet hue. There was a thin cloud overspreading the sky at the time, through which the sun shone, but with a lustre so diminished, that it was not the least painful to gaze upon its disk with the naked eye. My attention was first attracted by the reflection of the sun in the river as I rode along the bank. I pointed it out to others, who were equally struck with the phenomenon; and it was observed throughout a considerable extent of country, as I learn ed by conversing with other travellers. Violet, it is known, is one of the seven original colours, into which each ray of solar light is divisible; and it is the least refrangible of the whole number. The interposing cloud may have been of that tensity, which was sufficient to break, divide and turn the sun's rays as they were transmitted through it,precisely to the extent which was sufficient to exhibit the violet colour to the eye of the ob

server.

The ruddy aspect of the sun, in the morning and near sunset, is quite usual and is to be accounted for in a similar manner.-Lancaster Miscellany.

Anthracite coal used in burning brick.-At the Brick kiln of Wm. Everhart, Esq. in this Borough, an experiment has recently been made of using Anthracite coal, in aid of wood, in burning brick. At right angles with the flues, and about four feet above the top of the arches, holes 4 inches square and one foot apart, were left running from the back side of the kiln to the front. In these there were laid pieces of Anthracite weighing from half a pound to a prund each, and the whole put in the kiln was one ton. Ordinarily they burn about 80,000. At the time of making the experiment 10,000 were added, making 90,000. The experiment was highly satisfactory. Mr. Miller, the superindent, men. tioned to me that he tried it reluctantly, having little faith that coal, so disposed, could do any good; but as Mr. Everhart desired, he determined to try it. He, was agreeably disappointed; the effect was greater than he could have imagined. The Brick he said was better burnt than in the ordinary way. There was a saving of wood fully equal to the cost of coal used, and ten thousand additional brick were burnt. Thus, every month, some new proof is produced of the value of this exclusively Pennsylvania mineral.-Village Record.

OUR RAIL ROAD.

We had the pleasure of a trip, not on, but along the whole line of the Rail Road, on Wednesday last; and

we were not a little surprised to find the different sections so far under way. It really appears to us, almost impossible, that so great a proportion of work, could have been performed in so short a period, even with the numerous hands now employed. Immense excavations as well as embankments have already been made, and the work upon the whole line with very trifling exceptions, which is let under contract, presented a scene of activity and bustle, altogether novel to us. We were informed by those who have contracts, that there was not the remotest doubt, but that the first five miles of the road would be completed by the 1st of December ensuing. The grading, as was further stated, would be completed in probably five weeks from that time-which would take it to nearly the middle of October: there would remain then, say seven weeks, to lay the rails, &c.-Germantown Telegraph.

[SEPTEMBER

and Monongahela rivers. This yard occupies precisely the site of the old French Fort Du Quesne. On Saturday last the first boat was launched from it. She is of 250 tons burden, owned by Messrs. Allen, Grant and Stone, and her name happens to be the Napoleon.-Pitt, Gazette.

crat is issued in a half sheet, in consequence of the The last number of the Downingtown (Pa.) Demosickness of most of the members of the establishment. The editor remarks-"At no period, it is said, for the last 7 years, has so much sickness been known in our village-almost every family has one or two, and in beds, of parching, burning fever-as yet, but few deaths some instances 4 and 5 of its members confined to their have occurred, though there are many severe cases.The sickness appears to be chiefly confined to this neighborhood.-Phila. Gazette.

DIED-In York county, Pennsylvania, at the residence of her son, N. J. Fulton, Mrs. FULTON, aged about 100 years.

This aged matron was born in Montgomery county. After her marriage, she lived some time in Philadelphia, where her husband was extensively engaged in mercantile affairs, from thence she and her husband retired to York county, where she died.

THE REGISTER.

SEPTEMBER 17, 1831.

BANK OF THE UNITED STATES.-In the present number will be found the able and very interesting report of the Directors of the Bank of the United States to the Stockholders. Such an exposition, we should suppose, ought to satisfy every reasonable mind, of the immense importance of this institution to the country, the government and indeed every individual of the community-and that its destruction would be attended with

the most ruinous consequences,

The report of the stockholders approving of the management of the institution, by the Directors; was published in our last number; page 163.

Fruitful Settlers.-In one vessel lately-arrived at this port from Havre, came 26 German or Swiss families ages-of whom 28, or 14 pairs, are Twins; and of these -consisting of the parents, and 103 children of various Twins, six pairs are the production of three families.— The following are their ages :-1 pair 4 years-1 pair 10 years, (same family)—1 pair 23—1 pair 41, (another family,)-1 pair 1 year-1 pair 4 years, (3d family,) —1st pair, 1 male, 1 female-2d pair, both females-3d pair, both males-4th, 1 male 1 female-5th and 6th pairs, all females. Of the 14 pairs, 5 pairs were all male-5 pairs were female, and 4 pairs were male and

female.

Three other vessels from the same place had each two pairs, and one other vessel four pairs on board.

Printed every SATURDAY MORNING by WILLIAM F. GEDDES, No. 9 Library Street, Philadelphia; where, and at the PUBLICATION OFFICE, IN FRANKLIN PLACE, second door back STEAM BOAT BUILDING.-Messrs. Ephraim and Sam-ceived. Price FIVE DOLLARS per annum, payable annually of the Post Office, (back room) subseriptions will be thankfully reuel Frisbee have recently erected a yard for building by subscribers residing in or near the city, or where there is an steam boats, at the point of confluence of the Allegheny agent. Other subscribers pay in advance.

HAZARD'S

REGISTER OF PENNSYLVANIA.

DEVOTED TO THE PRESERVATION OF EVERY KIND OF USEFUL INFORMATION RESPECTING THE STATE.

VOL. VIII.-NO. 13.

EDITED BY SAMUEL HAZARD.

PHILADELPHIA, SEPT. 24, 1831.

BANK OF THE UNITED STATES.

NO. 195

my opinion, it has been the result of experience, and prompted by a belief that such change would give

Highly interesting Correspondence between Silas E. Bur- strength to the system, and not weaken or endanger it. rows, Esq. and the late ex-President Monroe.

Letter from Mr. Burrows.

NEW YORK, Jan. 7th, 1831.

My Dear Sir:-Believing myself in your estimation one of those friends whose motives and conduct since I had the honor of first becoming acquainted with you, cannot be mistaken, I take the liberty of trespassing on your goodness to obtain information which cannot be as satisfactorily received from any other source.

I am sensible our country will be happy in hearing those opinions which emanate from the revolutionary Patriot who shed his blood on the battle field, and who presided for eight years over the destinies of our country, during which period every blessing was possessed by our happy land. Will you be so kind as to give me your sentiments relative to the effect of the U. S. Bank on our national currency, and what your opinion is in relation to the renewal of its charter? The situation in which the Government was placed without its aid during the last war? its general advantages in regulating exchange, facilitating the remittances of Government and individuals from various parts of the Union, and generally its importance connected with the best interests of our country? I am, &c.

SILAS E. BURROWS,

Letter from Mr. Monroe,

NEW YORK, January 20th, 1831. Dear Sir:-The confidence I have in your rectitude and patriotism, will induce me to give an explicit answer to the general interrogatories contained in your letter of the 7th, though I fear that my continued weak state of health will make it less satisfactory than it otherwise might be, especially as I have none of the official documents with me which are calculated to illustrate the subject.

You ask me what is my opinion of the effect which the United State Bank has on the national currency and as to the policy of renewing its charter? what the situation of the Government without its aid during the last war? -what its general advantages in regulating exchange, in facilitating remittances to individuals, and its general importance?

Between such a Bank, and any arrangement which the Government can make, the alternative must be between a Bank of the Government itself, and under its exclusive control, a reliance on its own resources and surplus funds, deposited in a manner to produce the best effect, and a dependence on the Banks of the several States. I have no hesitation in declaring it as my decided opinion that neither of these could accomplish the great objects comtemplated, and that each of them is liable in other respects to the most serious objections. To a bank of the Government, this remark is applicable in both views, and with peculiar force in the latter. If confined to the metropolis, it could not extend its discounts beyond a very limited circle, nor its agency as a deposit for the revenue received in the several Statesnor for remittances to individuals-and for other objects it would be equally limited. Such an institution requires an active supervision by those for whose benefit it is intended. The regular official duties of all the Departments in the Executive render it impossible for that Branch to perform that service without an interference with those duties to the injury of the public. If branches should be established, their position might enable them to remedy some of the defects stated, but they would accumulate others of much greater force. The interference with the constitutional and regular duties of the Executive would, in the same degree, be increased. But that is comparatively a slight evil. A Bank thus instituted being under the control of the Execu tive, by the appointment of its Directors, and in all its operations, might in the hands of a bad administration, be wielded as an instrument to sap the foundation of the Government itself. Appeals would be made to the Government from every part of the Union, for its influence in obtaining discounts, and thus a seduction might be practised to a great extent for the worst purposes.The influence would be reciprocal. Those connected by such a tie with the Government would be looked to for support at elections, who would not fail to render it. Thus the revenue of the nation, raised by taxes on the proper object, to support their free Government, might be made an instrument to its overthrow.

The second alternative suggested, a reliance on the surplus funds, for the accomplishment of the objects contemplated, it must be obvious, must fail in every instance. The revenue of the Government is generally limited to certain specified objects, according to an esti When the old United States Bank was first instituted, mate for each, and to which it is appropriated. The I was one of those who voted against it in the Senate. funds raised, sometimes falls short of the object. It selI doubted the power of the Government under the Con- dom exceeds it in any considerable amount. For the stitution to make such an establishment, and was fearful want of a surplus it must be idle in the Treasury until that the influence which it would give to the Govern- appropriated, and if appropriated as a provision for an ment over the monied concerns of the Union, would immergency, for war for example, it must still lie idle have a very improper effect on our free system. The in the Treasury, until that event occurs, or be loaned Bank was instituted soon after the Government was out. It could not lie idle. The whole nation would revolt adopted, and at a period when the question of the rela-against it, and if loaned out, it might be impossible to tive powers of the two Governments excited great feel- obtain it when called for, and might even be lost. In ing, and divided the Congress and the Union into very this mode, the regulation of the value of the currency of jealous and violent parties. I was of that party which exchange, and of rendering service, by facilitating reconstrued the powers of the National Government mittances, would be abortive. The third alternative strictly, and sought to impose on it correspondent re-which has been suggestsd, a reliance on the State straints. So far as any change has since taken place in Banks, would be equally unproductive. The GovernVOL. VII.

25

194

THE UNION.

(SEPTEMBER

the state of the country, and the funds, when I entered the Department of War.

ment would require no aid except in time of war when immense sums would be necessary, which could be procured only by loans, and when application should be made to them, there is good cause to apprehend that each would endeavour to obtain the best terms it could. There is no particular bond between them and the National Government, and, impelled by their interests and that of the Stockholders, it is natural that they should pursue that course. Should such an emergency arise as menaced the overthrow of the Government, the inter-place a few days after I entered the Department, no est thereby excited might be paramount, and force the Banks, under the direction of the Stockholders, to unite in a common effort to save the country. But the great object is to prevent such a crisis by a command of funds, which would enable the Government to arrest it. In every other object the State Banks would fail. There being no standard to which all must adhere, no connection between those of the different States, and many of them with limited funds, and in embarrassed circumstances, they would neither regulate the value of coin, of exchange nor facilitate remittances.

Under such circumstances, an appeal was made to the patriotism and interest of the cities, and banks with. in them, by the Department of War, with the sanction of the President, for loans of money necessary for their own defence, for that of the maritime frontier, and the Union. For the first loan that was obtained, one million of dollars from the city of New York, which took price was fixed. As the Treasury Notes were selling for $80 in the $100, that was claimed, but not acceded to. It was left for subsequent adjustment, to be settled on fair principles. Several millions of dollars were obtained from the District of Columbia and principal cities throughout the Union, and, according to my recollection, at par. This proves that until the Union is threatened with ruin, no loans can be obtained in emergencies, without a National Bank, otherwise than at a great sacrifice. These considerations led to a change in my opinion, and induced me to concur with the A National Bank occupies different ground. Con- President in the propriety of instituting such a bank afnected with the Government by its charter, and its cap-ter the conclusion of the war in 1815. As to the conital, which consists of stock, in which the Government stitutional objection, it formed no serious obstacle. In participates in a certain degree, there is no instance in voting against it in the first instance, I was governed eswhich, on principle, there can be a difference of sentially by policy. The construction I gave to the Coninterest between them, and many powerful consider-stitution I considered a strict one:-In the latter inations by which the interest of the Bank must stimulate stance, it was more liberal, but, according to my judg it, to support the credit of the Government in any situ- ment, justified by its powers. ation in which it may be placed. If the credit of the The above sketch contains my sentiments on the substock should sink, the capital of the Bank would de-ject of your several interrogatories, which I communicline in equal degree; the effect of which would be felt cate to you not for public view, but in a spirit of confi in all its operations, Its paper would depreciate, and a dence. Since my retirement I have sought to avoid all check be given to its circulation, if not an entire sus- political controversies. Having concurred with the pension. Standing at the head of the monied opera- President in the propriety of instituting the latter Bank, tions of the Government, it is its intermediate agent in my opinion was not withheld, and is I presume known, making remittances to Banks and individuals through-as that it remains unaltered. Should a justification of out the Union, and likewise between individuals, from my conduct for the change of sentiment in the interval which much credit and influence are gained, if not prof- between the institution of the first and second Bank be. it. It has the means, and may be considered as the come necessary, or any other appeal is made, to make most powerful agent in raising and sustaining the circuit a public duty to explain the cause of that change, I lating medium on a par with specie throughout the shall not withhold it. I shall be attentive to the course Union, and of elevating the State Banks to that stand-of events, and not fail to perform that duty, should eithard, by subjecting them to the necessity of reaching er call be made on me. and adhering to it, to sustain their credit, and even their existence. Let the credit of the Government sink, and all these advantages are lost. The Bank, therefore, from a regard to interest, is bound to sustain it. The Directors, except the few appointed by the Government, are elected by the stockholders, and are amenabletothem. It gives its support therefore, to the Govern-RESOLUTIONS RELATIVE TO THE UNION. ment, on principles of national policy, in the support of Resolved, by the Senate and House of Representatives of which it is interested, and would disdain becoming an the Commonwealth of Pennsylvania in General Assembly instrument for any other purpose. met, As the sense of the Senate and House of RepresenThe view above presented is supported by experi-tatives of this commonwealth, that, the constitution of ence, and particularly by the events of the late war.When the war commenced, the government had not the funds which were necessary to support it, and was in consequence forced to resort to loans, which were with difficulty obtained from any quarter, even in a limited degree, and on unfavorable terms. I have not the offi-cial documents before me, and cannot state the sources from which any loans were obtained, nor the conditions, with the decline of the public credit as the war adyanced. I well remember, however, that when I was called by the President to the Department of War, on the 31st of August, 1814, the Certificates of the Treasury were selling at $80 in the $100, by which $20 were lost. It was evident that if a reliance was placed on the sale of Certificates only, that a still further decline would ensue, and that the worst consequences might be apprehended. The country was invaded through the whole land and maritime frontiers, and powerful squadrons were at the mouth of every bay and river leading to our principal cities, which were threatened with attack and ruin. The metropolis of our Union had been forced, and its public buildings destroyed. Such was

I am, dear sir, with great respect and sincere regard,
yours,
JAMES MONROE.
SILAS E. BURROWS, Esq.
New York.

these United States, having proved itself by near half a century's experience, a government beyond all others, capable of promoting rational liberty and the general welfare, it must be preserved.

2. Resolved, As the sense of the Senate and House of Representatives, that the constitution of the U. State authorises acts of Congress to protect manufactures, and that the actual prosperity of the country attests the wisdom of such acts.

3. Resolved, As the sense of the Senate and House of Representatives, that any diminution of the protec tion now afforded to iron would be impolitic and injudicious legislation.

4. Resolved, As the sense of the Senate and House of Representatives, that the constitution of the United States authoris: s, and experience sanctions, the twen ty-fifth section of the Act of Congress of September one thousand seven hundred and eighty-nine, and all others, empowering the federal judiciary to maintain the supreme laws.

5. Resolved. As the sense of the Senate and House of Representatives, that whereas the Bank of the Uni