DEC. 16, 1833.] Removal of the Deposites. [H. OF R. Congress, the Committee of the Whole House on the know it speedily, that they might begin to learn the state of the Union is the proper place for their discussion. names of the banks to which the Secretary had sent the We have heard it urged by all the gentlemen who have public money; for there was not one man in five hundred, spoken for a re consideration, that they have custom in beyond the mountains, that knew there were such banks their favor. Sir, with due deference I contend, that it in existence. has ever been customary to discuss such questions in the Committee of the Whole House. But, sir, there are other reasons why the discussion of this subject should not be delayed. A portion of the public treasure is yet safe; it has not yet been partitioned out; speedy action is not only necessary to secure what is vet safe, but to recover that which is in jeopardy. To show the probable fate of the publie money which the Secretary had distributed among so many banks, Mr. A. said he would ask leave to have read a report of the Secretary of the Treasury, showing the condition of what is called the unavailable funds in the Treasury. This experiment of depositing the public money in the State banks was tried once before, and here is the result, a clear loss to the people of this country of $1,423,546 20. But Mr. A. said he was opposed to sending this report From what has taken place, you may see what is likely to the Committee of Ways and Means, where the people to happen again. This jeopardy of the public funds in would not again hear of it for months. The gentleman so many obscure banks, which are wholly unknown and from Tennessee [Mr. POLK] has told the House the prin- unheard of by the great body of the people of the United cipal matter to be inquired into is the condition of the States, calls upon this House for speedy measures for State banks into which the public money has been scat- their recovery. Mr. A. said, the Secretary had placed the withdrawal of the deposites mainly upon the assumption that neither the present bank would be re-chartered, nor any other in its stead. Sir, is it necessary to have the report of a committee to inform this House whether a national bank will now or hereafter be established? It would take a very wise committee to make a satisfactory report on this point. Even the committee over which the gentleman from Tennessee [Mr. POLK] presides with so much industry, would have its ingenuity very much taxed by such a requirement. tered. Now, sir, this investigation will in all probability There are other reasons, said Mr. A., why no delay last until next spring. Does the gentleman mean to make should take place. Every mail that comes from beyond post-riders of this committee, and send them on a tour of the mountains brings intelligence that the action of the the United States, to make an actual inspection of the nu- Secretary on the public deposites is urged and pressed merous banks in which the public treasure is placed? on the people and the Legislatures as a reason for creaMr. A. said, from what had occurred, he presumed the ting State banks, and local independent banks. Sir, it is gentleman did not intend to rely upon the reports of the due from this House promptly to dispel this fatal delubanks themselves. He surely will not be satisfied until he knows the political character of the banks: whether they pay for printing documents: whether they will altogether constitute a political safety-fund for the control of the elections in this country. It is evident that much time will be consumed, if the vote be reconsidered, and this report sent to the Committee of Ways and Means. Sir, the shock which has been given to the securities of commerce and labor, by the movement of the Secretary, requires prompt action on the part of this House. It It is stated, sir, that the local banks are about to flood would be cruel, even for another week, to keep the West- the country with their trash, upon the credit of the deposern people ignorant of the measures which, if carried ites. This House owes it to this country, to stop at once into effect, will sap the foundations of their prosperity. the mischief of such a proceeding. sion; a delusion hurrying the people on to plunge themselves into scenes of distress similar to those through which they passed from 1815 to 1820. Without a permanent uniform currency, of equal value throughout the Union, labor, the foundation of all our resources, is not secure, the right of property is not safe. The whole loss of a depreciated currency ultimately falls upon the laborers. The benefits of a depreciated currency are reaped by shavers and brokers. Heretofore, sir, the public money, paid by the whole The gentleman from Georgia [Mr. WAYNE] has depeople of the United States, was used as a banking capi-manded of any one here to put his finger upon any one tal, and by means of the United States Bank and branches of the State banks selected by the Secretary, that did not was diffused throughout the whole Union, for the com-stand as high in the public confidence as the United mon benefit of all. States Bank. Mr. A. said he would not put his finger Now, sir, when it is proposed to take the common upon any one of them; that would look invidious; but he treasure, paid in by all for the common use, and devote denied that, collectively or individually, they possessed it to the exclusive benefit of the cities in which it is col- the general confidence. The notes of the very best of lected; on behalf of our constituents, who are to be thus them had but a partial credit and circulation. deprived of all participation in the use of their own mon- In conclusion, Mr. A. said he felt himself fettered by ey as a banking capital, have we not a right to ask that the subject should not be devoted to the secret scrutiny of any private committee, but that the same should be investigated at once in the open face of day? the restricted character of the debate. He regretted that he was not now at liberty to point out fully the effects of this measure of the Secretary upon the Western people; a measure that will concentrate the capital of this country in the Eastern cities, and make the West tributary to A great part of the revenue of the country is collected in the single port of New York. But of this revenue the brokers. Western people pay their full proportion. Now, if this Mr. SELDEN remarked that he was unacquainted with revenue, so far as it can be made to operate as banking the mode of transacting business in the House, and concapital, is to be taken from my constituents and given to sequently, with the effect which a reference to a Comthe people of New York, I should like them to know it.mittee of the Whole, or a select, or standing committee, Mr. A. said he wished no delay, he desired they should may have upon the subject-matter under discussion; know the worst at once, that they be prepared for it as that it was perhaps unnecessary that he should know, as well as they could. his remarks would be directed simply to the question of If our constituents, sir, are to be made tributary to the time. He said that he would observe, preliminarily, that Eastern cities, the sooner they know it the better. If the those who had taken part in the discussion had each ocpresent currency, which is of the same permanent value cupied the position which ought to have been occupied in all America, is to be broken down, and the notes of a by the antagonist. Those who desired a reference to a hundred local banks are to be substituted in its place, Committee of the Whole, were compeiled to consider the Mr. A. said that he desired that his constituents might report of the Secretary of the Treasury as containing a H. OF R.] Removal of the Deposites. [DEC. 16, 1833. true statement of facts, and that the conclusions drawn be considered official statements, that there were only by him were correctly drawn, unless the facts themselves five hundred thousand dollars in specie to redeem eiglit contradicted the conclusions: that in the Committee of millions of bank bills; and in the city of New York less the Whole, the report must be considered a record not than fifteen hundred thousand dollars in specie, to redeem liable to be impeached, except so far as error appeared bills to the extent of four millions. This last amount of upon its face. Those who asked a reference to a select specie was also liable to be drawn upon by banks in the committee, or the Committee of Ways and Means, (inas-interior, and individual depositors; so that, on the whole, much as those committees were resorted to for the pur- it might fairly be concluded that there was not one dollar pose of obtaining further evidence,) admitted that the in specie for every fifteen dollars of bank notes in the report itself was defective-that it did not contain enough State. He further stated, that it appeared, from the reto justify the action of the Secretary. He (Mr. S.) asked turn of the banks in the State of Massachusetts, that with these honorable gentlemen whether they wished to have a nominal capital of twenty-four millions of dollars, and a it understood to have it go forth to the people of this country that they were not satisfied with the report; that evidence had not been developed sufficient to authorize what had been done by the Executive department of the Government? If so, then perhaps they were right in pressing a special reference. corresponding amount of bank issues, there was less than one million of specie to meet the bills. Other sections of the United States, especially Pennsylvania, Maryland, and Virginia, in which the circulation of small notes was prohibited, might not present an equally unfavorable view. With facts such as are here presented, what would be Upon this part of the discussion he did not wish to de- the result of a panic among the holders of bank notes? tain the House. Ile considered the question of time a It would not be difficult to predict that a run upon the matter of vast importance. He had seen enough to know banks of a single day might produce the stoppage of spe that the effect of referring the subject to the Committee cie payments. Such a result might arise, although the of Ways and Means, was to postpone a final action upon assets of the different banks, no doubt, were sufficient, it from at least sixty to ninety days. The ordinary length in time, to meet their outstanding engagements. It is of commercial paper was less than the longest of these not easy to foresee the course of events in a feverish, periods, and the consequence of a postponement was to agitated state of the public mind; and, although a sum compel the merchants through the country to meet their equal to the whole amount of the public deposites might outstanding engagements, while the currency continued be lost by commercial disaster, by shipwreck or otherin the utmost uncertainty. Only two reasons had been wise, yet the enterprise and ability of our merchants assigned for this course. One, that the reference to the would be equal to the occasion, the effect would scarcely Committee of Ways and Means was the ordinary mode of be visible in the general operations of the country; but disposing of questions of this character: the other, that where apprehension and alarm are excited, either with or an immediate discussion in the Committee of the Whole without sufficient cause, the consequences can scarcely would delay other business presented for the considera- be measured. Those who have outstanding engagements tion of the House. As to the first, no question similar to to meet, without waiting the ordinary period for payment, that now presented had ever arisen since the formation withdraw their means from circulation; the banks reduce of the Government. It related to the entire disposition their issues; the usurer advances upon his prices, and of the public treasure, by the single act of an Executive complains of hard times; until the suffering merchant, officer. There could, therefore, be no practice or usage who, under ordinary circumstances, would be able to pay to control. To the other objection, it was a sufficient his debts as they become due, is reduced to bankruptcy, answer to say, that no subject would arise, in the course and the holders of bank notes seek security by demandof legislation, so important to the citizens of this country, ing their redemption. as the present. This should take precedence of every In order to illustrate this subject, it is only necessary other, and he hoped the gentleman from Tennessee who to allude to the period when the banks formerly suspendraised these objections, would unite with him in devoting ed specie payment. On the 25th of September, 1814, comwhatever time might be required for its settlement, how-mittees from the several banks in the city of New York ever much it may interfere with personal convenience. met, and unanimously resolved, that there was no necesThe information received from every quarter of the sity of suspending specie payment; notwithstanding which, country, especially the commercial towns along the At- on the 1st day of October, only five days thereafter, these lantic, furnishes convincing proof of the extreme pressure same banks were compelled to refuse the redemption of upon the money market; to relieve which, so far as the their bills, and nearly three years elapsed before the curpower existed in this House, demanded our immediate rency of the country was restored. and unremitting attention. It was perhaps a matter of If a run should take place upon the banks, Mr. S. no great moment, so far as related to this pressure, whe- could not see from what quarter relief was to be obtained, ther the funds of the Government should remain in the within the period when we may expect the report of the local banks, or be restored to the Bank of the United Committee of Ways and Means; and were it permitted, States; but it is a matter of serious importance that the in this stage of the discussion, to show the state of the question should be speedily and definitely settled. Doubt silver market abroad, he thought it would appear manifest and uncertainty every where prevail. Information by that no relief could be expected from other countries at letters, and the daily state of the stock market, afford this time. convincing evidence that the present state of things was There is one other point to which, for a moment, Mr. pressing most severely upon the commercial interests of S. wished to call the attention of the House. He alluded the country. When it is considered that our currency to the mischief which might arise from carrying on a seconsisted entirely of bank notes, which have been issued cret investigation before a select or standing committee, to an unexampled amount, supposed to be founded upon whereby that knowledge would be withheld, which, in a specie capital, applicable to their redemption, when case of a discussion in Committeee of the Whole, would the large proportion which the one bears to the other is be communicated from day to day to the public-specuconsidered, the danger which threatens us may in some lations would be founded upon secret information, and degree be foreseen. stockjobbers would reap their profits, at the expense of Mr. S. remarked, that he was unable to speak with the community at large. Let me not, said Mr. S., be mis any accuracy as to the situation of the banks in other sec-understood: it cannot be supposed that a committee of tions of the country, but relative to those in the interior this House would intentionally communicate intelligence; of the State of New York, it appeared, from what might but I know the diligence and enterprise of dealers in CHIO STATE UN DEC. 16, 1833.] Removal of the Deposites. [H. OF R. It was money, and the subject now under consideration could there was presented in the report, in support of these [Mr. CLAYTON here rose and said, that he had been misapprehended-he did not insinuate any thing to the prejudice of the State banks. ] Mr. BEARDSLEY said, that he possibly might have mistaken the honorable member, but the same opinion had been on that day assigned as a reason why the House was bound to proceed to immediate action on the subject; that we should not want the slow movement of a committee, but at once decide for ourselves. But the Mr. BEARDSLEY asked the indulgence of the House, very reasons so urged for immediate action, were, to him, while he should submit to them a few brief remarks, the strongest possible for adopting an opposite course; and in which he would not touch upon the merits, but that the subject should go from the Committee of the would confine himself to such points as were at issue in Whole to a standing committee; that all the reasons and the discussion. The act incorporating the Bank of the facts should be fully investigated where they alone could X United States had declared that the moneys of the United be-where they could be inquired into-and where a reStates should be deposited in that bank and its branches, port could be made as to their truth. It was admitted unless directed by the Secretary of the Treasury to be in the previous debate, by the honorable member from otherwise placed, in which event he is required to report Pennsylvania, [Mr. BINNEY,] that documents from the his reasons to Congress for such discretion. That officer Secretary of the Treasury were usually referred to the had, in the performance of the duty thus assigned him, standing or select committees, and not to the Committee removed these deposites, and placed them in certain State of the Whole. What reason was there given that this banks, and he presents to that House his reasons for so do- usual course should be departed from? He would maining. This report, however, without any apparent consid- tain there was none whatever. Why was immediate diseration given, and most certainly without discussion upon cussion necessary? It was said by one honorable memit, was referred to the Committee of the Whole on the ber, that there should be an immediate discussion and state of the Union, and under these circumstances a mo- decision to vindicate the authority of this House, and tion was made to reconsider that vote, in order, by refer- that the restoration of the deposites ought to be at once ring it to a standing or select committee, to bring the ordered by the House. This, to him, was extraordinary subject under the control of the House, when the House language, and a most extraordinary proposition. He will be enabled to dispose of it after due and deliberate would ask, what authority of that House had been violadiscussion shall be had by them upon such matters in it, ted? The House had, singly, no power to act upon this as, in their judgment, shall be deemed fit and proper. subject. How could they interfere, except as a compo An honorable member, when the subject was brought nent part of the Legislature, however it may act? Cerup, said that the vote upon which the reference of the tainly only by the passage of a law, could it contribute question to the Committee of the Whole was obtained, towards the restoration of the deposites: in this way was assented to under a misapprehension of what had been only vindicate its authority. He also understood the honsaid by the honorable mover of that reference [Mr. Mc-orable member from Pennsylvania to maintain, that ConDUFFIE] as to his objects. Under such circumstances, he gress had only to exercise an appellate power from the would have thought that, as a matter of course, and by decision of the Secretary of the Treasury; that Congress common consent, there would be no hesitation to recon- cannot look to other reasons than those assigned, to influsider a vote so obtained; and thus the subject would be ence its course on this occasion: but this view seemed to brought forward for their deliberate consideration. But him to be rather technical, and could not be sustained this, it seemed, was not to be the course taken with this upon any adequate ground. question; but rather, if there was any advantage gained It was further said, that the bank, by the charter, had by the reference, that that advantage ought not to be assented that the Secretary might decide upon the subgiven up, or parted with, without a struggle, and the ject, and that Congress might renew that decision, upon House must therefore pass upon it. those grounds alone, which had been advanced by the In reviewing the report of the Secretary, it appeared Secretary. But he could not find such limitation given to have been given upon two essential and distinct sub to the power of Congress in any part of the charter. The jects; one was, the propriety of the removal of the pub-charter gave the unqualified power of removal, and it relic funds from the bank; the other was, the propriety of quired him to report his reasons. But could Congress placing those funds in the particular State banks which be confined to those reasons? Admitting their insuffihad been selected by the Secretary for that purpose; and ciency, yet if other good reasons existed for the removal, H. OF R.] Removal of the Deposites. [Dec. 16, 1833. would Congress restore the deposites? It would, if the an out-door committee than in the House; such, for ex argument was correct, not otherwise. It had been also ample, as the solvency of the banks which the Secre argued by one of his colleagues, [Mr. SELDEN,] that it tary had selected as places of public deposite. For was important to decide this question as others were, and himself, however, he desired no such inquiry, as he be if not, that even within the short space of ninety days, lieved that those banks were perfectly solvent. But there much ruin would ensue. However important it was, and were other matters in the report which involved great and he admitted it was important to have a final decision, yet important principles, in relation to which there was no it could not be expected that any law could be passed to want of the action of any private committee whatever. For authorize the removal within that space of time, and he instance, there was the question of the currency. Where rather thought such immediate action unnecessary and or when could a question of that kind be more properly uncalled for, inasmuch, as far as public opinion went, the discussed, than on this floor, at this time? We need no deposites were gone from the bank-the die was cast- committee, said Mr. G., to report to us on that subject. they would never be restored to that institution. And It was one with which we are all acquainted; or, if we the great agitation said now to prevail, if existing in the are not, we ought not to be in this Hall. The Secretary large cities, did not extend to the country at large. For had informed the House that he should be able to supply these reasons, he (Mr. B.) was induced to vote for the to the country a circulation of nineteen millions of dolmotion to reconsider, and could not, with the member lars, while at the same time he removed the deposites, from Georgia-with whom, upon most questions relating and thereby compelled the Bank of the United States to to the bank, he had so often heretofore acted-now say withdraw its paper. that, although he held the bank to be unconstitutional; al- It was for the House to inquire, Mr. G. said, whether though he believed the public deposites to be unsafe; and the Secretary was able to do all this? A great deal had although he knew nothing about the State banks which been said against the Bank of the United States for with had been selected, yet, that he believed the public mon-drawing its accommodations, and thereby occasioning eys to be as unsafe as they would be at the bottom of commercial embarrassment. There was one great rea the Potomac, and therefore would vote to restore them to son why the discussion should be entered upon at once. the United States Bank. Every body knew that it was in the power of the Bank Mr. GORHAM rose to address the House, and, in of the United States, in the course of ninety days, to reply to the suggestion of friends around him that he cause very great distress, if not general bankruptcy, in had better more an adjournment, said that he had but the trading community. Now, it was no more than fair, few remarks to make, and he might as well make them and it was good policy, to let the banks know on what now. It seemed, he said, to be a general admission they had to calculate. If the place of deposite was to on all sides of the House, that the question of sending this be permanently charged, and the transfer of the public paper to a select committee or to one of the standing com- funds was to proceed and be completed, let it be done mittees of the House, rather than to a Committee of the in good humor; and, above all, let the question be setWhole, was a question of delay. It amounted in fact to tled. Mr. G. did not reflect upon the Executive departhe question whether the House should or should not ment. He meant no hostility to the President: he had come to a prompt decision on the subject of the report of no sort of doubt that that officer sincerely believed the the Secretary of the Treasury. On one hand, it seemed new plan would be most conducive to the public good. to be desired that the discussion should be delayed; on But, if the temper in which the bank had been assailed, the other, that it should be entered upon immediately. he did not say by the President, but by others, was to Mr. G. said he did not know how others felt, but for him- continue-so long as that course of things existed-the self, he was satisfied that, if not the whole, at least the effects could not but be felt by every man whom he adfar greater part of the Secretary's letter could be discuss-dressed, and by every man in the country. The great ed at this time as well as any other, and ought to be. question, the practical question, was, What is the effect The Secretary of the Treasury had assumed the power of of such a state of things on the community? Gentlemen removing the deposites under a clause of the bank char-ought to look at facts before them. If, said Mr. G., we ter; a law which had been on the statute-book for sixteen or should send this report into a committee, where it would seventeen years past, and which every gentleman had had remain for ninety or a hundred days to come, and the an ample opportunity to know and understand. A great country should be left in the excited and irritated state in financial officer of the Government, placed by the consti- which it is at present, who on this floor is prepared to an tution at the head of its fiscal affairs, had undertaken, in swer for the blow that would be struck on the prosperity virtue of his official authority, to remove the public mon- and safety of the country? eys from the Bank of the United States, not on the Gentlemen, he said, had witnessed the assault which ground that they were unsafe there, nor that any difficul- had been made on a distant Southern branch of the Unity existed in transmitting them from one part of the coun- ted States Bank which had been supposed to be feeble. try to the other, whenever and wherever the exigencies Three hundred thousand dollars of bills of the Savannah of the Government required, but on principles of polit-branch had been sent on from New York, and presented ical kind altogether. in one day. Happily, the bank had been in a condition Now, Mr. G. asked every man to put it to his con- to meet the demand, (and, in passing, he might ask, which science, and say whether he believed it had ever been in- of the State banks would have been able to meet a similar tended to clothe that officer with any such power? He demand?) But, if such a course of proceeding was to be had been appointed as a financial officer of Government, persevered in, and similar attempts were to be made on and in that capacity only; and when such an officer un-other branches, as, for instance, the branches at Pitts dertook to act in his official duty on political grounds, it burg, Cincinnati, and Louisville, while the whole subject was a question that never should leave that House till the was sent out of the House into a committee, who could House had given its solemn decision on such a course. A answer for the effects? Who could describe the general select committee was the very last to which Mr. G. would panic that would pervade the commercial community! submit a question of this kind. There were other mat-Those distant branches were not usually furnished with ters in the Secretary's report; such, for instance, as re-large amounts of specie, because it was not there that lated to the three per cent. stock, on which it must be specie was required, and it would be easy for one of the admitted by every one, that the House was as capable of favorite banks to strike a blow which must be felt on the judging now as at any future time. There were, no credit of the whole country. For every one acquainted doubt, some questions which could better be examined by with the nature of public credit must be aware that a blow DEC. 17, 1833.] Removal of the Deposites. [H. of R. on any one bank was a blow upon the whole. They form- would be had by referring it to a standing committee, ed an electric chain: the least spark was transmitted than even if it was to remain in Committee of the Whole throughout the whole. Who could describe, or even con--the effect of which would be, by the flood of speeches ceive, what would have been the state of alarm, of uni-that would be there made upon one side and upon the versal panic and dismay, had the branch bank of Savan-other, rather to darken than enlighten the public mind nah been unable to meet the demand upon it? There on the merits of the great question itself. would at once have been a rush upon every bank in the Mr. BURGES and Mr. CLAYTON rose together, but country. Not a State bank but would have been called Mr. B. objected to Mr. C.'s addressing the House, from upon by every farmer and every mechanic who held its his having spoken on the question before. paper. It would have gone through the land like wild-fire The SPEAKER decided in favor of the former genand what must have followed? There are not less than tleman, and Mr. BURGES then moved an adjournment, two or three hundred millions of paper now afloat in this which was carried. community, while there is in specie but a comparatively small amount to redeem it. Do gentlemen say, Then you are bankrupt? Mr. G. said he should answer, No. The TUESDAY, DECEMBER 17. foundation on which the value of all this paper rested, this morning, by Mr. PATTON, as to the accuracy of A question was raised, on the reading of the Journal was the public confidence. As long as that confidence the Journal statement of the vote of yesterday upon a remained, the value of the currency was unimpaired. motion of his; which gave rise to some conversation beBut the confidence must be universal. It must extend ween him and the CHAIR. from the mechanic and day laborer, up to the man of highest financial attainments. The moment it was touched, no human power could prevent the consequences which must follow. After which, Mr. POLK, from the Committee of Ways and Means, reported a bill making partial appropriations for the support of Government; which was twice read and committed. the Treasury's annual report upon the finances; which The SPEAKER laid before the House the Secretary of was referred to the Committee of Ways and Means, and ten thousand copies thereof ordered to be printed. REMOVAL OF THE DEPOSITES. But upon what was this confidence in the banks founded? Was it on the belief that they could pay specie at once for all their notes? No: but that they had not issued their paper without possessing good and sufficient security, in specie, and in the business notes of men in good credit, for the whole amount. Whilst this confidence lasted there was no need of specie, and, in fact, specie The motion of Mr. PoLK, to reconsider the vote by was never employed, except to pay balances of paper. It which the report of the Secretary of the Treasury upon was with no view of embarrassing the administration-the removal of the deposites was referred to the Commitnone at all, that he opposed the reconsideration. It was tee of the Whole, coming upbecause this subject must be discussed; delay was ruin- Mr. BURGES, who was in possession of the floor from ous. Let Congress act one way or the other. If it was the previous day, after apologizing to the honorable memtheir pleasure to sanction the act of the Secretary of the ber from Georgia, [Mr. CLAYTON,] for having interrupted Treasury, let the bank understand this, and deliberately him, said that, from various reasons, he was induced to make its arrangements with the least difficulty possible. decline addressing the House, and would now yield the If the House judged otherwise, and it intended to cen-floor to him. sure the Secretary for removing the deposites, the sooner Mr. CLAYTON then rose for the purpose of vindicait acted, the better for all parties. ting himself from what he conceived a misrepresenta He heard a gentleman ask, what authority the House tion on the part of Mr. BEARDSLEY. That gentleman possessed over the Secretary, in the matter? He replied, had charged him, he said, with inconsistency, in conthat the authority of that House lay in its power to ex-sequence of his taking this position; that, although he press the public opinion. If the House, by its vote, gave was opposed to the Bank of the United States, and did an expression of the public will, and the Secretary ad- not view the public moneys as safe in that institution, he thered to his private opinion, in opposition to it, then he disapproved of their removal to State banks, of which he supposed it would be necessary to pass a law; and, if the knew nothing, but which be held to be still more unsafe Secretary still refused compliance, it would remain for than the bank from which the deposites had been taken. the House to take such measures as the constitution should Mr. C. denied that there was the least inconsistency in warrant and require. If the House decide against the holding and avowing such an opinion. He did not beSecretary, it had better be done now than four months lieve the public money perfectly safe while in the keeping hence, when he had gone on to complete the arrange-of any corporation, whether for banking, for roads, caments with all the various banks through the country to nals, or any other purpose; yet, he might very consistreceive the deposites. ently believe it more unsafe in the hands of some of these Mr. G. concluded by observing, that he cared compar-corporations than of others. As to the State banks, they atively little which way the House should decide this might read their fate in the treatment which the Bank of question, but that the public safety, and the well-being the United States had received. of the country, required that what they did they should The moment their directors should conclude it due to the interests of their stockholders to make any publica do at once. Mr. POLK replied briefly to the arguments adduced tions illustrative of the condition of their affairs, especialagainst his notion, and maintained that the principles ly if the tendency of such publications should be susnow claimed by the present Secretary of the Treasury pected of having the remotest bearing on any pending were the same upon which Mr. Secretary Crawford had election, they might calculate on having the public money acted, and justified his former removal of the public mon- immediately taken from them, and every attempt made to eys from the bank; that so far from the State institutions ruin them; and, as their capitals were smaller, they could being insolvent, or weak in public estimation, that he not stand the same pressure. Besides, the Government found their respective stock bore, at market, higher had a partial control over the Bank of the United States, prices than the stock of the United States Bank did in all having given it its charter, and retained a share in its di the Eastern cities, which he would take as the best possi-rection; but over the State banks it had no such control. ble thermometer of the public confidence in those insti- They were, therefore, obviously a less safe place of detutions. He desired to bring this preliminary debate to a posite for the public funds. close, feeling perfectly satisfied, that an earlier decision | Mr. C. insisted that a Committee of the Whole was the VOL. X.-138 |