SENATE.]

ranged and unsound currency.

Maine Petitions.

[FEBRUARY, 1834. present suffering, and to avert the threatened | deposits; and that it was not necessary to redanger of still greater injury. They do not un-tain but a limited amount of specie in the vaults, dertake to point out in what that relief shall with a view to meet any rare and extraordinary consist, or the mode in which it shall be ob- occasion, because if one dollar was taken out, tained; but leave it, with confidence, to the another was deposited; and thus, what was wisdom and enlightened patriotism of Congress. removed by one depositor, was replaced by anThey come here to the legislature-they do not other. In this view, he arrived at the conclugo to the Executive-because they do not be- sion, that it was not necessary for the United lieve that it belongs to the Executive depart-States Bank to retain specie to an amount bement of this Government to produce and sus-yond two or three millions, whereas it had now tain a sound currency, any more than that it twenty-two millions to meet and fifteen millegitimately appertains to it to produce a de- lions to meet it. He had understood that the President of the United States Bank had, on This memorial is signed by all classes of citi- more than one occasion, complained of the aczens-merchants, mechanics, artisans, and la- cumulation of specie; had at one time transborers of all parties; and from personal ac-ported a quantity to Europe, because there was quaintance with many of the memorialists, I a surplus in the vaults; and had given it as his bear willing and cheerful and decided testi- opinion, that seven millions of specie was suffimony to their high respectability-to the en-cient to meet the greatest circulation of paper. tire confidence which ought to be reposed in He believed that the president of the bank was all their statements. And, from the knowl- correct in this view, and that one dollar in edge that I have of those who have transmitted specie was sufficient for an issue of five dollars the memorial, and given me their certificate as in paper. to the high respectability of those with whom. I am personally unacquainted, I am confident in the belief, that all the memorialists are highly respectable.

The petitions having been read

Mr. SHEPLEY rose and said, that very soon after he was called to take a seat in this chamber, he had made a few remarks on the subject of the public distress. He had then borne testimony, that, when he came into the Senate, he was unacquainted with any extraordinary distress then existing in the money market. He had not had occasion to believe, at that day, that he was mistaken in the view which he had presented. He now understood, that, when Congress met, there was no greater distress in the money market in his section of the country, than frequently existed under ordinary circumstances. He wished that it was in his power to believe that the same state of things now existed; but he was now satisfied that it was far otherwise, and that there existed in the money market a distress unparalleled, pervading all classes of the community. It was never his desire to state any thing more than the truth. He had waited during the last eighty days, to understand wherefore it was that, day after day, they were to be told that there was an existing distress, and that this distress was increasing. He thought that he had now obtained so much knowledge, as enabled him to understand the subject. He held in his hand a statement of the condition of the United States Bank on the 1st of this month, which came from a friendly hand, and which he would now beg permission to read to the Senate.

He inferred from this view that it was in the power of the bank, on the 1st of February, to circulate twenty millions more of its bills than it had circulated, and without any danger to itself, and the circulation of ten millions would have greatly relieved the country. The bank had sometimes expressed a desire to relieve the country, but what now was its conduct? It had curtailed, instead of extending its accommodations; and what was to be expected in the future? He held in his hand a paper, which spoke the sentiments of the bank to the people. He wished it to be well understood what the people had to expect from this quarter. A few days since, a communication ap peared in a newspaper, asking of the United States Bank to extend its loans to the community. There was now another paragraph in the same newspaper,speaking in a somewhat singular tone, and as if by authority, and adopting such language as no one could use who was not in a situation of some power. If the writer had not the power to carry his suggestions into effect, he must have been a very presumptuous man to use such language. He referred to an article in the National Intelligencer, in the form of a communication, which he would now read.

[Here Mr. S. read the article referred to.]

Mr. S. continued. What did this paper say! It was directed to public opinion, and declared what the bank would do; and that was nothing, until the State banks should be prohibited by their stockholders from receiving the public deposits; thus causing them to be restored to the Bank of the United States. Let this be done, and every thing will go well; distress and anguish will no longer exist. All the evils He then went on to say, that, in relation to so loudly complained of will at once be remethe deposits in the United States Bank, every died, and confidence and security again preexperienced banker, as well as every man of vail. But if the stockholders of the State banks good sense, knew that a bank soon became ex-will not move, so as to prohibit their instituperimentally acquainted with the average of its tion from receiving the deposits, why, then,

[Here Mr. S. read the monthly statement of the condition of the bank.]

Removal of the Deposits.

things must grow worse and worse, the dis-ence of opinion, I should feel it my duty, as tresses of the country become deeper and deep- one of the representatives of Virginia on this er, until it ends in absolute ruin. He knew floor, to conform to the views expressed by her not who were authorized to use the language legislature, if, in the circumstances in which I of this paper, but he believed they spoke from am placed, I could do so without dishonor. I some authority; and that, if they did so speak, hold it, sir, to be a vital principle of our politit was one which sought to control the councils ical system, one indispensable to the preservaas well as the finances of the nation. They say tion of our institutions, that the representative, that not only deep distress is felt throughout the whether a member of this or the other House, land, but that, unless the deposits are restored is bound to conform to the opinions and wishes to the Bank of the United States, it will become of his constituents, authentically expressed; or, still deeper. Much as he deplored the existence if he be unable to do so, from overruling and of distress of any kind, he had rather bear any imperious considerations, operating upon his that might arise from pecuniary causes, than conscience or honor, to surrender his trust into submit to a declaration of the kind given in the the hands of those from whom he derived it, paper he had referred to; and he well knew that they may select an agent who can better that the people of his State would endure the carry their views into effect. severest privations, no matter from what causes they might arise, sooner than be dictated to by an authority coming from a moneyed institution.

SENATE.]

Removal of the Deposits.

[FEBRUARY, 1834.

conduct of the President, with reference to the | of the State-that of the people. On the conremoval of the public deposits, was a danger- trary, my firm and clear conviction is, that the ous and unconstitutional assumption of power; sentiments of the people, in the present instance, the second, declaring the reasons assigned by are not in unison with the proceedings of the the Secretary of the Treasury for that removal, legislative authority. The manifestations of to be unsatisfactory and insufficient. When the popular sentiment already commencing in va latter of these resolutions, together with the rious quarters of the State-the principles and report of the Secretary of the Treasury, was opinions heretofore steadily cherished by Virreferred some days ago to the Committee on ginia-multiplied communications received from Finance, that committee did not report a bill the most respectable sources and my own or joint resolution for the restoration of the de- knowledge, I may be permitted to add, of a posits, but simply a recommendation that the people with whom I have been connected, in Senate should adopt the declaratory resolution the relations of public service, for now near of the Senator from Kentucky. In short, it is twenty years-assure me that they are not; now avowed and understood, on all hands, that and the revolution of a few months will, I conall that is deemed necessary, or will be pro-fidently believe, render the fact manifest to all posed here, to effect the restoration of the pub- the world. But, in the regulation of my official lic moneys to the Bank of the United States, is conduct here, I am not permitted to look bea mere declaration, by Congress, of the insuffi-yond the constitutional expression of the opinciency of the reasons assigned for their removal. ion of the State, by its regular and proper orThe only measures, then, on which I shall gan. If a Senator were allowed to set up be called to carry into effect the instructions of against the public opinion of his State, as offithe legislature of my State are, the declaratory cially and solemnly declared by her legislature, resolutions moved by the Senator from Ken- a hypothetical public opinion, which may or tucky, and now depending before the Senate. may not be that of the people of the State, it is That these resolutions are, in the estimation of obvious that a door would be opened for the the General Assembly of Virginia, proper meas- total evasion of all effective responsibility of ures-that the opinions and principles declared this body to public opinion. It is on the legis by them are believed by the General Assembly latures of the States that the constitution has to be correct and well founded-it would be devolved the choice of members of this body, unpardonable blindness to the language and and the same legislatures must be the interpretenor of their instructions not to see. At the ters of the public opinion of their respective same time, it is well known to the Senate that, States to the Senators chosen by them, whenon each of the propositions declared in these ever an occasion shall arise which may call for resolutions, I had (and I will take leave to add, a solemn manifestation of that opinion. after the most careful and anxious investigation) This is indeed the only practicable mode of come to opposite conclusions, which I had ear- bringing the opinion of the sovereign communestly asserted and maintained on this floor. Inity, represented in this body, to act, with anam, therefore, placed, by the instructions of thoritative influence, on its proceedings; and the legislature of my State, in this dilemma- when it is considered that the Senate is, by the either to vote for the declaratory resolutions of greater permanency of its official tenure, farther the Senator from Kentucky, and thereby ex- removed from the salutary controls of the reppress opinions which I not only do not enter-resentative system than any other branch of tain, but the reverse of which I have sincerely and earnestly maintained on this floor; or, by voting against them, to oppose the only measures which are likely to come before this body, having in view the restoration of the public deposits to the Bank of the United States, and thus appear in the attitude of disregarding and thwarting the declared wishes of the General Assembly of Virginia. I am sure I but respond to the honorable feelings of all who hear me, in saying that the first branch of the alternative is impossible, while the latter is no less forbidden by my principles, and a proper sense of duty to the constituted authorities of my State. The only course left to me, then, is one which the Senate can be at no loss to anticipate.

Before I close the few remarks with which I have felt myself called on to trouble the Senate, I beg leave to say, that, while I recognize implicitly the resolutions just read as the legitimate and contitutional expression of the opinion of my State, I wish not to be understood as saying that they express the real public opinion

the Government, all will see the necessity of keeping open a clear and designated channel by which public opinion may promptly reach it, in an authoritative form, and be made effectual on its deliberations. It is thus essential to the practical supremacy of the popular will itself, that the State legislatures should be recognized as the authentic and constitutional exponents of the popular opinion of the respective States, in all relations with this body. If, in any instance, the legislatures of the States shall mistake the opinions of the people, it is, as I conceive, for the people themselves, and not for us, to correct the mistake.

These, Mr. President, are, very briefly, the opinions I entertain on the delicate questions presented for my consideration by the instruc tions of the legislature of my State, just read; and the only alternative they leave me, in the circumstances in which I am placed, is to surrender the trust with which I have been hon ored, as a member of this body, into the hands of those from whom I received it. I know

SENATE.]

Louisville (Ky.) Memorial.

[FEBRUARY, 1834.

signed the memorial were, at any time, opposed | good market existed for all the products of into General Jackson, in Berks county. He knew a number who were the fast friends of General Jackson, among which he recognized the name of his friend William Addams, who was associated with him (Mr. M.) on the Jackson electoral ticket in 1832. His (Mr. M.'s) objections to the United States Bank remained unchanged, and had never been disguised; but, it was due to truth, and to this respectable portion of his constituents, to make these statements.

He also had in charge the proceedings of a meeting of the mechanics and working men of the Northern Liberties, in the county of Philadelphia, in favor of the bank and a restoration of the deposits; and a memorial signed by fifty-one citizens of Schuylkill county, against the bank and the restoration of the deposits; all of which he desired to send to the Chair, and asked that they be each read, referred to the Committee on Finance, and printed.

dustry. The people were out of debt, fullhanded, in good health; grateful for the numerous blessings which they enjoyed, and without the smallest presentiment of approaching calamity. This gratifying picture was now sadly reversed, and he was charged with the duty of presenting to the Senate a memorial from a large and highly respectable portion of his fellow-citizens, exhibiting the contrast, and imploring redress from Congress of their grievances. Louisville is the third, if not the second, of the three largest cities on the banks of the Ohio River, and, from its location at the rapids of that beautiful stream, is decidedly the first in commercial importance. Her two great sisters, Pittsburg, and Cincinnati, have already addressed their complaints to Congress, and Louisville now comes to unite her voice and her supplications to theirs.

of

He held in his hand the copy of a petition. Mr. CLAY said he wished to make an obser- the original of which has been confided to the vation or two. He imagined that the support- charge of the member of the House of Repre ers of that Executive who holds in his hands sentatives representing Louisville, to be offered the means of affording relief to the distressed to that House. This copy he now submitted to people of this country, would no longer insist the Senate. Upwards of 1,000 signatures were upon the fact that these various memorials attached to it, embracing individuals of both emanated from party feeling. They had found parties, almost the whole of the mercantile themselves already, in the progress of the ses-class, and men of every pursuit in business in sion, greatly mistaken in point of fact as re- that rising city. He knew personally many spects the distress prevailing in the community. the memorialists, among whom are the presi They had been compelled to own their mistake; dent and all the directors who were in Louisand he (Mr. C.) trusted that they would now ville, of the bank which had been selected to see that the language which is transmitted in receive the Government deposits, and he haz the various memorials to Congress, does not arded nothing in saying that the memorialists proceed from those only who are opposed to the constituted the great majority of the men of administration, but that it issues from all parties business, wealth, and respectability of Louis-that the struggle which is now going on is not ville. That bank, he had understood, by a a party struggle, but one resulting from univer- unanimous vote of the board of directors, had sal, deeply felt, wide-spread distress throughout rescinded the contract with the Secretary of the the whole country. Let Senators take the case Treasury relating to the public deposits. before them as an example. He had it in his power to state, for he had understood it from the gentleman who was charged with the presentation of the memorial, that in 1828, the whole amount of votes given against the Chief Magistrate by the county of Berks, were but 937, whilst he had nearly 5,000 votes; and in 1832, there were 4,544 given for him, and 1,166 against him. This memorial he (Mr. C.) understood was subscribed by 1,860 individuals, and it ought to be added that it came only from a part of the county. In five or six other townships, as he had been informed, of the same county, memorials were in circulation, but the subscriptions to them were not completed, and therefore could not be forwarded with the pres

ent one.

The motion of Mr. MOKEAN was agreed to.

Louisville (Ky.) Memorial. Mr. CLAY rose to present a memorial. When he left, last September, the State of which he was a Senator, he had never beheld it in a condition of higher prosperity. The earth had yielded an abundant crop; and a ready and

The existence of deep, wide-spread, and unexampled distress, is no longer disputed. It cannot be controverted. Intelligence of it is borne from every quarter, by every mail, in every form of private communication, as well as public petition and public proceedings. Those who were at first incredulous, are now forced to confess it. It stretches from the wild lands of Maine to the alluvial formations of the Mississippi. All parts of the Union feel, and are writhing under it. The Senator from Georgia (Mr. FORSYTH) had denied its existence at Augusta; but at Augusta we had seen a call, from a large number of citizens, for a public meeting to take into consideration the prevailing distress. He had hoped that Kentucky would have been among the last that would suffer, although he knew it would be among the first to feel and manifest its sympathy for the sufferings of others. But the blight has reached her; and what State, what interest, sooner or later, must not feel its influence?

[Mr. Clay continued to speak at great length upon the topics of the memorial, and was followed by Mr. Tallmadge and Mr. Clayton on the same side.]