JANUARY, 1834. Webster's Sheech on Expunging the Senate Resolution of 18:34 from the Journal will be found in Finance pamphlets, vol.1. WASHINGTON: PRINTED BY GALES & SEATON. 1834. REMARKS. On the 20th of January, Mr. WEBSTER presented the following resolutions passed at a meeting in Boston: 1. Resolved, As the sense of this meeting, that the business community of this city, vicinity, and Commonwealth, are in a high state of prosperity, independently of those embarrassments in the money market, consequent upon the deranged state of the financial and banking operations of the country. 2. Resolved, That all the great branches of industry throughout the Union have, for three years past, been in a highly prosperous condition, till within the period of a few months. 3. Resolved, That the products of agriculture have been unusually abundant the past year; that prices at home and abroad are higher than usual, and likely to be maintained under the ordinary circumstances of the money market. 4. Resolved, That the currency, issued by the banks of this State, inasmuch as their notes in circulation are not more than one-fourth of their capitals, and the securities for their loans being deemed good, is in sound condition. 5. Resolved, That the currency of the Union at large is also in a safe and sound state, and that any sudden and undue contraction of bank issues, which may have been lately made, has principally arisen, not from over-issues of paper, but from the disturbed state of our financial and money concerns, incident to the altered condition of the National Bank. 6. Resolved, That there is the usual quantity of specie in the country, and that foreign exchanges being greatly in our favor, there is no reason to apprehend any drain of the precious metals; but, on the contrary, we may naturally look for an influx of them. 7. Resolved, That the local banks now employed by Government, however well disposed to accommodate the public, cannot, with their small capitals, limited credit, and scattered resources, and, above all, their entire want of concert and unity of action, afford that aid to the agricultural classes in the transmission of their products, from the places of growth to the places of export and distribution, which they have heretofore received from the National Bank, but which is now, in part, necessarily withdrawn from them by that institution, in consequence of its change of position in regard to the Government. 8. Resolved, That the evils arising from the scarcity and high price in money fall with most severity on the industrious and middling classes of society, who are compelled to make sacrifices of property to provide for their daily payments, while the retired capitalists are not only exempt from such a loss, but derive a benefit from the increased value of money. 9. Resolved, That a continuance of the existing embarrassments in business, arising from the deranged state of our money concerns, will not only check the future operations of the farmer, merchant, manufacturer, and mechanic, and consequently lessen the employment and wages of the laborer, but will also prove extremely injurious to those great and useful internal improvements, which must soon be arrested in their progress, if the pressure on the money market is not relieved; and that all property now in existence will become depreciated to a degree that may prove utterly ruinous to a portion of the most enterprising and useful members of the community. 10. Resolved, That the amount of currency necessary to effect the ordinary payments in business, though utterly insignificant compared with the wealth of the nation, yet when viewed as the measure of value of every species of property, as the basis of all contracts, and the medium by which the constant interchanges of property are made, must be considered of immense importance; and that any sudden and undue expansion or contraction of the amount required for the ordinary wants of the country, from whatever causes it may proceed, will necessarily tend to the most calamitous results. 11. Resolved, That the existing embarrassments and panic among all classes of the business community, and which threaten, if not soon remedied, the most serious evils, may be attributed, first, to a spirit of speculation and over-trading-the usual effects of long continued prosperity; and secondly, to the transferring the collection of the national revenue from the National Bank to the State banks, and thereby paralyzing, in some degree, the action of that institution, by whose large capital, solid credit, and extensive resources, the business operations of the whole country have been sustained and promoted. 12. Resolved, That, in the opinion of this meeting, a restoration of the National Bank to the relation in which it stood to the Government prior to the removal of the deposites, and allowing the public moneys already in possession of the local banks to remain there, till required by the Government, would, in a great measure, relieve the country from the embarrassments, arising from a scarcity and derangement of currency; and, above all, allay that distrust, agitation, and alarm, which is more difficult to overcome, and more dangerous in its tendencies if not overcome, than the actual inconveniences and losses usually incident to an insufficient or deranged currency. 13. Resolved, That, whatever course may be adopted by Congress, in relation to matters now in dispute between the Government and the National Bank, it is of vital importance to the great interests of the nation that there should be a prompt decision, so necessary for the re-establishment of that confidence, throughout the whole country, which has been greatly impaired by the uncertain and unsettled state of our financial and money concerns. 14. Resolved, That the foregoing resolutions have no relation to any party or political purposes, beyond the direct object manifest on the face of them; that the meeting comprises persons of all classes and professions, entertaining various and opposite opinions upon the question of re-chartering the existing National Bank, or of chartering a new one in lieu of it; that few of them have any pecuniary interest involved in the fate of that institution; that they have met together, on this occasion, as citizens, having one common end in view, and with no other purpose or desire than to aid in the re-establishment of that credit and confidence among all classes, so essential to our present safety and our future prosperity. 15. Resolved, That a copy of the foregoing resolutions be transmitted, by the Chairman of this meeting, to each of the Senators and Representatives of this State in Congress, as expressive of the opinions and feelings of a portion of their constituents upon the important matters therein referred to; and earnestly requesting them to use their best exertions to effect the objects which this meeting has in view; and that they also be requested to lay a copy of the same before both branches of our National Legis lature. 16. Resolved, That a committee, consisting of Henry Lee, George Bond, Jonas B. Brown, Henry F. Baker, James T. Austin, George Darracott, and Charles Wells, be appointed to take such other measures, in furtherance of the objects of this meeting, as they shall deem proper and expedient. HENRY F. BAKER, Secretaries. CHARLES WELLS, Chairman. The resolutions having been read by the Secretary of the Senate, Mr. WEBSTER said, he wished to bear unequivocal and decided testimony to the respectability, intelligence, and disinterestedness of the long list of gentlemen, at whose instance this meeting was assembled. The meeting, said Mr. W., was connected with no party purpose whatever. It had an object more sober, more cogent, more interesting to the whole community, thạn mere party questions. The Senate will perceive, in the tone of these resolutions, no intent to exaggerate or inflame; no disposition to get up excitement or to spread alarm. I hope the restrained and serious manner, the moderation of temper, and the exemplary candor, of these resolutions, in connexion with the plain truths which they contain, will give them just weight with the Senate. I assure you, sir, the members composing this meeting were neither capitalists, nor speculators, nor alarmists. They are merchants, traders, mechanics, artisans, and others engaged in the active business of life. They are of the muscular portion of society; and they desire to lay before Congress an evil, which they feel to press sorely on their occupations, their earnings, their labor, and their property; and to express their conscientious conviction of the causes of that evil. If intelligence, if pure intention, if deep and widespread connexion with business in its various branches, if thorough practical knowledge and experience, if inseparable union between their own prosperity and the prosperity of the whole country, authorize men to speak, and give them a right to be heard, the sentiments of this meeting ought to make an impression. For one, sir, I entirely concur in all their opinions. I adopt their first fourteen resolutions, without alteration or qualification, as setting forth truly the present state of things, stating truly its causes, and pointing to the true remedy. Mr. President, now that I am speaking, I will use the opportunity to say a few words which I intended to say in the course of the morning, on the coming up of the resolution which now lies on the table; but which are as applicable to this occasion as to that. An opportunity may, perhaps, be hereafter afforded me of discussing the reasons given by the Secretary for the very important measure adopted by him, in removing the deposites. But as I know not how near that time may be, I desire, in the mean while, to make my opinions known, without reserve, on the present state of the country. Without intending to discuss any thing at present, I feel it my duty, nevertheless, to let my sentiments and my convictions be understood. In the first place, then, sir, I agree with those who think that there is a severe pressure in the money market, and very serious embarrassment felt in all branches of the national industry. I think this is not local, but general—general, at least, over every part of the country where the cause has yet begun to operate, and sure to become not only general, but universal, as the operation of the cause shall spread. If evidence be wanted, in addition to all that is told us by those who know, the high rate of interest, now at 12 per cent. or higher, where it was hardly 6 last September; the depression of all stocks, some ten, some twenty, some thirty per cent.; and the low prices of commodities, are proofs abundantly sufficient to show the existence of the pressure. But, sir, labor, that most extensive of all interestsAmerican manual labor-feels, or will feel, the shock more sensibly, far more sensibly, than capital or property of any kind. Public works have stopped, or must stop; great private undertakings, employing many hands, have ceased, and others must cease. A great lowering of the rates of wages, as well as a depreciation of property, is the inevitable consequence of causes now in full operation. Serious embarrassments in all branches of business do certainly exist. I am of opinion, therefore, that there is, undoubtedly, a very severe pressure on the community, which Congress ought to relieve if it can; and that this pressure is not an instance of the ordinary re-action, or the ebbing and flowing of commercial affairs; but is an extraordinary case, produced by an extraordinary cause. In the next place, sir, I agree entirely with the 11th Boston resolution, as to the causes of this embarrassment. We were in a state of high prosperity, commercial and agricultural. Every branch of business, was pushed far, and the credit as well as the capital of the country employed to near its utmost limits. In this state of things, some degree of overtrading |