DEC. 13, 16, 1833.]

Bank of the United States.-Rules of the House.

When, on motion of Mr. WATMOUGH,
The House adjourned.

FRIDAY, DECEMBER 13.

BANK OF THE UNITED STATES. The SPEAKER presented a memorial from Messrs. Gilpin, Sullivan, Wager, and McElderry, Government directors of the Bank of the United States, stating (as the Speaker announced) certain matters in relation to the conduct of that institution.

Mr. POLK moved that it be referred to the Committee of Ways and Means.

Mr. WATMOUGH moved that it be referred to the Committee of the Whole House on the state of the Union. The latter motion having precedence by rule, was sta. ted from the Chair.

Mr. POLK demanded the yeas and nays upon agreeing to it; which were ordered by the House.

Mr. ARCHER suggested that it would be better to let the paper lie for the present upon the table, until the question pending before the House, as to the reference of the report from the Secretary of the Treasury, on the same subject, should first have been settled; and he moved accordingly.

Mr. ARCHER said, that, if the gentleman from Tennessee wished to address the House, he would, at his request, withdraw the motion, to afford him that opportunity; but should immediately after renew it. The motion was accordingly withdrawn.

[H. of R.

The yeas and nays being taken, on laying the memorial for the present on the table, stood as follows:

YEAS.-Messrs. J. Q. Adams, C. Allan, Archer, Ashley, Banks, Barber, Barnitz, Bates, Beale, Beaty, James M. Bell, Binney, Bouldin, Briggs, Bullard, Bull, Burd, Burges, Cage, Carmichael, Chambers, Chilton, Choate, Claiborne, William Clark, Clayton, Clowney, Corwin, Coulter, Crane, Crockett, Darlington, John Davis, Warren R. Davis, Amos Davis, Davenport, Deberry, Deming, Denny, Dennis, Dickson, Duncan, Ellsworth, Evans, Edward Everett, Horace Everett, Ewing, Felder, Fillmore, Foot, Foster, Fowler, P. C. Fuller, Fulton, Gamble, Gholson, Gilmer, Gordon, Gorham, Grayson, Grennell, Griffin, Hiland Hall, Hard, Hardin, James Harper, Hazeltine, Heath, Hiester, J. W. Huntington, W. c. Johnson, Seaborn Jones, Lay, Thomas L.ee, Lewis, Love, Martindale, Marshall, Mason, McKennan, Mercer, Milligan, Patton, Pinckney, Potts, Reed, Selden, William B. Shepard, Aug. II. Shepperd, William Slade, Sloane, Spangler, Stewart, Wm. P. Taylor, Philemon Thomas, Tompkins, Tweedy, Vance, Vinton, Watmough, Freder ick Whittlesey, Elisha Whittlesey, Wilde, Williams, Wilson, Young.-107.

NAYS.-Messrs. John Adams, Heman Allen, John J. Allen, William Allen, Anthony, Baylies, Bean, BeardsMr. POLK said, that, unless the gentleman from Virley, Beaumont, John Bell, James Blair, John Blair, ginia would consent to withdraw that motion, he should Bockee, Bodle, Boon, Brown, Bunch, Burns, Bynum, ask for the yeas and nays upon that also. Cambreleng, Carr, Casey, Samuel Clark, Clay, Connor, Cramer, Day, Philemon Dickerson, D. W. Dickinson, Dunlap, Forester, W. K. Fuller, Galbraith, Gillet, Joseph Hall, T. H. Hall, Halsey, Hamer, Hannegan, J. M. Harper, Harrison, Hathaway, Hawkins, Hawes, Henderson, Howell, Hubbard, Abel Huntington, Inge, Jarvis, Mr. POLK then advocated the reference of the paper Noadish Johnson, Cave Johnson, Benjamin Jones, Kavto the Committee of Ways and Means, as being the regu-anagh, King, Kinnard, Lane, Lansing, Laporte, Lawlar and invariable practice of the House in relation to all rence, Luke Lea, Leavitt, Loyal, Lucas, Lyon, Lytle, papers of the kind. The connexion between the Treas-J. K. Mann, Mardis, McComas, McIntire, McKay, McKim, ury and the bank was close and intimate. The Govern- McKinley, McLene, McVean, Miller, Robert Mitchell, ment had an interest in the bank, and that institution had Moore, Muhlenberg, Murphy, Osgood, Page, Parks, Parheretofore been the keeper of its funds; and the Govern-ker, Patterson, D. J. Pearce, Peyton, Franklin Pierce, ment had therefore reserved to itself the right of having Pierson, Polk, Pope, Ramsay, Rencher, Schenck, Schley, the appointment of a certain proportion of its directors, Shinn, Charles Slade, Smith, Speight, Standefer, Stodin order that, if they should come to the knowledge of dert, Sutherland, William Taylor, Francis Thomas, any malpractices in the bank, they might apprize the Thomson, Turner, Turrill, Vanderpoel, Van Houten, Government thereof, which it was their duty to do. Wagener, Ward, Wardwell, Webster, Whallon, C. P. There was no reason why this memorial, coming from White, Wise.-119. such a source, should receive a different direction from what was usual; and he hoped the House, by its vote, would now indicate what course of proceeding was to O prevail in reference to this subject.

Mr. FOSTER reminded the House that the President's message had not yet been disposed of. He thought it manifestly proper to let this paper lie on the table for the present, until the House should have completed the reference of the various portions of the Executive message. The memorial could, in the mean while, be printed, and the House would be better able to determine what course to give it.

Mr. ARCHER had not the slightest wish to give this paper any final disposition which should take it out of the hands of the gentleman from Tennessee. But suppose the House should determine that the Secretary's letter on the deposites should go to the Committee of the Whole, would the gentleman desire this paper to take a different course? As to calling for the yeas and nays, Mr. A. said the gentleman ought to know him too well to suppose that the yeas and nays had any terror for him. He moved to lay the memorial on the table, and print it. Mr. POLK demanded the yeas and nays on the motion;

which were ordered.

Mr. SPEIGHT wished the question divided. It was divided accordingly, so as to take it separately on laying on the table and printing.

So the House refused to lay it on the table. On the question on printing, the yeas were 140, and the nays 4. So it was ordered that the memorial be printed.

The question being then put on referring the memorial to the Committee of the Whole on the state of the Union,

the yeas were 96, and the nays 133. So the House refused the notion: and the memorial was then referred to the Committee of Ways and Means.

MONDAY, DECEMBER 16.

RULES OF THE HOUSE.

The amendment proposed by Mr. PATTON to the 9th rule of the House, requiring the Speaker to vote in all cases, and declaring when, including his vote, the House was equally divided, the decision should be taken as in the negative, coming up as the unfinished business

Mr. WAYNE went, at considerable length, into an argument, in opposition to the amendment, in which he repeated and further supported the objections he had urged when this subject was last up; insisting that the proposed alteration of the rule would go far to impair the judicial independence of the presiding officer of the House, by mingling him in all the partisan contests of the body. It would produce great embarrassment, by requiring him to decide, in case of appeals, in questions in

H. or R.]

Rules of the House.-Removal of the Deposites.

[Dec. 16, 1833.

which he had a personal concern-such as his own decis- Lansing, Lawrence, L. Lea, Leavitt, Joel K. Mann, Marions of points of order, &c.; and it would also render tindale, McComas, McIntire, McKay, McKim, McKinley, indispensable a number of other changes in the rules, McLene, McVean, Mercer, Milligan, Mitchell, Muhlenthe discussion of which would consume much time. Mr. berg, Murphy, Osgood, Page, Parks, Parker, Patterson, W. drew a picture of the arts and influence which would Dutee J. Pearce, Peyton, Franklin Pierce, Pierson, be brought to bear on a Speaker so situated, and con- Polk, Schenck, Schley, A. II. Shepperd, William Slade, cluded that the inevitable result would be to render him Charles Slade, Sloane, Spangler, Speight, William Taythe victim and the instrument of a powerful administra- lor, John Thomson, Turner, Turrill, Tweedy, Vandertion. He went into an examination of the powers of the poel, Van Houten, Ward, Wardwell, Watmough, Wayne, Speaker of the British House of Commons, and argued Whallon, C. P. White, E. D. White, Elisha Whittlesey, to show, that in taking the English rule as our model, Wise, Young.-121. we had not been governed by a slavish subserviency to precedent, but by a consideration of reason and expedi ency. He adverted to cases in which the casting vote of the Speaker had been of very important and beneficial effect, and concluded with a complimentary tribute to Mr. PATTON's feelings, principles, and independence of mind.

So the rule was not amended.

REMOVAL Of the deposITES.

The unfinished business of yesterday next coming up, viz. the question of reconsidering a vote of the House, by which the report of the Secretary of the Treasury, in relation to the removal of the depositos, had been referred to a Committee of the Whole on the state of the Union-

Mr. PATTON replied, and insisted that the gentleman had not redeemed his pledge to point out the many rules that must be altered should the amendment prevail. Mr. ALLAN, of Kentucky, said he would follow the He denied totally that the change would render the example of the learned gentleman from Pennsylvania, Speaker any more a partisan than he would be under the [Mr. BINNEY,] and plead the deep interest which his imrules as they stood, and observed, that to expect an indi- mediate constituents felt in this investigation, as an apolvidual ever to reach that Chair who did not take a lively ogy for a short trespass on the time of the House. This interest on one side or the other, in all the action of the apology, he was sure, could come from none with more House, was futile. The Speaker would then be no more propriety than from himself, because the evils and calamia judge than now, of his own previous decisions, for he ties destined to flow from this unfortunate movement of had now to vote in case of a tie. And as to party influ- the Secretary of the Treasury, will fall upon the Western ence, the only direct form in which it would corruptly country with their heaviest pressure. No doubt that the influence a Speaker, was by leading him to miscount the great emporium of commerce, (Philadelphia,) so ably repvotes of the House, a supposition which was offensive, resented by that gentleman, and the other cities of the and not to be urged. As to his becoming the victim and East, will suffer much derangement in their commercial tool of an administration, he was by his station exposed operations; but they will still have the public deposites; to all influences of that sort, and changing the rule would they will still have the public money as a banking capineither impair nor increase them. Nay, by obliging him tal; they will still have a circulating medium founded to record his vote, he would be left less at liberty to shuf- thereon. But all those facilities will be swept from the fle and trim his course to please those in power. After Western country; and it is in that devoted region that the blighting influences of that measure will be mainly felt.

some further remarks

The question was put on the proposed amendment, and decided as follows:

The

The report of the Secretary of the Treasury, communicating to this House his reasons for withdrawing the YEAS.-Messrs. Heman Allen, John J. Allen, William puplic deposites from the Bank of the United States, Allen, Anthony, Archer, Banks, Barber, Barringer, Bates, was, as I think, very properly referred to the Committee Beale, Beaty, Beaumont, Bouldin, Burd, Burges, Carmi- of the Whole House on the state of the Union. chael, Carr, Chaney, Chilton, Chinn, Claiborne, Clayton, chairman of the Committee of Ways and Means [Mr. Clowney, Corwin, Coulter, Crockett, Darlington, War- POLK] moved to have the vote of reference reconsidered, ren R. Davis, Amos Davis, Davenport, Deming, Denny, with a view that the subject may be sent to the commitDunlap, Evans, Horace Everett, Foster, Fowler, Fulton, tee over which he presides. Mr. A. said that he was opGalbraith, Gamble, Gholson, Gordon, Grayson, Grennell, posed to the reconsideration, because, if regard be had Griffin, Joseph Hall, Hannegan, Hardin, James Harper, either to the nature of the subject, or the time when it Harrison, Hazeltine, Heath, Henderson, Hiester, Howell, ought to be discussed, he was satisfied that the reference Jabez Huntington, W. C. Johnson, Kinnard, Laporte, of it ought not to be changed. If the report of the SecLay, Lee, Lewis, Loyall, Lucas, Lyon, Marshall, Mardis, retary be sent to the Committee of Ways and Means, it Mason, McCarty, McKennan, Miller, Moore, Patton, will be buried for weeks, and perhaps for months; if it Pinckney, Pope, Potts, Ramsay, Reed, Rencher, W. B. remained before the Committee of the Whole House, its Shepard, Shinn, Standefer, Stewart, Stoddert, Suther-discussion will be public and immediate. Mr. A. said it land, William P. Taylor, Philemon Thomas, Tompkins, was due to the country, it was due to public expectation, Vance, Vinton, Wagener, Webster, Frederick Whittle that every step the House takes, in this business, should sey, Wilde, Williams, Wilson. -96. be in the face of the country.

NAYS.-Messrs. John Quincy Adams, John Adams, From the nature of the question involved in this inChilton Allan, Ashley, Barnitz, Baylies, Bean, Beards- quiry, there is no necessity for the preliminary action of ley, John Bell, James M. Bell, Binney, James Blair, a private committee. It is the province of a committee Bockee, Bodle, Boon, Briggs, Bull, Bunch, Burns, By- in ordinary business to attend to its details, to collect num, Cambreleng, Casey, Chambers, Choate, Samuel facts, and to accumulate evidence. But the questions Clark, William Clark, Clay, Connor, Cramer, Crane, involved in this inquiry, are of a fundamental character, John Davis, Day, Deberry, Dennis, Dickson, Philemon relating to the extent of the powers of the different deDickerson, David W. Dickinson, Duncan, Ellsworth, partments of the Government, to the care and custody Edward Everett, Fillmore, Foot, Forester, Philo C. Ful- of the public treasure, to the securities of commerce and ler, William K. Fuller, Gillet, Gilmer, Gorham, Hiland labor. Hall, Thomas H. Hall, Halsey, Hamer, Joseph M. Har per, Hathaway, Hawkins, Hawes, Hubbard, Inge, Jarvis, Richard M. Johnson, Noadiah Johnson, Cave Johnson, Seaborn Jones, Benjamin Jones, Kavanagh, King, Lane,

Sir, is it necessary to have the intervention of a committee to enlighten this House on such questions as these' From the magnitude of these questions, the most im portant that will engage the attention of the present

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 Ilouse.

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.

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 public money which the Secretary had distributed among so inany 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.

From what has taken place, you may see what is likely to happen again. This jeopardy of the public funds in so many obscure banks, which are wholly unknown and unheard of by the great body of the people of the United States, calls upon this House for speedy measures for their recovery.

But Mr. A. said he was opposed to sending this report to the Committee of Ways and Means, where the people would not again hear of it for months. The gentleman from Tennessee [Mr. PoLK] has told the House the principal matter to be inquired into is the condition of the State banks into which the public money has been scattered. 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 sion; a delusion hurrying the people on to plunge themhe knows the political character of the banks: whether selves into scenes of distress similar to those through which they pay for printing documents: whether they will al- they passed from 1815 to 1820. Without a permanent together constitute a political safety-fund for the control uniform currency, of equal value throughout the Union, of the elections in this country. It is evident that much labor, the foundation of all our resources, is not secure, time will be consumed, if the vote be reconsidered, and the right of property is not safe. The whole loss of a this report sent to the Committee of Ways and Means. depreciated currency ultimately falls upon the laborers. Sir, the shock which has been given to the securities of The benefits of a depreciated currency are reaped by commerce and labor, by the movement of the Secretary, shavers and brokers. requires prompt action on the part of this House. It It is stated, sir, that the local banks are about to food would be cruel, even for another week, to keep the West- the country with their trash, upon the credit of the depos ern 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.

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 ould 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 brokers.

A great part of the revenue of the country is collected in the single port of New York. But of this revenue the 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.

[Drc. 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 eight 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. Ile 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 corresponding amount of bank issues, there was less than country-that they were not satisfied with the report; one million of specie to meet the bills. Other sections of that evidence had not been developed sufficient to author- the United States, especially Pennsylvania, Maryland, and ize what had been done by the Executive department | Virginia, in which the circulation of small notes was proof the Government? If so, then perhaps they were right hibited, might not present an equally unfavorable view. in pressing a special reference. 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 flouse. He 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 spethat 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 misany 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

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 not remain before a sub-committee, however cautious different subjects, a mass of facts and reasons. their course might be, without being rendered available therefore manifest, that the reasons given for the removal in the way of speculation. In conclusion, Mr. Speaker, might be abundant and satisfactory, yet those for the seas one of the representatives of the largest commercial lection of the banks, be altogether insufficient. These city in the country, Mr. S. said, he asked for an open dis- banks might be badly located, as to the convenience, or cussion, and a speedy decision. not stand high in public estimation as to credit or capital; Mr. FOOT concurred in the views taken by the hon- for either of which reasons would render the report of orable member from New York who had preceded him, the Secretary objectionable. But that report covered and observed, that although, from the novelty of the pres- the whole ground, and insisted upon not only the proprient case, no precedent had been adduced by those who ety of the removal, but the perfect convenience of the maintained that the proper course to be taken, in acting institutions selected. The fulness of the reasoning, and upon this question, was to retain it in the Committee of the facts set forth, were, however, both equally objected the Whole, yet, in an authority always looked up to, Jef- to. It is argued that the public treasure is in danger; ferson's Manual, the principle was fully laid down, that it that these State banks are unsound; "that their charwas usual for all questions of great concern to be referred ters, their capitals, their condition, are alike unknown;" to that committee, that they might be there digested, and and, in fact, according to the statement of an honorable put into a shape to meet the views of the majority, and member from Georgia, "that the money might as well which being afterwards reported upon, and confirmed by be at the bottom of the Potomac," as where it has been the House, could then be referred to one or other of their placed. standing committees, to report upon by a bill or bills. He concluded by observing, that, as the act of removal of the Secretary of the Treasury was consummated, that a he had given his reason for that removal, the question was now before the House in a form for them to act upon; and that as they did not want the intervention of any committee to direct them how they should act upon it, he hoped further time would not be spent in discussing what was only a preliminary question.

[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 thie Bank of the facts should be fully investigated where they alone could 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 déposites 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 given up, or parted with, without a struggle, and the House must therefore pass upon it.

In reviewing the report of the Secretary, it appeared to have been given upon two essential and distinct subjects; one was, the propriety of the removal of the public funds from the bank; the other was, the propriety of placing those funds in the particular State banks which had been selected by the Secretary for that purpose; and

assented that the Secretary might decide upon the subject, and that Congress might renew that decision, upon those grounds alone, which had been advanced by the Secretary. But he could not find such limitation given to the power of Congress in any part of the charter. The charter gave the unqualified power of removal, and it required him to report his reasons. But could Congress be confined to those reasons Admitting their insufficiency, yet if other good reasons existed for the removal,