FER. 3, 1834.]

Maine Resolutions-Memorial of Merchants, &c. of New York.

House would sit late, and hear the discussion until it should be brought to a close. To-morrow, or next day, he trusted we should meet, with the determination of disposing of the motions before the House. There was not a member of this House who did not every day receive letters from a distance, urging the speedy action of Congress on this subject. He would appeal to the friends of the bank, and ask whether they did not, at the commencement of this discussion, press the importance of the early action of Congress on this subject?

Mr. GORHAM rose to a question of order, and asked whether it was in order for the gentleman himself to go into the general debate?

The CHAIR said a general discussion on the presentation of a petition could only be gone into with the assent of the House.

Mr. POLK said he had only claimed the indulgence which had already been extended to those gentlemen who preceded him. He would repeat, that he hoped the House would, to-morrow, meet with a determination to dispose of the question now pending.

The resolutions were then referred to the Committee of Ways and Means, and ordered to be printed. MEMORIAL OF MERCHANTS, &c. OF NEW YORK. Mr. SELDEN presented a memorial from the merchants and traders of the city of New York, as follows: To the honorable the Senate and House of

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That your memorialists are of opinion that, from the nature of things, tested by past and present experience, a sound, secure, and stable paper currency cannot be sustained without the agency of a Bank of the United States; and they therefore also respectfully pray, with a view to that all-important object, as well as for the other purposes already mentioned, either that the charter of the present bank be renewed, or another be substituted, to take effect upon the expiration of the present charter; but, in either case, with such modifications, and under such restrictions, as experience may suggest.

And, as in duty bound, your memorialists will ever pray.

In presenting this memorial, Mr. SELDEN said he should take occasion to remark upon the statements therein made, and the character and situation of the petitioners. The memorial was signed by nearly three-fourths of the merchants of the city of New York, representing fully that portion of its mercantile business, and, more than any section of the Union, connected with the public revenue and the commercial operations and trade of the country. Within the last six years the signers of this memorial had paid into the public treasury more than fifty millions of dollars-exceeding, far exceeding, the whole capital of the Bank of the United States-and, during the past year, had paid three-quarters of the revenue collected at the city of New York, and nearly one-half of the whole collected in the United States. He would go farther, and would say, without the fear of contradiction, that the individuals and mercantile firms which have subscribed this memorial have not created a loss to the GovThat your memorialists approach your honorable bodies ernment of one-half of one per cent. less on the contracts with feelings of deep concern, on account of the sudden, out of which this immense sum has arisen. They have unexpected, and great change which has lately taken fulfilled every engagement, performed every obligation, place in the money market, the inland exchanges, and all carried into effect every duty to the nation, with punctuthe commercial transactions of the country, and their ap-ality and good faith, unparalleled in the history of this or prehension of such further derangement, as to cause, un-any other country.

Representatives in Congress assembled:

The memorial of the subscribers, merchants and dealers of the city of New York, respectfully showeth:

less prevented by the interference of Congress, still The memorial is wholly disconnected from all party greater embarrassment and distress. considerations. It has been signed by men of all parties,

That the present state of things is such as your memori- by men attached to no party, who stand aloof from the alists assert, and that it is accompanied by a general want political contests now engaging the public mind, actuated of confidence, and fearful apprehension of greater impend-by no other motive than an interest, a deep and vital ining evils, are undeniable facts, and may, if necessary, be terest, in their country's welfare, and in every measure substantiated by the extravagant premium required for connected with its trade, commerce, and currency, to the obtaining money on the best security; by the fall in every prosperity and security of which they have largely conspecies of public stocks, without excepting the most solid tributed by their enterprise, industry, and talent. They State banks and State loans; and by the effect already have rendered the city which I have the honor, in part, produced on the cash sales of real estate; and, above all, to represent, one of the great commercial marts of the by the interruption of the ordinary remittances, and the world. Whether they are to continue in the successful almost entire cessation of every branch of business con- prosecution of their favorite pursuits, or whether they will nected with the inland exchanges, and the purchase and be compelled to abandon them, mainly depends upon the exportation of the produce of the country. course taken by this House upon this memorial.

That, inasmuch as this fatal alteration in our situation I am aware (said Mr. S.) that an expression of opinion and prospects has suddenly succeeded a state of security by the merchants of the city of New York is not likely, at and prosperity, extending to all the interests and enter- this moment, to exercise any considerable influence upon prises of the people; and, in the absence of all cause in those assembled in this hall. It was an unfortunate state our external concerns for the existing and threatening dif- of things-it was unfortunate for the great interests of our ficulties, your memorialists cannot but ascribe those diffi-people-that those upon whose operations so much deculties, principally, if not exclusively, to the unfortunate pended the success of the whole inland and foreign trade change which has taken place in the relations between the of the country should receive so little consideration. Government and the Bank of the United States, and to Surely the opinions of those possessing the soundest practhe probably unforeseen consequences which have flown tical knowledge and experience in business ought to be therefrom; and that, whilst they trust in the wisdom of held deserving of respect-I might say the highest respect Congress for applying a proper and immediate remedy, and confidence. Those who signed this paper were of they have not been able to perceive how currency, ex-that character; they spoke from a knowledge and expechanges, and commercial transactions, can, during the rience acquired by years of uninterrupted toil and dilicontinuance of the charter of the bank, be restored to agence. Urged and guided in their pursuits by the strong sound and stable state, so long as that institution and the incentive of private interest, they have examined every State banks shall continue to be kept in a state of alarm avenue and operation of trade with that accuracy, and, it and reciprocal mistrust, which compels all to curtail their may be said, sagacity, which give to their conclusions operations and facilities in the transmission of funds, so in- almost the force of positive evidence. In addition to all dispensable to the prosperity of the agricultural and com- this, they have not been found wanting when the country mercial interests of the country. has called for their co-operation. In peace and in war,

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Memorial of Merchants, &c. of New York.

[FEB. 3, 1834.

business is and ought to be transacted; and they do not consider them so organized, or that they can be so organized, as to supply a general circulating medium, or to relieve from the present pressing difficulties.

they have expended their money with an almost unstinted pacity to extend relief; they know the mode in which their hand. In every improvement which might contribute to a development of our resources, they have offered and applied their capital and credit with a liberality which should command the good will of the American people. In the hour of trouble, and amid the perils of conflict, the One might ask what class of our citizens had profited merchants of New York have, at all times, united their ef- by the change which has taken place in our affairs? or forts and contributed their resources in aid of the country. what great purpose of public good has been accomplishThese are the men who now call upon you for assist-ed? and he could receive no other answer than that the ance and protection. Will we disregard their represent- suffering was co-extensive with the country, and that, too, ation? Shall we neglect their entreaties, and surrender without any adequate benefit.

them as the sacrifice in the political contest? Shall we The rich, from fear of loss, were almost prevented from say to these men, whose relations to this Government are embarking capital; the poor are deprived of employment; almost as intimate and important as our own, that their and those who with limited means, but by enterprise and communications upon the subject with regard to which credit, were able to carry on an extensive and useful busithey speak, and about which they are able to speak withness, are, by the fall in their property, by unexpected knowledge and certainty, are not deserving of weight, and are to yield to the considerations of party-to a contest between those in and those out of office? (said Mr. S.) trust not; I hope we will pay a higher regard to the pros perity and interest of our constituents.

Mr. JARVIS rose to order. He considered that the usual course had hitherto been, in presenting memorials, that every gentleman should confine himself to state the substance of the memorial, and not to diverge from it.

The SPEAKER said the honorable gentleman from New York was in order if it were the pleasure of the House that he should proceed.

losses, and want of punctuality and ability in their debtors, overcome in the struggle to sustain themselves. The mechanics and manufacturers all come in for a full share of the general distress; and they can have, they can expect, no relief until commerce again resumes its accusWhat are we told by the memorialists? That the trade tomed activity. The planter and farmer need not hope to and commerce of the country cannot be carried on with escape without injury; their produce will find but few out a national currency, created and regulated by a na- purchasers, and at reduced prices; the markets abroad are tional bank; a currency which possesses the confidence of extensively controlled by the markets here; and the dethe people in every section of the Union, and which is sus-cline of prices in our commercial towns, from whatever tained by, and receives the protection of, this Government. cause it may arise, will be met by a corresponding deWe are told that a derangement in our monetary system cline of prices elsewhere. now exists from the Atlantic to the Mississippi, which renders it impossible to carry on our inland commerce, unless at a ruinous sacrifice. Can it be supposed that these representations were made without due inquiry, not upon good ground, not in the language of truth? They tell us that the change which has recently taken place in the money market, the inland exchanges, and in all our commercial transactions, presents a state of things in which there are exhibited a general want of confidence, and a fearful apprehension of greater impending evils. They state, as proof, the extravagant premiums required for Mr. S. proceeded. He regretted that it should seem money on the best security, and the rapid and immense necessary for some gentlemen, who had already taken no depreciation in every kind of property, real and personal. little part in the general discussion, to arrest the present They tell us, in substance, that a local currency, issued debate, and to deprive others of an opportunity which by local banks, cannot be made general, and is wholly in- had been afforded to themselves. He must say, he was very adequate to the purpose of carrying on the trade and the sorry that some of those who, for days, ay weeks, had been interchange of commodities between the different and dis-occupying the time on this question-this very questiontant parts of this widely-extended Union. They tell us, also, (and which it is equally important to know,) that the difficulties which now exist have arisen principally, if not Mr.SELDEN explained, and continued: What were the exclusively, from the unfortunate change which has taken circumstances in which the country was now placed, as place in the relations between the Government and the regarded its currency? And was there not now a state of Bank of the United States, and to the probably unfore-things which, more than at any previous period, required seen consequences which have flown therefrom. the favor and aid of this Government in protecting the

Mr. SELDEN then asked the consent of the Honse to proceed; and, upon a division of the House, leave was granted.

The SPEAKER informed the honorable member that he was departing from the course allowed by the House.

In all these representations, the memorialists may be commercial interest? Previous to the month of March, relied upon; and however strong may be our attachments 1833, the merchants had an average credit of from ten to to those who may have directed or advised the measures twelve months for duties; this credit itself furnished an which have lately been pursued by the Government, the average equivalent to an equal amount of capital in their practical and probable results of those measures are, and operations. How did the matter now stand? By reason must be, better understood by the petitioners than by those of the alteration in our revenue laws, of long credits for whose avocations in life, whose other and higher duties, short credits and cash duties, they have been compelled have directed their attention to other objects and pursuits. to pay not only the duties secured on goods imported for What are the results now exhibiting? Every day we the year preceding that period, but also the duties on the hear of the most extensive failures; some-I may say al-goods imported since; making in the aggregate, in addiready many of the most substantial mercantile houses and tion to their usual payments, the sum of ten millions of dealers in stock and exchange have stopped payment in dollars. Yet, with the increased difficulties, they have the city of New York, possessed of property which, under met their engagements with the Government without the other circumstances, would have enabled them to retire defalcation of a cent. And this is the moment selected to with fortunes, which is now sacrificed, and creditors re- make a change in the national currency; this is the momaining unpaid. These were only the harbingers of ment when a new attitude is assumed by the administraothers far more numerous. He spoke from the testimony tion and by the bank. And on the one side it is deemed of those well acquainted with the present state of things,necessary to commence, and carry into execution, the and who were above all exaggeration or misrepresentation. plan for closing the bank, by withdrawing from it the conThe memorialists are intimately connected with, and fidence and the funds of the nation; and on the other deeply interested in, the local banks; they know their ca-side it is found necessary to make large reductions in its

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Memorial of Merchants, &c. of New York.

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loans, to protect itself from the effects of the withdrawal not, is guarded, so far as relates to the interference of of that confidence and those funds.

other States, with a State pride, which will resist and control all attempts from abroad. Did not these objections exist, the difficulty and expense of a local bank placing funds at various points necessary to sustain its circulation, limited and curtailed as it must be by other banks attempting to pursue the same course, must effectually prevent local banks from obtaining, or attempting to obtain, a general circulation.

Let me ask whether a course like this is not almost sufficient to justify the merchants themselves in assuming a hostile attitude? and saying that, if the Government consider it of no importance to aid and foster them in times of difficulty, they will withhold their payments, and leave the public officers to pursue their remedy? It will scarcely be said that the Government fares better than other clients in the business of litigation. It would be unwise to The memorialists say that the scheme sought to be drive to such a result. Our commercial men would bear carried into execution by the administration is unwise long and endure much before they would depart from the and impracticable. Are not the above suggestions, of path of duty. Should the Government, however, system- themselves, sufficient to justify their conclusions? A naatically pursue a course fatal to their interest-should it tional bank, in their opinion, can alone create a good, by rigid unkind treatment compel them to resist-above sound, and sufficient national currency. That alone can all, should our merchants, from any cause, not consider carry on its concerns with benefit to itself, and with it a point of honor to fulfil their engagements, the loss equal corresponding advantages to every section of the which the revenue must sustain might prevent us from United States. No local substitutes will answer the purmeeting our ordinary expenditure. pose; without it, all the exchanges in the interior are to

The act of 1833, whereby the system of short credits be charged with ruinous premiums and discounts, not for and cash duties was ingrafted upon our revenue laws, the benefit, but to the loss, to the great loss, of every class was the result of a compromise-the middle ground upon of our citizens, whether producer, manufacturer, mechanwhich the different States and different conflicting inter-ic, or merchant--perhaps to raise up an increased number ests were able to unite. It might, therefore, be consid- of brokers and speculators, who will thrive upon the deered the settled and fixed policy of the Government, not preciated and disorganized state of the bank note currency. liable to alteration. Independent, therefore, of the par- So manifest were these results, that those who have ticular concurrence of double duties during the past year, declared their opposition to a national bank--not to this the merchants are from this time forth deprived of all the bank-to any national bank-now aver in this hall, and elseadvantages arising from long credits on the duties to be where, that their efforts are to be directed against the paid into the treasury, and, as a necessary consequence, whole system. The language is too plain to be misunrequire a continued increased amount of accommodations, derstood. The course has been too plainly delineated, only to be afforded by an institution so extensive in its and too often repeated by those who are known to speak operations and credit as to include every point at which from authority, and to indicate the opinions of the adminthe revenue is collected and disbursed. istration. Our whole banking system is to be overthrown, and we are deliberately told that we must return to gold and silver as the only medium for carrying on our commerce, both at home and abroad.

This House must and will deem it their duty not to unite in, but to resist, any plan which has for its object, or which produces as a result, the ruin or injury of this most useful portion of our citizens. They have arranged a sys- Where, Mr. Speaker, are we to procure the gold and tem of trade founded upon credit, and credit alone, silver? Will those who have them take our local bank whereby the inland and foreign commerce is carried on notes in payment? Will they pass more current in Engwith almost entire certainty, and with the least possible land or France than here? The precious metals are to be expense. The produce of the interior reaches its ulti-paid for; the world would not give them to us without an mate market, is sold, and returns are made at the small-equivalent; and we are called upon to believe that the est cost; the products and goods from other countries country would be benefited by parting with eighty milreach the consumer charged with a smaller advance than lions of dollars of its property, to procure a substitute for one without experience would suppose within the power a currency now sound and good, and which literally costs of any system of commercial operations. Why jostle, or disturb, or destroy the machinery? It works well-it performs in every part admirably.

us nothing. The whole effort is impracticable--it cannot be carried into execution. The memorialists do not come forward as the advocates or opponents of the pres Our local banks perform a most efficient and useful part ent bank; they do not wish or intend to become parties to in this great machine, yet their operations were essen- that contest. They believe, and I believe, that a bank tially and necessarily local; their credit was and must be is essential; and they are opposed to that policy which confined, so far as relates to their bills, to the neighbor- would deprive the country of its benefits. They wish the hood. The fact that those who receive or circulate those charter so modified as to prevent it from being used as a bills, at a distance from the place of issue, would not political institution, either by or against the Government. stand upon equal ground with those nearer the institu- They believe either position hostile to the purposes for tions-that in case of failure, or anticipated failure, they which it should be created, and that provisions might be would not be at hand to present them for redemption, formed which would prevent it from assuming such an was sufficient, of itself, to prevent local banks from giving attitude. a general circulation. Even in our own State, arranged Mr. S. said he was not a convert to the new theory, as our banking system is, the notes of the western section that bank notes, whether national or local, were hostile to do not pass current; they are oftener cashed by the bro- the liberty of the country, or injurious to the interests of ker than passed into currency, and in all cases are received any portion of the people. On the contrary, he believed with reluctance and complaint. How, then, is it possible that every class, except the idle and profligate, had benfor the bank of one State to render its notes current in efited by the use of the important agency of bank notes. other parts of the Union? The prejudices of the people They had enabled labor, enterprise, and talent to comare against it. State legislation would be also directed pete with wealth. No man in this country, however poor against it. There is now a law of the State of New York, may have been his origin, or humble his condition, has which renders it penal to circulate notes of foreign banks been prevented from carrying into effectual and profitable less than five dollars, although the same restraint is not execution any business or enterprise, which offered any placed upon our own banks. The regulation of curren- reasonable prospect of success, who had integrity, capaAnd to our excy is considered in the light of an attribute of sovereignty; city, and industry to recommend him. and, whether constitutionally belonging to the States or tensive system of credits, founded upon bank notes, are

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Memorial of Merchants, &c. of New York.

[FEB. 3, 1834.

we principally indebted. Whenever we look to the rapid the power of steam, it may produce serious disasters. Yet increase of our population, and to the more rapid increase the benefits so far exceeded its disadvantages, that no one of national and individual wealth; when we look at the could hesitate upon the question of its continuance. The rapidity with which these States have advanced to their local banks required regulation; and those engaged in present imposing powerful condition, from the Atlantic to commerce have said that a national bank constituted a the western waters, filled with thriving cities, towns, and good and sufficient regulation--a regulation in which the villages, workshops and manufactories scattered through local and general circulation constituted mutual checks, every section, the farmer and planter furnished with a restraining excesses on either side. ready market at his door-no one, who will look at the cause, can deny that for these happy consequences we are mainly indebted to the facilities offered to enterprise by the circulation of bank notes.

To recur to the effect of the present plan upon the rev. enue: has it resulted as was anticipated? The theory of employing local banks as the agents of the Government has been already sufficiently tried. The experiment has All the necessaries of life, all the comforts and luxuries failed. Those who pay the revenue tell you that it has from every quarter of the world, are found in as great failed; that they have and must form insufficient instruabundance in the remotest settlements as on the shores of ments for collection or disbursement, without deranging the Atlantic. They are not only found there, but pur- all the channels of trade; that they can afford no sufficient chasers are found there; and no one who is willing to accommodations to enable them to pay their engagements labor is deprived of the ability to participate. If we are or to continue their operations. The state of things in all asked for the great efficient agent which has enabled us to our commercial towns confirms the representation. Busi realize all this, I answer, bank notes. Where would have ness is at a stand. Private negotiations and contracts have been our roads, our canals, our great lines of internal im- ceased. The only struggle seems now to be to meet the provement, penetrating the far West, were it not for the engagements already contracted. A different course must use of bank notes? be adopted.

It seems to me that we are quarelling with our best in- Upon the subject of accommodations to the debtors to terests; that we are seeking to destroy one of the most the Government, it may be remarked, that the selected important devices ever contrived by man, in this war upon banks cannot answer the purpose to the extent expected. bank notes. Let me say that the poor and middling classes There are three in New York, among which the bonds are more interested in this contest than the rich. The lat-due the Government are to be distributed. Each is com. ter have already realized those means whereby they may pelled to retain, subject to the draft of the Treasury, an accumulate more; the former can only hope to improve amount not used in loans not much less than would be retheir condition by the use of these circulating credits. tained by a single institution; thus withholding from the Labor alone will not do it; they must have means; they accommodation to our merchants nearly three times as must have facilities; they must have aid. much as would be otherwise required; and these embarI would, said Mr. S., put the question to the people of rassments are increased-yes, multiplied-as you enlarge the country, and nine out of ten of those who have ad- the number of depositing banks, either there or elsewhere. vanced to fortune will answer that their first successful ef- It had been said that it would be vastly better for the forts arose from their ability to borrow bank notes. I monetary system to be carried on and regulated by many would warn the labor, and enterprise, and talent of the different institutions, rather than one, on the ground of its country to be on their guard. The effort now making, great power. How, he would ask, was the Government whether intended or not, is to elevate wealth above char- of the country carried on? Had we one or a hundred acter and industry; and to give the vantage ground to executive heads? What is the strong argument in favor those who now have already their gold and silver, or the of one executive head, independent of its giving uniformmeans of obtaining them, which can never be recovered. ity of action? It is this-that the people have but one It is said that a gold and silver currency is more conso-agent to look to, one body to hold responsible. Sir, I say, nant with our free institutions. There is no truth in the with a national bank the people have but one great agent assertion. I, said Mr. S., deny it. Look to Europe; un- to look to, and past experience shows that it is compelled der what Governments has a sound paper circulation flour- to direct its course in pursuance of the popular voice-at ished? Under those which most assimilate to our own. one time to diminish its loans as excessive, at another In England, where the people have been able to preserve time to enlarge them as too contracted. With twenty a representative Government; where, whatever complaints Government banks, attention would be distracted, and may be made against other parts of her political institu- their managers may grant their favors and gratify their tutions, the country is governed by laws adopted by the partialities almost without the possibility of redress. Let representatives of the people; in France, from the mo- us have one national institution, one board of directors ment she returned to a representative system. Look to for a general superintendence, one president, to be kept Austria, to Spain, to Russia, and Prussia; have they been constantly up to public view. And while we thus comable to sustain or establish a sound paper currency? I an- mit to one head, or one board, this power, they will be swer, no. And their bills are dishonored at the very doors kept in constant check, at the same time that they are of the palace. There seems to be a species of repelling able to act upon enlarged views arising from a concenpower between despots and bank notes. The former can- trated knowledge of the wants, the products, and comnot live where the latter circulate, and the latter cannot merce of every section of the country. circulate where the former live. The people will not It is said by some that the people were willing to abannot trust a paper currency which is not protected by a don bank paper as the circulating medium. Where is the representative Government. It constitutes an efficient evidence? Do the resolutions from the Legislature of agent of the people's power. Despotism cannot reach or touch it, but it vanishes or dwindles into rags. Thereby they keep the property of the country out of the grasp of tyranny, and at a moment's notice transfer it to a place of security.

New York afford any such evidence? Does the conduct of her citizens afford any such evidence? No: on the contrary, we find that the same Legislature is called upon to incorporate full fifty new banks, with a combined capital of fifty millions of dollars or upwards. Do the resolutions In making these observations, Mr. S. observed that he from Ohio afford any such conclusion? No: on the con. would not be understood as saying that this important trary, that State, within the last two years, has doubled its agent was harmless. No; on the contrary, it required banking capital, and the people are asking for more. constant control and continued watchfulness. There was Every where-yes, every where-the attachment to bank a constant tendency to derangement and excesses. Like notes continues, and will, Mr. Speaker, continue, unless

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[H. of R.

their value or use is destroyed by depreciation and fail- have no power. It is a libel upon the people of this counures. The people call for good bank notes, such as will be redeemed in specie; and the question, in truth, is, whether we shall have a solvent or insolvent bank note circulation?

try. The ballot boxes have not and cannot be corrupted by the influence of wealth. The history of parties in this country is against it; the character of the American voters repudiates the charge; the course of the last election affords irresistible evidence against it.

All must admit, if our circulating medium is to remain in the shape of credits, we must have a regulator-a good Look back to the close of the administration of General and sufficient regulator. The question is this: shall we Washington: the federal party then greatly outnumbered have a medium so controlled that it shall continue sound their opponents, and owned by far the largest part of and stable? or is it intended to allow the local banks to the property of the country; yet, in the progress of a few throw out an extent of issues which they are unable to re- years, it sunk into a feeble minority. The wealth which it deem, and unwilling to reduce, until the whole are in- possessed was one of the causes of its downfall. The first volved in one common failure? In the hands of this House bank was unable to sustain a corporate existence beyond is the power of preventing such a catastrophe. We can- the period of its first charter; the present bank seems not dwell too long upon the subject of the power of a doomed to the same fate. The instinctive opposition to large moneyed institution. Mr. S. said, I admit that it ex-wealth by those who do not possess it, (and they must alists, and believe it can be controlled, and effectually con- ways constitute the great mass,) renders it powerless--it trolled. That power was brought into exercise by its might almost be said helpless-in a contest for political capacity to make profits. The proprietors of the present, ascendency. Those who have been successful in acquiror any other national bank, so regulated that it could not ing large estates, find, as a uniform accompaniment, the return to its stockholders a revenue exceeding that which loss of political influence. It must be so. It is well, as a will arise from other safe investments, would make but whole, that it should be so. The danger to which our inlittle struggle, either by using the funds of the bank or stitutions are exposed arises, in truth, from those who their own, to give it perpetuity or influence. They have no sympathies with the people, that seize upon the would change or withdraw their investments, and place popular will to direct it against the general interests, for them elsewhere, not subject to complaint or contest. The individual private benefit. stock of this bank has, as yet, not proved a very profitable investment, but its capacity to make profits has been developed; and to that point more than to any other should the attention of Congress be directed.

During the recent election, what evidence was exhibited? Pennsylvania, having a deep stake in continuing the bank at the city of Philadelphia, gave a larger majority than any State in favor of the present Chief Magistrate. The power of bearing down upon the local banks is The city of New York, deeply interested in commerce, much exaggerated. It can never be exercised until the relying upon and receiving large accommodations from local banks commence overtrading. As long as they con- the bank, gave an immense majority on the same side. tinue the business of discreet banking, making no exces- There was no section of the Union, which was expected to sive loans, or throwing out excessive issues, the national be favorable, which was not favorable to his elevation. It bank is powerless: when they commit excesses, that bank may be considered certain that a party will gain strength is powerful; and it seemed to him that this was one of the by arraying itself in opposition to the bank. great benefits of the institution. Again, this power is mu- How stands the charge against the public press? The tual. Suppose the excess is on the part of the Bank of very suspicion that it was influenced by accommodations the United States; that it improperly increases its loans, from, or payments by, the bank or its officers, was suffi and sends forth its bills; as a necessary consequence, cient to paralyze its influence. So strong was the feeling, those bills find their way into the local banks, and are re-that not only those papers against which there was reasturned for redemption in specie. The condition of the onable ground to make the charge, but those with regard national bank, exposed at every point, and in every sec- to which there was no proof, or any reason to believe tion of the country, compels that institution to keep itself that any proof existed, were stricken down in public within confined limits, and, as a necessary consequence, it opinion, and their efforts rendered useless in favor of the keeps the local banks within proper bounds. The great- bank, upon the mere allegation that they were working est amount of loans which that bank has had outstanding for the bank. A full answer to every argument which was about seventy millions of dollars: this was twice the ingenuity could devise in its support, which editorial inamount of the capital. At the same time, the bank, industry and talent were able to put forth in sustaining the addition to that capital, had large, very large deposites. institution, was found in the simple assertion that the Now, loans to twice the amount of capital would be con- newspaper was bought by the bank. A bank press—a sidered not an excessive business by our local banks. In purchased press. Any effort to deny it was taken for New York the law allows twice and a half the amount, evidence of the fact. and most of the banks in the interior avail themselves of Mr. Speaker, are not these observations well founded? the advantage; and banks in other parts of the country Politicians constantly act upon them, and those triumph have extended quite as much, without complaint. Twice in their plans who place themselves in opposition to the the amount was excessive for the Bank of the United advocates of any great moneyed institution. If, said Mr. States, and was deemed unwise and unsafe by many of S., I were striving for advancement, and were willing to the directors of that institution. It would scarcely be at- make all considerations yield to that advancement, my tempted again. It should be prevented by law. The ef- course would be very plain. I would be found uniting in fect, however, was, that at that period it was rather in the cry against this dangerous monopoly, overshadowing the power of the local banks than the opposite. And so the liberties of the country. It is a sound which will ralit must always be, when it pursues the plan of over-ly all the forces to the field-forces before which the trading. present bank will sink into its grave--forces before which no bank can stand for a moment in contest; and the larger the institution, the more certain is its death.

We have heard much of the political power exercised by the bank in the elections of the country. It seems to me, said Mr. S., that the proposition was inaccurately stated. There are objections to the present bank, or any other Whatever may have been the attempts of the bank, or of organized as this is--strong and powerful. They must the officers or stockholders of the bank, (and my purpose be removed. The memorialists understand the difficulis not to prove or deny them,) it is perfectly manifest that ties, and suggest the necessity of modifying the chartersuch attempts were, and must be always, ineffectual- whether the old one, or a new one-to meet these objecworse than ineffectual. They have no power-they can tions. Curtail its ability to make profits for the stock