tended, and more equally distributed; new stockholders may be substituted to the foreigners, as had been suggested in the report of 2d March, 1809; and any other modifications which may be thought expedient may be introduced, without interrupting the operations of the institution now in force, and without disturbing all the commercial concerns of the country.

If, indeed, the Bank of the United States could be removed without affecting either its numerous debtors, the other moneyed institutions, or the circulation of the country, the ordinary fiscal operations of Government would not be materially deranged, and might be carried on by means of another general bank, or of State banks. But the transition will be attended with much individual, and probably with no inconsiderable public injury. It is impossible that an institution which circulates thirteen millions of dollars, and to whom the merchants owe fourteen, should terminate its operations, particularly in the present unfavorable state of the American commerce, and after the great losses lately experienced abroad, without giving a serious shock to commercial, banking, and national credit. It is not intended to overrate the extent of an evil which there are no certain data to appreciate. And, without expatiating on the fatal and unavoidable effects on individuals; without dwelling on the inconvenience of repaying, at this time, to Europe, a capital of seven millions; and without adverting to other possible dangers, of a more general nature, it appears sufficient to state that the same body of men who owe fourteen millions of dollars to the bank, owe, also, ten or twelve to the United States, on which the receipts into the treasury, for this year, altogether depend; and that exclusively of absolute failures, it is improbable that both debts can be punctually paid at the same time. Nor must it be forgotten that the approaching non-importation will considerably lessen the efficiency of the provision, by which subsequent credits are refused to importers who have not discharged former revenue bonds. Upon the whole, a perfect conviction is felt that, in the critical situation of the country, new evils ought not to be superadded, and a perilous experiment be attempted, unless required by an imperious necessity.

In these hasty remarks, I have not adverted to the question of constitutionality, which is not a subject of discussion for the Secretary of the Treasury. Permit me, however, for my own sake, simply to state, that the bank charter having, for a number of years, been acted upon, or acquiesced in, as if constitutional, by all the constituted authorities of the nation, and thinking, myself, the use of banks to be at present necessary for the exercise of the legitimate powers of the General Government, the continuation of a bank of the United States has not, in the view which I have been able to take of the subject, appeared to me to be unconstitutional.

I have the honor to be, respectfully, sir, your obedient servant, ALBERT GALLATIN. Hon. WILLIAM H. CRAWFORD, Chairman in Senate.

Report of Senate Committee, on Renewal of Charter of Bank of United States

COMMUNICATED TO THE SENATE, MARCH 2, 1811.

Eleventh Congress, 3d Session

[Source: American State Papers, Finance, Vol. 2, pp. 486–487]

Mr. CLAY, from the committee to whom was referred the memorial of the stockholders of the Bank of the United States, praying that an act of Congress might be passed, to continue the corporate powers of the Bank, for a further period, to enable it to settle such of its concerns as may be depending on the 3d of March, 1811, respectfully offered, for the consideration of the Senate, the following report:

That your committee have duly weighed the contents of the memorial, and deliberately attended to such explanations of the views of the memorialists, as they have thought proper to present through their agents. That, holding the opinion (as a majority of the committee do) that the constitution did not authorize Congress originally to grant the charter, it follows, as a necessary consequence of that opinion, that an extension of it, even under the restrictions contemplated by the stockholders, is equally repugnant to the constitution. But, if it were possible to surmount this fundamental objection, and if that rule which forbids, during the same session of the Senate, the re-agitation of a proposition once decided, were disregarded, your committee would still be at a loss to find any sufficient reasons for prolonging the political existence of the corporation, for the purpose of winding up its affairs. For,

As it respects the body itself, it is believed that the existing laws, through the instrumentality of a trust properly constituted, afford as ample means as a qualified continuance of the charter would, for the liquidation of its accounts, and the collection and final distribution of its funds. But, should any inconvenience be experienced on this subject, the committee are persuaded it will be very partial, and such as the State authorities, upon proper application, would not fail to provide a competent remedy for. And,

In relation to the community, if the corporation, stripped of its banking powers, were to fulfill bona fide the duty of closing its affairs, your committee cannot see that any material advantage would be derived. Whilst, on the contrary, if it should not so act, but should avail itself of this temporary prolongation, in order to effect a more durable extension of its charter, it might, in its operations, become a serious Scourge.

Your committee are happy to say, that they learn, from a satisfactory source, that the apprehensions which were indulged, as to the distress resulting from a non-renewal of the charter, are far from being realised in Philadelphia, to which their information has been con

United States. In reply to which, the Secretary, by his letter to the chairman, referred your committee to his former report on the said subject, made to the Senate of the United States, in obedience to the order of that House.

Your committee have been attended by agents of the petitioners, who, in addition to the matters contained in the petition, have suggested to your committee that the object of the petitioners was to obtain the renewal of the charter in its present form; that, for this renewal, the bank is willing to make compensation, either by loans, at a rate of interest, or by a sum of money to be agreed upon, or by an increase of the capital stock, by a number of shares to be taken and subscribed for by the United States, to an amount adequate to the compensation to be agreed upon for such renewal.

These agents also suggested, that they were fully authorized and empowered to offer and conclude the terms, specifically connected with those propositions.

Your committee not feeling themselves authorized to enter into such terms, and judging that the extent of those propositions would better apply to the details of a bill, than to the adoption of a principle to be first settled by the House, have, therefore, foreborne to inquire into the extent of the propositions, and, without expressing an approbation or rejection of these offers, or giving an opinion as to the plan and reasoning of the Secretary of the Treasury, your committee, in order that the opinion of the House on this great national question may be declared previous to entering into the details connected with the subject, recommend the following resolution:

Resolved, That it is proper to make provision for continuing the establishment of the bank of the United States, with offices of discount and deposite, under the regulations necessary for the beneficial administration of the national finances, during such time, and on such conditions, as may be defined by law.

Report of Secretary of Treasury (Albert Gallatin), on Bank of United States

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, JANUARY 24, 1811. Eleventh Congress, 3d Session

[Source: American State Papers, Finance, Vol. 2, pp. 468–470]

The Secretary of the Treasury, in obedience to the resolution of the House of Representatives, of the 16th instant, respectfully submits the following report:

The Secretary of the Treasury is directed, by the resolution aforesaid, to lay before the House—

1. A list of the directors of the Bank of the United States, and of its several branches.

2. A statement of the stock held by foreigners, and in what countries; and of the stock held by citizens, and in what States and Territories.

3. The amount of specie, according to the last returns, in the vaults of the bank; distinguishing the part which belongs to the bank, the portion belonging to individuals, and to the United States.

It is enacted, by the sixteenth provision of the seventh section of the act to incorporate the subscribers to the Bank of the United States, that "The officer at the head of the Treasury Department of the United States shall be furnished, from time to time, as often as he may require, not exceeding once a week, with statements of the amount of the capital stock of the said corporation, and of the debts due to the same; of the moneys deposited therein; of the notes in circulation, and of the cash in hand; and shall have a right to inspect such general accounts in the books of the bank as shall relate to the said statements: Provided, That this shall not be construed to imply a right of inspecting the account of any private individual or individuals with the bank."

No other but general statements, such as are enumerated in that clause of the act, can be required by the Secretary of the Treasury, or have been furnished by the bank. And these include neither the names of the directors nor the names or place of residence of the stockholders. On the subject of directors, no statement whatever is ever made; and in relation to the capital stock, its gross amount, and the portion allotted to each branch, are the only particulars which can be required, or are exhibited in the statements transmitted to this office. It was ascertained, some years ago, from an authentic source, that near threefourths of the stock (about 1,800 shares) were held by foreigners; and the fact though not officially communicated to this department, was stated in the report respecting the bank, made to the Senate, on the second day of March, 1809. No subsequent or other information has been obtained on that subject; and, with very few exceptions, the names of the directors and stockholders, either abroad or in the United States, are unknown to the Secretary.

The specie in the vaults of the bank and its branches amounted, according to the last returns, to 5,009,567 dollars; the whole of which was, strictly speaking, the property of the bank, and, together with the debts due to that body, constituted the fund from which its own debts, including both bank notes and deposites, must be paid. The sum deposited by the Treasury into the bank and its branches, amounted, by the last return of the Treasurer, dated 21st instant, and marked A, herewith transmitted, to 1,930,000 dollars; and that deposited in other banks, to 875,462 dollars; making, together, the balance in the treasury on that day, 2,805,462 dollars. The total amount of deposites by Government, by other banks, and by individuals, into the Bank of the United States and its branches, appears, by the last received returns, to be 8,464,770 dollars. And the statements B, B2, and B3, herewith transmitted, and extracted from the latest returns received at this office from the bank and from the Treasurer, exhibit a general view of the situation of the bank, and of all the objects embraced by the third part of the resolution of the House.

fined. It was long since obvious, that the vacuum, in the circulation of the country, which was to be produced by the withdrawal of the paper of the Bank of the United States, would be filled by paper issuing from other banks. This operation is now actually going on; the paper of the Bank of the United States is rapidly returning, and that of other banks is taking its place. Their ability to enlarge their accommodations is proportionately enhanced; and when it shall be further increased by a removal, into their vaults, of those deposites, which are in possession of the Bank of the United States, the injurious effects of a dissolution of the corporation will be found to consist in an accelerated disclosure of the actual condition of those, who have been supported by the credit of others, but whose insolvent, or tottering situation, known to the Bank, has been concealed from the public at large.

Your committee beg leave to present the following resolution: Resolved, That the prayer of the memorialists ought not to be granted.

Report of House Committee, on Renewal of Charter of Bank of United States

COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, MARCH 2, 1811. Eleventh Congress, 3d Session

[Source: American State Papers, Finance, Vol. 2, p. 487]

Mr. P. B. PORTER, from the committee to whom was referred the memorial of the stockholders of the Bank of the United States, made the following report:

That they have carefully examined the various matters set forth in the said memorial, and attentively listened to the representations of the gentlemen who have appeared in behalf of the said petitioners. The object of the memorialists is to obtain an extension of their corporate powers, beyond the period limited for the expiration of their charter, so as to enable them to prosecute for their debts, and to arrange, liquidate, and close, the various concerns of the company. The committee are of opinion that a law of Congress, granting the powers prayed for, would facilitate the final adjustment of the affairs of the bank, although they do not think such a law indispensable to that object. But, believing, as your committee do, that, în granting the original charter to the stockholders, Congress transcended the legitimate powers of the constitution, the same objection now presents itself to the extension of any of their corporate capacities.

If the committee had time to go into the investigation, and to present to the House the various reasons which have conduced to this opinion, it would be more than useless, to divert its attention from the important concerns of the nation, at this late period of the session, to a subject which, but a few days since, was so fully and elaborately discussed. They, therefore, beg leave to recommend the following resolution:

Resolved, That the prayer of the memorialists ought not to be granted.