6, 1832.] Bank of the United States. [SENATE. ers would not receive six per cent. for their invest- The value of money, he stated, changes every day, and ts! They have incurred all the risks, and suffered in the same place, as it is controlled by circumstances. losses; aided the Government in the collection and One per cent. he looked upon as being as much as the ursement of the revenue, without compensation; and institution could bear; and two hundred thousand dollars Government was annually receiving (as Mr. F. be- would leave room for the States to tax, so far as to make ed) a benefit from the bank of at least three hundred the amount of the contribution of the bank equal to that. sand dollars, to which he would add an annual tax of The whole amount of public deposites in the bank had hundred thousand dollars; which would be equal to never exceeded two million six hundred thousand dollars; nnual tax of half a million of dollars: this he believed and it was not likely that in future these deposites would e as much as the bank could well bear, for the privi- much exceed the sum due to the institution for its agency and the use of Government deposites. He had no in the public business. ot they would accept the charter, even if a heavier Mr. SMITH said, the Senators who are desirous to exact should be imposed; but, if the bank was unreasonably an unreasonable bonus from the bank, have frequently dened, an inducement was held out to them to consult quoted the offer made by certain speculators. [Here Mr. r own interest, rather than the interests of the coun- SILSBEE rose, and repelled the epithet "speculators,' All experience proves that, unless men are com- and said the Boston petitioners were highly respectable sated for public services, they will compensate them- gentlemen.] I mean not, said Mr. S., to arraign their res! If the Government deals liberally and honorably respectability; they are known to be very respectable; hits agents, it furnishes the best security for fair and but if we call a rose by another name, it still retains its orable dealing on their part: if the bank places confi- odor. The Senator from Massachusetts [Mr. SILSBEE] ace in the Government, they may reasonably expect will permit me to say that the proposition was a grand iprocal confidence and good faith in the officers of the speculation--insidious, and well calculated to deceive k. Mr. F. believed the average value of bank stock those who are not practically acquainted with banking I been estimated too high. With respect to a tax of operations. What is the proposition? That the petitioners per cent. on the stock, as paid by the Boston banks, agree to pay one per cent. on the capital annually, as a ertainly must be admitted that, in large commercial bonus to the Government, and submit to the taxation of the es, banks can bear a heavier tax than in the interior; States at a rate not exceeding the amount of that imposed , if the United States' Bank could limit its branches on their own State banks, respectively, for which they the six large Atlantic cities, it could better bear a ask a charter for twenty years, and a capital of fifty milof four hundred thousand dollars, than with its lions of dollars at par. I consider it highly honorable to nches in the interior States, for the accommodation of the Senate that there could not be found one member purchasers of the public lands, and the facilities and of the whole body, who would lend himself to a proposi urity of the revenue of the Government, they can af- tion to sell a charter to men who, having bought, would d to pay the proposed tax of two hundred thousand dol- claim the right to sell; over whom there would have been for it should be recollected, all their losses were incur- little control; and who would have used the power under in the Western States. The bank is now in successful their charter for their own emolument, without any regard ration; the Government receives the full benefits ex- to the interest or accommodation of the Governmentted by its most sanguine friends. The president and men who might have used their power for party purposes, rd of directors have discharged their duties faithfully, and who would soon have sold out the stock to an imacquired useful knowledge by long experience. The mense profit, and cared little for the trifling bonus they ire public confidence in the bank, with the restrictions had offered, or the illusory submission to the taxation of osed by this bill, will secure a sound and equal cur- the States. What would have been the profits of these cy through the whole country. The amount of tax memorialists, had their application to Congress been sucms but a small part of the interest which the country cessful? Suppose they had sold the stock of fifty millions in this institution, or in the benefits which will result at what it is presumed to have cost the stockholders of the m its faithful administration. He believed that a tax present bank, on the average, say twenty-five per cent., hree millions of dollars, to be paid in annual payments a sale, at this rate, would result in a nett profit of twelve wo hundred thousand dollars, for fifteen years, was as million five hundred thousand dollars, for which they, ch as the bank could well pay, and with which the (in their great liberality) offered a bonus of one per cent. vernment ought to be satisfied. annually on the capital. It may be asked, do we not, by Mr. JOHNSTON said that one of the grounds on which a renewal of the charter, give a like profit to the present present motion was made, was the amount which the stockholders? I answer, no. Few of the original subdes taxed their banks. He suggested that if the exam-scribers now hold the stock; and even to those few the of South Carolina in taxing the bank shares was fol- stock cost them at least $115 for every share of their red, and he saw no objection to it, the State tax, added stock. They gave from ten to twenty per cent. for the the bonus, would bring up the amount to one per specie paid in, and lost the difference between the value of t. The fluctuations in the price of stock he regarded their stock, which they had paid in, and the value at which mere matters between the buyers and sellers, accord- it was subscribed. Thirteen millions of three per cent. to the speculative spirit which prevailed. He re- were paid in (which the holders had refused to part with aded the Senate that these were times of extraordi- to the Government) at sixty-five per cent., now worth prosperity, that we have had an unusual importa- ninety-eight per cent., which was a clear gain to the Goand that capital was hunting about for a market. vernment, on that stock alone, of $4,290,000, and an tit would not be fair to take these times as a criterion equal loss to the payers to that amount. Many of the the future; and he did not believe that, taking the present stockholders paid for their stock one hundred and of the charter throughout, the rate of dividend forty per cent. and some as high as one hundred and fifty uld exceed five per cent. The gradual disappearance per cent.; but let us suppose the average of all the stock all other public stocks, of a safe character, would leave to have cost one hundred and twenty-five per cent., can bank as the only secure depository. Yet, a great the stockholders, in a common sense view of the subject, of the stock was the property of females; and no be compared with the petitioners for a new bank? They at proportion was the stock of great capitalists. He have already paid for their stock at one hundred and ted that the fact that the discounts of the bank at six twenty-five per cent., and the proposers ask the charter cent., amounting to sixty millions, was to be received at par. The comparison is idle, and not worth a moment's evidence that there was still a great demand for money. consideration. SENATE.] Bank of the United States. [JUNE 6, 1832 But we are told, said Mr. S., that we are about to grant an institution. This has been shown by several reports to certain individuals the renewal of a charter, that will from the Committee on Finance, which have not yet been be immensely advantageous, and make their fortunes; controverted, and to which I ask leave to refer for a fall that the stock will rise to one hundred and forty, or even detail of facts and statements. They will show the great one hundred and fifty per cent. I grant that the stock facilities and advantages which the Government derives may be so advanced, and I have no doubt that brokers from this institution. Other advantages might be shown, will run it up for speculation, and consequently there will such as the surrender of United States' stock in June, be a momentary rise in the price of the stock; but it will, 1817, to the amount of thirteen millions, the interest on like all other stocks, fall to its proper level, that is, to a which ceased on the 30th June, and for which the trea rate which will give to the holders five per cent. annual sury did not pay the bank until the 8th of July, when two interest. The rise of the stock will not increase the divi- millions were repaid, and the remaining eleven millions dends, and the value of the bank shares must be regulated on the 6th of August, and then without interest; and on by the dividends. Few of the present holders of the the 1st of January, 1818, the bank advanced $1,172,014, stock wish to sell. If they get only five per cent. it is to enable the treasury to pay the stocks then redeemed better to them than six per cent. in any other way, be- The President, in his messages, bears testimony to the cause the dividends are certain and semi-annual. They friendly and accommodating temper of the bank toward are certain of their receipts, and shape their expenses ac- the Government, on all occasions. I beg to be permitted cordingly. And what is this immense interest which to refer to one of the reports of the Committee on F Senators say that the present stockholders will receive,nance, to show the difference between the old and the if a renewal of the charter shall take place? Not more present bank and the Bank of England. The charter of than $5 60 per cent. per annum. The bank dividend, the old Bank of the United States was predicated on tha for the last two years, has been seven per cent. on the of the Bank of England. Not so with the present Bank par value, but the holder will get only seven dollars per of the United States. It differs in many essential particu annum on what cost him $125, in fact, only $5 60 per lars, and may afford a lesson for the politicians of England. cent. for the use of his money, when, on mortgages, when the question of renewal of the Bank of England: he could realize six per cent.; and this is the immense agitated in Parliament. The Bank of England is now gain which will be secured to the holders by the renewal and ever was, a great political engine; and the old Bank of the charter. The non-renewal of the charter will de- of the United States intermeddled with the political prive them of one-fifth of their capital, to the great injury affairs of our country, by which conduct it lost its char of the widow, the orphan, the mechanic, the professional ter, or, what amounts to the same result, a renewal of the man, the farmer, and the merchant, retired from trade. charter was refused by Congress. I voted against the re But the foreign stockholder is to obtain an immense ad-newal, on the ground of its interference in the elections, vantage. What, in sober truth, will this advantage be? and because it would not consent to an increase of its capiHis agent in this country will receive $5 60 on the cost tal, so that the democracy of the country might partici of each share to him; from which deduct ten per cent.pate in the direction of its affairs, and thereby check its loss of exchange in remitting to the foreign stockholder interference in the political matters of the day; and if it in England, and his nett interest, or advantage, will be can be proved that the present bank has, at any time, $5 04 per cent., and the agent's commission will reduce it to less than five per cent. Will any one say that this interest is too much? Foreigners will gain but little by the rise of the value of the stock in the market. They want a certain income, a safe investment of their capital, and they will prefer holding their stock to selling it, should speculators even force it up to one hundred and fifty per cent.; for, at that price, it would give them a better interest than they could get at home. made use of its power to influence elections, I will vote against the renewal of its charter. The old bank was not bound to give any aid to the Government by its charter, nor does the Bank of England afford any aid to the Bri tish Government. I proceed to examine more particu larly into the charters of the old Bank of the United States, and its prototype, the Bank of England, and intend to contrast them, in some respects, with the bank charter now before the Senate. It has been said, Mr. President, that the nett profit of Much has been said about the exclusive privilege grant the bank has been nine per cent. for the year 1831. Ied by the charter, as if no equivalent had been imposed have not examined; I hope it may be so. It will afford on the bank. In the report of the Committee on Finance some compensation to the stockholders for their not hav-in 1828, now before me, it is asked, What facilities does ing divided more than five per cent. on the par value of the bank give to the treasury for the exclusive privilege their stock for the fourteen preceding years. One swal-Answer. It collects all the custom-house bonds; it relow does not make a summer; nor ought one good year ceives, and keeps safe, the receipts for public lands, for the bank to be considered as a criterion to judge by, or on which to estimate for the future. The year 1831 was a year of great pressure on the money market. The State banks were compelled, by the demand for specie, to lessen their discounts, which was dangerously felt by the merchants whose bonds at the custom-house were becoming due. The bank (to its credit) lent its great aid in the hour of difficulty, by extending its discounts beyond its usual practice, not for gain, but to prevent the impending ruin to commercial men, and thus its profit may have been increased. wherever it has a branch, and makes itself responsible for the same. The old bank was under no such obliga tions to the Government, nor is the Bank of England obliged to render such service to the British Government. The present Bank of the United States transfers the mo ney of the nation from any one part of the Union to any other part where it may be required. It makes these transfers without any charge whatever, not even for dif ference of exchange, which charge would constitute no inconsiderable amount if charged upon the treasury. Does the Bank of England perform this important service? I have given this view, said Mr. S., to correct false im- Certainly not. Did the old Bank of the United States pressions. My object is, as it ought to be with every perform this service? No. It absolutely refused to do Senator, the interest of the nation, and not that of the so, and the Government were compelled to obtain the stockholders, whom I consider as mere agents, to carry aid of the State banks to perform this service. The preinto operation the great objects for which this bank was originally instituted. But for this consideration, the bank would, in my opinion, be unconstitutional, and would receive my negative. The Government cannot, in my opinion, carry on its fiscal operations in safety, without such sent Bank of the United States pays the public debt, by which it is subjected to large drains of specie, which are highly injurious to its other operations, inasmuch as it compels the bank to lessen its discounts. Foreigners own about one-third of the stocks of the United States, which, JUNE 6, 1832.] Bank of the United States. [SENATE. when paid to their agents in this country, causes a rise in $4,000,000-five per cent. per annum being nearly as the rate of exchange above the real par value, and induces much as the stockholders will receive for the use of their an export of specie. Did the old Bank of the United money. Surely this ought to be considered as amply States pay the public debt? No. Commissioners did sufficient; a larger bonus would be unjust and unreasonthis service, and received nearly $20,000 per annum from able. d OL the treasury. Does the Bank of England pay the debt Mr. President, I entreat Senators to pause and reflect; of the nation' It is under no obligation to do so, and to avoid any trammels on the bank, that may, in the slighttherefore **7 d and paid for the management of the est degree, tend to endanger its safety or security. It is robjects, the sum of £263,736 sterling, a national institution, of great public utility; on its punc--------«i currency, $1,170,987 annually, for such ser- tuality and integrity depend the general credit and confivice. The present Bank of the United States pays all dence in the circulating medium of the country. If its the pensioners, where it has a branch. The old bank credit or solidity be doubted, confidence will be withdrawn. paid none. The commissioners received two per cent. for We should be careful to impose on the institution no obli paying them. If the bank charter should not be renewed, gation that, in its consequences, may tend to the remotest a commissioner must be appointed in each State of the danger. I think that the fourth section is of that chaUnion, say twenty-four commissioners, who will be paid racter; it may endanger some of the weaker and distant two per cent. on the amount disbursed by them. My branches. Should any of them be overloaded with the friend from Connecticut [Mr. Foor] will agree that the notes of other and distant branches, it may disable such amount payable annually to the pensioners cannot be less branch from paying specie on demand. If so, the alarm than one million and a half per annum, the commission may cause ruin all around, and be fatal to the general on which will be an annual charge of $30,000 on the credit and confidence now entertained by all in the safety treasury, which payments are now made by the Bank of of the United States' Bank notes. Confidence once lost the United States, free of charge to the Government. In in any bank is not easily regained. addition to the loss which may arise from bad agents, the Mr. KNIGHT thought it would be difficult to ascertain bank, with its eagle eye, lost $20,000 by an agent to what should be the precise amount of bonus. The Senawhom that amount had been sent to pay the pensioners tor from Maine was too high, and the Senator from Conin one State. In addition to all the aids and advantages necticut too low. He thought the rule should be to take which I have enumerated, the bank is a safe deposite for one-seventh, and make the bonus 350,000 dollars. the public money. Losses to an amount of more than a He moved to fill the blank with 350,000 dollars. million of dollars had taken place in consequence of the Mr. SPRAGUE said he was much obliged to the venefailure of State banks in which the public funds had been rable Senator from Maryland for the light he had shed on deposited. If the present Bank of the United States be the subject. He had said that it would be an immense not rechartered, then there must be a State bank in each speculation to take this stock at par. If, then, the GoState in the Union to receive the public funds, over which vernment is not bound by any obligation to the stockthe Government can have no control, and with all which holders, why should they be expected to give at par a the Treasury Department will be obliged to keep accounts stock worth 150 dollars? He maintained that a permanent and open a correspondence. The public will be exposed stock at 44 per cent. was worth par. He was willing that to great risk, and no little inconvenience, by such an ar- the question should be first taken on the motion of the rangement, and the Secretary of the Treasury will be Senator from Connecticut before he made his motion. exposed to censure when any loss shall arise; and that losses will happen under this system of deposite, appears to me very certain. I have proved, Mr. President, to my own satisfaction, that the bank has fully compensated for the exclusive privilege, and will now proceed to consider the bonus. Mr. KNIGHT then withdrew his proposition, to allow the vote to be taken on 200,000. The yeas and nays were then ordered. Mr. TAZEWELL expressed a hope that the Senator from Maine would move his amendment now. Mr. MARCY moved to fill the blank with 525,000. Mr. KNIGHT then renewed his motion for 350,000. Mr. BROWN said he should vote against the largest sum, because he did not see any advantage which would result from it to the country. In proportion as the bank was burdened, would the bank burden the people by excessive issues. He would not incorporate such a principle in the charter. Mr. MOORE said he should vote against the largest sum. He should do this, because he believed the States had the right to impose a tax, and would exercise it, as soon as the branches were established. He would therefore vote for the smallest sum. The question was then taken on the largest sum, and decided in the negative, as follows: The bonus proposed by the friends of the bank is by them considered an equivalent for the advantage derived from the public deposites. They offer $200,000 per annum, being $25,000 more than one-half per cent. on the capital stock, amounting to three millions for the fifteen years; being exactly double that which was originally given for twenty years. The bank, being now in full operation, can better afford to give that sum, than it could afford to give a million and a half on its being first incorporated. Indeed, Mr. President, it was doubted at the time whether the amount of the whole stock could be taken up; in fact, it was not taken up. The subscriptions amounted to only twenty-eight or thirty millions; the balance was taken by speculators, and from thence arose all the misfortunes of the bank. The public deposites of the United States amounted, on the average of the preceding years, prior to the year 1829, to the sum of NAYS.--Messrs. Bell, Brown, Buckner, Chambers, $2,633,584. At a more recent date, the public deposites Clay, Clayton, Dallas, Dickerson, Dudley, Ewing, Foot, have amounted to eight millions and a half; but, as the Frelinghuysen, Grundy, Hayne, Hendricks, Holmes, duties must be reduced ten millions, we ought not to esti- Johnston, Kane, Knight, Mangum, Miller, Moore, Naumate the deposite at more than four millions of dollars in dain, Poindexter, Prentiss, Robbins, Robinson, Ruggles, future. On that amount I will endeavor to show the re- Seymour, Silsbee, Smith, Tipton, Tomlinson, Troup, sult. It has been proposed to tax the bank with an inte- Waggaman, Webster.—36. rest of three per cent. for the deposites; and this would The question was then taken on the motion of Mr. be just, if no bonus were payable. The bonus is proposed KNIGHT to fill the blank with 350,000, and also decided to be $200,000 per annum. An interest of three per in the negative, as follows: YEAS.-Messrs. Benton, Ellis, Forsyth, Hill, King, Marcy, Sprague, Tazewell, Tyler, White.--10. cent. on $4,000,000 would amount only to $120,000, YEAS. Messrs. Bell, Benton, Dickerson, Ellis, Forthe bonus actually given for the use of the deposites of syth, Grundy, Hill, Kane, King, Knight, Mangum, Marcy, YOL, VIII.-66 .SENATE.] Bank of the United States. [JUNE 6, 1832, Prentiss, Robinson, Seymour, Sprague, Tazewell, Tom. He thought it desirable to avoid any constitutional allulinson, Tyler, White.--20. NAYS.--Messrs. Brown, Buckner, Chambers, Clay, Clayton, Dallas, Dudley, Ewing, Foot, Frelinghuysen, Hayne, Hendricks, Holmes, Johnston, Miller, Moore, Naudain, Poindexter, Robbins, Ruggles, Silsbee, Smith, Tipton, Troup, Waggaman, Webster, Wilkins.-27. Mr. SEYMOUR moved 300,000; and the yeas and nays being ordered, the question was decided as follows: sion; and this section opens a field for constitutional controversy. He thought also that there was some parallel between this section and the section which Mr. Madison objected to. They were not exactly alike. The former bill provided for the disbursement of the bonus for internal improvement. He wished, if this principle was to be introduced, it would be done in a separate bill. Mr. DALLAS said that he had made calculations which showed that the inequality would be monstrous if this divi YEAS.--Messrs. Bell, Benton, Dickerson, Ellis, Forsyth, Grundy, Hill, Kane, King, Knight, Mangum, Marcy,sion was to take place. Prentiss, Robinson, Seymour, Sprague, Tazewell, Tom- Mr. SPRAGUE said he should not move a separate bill, linson, Tyler, White.--20. because he was opposed to a division of the surplus reve NAYS.--Messrs. Brown, Buckner, Chambers, Clay, nue. He had no solicitude as to the fate of the amend Clayton, Dallas, Dudley, Ewing, Foot, Frelinghuysen, ment. He thought the inequality of benefit to be derived Hayne, Hendricks, Holmes, Johnston, Miller, Moore, from this money in the treasury would be about the same Naudain, Poindexter, Robbins, Ruggles, Silsbee, Smith, as the inequality of the distribution. He had no wish to Tipton, Troup, Waggaman, Webster, Wilkins.--27. embarrass the bill by his amendment. Mr. DICKERSON then moved to fill the blank with Mr. BUCKNER said he hoped the amendment would 250,000; and the question being taken thereon, was de- be stricken out. He would oppose the proposition either cided as follows: now or in a separate bill. If he ever voted for such a proYEAS.-Messrs. Bell, Benton, Dickerson, Ellis, For- position, it would be on the principle of an equal distri syth, Grundy, Hill, Kane, King, Knight, Mangum, Marcy,bution, and not on the ground of federal numbers. An Prentiss, Robinson, Seymour, Sprague, Tazewell, Tom- equal distribution would benefit the States which had most linson, Tyler, White.-20. need of the aid. This mode of distribution would be de structive to the new States. The West was so satisfied of the injustice done to that part of the country by this mode of distribution, that they could not, would not, dared not, vote for it. He wished the questions of the bank and the tariff to be kept disentangled from any questions which could bring the West into opposition to them: and that must be the case if injustice were to be shown towards them in the arrangement. NAYS --Messrs. Brown, Buckner, Chambers, Clay, Clayton, Dallas, Dudley, Ewing, Foot, Frelinghuysen, Hayne, Hendricks, Holmes, Johnston, Miller, Moore, Naudain, Poindexter, Robbins, Ruggles, Silsbee, Smith, Tipton, Troup, Waggaman, Webster, Wilkins.-27. The question was then taken on the motion of Mr. Foor to fill the blank with 200,000, and was decided in the affirmative, as follows: YEAS.-Messrs. Bell, Benton, Brown, Buckner, Chambers, Clay, Clayton, Dallas, Dickerson, Ellis, Ewing, Foot, Forsyth, Frelinghuysen, Grundy, Hayne, Hendricks, Hill, Holmes, Johnston, Kane, King, Mangum, Miller, Moore, Naudain, Poindexter, Prentiss, Robbins, Robinson, Ruggles, Seymour, Silsbee, Smith, Sprague, Tazewell, Tipton, Tomlinson, Tyler, Waggaman, Webster, White, Wilkins.-43. NAYS.--Messrs. Dudley, Knight, Marcy, Troup.--4. Mr. MARCY moved to amend the bill by introducing a proviso that nothing herein contained should be construed to take away the right of any State to impose any tax on the branches, &c. The question being put thereon, it was decided as follows: YEAS.--Messrs. Benton, Brown, Dickerson, Dudley, Ellis, Forsyth, Grundy, Hayne, Hendricks, Hill, Kane, King, Mangum, Marcy, Miller, Moore, Robinson, Tazewell, Tipton, Troup, Tyler, White.--22. Mr. FORSYTH moved to amend the section by striking out the words "according to the federal numbers," and inserting to the amount of capital annually employed by the said bank in said State." Mr. MILLER said, in a constitutional point of view the amendment was liable to all the objections of the original amendment. Mr. HAYNE said he should vote against the amend ment, as he was opposed to the introduction of the prin ciple of raising revenue for the purpose of distribution. Mr. HENDRICKS said the establishment of a branch bank in a State was regarded as an advantage, and this proposition seemed to go on the ground that these States should have the additional benefit of this division. Mr. FORSYTH disclaimed any desire to have a division of the bonus among the States. But as the Supreme Court had adjudged that the States had not the power to tax, he wished to give the States an equivalent for what they had lost by that erroneous decision. He was opposed NAYS.-Messrs. Bell, Buckner, Chambers, Clay, Clay- to raising revenue for the purpose of distributing among ton, Dallas, Ewing, Foot, Frelinghuysen, Holmes, Jolin- the States. He would not sanction any such principle. ston, Knight, Naudain, Poindexter, Prentiss, Robbins, He could not vote for the section as it is. Ruggles, Seymour, Silsbee, Smith, Sprague, Tomlinson, The amendment of the Committee of the Whole, as amended, was then concurred in. The next amendment of the Committee of the Whole, restricting the bank from issuing notes below the value of twenty dollars, was then taken up. Mr. KING moved so to amend the amendment as to make the minimum ten dollar notes. The motion was negatived. Mr. TAZEWELL moved to amend by striking out "or drafts," so as to confine the restriction to notes or bills. The amendment was then concurred in. The next amendment was the ninth section, inserted in Committee of the Whole, providing for the distribution of the bonus among the States. Mr. WEBSTER hoped the Senate would disagree to this amendment. He had voted against it in committee. Mr. BUCKNER again spoke against the amendment. So the amendment was disagreed to. Mr. WEBSTER moved an amendment to the second section, by adding a provision preventing the bank from issuing orders as currency. Mr. CLAY asked if it were intended to prevent the bank from giving a check payable to the order of an individual, and endorsed by him, to another. Mr. WEBSTER said no such operation was intended. The words "put into circulation" seem to be plain. The transfer of a draft or endorsed note could not be consi dered as putting in circulation. A bill of exchange is not put in circulation, it is not currency. Some difficulty occurred in settling the phraseology of JUNE 6, 1832.] Bank of the United States. [SENATE. the amendment to meet the views of the Senate, in refer- bill had been drawn or revised there; and that upon ence to the prohibition of the circulation of branch or ders. The amendment of Mr. WEBSTER was withdrawn, to make room for one, to attain the same object, moved by Mr. TAZEWELL. The amendment was agreed to. Mr. FORSYTH moved to amend the bill by adding a section, providing that the bank shall not take more than five per cent. on its loans or discounts. Mr. CHAMBERS made a few remarks in opposition to the motion, and read the opinions of some experienced cashiers against the reduction of interest. The question was then taken, and the motion negatived as follows: YEAS.-Messrs. Benton, Brown, Dickerson, Dudley, Ellis, Forsyth, Grundy, Hayne, Hendricks, Hill, Kane, King, Mangum, Marcy, Moore, Robinson, Tazewell, Tipton, Troup, Tyler, White.-21. the plainest principle of propriety, that the bank being intended to aid the treasury, it was for the Secretary of the Treasury to give his opinion upon the fitness and suf ficiency of the aid to be given him. How, then, can the present Secretary be overlooked? How can he be passed by? Why should he receive a slight which has been put upon none of his predecessors' His individual sentiments are known to be favorable to a national bank; his public station gives him a right to be heard on the provisions of this one; the public service, we have a right to presume, would be promoted by the communication of his opinions. Who can assume to say that he can impart no useful information? Even if gentlemen thought so, it would be a breach of decorum to express, or imply, the sentiment. Yet a refusal to make this reference must imply it. The circumstances of the country are wholly changed from what they were sixteen years ago. It does not folNAYS.-Messrs. Bell, Buckner, Chambers, Clay, Clay-low that the same bank would be approved now, which ton, Dallas, Ewing, Foot, Frelinghuysen, Holmes, John- was approved then. The public debt, then great, is now ston, Knight, Miller, Naudain, Poindexter, Prentiss, Rob- nothing; the annual revenue, then immense, must now be bins, Ruggles, Seymour, Silsbee, Smith, Sprague, Tomlinson, Waggaman, Webster, Wilkins.--26. Mr. TAZEWELL moved an amendment providing that the president and directors shall, on or before the first day of the next session of Congress, signify their acceptance of the terms and conditions of this act. Mr. FORSYTH said this proposition would tie up the hands of the next Congress, and prevent them from amending the bill. He called for the yeas and nays; which were ordered. The question being taken, the amendment was agreed to, as follows. --Messrs. Forsyth, Hill, Kane, King, Marcy, Wilkins.--41. Mr. WHITE moved to amend the bill by providing that whenever the average amount of the public deposites shall exceed a million of dollars, an interest of three per cent. shall be allowed. The reduced more than one-half. The necessity and the uses for the bank are greatly diminished, if not entirely removed. Even upon the admission that the Secretary was in favor of a bank, and of this bank, it does not follow that he would be in favor of all its present features. He might not say that the necessities of the treasury required the present capital, and the present organization. He might think that the altered circumstances of the country required an alteration in the constitution of the bank. Whether he would so think, or not, he [Mr. B.] would neither say nor insinuate; but he would say that no one had a right to say or insinuate the contrary; that the Secretary YEAS.—Messrs. Bell, Benton, Brown, Buckner, Cham- had a right to speak for himself; and that it would be a viobers, Clay, Clayton, Dallas, Dickerson, Dudley, Ellis, lation of all precedent-a departure from all that was due Ewing, Foot, Frelinghuysen, Grundy, Hayne, Hendricks, to that gentleman, as the head of the treasury, and from all Holmes, Johnston, Knight, Mangum, Miller, Moore, that was due to the country, whose officer he was-to push Naudain, Poindexter, Prentiss, Robbins, Robinson, this bill through without a reference to him. The course Ruggles, Seymour, Silsbee, Smith, Sprague, Tazewell, of the two Houses and of their committees is uniform; Tipton, Tomlinson, Tyler, Troup, Waggaman, Webster, all bills of a public nature are communicated to the heads of departments whose administration they concern. benefit of their opinions, and the information to be derived from their counsel and experience, is always sought for. At this very session, the identical Secretary in question, the self-same Mr. McLane, who has not been called upon for a single opinion about the bank--a subject which be longs to his department--has been called upon for an entire bill and full report upon the tariff--a subject not beYEAS.—Messrs. Benton, Brown, Dickerson, Dudley, longing to his department; and now, if this reference is Ellis, Forsyth, Grundy, Hayne, Hendricks, Hill, Kane, refused, how can such discrepance of action be accounted King, Mangum, Marcy, Moore, Seymour, Sprague, Taze- for? The tariff was a delicate subject; and, frame his bill well, Tipton, Tyler, Troup, Waggaman, White.-23. as he might, the Secretary might see a storm excited NAYS.-Messrs. Bell, Buckner, Chambers, Clay, against him, and, through him, against the President: the Clayton, Dallas, Ewing, Foot, Frelinghuysen, Holmes, bank charter has some odious features in it, and the SecreJohnston, Knight, Miller, Naudain, Prentiss, Poindexter, tary might gain applause by recommending the abscission Robbins, Robinson, Ruggles, Silsbee, Smith, Tomlinson, of these features, or recommending a postponement of the Webster, Wilkins.--24. whole subject until the people were fully represented unMr. BENTON said the time had now arrived for making der the new census. If he is thus to be made responsible a motion which he had previously announced, namely, for a tariff bill, why not for the bank bill? If we needed the reference of this bill to the head of the Treasury De- his advice in one case, why not call for it in the other? partment, for his consideration and report. The bill had If there is any one measure, in the whole circle of legisnow received all the amendments which its friends would lation, which, above all others, deserves to be referred to admit; it was perfect, according to their conception; it an administration, it is the measure of creating, or continuwas, therefore, in a proper state to undergo the revision ing, a national bank. The whole argument for such an of the officer with whose department it was so intimately institution-its entire constitutional vindication-rests connected. He said that this was a motion of legislative upon the assumption that it is necessary to the financial propriety, of official courtesy, and public advantage; a operations of the Government. Now, of this necessity, motion which could not be refused without a seeming dis- the persons chosen by the people to administer the Governrespect to the officer at the head of the treasury-an ap- ment must be admitted to be, in some degree, judges. parent disregard to the Executive administration--and a Some may deem it unnecessary, as did Mr. Jefferson all possible detriment to the public service. Every bank his life, and as did Mr. Madison before the capitol was charter ever yet granted, or proposed to be granted, had burnt. Some may think one kind of bank necessary, and its origin in the Treasury Department. Every bank some another. Then why not consult the persons to whom This motion was negatived, as follows: |