JUNE 2, 1834.] Restoration of the Deposites. [SENATE. Secretary of the Treasury, kept the public moneys, for it in his time, as when it lately stopped. That bank had the first year of his administration, in these banks, and been a deposite bank for forty-five years, and the Governkept them safely there. When the Federal bank was ment had lost nothing by it, notwithstanding the attempt proposed in 1791, and the keeping of the public money's lately made to delude the public with a belief that it had was one of the services attributed to it, Mr. Jefferson, just been selected by Mr. Taney, and had immediately then a member of President Washington's cabinet, de- failed, with an immense loss to the United States. nied the necessity of a Federal bank for any such purpose, and openly declared himself in favor of the State banks. He said that these banks had already done this business for the Government, and done it well, and would no doubt enter into arrangements with the Treasury for doing it permanently, and on better terms than it could be done by the Federal bank. Mr. B. read an extract from Mr. Jefferson's cabinet opinion, delivered to General Washington at the creation of the first Federal bank, to sustain what he said of his opinions. The extract was in these words: Mr. B. said, it was thus proved, by an experience of twenty years-an experience running through the whole of the administration of Jefferson and Madison, and a part of their predecessors-that the public moneys may be safely kept in the State banks; and that Mr. Jefferson was right, in his cabinet opinion of 1791, when he gave it as his solemn opinion to President Washington, that there was no necessity for chartering a Federal bank to act as the fiscal agent of the Federal Treasury, and that the State banks would enter into arrangements for that purpose, and do the business well! "The existing banks will, without a doubt, enter into Mr. B. said it was true that the Federal Government arrangements for lending their agency; and the more fa- had since lost about a million and a half of dollars by State vorably, as there will be a competition among them for it; banks; but that loss took place in a season of universal whereas, the bill delivers us up bound to the national embarrassment, growing out of a state of war and general bank, who are free to refuse all arrangement, but on their stagnation of trade and commerce; a season which cannot own terms, and the public not free, on such refusal, to be made the rule for judging State banks, without exemploy any other bank. That of Philadelphia, I believe, tending it to the Federal bank also; and then it would be now does this business by their post notes, which, by an fatal to that bank, for the United States lost about eleven arrangement with the Treasury, are paid by any other State millions of dollars in sustaining the present Federal bank collector to whom they are presented. This expedient in the same season of embarrassment, and saving that bank alone suffices to prevent the existence of that necessity from sharing the general fate of the State institutions. which may justify the assumption of a non-enumerated This statement, Mr. B. said, was one of those facts which power as a means for carrying into effect an enumerated it was good to prove, and as the proof was in the docuone. The thing may be done, and has been done, and ments of the Senate, he would use it, and extinguish at well done, without this assumption; therefore, it does once this delusive and deceptive comparison between not stand in that degree of necessity, which can honestly State banks and the Federal banks. Mr. B. said, that justify it." every body knew that the Federal bank was on the point Mr. B. said, that what Mr. Jefferson affirmed in 1791, of bankruptcy in the year 1819, and that, although suswas afterwards proved under his own administration, and tained by an immense deposite of public moneys, stated that of Mr. Madison. During the whole of their admin. by Mr. Cheves at eight millions of dollars, it would still istrations, a large portion of the public moneys was kept have stopped payment in April, 1819, had it not been for in the State banks, and safely kept there. Mr. Gallatin, the forbearance of the State banks, and the critical arriin answer to a call made by the House of Representatives, val of specie from Kentucky and Ohio. The price which sometime before the expiration of the charter of the first it cost the United States to sustain it at that time, is found bank, showed that the public moneys were then kept in in the history of the three per cent. stock-that stock, twenty different banks, of which nine were the United the final payment of which the bank has lately caused to States Bank and its branches, and eleven were State be deferred in contravention of the will and power of the banks! Mr. B. thought this point so material, that he Government. The history is this: In the year 1817, the would read an extract from Mr. Gallatin's report, to show amount of this three per cent. debt was sixteen millions that he neither overstated nor mistook the facts. He and a quarter, and the selling price of it in market was a then read the names of the State banks employed by Mr. fraction over 60 cents in the dollar. It was evident that Gallatin, and the amount of public money in each. They if the United States entered the market like any other were: the Bank of Columbia, $115,192; the Bank of purchaser, and bought this stock at its real value, for a Alexandria, $61,917; the Bank of Newport, Rhode Island, stock bearing only three per cent. interest was really $35,788; the Bank of Pittsburg, $137,462; Roger Wil- worth but little more than 50 per cent., there would be liams's Bank, $53,882; the Bank of Pennsylvania, $92,628; an immense saving, no less than the difference between the Bank of Saco, $28,528; the Manhattan Bank, $188,670; the then market price and the full nominal value, which the Bank of Maine, $50,747; the Marietta Bank, $19,601; the Government would be obliged to pay, if it waited till and the Bank of Kentucky, $91,061. all the other public debt was paid, and then had to take Such, said Mr. B., was the distribution of the deposites up the certificates in the hands of the holders, all of whom of the public moneys in the time of Mr. Gallatin; more were assignees, and had bought the stock in market at a State banks employed than the whole number of branches low rate, proportioned to its low interest. The Congress and the mother Bank of the United States put together! of 1817 was fully aware of this advantage, and as the In several instances, a State bank was employed in the public Treasury was then full to overflowing, it detersame place in which a branch of the Federal bank was situ-mined to purchase in this stock. On the 3d of March, ated, and some of those employed then are employed now. 1817, an act was passed for that purpose, and the ComOf this class, Mr. B. instanced the Manhattan Bank of New missioners of the Sinking Fund were directed to buy it in York, and stated that the stock of this bank was, at this at a rate not exceeding 65 per cent. The deposites in day, about twenty dollars in the hundred higher than the the Bank of the United States, on that day, were about stock of the United States Bank! And this after all the twelve millions of dollars; on the June following, they efforts which had been made to shake public confidence in were sixteen millions; and the average monthly deposite, the State banks, and especially those of New York. The during the whole existence of the bank, has been Bank of Alexandria, which he said had lately stopped, $6,717,253. The commissioners began to execute the with a small amount of public money in it, and the pay-act. In the course of the year 1817, they bought in ment of which is secured, was also in the list of Mr. Gal- $2,693,092; in 1818, they bought $10,562, and, in 1819, latin's deposite banks, and had double as much money in they bought $158,964. These purchases were made at SENATE.] Restoration of the Deposites. [JUNE 2, 1834. 63, 64, and 65 per cent., and the saving to the Govern-doubt that the United States Bank has been instrumental ment was 364, 36, and 35 cents in every dollar, amounting in producing that result, if he will but examine the facts, to near one million of dollars on the whole purchase. the undisputed facts, now before the country. Every And there the purchases stopped. The deposites were great change in the loans made by banks, and in their cirnecessary to sustain the Bank of the United States. No culation of notes, operates directly upon the business conmore of the three per cents. were then bought; the price cerns of the community; and the more powerfully do sudafterwards rose above 65, and were finally paid, under den and great changes of this kind operate, as the busiPresident Jackson's administration, at par! About thir-ness is transacted upon a credit, and not a cash system. teen millions and a quarter of this stock had to be paid Sudden and great expansions of bank loans, and like at par about the year 1832, which might have been pur-sudden and great curtailments, must unavoidably produce chased at 65 in 1817, 1818, and 1819. The loss to the great plenty, and then great scarcity of money. The efGovernment was about $4,600,000, on the rise in the fect of extending loans, is to induce men to enlarge their stock, and about $6,400,000 in the interest paid upon it. business-to engage in new business-to make contracts The aggregate is eleven millions! And this is the amount, freely, and payable at longer periods in advance. And said Mr. B., of the loss actually sustained by the United if loans are not thus extended beyond what can be safely States in upholding this bank in that season of embarrass-permitted without a re-action, all may be well. But if a ment in which so many of the State banks failed, and in great change is soon made, and the loans are called in, which the Federal bank would have failed, if it had not the man of business is called upon to pay before his operbeen for the use of the public deposites. This was the ations have come to maturity, before he has turned his loss on one head alone, Mr. B. said. How much the peo-property into cash; or, if his property is disposed of, it ple had lost in consuming the time of Congress in de- remains uncollected on notes or bills of exchange; and bates about that bank; how much in printing for it; how these cannot avail him, if the banks are diminishing their much in using their money in electioneering against them; loans rapidly. Thus, his means are found not to be availhow much it might lose on the present stock, it was not able; and money, by this operation, is greatly in demand, for him to say: it was sufficient that he proved a loss of is difficult to be obtained, and ruinous sacrifices are the eleven millions in a single operation, as that would over- necessary consequence. Thus, the business transactions balance, by seven to one, the whole amount of the loss in are disordered, and distress is produced, and ruin follows. the State banks. In this state, if a general alarm can be produced, the efMr. B. said, that having shown that he stood upon fect of every evil influence is greatly increased; and it is Jeffersonian grounds, and upon safe ground, in recom- not strange that distress is great and general. Such a mending the State banks for places of deposite for the scene we have passed through, if indeed we have passed public moneys, he would make a few remarks, particular- entirely through it; and it is the part of wisdom to examly applicable to the amendment which he had offered. ine into the causes by which it has been produced. Has That amendment was a copy of a bill agreed upon in the bank greatly extended its loans, and greatly contractthe Committee of Ways and Means in the House of Rep-ed them, and thus greatly contributed to produce the reresentatives, for regulating the deposite of the public sult which such a course necessarily brings upon us. moneys in the State banks. It was a direct movement to- It appears from the report of the committee of the diwards regulating, by law, the keeping of the public mon-rectors of the bank, that the loan of the bank to the eys. For six months the Union had been filled with a cry business community, excluding the Government, was, in that the purse was in the hands of the President! that he January, 1831, $44,032,057 33 had seized upon the Treasury! that he had all the public money in his own hands! that he was a usurper! a despot! possessing all power! wielding all authority! brandishing the sword in one hand, and clenching the public purse in the other! This, he said, had been the cry for six months; and unfounded as that cry was--and more unfounded could not be the baseless fabric of a vision-yet, it was charitable to suppose, that those who raised it would be willing to put an end to the evil, real or imaginary, of which they complained. Let them, then, adopt the amendment. If agreed to the principle, they can arrange the details. Let them adopt the amendment. Let them regulate by law, and by law of their own making, and then the lawless state of things of which they complain will immediately cease. If not, let them complain no more. [Mr. BENTON was followed by Mr. CLAYTON, Mr. WRIGHT, and Mr. CLAY.] Mr. SHEPLEY then rose and said and that the same description of loans in 70,428,050 72 $26,395,993 39 Showing an increase of loans, or extension of means to borrowers, of $26,395,993 39, in sixteen months. It appears, by the report of the "Union Committee” of the city of New York, that, on the 1st of December, 1833, being the time of the meeting of Congress, the bank loan was $54,453,000, showing a diminution of the loan from May, 1832, of $15,975,050 72 in nineteen months; and it will be noticed that these results show an increase and diminution of loans, or, in other words, a fluctuation and change in the moneyed operations and business transactions of the community, of $42,370,000 in round numbers-in less than three years. The effect of such a course upon the value of property, has been most clearly and powerfully stated by a Senator from South Carolina, [Mr. CALHOUN,] as follows: Mr. President: It will, or will not, be proper to make "If we turn our attention to the laws which govern the the United States Bank the depository of the public mon- circulation, we shall find one of the most important to be ey, as it shall have been found to have fulfilled its duty to that, as the circulation is decreased or increased, the rest the country, or to have violated it. It becomes necessa- of the property will, all other circumstances remaining ry, then, to determine, before we adopt the resolution, the same, be decreased or increased in value exactly in that it has not been guilty of any misconduct; for it can- the same proportion. To illustrate: If a community not be supposed that it ought to be strengthened and aid- should have an aggregate amount of property of thirtyed, by depositing the public money in it, if it has, in any one millions of dollars, of which one million constitutes its degree, abused its trust. If it has aided and assisted to currency; if that one million be reduced one-tenth part, derange the moneyed concerns, and disturb the business that is to say, one hundred thousand dollars, the value of operations of the country for the last few months, that the rest will be reduced in like manner one-tenth part, would be cause sufficient to induce us to withhold our that is, three millions of dollars. And here a very imconfidence. That the business operations have been portant fact discloses itself, which explains why the curgreatly disturbed, no one denies; and no one will, I think,rency should be touched with such delicacy, and why JUNE 2, 1834.] Restoration of the Deposites. [SENATE. stability and uniformity are such essential qualities: I came distrustful of his neighbor. Those who had debts mean, that a small absolute reduction of the currency due to them, even if they did not want the money, called makes a great absolute reduction of the value of the en- for its payment, because they were unwilling longer to tire property of the community, as we see in the case trust the debtor. Those who had money which they had supposed, where a reduction of one hundred thousand no occasion to use, would neither loan it nor purchase dollars in the currency reduces the aggregate value of property with it-because they were afraid of loss, or of property three millions of dollars, a sum thirty times a fall in price. Those who owned property were afraid greater than the reduction of the currency. From this to sell on a credit, lest the note should prove not to be results an important consideration. If we suppose the good. Such is the natural influence of an alarm or panic; entire currency to be in the hands of one portion of the and when a reflecting people shall examine this matter, community, and the property in the hands of the other they will perceive, that this Senate has much to answer portion, the former, by having the currency in their pos- for in "sounding the alarm," at the very moment when session, might control the value of all the property of the the bank was pressing very heavily upon the business community, and possess themselves of it at their pleasure. community by calling in its loans, and thus causing a Take the case already selected; and suppose that those double evil influence to operate upon it. A political inwho hold the currency diminish it one-half by abstracting fluence may possibly be produced for a time by such a it from circulation; the effect of which would be to re- combination; but can it be supposed, that such a people as duce the circulation to five hundred thousand dollars; the ours will not rise to throw off from it a power which can value of property would also be reduced one-half; that is, thus break up all its safeguards upon property-paralyze fifteen millions of dollars. Let the process be reversed, all its industry-and bring in ruin and distress at its pleas and the money abstracted gradually restored to circula-ure? The people have yet the power to stay the hand tion, and the value of the property would again be in- of oppression, whether in the shape of a bank only, or creased to thirty millions. It must be obvious, that by as combined with an alarm for "the constitution and the alternating these processes and purchasing at the point of laws," because an attempt is made to diminish its means the greatest depression, when the circulation is the least, of evil by taking the public money from it; and if they and selling at the point of the greatest elevation, when will not rouse themselves to the effort to throw off the it is the fullest, the supposed moneyed class, who could burden, they must be content to bear it. at pleasure increase or diminish the circulation, by abstracting or restoring it, might also at pleasure control the entire property of the country." The Senator from South Carolina [Mr. CALHOUN] Seems to regard the bank with favor, only because it acts as a regulator of the operations of the State banks; and the The same remarks which he makes in relation to the same merit is claimed for it by others--and if it does this, currency, are almost as applicable to the loans as to the it might be entitled to the merit of one good act; for the notes circulated as a currency; because it is the increase mischiefs of a fluctuation in the loans and currency I have of the moneyed power, or its domination, which thus op- freely admitted-nay, I have asserted. But it remains to erates upon fixed property. When he supposes the en-be proved, that it does act to regulate the State banks. tire currency to be "in the hands of one portion of the If it regulates them, we should expect them to increase community," and shows that it might "control the value their loans in proportion as the United States Bank did, of all the property," we have but to substitute the Uni-and to diminish as it diminished. It can act upon the ted States Bank for that "one portion;" and if it has the State banks only by letting loose the reins, and by drawpower to destroy the State banks," and "to control ing them close again; and if its influence is ever seen in the currency," as it claims to have, then can it "control this manner, it will be seen to have acted powerfully du the value of all the property.' And it is too nearly true, ring the last three years; for, during that time, its chanto leave any one to doubt its dangerous character. The ges have been great and sudden. 66 Aggregate statement of the Banks in the State of Maine. State banks are not to be feared, because they cannot For the purpose of ascertaining what its influence has combine and act as one, any more than all the tradesmen been upon the State banks, and whether they are justly of any one trade can act as one, and thus control the pri-chargeable with having, in any degree, contributed to ces of all the articles of that trade. disturb the business of the country, by sudden changes It is thus that the bank is shown to have the power not in their business, I have, with the kind assistance of sevonly to derange the business transactions of the communi- eral gentlemen, obtained a statement of the capitals, ty, but to have used her power for that purpose. The loans, and circulations, of the State banks in five New extension of its loans was to place it in a condition to have England States, and also in the cities of New York and an increased power, which it could use by withdrawing Philadelphia, for the last three years. This result I now it, to disturb the operations of business, and induce the exhibit, as follows: people to cry out for relief by a re-charter of the bank. The influence of the bank in this manner has a direct tendency to make every man's property insecure. By doubling the loan, the bank raises the value of property, and by causing a scarcity of money, by sudden and great curtailment, it lessens the value-prevents there being a demand for it, and causes a sacrifice of it-perhaps to pay the very debt which it encouraged the man to make to obtain it. No greater mischief can well befall a country, than to render property insecure and unsafe-and this the bank can bring about at pleasure-and so far as causing a fluctuation of forty-two millions of dollars in three years could produce such a result, it has been shown that it has done it. Another cause has, no doubt, contributed to aid in occasioning the distresses of the country. As stated on a former occasion, the voice of alarm went out from this hall, and again and again was it returned and sent forth, and repeated in the newspapers, until confidence between man and man was destroyed, and every man be June, 46 Years. 1831 1832 1833 Capitals. 2,4 Loans. 2,480,884 15 2,789,352 06 3,732,583 68 Circulations. 760,530 00 885,408 00 1,158,350 00 Aggregate statement of the Banks in New Hampshire. SENATE.] January, 1832 1833 1834 18,755,000 22,730,000 Restoration of the Deposites. 34,117,000 00 38,080,000 00 46,496,000 00 [JUNE 2, 1834. Aggregate statement of the Banks in the City of N. York. duce such a result is, that it gains, in addition to the dis12,005,000 00 count or interest, the difference of exchange; and the 12,215,000 00 same gentleman states, that "the amount of premiums 15,402,000 00 on domestic exchange received by the bank for the same Aggregate statement of the Banks in the City and Coun- period, (one year,) was $217,249,560. Its interest, then, ty of Philadelphia. In the loans are included stocks is promoted by this increase of domestic exchange; and held by the Banks. it has the power to increase it; and it can do all this se4,403,299 29 cretly, for none of these operations are seen even by the 5,284,515 73 merchant, except the fact, that the bank cannot accommodate except on exchange bills. November, 1831 1832 1833 9,433,800 10,849,615 12,587,850 It will be seen, from these statements, that there has Let any merchant, or reflecting man, now contemplate been a small but gradual increase of the banking capital, and of the loans and circulations, in all these States and the fact, that 241,000,000 of domestic exchanges were cities. As the increase of population and of business has made in 1832 by that bank, as stated; and then ask himself called for more banking capital, the States have increased if the balances of the trade between the different sections it, and the loans and notes circulated have nearly the of our country would, in one year, amount to that sum? It is not the whole trade, but only the balances of the same proportion as existed before the capitals were increased. There has been, in no State or city, any great trade, that ordinarily pass in bills of exchange from one and sudden extension of the loans upon the same capital, section of the country to another; and these do not all, as there has in the United States Bank. There has been or nearly all, pass through that bank; and the amount no great or sudden decrease in the loans or circulations. stated may not so readily be accounted for, as in conThese institutions, all of them, have been conducted with cluding that the bank has pursued its own interest in taxa degree of moderation and regularity greatly creditable ing the business of the country in the mode supposed, or to them, and contrasting very favorably for them with in some better mode, perhaps, ascertained from its own the United States Bank. They certainly are not charge- experience. If this be its interest and its course, then it able with having contributed to produce the rise and fall can have no wish to keep the exchanges very low or of property suddenly--nor have they deranged the mon- very regular; and it may have as few merits in regulating eyed operations of the country. Judging from facts, exchange, as it has in regulating the State banks. then, and not from theory, the United States Bank, instead of acting as a regulator of the State banks, has acted as the disturber of the moneyed and business operations of the community. The fact that it did put the whole domestic exchanges into the hands of a committee, and kept its proceedings secret from even its own board of directors; and that it has lately refused to permit the committee of the House Expansion and contraction is chargeable upon it, not of Representatives to see the correspondence or examine upon the State institutions. If any one is not satisfied into the proceedings of the exchange committee, authorthat it has so acted--can any one doubt that it has power izes the most unfavorable inferences to be drawn, And so to act-and that of course it is capable of bringing the it is not difficult to understand, that much of the disorder dealings of our people, and their best interests, within its control, or making its influence felt in destroying the prosperity of those who refuse obedience to its will? in the exchanges of the country, which has been complained of as one of the causes of the distress, may be found first in the multiplication of bills of exchange, and then in breaking up all this class of paper, by refusing to receive them at all, or only at extravagant rates. Another merit claimed for it, is that of equalizing the exchanges. And a distinguished member of the House There must be an examination of the bank before the [Mr. BINNEY] makes a "statement of the uses which the Bank of the United States has annually afforded, in people will be satisfied, or ought to be satisfied, that, various ways, to the people of the United States;" and instead of merit, there have not been deep and lasting among these uses is that "of making a total of domestic injuries inflicted upon them in the exchanges of the exchanges" (for the year 1832, as I understand him) country. Upon another topic I wish to say a few words. It is $241,717,910. I pass for a moment from the extraordinary amount-to say, that if it has such a control over the in relation to the settling up of the concerns of the bank. domestic exchanges as to be enabled to regulate them, It has been stated by the Senator from Massachusetts, then it has such a control as to be enabled to derange [Mr. WEBSTER,] that he is of opinion that the bank ought them. The whole course of domestic exchange then, it to call in its capital much faster than it does, if the charter holds within its power, to increase or diminish, regulate is not to be renewed. And several of those, and some in or disturb, at pleasure, and that without limitation or re- high places, with whom I act, have regarded it as proper striction of this power imposed by law. Is there nothing that the bank should prepare to wind up its concerns; in this scene to induce reflecting merchants and men of and seem to suppose and to admit, that some distress must business to pause before they prolong and perpetuate the be occasioned by it. From this opinion I entirely dissent; existence of such a power unrestrained by any law? if by a preparation to wind up its affairs, is meant any But the bank can make money plenty in the West, and scarce in the East-or the reverse-by loaning freely for a few months, or perhaps weeks, in one section of the country and by curtailing in another section. Suppose it to desire to obtain bills of exchange from the West upon The bank charter expires on the 3d day of March, the East-it has only to withhold all discounts at the West, except for bills on the East, and while it is doing 1836, but it exists for two years longer, or till the 3d of this freely, discount any paper at the East, and thus in March, 1838, for the liquidation of the affairs and acduce acceptances merely on the credit of the drawer. counts of the corporation, and for the sale and disposition When these bills become payable, it has only to require of their estate, real, personal, and mixed." If it proceeds the payment, and discount only bills drawn in the East to collect in its debts, it must loan again, or permit the on the West or South-and thus changing the places of amount thus collected to remain unemployed in its vaults. plenty and scarcity, it can multiply domestic bills to al-It cannot divide its capital amongst its stockholders, until most any amount, even when the demand for them from its charter for business expires. It would be doing inregular business operations justice to the stockholders to collect the capital and per small. thing more than that of bringing its long loans into paper of the usual business term, and disposing of its real estate not needed, and bringing its whole property into common business paper. So much, in my judgment, should it do; nothing more. Is it not interested to produce such a result? And mit it to remain unemployed in its vaults till 1836, bewhat is its effects upon the people? Its interest to pro-cause they would lose the interest on the whole sum thus JUNE 2, 1834.] Restoration of the Deposites. [SENATE. unemployed. And it would be extremely oppressive decision that the charter is, or is not violated, and it is and ruinous to the community to collect in the capital therefore of comparatively little importance, and ought and lock it up from the stockholders and withdraw it not to change any man's opinion as respects the mischiefs from the active capital of the country. To do this is, for charged upon it. the time that it is locked up, the same in effect upon the To restore the public money to the bank, as the resobusiness of the country as to destroy so many millions of lution proposes, unless the bank is to be re-chartered, its active capital. And when I hear it said that it will would be without any object of practical good; and it do this, I regard it as evidence, if it does do it, that its must therefore be regarded as a declaration, that it ought deliberate purpose is to distress the community and de- to be re-chartered, and that it is expedient to do this; press and injure its business, for the purpose of compelling while the bank maintains a perfect secrecy over all its imthe people to consent to yield to its power and give it a new portant proceedings; while it shuns the light, and keeps charter. But why will not the same effect be necessarily itself dark, and thus exhibits the usual evidences of guilt. produced if it delays the collection of its debts and the To legislate thus is, in my judgment, to declare that an calling in of its capital till after 1836? It must then, it institution which has power to destroy the State banks; may be said, during two years, call in its capital, and it to derange the business concerns of the country; to bring will be only putting off the evil day. But a moment's ruin and distress upon the people; to cause all their propreflection is required to show that no injury, no distress erty and earnings to be held in uncertainty and insecuri need be produced in collecting all its capital in two years ty, if held at all, should be continued, without any reafter 1836. And the reason is, that after 1836 it may straint being imposed upon it by law to prevent these evils. distribute and pay out its capital to the stockholders as And it is to do this, after we have seen the danger, and fast as it is collected. There will be then no occasion experienced in our deep distress its mischievous power. for locking up any portion of its capital-certainly only To the people must be submitted the question, whether for a few days-only long enough after a portion is re- the bank shall shield itself in darkness, and put at deficeived, to give notice and to distribute it. It is perfectly ance the legislative power of the people, and yet, by its well understood, that any amount of money may change oppressions, cause them to yield to its purposes, and thus hands in a country, and occasion no distress, no derange-enable it to rule the nation. To their decision, and theirs ment of business; while a comparatively small amount only, am I willing to submit this contest. withdrawn from employment, will have that effect. The reasons are so plain to every reflecting mind, that it is not necessary to enter upon their discussion. To collect the capital of the bank after 1836, and pay it over to the stockholders, is only to cause so many millions to change hands. The person or corporation which employs it is changed; but the money in the hands of the stockholders is employed or loaned, and does the same office which it did when the bank employed or loaned it. All this is most familiarly known to those who manage the bank; and if they do at any time cause the capital or any part of it to be locked up and remain withdrawn from the stockholders and from business, it can be only from a wanton purpose of mischief. Let the people then keep in mind, that the coming distress which is threatened from this process, if it does come, is brought upon them designedly and unnecessarily, to compel them to obedience to the bank. When complaint is made that the bank violates its trust, and refuses to disclose any of its proceedings, and refuses to be examined, it is asked, why a scire facias is not issued? Why do you not bring the bank into the court, and try out the question before a jury, whether it has violated its charter? Mr. CLAY asked for the yeas and nays, which were ordered. Mr. TIPTON, with permission, moved that the vote rejecting the bill for the relief of Mountjoy Baily, be reconsidered; and then laid the motion on the table. Mr. FORSYTH (at half past five o'clock) moved that the Senate adjourn; but the motion was negatived, ayes 18, noes 23. Some further remarks were made by Mr. BENTON and Mr. CLAYTON, when the question was taken on the amendment of Mr. BENTON, and decided as follows: YEAS.-Messrs. Benton, Brown, Forsyth, Grundy, Hill, Kane, King of Alabama, Linn, Morris, Robinson, Shepley, White, Wilkins, Wright.-14. NAYS.-Messrs. Bell, Bibb, Black, Calhoun, Chambers, Clay, Clayton, Ewing, Frelinghuysen, Hendricks, Kent, Knight, Leigh, Mangum, Moore, Naudain, Poindexter, Porter, Prentiss, Preston, Robbins, Silsbee, Smith, Southard, Sprague, Swift, Tipton, Tomlinson, Tyler, Waggaman, Webster.-31. So the amendment was negatived. Mr. BENTON moved to commit the resolutions to the Committee on Finance, with instructions to report an amendment, regulating the deposites of public money in the State banks. On this amendment he asked the yeas and nays, which were ordered. The question was then taken on the motion to amend, and decided in the negative, as follows: YEAS.-Messrs. Benton, Brown, Forsyth, Grundy, Hill, Kane, King of Alabama, Linn, Morris, Shepley, White, Wilkins, Wright.-13. The answer is quite plain and easy. The reason is, that such a course will be productive of no practical good. A violation of the charter may take place without any fault, but that of negligence on the part of the bank. So the greatest mischiefs and abuses may exist, and yet there may be no technical and legal violation of the charter. If the charter were to be declared forfeited, it could not possibly be so determined, but a few months before it expires by law. And whether it has, or has NAYS.-Messrs. Bell, Bibb, Black, Calhoun, Chamnot, violated the charter, does not afford us any light to bers, Clay, Clayton, Ewing, Frelinghuysen, Hendricks, legislate wisely for the benefit of the country. The Kent, Knight, Leigh, McKean, Mangum, Naudain, Poinquestion for us to consider, as legislators, is not whether dexter, Porter, Prentiss, Preston, Robbins, Silsbee, there has been a technical violation of charter, but whether Smith, Southard, Sprague, Swift, Tipton, Tomlinson, the bank has been an instrument of good or of evil to the Tyler, Waggaman, Webster.-32. country. We wish to be informed whether it has ex- Mr. FORSYTH then moved to divide the question on pended its money to corrupt the press; whether it has the resolutions, the two propositions being different in designedly deranged the business concerns, and brought their character, so that a distinct vote might be taken on distress and ruin upon us; whether it acts as a regulator or disturber of the exchanges, and of the loans, and circulations of the country; and whether it is now engaged in the same course in secret, and may be expected to continue it. None of these matters will be ascertained by a VOL. X.-117 each. This, Mr. CLAY assented to. Mr. FORSYTH said, that as honorable gentlemen had expressed a great willingness that a scire facias, or other proceeding, should be instituted, with a view to inquire |