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H. OF R.]

Removal of the Deposites.

[JAN. 14, 1834.

Were I to vindicate the conduct of the President of the lated to strengthen the defences of civil liberty, we may United States, I would defend him as he would defend surrender the question; for a people entertaining such himself, were he now arraigned at your bar. I would opinions will soon erect for themselves a Government of protect him with no Treasury shield. I would evade no a very different character upon the ruins of the requestion-shun no responsibility. I would tell you he public.

had discharged a great public duty-a duty assigned him Nor, sir, do I object to the interference of the officers by the constitution--an authority paramount to all your and dependants of the institution in our elections. I hold laws; particularly one which never rested on any consti- those who chartered the bank accountable for that. The tutional foundation; and more especially an act which, gentleman from South Carolina [Mr. McDUFFIE] must whether constitutional or not, has been violated by the seek in some other world for a people destitute of the party for whose benefit it was intended. I would ask passions of our race, before he will find a country where you, who there is now living who has done more to re- the officers and dependants of banks or Governments will establish the authority of the constitution? When the not interfere with elections wherever the right of suffrage President came into office, he found this hall thronged is enjoyed. It is unsafe to rest our public policy, or our with able and eloquent men, advocating the very doc-political hopes, on any such artificial foundation. I am trines which are now repudiated. When a gentleman glad, sir, that the institution has engaged in our elections, from Virginia-that State which never has abandoned and I congratulate my country that the President presentthe constitution-rose to make a constitutional argument, ed this question at an early day for its decision. It has it excited a smile of ridicule or derision. But now, how been fully and fairly considered and settled, for the first changed the scene! We are all constitutionalists-we time since the adoption of the constitution. The old are roused at the slightest infraction, real or imaginary, bank was not founded on popular will, and the present of the laws or the constitution. The tendency to con- institution was the last of those extraordinary measures solidation is not only arrested, but we seem to be rushing which were projected in 1814, '15, and '16. The ques to the opposite extreme. And to whom are we indebted tion has been at last fairly submitted to the people, and for this change? To whom but that man who dared to the result is the largest majority against the Bank of the assume the responsibility"—who ventured to appeal United States that has ever been known since the adopfrom the decision of Congress to the judgment of his tion of the constitution. We have every reason, sir, to country--to him who has been the instrument in the hands congratulate our country on the result of our late conof the people of effecting a great civil revolution? Yes, tests: it proves our devotion to the Union and the constisir; he found at the commencement of his administration tution; it proves that public opinion is as sound now, at every department of the Government contaminated with the close of near half a century, as it was at the adoption unconstitutional doctrines; he found a fabric of Govern- of the constitution. It renews the patriot's confidence in ment erected here, of which the basis was the Bank of the stability of our republican Government. the United States; the superstructure, the tariff, and a Neither should I justify the removal of the deposites national system of internal improvements. We have seen from any apprehension of the insolvency of the institution. the parts of this edifice give way, till nothing remains but On this point, the gentleman from South Carolina, [Mr. the foundation-the gentleman from South Carolina's MCDUFFIE,] no doubt, unintentionally, has done me some "rock of adamant." Nothing remains, sir, but the Bank injustice. I never supposed, however its affairs may have of the United States. On that question the President been managed, and whatever dividend its stockholders has discharged his duty--the people have ratified his de- may ultimately receive, that the whole capital of thirtycision-it now only remains for their representatives to five millions had been wasted. There was but one memput this question forever at rest. That opportunity is ber of the committee to which we belonged who desired now presented. For the motion now pending is more to express an opinion on the insolvency of the institution, important in its consequences than the mere restoration and who would have done so, had his associates consentof the deposites; it involves not merely the temporary ed to it. And, sir, if the gentleman from South Carolina interests of trade and revenue, but the existence of the means to prosecute any one for this libel or slander, I constitution and the permanent welfare of the country; must leave him to settle the question of damages with his it is, in effect, a motion to recharter the Bank of the friend the gentleman from Georgia, [Mr. CLAYTON.] United States. Yes, sir, after having debated and de- But, sir, I did entertain and express the opinion that the cided that question every where two years ago, it is again Bank of the United States would be unable to pay the revived, and the country must be a second time agitated three per cents at the time when the Government would in a hopeless struggle to obtain a renewal of its charter. require their payment. Was that prophecy fulfilled' I had hoped, for the sake of the public tranquillity, that Were the three per cents paid on the 1st of July, or the the institution would have submitted to its fate; but when 1st of October, 1832, or even on the 1st of January, I observe its course for the last three years, and its meas- 1833? What was the condition of the Bank of the United ures for some months past-when I see the recent move. States in February, 1832? I will not give the gentleman ments abroad, with the hope-the vain hope, sir-of ope- from South Carolina my opinions; I will give him the rating upon the fears and the political integrity of this opinions of one entitled to the highest respect-of a gen House-when I notice a manifest design to alarm the pub-tleman now no more-to whose memory I should do injus lic mind, to prostrate commercial credit, to distress trade, tice were I not to say that, for skill, ability, and experi and to paralyze the industry of the country--I am almost ence in banking, he had no superior in this country; of compelled, sir, to respond the opinion expressed by the one who had directed the affairs of one of our largest gentleman from Pennsylvania, [Mr. BINNEY,] that "the banking institutions, and who was, moreover, a decided time has come when gentlemen are disposed to do more friend of the Bank of the United States, and as decided for one cause than for the cause of their country.' an opponent of this administration. What account does

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Mr. Speaker, to return to this question of the removal he give of the condition of the bank, in his letter of the of the deposites: I care not for these expenditures for the 16th February, 1832?

printing and distribution of essays, speeches, and reviews. "I have seen the statement of the affairs of the bank It is the natural resort of every such institution. Besides, for 1831 reported to Congress, and I confess I am alarmsir, whenever the people of this country can be convinced ed at the picture. Their loans have been increased in that a national bank is for their individual benefit; when- the year from forty-five to sixty-six millions, while their ever they are persuaded that it is compatible with the specie has decreased from twelve to seven millions. The permanent existence of republican institutions, or calcu-bank has now outstanding that vast amount of loans—

JAN. 14, 1834.]

over them."

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(which it will find it difficult to reduce or call in,) its positive arrangement with the Government to pay a part specie low-no funds in Europe to draw for; on the con- on the 1st of October, and the remainder on the 1st of trary, in debt a million and a half-exchange at eleven January; the bank assuming the quarter's interest on a per cent. premium-specie shipping by every packet-portion of them. After this arrangement had been made, by that of to-day $140,000--more than twenty millions of without the knowledge of the Treasury, of the Governtheir notes in circulation, which the pressure of the times ment directors, or even of the board, an agent was dewill bring back upon them rapidly—and their private de-spatched to England to negotiate with the holders of the posites liable to be withdrawn. They have acted like three per cents, to the extent of five millions, to postpone madmen, and deserve to have conservators appointed the payment for twelve months, and conditionally for a further term. Was no stipulation violated? Why, sir, They have acted like madmen, and deserve to have let me put a case to the gentleman from South Carolina. conservators appointed over them! This, too, the opinion Suppose he had contracted with his factor at Augusta to of an experienced banker-a friend of the bank and an receive his moneys and pay his debts; suppose that, in opponent to this administration. This was the origin of March, 1832, he had announced to his factor that he our present distress, as I shall presently show. Do we owed a debt of ten thousand dollars, which he wished him not see, sir, how impolitic it is in the Government to give to pay, a part on the 1st of July, and the remainder on to any such institution this immense power over the prop- the 1st of October. The factor visits Edgefield, states to erty and welfare of the country? Have we not, in this him that he had loaned the money to his customers, and brief statement of its transactions for a single year-if I that he should be obliged to distress them if he withdrew may borrow the language of the gentleman from Pennsyl- it at so early a period. He, however, makes an arrange vania-"a fearful admonition that we hold all our treas- ment to pay the amount in October and January. After ures in earthen vessels"--"that misjudging man, either this, and without the knowledge of the gentleman from in error or in anger, may, in a moment, dash them to the South Carolina, suppose the factor should go to the holdearth, and break into a thousand fragments the finest cre- er of the note, and arrange with him to postpone the ations of industry and intelligence?" I was happy to hear payment for twelve months at three per cent. interest, the gentleman from Pennsylvania say that he was not a while he would continue to loan the money of his employmember of the board in 1831. No, sir; had he been er to his customers at six. Now, suppose the gentleman then a director of the institution, I am sure he never from South Carolina should accidentally discover this arwould have consented that, after fifteen years existence, rangement; would he feel himself bound by his contract it should suddenly augment its commercial loans nearly to continue that agency? Would not the contract be anfifty per cent. No, sir; after the President had announced nulled? Suppose he had withdrawn his moneys from his his hostility to the bank, when it was probable, nay, hands; would he restore the deposites? No, sir, neveralmost certain, that it would not be rechartered, he never never would the gentleman from South Carolina confide could have consented to an expansion of its commercial in that agent again. Sir, I wish to do impartial justice in loans of more than twenty millions, merely to increase this matter between the bank and the Government. The the embarrassments of trade in curtailing that additional conduct of the former cannot be justified; and, as it reamount upon winding up its affairs. I have too much gards the latter, it is vain to talk of plighted faith and confidence in his judgment and humanity to believe that violated honor, for all its obligations were cancelled-forhe would thus rashly sport with and put in jeopardy the ever cancelled-from the date of that transaction. property and welfare of the country. There is, however, another view to be taken of the reBut this is not all. The sudden expansion of the com-lations existing between the bank and the Government. mercial loans of the Bank of the United States was made We have lessened the dignity of our Government by enwith the knowledge, as we are informed in the report of gaging in and sharing in the profits of one of the trades of the bank committee, that "there were more than twen- the community. We have become discounters of notes, ty-five millions and a half of the principal and interest of bill brokers, and dealers in coin and bullion. We have the public debt, payable in the year 1832-from 31st De- entered into partnership with an association of capitalists, cember, 1831, to 1st January, 1833-of which more than and have employed seven millions of the public money in fifteen millions were to be paid in fifteen months, and be- a great banking concern. Those whom we have appointtween eight and nine of it to foreigners." Is it surprised to represent our seven millions inform us that a loan ing that the bank should have been embarrassed and to the extent of four or five millions has been negotiated driven to every expedient in 1832? Yet, sir, the gentle- by our partners, without their knowledge or consent; man from South Carolina tells us "that the bank saved that they refuse to exhibit vouchers for the expenditures the country by its able management." The bank saved of the concern; that they deny to them all participation the country! Why, if it had not negotiated a loan of in the management of the co-partnership; and that they some thirteen millions with Government, and of four or have no control whatever over any of its affairs. Now, five millions with foreign bankers, it would have been sir, what would be the course of a capitalist under such driven to the necessity of ruining its debtors, protesting circumstances? Would he not immediately withdraw his our Treasury warrants, or of suspending its payments. representatives, and announce to the world a dissolution Yes, sir, the gentleman from South Carolina would have of co-partnership? Would not all his obligations to his discovered that his rock of adamant rested on a quick partners be cancelled forever? Surely, sir, the bank and the Government are not bound by less rigid notions of honor, law, or equity, than would govern the commercial community. We are, besides, bound to protect the directors, who represent us and guard the public interest in that institution. Had they been less faithful to the Government, they would have been treated with more respect by their associates, and never would have been attacked by the bank or its friends.

sand.

I do not wonder, Mr. Speaker, that both the gentleman from South Carolina and the gentleman from Pennsylvania wish to consider this affair of the three per cents as "an old story"-that they would cover it with the veil of oblivion. I wish, for the credit of the institution, that it had never occurred. What was the transaction? As early as March, 1832, before Government had made any arrangement for the redemption of these stocks, the board Mr. Speaker, the Government was bound by other and authorized the exchange committee to negotiate with the higher obligations to remove the deposites-by its obligapublic creditors. Soon after this, the Treasury announced tions to the country, growing out of the misconduct of the its intention to pay a portion of them in July. The bank. Happy would it have been for our commercial president of the bank visited Washington, and made a interest had the Government alone been wronged, and

H. OF R.]

Removal of the Deposites.

[JAN. 14, 1834.

had the calamitous effects of the bank's mismanagement the public mind has been agitated with this question of not fallen upon the trade and industry of the country. the removal of the deposites, justly judging that the bank We have heard much of the present distress, and of the had forfeited the confidence of Government, and knowremoval of the deposites. The gentleman from Pennsyl- ing that the term of its charter was approaching a close. vania [Mr. BINNEY] admits that the mere transfer of ten From that moment the bank and its friends commenced millions of money could produce no such results. Sir, a series of operations to disturb the public tranquillity. no man can believe it who understands any thing of bank-The most alarming consequences were predicted by its ing. The same measure produced no such effects in advocates, while the bank went silently to work to real1811; nor did a similar one to a greater extent in 1817, ize those predictions. It not only commenced a rapid when the public deposites were transferred from the local curtailment of its loans to trade, but, what was far more banks to the United States Bank. We have drawn an-disastrous to the country, it placed itself and its five-andnually, for years past, more money from the bank to pay twenty branches in an attitude of hostility to some four the principal and interest of the public debt. No, it is or five hundred local banks, and thus made war indirectnot the transfer of ten or twenty millions that can distress ly upon every merchant, trader, manufacturer, and artia nation, enjoying, like ours, a substantial prosperity. san in the country. The present prostrated condition of commercial credit Yes, sir, the conduct of the bank and its friends was in this country is owing exclusively, whether through such, through the whole of the last year, as to excite error or by design, to the mismanagement of the affairs of alarm; and every State bank, and every merchant and the Bank of the United States in the years 1831, 32, and trader, began to draw their concerns within their own '33-to the extraordinary and sudden expansion and resources. The mass of commercial credits was suddenly contraction of its commercial credits during those three reduced to an enormous extent, varying probably, from years, when it was almost certainly known that the bank the amount existing in 1831, many hundred millions; forwould not be rechartered. We are informed, sir, by the eign exchanges fell lower than they have been for fifteen report of the bank committee-for I shall adduce no au- years, and mercantile confidence was utterly destroyed. thority not emanating from the bank or its friends-we Had the bank confined its hostility to Government, and are informed that, between May, 1830, and May, 1832, not made war, through the local banks, upon the trade its loans "to individuals" were increased more than and industry of the country, and had its friends abroad twenty-seven millions two hundred thousand dollars, on regarded the interests of the country more than the interan aggregate of forty-three millions two hundred thou-ests of the bank, no distress could have occurred; for sand dollars, being an increase of more than sixty per cent., there never was a period when there was less substantial principally in 1831, and all subsequent to the date when cause for it. The Government would have been utterly there was not the least prospect of the bank's ever being regardless of the great interests of the country had it postrechartered. We are also informed in the same docu- poned removing the deposites for a single day. The disment, that, between May, 1832, and November, 1833, tress was equally great, and from the same causes, before the bank had reduced its commercial loans thirteen mil-as since the removal; though, as Congress was not then lions two hundred thousand dollars; and, by a subsequent in session, there was less pageantry in the movements of report of the bank of the 2d December, it appears that the bank and its friends; and the time had not arrived, as the aggregate reduction, from May, 1832, to December, it has done since, when it was expedient to make a gen1833, was about sixteen millions; and that the most of that eral and simultaneous effort to produce a panic in the reduction occurred since the question of the removal of commercial community, and to attempt to operate upon the deposites has been agitated. Thus we have an ag- the fears of this House and of the country. The same disgregate fluctuation in the commercial credits, controlled tress, and from the same causes, would have existed if by the Bank of the United States, of more than forty- the deposites had not been removed; the same movements three millions. But, sir, even this would have produced would have been made to intimidate the House into a vote little or no effect upon the great mass of commercial against their removal. The present state of the country credit always existing in this prosperous country. While, is not the work of a day or a month, and has not been however, the Bank of the United States has been, wheth-produced by any measure adopted by Government. It er by design or not, engaged in thus rashly sporting with has been owing altogether to the policy pursued by the the interests of trade, it has been mainly instrumental in bank for three years past. The conduct of the Bank of setting in motion near five hundred local banks, which the United States, in 1831, '32, and '33, though for a differhave been also employed in expanding and contracting ent purpose, has been precisely what it was in 1817, '18, their commercial loans; making, probably, an aggregate and '19; and nothing but the sound condition of trade, the fluctuation of these bank credits to trade, to the extent rise in cotton during the last year, and the state of our of two or three hundred millions of dollars. When we foreign exchanges, has saved the country from calamities consider how this must have affected the private concerns similar to those which then desolated the west, and parabetween merchants and traders, we may imagine, thoughlyzed the trade of the whole Union. Yes, sir, the presiit is impossible to measure, the extent of the fluctuation dent and directors of the Bank of the United States have in the whole mass of commercial credit in the Union. done what would have induced this House, in 1819, to Still, sir, rich as our country is in resources, and buoyant order a scire facias, had not the direction of the instituin prosperity, it could have withstood all this, had the tion been transferred to other hands; and had it not been Bank of the United States, in curtailing its loans, acted placed under the administration of those in whom Contowards our local institutions with that liberality which gress had confidence. Sir, the removal of the deposites would have promoted its own interest, and cherished the could not have been postponed, with safety to the great prosperity of trade and industry. It is not, sir, the re-interests of the country. The policy of the bank was duction of the loans of six-and-twenty banks scattered well understood, and the state of the foreign exchanges over this vast confederacy, at the rate of one, two, or prevented the possibility of a drain for specie from abroad. three millions monthly, that can distress a nation. No, Every day's delay would have added to the distress of the sir, the bank might do all this, and wind up its concerns country, and to the power of the institution to augment with ease, provided it would effect it with any regard it. Those who administer its affairs might, in an instant, whatever for the country, and would not, by persisting in put an end to the public distress, and at the same time a vain struggle for a new charter, sacrifice its own and all continue its curtailments, by announcing to the local inother interests. But what has been its conduct? Ever stitutions the policy they intend to pursue, and permitting since the three per cent. transaction in October, 1832, them fearlessly to afford their usual facilities to trade.

JAN. 14, 1834.]

Removal of the Deposites.

[H. OF R.

to disregard the ruin it may produce, by pursuing the policy of an exasperated and expiring institution-it will not only go down, but it will close its concerns amidst the universal execrations of the country.

But, Mr. Speaker, why is the public tranquillity to be again disturbed with the efforts of the bank? Was not this question settled near two years since? Gentlemen have surely not forgotten the language then held by its friends-nay, even by those who directed the institution. When petitioning for a new charter, we were told, two years ago, that

But, while the president and directors of the Bank of the United States remain with their arms folded; while they decline giving the State banks any intimation as the course they may pursue in exacting the balances which must necessarily fall due, to an institution winding up its concerns, from other institutions which continue in operation; while they continue to pursue the policy they have acted upon for some months past, it will be impossible for the local banks to relieve the country. Was this the policy adopted by the old Bank of the United States? I was gratified, sir, to hear the gentleman from Pennsylvania defending that ancient institution. Whatever may have "Unless the question is decided by the present Conbeen its political conduct, it never can be censured for the gress, no definitive action upon it can be expected until manner in which it wound up its concerns. No; the po- within two years of the expiration of the charter-a licy pursued by the president and directors of that insti- period before which, in the opinion of your memorialists, tution towards the local banks and the great interests of it is highly expedient, not merely in reference to the inthe country, affords a striking and an unfortunate con- stitution itself, but to the more important interests of trast to the course now adopted by those who manage the the nation, that the determination of Congress should be affairs of the existing bank. In what manner the old Bank of the United States wound up its concerns, we are informed by a writer of that day. I quote from a scientific work-from an authority with which the gentleman from Pennsylvania is undoubtedly familiar.

known."

After referring to the prospect of a new charter, the petition continues—

"If, on the other hand, the wisdom of Congress should determine that the bank must cease to exist, it is still more important that the country should begin early to prepare for the expected change, and that the institution should have as much time as possible to execute the dutyalways a very delicate and difficult one-of aiding the community to seek new channels of business, and, by gradual and gentle movements, to press with the least inconvenience on the great interests connected with it."

"Seeing the hostility which exists to renewing the charter, and the extent of that hostility, if the measure cannot now be carried, not only a prudent regard to its own interests, but the highest duty to the country, ought to lead the bank to prepare for the termination of its career. It has not before it one day too many to wind up, without distressing the public, such vast concerns."

"The public prosperity might have received a severe shock, and Government itself been exposed to difficulties and embarrassments much more serious than those under which it must now necessarily labor from the want of a national bank, if the same course of deliberate prudence which has marked the conduct of the late Bank of the United States throughout had not been also pursued in their mode of withdrawing from business. But they pro- Such was the language held by the president and di ceeded in their work so slowly, and acted towards indi- rectors of that institution at the commencement of 1832. vidual debtors, and towards other banks on which they They then wished the question promptly decided, that had claims, with so much liberal forbearance, that time they might have time to aid the community in seeking was gained to supply the public with the circulating me-new channels of trade, and, by gentle and gradual movedium of new bank credits in lieu of those to be withdrawn ments, to press with the least inconvenience on the great -a conduct which was, moreover, dictated by the inter- interests connected with it." How admirably have they ests of the expiring institution itself, and singularly favor- fulfilled these pledges to the country! ed by the general stagnation of commerce at the period Again, sir: what was the language of its friends-of when it took place." one of the ablest advocates the bank ever had-a distinWhat a contrast does this policy present to that pur-guished Senator, from whom I quote, because I think his sued by the present institution for three years past! "The views frank, just, and judicious? He said, on the 25th of same course of deliberate prudence."-" They proceed- May, 1832, before the bill was sent to the Presidented in their work so slowly, and acted towards individual debtors, and towards other banks on which they had claims, with so much liberal forbearance."-"A conduct which was, moreover, dictated by the interests of the expiring institution itself." What, sir, would have been the actual condition of the country, had the president and directors of the present institution adopted, in 1831, a similar course of deliberate prudence," instead of ex- "It is now two years and a half since the President inpanding its commercial loans, and placing itself in a worse vited the attention of Congress to this subject. That incondition for winding up its affairs in 1834, than it was vitation has been more than once repeated. Every where at the beginning of 1831, by eleven millions of dollars? the subject has been considered; every where it has What would have been the present condition of our trade and industry, had the Bank of the United States "acted towards individual debtors, and towards other banks on which it had claims, with such liberal forbearance?" Yes, sir, every where the subject had been considered; How different would have been our present condition, had every where it had been discussed. The public interest the affairs of the bank been administered with a proper then required our decision upon it, and the public voice view to the interests of its stockholders, and a just regard demanded that decision. And now, sir, after two years to the country! I trust that its president and directors have nearly elapsed, after the question has been decided, will be admonished by the prudent and just course of and after the public voice has ratified that decision, we their predecessors, and hereafter proceed in winding up are again called upon to review that decision, at the exthe affairs of the bank without disturbing the public tran-pense of the public tranquillity. The same gentleman quillity, and sacrificing all the great interests of the coun-held the following language, after the President returned try. I hope that such will be their future conduct, that, the bill, on the 11th of July, 1832: some twenty years after the institution shall have expired, "The bill is negatived; the President has assumed the some friend may be able to defend it with equal justice responsibility of putting an end to the bank; and the and ability. But if, on the other hand, the Bank of the country must prepare itself to meet that change in its United States should persist in this vain struggle for a new concerns which the expiration of the charter will procharter-if it should continue to set public opinion at duce." defiance-to agitate trade-to sacrifice all interests, and VOL. X.-150

been discussed. The public interest now requires our decision upon it, and the public voice demands that decision."

"In three years and nine months from the present

H. OF R.]

Removal of the Deposites.

[JAN. 14, 1834.

moment, the charter of the bank expires; within that pe-arise from transferring capital and business from six-andriod, therefore, it must wind up its concerns. It must twenty banks to other institutions, no one will deny; but, call in its debts, withdraw its bills from circulation, and in a time of profound peace, and in the absence of all cease from all its ordinary operations. All this is to be other causes of distress, no such consequences can folles, done in three years and nine months; because, although unless they are produced by the president and directors there is a provision in the charter rendering it lawful to of the expiring institution. Yet the gentleman from use the corporate name for two years after the expiration Pennsylvania tells us that our exchanges will be deranged of the charter, yet this is allowed only for the purpose of our currency dislocated-specie payments suspendsuits, and for the sale of the estate belonging to the bank, ed-local banks multiplied-trade embarrassed-and the and for no other purpose whatever; the whole active busi- finances of Government unregulated, if we dissolve that ness of the bank, its custody of public deposites, its trans-national institution which controls the great and complfers of public moneys, its dealings in exchange, all its cated interests of the country. We are, in short, to reloans and discounts, and all its issues of bills for circula- turn again to the scenes of 1814, '15, and '16. tion, must cease and determine on or before the 3d day of March, 1836; and within the same period its debts must be collected, as no new contract can be made with it, as a corporation, for the renewal of loans, or discount of notes or bills, after that time."

It is somewhat extraordinary that we should require, in this country, a national bank to equalize our internal exchanges. Will the intelligent gentleman from Pennsyl vania inform us in what other country such an institution is established for any such purpose? Does the Bank of Its custody of public deposites, its transfers of public England equalize the exchanges of Great Britain? Do the moneys-all its vast concerns-were to be closed on or be- Banks of France, Amsterdam, or Hamburgh, equalize fore the 3d day of March, 1836. Such were the views, those of the continent of Europe? No, sir. The domes the sound and judicious views, of one of the ablest ad-tic exchanges of Great Britain are almost exclusively in vocates of the bank. Well would it have been for the the hands of their local banks and bankers; and, on the country had the president and directors of the Bank of continent of Europe, the private bankers have always enthe United States redeemed their own pledge, by acting in joyed this branch of trade without the intervention of conformity to their own suggestions, and to these pru-national institutions. The local banks and bankers of this dent admonitions. Since that period, the popular voice country, at this very moment, do more towards equaliz has ratified the decision of the President, not only by ing our domestic exchanges than the Bank of the United electing him, but by returning to this House a larger ma- States. The gentleman from Pennsylvania must not imjority than was ever known against the re-chartering of agine that the fifteen or sixteen millions of domestic bilis the bank. The executive branch of the Government, possessed by the bank embraces the whole of the internal acting in strict accordance with the declared views of the exchanges of the country. It is not one-fourth of the ag directors of the institution, and of its friends, has taken a gregate circulation of that species of commercial credit. step necessarily connected with the dissolution of the There is no mystery, sir, in this trade of equalizing exbank, the convenience of the treasury, and the general changes-it is one of the most profitable branches of bankinterest of the country. The renewal of the question ing in every country, and in this more than in any other. again can only encourage unfounded hopes, and unneces- Here it consists in exchanging bank notes for bills of exsarily agitate the country. There cannot be the remot- change, at two, three, or four months, yielding a profit est probability of a renewal of the charter, with the first to the bank of from one to two per cent. If the Bank of and second officers of the Government and a decided the United States were to expire to-morrow, mutual armajority of this House opposed to such a measure. Un-rangements would soon be made between our local banks der these circumstances, sir, I appeal to the friends of the and bankers; and the effect would be to increase rather bank to unite with us in settling this question now and than diminish the aggregate amount of our internal exforever; that those who manage the institution may know changes. The business would be performed here as it is its fate, and proceed to wind up its affairs in the manner in every other country, and we should be saved the trouthey proposed in 1832, and as the concerns of the old ble of contriving some national institution for equalizing bank were closed. Let us take some definitive step to exchanges. But, sir, the power of any bank, whether restore public tranquillity; let it never be said that "the state or national, over exchanges, domestic or foreign, is time has come when we are disposed to do more for one overrated. Trade is the great agent of equalizing excause than for the cause of our country." changes; and after twenty years of peace, it would be Mr. Speaker, I shall now pass to another question, in- extraordinary, indeed, if any great inequalities continued finitely more comprehensive-the expediency of renew- to exist, particularly between the different portions of ing the charter of the Bank of the United States; for that the same country. But over our foreign exchanges, no is the result of all the arguments of both the gentlemen national bank, and no combination of banks, can ever from South Carolina and Pennsylvania. If, as we are told, have any permanent control. The temporary balance exthe removal of the deposites has deranged all the machine-isting between any two nations is the result, not of the ry of trade and currency, and visited distress upon the trade between them, but of the immense and complicated country, we must either ruin the country a second time, transactions of the world, which bid defiance to the powif we restore the deposites, or incur the responsibility of er of all our banking institutions, local or national. The violating our obligations to our constituents, and our Bank of the United States has been annually engaged in fidelity to the constitution, by renewing the charter of the purchasing foreign bills in the South, and selling them at Bank of the United States. Both the gentlemen have a premium in the North; any other bank could and wouki predicted the most disastrous consequences from the dis- do the same. No national institution is required in the solation of that institution. Sir, it is as easy, considering management of our exchanges, and no material derangethe tremendous power with which we have armed this ment can occur in our internal circulations of any descripcorporation, for the bank to realize these predictions, as tion, without the interference of the Bank of the United it is for the gentlemen to anticipate such results. But, States. unless there is something peculiar in the nature of the Nor, Mr. Speaker, is a national bank necessary to retrade of this country, and it has totally changed its char-store or to sustain specie payments in any country. For acter since 1811; unless we differ from every other nation that purpose, as I shall show, they are the most dangerupon earth, no such calamities can follow its dissolution, ous of all banking institutions. I am aware, sir, that enwithout the direct or indirect agency of the Bank of the lightened and distinguished men have entertained these United States. That some temporary inconvenience may opinions, and have believed that, without the aid of the

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