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JAN. 23, 1834.]

Extension of the Pension Laws.-Removal of the Deposites.

[H. OF R.

fifty millions proceeds of the sales of public land, has erless, indeed, would be that Government, and limited that been drained from the West, to be expended on the sea- constitution, which could not reward the soldiers by whose board, for the benefit of the constituents of the gentlemen exertions they have been established and supported. who urge the objection. Mr. L. concluded by expressing the hope that the amendment offered by the gentleman from Virginia [Mr. BOULDIN] would be rejected, and that the original resolution would be adopted.

It is also said that they were merely frontier settlers, and not distinguishable from other frontier settlers. Can this be true? All the frontier settlers, from Plymouth to the mountains, when attacked by the Indians, could retreat to the settlements. Not so with those west of the mountains; for twenty years, those men, without aid, or the possibility of retreat to the settlements, were engaged in incessant warfare.

The Indian enemy could shelter himself from pursuit, in the forest, or under the protection of their British ally; while the last stand of the white man was at his cabin door in defence of his family.

Mr. L. said that he was most surprised, not by the low estimate made by the gentleman of the services of these western soldiers, but by the eulogy which he had pronounced upon their Indian enemies.

THE DEPOSITE QUESTION.

At one o'clock, the House proceeded to the stated order of the day; when

Mr. HUNTINGTON, of Connecticut, addressed the Chair, in substance, as follows:

Mr. Speaker: Since the adoption of the constitution under which we are here assembled, there has seldom arisen a subject of more deep and thrilling interest to the people of this country than that which is now submitted to the consideration of their representatives in this hall. This is not a subject of local concern, of sectional interest, of the appropriation of a few thousand dollars more According to the gentleman's statement, the Boons, or less, or one regarding which the injurious effects of the Wickliffes, and the Spensers will be forgotten, while hasty legislation may be speedily corrected. It is one in the names and the deeds of the Indians will be remem- which every portion of the community is deeply interestbered. The gentleman asks, where is the history of these ed, for it takes hold of the value and security of propertwenty years of war? where the memorials of their battles ty of all kinds, of the price of labor and its reward. It is and sufferings? most intimately connected with the currency, the stand

I am happy in being able to tell the gentleman that ard and measure of the value of all property and all there is a history written by a distinguished citizen of labor. The humblest individual who has settled on your Kentucky, that faithfully records them all. [Marshall's public lands, the soldier who garrisons your forts and deHistory of Kentucky.] To it I refer the gentleman, and fends your frontiers, the sailor who carries your flag over am sure that he will agree that the sufferings of these pi- every ocean, the mechanic, the farmer, the manufacturer, oneers of the West, so far from being exaggerated, have the day laborer-all-all of them have a direct interest in never been fully appreciated. the proper disposition which we shall make of this great

Mr. L. said he wished the gentlemen who had endeav- subject. "The smallest of all politicians know that the ored to depreciate the advantages of these services would currency of a nation is as delicate as a lady's honor; and look to the present condition of the West for their answer. those are the least of all, who suppose that the hand of The motives, the conduct, and the consequences of violence can be applied to it without doing mischief." these services, are alike honorable to those who perform- And I am gratified that the subject is placed before us in ed them. Mr. L. said that he wished, for the honor of a form which admits the fullest examination and freest the nation, that those whom the gentleman so unjustly discussion. This is due to the importance of the subject, underrated had been near this city, with their sons and to the character of this House, to the plighted faith of the grandsons, some years since, to second the efforts of a Barney, in defence of this city: had they been, this capitol would not have been in flames, nor a British admiral in the Speaker's chair.

Mr. L. said he had omitted to notice an objection of the gentleman from South Carolina, [Mr. PINCKNEY,] that all pension laws were unconstitutional, and who asks that the clause may be shown which gives to the Government the power to make such laws.

nation; above all, it is due to the great interests of our citizens, which it is our duty to cherish, and protect, and promote, by all the means which the constitution of the country has placed within our reach, and which are now suffering, to an extent almost unpar alleled in the history of the Government, and which are threatened with speedy and almost entire extinction. Look, sir, at the two propositions submitted to us. One of them has for its object to place the public moneys, In return, Mr. L. said he would ask the gentleman the treasure of the people, collected from them, and to be where he would find the clause giving to Government the distributed as the legislation of Congress may direct, in power to grant to the crew the value of the ship they the Bank of the United States-a corporation created by capture; to pay the citizen for property taken by the the authority of Congress, in which the United States are enemy; to expend the money of the people for the rich a large stockholder; a bank of a safe and solid capital, of drapery and costly furniture in this hall-more for show great, and undoubted, and ample resources; which has than convenience; to expend millions, on and around this always redeemed all its obligations to the country, withcapitol, for the same purpose? For all this there is no out expense and without loss to the people of a single clause in the constitution, yet who ever doubted that the power was given?

Mr. L. said he was not among those who approved the modern doctrine of implication. But he was inclined to believe there was more danger to be apprehended to the republic and the constitution from a captious adherence to a literal construction, instead of its plain and obvious spirit, and the equitable intent of its framers.

dollar; and which, by the admission of its opponents, has kept the public moneys safely, and paid them whenever required by proper authority: a bank, also, which is subject to a salutary control from the Executive, Legislative, and Judicial Departments of the Government-a control, I had almost said, greater than that which any monarch in Europe can exercise over any moneyed institution within his dominions. What, sir, is that control' Examine the The limitation contended for is at variance with the charter of this bank, and you will find that the President, simplest and most necessary powers of the Government-whenever he shall have reason to believe that the charter powers which are the indispensable attributes of every has been violated, may order a scire facias to be sued out of Government. the circuit court, that if, upon proper examination, such

The power to carry on war, of necessity, gives the pow-violation is made to appear, its charter may be adjudged er to pay the soldier, by such allowances or pensions as to be forfeited and annulled. The same power is vested may be proportioned to his services and wants. Pow-in Congress; and thus the judicial tribunals of the country

H. OF R.]

Removal of the Deposites.

[JAN. 23, 1864

may exercise a proper control over the institution. This The subject rises infinitely above all party considerations. is not all: a committee of either House of Congress, ap- It should have no connexion with the politics of the times. pointed for that purpose, are authorized to inspect the It is one in which men of all parties have a common in books and examine into the proceedings of the corpora- terest. It affects, more or less, all classes and all individ tion, and report whether the provisions of the charter uals-the man of wealth and the man of moderate proper have been by the same violated or not. The officer at ty; him who is poor, and him who is rich; the man who the head of the Treasury Department is to be furnished, is in affluence, and him who, by his daily labor, earns a once a week if he require it, with a statement of the comfortable subsistence for himself and his family. A amount of the capital stock, the debts due, the moneys I hope that in the discussions to which the subject has deposited, the notes in circulation, the specie on hand, given rise, and in the results to which we may come, we with a right to inspect such general accounts in the books shall look away from every thing which is not connected of the bank as relate to such statement; and, finally, for with its merits, and decide as our consciences shall dictate proper reasons, to order and direct that the deposites of and our high responsibilities require. the money of the United States shall not be made in the The honorable member from Tennessee [Mr. POLK bank or the branches thereof. I need not comment on stated, and more than once repeated, that, in regard to the extent of the power thus reserved, to make this insti- this subject, the issue was formed between the Gover tution a safe place of custody for the public moneys; a ment and the bank. I differ with him as to both the par faithful fiscal agent in the disbursement of these moneys; ties which he has named. If he means by the term "Gov. and to subserve all the great and important purposes for ernment," that which is so called by the travelling agent of which it was created. Such is the bank where, until the Treasury-one branch of it only, the Executive, or lately, your treasure has been placed, and where the in- simply the Treasury Department-he has rightly name structions moved by the gentleman from South Carolina one of the parties; but if he uses the term as freemen propose that it shall hereafter be placed. What is the understand it, as including the Executive, Judicial and substitute provided for it? Where are your moneys now Legislative Departments, then the Government is no par deposited, and where is it proposed that they shall con- ty to what he calls the issue which has been closed. Cos tinue to be deposited? In the local banks, created by gress has declared the bank to be a necessary and useful State authority, in which the United States have no pecu- corporation. The Supreme Court has decided that it is niary interest, over whom they have no control, into a corporation rightfully created under the constitution. whose situation and affairs they can make no examination, The House of Representatives, by a large majority at the (except by contract with those institutions, and the per- last session, declared it to be a safe place of deposite for formance of which is dependant upon their sense of pro- the public moneys; and the Executive only has been priety,) who have no unity of design or action, whose in- found in opposition to it as unconstitutional and inexpedi terests are often in opposition, whose notes are limited in ent. The Government proper, therefore, has not made their circulation, "floating around the points where they itself a party to the removal of the deposites. The honare redeemable," and of whose solvency and ability to dis-orable member is equally in an error when he affirms that charge the trust committed to them the Government have the bank is a party. However great and unwearied the no peculiar means of knowing. efforts have been to destroy its credit and usefulness, both I submit to this House, whether any individual member at home and abroad; however unceremoniously the char of it, or any man of ordinary prudence having moneys to acters of the honorable and virtuous men who manage its deposite and to be disbursed, would, if he had the con- affairs have been traduced and slandered; however wan servative power possessed by the Government of the ton have been the attacks on the institution and its direct United States over the bank, select that, as the most suit-ors, the whole dwindles into insignificance compared with able, proper, and safe institution to subserve his individual the results which have followed to the country from the interests in the custody and transfer of his private wealth? hostility of those who should have been its protectors and or would prefer the State banks, over whom he had not friends. The issue is closed between the Treasury and even the shadow of control? Would there be any hesita- the people, and it has been tendered by the former; and tion or doubt in his mind to which corporation to give the Ly this House and the Senate is this issue to be tried, and preference? And shall we, who are the guardians of the judgment rendered; and in its determination, the bank, as public moneys, whose duty to keep them safely is as such, and in regard to its own rights, is comparatively a sacred as it is obvious, do with the treasure of our con- cipher-a matter of no moment. The question is, whether stituents what we would not do with our own under simi- the Treasury shall govern, or the people? The observa lar circumstances? Shall we be less prudent, and discreet, and watchful, in the selection of a depository, acting as public men, than when we are consulting our private in

tions which I propose to submit to the House will be com
prised in answers to the following questions:
What was the condition of the country previous to the
contemplated change in the place of deposite of the pub.
lic moneys?

What is that condition now?

What is it to be if the deposites are not restored? What causes have produced the present distressed con lition of the country, and the alarming forebodings of ca lamities still greater to befall it?

What is the remedy for these evils?
Shall Congress apply it?

terests? Shall we give the custody of the money of the people to institutions to whom we would not, in similar cases, intrust our own? These are questions of grave import, and are directly presented to us by the opposite instructions to the committee, which are proposed for our adoption; and I rejoice that they are put in a form and in language so plain, that the freemen of this country can understand them. They have intelligence, and can comprehend their nature and import, and will take care that their rights shall be acknowledged, and their interests There is not one of these questions which is not full of promoted, by those to whom they have been committed. meaning, and worthy our most serious consideration. This great subject, which now occupies almost the undivided attention of Congress, and which engrosses the legit What, then, was the condition of every portion of this thoughts of almost every citizen of the country, should be mate place of custody, and the power of the Treasury had examined and disposed of in that spirit which its import- not been applied to disturb and remove them? ance demands. In presenting the view of it which I en- It was one of unparalleled quietness, case, and pros tertain, I have neither private interests to promote, nor perity. Every channel of industry political objects to attain. In the stock of the Bank of ployment was given to the laborer, who earned his daily the United States I have never had the remotest interest. | bread by the sweat of his brow-to the mechanic, who

was filled. Full em

JAN. 23, 1834.]

Removal of the Deposites.

[H. OF R.

worked in his shop, and furnished the necessaries and credit, in its efforts to destroy it, and with it all commercomforts of life for himself and all in his employ-to the cial transactions; its disregard of individual prosperity, by manufacturer, who rewarded the industry of thousands meeting the removal of the public deposites in a spirit of connected with and dependant upon the successful pur-anger and menace-all of which, he said, was palpably suit of his business-to the merchant, who was engaged evident, but of which he furnished no evidence, and did in prosperous commercial enterprises-to the farmer and not profess that he possessed any; and which he cannot planter, who found a ready and profitable market for the tax our credulity to believe, as he does not know it by products of their labor. Payments were made for the intuition, nor by testimony to which he has referred usproductions of agricultural, mechanical, and manufactur- concluded his denunciations against the bank with the ing labor through the domestic exchanges of the country, declaration that, notwithstanding all the power of the at a trifling expense; and in like manner were payments bank, exerted for the purposes which he named, our cities made for imported merchandise scattered over every por- were now brought to a "tolerably healthy condition." tion of the Union. The Bank of the United States, sus-Let us examine, and see what that healthy condition taining its amicable and confidential relations with the is.

Treasury, acted the part of a balance wheel, regulating The price of bills on England has fallen from seven all the movements of the whole machinery of currency and a half per cent. premium (last of September) to one and exchange, keeping it in order, preventing the over-and a half per cent., which is lower than at any period issues of the State banks, and yet befriending them; dis- within fifteen or twenty years; the notes of merchants of tributing the public revenue in every direction to pay the undoubted solidity, with the most ample security of endebts of the Government; and, through its loans and ex-dorsers, payable at ninety days to six months, from one changes, giving and continuing health and soundness to and a half to two and two and a half per cent. interest per every part of the country, and creating and sustaining a month, and more offered than purchased; almost all kinds currency more perfect than any which ever existed in the of agricultural productions and manufactures unsaleable most finished periods of the commercial prosperity of for cash, and nearly so on credit; loans, on mortgage of Europe. Our country presented a scene which we might the most desirable city property, solicited at from twelve and did contemplate with delight, and which called forth to eighteen per cent. per annum, and refused; the aucour thanksgivings to the beneficent Author of all Good tioneers and commission merchants declining, except to for such distinguished mercies. There was not a dark a very limited extent, to accept drafts or make advances shade in the picture of our country's prosperity; all-against the consignments of mechanics, manufacturers, all-was bright, delightful in fruition, cheering in pros-and country merchants and dealers; the prices of every pect.

And yet it has been suggested as matter of congratulation that the magic wand had been applied to it, for it evinced that our prosperity had been the result of our own abject submission. The bank, (the modern Circe,) it was said, had transformed us into beasts of burden.

article on sale fallen-indeed, almost nominal; a great reduction in the price of all stocks of unquestionable solidity; private capital almost entirely withdrawn from employment, investment, or loan; it is hoarded up, not lent; orders for foreign goods countermanded; extensive failures almost daily occurring; the discount on country I do not envy the feelings of any one who could witness bank notes increased; the notes and bills offered for dissuch a state of high prosperity as I have described, and count greatly exceeding the ability of the banks to purrejoice that it had ceased, and been succeeded by one of chase; the state and rates of exchange between the comdeep depression; nor can I well conceive the nature or mercial cities and the interior suspending all business dedegree of that "abject submission" which avails itself of pendant on them. I am informed that the Bank of the all honorable and lawful means (even if they exist through United States buys drafts to some extent on the Atlantic the facilities furnished by the Bank of the United States) cities to the South, where it has branches. Beyond this, to sustain and increase the industry and wealth of the however, there are no sales, unless on terms extremely nation. And should it be true that this great moneyed injurious to the holders. The brokers, who are willing aristocracy has converted us into animals of the descrip- to give their notes, may purchase, to a limited extent, at tion which has been mentioned, it would be gratifying to a considerable discount; and these notes are endorsed by know whether our ears would be less long if we should the sellers, and sold at the current rate of interest, (two be in subjection to the State banks, and derive that meas- to two and a half per cent. per month.) This operation, ure of prosperity which it is supposed we should then enjoy under their kind and republican government. If the people of this country are to be the slaves of any banks, it would be the part of wisdom to select those over whom they can exercise some power, rather than those whose conduct they cannot in any manner control. What is now the condition of the country? Changed, greatly changed; almost wholly reversed. Every channel of industry is now partially choked. A paralysis has settled upon our principal commercial cities, This, however, is but the commencement of evils still and is rapidly extending itself in every direction. Busi- greater to follow, unless an immediate remedy be applied ness is suspended; no new contracts are made; the arm of by the action of Congress. And this leads to the inquiry labor has become nerveless; the currency is disordered, what is the prospect before us? What is to be the conand money not to be obtained; a universal panic exists; dition of the country, if there be not a reaction, if busi fear and alarm are apparent in the countenances of all; ness do not revive, confidence be not restored, the usual frequent bankruptcies occur; commercial credit is im-course of industry and enterprise be not pursued, the paired; and the whole country is in a state of agitation, currency be not restored to its former sound and healthexcitement, alarm, and fearful apprehension. Is not this ful state, and active employment be given to the labor of statement true? Does not every day's post bring us con- our citizens, with a reasonable prospect of a fair and cerfirmation of it? I am aware that the gentleman from New tain remuneration?

however, is so severe, that, if it be not already, it must soon be discontinued.

This, sir, is the "tolerably healthy condition" of our principal cities. I hope we shall not witness a great redundancy of such health. But this is a condition, to speak of which with levity is inexcusable; it is one which calls for the exercise of every feeling of sympathy, and the exertion of every lawful power to change it; it is one of imminent peril and danger.

York, [Mr. BEARDSLEY,] after asserting in very unmeas- That condition, it is to be feared, will be one of geneured terms the hostility of the Bank of the United States ral bankruptcy, and, perhaps, a suspension of specie paytowards the local corporations, in its attempts to embar-ments by most of the local banks; the present state of rass and prostrate them; its utter recklessness of private things, gloomy and fearful as it is, cannot long continue; VOL. X.-158

t

H. OF R.]

Removal of the Deposites.

[JAN. 23, 1834

I take leave to say what are not the causes for whic we are seeking.

the pressure will be more severely felt; the causes which And now, sir, I will proceed to the inquiry, what causes have produced it will not cease to operate, but will accu- have produced the present distressed condition of the mulate strength, and produce still more deleterious country, and the apprehended calamities, of still greatg effects; the cord is fast drawing to its ultimate power of magnitude, which impend over it? tension; in a few months it will part. And what will be This is a part of the subject under consideration whic the result? Will it not be one which will jeopard the cap- demands the closest investigation and the most attentire ital of the State banks, or compel them to refuse the re-examination of the House. If we do not ascertain the tree demption of their notes in coin? Can the local banks causes, it cannot be expected that we should apply the redeem their circulation and pay their deposites, without most salutary and appropriate remedy. calling upon their debtors to make frequent and large payments? They have not the power to coin money, nor can they raise it on their credit. And can these debtors They have not arisen, as has been suggested, from the pay without effecting loans elsewhere, or obtaining money substitution of cash duties on the importation of cera by the sale of their crops or their manufactures? And foreign merchandise. It is doubtless true that these have are these the resources which are at hand? The banks, been considerable, though I have not the means of asce instead of loaning, are curtailing their accommodations; taining their precise amount; and it is also true that, to the private capitalists will not lend; sales of the products of extent to which they have been paid, it has created the labor cannot be made. In what manner, then, is provi- necessity of the application of money to that amount; and sion to be made for the payment of bank loans? And if this is one of the reasons why the period selected for the none can be made, the local banks must resort to other change of the place of deposite of the public moneys ra means than collections from their debtors to provide for not the most suitable. But they are "as the small d the redemption of their own debts-and they will look of the balance" when compared with the moneys required in vain for any such means. It is also not to be forgotten for other purposes; and if the ordinary operations of that the whole system of banking operations in this coun- the Bank of the United States, in distributing the money try has its foundation in public confidence and credit. It of the Governinent, not immediately wanted, in loans and is well known that the banks cannot redeem all their exchanges, had been suffered to proceed, the cash duties issues in coin, if demanded at once; but the community would at once have been put into active employment, a feel a security in the integrity, and intelligence, and pru- therefore not withdrawn from circulation. dence of those who have the management of these in- Nor have these causes proceeded from the mere with stitutions, and a certainty that the notes will subserve all drawal of eight millions of the public treasure from the the purposes to which they wish to apply them, and thus Bank of the United States; for it is well known that much be equivalent to coin. While these feelings of security larger sums have been heretofore withdrawn from the and certainty continue-while all the banks are disposed bank, almost without the knowledge of the people, and to be liberal and friendly to each other-while the busi- certainly without producing any sensible effect upon the ness of the country is carried on with its accustomed in operations of the State banks, or creating much, if any, dustry and prosperity, and the revenues of the Govern- pressure upon the community. You recollect, sir, that ment are disbursed equally for the benefit of all, and the Mr. Rush, in his report of December, 1828, referring domestic exchanges continued with their usual frequency to the conduct of the bank in making the "hear! and rapidity, and without loss, and the currency is pre-payments" of the public debt in the preceding year, served pure-all will be well, as it was before the Treas. says: "So prudently, in this and other respects, does the ury order relating to the public deposites was issued. bank aid the operation of paying off the debt, that the But when the time arrives that money cannot be obtained community has hardly a consciousness that it is going on in any form to meet outstanding engagements; when such Mr. Ingham, too, in writing to the bank in July, 16 a state of alarm shall exist as that the vaults of the local expresses his satisfaction at the course adopted by the banks are to be opened to redeem their notes; when spec- bank, relating to the "heavy payment" of the publ ulators in bank notes shall commence the purchase of debt, "at a time of severe depression on all the produc them at a large discount, to demand their payment in ive employments of the country, without causing any se specie; when this period arrives, then will most of the sible addition to the pressure, or even visible effect upo State banks be compelled to close the doors of their the ordinary operations of the State banks." The Pret vaults, and the scenes of the years 1814 and 1815 again be ident of the United States also adds his testimony, of witnessed. And though I believe the Bank of the United similar character, in his annual message in 1829, in which States-that monster and tyrant, as it has been called, he states that the payment on account of the public debt which was to crouch at the feet of the Treasury an humble made on the 1st of July last was eight millions seven lo suppliant for favor-will ride out the storm without the dred and fifteen thousand four hundred and sixty-tw loss of a spar, or a sail, or a yard, it is greatly to be dollars and eighty-seven cents;" and, adverting to the a apprehended that the broken fragments of most of prehensions entertained that it might injure the interests the State banks, which will be seen every where float- dependant on bank accommodations, when there was a ing, will evince what desolation and ruin have befallen unusual pressure on the money market, adds, that "the evil was wholly averted by an early anticipation of its

them.

I would not be understood to express doubts as to the the Treasury, aided by the judicious arrangements of the solvency of the greater portion, if not all, of the State officers of the Bank of the United States." During th banks, nor of the prudence and fidelity with which they year 1832, including the last day of the year 1831 and the are managed. I believe them to be sound, and honorably 1st day of January, 1833, the payments through the bat and honestly conducted. I am viewing their condition of principal and interest of the public debt exceeded when subjected to the action of a strong pressure upon twenty-four millions of dollars, of which between eig the money market, and a general want of confidence and and nine millions were owned in Europe; and yet, in co a state of alarm and great excitement in the community: sequence of the "judicious arrangements" of the bank and none can fail to see that the "signs of the times" there was neither pressure nor distress felt by any portica clearly indicate the rapid approach of the period when of our citizens. that pressure will be too great to be any longer endured, and that want of confidence and that alarm and excite ment be such as that its effects cannot be resisted nor obviated.

caused by any systematic, or unusual, or unnecessary cur
Nor has the present condition of the country been
tailment of the loans of the Bank of the United States.
know that this has been the reason
assigned here and els

JAN. 23, 1834.]

Removal of the Deposites.

[H. of R.

where. I am aware that every effort has been made to it would seem that it should have credit for a returning produce a conviction that in this is to be found the true sense of duty when it did in fact reduce them. My object cause of all the embarrassments and distress which exist; now is to ascertain whether the Secretary is not in error and I am sensible that those in "high places" have also when he says that the bank, about the 1st of August, set this forth as the "root of all the evil." It is my in-changed its course," and "pursued an oppressive systention to exhibit the evidence which exists, (and which tem of policy” during that month and the month of SepI consider conclusive,) which clearly evinces that no de- tember, and in which it was feared it would persist, and signed action of the bank, no threats of intended retalia- which required his prompt interference, by the removal tion, no course either pursued or proposed to be pursued of the deposites.

by the bank, at the time of the removal of the deposites, Will it not surprise the House to learn that just this different from that which had been usual during succes-"oppressive system of policy" was pursued in the months sive years of its existence, nor since pursued unnecessa- of August and September, 1832, and yet there was no rily or oppressively, have had the remotest effect in pro- pressure upon the commercial community, no danger apducing the present state of unexampled distress. And prehended that it would not sustain itself, no wide-spread this evidence is found in printed documents on our tables, scene of bankruptcy and ruin followed? It is very obviand within the reach of every member of the House. And ous, from an examination of the course pursued by the I shall refer to this testimony, not because the bank is in-bank in the months of 1832, corresponding with those in terested in it, but that the truth may be known, and the 1833, mentioned by the Secretary, that there was nothing public mind be disabused, in relation to a matter on which unusual, nothing done by the bank different from what the partisan presses of the country particularly have been always existed at that season of the year, when, by the very clamorous; and that we may be the better enabled to regular course of business, its loans were always diminapply the appropriate remedy for existing evils, by ascer-ished. I will ask the attention of the House while I extaining the true cause of them, rather than assuming one amine the statements now on our tables sent from the which is false. This is a piece of base coin, which, though Treasury, of the operations of the bank during the months it may not have been known by the Secretary to be coun- of August and September, 1833 and 1832. terfeit, every consideration of public duty requires, since In August, 1833, its discounts were its detection, should be nailed to the counter.

In October, 1833, they were

The Secretary of the Treasury, in reporting his reasons for the order in relation to the public deposites, states Reduction in two months, that "under other circumstances, he should have been

disposed to direct the removal to take effect at a distant In August, 1832, its discounts were day, so as to give Congress an opportunity of prescribing, In October, 1832, they were

in the mean time, the places of deposite, and of regulat

ing the securities proper to be taken." What the exist- Reduction in two months, ing circumstances were, which made an immediate remo

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$64,160,349 14

60,094,202 93

$4,066,146 21

$68,008,988 81

63,693,310 50

$4,315,678 31

gust and September, 1832, $249,532 10 more than in the exhibit very striking evidence of a "change of course" corresponding months of the year 1833. This does not on the part of the bank, or a design to pursue a new and 'oppressive system of policy."

val in his opinion necessary, and which led him promptly So that there was collected from the community in Auto resort to the power given him, are substantially these, as stated in the report: About the 1st of August, 1833, the bank changed its course of policy in regard to the amount of its discounts. From December, 1832, to this time, they had been enlarged more than two and a half millions; and at the latter date, the situation of the mercantile claims," and other causes, "rendered the usual In August, 1833, the deposites of public moneys in the aids of the bank more than ever necessary to sustain them Bank of the United States amounted to in their business; but in the months of August and Sep-In October, 1833, to tember, 1833, its discounts were reduced more than four

66

millions of dollars, while the deposites of public moneys Increase in two months, had increased more than two millions, and its specie more

than six hundred thousand dollars; and the balances from In August, 1832, to

the State banks increased, from a little more than 360,000 In October, 1832, to dollars, to upwards of two millions. These drafts upon

the community had required a probable curtailment of the Increase in two months,

State bank accommodations, from two to three millions of

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$7,599,931 47 9,868,435 58

$2,268,504 11

$12,137,908 17

13,661,193 01

$1,523,284 84

10,663,441 51

dollars. The Secretary then adds, that "we shall be at no The amounts collected from the public in the two months loss to perceive the cause of the pressure which existed of 1833 exceeded those of the corresponding months of in the commercial cities about the end of the month of 1832 only the sum of $495,687 17. September. It was impossible that the commercial com- In August, 1833, the bank had in specie $10,023,677 38 munity could have sustained itself much longer under In October, 1833, such a policy. And if the public moneys received for revenue had continued to be deposited in the bank for two months longer, and it had adhered to the oppressive system which it pursued during the two preceding months, In August, 1832, a wide-spread scene of bankruptcy and ruin must have In October, 1832, followed."

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I shall not stop here to examine what would seem to be an obvious inconsistency between the complaint which the Secretary makes, that the bank did not, about the 1st Increase in 1832, more than in 1833, $92,794 28. of December, 1832, take steps to prepare for its approach-In August, 1833, the balances due from the State banks ing end, by reducing its discounts and arranging its affairs

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September, 1833. If it was wrong in the bank to have Increase in two months, enlarged its discounts when it should have curtailed them,

$368,969 98 2,288,573 19

$1,919,603 21

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