of the Bank of the United States, must be my apology for this intrusion..

The president of the branch at this place was changed last year, and the salary greatly increased; both which measures have given much dissatisfaction, as well to the public, as to many of the stockholders.

mouth, and urging his removal. This communication has been submitted to the board of directors, who will not fail to examine the allegations of Mr. Woodbury, and, should they appear to be well founded, to apply an appropri ate corrective.

In the mean time, I take occasion to state, The new president, Jeremiah Mason, is a as an act of justice to Mr. Mason, that, so far as particular friend of Mr. Webster, and his politi- the facts within my own knowledge warrant cal character is doubtless well known to you. any expression of opinion, Mr. Woodbury la He says, Mr. W. is supposed to have had much agency bors under great misapprehension. in effecting the change. The course pursued for instance," the president of the branch at during the year, has greatly aggravated the ori- this place was changed last year, and the salary ginal dislike to the appointment. Our com-greatly increased, which measures have given mercial men are almost unanimous in their com- great dissatisfaction as well to the public as to plaints, and the people in the interior, who many of the stockholders. The new presi were wont to be accommodated formerly at the dent, Jeremiah Mason, is a particular friend of branch, join with them in a desire for the remo- Mr. Webster, and his political character is, yal of the present president. doubtless, well known to you. Mr. W. is supThe objections to the continuance of Mr. posed to have had much agency in effecting Mason in office are twofold-first, the want of this change." This statement naturally proconciliatory manners, and intimate acquaintance duced in your mind the impression that the with our business men-and, secondly, the charge against Mr. Mason "is partly founded fluctuating policy pursued, in relation to both on a supposed application of the influence of loans and collections at the bank, together with the bank with a view to political effect;" and the partiality and harshness that accompany them.

In making these general representations, I am repeating what are in the mouths of almost every citizen, of whatever political denomination, and am inviting, at the request of many, your influence at the mother bank in producing a change.

Of course, my situation has been such as to deprive me of much personal knowledge of Mr. Mason's administration of the bank concerns; but never, on any occasion, have I known complaints so wide and bitter as in th ecase now under consideration.

the obvious inference from it was, that, under the influence of Mr. Webster, a former presi dent of the office was removed to make way for Mr. Mason with an increased salary, and that this president was using the influence of the bank against the present administration.

In answer, it is fit to say that this view of the subject is entirely erroneous, and perhaps the misapprehension of a gentleman of Mr. Woodbury's general intelligence is the best illustra tion of the extreme caution with which such statements should be regarded. For,

1st. The president of the branch was net changed. The late president, Mr. Shapley, If any relief can be afforded by the selection voluntarily declined serving, without the slightof different directors for this branch, as any est intimation of a wish on the part of the bank, board without him in it, or with him, not at its and solely, as he stated, "in consequence of head, would at once furnish relief; it is thought his advanced age and declining health, together the interests of the bank, and, consequently, of with his close confinement to the office, which the United States, would not only render such prevents, in a great measure, his attention to a board proper, but induce you to communi- his private business." cate with some of the directors of the mother bank in favor of such a change.

Any aid that you can with propriety furnish in the premises, will he likely to confer a great and lasting favor on this community, and to contribute to the permanent welfare of the bank.

With high consideration and respect,

Your obedient servant,
LEVI WOODBURY.

Hon. S. D. INGHAM.

2d. The salary of the new president was not increased a dollar. Mr. Mason was employed as the counsel of the bank, and an annual allowance was made to him in that capacity, which the bank would have been obliged to pay to any other lawyer, and which had no relation whatever to his other duties as president.

3d. Mr. Webster had not the slightest agency in obtaining for him the appointment. His nomination was resolved upon without the knowledge either of Mr. Webster or Mr. Ma

P.S. I understand the board is selected for son, and the only agency of Mr. Webster, was, this branch early in July.

[CONFIDENTIAL.]

BANK OF THE UNITED STATES,

July 18, 1829.

that, after the agent of the bank charged to make a choice had determined to recommend Mr. Mason, Mr. Webster was requested to endeavor to prevail upon him to serve; a request which the agent naturally made of Mr. Webster as a director of the bank.

DEAR SIR: You have done me the honor of 4th. I am surprised that Mr. Woodbury enclosing a letter from the Hon. Levi Woodbury, Senator from New Hampshire, dated the should consider the complaints about Mr. Ma27th ult. stating certain charges against the son as having the remotest connexion with polipresident of the office of this bank at Ports-tics; and I am surprised for this reason: M

Woodbury wrote you on the 27th of Jun; der to induce him to give up so much of his on the same day he wrote a similar letter o valuable time to the service of the bank, an es.. me. I answered, thanking him for his sugges-timate was made of the probable amount which tions, and requesting him to guide my inquiries we would have to pay for the professional serby stating what was the nature of the com-vices of a lawyer, and, by eng ging Mr. Mason plaints against Mr. Mason. To this he replied in that character, we were enabled to obtain on the 3 instan', and that letter has the follow-his consent to accept the appoin ment. ing declaration:

Since

he has been in office, he has been exceedingly "From the confidential character of this useful-has saved the bank from great losses— let er, it is due in perfect frankness to state, has secured the bad debts-nor, until Mr. that the president of the present board, as a po Woodbury's letter, was I informed of any comlitician, is not very acceptable to the majority plaint against him. What is, moreover, to be in this town and State. But it is at the same much considered, is, that while he has been time notorious, that the charges against him, in gradually reducing the old accommodation his present office, originated exclusively with his loans, he has actually increased the amount of political friends, and it was not till they created the general loans of the office. Thus when a personal rancor and inflamed condition of the he went into the bank, August 25, 1828, the public mind, seldom if ever before witnessed in loans werethis region, that others interposed, from a supposed danger to the interests of both the town and the bank:"

Notes discounted,
Bills of exchange,

$280,072 56 22,622 94

302,695 50

In July 6th, 1829,

198,601 44

122,263 33

320,864 77

Notes disdounted,
Bills of exchange,

It appears, then, from Mr. Woodbury's own statement, that, so far from employing the influence of the bank with a view to political effec," it is a notorious fact, that the complaints are made by Mr. Mason's own, political - friends; so that, in truth, if there be any politics in the natter, it is a question between Mr. Mason and pol icians of his own persuasion; which shows a conversion of a portion of the that is to say, (for, after all, I suspect it wil re- old permanent debt into the more active and sult in this,) hat Mr. Mason has had the courage useful form of business transactions. to do his duty whether he offends his political On the whole, I incline to think that it is a friends or not. He may have done his duty too mere question of the securing and reducing a rigidly that is a fit subject of examination, and part of the od debt, which ought never to shall be examined; but Mr. Woodbury's own have been incurred, and as there is obviously declaration to me seems to be irreconcilable no political feeling connected with it, it is a with his letter to you. matter of much delicacy to intefere with the

Having said thus much, I think it due, in operations of the board. 'further justice to Mr. Mason, to state to you Mr. Mason is only one member of that board, the real situation of the whole matter. The consisting of the same gentlemen who have had office at Portsmouth had originally the misfor-charge of the branch for many years; and even tune to have at its bead a Mr. Cutts, who end-supposing him inclined to measures of extreme ed by defrauding the United States of upwards rigor, his colleagues, judging from the ordina. of $20,000 of the pension fund, which the ry sympathies of our nature, would naturally bank was obliged to replace, and last year the be disposed to act with as much lenity towards office was nearly prostrated in the general ruin their townsmen and neighbors as would be at which spread over that country. Out of all consistent with their duty to the bank. $460,000 of loans, $148,000 was thrown under I have run the risk of fatiguing you with protest; still further protests were expected, these details, because I am anxious that you and the actual loss sustained there will not be should understand the true state of the case, less than $112,000. At this period, the late and because it furnishes a good example of the president, a worthy man, but not calculated sort of reproach to which the officers of the for such a state of things, resigned his place, bank are often liable.

I remain, very respectfully, your's,
N. BIDDLE, Pres.

Hon. S. D. INGHAM,
Sec. of the Treasury, Washington.

and it became necessary at once to adopt the I shall be happy to hear from you whenever most energetic measures to save the property you obtain the communications from Kentucky of the bank. A confidential officer was des- and Louisiana, which shall receive immediate patched to Portsmouth, who found the affairs attention: and, in the mean time, of the office in great jeopardy, covered with the wrecks which bad management, and the most extensive frauds, had occasioned. Το retrieve it, it became necessary to select a man of the first rate character and abilities; such a man was Mr. Mason. Of his entire competency, especially in detecting the complicated frauds, and managing the numerous law suits which seemed inevitable, there could DEAR SIR: I have had the honor of receivDe no doubt. Of his political opinions, we ing your confidential letter of the 11th instant, neither knew nor inquired any thing. In or- reserving for the separate communication en

[CONFIDENTIAL ]

BANK OF THE UNITED STATES,

July 18th, 1829.

closed, the details in regard to the branch at ly without foundation; and I think you will be Portsmouth, which, I trust, will prove satis-satisfied that the present charge in regard to factory to you. I proceed to explain, in the the branch at Portsmouth, is equally groundsame spirit of unreserved confidence, the views less. When we consider, too, that the bank of the board on the general topics to which you comes into constant collision with the keenest have invited their attention. passions of men; that its daily duty is to deny Your own good judgment has indicated the personal favors; to resist unfounded pretentrue theory of administering the bank, which sions urged with the impatient anxiety of want is, as you justly state, "that the basis of credit and pride; and, when we reflect how readily are to be found in integrity, industry, econo- those who are disappointed in borrowing, asmy, skill, and capital, and that unity of action cribe their failure to any cause but their own which may be necessary to give efficiency to, want of credit, we may be disposed to wonder, and harmony in, the operations of a bank, is not that there is so much, but that there is se essentially secured by regarding these conside-little complaint, and to accept the extreme rarations alone as constituting the proper claim rity of these reproaches, as some evidence that to the benefits of its credit," and that money- the bank has succeeded in that object of pared institutions should not disturb the relations ticular solicitude-its preservation from all poof property, "by exerting their power in sub-litical bias.

servience to the passions or prejudices of local That success, whatever may be its degree, or party strife;" and you add the very satis-is entire y due to two fundamental principles factory assurance, that those who are charged in its administration: First, that, in the choice with the administration of the Government, of its agents and the distribution of its loans, it "disclaim all desire to derive political aid should be wholly indifferent to political parties; through the operations of the bank, and would and, second, hat, in all its operations, it should learn with regret, that any supposed political be totally independent of the officers of the relationship, either favorable or adverse to Government.

them, had operated with the bank, or any of In respect to the first, the infusion of the its branches, either in granting or withholding spirit of party into every thing around us, cauany pecuniary facilities, which, apart from that ses a constant effort to draw the institution consideration, would have been differently dis- within the sphere of what are called politics. pensed."

With these, the bank disclaims all connection. These clear and sound principles contain the Belonging to the nation, and feeling that its whole elements of the system of the bank, and prosperity and its usefulness are destroyed he its true relation to the Government. It has moment it looses its independence, the bank been the settled policy of the institution, pur- owes allegiance to no party, and will submit to sued with the most fastidious care, to devote it. none. A melancholy experience, moreover, self exclusively to the purposes for which it has taught it a truth so applicable to all parwas instituted; to abstain from all political con ties, that the expression of it should offend tests, to be simply and absolutely a bank, none of them, that, in general, the class of seeking only the interests of the community, persons actively engaged in political contenan the judicious employment of the funds in- tions, as well from their own wants as from the trusted to its management; and never, for a train of adherents whose claims they are too moment, perverting its power to any lo al or prone to support, are among the most dangerparty purposes. The officers of the bank and ous inmates of a bank. Its principle, thereall its branches are thoroughly imbued with this fore, is, that, as in private life, no man conspirit, knowing, as they do, that their interfe- fides his own health or fortune to persons of rence in political contentions would be highly inferior skill, because they are politicians, the offensive to the general administration of the bank, in administering the property of others, institution. Accordingly, I have never, dur- has an equal right to choose its agents on acing more than nine years of intimate knowledge count of their qualifications for the specific duof the bank, perceived an example of any such ties assigned to them, not for their opinions interference. I believe that there are not in on matters wholly foreign to those duties. Its the whole country, any other five hundred per practice ac ordingly is, in the choice of direcsons of equal in elligence so abstracted from tors and officers, neither to seek nor to shun public affairs, as the five hundred who are em- any individual for his political sentiments; to ployed in dministering the bank; and I am regard only his personal fitness, rejecting no satisfied that no loan was ever gianted to, or competent person, and selecting no incompewithheld from any individual, on account of tent person, because he may chance to belong political partiality or hostility. So true is this, to a particular party. This course naturally ofthat, during the extraordinary excitements of fends those whom it disappoints, but it is susthe two last elections for President, when the tained by the sober judgment of the country; bank was regarded as exposed to peculiar and, even in the worst event, it is better to temptation, because the Secretaries of the encounter hostility, than to appease it by unTreasury, towards whom it was supposed to worthy sacrifices of duty; and far better to feel a special sympathy, were candidates, its lose the esteem of others than our own. The perfect neutrality was universally acknowledg- result of this unbiased selection undoubtedly ed. On the only occasion when an imputation has been, that the boards of directors of the of partiality was made, in a form susceptible of several branches are uniformly chosen from inquiry, it proved, on examination, to be whol- among the most respectable member of the

comm›nity, and will bear a very advantageous comparison with the boards of similar State institucions.

other hand, the Government has uniformly and scrupulously forborne from all interference with the concerns of the bank.

made the utmost exertion to prevent every embarrassment which might have been made the pretext of reproach for a measure, the apparent boldness of which is justified by its complete success. It is a source of much gratification to the directors, that those efforts have not been unobserved by you. But what they have done on this occasion, they would do on any other, looking, as they are bound to do, only to the public interests, by whomsoever they may be administered. In fact, their very ability to serve any administration, would be lost by subserviency to it, and the true relation of the bank to the Government, is that of an impartial and independent friend, not a partisan.

In regard to the second, the bank has always Of these views, the recent conduct of the kept itself aloof from all political connection institution may furnish the best illustration. with the Government; and while, in whatever You were desirous of paying off a much larger concerns its appropriate duties, it has yi Ided amount of debt than was ever redeemed at one the most ready and faithful support to all the period. To the bank regarding merely its peofficers of the Government, it has, at the same cuniary interest, it was more advantageous that time, maintaihed the most entire independence this sum should not be paid. But every conof them. Their respective powers and duties sideration of a selfish kind yielded to the strong are assigned to them by the same common au- desire to second your views for the public benthority-the laws of the country. Beyond efit; and the bank, not limiting itself to the these limits, it has never sought nor desired; passive performance of its mere duty, immedinor would it ever have permitted any connec-ately and heartily co-operated with you, and tion with the Government, or any interference on its part-content with being the friend of every administration but the partisan of none. In truth, were the sentiment of personal independence insufficient, the directors of the Bank of the United States would find, in the very nature of their duties, enough to warn them against the danger of such an influence. It is their especial function to secure the bless ings of a wholesome currency, the reward and the measure of the country's industry, which alone can preserve the equal value of private property, or give uniformity and security to the public revenue; and they know perfectly well, that, if their vigilance were relaxed for a single month, the currency would relapse into a con. fusion, from which some convulsion of the country could alone retrieve it. In accomplish-to ing these objects, it has often been necessary to withstand popular clamor; to resist the overweening pretensions of the State legislatures, to oppose the public views, and to thwart the private interests of persons in place, and to re fuse the solicitations for personal favors of the highest officers of Government. In these anxious and intense responsibilities, their best support is the consciousness of their own inde. pendence, in maintaining their own convictions of duty, the foundation alike of their power and their usefulness. These would be irretrievably gone, and with them the whole purpose for which the bank was established, if the directors ever submitted to any extraneous influence-ever suffered themselves to be controlled in the perfectly free choice of their own agents, or could so far forget their duty as to delegate the important trusts confided to their care to incompetent persons, because they were the supporters or the opponents of any political administration.

The footing, therefore, on which the intercourse between the bank and the Government has always been distinctly placed-the only safe basis for the country, the Government, or the bank-is simply this: The bank has given the most cordial and decided co-operation in all the financial operations of the Government; it has taken especial care, as a point equally of duty and of delicacy, that none of its agents should abuse their trust, by injustice towards the existing administration or its friends, being alway ready to apply the most decisive relief against such a perversion of its power. On the

During the successive changes of administration, these views have been frankly presented the Government, who has felt their propriety. The voluntary declaration contained in your letter, is a gratififying evidence that the same sentiment is entertained by the present administration, and that the real nature and interests of the institution are perfectly understood and appreciated.

I bave the honor to be,

Very respectfully, your's,

Hon. S. D. INGHAM,

N. BIDDLE, President.

Secretary of the Treasury, Washington:

[CONFIDENTIAL ]

TREASURY DEPARTMENT,

July 23d, 1829.

SIR: I have received your favor of the 18th, in reply to mine of the 11th instant. In fram. ing my letter, I endeavored to avoid the slightest imputation against the directors of the pa rent bank for having used their power with a view to political effect; but, as this topic was even remotely brought to the notice of the department, there was no alternative between a silence that might have been deemed signifi. cant, and such an avowal of the views of the administration on that subject as could not fairly be misunderstood. The latter course was adopt ed, and I am much gratified to find so an entire

concurrence in our opinions as to the principle which ought to govern in the administration of the affairs of the bank. When principles are thus cordially settled, there is much reason to expect that any material error of practice will, in time, be properly corrected; and there can be no boube that, while the action of the Gog

vernment upon the bank, and that of the bank self compelled, by additional considerations, upon those within the sphere of its influence; arising from a careful examination of the geneshall be practically regulated by these princi-ral scope of your letter, to reiterate the wish ples, the institution will not fail to secure the intimated in mine of the 11th instant, and to great ends for which it was established. But add the expression of a hope that, when any as every institution that is conducted by human abuse is suggested through a channel entitled exertion must necesarily be, in some degree, to respect, whatever motives it may be attribucontrolled by the feelings and passions insepa- ted to, the truth may be sought without prejuble from human nature, there are none, how-dice, from such sources as may be most likely ever pure and elevated the intention, or dispas- to disclose it.

sionate and impartial the judgment of those The complaints at Portsmouth, as you justwho manage them, which can, with propriety, ly observe, do not appear to be generally of a claim an entire exemption from the influence political character, or confined to one party that, more or less, govern the actions of men. only. But without intending to invite any conImpressed with these truths, which may, in-troversy on this point, I cannot forbear to redeed, be considered undeniable, I was not pre-mark that this fact ought not to be regarded as pared for so confident an assertion of the conclusive evidence of their being groundless. universal purity of the bank and all its branch- On the contrary, when it is known that polities, in practice as well as principle, as is to be cal attachment, in times of high party excitefound in your letter; and while I would scrupu- ment, often seek to screen from justice attrolously forbear to assume any fact derogatory to cious offenders against the laws, it may be prethe character of your board or those of the sumed to be no ordinary case where different branches, it is not deemed incompatible with parties, violently opposed, make common. the most rigid justice, to suppose that any body cause against any person who is regarded as a of five hundred men, not selected by an Om-partisan of either. In making these remarks, niscient eye, cannot be fairly entitled to the un-I must not be understood as assuming the truth qualified testimony which you have been pleas of any charge, but merely as objecting to a ed to offer in their behalf. It is morally impos course of action that either resists inquiry, or, sible that the character of all the acts of the what is of the same tendency, enters upon it directors of the branches, much less their mo- with a full persuasion that it is not called for. tives, could be konwn to the parent board;] I am, very respectfu ly, hence the declaration that "no loan was ever Your obedient servant, granted to, or withheld from any individuS. D. INGHAM, al; on account of political partiality or hostiliSecretary of the Treasury. ty," must be received rather as evidence of your own feelings, than as conclusive proof of the fact so confidently vouched for. In offering these observations, I endeavor to divest myself, as much as possible, of the impression reluctantly received from numerous complaints, SIR: On the the 27th ultimo, I had the honor communicated verbally and by letter, since I to acknowledge the receipt of your letter of was called to the charge of the Treasury De-the 23d, headed “confidential,” and it was my partment; and if I have been led by feeling, intention, as I then stated, to leave the subject rather than experience and judgment, to dis- to the president of the bank, who would, after trust the purity of institutions governed by his return, determine whether it was necessary men, or to indulge too little confidence in their to prolong a correspondence, on a topic not exemption from the passions that more or less less new than ungracious.

N. BIDDLE, Esq.
President of the Bank U. S.

BANK OF THE UNITED STATES, 4th August, 1829.

effect all human actions, none can be more sen- Your letter, however, having been since sible of the responsibility encountered in en-read at the board, and the directors having tering upon this discussion. But it is not interchanged opinions upon ii, they have indeemed transcending the just obligation of the structed me to express to you their entire con. department to which is assigned the direction of currence in every sentiment communicated in the relations between the Government and the the letter of the president of the bank of the bank, to suggest its views as to their proper 18th July.

management. I am fully aware that, however Lest, however, any misapprehension might sincerely the performance of this duty is in- exist as to the opinion they entertain of the pertended to promote the proper independence of fect exemption of the bank from any political the bank of the officers of the Government, bias, it is deemed fit to repeat precisely that which you have so justly asserted, any sugges opinion, which was, as will be obvious on retion that than can be made on this subject is lia curring to the president's letter, not a general ble to be attributed to a motive directly opposite voucher for the freedom from error of five hun to that which ought alone to govern it. I am, dred persons, but an assertion that there were therefore, deeply sensible of the delicacy of the not another equal number of men, of the same duty devolved on me, and that any further cor- intelligence, so abstracted from public affairs, respondence may give new ground for misinter- and that no loan was ever granted to, or with pretation, whatever may be the character of the held from, any individual on account of politimotive that dictates it. But looking less to ap-cal partiality or hostility.

pearance than to official obligation, I find my- This opinion is reiterated by the members