like a second deluge, the whole country. These it immediately began to thwart, embarrass and destroy. Fortunate would it have been for millions of people, could some measure have effected the same result a year earlier. Thus did this incident of it prove, in that emergency, highly beneficial. Yet the senator censured it, while working that salutary correction, because it removed some specie from the great centre of commerce, while he vindicates this report, and its supplemental project of a bank, calculated to withdraw specie from the same place, even in ordinary times, and as the ordinary settled policy of the Secretary's financial schemes. The Secretary seeks, also, thus to remove the specie by his new banking machine, to be located here, as its centre, and abuses the sub-treasury for concentrating specie in New York, when Mr. Gallatin, in the pamphlet before mentioned, declares, like the authorities cited the other day, that the places for such a bank are "the great centres of commerce" (p. 93), and its board of control must not be, as in this city, in the centre, I admit, merely of court etiquette and fashion, but must "sit in a great COMMERCIAL city." (p. 95.)

We have heard much, also, in this report and the message, and elsewhere, of the benefits the new "Fiscal Bank" would produce on exchanges. But the difference in what is called exchanges is often a difference between the value of gold and silver and the value of mere irredeemable paper; and thus, what are called exchanges are swollen to ten or fifteen per cent., when real exchanges, between specie in one place and specie in another, are not one per cent. It is truly said, by the distinguished financier before cited, that a national bank cannot remedy this, unless it can drive out the local paper; that, in respect to mere exchanges, it can only buy and sell, like others, at market prices, settled by other great laws of trade, pervading the civilized world, and which this bank can neither control nor alter. Nor can it, with only ten or fifteen millions of currency, expel one hundred and twenty millions of local bank paper. The idea that it can, is quite as crude as the other, about its great influence over exchanges. Mr. Gallatin is as explicit on this point as on the other; though I will not now detain the Senate by reading quotations as to both. But it is intimated that the revulsions of 1837, as well as the excesses of 1836, were attributable to the past administration. Without stopping, on this occasion, to argue that point, I will refer merely to the admission of the same political opponent [Mr. Gallatin], whose high standing in these matters has been more than once recognized in a very flattering manner on this floor.

Mr. G. says (page 32):

"The unforeseen, unexampled accumulation of the public revenue was one of the principal proximate causes of the disasters that followed. It cannot be ascribed EITHER TO THE PRESIDENT OR TO ANY BRANCH OF GOVERNMENT; and its effects might have been the same, whether the public deposites were in the State banks or had been left in the National Bank, organized and governed as that was."

The same idea had, on more than one occasion, been set forth in documents emanating from the treasury department. But then its correctness was stoutly denied by the party now in power, both in and out of Congress. I rejoice that the scales have already fallen from the eyes of some of the most able among them.

Again, in the face of no little upbraiding, I remonstrated, in 1836, against the too rapid collection and distribution of the surplus; and in another debate, at this session, took the liberty to explain in detail the injurious operation of that dangerous provision, which, rather than any mal-administration by the treasury department, hurried on the catastrophe which followed. Without going into a similar explanation again at this time, let me merely give a few remarks of Mr. Gallatin on that feature of the bill:

"Its process was much too prompt."—"The legislature was not, and could not be aware, how slow and gradual the diminution of discounts must be, in order that universal distress may not ensue.'

There is much more of a similar character in this very able pamphlet, which I will not detain you by reading, though bearing directly on the criminations which, in this debate and in the documents before us, have been cast on the past administration, and particularly on its fiscal operations. It has further been specified, as an instance of the hostility of the treasury department at that period to the State banks, that, if its measures did not cause their suspension, the head of the department resisted and retarded the resumption of specie payments.

But the reverse was the truth,-by the great forbearance used in not suing the banks, and by circulars of advice to begin resuming in every city, county, and State, the first moment practicable, as the ablest bankers now admit was right, rather than to wait for all to unite. Indeed, I did more, as well as promised more, in favor of resumption. This may be seen by my correspondence, in the appendix of this pamphlet, with such really sound financiers as Nathan Appleton, of Boston, and George Newbold, of New York.

In fine, to pass over any further discussion of such points at this moment, it should be noticed, in concluding, that most of the modes of relief proposed by the Secretary and President, and which I before endeavored to prove to be ill-judged and fallacious, nobody has yet undertaken, on this floor, to vindicate. Even the senator from Maine slides over the whole in detail, doubtless because too novel, if not doubtful, in character, to merit his vindication, except by loose and very general commendation. One of them, the proposed distribution of the proceeds of the lands to the States, as well as another, the marvellous relief to be anticipated by the indebted States from a new national bank, Mr. Gallatin justly considers, like the politicians on this side of the Senate chamber, as delusive, and by no means proper to be relied on.

Though he was in some degree friendly to such a bank, when of

small capital, carefully modified in other respects, and under severe restrictions,-less friendly, however, than in former days, he still regards such an institution as very "liable to be abused;" and he pronounces the last bank to have been, in every respect, "A PUBLIC NUISANCE." He adds that "the mismanagement and gross neglect which could, in a few years, devour two-thirds of a capital of thirtyfive millions, are incomprehensible, and have no parallel in the history of banks." Yet the reestablishment of a similar bank seems to be a favorite scheme with many gentlemen on the other side, and with it the adoption, also, of the other measures of RELIEF, as they are miscalled, by giving away nine millions,-one specimen of their economy, -and three millions more, as another specimen; by raising the taxes, through a tariff, near eight millions higher, as another mode of relieving the community; and, as another, by loading us and our posterity with a new national, permanent debt, in time of peace with foreign nations, to the enormous amount of twenty-eight or thirty millions more. Such financiering, if carried into effect, would make us the laughing-stock of Europe.

These are the Secretary's reform measures, and which, by this motion, we propose to disseminate widely, if not commend. The senator from Maine had concluded his remarks by expressing his hopes that the measures of "relief" proposed by the Secretary of the Treasury would be adopted. Independently of constitutional considerations, and those of expediency, he (Mr. W.) hoped so too; for he did not, and could not, wish any administration a greater curse than to have hung round its neck the measures proposed by the Secretary of the Treasury.

TEA AND COFFEE- - NECESSARIES OF LIFE.*

IT is of no consequence to me who made the motion to have these articles considered free. If that desirable object can only be obtained, it is all I wish. The senator from North Carolina can now present his reasons in favor of exempting them from duty, if convenient to him. But, if he declines, I would detain the Senate a few minutes, and only a few, in stating what has influenced me to make the motion. In the first place, these articles were not taxed either to benefit the

* A speech delivered in the Senate of the United States, Aug. 31, 1841, on motion to include tea and coffee in the list of free articles.

products of agricultural or manufacturing labor. Neither came in competition with them. We were, therefore, wholly relieved from any considerations connected with the principle of protection. On the contrary, the duty on tea and coffee would operate unfavorably to those engaged in manufactures, as well as those in agriculture, because both of those classes, in common with all others in the community, were consumers of these great articles, and of course burdened by taxation upon them.

All, then, possessed a common interest in making them free; and all, he trusted, would unite in making them free, unless the revenue proposed to be derived from them was needed indispensably to fulfil the public engagements, or to meet those current expenses which the respectability, usefulness, and honor, of the General Government demanded.

Whatever those really did demand, he was willing, for one, to vote, even to the taxing of necessaries. But he was not willing to do this, if due care and economy would prevent the occasion for it, or if the retaining our other rich resources in the proceeds of the public lands, instead of lavishly giving them away, would prevent it.

This, then, is the gist of the inquiry under the present motion:

Is this tax on tea and coffee, the luxuries of the young, if you please, but the comforts of the middle-aged, the solace of the more advanced in life, and the necessaries of the old,-is this tax indispensable?

Whether these articles, under all views and at all times, were or were not real necessaries, did not make so great a difference in this respect, as whether, under the limit of twenty per cent. in the compromise, we could or could not get revenue enough for an economical administration, without imposing some duty on tea or coffee. Because, if we could not, then we must tax even necessaries, or resort to more loans. I admit, however, that these subjects of almost universal use were once regarded as luxuries, and so taxed. But in the progress of wealth, comfort, and intelligence, among the middling and poorer classes, which had elevated them so much higher in the social circle, tea and coffee had become, to almost all, a species of necessaries; and they required exemption from duty, when practicable, almost as much as salt or molasses, if looking to their wide-spread consumption, and their conduciveness to temperance and general happiness. Yet, under pressing circumstances, we had been obliged at times to tax the greatest necessaries. But were we now, by any such circumstances, compelled to renew a tax on tea and coffee?

The senator from Kentucky had been so obliging as to refer to a report made by me at the last session, in which, under certain events, it was suggested that tea and coffee would be among those articles which we might be obliged to tax. Yes, sir, I then thought, and do now, that these articles, though once luxuries, were not to be now strictly treated as such, and still were to be taxed, if it was necessary

to raise so much under a tariff as to embrace articles of that description, in order to obtain the indispensable amount.

I am happy to find that my views as to the character of these articles concurred with those of the honorable senator, expressed as long ago as 1832. He then remarked, in much better language than I could select for myself, that

"If the universality of the use of objects of consumption determines their classification, coffee, tea, and spices, in the present condition of civilized society, may be considered necessaries. Even if they are luxuries, why should not the poor, by cheapening their prices, if that can be effected, be allowed to use them?"

Hence, sir, the articles of tea and coffee-only now quasi luxuries to any, and substantially, or practically, among the comforts, if not necessaries, of all classes are not to be taxed, unless indispensable to meet our imperative engagements. But, on the contrary, if it appear that we are not able to meet those engagements, except by taxing necessaries as well as luxuries, then you must march up to the urgency of the occasion, and tax them, as you already have woollens, sugar, and iron. I thought formerly, as I do now, and hope always to think, that if you will not reduce your expenditures as low as eighteen or twenty millions, and do not expect larger importations than those of 1838, it will not be possible to make the ends of the year meet, without going beyond twenty per cent. duty on some articles, or raising the duty on others now free, including tea and coffee; and that the only question would then be between the preservation of the public faith and a moderate tax on tea or coffee. Between those two considerations, when forced on us, I did not then, nor could I now, hesitate.

But I then stated expressly, as I now do, that our expenditures ought not, in my opinion, to exceed about eighteen millions a year, in 1842. I had expressed a similar opinion, in the annual report on the finances, in the December previous. And I still think that they could safely and prudently be reduced to even less than eighteen, in ordinary times, and am ready at any moment to designate the items and amounts of reduction under each which appear to me feasible. I then thought, also, and then said, that probably the imports would be larger in 1842, and afterwards, than they had been in 1838. But it was necessary to take some year as an illustration of the computation, and therefore a new one (1838) was selected, as 1839 had been unusually high. It was, however, manifest then, as it is now, that if our expenses should not exceed eighteen millions yearly, and the imports prove to be much larger than in 1838, no duty whatever on tea and coffee would probably be necessary.

By the much larger amount of imports, as computed by the Secretary of the Treasury, for 1842, no duty on them will be required in order to defray eighteen or even twenty millions of expenditure. Hence, in accordance with the principles I have always entertained on