View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

EECH
OF

•{. ]||],l,. OF NEW HAMPSHIRE,
ON T H E S U B J E C T OF

T H E REMOVAL, OF T H E D E P O S I T E S




FROM T H E

B A N K OF T H E U N I T E D S T A T E S .

IN T H E S E N A T E OF ^ H E UNITF.jJ STATFSj,

CITY OF WASHINGTON:
PRINTED BY FRANCIS P R E S T O N BL.A.IB*

1834.

RETOOVAJL

OF T H E DEPOSITES.

SPEECH OF MR. HILL,,
OF N E W HAMPSHIRE.

Xx\ t h e Senate o f t h e United States, Monday,
March 3 , and Tuesday, March 4 , 1834—on the
Resolutions offered by Mr. C L A T , of Kentucky,
and t h e Report o f the Committee on Finance,
relative to the removal o f t h e Public Deposites
from t h e Bank o f the United States:
Mr* H I L L addressed the Senate as folio ws:

the Secretary of the Treasury for t h e removal o f
the deposites, may b e found in the manner in
which they have b e e n assailed. W e a k these reasons cannot b e , w h e n it is considered that a regular attack b y a regular party in opposition was
not d e e m e d sufficient to break them down: strong
they must b e , thus long t o have withstood a threeifcfr. PIIESIUKWT:
fold attack from parties on t w o sides o f the house*
I wish to take up as little time o f the Senate as While the onset has been daily made b y nearly
p o s s i b l e . I will at least e n g a g e to take none of t w o to o n e in length and breadth o f the s p e e c h e s
Vt#time t o increase the alarm of ruin and distress on the special order, almost every day has wittjjatare so much dwelt upon in this branch. It is nessed a skirmish o f outposts—an attack upon t h e
T*ftty t o allay the panic, so far as may b e in m y supposed weaker points, during the hour o f morn*
flower, that I would trouble the Senate at all on ing business. Superadded to these, a supposed
t.|»is question. I am willing 1 to t;*ke that time for instrument o f death, in the result o f a Herculean
t l i i s p u r p o s e that may give the Senate the least in- lab or beyond the immediate battle ground, c o m e s
convenience*
in as a third means o f attack, in tl\G shape of a reIf there was any uncertainty, at the commence- port of the Committee on Finance, D o w e want
* » e n t o f t h e discussion o f the resolutions offered stronger proof that the reasons o f the Secretary
l>y t h e Senator from Kentucky, as to the constitu- are strong reasons' Shall w e not speedily have
tional p o w e r o f th« Chief Magistrate t o remove a ground to believe that t h e citadel is impregnable;
S e c r e t a r y o f the Treasury, or any other head o f a that neither the pjarty with the flag o f Union
d e p a r t m e n t , that uncertainty no longer exists. down,* nor the party with the colors o f consoli5$0 little doubt is there left on the question o f pow- dation flying, f nor both o f them united, with all
^ f o f removal, that there seems t o be a general their potent clmmptons,and insti uments o f a t t a c k ,
understanding' that the majority o f the Senate who can either effect a breach in its walls, i>r surmount
?
d i s a p p r o v e o f t h e withdrawal of the deposites, its ramparts
n o t
Mr. President, since I listened to the reading"
Will
suffer the question to be directly taken,
t>ut that t h e accusation of high crimes and misde- of the report o f the Committee on Finance, from
meanors against the President is finally to be evad- the Clerk's table, I have found time once more t o
ed* d e t a c h e d as it has been by the "action of the peruse it* It is relied upon, by the friends of t h e
c o m m i t t e e on Finance from its consort, by suffer- Hank, as the conclusive argument against t h e
reasons of the Secretary lor removing the d e p o ing* i* in * " e e n c * t o r c P o s e quietly on the table.
Sir, since public opinion, and even the opinion ], sits s; and if the opponents of the Bank will t a k e
^>fthe Senate itself, has acquitted the President! for granted all tl e assumptions o f the report,
f}f k n o w i n g l y and wilfully violating the constitu-j there can be little difficulty in arriving at the conl i o n , w e have only t o ascertain whether the rea- clusion that the Secretary's reasons are altogether
sons assigned by the Secretary o f the Treasury, ** unsatisfactory and insufficient."
for t h e removal of the money uV the United States
And, in the first place, if it shall b e admitted
deposited in the Bank of the United States and that one of the ** exclusive privileges** granted t o
Jts branches, are satisfactory and sufficient: in the Bank for a consideration paid, was t h e right
other words, the inquiry should b e simply, was of the Bank to t h e deposites without any restricthe retnrval o f t h e deposites from t h e United tion or qualification, then it will follow that t h e
States B a n k t o t h e several State Banks, a mea- withdrawal o f the deposites by the Secretary was
sure both lawful and expedient? This state of a breach o f contract. B u t is it n o t easy t o b e
file case will fairly bring into discussion e v e r y ! perceived* that if the retaining of the deposites b y
point h a v i n g relation t o the Bank, which n o ^ a g i - J
l a t e s t h e public mind.
* ""•tfulttfiers " •
~
"
T h e strong-est proof o f merit in t\»e reasons o f
f Naional Republicans, alias Federalists.




4
t h e Bank: w a s a privilege, it w a s not o n e o f the t h e B a n k of the U n i t e d States,'* is not founded
" e x c l u s i v e privileges** i n t e n d e d by t h e charter? in fact. E v e n if t h e Secretary o f t h e Treasury
A n d if not one o f these e x c l u s i v e privileges, then had not the p o w e r to c h a n g e the place, t h e State
clearly t h e withdrawal w a s no violation of con- B u n k s or individuals w o u l d as lawfully b e depotract. T h e law e n a c t e d , " t h a t n o other Bank sitories o f t h e public m o n e y in places w h e r t
shall be established by any future law of t h e there was no B a n k of the United S t a t e s or
U n i t e d States during* the continuance o f the cor- branches, as w o u l d be that Bank or its branches*
poration, for which the faith of the U n i t e d States
But, mark further: 4t T h e k e e p i n g of t h e pubis hereby pledged;** reserving- the right to grant lic m o n e y is not a matter which is left, or w a s in*
B a n k s within the District of Columbia to a certain t e n d e d to be left at the will of t h e S e c r e t a r y , of
e x t e n t . T h i s section, and this alone, was obvious- any other officer of the government.** H e r e b
ly intended to e m b r a c e all the ** e x c l u s i v e privi- another unqualified assumption not warranted by
l e g e s " granted to the B a n k N e i t h e r the privi- the practice of the g o v e r n m e n t under t h e la**
l e g e (if it m a y b e called s u c h ) of r e c e i v i n g the T h e charter of the Bank itself most clearly leave*
p u b l i c deposites, nor of m a k i n g its n o t e s every it at the discretion of the Secretary to say ho* <
w h * r e rt ccivabie for debts clue the U n i t e d States, l o n g the k e e p i n g o f the money shall be i n the
w a s an exclusive p r i v i l e g e ; they w e r e both con- custody of the B a n k ; he can, b y that chartertingent, because the Secretary of the Treasury c h a n g e the place of k e e p i n g at any t i m e he
w a s without limitation ( e x c e p t that o f reporting chooses. It is admitted that he cannot pay o u t *
his reasons to C o n g r e s s after the act was d o n e ) dollar of the public m o n e y without an approprift"
authorized to withdraw the d^posites; and Con- tion first made by Congress; lie t h e r e f o r e , in
g r e s s retained to itself the right at any time to that sense, has no control over the pubbc
pas* a law that the notes of the Bank should no purse; and h e n c e , all the cry about the KxecutivC
l o n g e r b e received in p a y m e n t for d u e s to the seizing the purse and the sword contrary t o IRWV
U n i t e d States.
is 'KB t h e " baseless fabric of a vision;" but hcrtfc
If this construction of the law be correct, an t h e law and usage give him unlimited p o w e r ov**
e n d is put at o n c e to the labored argument of t h e the k e e p i n g of the public money- If he a t U#J
first nine p a g e s o f the report to p r o v e the want time d e e m s it to b e unsafe, will t h e p o w e r o f reo f p o w e r in the Secretary to m a k e the removal.
moval to a place or places o f greater safety b e d©*
It may be remarked, in passing, that the notion nied him? N e i t h e r can he b e d e n i e d , a s on*
that the act o f removal cannot b e consummated branch of the Kxecutive, the p o w e r of removtof
until Congress shall have passed on t h e reasons for other reason* than those o f mere safety.
He
assigned by the Secretary, is altogether fallacious; may remove for reason that the institution o r indifor Congress, after hearing those reasons, may not vidual in w h o s e custody it is p l a c e d , lias t a k e n unc h o o s e to act; or if they attempt to act, one w»rrant»ble steps to interfere in t h e politics o f the
branch of Congress may consider the reasons sa- c o u n t r y — h e miiy remove for reason that the mO«t
tisfactory, and the other branch may consider important business of the bank of deposite shall h*
t h e m unsatisfactory; or, both branches may con- transacted without the k n o w l e d g e of its board of
sider them insufficient, and omit to pass a bill for directors—he may r e m o v e , if he has g o o d reasot*
their restoration; or both branches may pass a to suspect that such ai-. institution has suffered
bill for restoration, and the bill shall b e disap- loans t o b e made from favoritism, without ample
p r o v e d by the President; still the act of the Se- security—he may remove for a variety of t e a s o n *
cretary will be valid.
not necessary to be here enumerated. It would
T h e report says, " T h e k e e p i n g of the public be his duty to remove, if it should be ascertained
m o n e y is not a matter which is left, or was intend- that the board of bank directors in w h o s e custody
e d to be left at the will o f the Secretary, or any the public deposites were placed, had g i v e n unother officer of the government.
7 h e public mo- limited p o w e r to one individual to e x p e n d a n unney has a place Jixcd by law, and settled by con- limited amount of the funds o f the institution for
tracts and this plat t is the Bank of the U. StutcsS* preparing and circulating articles, and purchasing
F r o m this strong assumption it would s e e m that pamphlets and n e w s p a p e r s , calculated to operate
no p o w e r to r e m o t e was by law given to the Se on elections, and si cure a renewal of its charter*
cretary, but that alt p o w e r was given to the Bank
T h e financial report again says, " B u t h e (the
to hold the public depositcs.
But w h e n w e Secretary of t h e T r e a s u r y ) has no authority over
come to look at the law, w e find it directs the the circulating medium of the country, e i t h e r mei l e p o t i l e s of the public m o n e y only to be made tallic or paper; nor h:is he the control o f the nation*
** in places in w h i c h the said Bank and branches al currency. It is no part o f his duty e i t h e r to
t h e r e o f may b e established, unless the Secretary contract or e x p a n d the circulation of bank paper,
o f t h e Treasury shall at any time otherwise or- | nor in any other way to exercise a general superd e r and d i r e c t , " T h e r e bus not b e e n a moment intendence o v e r the m o n e y system o f the counsince the establishment of the Bunk of the U. try.-" S p e a k i n g o f a p r e s u m e d ** extraordinary
States, w h e n other local banks in p l a c e s w h e r e p o w e r o f j u d g i n g of the general interest'* vested
there was no U n i t e d States Bank or branches, in the Secretary, the report continues, " a u c h *
h a v e not b e e n places of deposite for t h e public power, did h e possess it, w o u l d necessarily make
m o n e y ; and t h e s e banks w e r e as lawfully places of him t h e g e n e r a l superintendent of all t h e pro*
d e p o s i t e as was that o f the United States or its c e e d i n g s o f the bank; because it w o u l d e n a b l e h i *
branches. S o that the unqualified assumption t o c o m p e l the bank t o conform all its operati'ivtgto
that the ** place fixed by law and settled b y con- his pleasure, under penalty of suffering a removal
tract** for t h e d e p o s i t e of t h e public m o n e y , *' is o f the p u b l i c m o n e y s . "



5
I c a n n o t readily conceive the object of denying curtailment of loans for the t w o previous months
the a u t h o r i t y o f t h e Secretary of the Treasury in the mother Bank and its branches.
over t h e *' circulating- medium, either metallic or
T h e committee are of opinion that there is very
p a p e r / * a n d his " control of the national curren- little ground for complaint that * many important
*
cy, ** b u t for the object o f claiming1 those powers money transactions of the Bank are ptaceil under
for t h e managers of the bank- T h e power over the control o f a Committee of Exchange, of which
the m e t a l l i c circulating* medium, the standard of committee no one of the public directors, as they
the v a l u e o f m o n e y , is vested, I acknowledge, in are called, is allowed to be a member,*' because,
t h e g e n e r a l government—it is one of the powers they say, *<it has not been alleged that, in the disd i r e c t l y g r a n t e d t o Congress by the constitution. count of bills by this committee, any indiscretion
B u t I «tnn n o t ready to acknowledge that Congress, has been committed, or any loss incurred, or that,
m u c h l e s s t h e Secretary of the Treasury, lias any in consequence thereof, any facility to the merp o w e r , d i r e c t or implied, to make a paper circula- cantile community has been withheld, or any dutj'
ting iridium
the standard of value in our money of the Bank to the Government violated."
systemT h e p o w e r to coin money does not
T h e bare allegation that no positive harm I.A>
m e a n t h e p o w e r to create a paper standard of resulted, is but a sorry justification of nets immoney*
proper and unlaw fell in themselves. T h e comT a k e n in connexion with what has been before mittee of exchange, of which complaint is made*
s t a t e d , I c a n scarcely doubt the wish of gentlemen consisted of three persons, a minority of the
t o jrive t h e B a n k of the United States—an institu- board; and to this committee o f exchange much
tion w h i c h a c k n o w l e d g e s no responsibility—a per- of the important business of the institution was comm a n e n t '* authority over the circulating medium mitted. T h e public directors allege that the
of t h e c o u n t r y , " which shall control, not only all real business of the institution is not transacted
by
the m o n e y operations of Government, but all the the board, nor its real authority there exercised;
trade a n d business of the United States, Can that there exists, beyond its control, a power
g e n t l e m e n COM template such a power in a corpo- that can be snd is e x c i t e d , promptly, secretly,and
ration w h i c h may be owned and directed by aliens effectually, from one ex^d of the country to the
to t h e c o u n t r y , and enemies to free principles, other. T h e y further allege that they (the p u b w i t h o u t s h u d d e r i n g for the fate of our republican lic directors) are excluded from the standing-cominstitutions?
mittees, and that two of these committees are seT h u s m u c h for the general argument of the lected by the president of the bank alone; that
F i n a n c e Report, which will, I think, be found these committees have assumed the functions of
baaed on principles entirely at variance with ihe the board t»f directors: that they have done this
w h o l e practice of the Treasury Oepartment ever contrary to the recorded opinion of the boards
s i n c e t h e adoption of the Constitution.
that they have loaned money contrary to the byT h e last t w e l v e pages of the Finance Uepoi't laws, and on doubtful and unusual security; that
are a l t o g e t h e r devoted to the attempt to invali- they have done it on days and under circumstand a t e t h e reasons offered by the Secretary to Con ces where the board might have acted, had the
g r e s s fov t h e removal of the deposites,* and r e d l y , business been brought before them; that they
if t h e p e o p l e of the United States would believe are not required to report in writing1 their prothat t h e Bank and its managers could do no wrong, ceedings to the board, 8cct h e r e w i l l b e no room to doubt for a moment that
T h e Committee on Finance are doubtless of
t h e r e a s o n s offered by Mr. Taney, were to them opinion that little harm either has or will result,
h o t h ** unsatisfactory and insufficient, *'
fiom this Committee of Exchang-e, w h o discount
T h e report, in answer to that reason of the Se- paper without the knowledge of the board,
c r e t a r y w h i c h refers to the near approach of the * T h e bank (they say) has been advised that it
«
p e r i o d w h e n the charter will expire, says: " T h e might rightfully do this; and if it bo not ctear
•withdrawal oi the money left on deposite from a that this opinion's* ri^ht, it is certainly tar from
b a n k w h o s e charter is about to expire, is natural- clexr that it is wrong/* In this justification all
l y o n e o f the things longest postponed." Now, it f*st friends of the bank may unite* T h e Ameri19 o f little c o n s e q u e n c e to state it, but is not this can people, who have some interest in the master,
p o s i t i o n at variance with the fact? It could not be J may entertain another und a different opinion*
e x p e c t e d at such a time, when the Hank s about J T h e committer say they have no evidence of
t o e x p i r e , it would want the means to extend its the truth of the allegation of the Secretary of the
loansQri its own account, the money would be Treasury, ** that the measures of the Committee
&f n o u s e ; on account of the public, it might be of Exchange are, as it appears, designedly and
r e a d y at the moment when exiled for. But for by system, so arranged as to conceal from the
all t h e valuable purposes usually anticipated from officers of the government transactions in which
d e p o s i t e e , while the Hank was ** winding up its the public are deeply involved
This, it must
concerns,** this c* longest postponed" matter be admitted, is a very serious charge.
It imw o u l d not b e of the lc^st benefit to the interests ot putes a corrupt motive. T h e committee have
the Banlt. If **the Committee can perceive no sought for the foundation, either in evidence or
p o s s i b l e reason** for < so early and so sudd n u argument, on which this charge rests: they have
*
w i t h d r a w a l " as was made on the first of October, found neither."
the. pe&pfe may perceive the best possible reison
If the Committee on Finance are really unable
in t h e resolutions of the Bank of the 13th August, to perceive any evidence in this mntter, have
arbitrarily deranging the exchanges between the the president of the bank and the directors ever
different sections of the country, and the ** sudden'* denied the fuct ? On the contrary, does not every




6
c i r c u m s t a n c e that has c o m e t o t h e k n o w l e d g e o f I a l t h o u g h t h e y d e n y that their o b j e c t in p a y i n g *
the p u h l i c , s h o w that t h e r e have b e e n many transac- amount for political publications u n p a r a l l e l e d «**
tions i n v o l v i n g the d e e p e s t p u b l i c interests, the by the e x p e n d i t u r e s o f any m e r e political party it
history o f w h i c h has n e v e r b e e n told? T h e p e o - this country, has e x t e n d e d b e y o n d s e l f d e f e n c e *'
p l e , at U-ast, have s t r o n g suspicions; and the is abundantly manifest from this p a m p h l e t ttteK
k i n d o f a r g u m e n t u s e d by t h e Committee on Fi- that they consider misrepresentation and crimfe*
nance is not e x a c t l y calculated to aHtty those sus- tion necessary to effect that o b j e c t . T h e tank
bus poured out its funds through its a g e n t , w h o *
picions.
T h e affair of t h e protested draft on the F r e n c h not limited in the amount of his e x p e n d i t u r e s i*
treasury, o n w h i c h the bank claims, without ha- t h e most profligate manner, to paitisan. pristIt is said one e.Ution o f seventy-fivC
Vmg a d v a n c e d a dollar that did not b e l o n g to t h e ers.
thousand copies of a single n e w s p a p e r , print'
g o v e r n m e n t , t h e enormous amount as d a m a g e of
o n e h u n d r e d and fifty-eight thousand dollars, is ed at N e w York, con tunning this r e p o r t rf
t r e a t e d as a matter ot ordinary o c c u r r e n c e be- I the directors, and other offensive m a t t e r , !>•*
t w e e n individuals, ** T h e bank (say the commit- b e e n lately circulated, evading the p o s t a g e by »d*
It is a l s o * * !
t e e ) think** itself entitled to d a m a g e s on a pro- dressing them to postmasters.
t e s t e d bill purchased and h e l d by itself, and drawn that three or more editions of fifty thousand
by g o v e r n m e n t .
T h e Secretary of the Treasury s p e e c h e s , made since the c o m m e n c e m e n t o f th*
thinks otherwise.** **lt is quite inconceivable to present session of Congress, printed on fair lafp
K*
t h e c o m m i i t c e that t h e p e n d e n c y of such a differ- t\ p c , at the e x p e n s e ot the B^nk—in one o r B K
e n c e o f opinion, on such a question, should fur- of which the E x e c u t i v e Head of this G overmuch
nish any reason whatever for t h e withdrawal of is abused in no measured terms—have b e e n circtt*
lated fur and wide at the public e x p a n s e .
t h e depositee.'*
If the friends of the B a n k are in real douV
T h i s claim for damages, in m y opinion—inasm u c h as it indicates a disposition to grasp what whether or not the Jiank o w n s presst-s, a n d car
cannot in e q u i t y b e said to b e l o n g to the Hank— rlcs «n the business o f party political managefM*'
s o.v: .iinong tue many g o o d reasons w h y the <io- on an c-attended scale, the mass of the c i t i z e n s C***
vcrnment should, at ail events, c h a n g e its fiscal not but be convinced o f a fact o f w h i c h m a n y pef
I sons have ocular demonstration.
agent.
Say the c o m m i t t e e , ** T h e last charge preferred
** T h e committee entei t u n no doubt that the
against the bank is, that it has used its m e m s with j immediate cause o f the existing public distress *
a view to obtain political power, and thereby se- to be found in the removal o f the public <fcp<>*
cure the renewal o f its c h a r t e r . "
" T h e very sit. s, and in the manner in w h i c h that r^nionl
statement of such a charge, as a reason for remov- has b e e n m a d e , " *4 T h e c h a n g e of t h e deposites
i n g the depoaites, is calculated to e x c i t e distrust in is made on the strength o f c h a r g e s against tbc
t h e wisdom and propriety o f that measure; be- Dank, of a v e r y grave and aggravated nature*
cause the charge, too general to be p r o v e d , is too such as, if true, w o u l d most seriously afFect it*
general, also, to be d i s p r o v e d . " " T h e bank, it is credit for s o l v e n c y and stability. It is proclaimed
said, " l i a s sought to obtain political p o w e r . " to tiu.* w h o l e world us having c o n v e r t e d i t s e l f inW
W h a t is the definition of such an offence as this? a political partisan, misappl c d its funds, neglectW h a t acts constitute it? Mow is it to b e tried? ed its highest duties, and e n t e r e d on a career <
™
W h o is to be t h e j u d g e ? "What punishment shall e l e c t i o n e e r i n g against the g o v e r n m e n t o f tbe
follow conviction* All must s e e that charges of country.**
this na'urc are but loose :*nd v a g u e accusations,
T h i s is said by the c o m m i t t e e in t h e way o f JUS"
w h i c h may he made at any time, and can neither
tification for any imputed hostility o f t h e Ban*
be proved nor d i s p r o v e d , " &c.
It is b e l i e v e d , h o w e v e r strong may b e the doubts oT towards the u hole business community; a n d ye*
the committee against the bank s e e k i n g for politi- the c o m m i t t e e intimate that the gradual withdraw*"
cal p o u e r , dial im-re are millions of die p e o p l e al o f nine millions o f the public r e v e n u e from the
of A;r„r;ta w h o have no doubts on die subject. Rank, on w h i c h , th< y say, " was sustained, itf
T h e y understand the " d e f i n i t i o n " of the offence doubt, u discount o f far greater magnitude,** «• ne— " u h u t a c t i constitute \C*—"how it should be cessarily c o m p e l l e d it to diminish its discounts to
t r i e d " — " w h o is to b e the judge'*—and " w h a t the full e x t e n t of all that part w h i c h m a y b e gup*
shall be the p u n i s h m e n t . "
A n d although the p o s e d to have b e e n sustained by it.**
N o w let us recur to t h e condition of t h e Bank
c o m m i t t e e think the c h a r g e too general to be
either proved or disproved, they want no stronger of the U . S* in the city o f Philadelphia, a n d in
p r o o f th'Ui the admission of the party criminated. the city o f Boston, as last r e p o r t e d , and s e e h o *
T h e Directors o\ the Hank, in their p a m p h l e t , Tar, in t h e s e places, the Rank has b e e n '« compelw h i c h has b e t n laid on the tabh s o f the Senators, led to diminish its d i s c o u n t s . "
in justification of the many thousand dollars of the
In the city of Philadelphia, t h e D a n k curtail
fund.-i ot the hunk e x p e n d e d in political publica- m e n t i n the month o f January wa* from $ 7 , 9 9 9 f '
t i o n s s»y. "This* has b e e n d o n e with regret that 2 3 2 to $ 7 , 5 7 6 , 5 0 9 — $ 4 0 2 , 7 2 4 ; w h i l e the specie
it ahnu'd be necessary, but with the strongest con- was increased from $ 1 , 8 8 1 , 6 8 6 to $2,030,034*
r i c t on of its propriety, and without the slightest W h y this curtailment in the month o f January
-ivivh u> disavow or to conceal it. On the contra- with a supcrahundancc of s p e c i e on haudr la l*
r y , the Kauk assorts its clear right to defend h s c l f not e x p l a i n e d in the fact that t h e Hank a n d its
equally against those w h o circulate false state- friends w e r e , during 1 that m o n t h , m a k i n g i h e ut"
m e n t s , and those w h o circulate f a b e notes.** A n d , most efforts to p r o c u c e in Philadelphia »n e x pre*




o f t h e p e o p l e a g a i n s t t h e r e m o v a l of t h e d e - at t h e P i t t s b u r g b r a n c h s h o u l d m a k e S t e u b e n v i l l e
feel t h e n e c e s s i t y of crying* o u t for t h e r e s t o r a to*» a n d i n f a v o r o f a r e c h a r t e r ?
m t h e c i t y o f B o s t o n o n t h e 1st of A u g u s t last, tion of t h e d e p o s i t e s a n d t h e r e c h a r t e r i n g o f t h e
t h e d i s c o u n t s a m o u n t e d t o five millions, n e a r l y , B a n k .
A n o r d e r t o curtail i m m e d i a t e l y t w o h u n d r e d
w h i l e t h e a m o u n t o f s p e c i e w a s $265,000
and a
f r a c t i o n - A t t h e s a m e p l a c e , o n t h e first of J a n u a - a n d t w e n t y - s i x t h o u s a n d dollars at t h e L o u i s v i l l e
r y , t h e d i s c o u n t s h a d b e e n r e d u c e d to # 2 , 3 0 0 , 0 0 0 , ( K e n t u c k y ) b r a n c h , is said to h a v e g o n e f o r t h .
w h i l e t h e s p e c i e h a d a c c u m u l a t e d t o t h e a m o u n t T h e r e is a r e p r e s e n t a t i v e in C o n g r e s s from t h e
Louisville district, w h o votes against t h e B a n k ;
o f m o r e t h a n h a l f a million.
A n d i t n o w a p p e a r s , t h a t in t h e m o n t h of J a n u - and m e a s u r e s m u s t b e t a k e n t o p o u r in a t o r r e n t
a r y * t h e l o a n s a t t h e b r a n c h B a n k in Bosto \ w e r e u p o n h i m . B u t r e c e n t advices from L o u i s v i l l e
r e d u c e d t o # 1 , 6 3 6 , 1 6 4 ; making- a f u r t h e r r e d u c - say t h a t t h e D i r e c t o r s of t h e B r a n c h B a n k at t h a t
tion of a b o u t S E V E N H U N D R E D T H O U S A N D p l a c e have t a k e n u p o n t h e m s e l v e s t h e '* r e s p o n sibility" of refusing- t o c a r r y this o r d e r of t h e p a D O L L A R S in o n e m o n t h !
I t w i l l n o t d o t o s a y t h a t w h i l e t h e s p e c i e a n d jrer.t B a n k into e x e c u t i o n ; t h a t t h e s e Directorst h e m e a n s o f t h e B a n k a r e i n c r e a s e d , a n d g r e a t have t h e feeling's of m e n , a n d will not b e instruc u r t a i l m e n t s a r e m a d e with a rapidity u n p a r a l l e l - m e n t a l in enforcing* an o r d e r t h a t will b e r u i n o u s
W e shfdl soon s e e w h a t
e d in t h e a n n a l s of banking* in any p a r t of t h e to t h e i r fellow-citizens.
w o r l d ; i t w i l l n o t satisfy t h e p e o p l e t o b e told, t h a t will h e d o n e with a B o a r d of D i r e c t o r s w h o shall
t h e B a n k is ** c o m p e l l e d to diminish its dis- h a v e t h e t e m e r i t y t h u s t o r e s i s t t h e o r d e r s of t h e
c o u n t s " t o this extent.
A c u r t a i l m e n t of t w o - m o t h e r Bank*
A t Nashville, t h e B r a n c h B a n k h a d a c a p i t a l of
t h i r d s o f all t h e B a n k a c c o m m o d a t i o n s in Boston
i n t h e s p a c e o f five m o n t h s , a n d a c u r t a i l m e n t of one million, a n d its d i s c o u n t s had r a n g e d from
n e a r l y h a l f a million in a m o n t h of u n e x a m p l e d o n e a n d a h a l f t o t w o millions. B u t w h e n in
p r e s s u r e i n P h i l a d e l p h i a , during- J a n u a r y , u n d e r 1831-2, to c o u n t e r a c t t h e opinion of t h e P r e s i * r a p e d i n c r e a s e o f s p e c i e a n d an r a p i d a d e c r e a s e d e n t , it b e c o m e s n e c e s s a r y t o ** btry g o l d e n opino f t h o s e r e s p o n s i b i l i t i e s w h i c h c r e a t e occasions ions'* at his d o o r , t h e loans of t h tt B r a n c h B a n k
f o r its u s e ! I t is i m p o s s i b l e t h a t t h e C o m m i t t e e are in a s h o r t t i m e e x t e n d e d t o t h e e n o r m o u s
o n F i n a n c e s h o u l d c o n t i n u e to insist t h a t t h e . B a n k a m o u n t o f five millions o f dollars at this single
w a s ** c o m p e l l e d t o d i m i n i s h its d i s c o u n t s " to t h e interior town- B u t this o p e r a t i o n g a i n s for t h e
B a n k not a solitary friend in C o n g r e s s from T e n , e x t e n t th«ar h a v e b e e n d i m i n i s h e d .
c
W e find, on looking 1 o v e r t h e r e t u r n s of t h e j n e s s e e : n o t h i n g a.n b e {rained t h e r e ; a n d in a
v e r y few m o n t h s t h e vast loans o f t h a t b r a n c h a r e
B a n k f r o m t i m e t o t i m e , t h a t e x p a n s i o n s a n d curt a i l m e n t s h a v e b e e n m a d e for t h e especial p u r p o s e ] c u r t a i l e d from five millions t o less t h i n o n e milo f o p e r a t i n g " on p u b l i c o p i n i o n ; a n d t h a t t h e lion of dollars. T h e S t a t e of T e n n e s s e e h a d for*
c o m m u n i t y h a s b e e n r e w a r d e d or p u n i s h e d as t h e i n n a t e l y established at t h e m o m e n t a l a r g e S t a t e
S a u k m i g h t c o n s i d e r e x p e d i e n t for its o w n inte- B a n k , t o w h i c h capital h a d flowed; a n d this cirr e s t s a n d t h e i n t e r e s t s of t h e political p a r t y on c u m s t a n c e alone, enabling* h e r t o s u p p l y t h e vacuum suddenly made, preserved that
flourishing
w h o s e efforts it h a s d e p e n d e d .
A n d , sir, w e h a v e daily e v i d e n c e , t h a t w h a t e v e r c o m m u n i t y from t h e a n t i c i p a t e d distressT h e r e i% sir, no e x c u s e , n o a p o l o g y for t h e
p r e d i c t i o n s of distress a n d suffering a r e m a d e by
t h e f r i e n d s o f t h e B a n k h e r e , t h e B a n k immedi- c o n d u c t of t h e b a n k in p r o d u c i n g p e c u n i a r y disI t will
a t e l y t a k e s m e a s u r e s t i n t t h e y shall be verified; tress t o 1 h e u t m o s t e x t e n t of its p o w e r .
a n d *f a n y o p p o n e n t of t h e B a n k points at any n o t d o t o say t h a t " c h a r g e s against t h e b a n k ot a
5
s e c t i o n o f t h e c o u n t r y t h a t is p r o s p e r o u s a n d v e r y a g g r a v a t e d nature * have b e e n m a d e , a n d not
If its sins h a v e b e e n heinous—if it ha^
flourishing
in its business, t h a t m a n w h o sits in p r o v e d .
h i s c h a i r a t P h i l a d e l p h i a •* calm as a s u m m e r ' s b e e n p r o v e d to h a v e c o n v e r t e d itself into a <« politm o r n i n g , " i m m e d i a t e l y p r o c e e d s t o n p p l y t h o s e ical p-irtisan,'* to h i v e " m i s a p p l i e d iis f u n d * , "
f
m e a n s w h i c h shall p r o d u c e t h e d e s i r e d distress. * n e g l e c t e d its h i g h e s t d u t i e s , " and c l c c t i o n e e r c '
T h e S e n a t o r from P e n n s y l v a n i a ( M r . W i l k i n s ) against t h e g o v e r n m e n t , " this is offensive enoiif
s o m e t i m e a g o s t a t e d t h a t w h e n h e l*ft his h o m e , forever to p l a c e o n it t h e seal of c o n d e m n a t i o
W e s t e r n P e n n s y l v a n i a felt n o p r e s s u r e ; t h a t t h e Cut if t o those offences, it has m o r e r e c e n t l y add*
c i t y o f Uis r e s i d e n c e , o n e of t h e m o s t
flourishing t h a t of a s e t t l e d design t o e m b a r r a s s a n d distre
^ n a n u f a c t u r i n g a n d t r a d i n g p l a c e s of t h e c o u n t r y , t h e w h o l e t r a d i n g c o m m u n i t y — a n d t h e p r o o f
w a s e n j o y i n g its c o m m o n state of p r o s p e r i t y . this d e s i g n is as p a l p a b l e as it is a w h d — t h e n mi
T h i s s t a t e m e n t h a s only t i m s to travel to Pitts- it p r e p a r e itself for t h a t m e a s u r e of p o p u l a r indi
b u r g h , Wat Philadelphia j before t h e s t r e w s an-, nation w h i c h will c o n t i n u e t o overflow so l o n g u
- a p p l i e d t h e r e ; a n d s e v e n t y t h o u s a n d dollars at t h e its n a m e shall b e r e m e m b e r e d A g a i n , s p e a k i n g of t h e U n i t e d S t a t e s B a n k
B r a n c h B a n k of t h a t p l a c e a : c c u r t a i l e d in t w o
tnontha.
T h i s p r o d u c e s t h e d e s i r e d st-itc of dis- note* as a c u r r e n c y , t h e C o m m i t t e e on F i n a n c e
t r e s s a t P i t t s b u r g h ; b u t distress is not y e t e x t e n - s*y, " JTO the State Banlts tf/e^ note* and hills have
s i v e e n o u g h in that r e g ' o n .
A g e n t l e m a n _ »t performed the office of specif;" and they further say,
remoftteubcnville,
o a t h e O h i o , s o m e t h i r t y mile's h e - i h a t t h e c u r t a i l m e n t of t h e circulation "is
l o w P i t t s b u r g h , w r i t e s to his friend h e r e , a few ving* to the amount curtailed* tht bans of general
Does this l o o k , w h e n t h e b a n k shall
d a y b s i n c e , t h a t t h e distress had not y e t arrived circulation***
mX t h a t p l a c e ; b u t t h a t a Rank*man
from P i t t s h*ve s u c c e e d e d in f o r c i n g a r e n e w a l of its c h a r t e r ,
b u r £ h a d a r r i v e d , a n d t h a t h e h a d d e c l a r e d a fur- to t h e m a k i n g of U n i t e d S t a t e s B a n k notes a s u b t h e r c u r t a i l m e n t of o n e h u n d r e d t h o u s a n d dollars stitute for s p e c i e — t o t h e a d o p t i o n in e a r n e s t of




8
the British system of paper currency? B y the re- case, evincing an utter recklessness toward*
cent law in England rechartering her great Na- interests of the Government, and justifying eg.—-^
tional Bank, the notes of the Bank of England are ly the dismissal of any agent, if within the {"»*%
made a legal tender. Mr. Walsh, of Philadel- of the Kxecutive, charged with the e n e c u t i e * ^
phia, pronounces this to b e " a sound and bold" the laws, is totally omitted in the report o f It*
measure, and sagely concludes, that by it the bank committee; what inference shall w e draw fis*
will be relieved from all drain of specie, and con- the fact? Was it really a matter too slight or4p*
sequently, form one great cause of derangement contemptible for notice? Or was it a matter th#
of the currency! T h e effect of the suspension of could not be satisfactorily answered?
Another reason of the Secretary slightly noticed
specie payments in Kngland, and the substitution
of a paper currency " a s the basis of general cir- it not entirely passed over in the argument o f tfc*
culation, " I intend to notice in another place. If committee, is the fact "that the whole capitalrf
it be the opinion of the Committee on Finance, the Hank is, in effect, placed at the disposition*
that the bank has the exclusive control of the cur- the President of that institution;" that "he-iftfl*
rency; that it can substitute, " a s the basis of gen- thorized to expend what he pleases in causing 4*
ertd circulation," the paper of the bank for gold be prepared and executed such documents and p *
and silver; and that the bank, on this basis, is to pers as may communicate to the people infoTa*
be the sole arbiter in all the business relations of tion in regard to the nature and operations o f ftf
currency and exchange, I must be permitted to Bank." Was this unlimited power of the P i e *
give it as my belief that the great mass of the com- dent a matter so frivolous, or of so small interc*
munity will never unite in their opinion*
to the public, that the committee did not d e e m *
T h e doctrine of the Committee on Finance as worthy of an answer?
to the basis of money, surely is not now what was
It has frequently been, noticed of the adit*
the doctrine of the Chairman of that Committee, lawyer who has a hard case, that the best h e €•»
(Mr. Webster,) when a representative in Con- do for his client, is cither to glide over altogoth**
gress in 1816* Although the paper circulation the tough points, or to notice them very hgbthb
W'JS in its worst condition, he then said,
making- much of those points which can b e
" No nation had a better currency than the Uni- answered, or which will not leave the case iaft
ted States—there was no nation which had guard- dead certainty against him. It would not b e ••**
ed its currency with more care; for the framers of rect to impute any such intention as this to tfc*
the constitution, and those who enacted the early Committee on Finance for their omissions in e*»*
statutes on this subject, were hard money men* mining the Secretary's reasons* I will onlys^J*
they had felt, and therefore duly appreciated, the that it was an oversight in the committee muo*
evils of a paper medium* They therefore sedu- more fortunate for the Secretary than for tb#
lously guarded ths currency of the United States Bank.
from embarrassment. T h e legal currency of the
From the reasons of the Secretary, and til*
United States wus^o/rfjifKl nilvcr coin. This was attempt of the committee to refute them, I M *
a subject in regard to which Congress had run in- turn to the Bank itself, and to the consequence*
to no folly.**
of its approaching contemplated dissolution.
T h e hard money men who framed the constituSir, it has been complained more than oncer
tion were not then in as bad odor as the hard mo- that the purpose of those opposed to the Bank ii
ney men of the present day.
to array the poor against the rich/ Not so, Mr*
I have thus, Mr. President, perhaps in a manner President- Who are they who are dependent o#
too cursory, yet in a manner satisfactory to the Bank ? Are they not those who are too poor
my o u n belief, that iny grounds are the to live on their own means, and are endeavoring
only tenable grounds, noticed all the promi- to create the artificial means of living by the aw
nent points in the argumentative report of the of a paper currency, predicated, not on gold ana
Committer on Finance* If in this labor f ahull silver, but on the credit which shall he given tt>
have convinced nobody that mine- are the correct that cuiTency by the government deposites* Who
views, I will have Kvtisfied myself, that the Secre- is more poor and dependant than they w h o relf
tary's reasons f«r removing the depositee are as on the paper issues and the credit which a g*C*&
little invalidated by the report of the Committee Bank can afford as their sole means of doing
on Finance, astiu-y have been by the hundred and business when the Bank shall discount, but mil*
one speeches that lave been spoken and printed stop the moment it shall deny its favors? No* •*rt
Against them.
the great mass of men in this country whom tbe
f do i ot p* rrr-ivc that the Committee on Finance Bank has endeavored to inveigle and deceive*
husany w hi re iritir il that prominent reason of the and who, for its unrighteous conduct and bear
Secretary of the Treasurv for the removal of" the ing, have gi\en this Bank its death blow, are not
depo*it<*s—"the conduct of the Bank in relation the poor and dependant of the land. They are
to the three per cent, stock of the United States-" the bone and muscle of the country, the yeomanThi» was a cast; in which the Exchange Committee ry, whose means are substantial; whose bank of
<• not only managed, u, secret, a moneyed trans- discount and deposite is the soil which they cultiaction ril vwit amount, intimately connected with vate, and whose wealth has become too amplo t&
the h\\ rt-*\s of the people of thi* country, hut make them the dependants of the dependants oft
in if where thr measures of the Government were such a monopoly as that which is now attempting
thwarted by the Hank, rind the nation compelled to ag:t:ite the Ian.I. Thanks to a beneficent Pro*
to continue* Tor a time liable for a debt which it vidence, the condition of the great majority who
was ready ami desirous to extinguish." As this sustain the President in his opposition t o the




y
* ^ * u k is n o t that o f the poor w h o can b e c o e r c e d government with an ability to depress the pub Ha
means, yet
little
J * s e d u c e d from t h e i r p u r p o s e s b y e i t h e r t h e credit and obstruct the public
At the present moment, many per**^wna o r s m i l e s of t h e m a n a g e r s of any m o n e y e d thought of
sons a r e desirous of l o a n i n g m o n e y t o t h e U n i Monopoly.
From t h e d a w n of t h e r e v o l u t i o n to t h e p r e - ted S t a t e s at less t h a n six p e r c e n t , i n t e r e s t ; b u t
**nt m o m e n t , t h e s t r u g g l e b e t w e e n w h a t J o h n as t h e B a n k can r e n d e r m o n e y '* scarce** w h e n it
A d * m * c a l l e d t h e " a b s o l u t e o l i g a r c h y " a n d t h e p l e a s r s , b y c h e c k i n g its circulation, 1 v e r i l y b e J ^ m o c r a c y , h a s b e e n g o i n g on. T h e conflict has lieve t h a t it has t h e p o w e r to r e d u c e t h e p r i c e o f
k ^ e n b e t w e e n t h e few
w h o g r a s p at p o w e r o u r six p e r cent, s t o c k s to 80 or 8 5 p e r c e n t , i n
* h r o u g h t h e w e a l t h of t h e c o u n t r y , and the many six m o n t h s , if t h e r e s h o u l d not b e a foreign m a r k e t for t h e m .
W i t h such means, what may w e
S t r u g g l i n g t»» retain t h e r i g h t of self-government.
I n 1 8 2 0 , t h e ** e x c e l l e n t friend"* of t h e Sena- not :ipj>rehend, if t h e B a n k s h o u l d interfere m o u r
e l e c t i o n s ; zealously s u p p o r t this man, and o p p o s e
***r from K e n t u c k y , Hczekiah Nihs7 said:
" T h e power of t h e b a n k of t h e U n i t e d States that, nnd, if unsuccessful, t h r o w its w e i g h t in di*^ s e v e r e l y d e p r e c a t e d b y t h e wise a n d g o o d ; r e c t opposition t o t h e administration? T h i s m a y
x
\ is a n e n g i n e o f a m o r e formidable n a t u r e , t h a n not a p p e a r t o b e t h e i n t e r e s t of t h e B a n k ; b u t
^*iy b e f o r e k n o w n t o o u r c o u n t r y — c o m p e t e n t to w h e n w e r e c o l l e c t t h a t <* holy m e n d e n o u n c e d
*iictate p u b l i c m e a s u r e s a n d p r i v a t e c o n d u c t , ami d a m n a t i o n " on t h o s e w h o l e n t m o n e y t o t h e g o V e t is i r r e s p o n s i b l e e i t h e r to t h e g o v e r n m e n t or v e r n m e n t d u r i n g t h e late w a r , a n d k n o w t h e
*htf p e o p l e — a n d m a y b e a b o v e t h e r e g u l a t i o n force and fervor of party, w c can easily b e l i e v e a
^ y e n ^ its o w n s t o c k h o l d e r s t h r o u g h t h e con- sacrifice of i n t e r e s t m i g h t b e m a d e t o e m b a r r a s s
trivances mentionedT h e first election u n d e r a n d d e r a n g e t h e p u b l i c p r o c e e d i n g s . T h e r e is
H s c h a r t e r .furnished a p r o o f t h a t t h e
minority no p r o s p e c t j u s t n o w , of such a political e x c i t e **iight g o v e r n ; a n d if t h a t minority had b e e n less m e n t as h a s b e e n s p o k e n of; b u t l e t it c o m e
foolish o r less w i c k e d , t h a t minority w o u l d have w h e n it will, a n d it will o n e d a y or a n o t h e r a g i g o v e r n e d still.
T h e b a n k is y e t e x c e e d i n g l y tate u s , t h e B a n k will moat a s s u r e d l y b e a P O L I T I tirippled t h r o u g h t h e p r o c e e d i n g s of t h e s e m e n , CAL M A C H I N E . W h e t h e r , as s u c h , it h a p p e n s t o
its o r i g i n a l fabricators, t h e singular infidelity b e on my side or against m e , I shall still hold t h e
t>f its officers a n d a g e n t s — s o that for a l o n g same opinion of i t — t h a t it is an u n c o n s t i t u t i o n a l
t i m e past it has m a d e no d i v i d e n d . T h e t i m e institution,** &c.
Mr. Niles p r o p h e s i e d r i g h t of t h e B a n k in all,
has l>een w h e n a man w i t h o u t a black cockade in
h i s hat, w o u l d h a r d l y e x p e c t t o b e civilly t r e a t e d saving one t h i n g ; a n d t h a t was, t h a t h e s h o u l d
t
in a b a n k of t h e U n i t e d S t a t e s , m u c h less to b e c o nt€ i n u e to hold t h e opinion t h a t this B a n k w a s
unconstitutional i n s t i t u t i o n . " T h i s m a n was
f a v o r e d w i t h a s h a r e of t h a t p u b l i c accommoda- an
t i o n w h i c h it was i n t e n d e d to furnish.
T h e dis- o p p o s e d to t h e U. S, B a n k . 1 u n d e r s t a n d t h a t h e
p o s i t i o n s of m e n , a n d t h e force of p a r t y , are t h e is now in favor of it, a n d t h a t h e w a s one of a c o m t a m e t h e y w e r e t w e n t y - t w o y e a r s »go; anil it m i t t e e to c o m e h e r e from B a l t i m o r e to ask for
tsannot b e d o u b t e d b u t t h e p r e s e n t b a n k wo*Jd a r e s t o r a t i o n of t h e d e p o s i t e s . l i e s o u n d e d t h e
c o n d u c t itself as b a d l y as t h e old b a n k did, if alarm against t h e B a n k f o u r t e e n y e a r s a g o ; h e
t h e r e s h o u l d b e any s t r o n g political e x c i t e m e n t . d r e a d e d its ** i n t e r f e r e n c e in o u r e l e c t i o n s " — h e
"The i n f l u e n c e of t w o or t h r e e h u n d r e d m o n e y e d ** feared t h a t it m i g h t b e t h e g o o d p l e a s u r e of t h e
m e n , d i s p e r s e d t h r o u g h o u t t h e U n i t e d States, B a n k to o p p o s e t h e g o v e r n m e n t " — l i e did n o t
* n d c o m m a n d i n g a l a r g e p a r t of t h e m o n e y e d in- | d o u b t t h a t t h e n e w B m k ** w o u l d c o n d u c t as badt c r e s t , l o c a t e d a t t h e m o s t c o n v e n i e n t points, and , ly a s t h e old o n e d i d , if t h e r e s h o u l d b e a n y
c o n c e n t r a t i n g t h e i r force in o u r c h i e f c i t i e s and . s t r o n g political e x c i t e m e n t " — t h a t it " m i g h t
t o w n s , t h e n r e n d e r i n g a c o m m o n o b e d i e n c e t o | t h r o w its w h o l e w e i g h t in d i r e c t opposition to t h e
t h e G r a n d L a m a , or p a r e n t b a n k , as t h e sun of, a d m i n i s t r a t i o n " — h e said t h e H a n k w o u l d a s s u r e d And now t h a t
t h e i r s y s t e m — m a y b e m o r e easily c o n c e i v e d th:m ly b e c o m e a *'political m a c h i n e . "
described.
77iey cannot ivanl adherents and un- • the Bunk s e e m s t o have verified all t h a t he said
derlings—for
t h o s e w h o have t h e c o m m a n d of; against it, w e find him a m o n g its s t r o n g e s t a d v o m o n e y will a l w a y s c o m m a n d t h e m ; a n d i h e y m n y ; cates. B u t , w h o e v e r r e a d Niles's R e g i s t e r fifalso dictate
their measures
to t h e body of t e e n or t w e n t y y e a r s ug0^ a n <l w i H r e a d it n o w ,
• c o m m e r c i a l i n t e r e s t / a v e r y p o w e r f u l clnss j m u s t p e r c e i v e t h a t not in relation to t h e B a n k
of s o c i e t y .
A s m a t t e r s w o r k at p r e s e n t , t h e nlone, b u t in almost e v e r y t h i n g else, I l e z e k i a h
b a n k is a s necessarily on t h e side of g o v e r n - Niles has c h a n g e d his p r i n c i p l e s ; h e c h i m e s in
m e n t a s t h e b e n c h of bishops in K n g l a n d are p e r f e c t unison with t h e p r a c t i c e s a n d t h e p a r t y
** E p h r a i m has j o i n o n t h e side o f t h e c o u n t rj ; for to b o r r o w t h a t h e b e f o r e c o n d e m n e d .
m o n e y is t h e o r d e r of t h e d a y , a n d it is t h e in- : e d to idols, let him a l o n e . "
Mr, P r e s i d e n t , w e h a v e lived in an a g e of p a terest of t h e B a n k to l e n d it. [It will b e recoi- j
Iected that t h e T r e a s u r y , from t h e organization of nics a n a a l a r m s ; a n d was t h e r e e v e r a t i m e in
t h e B a n k , u p t o 1820, w a s in a condition that w h i c h t h e p a r t y o p p o s e d to t h e free p r i n c i p l e s of
o b l i g e d t h e b o r r o w i n g of m o n e y . ] B u t t h e cir- j o u r G o v e r n m e n t c o u l d n o t b e a r t h e e n t i r e s w a y
cumatances of t h e t i m e s m a y b e c h a n g e d ; and it of t h e a d m i n i s t r a t i o n , w h e n t h e y did not a t t e m p t
r/usy be the good pleasure of Che Bank to oppose the \ t o p r o d u c e an e x c i t e me nl ?
Sir, this is not t h e first deposife s u b j e c t in this
* I n a d e b a t e in t h e S e n a t e in t h e session of j c o u n t r y t h a t has b e e n m a d e use of to c r e a t e a p a 1 8 3 1 - 2 , M r , Clay called t h e e d i t o r of t h e Haiti- i n i c
My youthful r e m i n i s c e n c e s c a r r y me b a c k
m o r e W e e k l y R e g i s t e r his (< e x c e l l e n t f r i e n d . "
j t h i r t y - t w o y e a r s , w h e n t h e r i g h t o f deposit c9 n o t




ro
panics w h e n e v e r t h e E u r o p e a n b e l l i g e r e n t *
c r o a c h e d on o u r n e u t r a l national r i g h t s . T h e *
t a c k on t h e C h e s a p e a k e , a n d t h e m u r d e r of Pctr#
in t h e h a r b o r ot N e w Y o r k , in 1805 a n d lHH
w e r e fruitful t h e m e s of v i t u p e r a t i o n . T h e p*fl
w:is as valiant as J u l i u s Caesar, ami declared tb*
administration **could not b e k i c k e d into war.
T h e p a n i c of t h e e m b a r g o in 1807, 308< a n d ' W
so m u c h r e s e m b l e d t h e p a n i c t h a t is n o w attempt
e d , t h a t , to all living w h o r e c o l l e c t t h a t time*'
n e e d not e n t e r u p o n t h e p a r t i c u l a r s .
T h e n c a m e t h e series of p a n i c s w h i c h t h e opp*
sition iii'st e x c i t e d , a n d a f t e r w a r d s p l a y e d off A*"
i n g t h e w a r of 181-5, T h e s e , t o o , a r e quite Wj
familiar to ask for detail. T h e m o n e y party, the!
v e r y men w h o now s u p p o r t a n d u r g e t h e restoi*"'
tion of t h e d^posites to t h e U n i t e d S t a t e s Bsufc
and t h e r e c h a r t e r i n g of t h a t H a n k , d n t h e merest
tile t o w n s , t h e n a t t e m p t e d to force t h e Governm e n t into submission t o t h e t e r m s of t h e ene**/*
by w i t h h o l d i n g t h e i r m o n e y from t h e p u b l i c #*"
r i c e , a n d by dissuading t h e c'tizt ns from sub»crw*
i n g to t h e loans a u t h o r i z e d b y C o n g r e s s .
After t h e war was e n d e d , t h e Missouri p * 1 ^
was artfully c o n t r i v e d , to a r r a y t h e honest men**
t h e North i g a i n s t t h e h o n e s t m e n of t h e Sotfth*
a n d so well did t h e contrivers of this s c h e m e ^
c e e d in wliat was t e r m e d an *' e r a of good leeling*
b e t w e e n (he t w o old parties, t h a t t h e oligarch?
actually laid hold of t h e administration, b y fof?"
ing on t h e p e o p l e t h e choice of a Chief M*g**
t r a t e , against t h e will of m o r e t h a n three-fourth*
of t h e S t a t e s of t h e Union*
*A fricn-I has since r e m i n d e d t h e s p e a k e r that • Hut, Mr. P r e s i d e n t , for t h e last five or «*
thi* denial of i h e r i g h t of d e p o s i t e at N e w Or- (years, t h e c h e r i s h e d ' ' A m e r i c a n System,** until
leans was t h e s e t of N a p o l e o n "Jlonaparte. L o u i - it r e c e i v e d its d e a t h - b l o w ut t h e last session of Consiana hail b e e n c e d e d by Spain t o F r a n c e , a l t h o u g h g r e s s from t h e h a n d of its own p a r e n t — t t t*
n o t formally d e l i v e r e d , J h e effect of t a k i n g finttfef—has
b e e n t h e standing s u b j e c t for afp**'
forcible possession of N e w Orleans would have tion a n d p a n i c , w h e n all o t h e r s failed.
Ho*
b e e n a war with both Spain and F r a n c o ; and t h h , c h a r m i n g l y w o u l d t h e n o r t h e r n opposition f&n
at tha* t i m e , t o the old federal p a r t y , was a ** con- play into t h e h a n d s of t h e s o u t h e r n opposition
s u m m a t i o n devoutly t o h e w i s h e d . "
man by this g a m e of t h e A m e r i c a n S y s t e m ? So
Mr. B e n t o n , in his s p e e c h on F o o t ' s resolu- late as one y e a r a g o , while t h e l e g i s l a t u r e o
>
tions, (see C o n g r e s s D e b a t e s , vol, < p a r t 1, p a g e Smith Carolina was d e c l a r i n g h e r s e l f o u t o f the
%
1 0 4 , ) s p e a k i n g of t! e acquisition of I,ouis^ana in Union if t h e tariff should b e c o n t i n u e d , t h e Le1S0;>, s-.*ys—•• Jt is to be r e m e m b e r e d that F i a n c e , gislature of Massachusetts was r e s o l v i n g t h a t fthe
e m e r g i n g from the v o r t e x of h e r revolution, over- w o u l d g o t o war if t h e tariff s h o u l d b o reducedflowing with warriors, and g o v e r n e d by t h e con- T h e tariff was r e d u c e d ; an ultimate reduction
q u e r o r who was c a t c h ' n g at t h e s c e p t r e of t h e d o w n t o t w e n t y p e r cent.* e v e n l o w e r t h a n hid
w o r l d , w a i t h e n t h e o w n e r of I,ou:s;ana.
T h e b e e n p r o p o s e d by t h e friends of G e n e r a l Jackson
First Consul h a d e x t o r t e d it from t h e K i n g of — e v e n l o w e r t h m that r a t e w h i c h t h e friend* «"
S p a i n in the year 1800, and t h e violation of t h e t h e system d e c l a r e d w o u l d p r o s t r a t e all t h e m»nil'
r i g h t of d - p o s i t e at N e w Orleans was Ins* first act i factuVes of t h e c o u n t r y . T h i s r e d u c t i o n was m»Ae
of o w n e r s h i p over t h e n e w possession, a n d t h e I by a " c o m p r o m i s e ; " a n d Massachusetts becafl)*
first significant intimation ti» us of t h e n e w k i n d not only pacified, b u t c o n v i n c e d th:*t h e r inter***
of n e i g h b o r that wc had a c q u i r e d . "
| haft b e e n c o n s u l t e d , u p o n t h e e m p t y declaration
Mr. l U n t o n gwes on to sb w ihat > vast and im- i tltat t h e c o m p r o m i s e alone h a d saved h e r mMW*
p o r t a n t us was t h e acquisition of t h e t c r r i t o r v , its fiieturt'S from inevitable r u i n !
value s h r u n k to mersj bis'givficanr-c w h e n c o m p a r The Indian affairs irt G e o r g i a a n d A l a b a m a h**e
e d with t h e value of p r e v e n t i n g its passing perm.i- preserve:! a n o t h e r e x c i t i n g s u b j e c t , w l v c h b**
nently, with t h e whole control of t h e c o m m e r c e been m a d e use of by political a g i ' a t o r s for the
of t h e W e s t , into the hands of e i h e r F r a n c e o r worst purpose*:. It had b e e n s u p p o s e d t h a t the
G r e a t I^hitain.
He likewise p r o v e s the ho»fLty stipulated obligations of tin* g o v e r n m e n t of the
v*f tfv f dr-ril or opposition pnrfy at cv« vy s t e p lo United States to t h e S t a t e of Georgia a n d t o the
tin* m -ins fay a c q u i r i n g thi* leiVkory. "The no- Indians were: such i'S must b r i n g die f o r m e r in diHl'nv'^'-Oti of the rn'riister nppi-iint •*! to negrviate rect rollision wi'h on.; or both of tin* l a t t e r . When
t h e -r. atv (Mr. Monroe, nfu r w a r is P r e s i d e n t , ) a m a n d a t e u :is issued b y a J u d g e of the S u p r e m e
passed mdy by a majority of t w o votes!
Court, in!eroded to arrest t h e p r o c e r d i n g s of the

of t h e p u b l i c m o n e y s , b u t of t h e w h o l e p r o d u c e
o f t h e W e s t e r n States, a t t h e p o r t of N e w O r l e a n s ,
w a s d e n i e d by t h e i n t e n d a n t or r u l e r of t h e P r o v i n c e of Louisiana, u n d e r t h e c r o w n of S p a i n *
T h : s was soon after %Mr. Jefferson was e l e c t e d
P r e s i d e n t ; a n d w i t h no less violence was h e assaulted on a c c o u n t of that, d e p o s i t e q u e s t i o n t h a n
G e n . J a c k s o n in n o w assailed for his d e t e r m i n a t i o n
t o carry into effect t h e e x p r e s s e d will of t h e p e o p l e in relation t o t h e Hank of t h e U n i t e d S t a t e s .
T h e opposition of that time called for an i m m e d i a t e w a r with Spain to force a restoration of the de~
positcx*
I-ed on by ftoss an I Morris, w h o t h e n
m i s r e p r e s e n t e d the g r e a t S t a t e s of Pennsylvania*
a n d N e w Y o r k in t h e S e n a t e of t h e U n i t e d S t a t e s ,
t h e federalists of that day c o n t e n d e d t h a t t h e Gov e r n m e n t could not g e t on w i t h o u t a c h a n g e of
o u r rulers- I m a g i n a r y distress a n d ruin to t h e
c o u n t r y w e r e t h e n tinned—the administration was
c h a r g e d with c o w a r d . e e a n d pusillanimity for n o t
d e c l a r i n g war, and m a r c h i n g instantly to t a k e possession of N e w Orleans. 13utt before t h e opposition w e r e a w a r e of what was g o i n g on, Mr. Jeffers o n ' s m e a s u r e s for t h e p u r c h a s e of I^ouisiana h a d
Miceeeded, and an end was p u t to tlu.t d e p o s ' t c
q u e s t i o n . It w^s t h e n th*t the opposition t u r n e d
again a n d a b u s e d h;m for p a y i n g fifteen millions
of dollars to p u r c h a s e a * ' w o r t h l e s s s w a m p . " T h e
e v e n t has p r o v e d , that t h e p u r c h a s e w o u l d have
b e e n an e x c e l l e n t bargain for t h e c o u n t r y , h - d ten
t i m e s fifteen millions of dollars b e e n p a d for it.
After this, the opposition p a r t y essayed to c r e a t e




11
Hrff C o u r t , w h i c h a d j u d g e d an Indian murderer made to produce that distant effect; and they are
**fci*merited p u n i s h m e n t , h o w high was the con- every where formed against a general expression
%n.iff
t h e a g i t a t o r s t h a t collision would not be of scorn from the real friends of the Union*
But, Mr. President, my present object is to
l l ^ b t « e d b e t w e e n t h e S t a t e authority and the Uni!*M S t a t e s a u t h o r i t y !
A n d w h e n the ciu^e of the notice the panic and agitation produced by the
^ p r i a o n e d M i s s i o n a r i e s was juljudgcd, on an ex- distress for money which is felt in the commercial
K i t e h e a r i n g -against Georgia, how loud were the cities of the Union. What has produced that
^felamations a g a i n s t t h e Pres'dent for not at the distress? Both the friends and the foes of t h e
^Wnent d e c l a r i n g w a r against the State of Ceor. Bank have admitted that the Bank, wielding a
Wa! A n d it h a s b e e n a matter of taunt on the capital of thirty five millions, and controlling the
}**e*identf ( o i n c e t h e c o m m e n c e m e n t of this de- pecuniary means of debtors to twice the amount
**te,) that h e d i d n o t instantly c a n y into effect of that capital, can produce temporary distress,
%rt d e c i s i o n , w h i c h c o u l d have been done only This fact admitted, the only question is, has the
kjr t h e s h e d d i n g o f b l o o d , and the waging- of a Bank taken those measures which are calculated
}
**vil war* I t is n o w said, that the Supreme Court to produce distress
That the B.mk can produce temporary distress
^f the U n i t e d S t a t e s has lost its power! If that
A p a r t m e n t o f t h e g o v e r n m e n t has lost any por- at a given point has been abundantly proved by
tion o f t h e r e s p e c t a n d confidence of the people, the conduct of its branch at the commercial capi**ba» b e e n b r o u g h t a »out by its eagerness to de- lal of N e w Hampshire, in 1829. Yevy little of
cide t h i s q u e s t i o n o f t h e missionaries, and others of the capital of this Bank lias ever been o w n e d in
Viadred character, calculated to disturb the quiet that State. Three hundred thousand dolhrs were
*ttd h a r m o n y w h i c h subsisted between the State and sent to that town, and loans to the amount of perNational G o v e r n m e n t s — i t has been from an eagcr- haps half a million of dollars were urged on that
*teaeto g r a s p at jurisdiction which many have COD- community at a time w h e n there was abundant
tended n e v e r b e l o n g e d to it. ^Subsequent events capital in the State Banks for all the legitimate
w e raised t h e s t r o n g suspicion that the whole business of the town and i^s vicinity. This made
Man o f this missionary suit originated at the head mon^y so easy of attainment, that men w h o had
T t e r a o f t h e o p p o s i t i o n in Massachusetts; and a little money and some credit, were induced to
probability is that t h e missionary appropriation take more money from the branch Bank and intf*f» t h e national treasury intended for the relt- vest it in manufacturing establishments. After
tfous instruction o f t h e Indians, was converted the tariff law of 1328 had passed, the manufactoto a fund t o e n a b l e agents to attend in this city, turing sto^k fell, in many instances s i n k n g the
ted p r o s e c u t e t h e i r suit. It is well understood whole investment, so that w lie re the Bank had no
the I l o s t o a agitators w e r e driven from the ground other security, bad debts were made, and where
Ofljy b y t h e interference of a generous and muni- collateral security was given, those who hired the
( c e n t patron
o f many humane institutions, re&i- money, and their sureties became the sufferers,
<fif« i n t h e State o f N e w York, who declared, if A large portion of the businessmen were stripped
these missionaries did not accept the terms of re- of their all; and the Bank lost in bad debts some
lease w h i c h t h e E x e c u t i v e of Georgia had offered eighty thousand dollars.
To improve the affairs of that branch, it was
them that t h e missionary society, which ha I enCourasjed t h e obstinacy "of these imprisoned mis- recommended that its management should be
sionaries* n o Ioiagershould receive his countenance placed in the hands of a great bank attorney,
with an addition of some fifteen hundred dollar's
Or supp°**t •
A n o t h e r s u b j e c t more recently moved by the per year to the salary of its former President. This
*ri<ators, is t h e slave question. Accordingly, we Bank attorney, igivraxt of the wants of die men
fmrl t h e agitators at the public meetings in South of business, as he was of what was the true inteC a r c l i n a , d e c l a r i n g to their followers on public rest of the Bank, took it into his head, because
o c c a s i o n s , that there: is a deliberate design on the the B ok had made bad d< bts from speculators in
tort o f t h e p e o p l e of the North, to drive the the State, that the substantial men of business
Whole w h i t e population out of that country, to who remained, ought no longer to be trusted; and
annihilate their property, and destroy their pros in violation of the terms of payment on which
rit
T h e agitators of the North, being in nine loans had been made, called on all the customers
iTae* o u t o f t e n , the same persona who have la- of the Bunk t« pay four for one of what they were
b o r e d s o zealously in the Indian agitation; these required to pay by the implied terms of their first
u r i t a t o r s , r e d u c e d - t o almost, nodiing in point oi contract. Preceding even this, he made a loan to
Mtttnbersand influence, by the unmasking of their a single house in Boston of nearly an hundred
l i y - o c r i s y > a c t in perfect concert with the agita- thousand dollars at one time, drawing the specie
t o r s it* t h e South* T h e y attempt to give color to from the local Banks, whereby thev were fur the
t h e i r c o m p l a i n t s b y calling meetings and deliver- moment unable to furnish the relief which thev
i n g inflammatory addresses in various places; and otherwise might have done. T h e customers «f
t h e y a r e a t t e m p t i n g 1o operate on Congress by the Branch Bank were pressed; they in tun*
TAC; S I J * * 1 - * petitions in various parts, asking that pressed others; the specie, which was the substratum of the entire currency, was abstracted;
t | f c V e r y m a y be abolished in the District of Cohlinbia! O f these agitator*, it suffices to say, that and the t-xpansion and contraction of the United
in t h e w h o l e North not one intelligent man in States Bank paper credit aloue might be set down
t w e n t y will j o i n their standard. 'ITie South has as the sole procuring cause of the distress and
nothing to fear from their efforts, but in the effect embarrassment which followed. It was this arbithey .#»»y h * v e a t a distance- 1 hese efforts are trary breach of faith with the customers o f the

C




12
B a n k t h a t i n d u c e d t h e m e r c h a n t s a n d m e n o f i n g t h e w i s h e s of an o p p r e s s e d a n d i n j u r e d
b u s i n e s s o f all p a r t i e s t o p e t i t i o n for t h e r e m o v a l nity in t h e d i s t a n t S t a t e o f N e w H a m p s l
of t h e m a n w h o h a d c a u s e d t h e d i s t r e s s .
T h e it h a d b e e n t h e o b j e c t of t h e ** p r i n c i p a l «r
p r e s e n t S e c r e t a r y of t h e N a v y , vhen a r e s i d e n t o f lay h o l d of t h e b a n k a n d c o n v e r t i t t o
P o r t s m o u t h , a n d myself, w e r e t h e o r g a n s of t h e p u r p o s e s , t h e S e c r e t a r y of W a r w o u l d
w i s h e s of tltat c o m m u n i t y .
M r . W o o d b u r y w r o t e t h a t t i m e , h a r e a t t e m p t e d , for t h e RCCOI
t h e S e c r e t a r y of t h e T r e a s u r y , e x p r e s s i n g the: dis- tion of t h e c i t i z e n s of t h a t S t a t e , t o remove
satisfaction o f t h e c i t i z e n s at t h e c o n d u c t o f t h e funds t o p a y p e n s i o n e r s from t h e v a u l t s 1of
offending* officer, a n d r e q u e s t i n g - t h e i n f l u e n c e of b a n k to a n o t h e r S t a t e b a n k o f m o r e conin***
At no t i m e h a v e t h e f r i e n d s o f
t h a t D e p a r t m e n t t o assist in correcting- t h e e v i l ; l o c a t i o n .
a n d I w r o t e t w o g e n t l e m e n of P h i l a d e l p h i a , e n - m i n i s t r a t i o n m a n i f e s t e d a d e s i r e to convert
closing* for t h e P r e s i d e n t o f t h e H a n k t h e p e t i t i o n H a n k of t h e U n i t e d S t a t e s into a p o l i t i c a l «•#*£
o f ** sixty r e s p e c t a b l e m e m b e r s of t h e N e w H a m p - o r t o t a k e it u n d e r t h e i r e x c l u s i v e control.
shire L e g i s l a t u r e / ' and another petition subscribT h e c a u s e of t h e p r e s e n t c o m m e r c i a l di
e d *' b y m o s t of t h e b u s i n e s s m e n , m e r c h a n t s , at m u s t b e a p p a r e n t t o all w h o assent t o t h e truli
P o r t s m o u t h , w i t h o u t d i s t i n c t i o n of p a r t y , " r e - t h e fMct t h a t t h e B a n k of t h e U n i t e d S t a t e s C*>
questing 1 t h a t t h e c a u s e of t h e t r o u b l e m i g h t b e a d affect t h e m o n e y or c r e d i t of t h e countryr e m o v e d ; t h a t a B o a r d of D i r e c t o r s of m i x e d p o In July, 1832, after t h e President h a d
litical c h a r a c t e r ( i n s t e a d of a B o a r d e x c l u s i v e l y t h e b a n k bill, an h o n o r a b l e S e n a t o r from
h o s t i l e t o t h e S t a t e a n d national a d m i n i s t r a t i o n s ) c h u s e t t s , ( M r . W e b s t e r ) is r e p o r t e d i n Gale*
s h o u l d b e d e l e g a t e d for t h e y e a r w h i c h w a s a b o u t S e a t o n ' s D e b a t e s , t o h a v e s a i d :
c
t o c o m m e n c e , a n d t h a t t h e ** i n s t i t u t i o n in t h a t
* I^et us look at k n o w n facts. T h i r t y million*
S t a t e m a y n o t c o n t i n u e t o b e an e n g i n e of politi- t h e c a p i t a l of t h e B a n k a r e n o w o u t , o n loans
cal o p p r e s s i o n b y a n y p a r t y . " T h e s e w e r e m y d i s c o u n t s in t h e S t a t e s on t h e Mississippi a n d its
w o r d s ; a n d a m o s t d i s i n g e n u o u s u s e w a s m a d e of t e r s ; t e n of t h e s e millions on t h e d i s c o u n t of it*'
t h e m a n d of t h e p e t i t i o n s w i n c h t h e } ' c o v e r e d , b y o f e x c h a n g e , foreign a n d d o m e s t i c , a n d t w e n t y
t h e P r e s i d e n t of t h e m o t h e r B a n k , w h o n o t only lions l o a n e d on p r o m i s s o r y notes* N o w , sir, 1 m
e x p o s e d t h e s e p e t i t i o n s t o t h e d e r i s i o n of his is it possible t h a t this vast a m o u n t c a n b e ColW^ '
a g e n t , b u t justified a n d r e t a i n e d t h a t a g e n t in of- e d in so s h o r t a p e r i o d [ t h r e e y e a r s a n d a ha]£*%
fice t d l , by t h e force of p u b l i c o p i n i o n , h e left w h i c h t i m e t h e c h a r t e r w o u l d e x p i r e ] withotttitfi 1
b o t h t h e office a n d t h e S t a t e .
f e r i n e by a n y m a n a g e m e n t w h a t e v e r * *
* ^\
T h e o p p r e s s i o n a n d c o n t u m e l y h e a p e d u p o n I h e s i t a t e not t o say ( c o n t i n u e s t h e S e n a t o r ft***
t h e citizc ns of P o r t s m o u t h d i d n o t end t h e af- M a s s a c h u s e t t s ) t h a t as this v e t o t r a v e l s t o *f
fair. T h i s isolated t r a n s a c t i o n is m a d e , in a p u b - ' w e s t , it will d e p r e c i a t e t h e v a l u e of cvetvy W*V
lication b e a r i n g t h e sanction of N i c h o l a s B i d d l e p r o p e r t y , from t h e A t l a n t i c S t a t e s to t h e Miss©**1"
a n d e l e v e n d i r e c t o r s of t h e b a n k at P h i l a d e l p h i a , Its effects will b e felt in t h e p r i c e of lands, 4*j
a t a m e e t i n g o n t h e 3 d D e c e m b e r , 1 8 3 3 , t h e g r e a t a n d l e a d i n g a r t i c l e of w e s t e r n p r o p e r t y ; * '
g r o u n d of a w e i g h t y c h a r g e a g a i n s t t h e a d - t h e p r i c e of e n p s ; in t h e p r o d u c t o f labor; **
t h e s u p p r e s s i o n of e n t e r p r i s e ; a n d in embalitf*^
m i n i s t r a t i o n . T h e p a m p h l e t c h a r g e s as follows:
*• I t w a s in t h e m i d s t of this c a r e e r of inoffensive mei-t t o e v e r y k i n d of b u s i n e s s a n d occupation
u s e f u l n e s s , w h e n soon a l t e r t h e accession t o p o w - I t a k e t h i s opinion s t r o n g l y , b e c a u s e I have ***
e r of t h e p r e s e n t K x e c u t i v e , t h e p u r p o s e w a s d o u b t of its t r u t h , a n d a m w i l i n g its c o r r e c t n ^ i
distinctly r e v e a l e d t h a t o t h e r d u t i e s t h a n t h o s e t o s h o u l d b e j u d g e d b y t h e e v e n t / *
t h e c o u n t r y w e r e r e q u i r e d — * n d t h a t it w a s n e c e s If t h e h o n o r a b l e S e n a t o r i n t r u d e d t o create *jj
s a r y for t h e b a n k , in a d m i n i s t e r i n g its affaire, t o a l a r m in t h e w e s t , as w a s d i s t i n c t l y a v o w e d , to»*
c o n s u l t t h e political v i e w s of t h o s e w h o h a d now- feet " an i m p o r t a n t e l e c t i o n " t h e n a t hand, th*
o b t a i n e d t h e a s c e n d e n c y in t h e K x e c u t i v e .
/ / /,v e v e n t on w h i c h h e s t a k e d his r e p u t a t i o n has B°*
understood
ihat soon offer that event a
/netting o c c u r n d ; for from t h e d a t e of t h e v e t o in 18S4
was hid in Washington
of the principal chiefs to u p t o t h e t i m e of t h e p r e s e n t p a n i c , n o t withstand
consider the means of perpetuating
their new au- ii*g t h e m e r c h a n t s at C i n c i n n a t i , c o n t r o l l e d b y th*
thority y and the possession of the hank was among B a n k , b e f o r e t h e e l e c t i o n , a d v e r t i s e d that tHJ
the most prominent objects of the parties
assembled. w o u l d g i v e a c e n t m o r e in a p o u n d for p o r k if tfc*
T h e first o p e n manifestation of t h e p u r p o s e w a s B a n k s h o u l d b e , t h a n if it s h o u l d n o t b e reel**1*
in J u n e , 1 8 2 9 , w h e n a c o n c e r t e d effort was m a d e t e r e d , t h e p r i c e of lands a n d t h e p r i c e o f crop1
b y t h e K x e c u t i v e officers t o i n t e r f e r e in t h e e l e c - c o n t i n u e d t o r i s e ; t h e p r o d u c t s of l a b o r w e r e i*H*
tion of t h e B o a r d of D i r e c t o r s at P o r t s m o u t h . "
a b u n d a n t ; e n t e r p r i s e Was m o r e rife* a n d erafcar
W h e n a n d w h e r e w a s t h i s m e e t i n g of " p r i n - r a s s m e n t in e v e r y k i n d of b u s i n e s s a n d ocCUp*
c i p a l c h i e f s " in t h e city of W a s h i n g t o n t o g e t tion, w a s less k n o w n t h r o u g h o u t t h e w h o l e W&
<* possession of t h e b a n k ? " T h e c h a r g e can be t h a n hud e v e r b e f o r e b e e n k n o w n . B u t agtfft
b u t t h e m e r e c o i n a g e of t h e b r a i n of o n e w h o s p t - a k i n g of t h e w e s t , t h e S e n a t o r c o n t i n u e s ;
h a d d o u b t l e s s often c o n s u l t e d t h e will of cither
" T o call in this loan at t h e r a t e of e i g h t mill****
** p r i n c i p a l c h i e f s " as a g u i d e t o w h a t s h o u l d be a y e a r , in addition t o i n t e r e s t vm t h e w h o l e * **J
his o w n c o u r s e o f action in f u t u r e " f a i r busi- t o t a k e a w a y at t h e s a m e t i m e , t h a t circulation
n e s s t r a n s a c t i o n s . ' * T o g i v e s u c h a c h a r g e e v e n w h i c h c o n s t i t u t e s so g r e a t a p o r t i o n of t h e m e d W
an :-ir o f probability* it o u g h t t o h a v e b e e n follow- of p a y m e n t t h r o u g h o u t t h a t w h o l e r e g i o n , is an dp&
e d b y s o m e c o n s e q u e n c e s of a m o r e m a r k e d official ration, w h i c h , h o w e v e r wisely c o n d u c t e d , cafllfc*
c h a r a c t e r t h a n l e t t e r s from M r . W o o d b u r y , t h e n not b u t inflict a b l o w on t h e c o m m u n i t y o f tremendo* 9
connected with the Cabinet, and myself, represent- f o r c e , a n d frightful c o n s e q u e n c e s . T h e thhtf




13
[ i V t i i e t b e d o n e without distress, bankruptcy, and discounted shall not b e increased at t h e bank and
the several offices.
P****pmany."
*' Rcsoived, T h a t the bills of e x c h a n g e purchasba*fc*e g l o o m y predictions of the Senator, alP^Nijrh t h e B a n k , throughout the west, having- en- ed at the b*nk and all the offices, e x c e p t the
^ e d t h e field as a competitor with General five western offices, shall not have more than six•^^"ekflon, p a t on the s c r e w s and attempted to ty days to run,
"Resolved, That the five western offices b e in^ * * i f y t h e m , n e v e r came to pass. But by taking
*^*>nger l i m e and drawing- a longer bow in antici- structed to purchase no bills of e x c h a n g e , e x Jr^%ion o f t h e removal of the deposites, the Bank c e p t those payable in the Atlantic cities, not ha^ ^ probably been able to p r o d u c e a temporary ving more than ninety days to run—or those
? ^ r a n g e m e n t in the commercial business of the which may be r e c e i v e d ia payment for existing
iJ^ljntry* has b e e n able to r e d u c e prices, aided by debts to the bank and the offices, and then not
f j * ^ reduction of prices in the foreign market; has having- more than four months to run.**
T n e s e resolutions w e r e adopted; wild afterLT^ated inconvenience to the w h o l e trading- comt*Hinity;and this, so far from being- an argument wards the imperious board adopting- them refusi *^ favor o f rechartering 1 the Bank, or restoring* the ed to consider another resolution offered by the
^ ^ p o s i t e s , proves that the p o w e r which m a y b e Government Directors instructing the committee
W e l d e d b y this monopoly o u g h t not to be intrust- on the state of the bank to report, at an early
^ i to t h e most pure and disinterested body of men day, a system for the ** gradual reduction o f the
*?** earth; much less to a s i n g l e individual, ac- business o f the institution throughout all sections
k n o w l e d g i n g no responsibility whatever to the of the country, having regard to the interests of
the stockholders, the debtors of the bank, and
^•ftople o r t o any tribunal of the p e o p l e .
the community in general***
Sir, t h e expansion of the currency of the Bank;
As the distress accumulates, the local Banks at
* Call its bills as well as its illegal drafts currency',
Philadelphia invite a conference with the directMthough a misnomer—the expansion of the cur^fency and d e b t s of the Bank nearly thirty mil- ors of the United States Rank to devise ways and
lions, just at the point of time when application is means to ease and relieve the money market.
V> be tnade to recharter the institution, was an T h e mammoth monopoly utterly refuses to unite
Expedient h i g h l y culpable, under the best possi- j in any such purpose! she has ten millions of s p e c i e
^*le a s p e c t o f the case; it was an expedient which : in her vaults $ more money, as the Senator from
^ould n o t b e justified e v e n had the Bank intend- Kentucky (Mr. Clay) said some time ago, than
e d t h e loans to b e made in g o o d faith, and she k n o w s what to do with. A s was graphically
**ever t o have curtailed them only w h e n the described by the Senator from N e w Jersey (Mr*
Circumstances o f the borrowers might favor an Frelinghuysen,) " T h e r e sits Mr. Biddle, in t h e
Presidency of the Bank, as culm as a summer's
^asy p a y m e n t .
T o me, sir, it is evident that this morning, with his directors around him, receiving
*tep w a s t a k e n for no other purpose than to cre- His salary, with every thing moving on harmoniousa t e that v e r y state of things which might enable ly.*' And y e t his Bank refuses to lift her hand for
^he B a n k t o force a recharter; to create an influ- the reiief of the distress she has herself produce n c e w h i c h should force out of public office eve- ed; nay, like the d o g in the manger, she not only
*y candidate w h o was k n o w n to be o p p o s e d to refuses reiief, but she holds all the other Banks
*he B a n k in a position which shall prevent their affording
T o p r o d u c e the most mischievous effects, the relief. T h e President of this Bank, in answer to
Almost distress, in making their curtailments—and a question propounded to him by the Committee
t h e s e curtailments not at the rate o f * 'eight millions on Finance o f the Senate in 1830, said,
"there
in a y e a r 0 — t h e reduction from the first of A u are very few Banks which might not have been defeust t o t h e first of January, w ts nearly thirteen stroyed by an exertion of the power of the
J3ank."
Millions o f dollars, or t w o millions and a half in a This power, it seems, he is now e x e r t i n g to its
laonth.
A n d h o w is the curtailment made? An greatest extent; and while he utterly refuses all
Entirely n e w system is simultaneously forced-on concert of action with other Banks for the relief
t h e c o u n t r y — a system arbitrary, partial, and un- of individual distress, he presses on the State
just, a d o p t e d without consultation with, and Banks till he forces them to cry to Congress, and
Without t h e k n o w l e d g e of business men—a sys- beg* for the restoration of the deposites.
t e m c a l c u l a t e d to circumvent, and p r o s t a t e in abAnd is it to be endured, that an institution,
j e c t d e p e n d e n c e on the bank all the merchants which for the term of eighteen years has had the
fcnd traders, and e x t e n d i n g even to the farmers of benefit of m o t e than six millions of permanent
the Great W e s t , Y e s , the w h o l e prosperous busi- government deposites—which has had a universal
ness of t h e country is designedly arrested and currency g i v e n to its notes, e v e n including its spusurprised by s t o p p i n g up its usual channels and rious drafts, by every where making them receivutterly c h a n g i n g its current, in a measure propos- able in payment for dues to the United States—
ed and a d o p t e d on the sama day by a conclave of which has done no service to the Government,
the directors of this bank at Philadelphia. T h e s e either in receiving-, paying out, or transferring
*re the resolutions, w h i c h it should be borne in money, that has not b e e n to her a source o f promind, w e r e adopted on the l o t h of Aug-ust, more fit—which has been secured from all taxation,
tj**n six w e e k s before the withdrawal of the de- both State and National, either of the mother
positee:
Bank or its branches—and which paid (or the mo§t
J&60ivedf
T h a t for t h e present, and until the nopoly alone o f being without a rival in the c o u n further o r d e r o f the board, the amount o f bills try, n o more than a million and a half of dollars;—




14
is it to b e e n d u r e d in this free country, that s u c h community for t h e p u r p o s e o f t r y i n g t h e **P**£
an institution shall crush all o t h e r m o n e y e d e s - m e n t o f a reaction o n t h e p u b l i c sentiment, am
tablishments—shall p r o d u c e consternation and not b e t o o strongly r e p r e h e n d e d ; an** l e t m e ttl|
distress—.shall assume t o argue with and dictate y o u , sir, that not only will this generation p*m
to t h e constituted authorities, and contest their s e n t e n c e o f condemnation on this Bank, b u t thi
right to manage the funds o f the G o v e r n m e n t as e x a m p l e will be a lasting beacon to g e n e r a t i o n
t h e y please ?
to c o m e , warning t h e m against an o d i o u s and M
Mr. President, I must again b e permitted to oppressive m o n e \ e d m o n o p o l y .
advert to t h e v e t o s p e e c h o f t h e Senator from
D o o m e d to " w i n d u p its c o n c e r n s , " (as t h e SeMassachusetts: he then s*i*l—
nator from Massachusetts has said it m u s t , ) why
«• T h e r e is no longer uny m y s t e r y , n o l o n g e r d o e s t h e Bank continue its efforts on our nations!
a contest b e t w e e n hope and fear, or b e t w e e n councils? W h y d o its a d v o c a t e s continue to
those prophets w h o predicted a veto and those beard that man w h o was c h o s e n b y t h e p e o p l e for
w h o foretold an approval. T h e bill is n e g a t i v e d ; the e x p r e s s p u r p o s e o f p u t t i n g an e n d to the
t h e President has assumed t h e responsibility o f charter? D o they think a restoration o f the dep u t t i n g an end to the Hank; and the country posites to the Bank that is about to e x p i r e could
must prepare itself to m e e t that c h a n g e in its he o f the least benefit? On t h e contrary, i\o they
concerns w h i c h the expiration of the charter not k n o w that the restoration, at this time, inwill produce.
•
#
•
T h e Hank has stead o f allaying, must increase the distress' D o
fallen, or is to fall.
they not k n o w that t h e B a n k has no longer a••It is now certain, that, W I T H O U T A right to claim t h e m ; that, according to t h e opinC I I A N G K IN OUIt IM7I1IJC C O U N C I L S , the ion o f many distinguished jurists, it has repeated*
Bank will not h e cmitjnue<1, nor will any other be ly violated its charter; and that if a scire facia*
established, which, according 1 to the g e n e r a ! s e n s e has not b e e n issued, it has not b e e n for want of
and language of mankind, can be entitled to t h e a m p l e cause for sustaining it? D o not t h e stock*
name. In three years ami nine months from t h e holders of this B a n k k n o w , that o f all persons
present moment, the* charter o f the Hank e x p i r e s : having a right to claim a recharter, t h e y are t h e
within that period, therefore, it must wind up its very last persons that should d o i t ? for if they be
concerns. It must call in its d e b t s , withdraw its of the i'aw American citizens w h o had o n c e this
bills from circul «tion, and cease from all its ordi- p r i v i l e g e , t h e y surely, on no principle, can claim
nary occupations*"
to exercise the same privilege a second time, to
T h e s p e e c h of the g e n t l e m a n , written out af- the exclusion o f all that numerous portion o f the
ter delivery, was circulated far and wide b y t h e P e o p l e w h o have never had a c h a n c e to procure
they
B a n k ; it was sent into the State I have t h e these benefits; and if they are foreigners,
honor to represent, by-horse-loads, and forced stand behind all others as to t h e right o f being
into every human d w e l l i n g w h e r e it w o u l d b e re- stockholders in a«iy B a n k \vh c h may s u c c e e d the
ceived. S o , I beli ve, it was circulated through- present.
out N e w Rngland, find in every part of the counT h e s p e e c h o f t h e g e n t l e m a n from Massachutry; steam-power printing: machines w e r e k e p t setts, made in J u l y , 1 8 3 2 , after the r e c e p t i o n of
in motion in Host on and Washington, that no vo- the veto, is in singular contrast with his recent
ter in the count l y * night doubt what was the point s p e e c h e s in the Senate. Tin; President and the
in issue. *I he Hank itself published this s p e e c h ad no nisi ration are now told that t h e y may as
as l v r manifesto—her dec titration of war against well g i v e in at o n c e , for that w e are to have "HO
ficncral Jackson. T h e e h c t i o n , by her choosing, r*ACK, nvT A sworn!," as l o n g as the funds o f
was p l a c - d on this as th^ turning point—the Hank the government shall be under the control o f the
o r Andrew Jackson; the Bank was hcati-u—NO Secretary of the 'treasury: w e must hare a law
SHAKOS favorable to it ** i * nun ptjuijc r o n x - for restoring the deposites to the Bunk.
Two
C I L S " was cflerfed.
T i n siihsecjuent elections years a g o , the language was " T h e B«nk has
,
in the Motive o f RrprcMM»atires in Congress, fallen•' U is now certain, that, without a
still further manifested the great majority o f tin c h a n g e in our public councils, t h e bank will
p e o p l e dectdt-dly opposed to the Hank. A n d not be continued, nor will another be established,
now what can the friends o f t h e Hank—what can which, according to t h e general sense and lanthe Hank itself, say in h< half of the prc*sthcy are g u a g e of mankind, can be entitled to the name:
m a k i n g on that very Congress which h:;s been re- tt must wind up its concern*."
There has been
turned to .second the views o f the President in re- no " change in the public c n u i i c l s " s-ncc the veto
Istion to thin institution? Has thr Hank any o f the President.
T h e Bank, on his own showright to complain that it now must d o what ing, has b e c o m e d e f u n c t . T h a t state of things
its great friend said it must do in
case of precisely has occurred which t h e gentleman had
t h e rt-election o f A n d r e w
u p its concerns >9* Kven i. J a c k s o n - •• wind represented as putt n g an end t o t h e Bank and
What
if it had done jus- all other hanks entitled to t h e name.
tice to the Government and to the p e o p l e — e v e n more can t h e Bank desire ? T h e T e o p l e was the
had it b e e n guilty o f no act contravening its d u - tribunal to w h i c h t h e Bank a p p e a l e d ; it was the
t y ; e v e n had it never d o n e t h e things w h i c n it tribunal o f the B a n k ' s choice. T h e decision was
o u g h t not to have done, and left u n d o n e those against the Bank. W a s it not sufficient that t h e
tilings which it o u g h t to have d o n e ; it w a s t h e Bank, to influence public opinion, resorted to
d u t / o f this Bank quietly to submit to t h e p u b l i c means unparalleled under this or any other go
<witf, w h e n so audibly e x p r e s s e d . T h e turpitude vernmentr Must this institution, in defiance o f
o f creating, b y articial means, distress on the the P e o p l e ' s decision, n o w 1 esort t o other and




15
i r e unjustifiable measures to force a recharter? t i o n s y c u please to any hill rechaFtering the Unithe Bank, according 1 to the Senator, will now ed States Bank, and if it shall not be perfectly
*"V-e the astonishing condescension, so the depo- convenient for such a board of directors as t h e
\$ shall be restored, to make *' fair concessions;** present t o violate them all with impunity, from
**furnish any and every guard against any what I have seen, I conld have no good reason to
k
\ t ^ e o f power;" to allow Congress to make the doubt that the bank might hereafter obtain just
* s t ** liberal modifications.'*
T h e s e conces- such modifications and concessions as the direcRenew
' r j g e o m e too late.
W h y did not the represen- tors shrill please to ask from Congress.
t a t i v e s of the Bank in Congress in 1832 make this charter, and the will of any future board of
| ^ * V i £ concessions? W h y w e r e all terms, not ac- directors will be law: renew it, and better will it
^ ^ ^ J e d to by the President of the Bank, then pre- be for the p e o p l e to have no Congress, no CJGo^ * > t , refused by the friends o f the Bank* W h y vernment, than such a Congress and such a Go^ « s t h e bill passed, perpetuating 1 the monopoly vernment as they may have.
i t s present hands on terms of millions of dol'ars
Sir, it has been boasted that t h e United States
^^^JB advantageous t o the P e o p l e than were Bank has produced such a currency during the
*^FVred by others?
W h y was this gratuity last fifteen years as is unequalled in the history of
l ^ ^ ^ s e n t e d to stockholders,
a large
portion currency.
More is due to the good management
|T*N whom
were foreigners—and denied
to of State Hanks, which in my section of the coun|L^fc>ers who were native citizens? L e t those who ' yy act on a systr m altogctl .er independent of that,
B e r r i e d through the charter in one branch without than to the United States Hank, for the healthy
iSL^ig'Bing'io answer the objections then made, and and equal state of the currency during the last
j ^ \ x O U g h the other branch by precluding all dis- twenty years. Gentlemen must be mistaken w h e n
t^*V*$$ion—let those answer w h y they would have they suppose that paper currency to be sound,
t v ^ y c e d on the people a moneyed monopoly on which is not redeemable with specie without conr ^ ^ t t e r terms than the monopolists themselves ask- tingency, in the vicinity of the place of issue.
V/*-l for! Let them account to the people why the T h e United Su tes Hank branch drafts, issued a
r * i l i was passed, giving to the present stockhold- thousand miles from the place where they arex
T
e r s gratuities for which other companies were wil- payable, if indeed ihey can be said to be pa} able at all, aie no better ent'tled to the ap4 * r > g to pzy millions? why it passed without secur* \ ^ to any State thai it should be pin
placed under the pellation of a *' sound currency, " than were t h e
*\g
tne control as the several State Banks? why no Treasury notes of the last war, which, t h o u g h
^
***** ^ . . . ^ . ^ v . , * ,
no *'l ; beral modifications,"bearing- an interest of six and seven per cent, w e r e
passed at a discount of tweiv.y and twenty-fire p e r
^ " e r e then offered?
T h e Bank* it is said, will make " fa=r conces- C'-nt.;and it may be soon discovered that U n i t e d
j \<>ns,** and will furnish guards against abuses, Let States Hank paper is no currency at all, if the S e J^: be c o n c e d e d that the bank shall be rcchartcred cretary c f the Treasury ^hall order, as h e legally
*^y the present Congress, under any modifications may do, that these branch drafts shall no longer
^"^-—let it now be understood that the bank has the he received in payment of debts due the U n i t e d
A ^ o w c r to frrce on the p e o p l e a re charter in defi- States.
^ t ^ c e of their expressed will—and Mho will underT h e stock of the Bank, at the time it was char* ^ k e hereafter to place bounds to the abuses of tered, was mode up as follows: the seven millions
^ViC institution? f l a i c not the directors of the subscribed by Government was paid by e n ating a
^ s t n k heretofore defied the stipulations of the stoek bearing five per cent, interest, which was
X^jjarter? Was not the charter notoriously r.nd re- received by the Hank at par, although it was then
TwentyX > e a t e d l y violated during the two first years of its really worth twenty-five per cent, less.
^ ^ t i s t e n c e ? Has the charter not been violated by one millions of private stock of the Bank w e r e
X ^ i e bank putting and k e e p i n g it. circulation mil paid in Government securities, six per cent, stocks
l i o n s o f paper, such »s was express!}' forbidden? being then worth in the market about eighty-four
• ^ s it not now violated by the practice of an irre- cents on the dollar. Only seven millions were re%-pons ble committee, without the consent of the qvdrcd to be paid in specie; and of this only one
Vfcoard of directors, loaning more than a million of million four hundred thousand ever wi s so paid.
*>ioney at a rate k ss than legal interest, and f o r T h e two subsequent payments of stock were
\±n indefinite time, to a single favorite, while the made, not in specie, but by raising the wind on
^Vvhole- community ^s pressed with its unparalleled the credit of the Hank stock from discounts in the
T^Ul'tailmentsf1*
Make what guards and restive- Bank itself. That the 1,400,000, taken from the
*'i here has buen a single loun n a i e to vaults of the local hanks, and adding nothing to
g l i o m a s Biddle, a broker and relative of the Presi- the amount of specie already in the country, c o m d e n t of the Bank, of eleven hundred thousand dol- pelled a specie payment of more than a hundred
o r s , at five per cent. T h e branch at N e w York millions of bank notes then in circulation, is altoIfttt-ly loaned to a single favorite house from 250>- gether incredible.
Corruption was rife in the Bank of the United
1)00 to 3 0 0 , 0 0 0 dollars; and it it said that twotfrirda of the discount;* of that branch would he States e v e n before the institution was well under
comprised in the accounts of less than thirty hou- way; and I regret to say, that, although the evil
ses.
T h e investigating commuter, in *1832, was smothered while the Bank was under Mr.
found, o f the whole loan at the mother Bank, ChevesVs administration, it has never been c o m »bout 8 , 0 0 0 , 0 0 0 of dollars, $ 5 , 4 3 4 , 1 1 1 was loan- pletely p u r g e d of the foul pollution.
e d to ninety-nine individuals* More than 3 , 0 0 0 , Before the Bank had g o n e fairly into oper0 0 0 w e r e in the hands of twenty-seven persons. ation, under severe embarrassment, it commenced.




10
curtailing its discounts. It curtailed* as it n o w t h e resolutions of the mother B a n k of the 13th Aud o e s , its best business paper, while immense gust, directing curtailment on a partial and ftlH
amounts loaned on t h e security o f stock p l e d g e s , trary principle, the blow o f "tremendous force aiM
w e r e suffered to remain in bank without curtail- frightful c o n s e q u e n c e s " ( p r e d i c t e d by the Senatel
from Massachusetts after the V e t o o f the P r e *
m e n t . Here was partiality and injustice.
T o enable the President and Directors t o spe- d e n t , ) must have b e e n felt with tenfold v e n g e a n c *
culate on the stock, an order w a s passed for tak- T h e n t h e cry at this session of Congress for reltd
ing1 stock .security on loans at par; and this order would have b e e n directed to the single point o f *
T h e screws in that case
was transcended by loaning1 on merely nominal renewal o f the charter.
security twenty-five p e r c e n t , to the stockholders, would have b e e n applied to the local banks, and
o v e r and above the par value. In this way, enor- to business men, w h o in their turn would hav<
m o u s and collusive speculations were made on operated on all in their custom or employ, com*
stock. T h e directors purchased when the stock pelling them to sign and present, fac .simile peti<
w a s low, and sold out after its price had b e e n en- tions and memorials, praying that the monopoly
h a n c e d by their own purchases. T h e then Presi- itself might be continued.
If the deposites had 1
d e n t was proved to have mndc some thirty or forty not b e e n withdrawn, the p o w e r o f the Bank to
thousand dollars in a single operation of this kind. produce distress must have been increased.
The
H e r e was prostitution of office, and treachery to Hank had taken measures to bring about a pres* u " public interests,
the
sure and embarrassment4 mid I run not now to beDividends w e r e made to delinquent stockhold- lieve that her disposition to do justice would have
e r s , w h o had notes discounted to the full pur value been greater with increased than with diminished
o f their stock.
means.
T h e withdrawal of the public deposites
Shares were divided in*o pareels, with fictitious at that time and under the peculiar circumstance*
owners, w h o gave powers of attorn* y to act, ena- will be the means of carrying into effect the will of
bling the nominal owners to evade the rule restrict- the p e o p l e in relation to the Hank: without the
ing1 a single stockholder to thirty votes: the per- removal at that time, the strong chance is, that the
sons thus voting wr re those w h o had the greatest public will, so audibly expressed in all the elecloans on s*ock; and thus those men w h o had vir- tions since the Hank charter was vt toed, would
tually no interest in the Hank, w e r e able to con- have been defeated by the immense means which
the Hank could bring into action against it.
trol it.
If pecuniary distress must attend the death
T h e s e are some of the abuses prior to the e x plosion of the Hank in 1819, gathered from the struggles of the bank, it will be encountered with
report o f an investigating committee of Congress, firmness by the patriots w h o have always l o o k e d
and which, had not the arm o f the Government dangers in the face and made great pecuniary
sustained it, must have put an end to the Hank. sacrifices when the g o o d o f the country required
Somewhat different have b e e n th<* measures of t h e m .
the directors within the last few years; but even
T o p r o v e th d the money pressure now exmore corrupt and corrupting has been its last than isting at the points where foreign importation*
its first estate.
are extensively made, p r e c e d e d and was more
T h e resumption of specie payments, and the J severe beyond than within the limits of the Unirestoration of the currency, was not d u e to the j t c < i States, and that of c o n s e q u e n c e it was not
B a n k of the United States, but was the natural i caused by a withdrawal o f the deposites from the
consequence of that wealth which was gained by United States Hank, I will recur to a summary
t h e industry o f the country. This industry, and extract from the Q u e b e c Gazette o f D e c e m b e r
its accumulation, soon furnished s p e c i e for t h e last, in an article on the c o m m e r c e and business
B a n k , and furnishing the means o f discharging o f F.ower Canada during t h e last year. T h e art h e public debt, enabled the IV nk gradually to ticle follows:
turn its stock into a specie capital, and likewise
" T h e depression in the m o n e y market in Caave to the country the means fin* redeeming the nada c o m m e n c e d as early as the first of August
undred millions of bank paper, which had vitiat- last. Several extensive failures at Montreal and
e d the curreuey from the suspension of specie pay- U n e b c c t o °1* place early last summer.
Kxchange
ments.
on Kngland for cash declined from 9J to 6 per
Instead of this Hank contributing to a sound cur- cent, premium.
T h e scarcity o f money was
rency, it n ay fearlessly be asserted, that the suc- such, (says the Q u e b e c Gazette) that in the latter
cessfulI enterprise and * "
* labor of the country, accu- part of the season business was not done to more
mnLiti ng wealt'i, had create*! a sound currciiry than one-fourth the usual amount. T h e number
in spite o f t h e bad management o f the Hank; for it of persons e n g a g e d in retailing dry goods, (says the
m u t t h . v c been evident to all w h o have watched same p a p e r , ) will b e considerably di mi nished durits course, that the tendency o f this bank, whether ing the next y e a r . "
it expanded or contracted its paper issues, has b e e n
In confirmation o f this statement, the circular
t o injure both the currency o f the country and from the house of II. Gates 8t Co. o f Mont rest*
t h e steady prosperity of the p e o p l e .
dated Jan. 1, 1834, says: ** W e very much reIVrmit me here, Mr. President, to say that I grct to say, that while w e have to record almost
differ from those w h o arc disposed to admit that unexampled distress and difficulty t h e year JMtft,
t h e removal o f the deposites, although necessarily w e s e e nothing in prospect for the vear to coflie,
t o take place previous to the expiration o f the char- calculated to raise h i g h h o p e s o f sale and profitter, was ill-timed in the month of October last. If able b u s i n e s s . " • * •• One great embarrasst h e deposites had not then b e e n removed, u n d e r m e n t in doing a heavy business In t h e year past

S




17
E ^ " * * ^ arisen from a s c a r c i t y o f m o n e y , a n d t h e ] m u s t n o w b e c o m e e v i d e n t t h a t t h e B a n k i n t h i t f ^ ^ u s e s o f thia s c a r c i t y s e e m l i k e l y t o c o n t i n u e at c i t y , a l t h o u g h it m a y h a v e r e p l e n i s h e d its v a u l t e
^ ^ f e ^ a t for some m o n t h s to c o m e . "
w i t h s p e c i e , b y r u n n i n g u p o n t h e local b a n k s ^
T h e N e w York J o u r n a l o f O o m m c r c e , n o t i c i n g h a s e x p e n d e d m u c h o f its s t r e n g t h b y pressingt o t h e 2 0 t h u p o n that c l a s s o f its c u s t o m e r s w h i c h f u r n i s h e d
L e contents o f Halifax n e w s p a p e r s
taj^" January, remarks, that t h e y c o m p l a i n o f threat its g r e a t e s t profit; and t h e c o n s e q u e n c e will b e r
w * ^ i &tfL as in the m o n e y m a r k e t in t h e B r i t i s h P r o . that t h e s e c u s t o m e r s will s e e k o t h e r a v e n u e s o f
2 ^ * n e e of Nova S c o t i a .
T h e A c a d i a n o f t h e 1 8 t h , a c c o m m o d a t i o n , and l e a v e t h e B a n k to t u r n it*.
^ X ^ j l d s the f o l l o w i n g l a n g u a g e :
" T h a t t h i s t o w n e x c l u s i v e a t t e n t i o n to t h e local b a n k s , t h r o u g h
at present i n v o l v e d in g r e a t d i s t r e s s , and t h a t w l v c h it d o u b t l e s s i n t e n d s to k e e p u p t h e distress?
> * t:»e merchants and t r a d e r s , a n d t h e c o m m u n i t y o f t h e w h o l e t r a d i n g c o m m u n i t y , a n d c o m p e l the:
• ^ ^ ^ l^rge, feel their inability t o m e e t t h e i r p e c u n i a - p e o p l e to a s k for a r e - c h a r t e r o f t h e m o n o p o l y .
^ ^ ^ e n g a g e m e n t s and p a y off t h e i r o u t s t a n d i n g
It is e v e n s u g g e s t e d that in t h i s p l a n o f making^ ^ ^ b t s , are fricts t o o c l e a r a n d s e l f - e v i d e n t t o re- i m o n e y s c a r c e t h e m a n a g e r s o f t h e B a n k h e r e m a y
^ ^ t i i r e either p r o o f or illustration. T h i s c a l a m i t y j h a v e a c t e d in c o n c e i t w i t h g r e a t s p e c u l a t o r s in
^ ^ s n o t confined t o a few i n d i v i d u a l s e n g a g e d in ! E u r o p e , s o m e o f w h o m are o w n e r s o f t h e B a n k
^ ^ m e particular b r a n c h o f trade, but a p p e a r s t o s t o c k , w i t h a v i e w to affect t h e p r i c e o f t h e cottonv
* ^ e g e n e r a l and a l m o s t u n i v e r s a l , "
A p u b l i c c r o p , a n d profit b y t h e f l u c t u a t i o n .
Certain it is*
^ r ^ e e t i n g was h e l d on t h e s u b j e c t , J a n u a r y 1 5 t h , at that t h e p r i c e o f c o t t o n first fell in E n g l a n d , a n d
^ s ^ r h i c h resolutions w e r e a d o p t e d . "
this b e f o r e t h e r e m o v a l o f t h e d e p o s i t e e .
In t h e W e s t I n d i e s t o o , t h e r e is a similar disIt is this p r e m e d i t a t e d d e s i g n o f t h e m a n a g e r s o r
"*%L.r^ss. A c o r r e s p o n d e n t o f t h e N o r f o l k B e a c o n , t h e B a n k of t h e U n i t e d S t a t e s to p r o d u c e d i s t r e s s
" V e n t i n g u-ider d a t e o f t h e 1 0 t h D e c e m b e r last, t o w h i c h that distress is d u e . T h a t t h e m a n a g e r s .
" ^ Y ° m St- B.-irts, s a y s : " T h e W e s t I n d i e s are n o w in t h e m s e l v e s nr,1 d i s a p p o i n t e d , in b e i n g u m b l e h i t h ^3s, d e p l o r a b l e s t a t e — p o v e r t y has o v e r t a k e n m a n y e r t o , t o m a k e t h e distress g e n e r a l , w e m a y w e l l .
* ^ i n c e y o u left h e r e , an 1 is m a k i n g rapid a n d q u i c k b e l i e v e . F o r t u n a t e it is to t h e c o u n t r y that it n e v e r
^-naTches upon m a n y o t h e r s . "
w a s in so g o o d a c o n d i t i o n g e n e r a l l y , t o e n c o u n t e r
In E n g l a n d l i k e w i s e , t h e p r e s s u r e for m o n e y this hostility o f t h e B a n k as at t h e p r e s e n t time^ i a s b e e n great.
T h e y t h e r e c a n h a v e n o c a u s e T h e a g r i c u l t u r i s t s every w h e r e this y e a r h a v e b e e n
^ o c o m p l a i n o f t h e w a n t o f a N a t i o n a l B a n k — f o r b l e s s e d w i t h an a b u n d a n t h a r v e s t : g e n e r a l l y t h e y
Tfcfreir great B u n k h a d j u s t b e e n r e - c h a r t e r e d .
A are i n d e b t e d t o no B a n k ; a n d e v e n s h o u l d t h e y b e
f r i e n d at the E a s t w a r d has f u r n i s h e d m e w i t h t h e u n a b l e to d i s p o s e of their p r o d u c e , t h e y c a n liver
^following e x t r a c t o f a l e t t e r from B a r i n g » B r o t h e r * , u p o n it t h e m s e l v e s , a n d furnish it for o t h e r s to l i v e
*&, C o . dated at L o n d o n , N o v e m b e r 2 2 , 1 8 3 3 : it u p o n , w i t h o u t a s k i n g favors from t h e m a n a g e r s o f
states—
the Bank.
But throughout the country their pro" T h a t t h e p r o m p t p a y m e n t s for t h e h e a v y d u c e c o m m a n d s t h e c a s h , and s u c h h i g h p r i c e s a s
-transactions o f A u g u s t h a v e c o m e r o u n d , p r o d u - a m p l y r e p a y s t h e toil of r e a r i n g .md g a t h e r i n g i t c i n g a g r e a t s c a r c i t y o f m o n e y in o u r colonial
B u t t h e r e a r e o t h e r c l a s s e s in s o m e p a r t s o f t h e
-trade, and w h i c h , w i t h t h e a t t e m p t s t o f o r c e s a l e s , c o u n t r y w h o f e e l t h e p r e s s u r e w h i c h t h e B a n k
have caused u general decline of p r i c e s . "
h:*s d e s i g n e d .
It is t h o s e m e n w h o h a v e traded,
Still later a c c o u n t s from G r e a t Britain r e p r e - b e y o n d t h e i r c a p i t a l , m a n y o f w h o m , b e i n g w a r n s e n t t h e m o n e y m a r k e t as m o r e ea&y, a n d that a e d in s e a s o n , w i l l s t r u g g l e t h r o u g h t h e difficultyrise h a d t a k e n p l a c e in t h e p r i c e o f c o t t o n .
O t h e r s w h o a r e reallv i n s o l v e n t , a n d w h o s e i n s o l It n e e d not b e d e n i e d or d i s g u i s e d , that t h e c u r - v e n c y has h i t h e r t o 1-een c o n c e a l e d , in t h e a b u n t a i l m e n t o f d i s c o u n t s by t h e B a n k o f t h e U n i t e d d a n c e o f p a p e r c r e d i t , m u s t fa'I a n d m a k e theirS t a t e s , b e t w e e n t h e first o f A u g u s t a n d t h e first b u n k r u p t c y a p p a r e n t .
It is, I b e l i e v e , this last
o f D e c e m b e r , b y w h i c h t h e p a y m e n t o f t e n mil- c l a s s p r i n c i p a l l y , w h i c h has as y e t suffered to a n y
l i o n s o f dollars w a s t h r o w n u p o n t h e c i t i e s o f e x t e n t m c o n s e q u e n c e o f t h e u n p a r d o n a b l e c o u r s e
Philadelphia, N e w York, and Boston, was calcula- pursued by the Bank.
W h e t h e r in any part o f t h e
t e d t o p r o d u c e d i s t r e s s ; this i m m e n s e a m o u n t w a s c o u n t r v o t h e r c l a s s e s m u s t suffer, remain* to be.
thrown upon those cities by stealth, the order of d e v e l o p e d .
A u g u s t 1 3 t h w h i c h p r o d u c e d it, h a v i n g b e e n k e p t
T h e i n d u c e m e n t s t o i n v e s t capital m d i f f e r e n l f r o m t h e p u b l i c until D e c e m b e r .
T h e rapid rail- e n t e r p r i s e s h a v e b e e n so g r e a t , that many m e n ,
i n g in o f t h e d e b t s o f t h e B a n k o f t h e U n i t e d t h o u g h t t o b e p r u d e n t , h a v e g o n e into trade u p o n
S t a t e s , p a y m e n t b e i n g m a d e in bills o f fche local c r e d i t , i n v e s t i n g t e n s a n d h u n d r e d s o f t h o u s a n d s m
hanks—for the circulation of the U n i t e d States manufacturing and other kinds of business. W h c t t
B a n k itself, w a s e x t e n d i n g instead o f c o n t r a c t i n g i n v e s t m e n t s are o n c e m a d e , t h e capita! n e c e s s a — d r e w t h e s p e c i e for t h e r e d e m p t i o n o f t h o s e ry t o b e u s e d i n c r e a s e s i n s t e a d o f d i m i n i s h i n g - F r e b i l l s o u t o f t h e local b a n k s , i n t o that o f t h e U n i - q u e n t l y it m a y h a p p e n that s u c h m e n s u c c e e d for a.
t e d S t a t e s and it* b r a n c h e s , s o t h a t t h e l o c a l b a n k s s e r i e s of y e a r s and lay u p f o r t u n e s . B u t m o r e frew e r e o b l i g e d t o curtail t h e i r c i r c u l a t i o n at t h e \ q u e n t l y / t h e result o f t h e w h o l e m a t t e r is i n s o l v e n same time.
A f r i e n d at B o s t o n informs m e that? c y , t h e a d v e n t u r e r sacrificing all h e w a s w o r t h o r i t h e b r a n c h b a n k at thut p l a c e h a s c u r t a i l e d t w o ! g i n a l l y , a n d m u c h « f w h a t h e lias o b t a i n e d o n c r e d i t thirds o f t h e a m o u n t d u e t o it in S e p t e m b e r last: ' T h e s e are t h e CHSCS t h a t b e c o m e o p e n a n d p a l p a i n d o i n g t h i s , it h a d c o m p e l l e d t h e l o c a l b a n k s o f b l e , e s p e c i a l l y w h e n f r o m t h e c o n t r a c t i o n o f p a p e r
t h e c i t y t o curtail from five t o s e v e n millions o f i s s u e s , after a h i g h d e g r e e o f c o m m e r c i a l p r o s p e r i »
their loans.
T h i s , a s w i l l h a v e b e e n p e r c e i v e d , ty, t h e r e shall b e a r e v u l s i o n in b u s i n e s s : s u c h a r e
must have made the pressure very severe.
It the cases w h i c h are n o w t h e foundation o f t h e pa-




18
As an addition t o t h e calamitous state of t h i n g
nic which is made so m u c h of by t h e friends of the
Bank* Alarms of this kind a r e always to h e dread- anticipated from t h e g r e a t commercial c i t i e s , |f
e d : nevertheless, it must b e admitted t h a t their the deposites shall not be restored, a n d t h e ttanfc
c h a r t e r r e n e w e d , the Senator from Massachusetts
jefFectsare sometimes salutary.*
(Mr. W e b s t e r ) says, the town of N e w Bedford*
* F r o m the late r e p o r t of a N e w York commit- in that State, has been smitten by tlv* recent
t e e of merchants on t h e causes of the destruction events; that t h r e e months ago It was in a high
•of credit and confidence, and consequent com- state of prosperity; b u t that it has r e c e i v e d *
mercial distress, t h e following" is quoted. It p r e sents facts and illustrations which it will b e diffi- confidence among merchants is s h a k e n , a n d 3
c u l t f>r t h e friends of t h e United States Hank to p e r cent, a month is offered for t h e d i s c o u n t of
$r*i nsav:
promissory notes which a little while a g o were
* In -die first eighteen months of its existence, considered a* good as old gold, and whose maker*
*
namely, during" the year 1817 and part of 1818, have not sin:c suffered any lo-svs to r e n d e r their
t i i e B a r . l t of the U n i t e d Slates, t h r o u g h its nu- notes less valuable than h e r e t o f o r e , " F o u r month*
m e r o u s branches, h a d issued, according to the | afterwards, August 7th, 1819, t h e s:irne journal
r e p o r t of Mr. Chcves. noles to MI eiv,rmous says, " i t is estimated that t h e r e are 20,000 peramount. Its discounts in this short period, :d- . sons daily seal: ing work in Philadelphia; in NeV
t h o u g h t h e specie part of its capital was hardly [ York 10,000 aide bo lied men are said to De wan*
t w o m d i o n s , e x c e e d e d forty-three millions of| d e r i n g about the streets looking for it, and if we
dollars. Kvery d e p a r t m e n t of business, and spe- j add to th;*mthe women who tie.- ire something 1 to
culation, and living, was, as a necessary conse- i do, the amoum: cannot be less than 20,000.'* A
t j u e n c e , stimulated to the utmost; costly mansions >.
comsrnttce a p p o i n t e d by a meeting of t h e citiw e r e erected, and adorned with the most cxpen- \ zens of Philadelphia on t h e 21st August, 1 8 1 9 , to
•We furniture; sumptuous entertainments w e r e inquire into the situation of the m a n u f a c t u r e r s of
g i v e n , and splendid e q u i p a g e s were set u p . And the'city and hs vicinity, r e p o r t e d on t h e 2 d of
e v e r y man seemed to imagine that because credit* October, that of thirty mechanical and manufacw e r e abundant, riches m u s t e q u a d v abound. T h e turing 1 branches of trade, which they enumerated*
prodigality and waste of s.mie of our citizens w e r e which gave employment to 918S persons in I S 14,
Almost beyond belief. ' IV e l u r e heard,* *ays and to'9672 in 1816, t l u v e were but 2137 pert h e W e e k l y Register of 1819, < th;d the furniture sons employed in 1819.
o f a single parlor, possessed by, we cannot say
" H e r e then w e have a case of former days, preb e l o n g i n g to, one individual, (who afterwurds bec a m e b a n k r u p t , ) cost forty thousand dollars.* In cisely so far as the effects of moneyed c r e d i t s is
t h i s way, according to the views of those who concerned, analogous to t h e p r e s e n t . As more
l o o k e d only at the surface, the country enjoyed a recently in 1831, so in 1817, t h e flood g a t e s of
fltate of * unexampled prosperity.' A n d wb.it circulation had been o p e n e d wide, a scene of unw i t h o u t any * removal of deposites* was the se- exampled prosperity as it seemed ^ b u t of delusive
q u e l of this previously brilliint drama> ./I n « W l l l , M i a , l o n a s u reall.V " " " • «n««ed.
T h e day of contraction, however, a* w e have
curtailment
of discount* teas commenced*
fYte
southern and western offices rvcrc directed not to is- j seen, soon c a n e - t l v order for that puroose w a s
l u e their notes/ the Hank ceased to purchase and issued from Philadelphia on t h e 20th July, 1818,
collect exchange* on the south and wext,- and the and b y t h e 1st of April following'the curtailments
local institution •; were called upon to pat/ up theirJ had ammintc d to t h e immense s:Tm of $ 6 , 5 3 0 , 1 5 9 .
balances.
[And what then b e c a m e of t h e u n e x a m p l e d pros" T h e s e ? measures, according to the r e p o r t of • perity, about which, t h e n , as now, so much has
!C
its t h e n President, Mr- Cheves, simple and obvi- I been said. Uc-ing- a m e r e phantom it vanished, as
ipie
o u s &s they are, and some of them so s t r a n g l e ; we have seen, in an instant, and universal ruin a n d
o v e r l o o k e d so long, lifted the Bank, in the short : dismay follow in its footsteps. T h e community
* p a c e of seventy days, f r 0 m t he e x t r e m e o r pros- | then siiw, and 11 It, as t h e y now feel, without seetration to a state of safl ty, and even, in d e c r e e of iru^ :\m\ of course, without acknowledging' t h a t
p a p e r money, like dtvim drinking-, relieves for t h e
p o w e r ; and en:ihle<l it to defy ail attacks. '
** T h e H a n k , " observes a judicious commenta- moment by t h e deceitful sensation it c r e a t e s ; lult
t o r on this statement, " was saved, and tlu- Peo- gradually exhausting- t h e natural heat, leaves t h e
p l e were r u i n e d . " For a time, the question eve- body at length in a worse state than it found it.
*' W e have the authority of the printed stater y m o r n u u , was, not who h:ul b r o k e n tie- previous day, but Who yet stood—suit., warrants, ment, laid before the stockholders by t h e i r then
mnd executions took place of bank cr diU. President, for saving that durimr :di this time
P
Iv»^rf\
? ' ' U o f t h ' : C ( » ' » t r y / * says the W e e k - (1817, M8 An 1 '19,) the Hank h i d t h e advantage
ly Register of April 10, 1819, - w e hear of a se- of immense g o v e r n m e n t depositee—that at t h e
v e r e pressure on men in business, a general ,., fl ^- very moment when the curtailments were o r d e r e d ,
" t h e £*overiimL*nt depositc s in the Hank a u d i t s
£ « n l ^
> h " Price of branches amounted to tight mil/to?^ of dollar*."
staple article*. Tleal p r o p e r t y is rapidly d e p r e ** If, then, l\io pissexsiin v£ t h e deposltes did
ciating in its n o m i n e value and its rents or profits not p r e v e n t the contraction and coiiFeqiu-iit ruin
s r e exceed.ngly dim.niahhur.
Many hiirhly re- in 1819, why should t h e removal of m e deposits
spectable-traders l i a v e h e c o m e b a n k r u p t s ; and it be t h e ciuise, u n d e r precisely similar cSrcumstaft*
is a g r e e d tha+ many others must g o : the Hanks ces, of t h e contraction a n d ruin of 1 8 3 4 . "
* r e refusing their customary accommodations,




19
blowy i n n u m e r o u s failures, from w h i c h it c a n n o t j t h a t c r e d i t in making* investments for t h e w h a l e
aoon; r e c o v e r .
fishery—some
t e n , fifteen, t w e n t y , and u p to a
K o w 9 w h a t d o e s t h e g e n t l e m a n m e a n b y " r e - h u n d r e d or m o r e thousand dollars. T h e i r calcuc e n t e v e n t * ' " Referring- t o w h a t he h a d before said, lation was, as if money never would be scarce,
t h e s e r e c e n t e v e n t s m u s t h a v e b e e n i n t e n d e d to that t h e y m i g h t always get money at one b a n k to
mean t h e w i t h d r a w a l of t h e daposites from t h e [pay t h e i r d e b t at a n o t h e r b a n k , until some t h r e e
United States B a n k .
years h e n c e their ships would r e t u r n . A n a t u r a l
T h e N o r t h A m e r i c a n R e v i e w of t h e 1st of J a n u - c o n s e q u e n c e is, that w h e n e v e r fictitious c r e d i t is
ary, 1 8 3 4 , has an interesting' article on t h e s u b j e c t b r o u g h t b a c k to a state of solidity, those wh® neof t h e w h a l e fishery J said t o h a v e b e e n written by gotiate loans in t h e way described, fail in obtaina g e n t l e m a n of N e w B e d f o r d , (Mr. W i l l i a m s , ) i n g m e a n s to m e e t their payments. F r o m this
w h i c h p r e s e n t s t h e m o r e rational account of w h a t cause a portion of t h e N e w ' B e d f o r d merchant*
h a s s m i t t e n that t o w n . It is o v e r t r a d i n g .
W a t e r e n g a g e d in t h e whale fishery have faded—not esd o e s not m o r e n a t u r a l l y seek its level, than d o e s pecially b e c a u s e t h e deposites h a v e b e e n withr e v u l s i o n s u c c e e d t h a t h i g h state of p r o s p e r i t y d r a w n from t h e H a n k of t h e U n i t e d States, for
f o u n d e d o n fictitious c r e d i t , c a r r i e d by e n t e r p r i s e t h e r e is no b r a n c h of t h e b a n k near N e w Bedford, b u t b e c a u s e t h e y have not t h e means to
b e y o n d i's t r u e point.
I t is w e l l k n o w n t h a t within t h e last few years,in pay their d e b t s , a n d because t h e *' s h r e w d e s t
c o n s e q u e n c e of t h e g r e a t success t h a t had attend- merchants'* u n d e r s t a n d that their p r o s p e c t i v e
ed t h e w h a l e fishery from N a n t u c k e t and N e w means cannot b e c o m e available.
Bedford, and, w h i c h h a d given t h e latter p l a c e , d e I t is b u t a few years since—I believe 1824,
p e n d i n g on n o interior t r a d e , a g r o w t h a l t o g e t h e r , that t h e t w o N a n t u c k e t b a n k s s u s p e n d e d payu n e x a m p l e d in a n y o t h e r m e r e l y commercial town j m e n t s on a c c o u n t of having- loaned a l a r g e p a r t
of t h e U n i t e d S t a t e s , t h e r e h a d b e e n a rushing of J of t h e i r capital to whaler*: t h e s e b a n k s w e r e
capital t o i n v e s t m e n t s in t h e business of t h e whale [ o b l i g e d to t a k e in p a y m e n t for their d e b t s
fishery.
A s in e v e r y t h i n g else, c r e d i ' , as well as whale and s p e r m oil a n d spermaceti candles, and
capital, w a s e x t e n d e d t o p u s h their business. T h e ' h a d their agents to still t h e m in t h e various com*
ordinary t i m e after d e p a r t u r e before t h e ships can j mercial t o w n s , a n d t h e y c o m m e n c e d r e d e e m i n g
r e t u r n f r o m distant w h a l i n g voyages, is t w o and their notes, w h e n t h e y h a d sold t h e i r m e r c h a n t h r e e y e a r s ; of c o u r s e , those who e m b a r k in t h e . dise. A t t h a t time it may b e recollected t h a t a p o r t r a d e , for t h a t t i m e lie o u t of their investments.
tion of t h e N a n t u c k e t whalemen w e r e r u i n e d ,
A l t h o u g h t h e whale fisheries have e x t e n d e d to yet t h e n no depositee w e r e w i t h d r a w n from t h e
s e v e r a l p o r t s from w h e n c e t h e business had n e v e r Bank of t h e U n i t e d States*
been c a r r i e d on before, y e t t h e p r o p o r t i o n a t e inT h e r e wus g r e a t p e c u n i a r y distress in t h e
c r e a s e h a s p r o b a b l y b e e n g r e a t e r in N e w Bedford town of L o w e l l a b o u t t w o y e a r s a g o .
The
than a n y w h e r e else. T h e N o r t h American lie-] town s c c m c J to h a v e b e e n *c s m i t t e n , " as t h e
y i e w g i v e s , **as d e r i v e d from a u t h e n t i c s o u r c e s , " j t o w n of N e w Bedford is n o w . T h e reason was,
t h e e s t i m a t e that t h e w h o l e n u m b e r of ships em- i t h e r e had b e e n e n o r m o u s speculations in buildp l o y e d in t h e w h a l e fishery in t h e U n i t e d States, j ings and building lots, anticipating t h e g r o w t h
IS 3 9 2 ; o f w h i c h i S i , nearly one-half, b e l o n g t o ! of tiiat flourishing town. T h e p r o p e r t y , accelet h e s i n g l e district of N e w Bedford.
T h e Review r a t e d in p r i c e at each successive c h a n g e , passed from h a n d to h a n d , till most of t h e speculacontinues—
**It w o u l d s e e m to b e impossible t o s t r e t c h t h e : tors, h a v i n g really little foundation, w h o h a d not
b u s i n e s s t o a n y g r e a t e r e x t e n t from this c o u n t r y . early r e t i r e d from t h e contest, w e r e b r o u g h t u p
In 1 8 2 4 , too great a supply of sperm oil produced I at t h e same t i m e . T h e b a n k s w o u l d not discount
to
a ruinous depression of prIces, but the dv. man A was I t h e m ; and t h u s t h e b u b b l e burst. L o w e l l was
still t h o u g h t t o w a r r a n t a steady and gradual in- | " s m i t t e n , " a n d has n o t y e t entirely recovei'ed.
c r e a s e of t h e s p e r m whale fishery*
The ca/culu- ' As well may w e c h a r g e t h e fall of p r o p e r t y and
lion is now* however, considered by 4 he shrewdest I t h e distress at L o w e l l to t h e withdrawal of t h e
merchants
to have been too sanguine, and theif al- deposites wh^ch was to t a k e place t w o years afterready begin- to an Help ate the reverse.
T h e m ar k e t s i wards, as n o w to c h a r g e the e m b a r r a s s m e n t s at
for c o m m o n w h a l e oil are now p r e c a r i o u s .
T h e y j N e w Bedford to t h e same s o u r c e .
fluctuate
w i t h t h e foi t u n e s of t h e G r e e n l a n d fisheT o increase a n d s p r e a d wide as possible t h e
r y a n d p r i c e s a r e m o r e or less d e p e n d e n t on t h e panic at t h e precise m o m e n t w h e n t h e r e c h a r t e r c r o p s a n d m a n u f a c t u r e of t h e v e g e t a b l e oil in ing of t h e B a n k is to be p r e s s e d on Congress, a
fiui-ope,
W h i l e t h e increase or d e c r e a s e , t h e r e - c o n c e r t e d m o v e m e n t is m a d e by the g r e a t m a u u fore o f t h e s p e r m whale- fishery o u g h t to d e p e n d j f a c t u m g capitalists at t h e K;*st. N o t i c e was
OU s o m e w h a t certain calculations, t h e r i g h t whale sometime s ; n c e given at L o w e l l , Massachusetts,
fishery m u s t f l u c t u a t e with c i r c u m s t a n c e s / '
that t h e p r i c e paid for labor would be r e d u c e d on
T h e p r i c e s of s p e r m oil a n d s p e r m a c e t i can- the first of March from fif een t o twenty-five p e r
d l e s a r e n o w as high as e v e r t h e y wt-re; h u t t h e c e n t : similar notices are given at Nashua a n d Dover
r a g e for i n v e s t m e n t s in t h e whale fishery has in N e w H a m p s h i r e . In o t h e r p l a c e s it is notified
b r o u g h t t h e N e w Bedford m e r c h a n t s t o a s u d d e n that t h e factories are a b o u t to b e s t o p p e d , and it is
•topT h e m e r c h a n t s in that t o w n w h o have re- mentioned in t h e n e w s p a p e r s that one large factocently failed in business—and some of t h e m per- ry, whose stock is u n d e r s t o o d to be controlled by
haps a l r e a d y insolvent, b u t w h o s e deficiency Philadelphia o w n e r s , has b e e n strpped* a n d t h e
Would n o t a p p e a r w h i l e t h e r e w a s a b u n d a n c e of hands dismissed, a t N e w M a r k e t , N e w H a m p s h i r e .
p a p e r c r e d i t — h a v e g o n e to t h e w h o l e e x t e n t of I Other n e w s p a p e r s , in t h e confidence of t h e own-




so
ers, threaten that other factories are to be stopped. than the opposite course, which they now are pur*
T h e reason now assigned for reducing* wages and suing. This, however, does not seem likely tote
Stopping work is, that the removal of the depositee the case from present appearances. Recent adtv
prevents the sale of the goods manufactured! For ces from the city of N e w York, leave us to wifef
a year previous to the removal of the deposites, that the Bank has determined w e shall not ** HAti
there was the same talk of stopping the factories; PEACE, B U T THE S W O R I ) . " T h e directors of the
and several of them were stopped. T h e reason branch bank at that place have not only refused to
then was, the high price of cotton—but now, tlmt unite with the local banks in attempting to relieve
cotton has fallen from twenty and eighteen to the distresses of the community, but they have retwelve and ten cents, a different reason must be fused to have it understood that they will not run
assigned.
upon the State Banks for specie the moment these
T h e truth is, that the large manufacturing capi- last shall discount for the purpose of relieving intalists have been quite too much in the habit of dividuals; and these directors assign for thtrir belsporting with the fears of the community; and as a ligerent aspect the reason of their peculiar relabody, they have shown themselves much too sub- tions at this time with the Government! Those
servient to the views of the leaders of a political peculiar relations we are left to infer; and these we
party to leave them the weight to which other- may safely say to he a determination to force the
wise they might b - entitled. W h y is it, that they return of the deposites, and with that a recharter*
are constantly in the field? W h y arc they at eve- ing of the Bank. Indeed we have it announcedip
ry session of Congress aiding in some new project the known organ of the Bank (the National Intelliofalaim* Let as many of them stop their works j gencer) in this city, that the liank will never conas choose to do it. Suppose half of them, that sent either to iake any steps for the relief of the
portion of them that prefer * war, p stilence, and community itself, or suffer the State Banks to do
*
famine," to the natural and quiet death of a mo- it, until the State Banks selected by the Secretary
neyed corporation, that assumes to be more pow- of the Treasury as places of deposite, shall themerful, with the means of the Government, than the selves ask to have the deposites taken from thetOi
Government itself, shall shut down their gates and and restored to the United States Bank! Here
stop their machinery; that other portion who the People and the State Banks have their choice
mind their own business, and pursue the even of the only alternative. T h e State Banks mitf*
tenor of their way, will, in the course of six months be destroyed, and the distress must be kept up, 90
or a year, be more prosperous than they Have ever long as the means to clo it can be furnished by the
before been, and will have no reason to regret the Bank of the United States; or else the GoTernfolly of such as change their purposes at every ment, the People, and the State Ranks, must conturn of the wind*
sent to U N C O N D I T I O N A L S U B M I S S I O N and
If there be already too many manufactories for D E G R A D A T I O N ! Tins looks so much like the
the market, why have capitalists up to the present conditions and requirements of a certain N e w Engmoment invested millions in new establishments? land conclave twenty years ago, who sent a mi»Experience has shown that in this country there sion to Mr. Madison, demanding of the Governcannot be too much agriculture: when lias there ment to submit unconditionally to such terms <rf
been a season producing more wheat, or sugar, or peace as Great Britain might grant, that I bare
cotton, or wool, than could find a market? T h e about as much faith that the one will be attended
price of these articles, in different seasons, fluctu- with success as the other.
ates more or less; but rarely d o t s it happen that
I readily and freely admit, that in the vicinity of
the price does not more than cover the expense. the mother Bank and its branches, more than comIf manufactures may not succeed in this country, mon pecuniary distress does now prevail. There
under all the encouragement the Government has they have put on the screws; and where the Bank
afforded, and is continuing to them, there is ample had made extensive loans, the pressure is felt—
room for investments in agricultural and other en- where the people have been so fortunate as never
terprises. Not the W e s t alone, the growth of to have had *the benefits of the Bank's capital,
which during the lust twenty, and especially, du- there is very little distress. It is the extension of
ring the last ten years, has been without a parallel; leans and their sudden contraction which produce
pot the West alone, opens the exclusive field for revulsions in trade—it is the facilities of credit
improvement. T h e hard soil of the Eastern States, suddenly caught up that cause the distress. That
improved already perhaps beyond any other sec- the Bunk can expand or contract—that it can at
tion of the country, is capable of more than doub- any time make money plenty or scarce where itling or trebling-its agricultural products; and the has an extensive operating capital, or wherever it
most Northeastern State, in its Immense forests of can concentrate its operations, is true; and being
valuable pine timber, presents scarcely less tempta- true, furnishes the strong conclusive reason why I
tions to the man of enterprise, than the other more would never place the power again in its hand**
luxuriant sods of the South and West.
With the strong expression of the people against
Mr. President, there never was a time more pro- the Bank, manifested in the triumphant election of
pitious than the present for the Bank of the Uni- Gen* Jackson, 1 should consider myself a traitor to
ted States to commence the » winding up of its that people, now to vote in favor of continuing the
concerns." If the directors of the Bank under- odious monopoly. Wherever there is a branch of
stood the true interests of the institution, they this Bank, there w e find an attempt to oppresswould commence the work with alacriiy; and they i v e r since the Hegira of Mr* Btddle's attorn*/*
would find that a course of mildness and accommo-! agent from N e w Hampshire, the business o f tha
dation would be far more salutary to the Bank Branch in that State has been small: from 1829 t*




21
1830, the branch did not do sufficient business to | in whicli the farmer, mechanic, and the great mass
pay the salaries of its officers—that is, the amount of the people, felt themselves more independent
of interest on its loans was not enough to pay the than they do at this time. T h e most of the people
salaries of its President, Cashier,clerks and waiters. have their debts paid, and cash in their pockets.
But t h e little branch there, is contributing its mite The markets are good; every thing that the farto d o what the parent Bank requires. A recent mer has to dispose of fi.nls a ready market, with a
letter from an intelligent gentleman at that place (price sufficient to satisfy every reasonable per[son. T h e products of the country are at this
•ays:—
**You k n o w my great desire is, that the monster moment teaming to m a r k t t in great abundance,
which has so long held the purse strings of the na- and have been for some time, upon our good
tion should be prostrated, and no longer be per- sleighing, of which we have had abundance this
mitted to tyrannise over other moneyed institutions. winter. Pork sells from 7 to 8 cents—buttei from
T h e monster ses:ms however, determined to die I 16 to 18 cents—cheese from 8 to 10—beef from 5
hard, and do all the mischief in its power before it | to 6 dollars per hundred. From this, you will
expires, putting on the screws with ail its might. I perceive that the pressure upon this section of the
E v e n the little branch here is doing all it can to country is not severe.*'
** make the people feel," as they term it, by withI believe throughout New England the condiholding discounts and getting hold of the bills of tion of the people is as it is in New Hampshire.
the State banks in this town, und holding them in T h e reduction of prices in Europe may have had
a menacing attitude, preventing our discounting to some effect in a few places. 1 have a letter from
the extent we otherwise could.'*
Salem, Massachusetts, dated on the 15th January,
In the interior of the State, among the muss of which says—
the people, but little pressure is f-It. The larger
• ' T h e Biddle screws are not severely felt in
portion of these people are men who never ask for Salem, although ours is a trading and commercial
a bank favor—who rely at all times on their own community; and the only way in which they can
resources, and who of course would prefer a be brought to bear on the interests of the Salem
hard money currency to any other currency.— merchants, is through their agents in the great
They do not believe that United States Bank notes cities. There are eight Bunks in Salem, and
a r e any better as a currency than their own State they sustain the trade at the legal rate of interBank notes; and gladly would they see the flood est, six per cent. W h e r e there is a branch of
of paper circulation superseded by silver an 1 gold. the United States Bank, there will be a pressure.
Another letter, dated Jan. 21, 1834, from the But one merchant has faded in Salem since Ausecond manufacturing town in the State, situated gust lust, and the United States Bank did not afon the Merrimack river, forty miles from Boston fect him in his business.
—and the manufacturing towns are the first in the
*' I sent you some dnys since, the annual returns of all the Banks in Massachusetts; the capinterior to feel a money pressure—says—
**It is wonderful that the attempts made by the ital of these Banks exceeds twenty-eight millions
Sopposition to produce a panic should not have of dollars. Our currency in New England, as
^ c a u s e d more extended ruin, A few failures may you well know, has long been well established,
-have h a p p e n e d in the seaports, but they have only and uniform without the aid of the Bank of the
been hastened a few weeks or months, and not United States. In fact, in New England the
caused* If there bad been the extensive pres- Bank of the United States does nothing in aid of
sure a n d distress we hear spoken of, it must, one the currency; their notes over five dollars are of" would think, have extended itself to this place ten at a discount, while the country Bank notes
and its vicinity. There is no special pressure have been current at par; receivable at the Banks
here- T h e r e is no depreciation of prices, though J in Boston, and of course in every part of the
our m a r k e t is regulated, in a great measure, by I New England States. Neither do the Sew Engt h e Boston market, and though the sleigh-ng has; land States need the United States Bank for capi*r been such *s to afford the greatest facilities for tal: their own Banks can supply the wants of
carrying produce to the markets. Hay is here tride, and answer all the purposes of transmission
' from £15 to $ 1 6 per ton. It is, I am informed, ] to or from different parts of the country* The
from $ 2 0 to $22 at Lowell [fifteen miles distant.] j United States Bank has!] realized a very large
' W o o d is $ 4 p e r cord here, which is higher than J amount for premiums on inland bills of ex*
* those most skilled in the market calculated it change/*
' would b e last summer. I was told, a day or two
Second Day—Tdesday, Afxrch 4.
since, that p o r k ha I just taken a rise (to use a
common phrase) and was higher than it has been
Mr. HIIJL, continued:
during* t h e winter or fall. W h e r e is this pressure ?
On yesterday i examined the report of the Com* TYe feel it not. W e hear of it, however, and mittee on Finance, and attempted to show that
shrieked iorth in such lugubrious tones, that I neither the facts nor the inferences of that report
marvel business should go on here, as it does, in were sufficient to invalidate the reasons of the Sethe e v e n tenor of its way."
cretary of the Treasury for the removal of the
Another letter, from one of the best informed deposites.
farmers——and none are more intelligent and shrewd
T attempl ed to show that the allegation is untrue,
than formers in New Hampshire—living nearly that efforts are making to array the prejudices of
central in the State, dated so late as the 17th Feb- the poor against the »vVA,to the injury of the Bank,
ruary, »»y*—
I 1 attempted to show that one o t t h e present fast
• i T h e r e never was a time, since I can recollect, | and influential friends of the Bank presented,




22
f o u r t e e n y e a r s a g o , s u c h a n a r r a y of facts a n d In- j fial distress, w i t h t h e e x e r c i s e of t h e b e s t disporf 1
f e r e n c e s as * l e m o n s t r a t e m o s t clearly, t h a t t h o s e tion on t h e p a r t of t h e B a n k .
I h a v e s h o w n , t h a t in N e w E n g l a n d , t h e SOU»4
who then opposed and now support the Bank,
state of t h e c u r r e n c y is not at all d e p e n d e n t on tBfe
a r e c o n d e m n e d from t h e i r o w n m o u t h s .
I a t t e m p t e d t o s h o w t h a t t h e p r e s e n t p a r t y o p - U n i t e d S t a t e s B a n k — t h a t t h e local h a n k s t h e r t
1 have also shown t h a t tht
p o s e d to t h e administration, h a v e for a long* time r e g u l a t e t h e c u r r e n c y .
ht:en p a n i c - m a k e r s , w h e n e v e r , o u t of p l a c e and prices of t h e farmer** p r o d u c e have t h e r e been
p o w e r , t h e y c o u l d i n v e n t a n y p l a u s i b l e p r e t e x t h i g h e r within t h e lavt t w o m o n t h s than t h e y have
been at a r y corresponding- p e r i o d for s e v e r a l year*
for c r e a t i n g e x c i t e m e n t .
1
1 a t t e m p t e d t o s h o w t h a t t h e B r a n c h B a n k in — t h a t w i n r e t h e r e has b e e n n o overtrading , ther*
N e w H a m p s h i r e , in 1829, and p r e v i o u s , ph*ycd is no u n c o m m o n p e c u n i a r y distress; a n d that the
t h e same jiame of c x p a n r i o n a n d c u r t a i l m e n t thnt gfreat mass of t h e c o m m u n i t v are b e t t e r off in *
is now play ng* b y t h e m o t h e r B a n k a n d its p e c u n i a r y point of v i e w tlmn t h e y h a d before
b r a n d i e s in all parts of t h e U n i t e d S t a t e s ; a n d that b e e n for irvuvy years.
a l t h o u g h it s u c c e e d e d in bringing* ruin on some,
T h e s e , M r . P r e s i d e n t , a r e some cf t h e point*
it failed t o m a k e iiself p o p u l a r or a c c e p t a b l e to which I on y e s t e r d a y a t t e m p t e d to establish. I
t h e p e o p l e of N e w H a m p s h i r e .
r e g r e t not to h a v e b e e n a b l e to finish m y remark*
I c h a l l e n g e d t h e proof to t h e c h a r g e m a d e by t h e n c o m m e n c e d .
If m y o w n s t r e n g t h , laboring
t h e D i r e c t o r s of t h e B a n k in t h e i r publication u n d e r indisposition of h ^ d y , h a d not b e e n exof "December last t h a t t h e •' p r i n c i p a l t h i e f s " of h a u s t e d , I k n o w t h a t a l o n g s p e e c h , exhibiting" VO
t h e administration h a d a meeting" in this city in g r a c e s of o r a t o r y , a n d a d v e r t i n g to facts which
1829, for t h e p u r p o s e of c o n c e r t i n g m e a s u r e s to m i g h t b e u n w e l c o m e to a majority, w o u l d surely
m a k e the B a n k a political e n g i n e ; a n d h a v e dis- e x h a u s t t h e p a t i e n c e of t h e S e n a t e . I shall dep r o v e d that c h a r g e so fur as s t r o n g p r t s u m p t i v c tain t h e S e n a t e not a g r e a t l e n g t h of time to com*
e v i d e n c e could disprove it.
p l e t e all 1 have t o s s y on t h e s u b j e c t .
I h a v e shown t i n t t h e B a n k itself voluntarily
Mr. P r e s i d e n t , t h e idea of a hard m o n e y sysp u t t h e question of re-ehartt r or no c h a r t e r on tem m.-ets with no favor b y those w h o contend
t h e result of t h e last presidential e l e c t i o n ; t h a t it that a U n i t e d States B a n k is a p a n a c e a for all evil*
t o o k this position from c h o i c e , a n d p u t all its G e n t l e m e n may rest a s s u r e d , t i e d any system of
m e a n s , w i t h o u t limitation, into t h e c o n t e s t , inter- c u r r e n c y th: t has not h a r d m o n e y for its basis,
fering a n d a t t e m p t i n g to influence t h e elections must fail. It is t h e e s s e n c e of money t o possess
to t h e full e x t e n t of it* ability; and t h a t t h e B a n k intritif-ie value. 3L.ru y s or a given quantity of gold
now stands in th<r position of t h a t individual w h o o r silver, is not only t h e commeni
measure a n d
s h o u l d p r o p o s e his own t e i m s — m a k e his own am man representative
of all o t h e r commodities,
b a r g a i n ; and after h e should h a v e availed himself b u t also t h e com men a n d universal
equivalent*
of all the* privileges of his own t e r m s , should insist Paper currency has, o b \ i o u s l / t no intrinsic value*
t h a t a decision should go f r n o t h i n g , b e c a u s e it A p r o m i s s o r y n o t e , u n d e r w h a t e v e r
form,
h a d b e e n d i s c o v e r e d t h a t t h e r i g h t b e l o n g e d to t h e *rc from w h a t e v e r s o u r c e it may issue, represent*
o t h e r p a r t y i and claim a n c w t n a l b y a tribunal \ a l u e . It d o t s so, i n a s m u c h as it is an u n d e r t a k i n g
which the p e o p l e ( t h e o p p o s i t e p a r t y ) n e v e r had t o p a y , in numet/t t h e s u m £hv w h i c h it is issued.
sanctioned.
T h - m o n e y or coin of a c o u n t r y ISS:J m u c h of its
I huve shown t h a t the: B a n k h a s war-.tonly, a n d cnpitai.
Paper currency is no p a r t of t h e Capita!
with malice aforethought, c o n t r i v e d t h e "means of a c o u n t r y . It is so m u c h circulating credit.
w i n c h Khoul ! b r e a k u p t h e c u n r n c v of t h e coun- T h e s e proposiiions, t a k e n fr< m an e m i n e n t writer
t r y , and d e s t r o y t h e facilities of" t r a d e and ex- on c u r r e n c y , QMr\ Ilusk'-.sson,) a r e axioms estabcliftnge^jind t h a t w.thin t h e lust six m o n t h s it h:is lished by e x p e r i e n c e , a n d will not be d i s p u t e d .
p r e m e d U a eu e m b a r r a s s m e n t s ! ruin to t h e trade
N o w , sir, any a t t e m p t to substitute paper cur*
of t h e c o u n t r y ; tl at, ,Jnoue,h distress and pnhWmrr,
rency^ w hich has r.o intrinsic value ; xs a foundation,
c
it m i g h t force on t h e P e o p l e what it c o u l d n o t o l i - in t h e p lh ic e of specie, musf f u h
a
T h e Goveriitam by a fair use of its capital a n d i n f l u e n c e .
m e n t itself r e c e i v i i g such p a p e r as specie in payI h a v e shown that a ^ r e a t p o r t i o n of t h e suffer- m e n t of all its d u e s , or d i s b u r s i n g it in p a y m e n t of
mpf a n d p e c u n i a r y distress h a v e h . r n caused bv i;sd.'. bt? f c a n n o t long maintain for it a uniform
o v e r t r a d i n g a n d an inflated p a p e r c r e d i t ; and that value. T h e British G o v e r n m e n t , from stern nethis distress could at any time b e p r o d u c e d b y t h e ecx*hy, a u t h o r i z e d t h e B a n k of Kng!and t o susB a n k , w h e n e v e r its o w n e r s and d i r e c t o r s should p e n d s p e c i e p a y n e n t s — h i o h c r w o r d s , to m n k «
feel H to h e for their interest to bring th-j distress ;ts own p a p e r a substitute' ior gold a n d silver.
into operation to f u r t h e r their p u r p o s e s .
T h e same. Goveramu-nt also m a d e it tui offence
i l i a v e * h o w n t h a t th > p e c u n i a r v distress ha-; no* p u n i s h a b l e with s e v e r e p e n a l t i e s t o m c l t a g t i i n e n
b e e n confined to the United S t a t e s . T h n t it p r e - w e i g h h u r rr.ore t h a n 5 d w t s . 8 g r s . , o r to r e d u c e
ceded,
and was m 0 i - e s e v e r e in t h e British h , by c l i p p i n g f i l i n g <>r an)- o t h e r p r o e m s , b e l o w
P r o v i n c e s on t h e N o r t h , a n d in t h e W e s t Indies, i that" w c h r h t . B y law, a g u i n e a of thai w e i g h t
Ulan it is in t.us c o u n t r y ; and t h a t it is even felt to i could u J t be e^ehan^t-d for IT ore than 3 1 * . lit
a c o n s i d e r a b l e e x t e n t in Gr^at Britain, w i n re a/ B a n k of Imrhmd papery for t o - e l ) t h e m for m o r e ,
N a t i o n s B a n k k i d jutt
b e e n p e c h a r t e r e d : from j w is an off u e e also h i g h l y p u n K h a b l e .
Whs*
w h i c h factb it.may ihwly b e inferred, e i t h e r that .' was the e o r ? t - q m nc<- of llus j m v e r n m e n t a t t e m p t
t h e p r e s e n t . d i s t r e s s would not have ( j c c n r m l at i to f,.-re<- a p a p e r s t a n d a r d of money > Mr. Hu*this time if t h e United Stales B a n k had not wa.ii- j kisson informs u s —
toiny p r o d u c e d it, or tJ.te, we m i ^ h t huve had p a r - i
" T h e state of t h e law, t h e r e f o r e , U t h i s : the




23
possessor o f a heavy g u i n e a , which is intrinsically foundation, a n d in addition to their ordinary issues*,
w o r t h a b o u t 245. 6d* in b a n k p a p e r , who should it was this expansion of p a p e r , in direct violation
e x c h a n g e it for m o r e t h a n 21$. of that sume pa- of t h e c h a r t e r , by the Bank of the United S t a t e s ,
per, w o u l d b e liable t o fine a n d imprisonment. that has p r o d u c e d over-trading in almost e v t r y d i T h e m o r e fortunate possessor of a light guinea is rection. Reflect, sir, for a moment, w h a t mu±>t
e n t i t l e d b y law t o e x c h a n g e it for what it will have b e e n t h e c o n s e q u e n c e of a sudden i n c r e a s e
f e t c h , w h i c h w o u l d b e a b o u t 24s* 3d.
of p a p e r circulation by t h e Bank of t h e U n i t e d
** A light g u i n e a , t h e r e f o r e , cried down, no States of t w e n t y to thirty millions. If the B a n k
l o n g e r c u r r e n t , no l o n g e r n frgal tender, is, at the of t h e United States was so g e n e r o u s the local
p r e s e n t m o m e n t , m o r e valuable than a guinea of banks w e r e obliged to be g e n e r o u s likewise in?
full weight, in t h e p r o p o r t i o n of 24*. 3d. to 21?. self-defence.
P a p e r m o n e y , for the moment, and
** T h e light guinea, b y melting*, is c o n v e r t e d , untd t h e b u b b l e should b u r s t , was made a cominto 5 d w t s . 7£ grains of bullion.
• p l e t e substitute for gold a n d silver: no ha d M.O** T h e h e a v y guinea, b e i n g b y l a w i n c a p a b l e ; ney could b e wanted when p a p e r facilities, ^tat do f b e i n g c o n v e r t e d into bullion or of b e i n g re- ing in its place, could e v e r y w h e r e be obtain d
d u c e d , b y a diminution of quantity, into t h e more by t h e asking.
v a l u a b l e rdiape of a light guinea, is equivalent to = T.et us s u p p o s e the YJank of t h e U n i t e d S t a t e s
4 d w t s . 14 g r s . of gold. T h e difference of va-, had confined it&elf strictly to t h e letter ei i s char*
iue in favor of t h e light g u i n e a is 17 h grains of; ter, and issued n o n e of the spurious o r d e r s as &
gold."
; money circulation; and t h a t it had never e x t e n d S u c h , i n Great Britain, was the anomalous state , ed its loans b e y o n d fifty millions of dollars, w h i c h
of t h e c u r r e n c y p r o d u c e d b y t h e a t t e m p t to m a k e is fifteen millions of dollars m o r e than its c a p i t a l ;
p a p e r m o n e y a substitute for gold and silver, j is t h e r e a man in t h e c o u n t r y acquainted w i t h
By l a w it was a t t e m p t e d to fix the guinea as a : money operations, w h o can d e n y that, in s u c h
s t a n d a r d for t h e i r r e d e e m a b l e p u p e r ; and tlvs event, m u c h , if not all the over-trading in t h e
law l e s s e n e d t h e v:due of t h e perfect guinea one country would hnve b e e n p r e v e n t e d ; and by consixth, or e q u a l to t h e amr.unt of depreciation of s e q u e n c e , that the distresses which now p e r v a d e
t h e p a p e r of t h e b a n k . T h e c o : s naience was the c o u n t r y as a m u t t e r of c o u r s e , w h e n t h e h a n k
w h a t may well b e supposed—h:,rd ninney was suddenly a n d arbitrarily- curtails its d e b t s , c o u l d
d r i v e n o u t of t h e c o u n t r y , and the c u r r e n c y had j not have t a k e n pl*ce ?
F r o m a state merit lately published b y t h e B a n k
no uniform intrinsic v a l u e .
I t w o u l d not b e difficult, Mr. P r e s i d e n t , to trace Commissioners of the S t a ' e o f N e w York, I find
b a c k t h e origin of the p r e s e n t distress to the at- that the united local b a n k s of the t h r e e cities o f
t e m p t t o m a k e a p a p e r c u r r e n c y a complete- sub- Boston, Philadelphia, and N e w York, (includings t i t u t e for gold and silver. T h e Hank of the those in t h e last r a i n e d city only which w e r e s u b U n i t e d S t a t e s , for some p u r p o s e , in the year ject to the b a n k f i n d law) with a capital of rising
1 8 3 2 e x t e n d e d its loans from b e t w e e n forty and ^ 1 0 , 0 0 0 , 0 0 0 , and loans amounting to $70,000,000*
fifty m i l l i o n s of dollars to more titan seventy mil- had le.:s than f 12,000,000 of bills in c i r c u l a t i o n —
lions o f d o l ' a r s . It did not lend specie, nor yet while the United States 15a ik, with a capital o f
d i d it l e n d such ordinary notes payable at the \'35>000,000, and loans amounting to § 5 5 , 0 0 0 , 0 0 0 ,
p l a c e s of issue as w e r e a u t h o r i z - d by law: it had bills in circulation amounting to m o r e than\
pftSHed off many millions of p a p e r in the shape £19,000,000. T h e same statement p r e s e n t s t h e
of b a n k n o t e s , b u t containing really no promise following table of the* capital, circulation, a n d
to ]iay, a n d which w r e only a request that the loans of* t h e loc .1 hanks of six of the eastern c o m m o t h e r b a n k w o u l d r e d e e m t h e m w h e n they mercial Sir.tcs, as contrasted with the B a n k of t h e
were presented.
T h i s new p a p e r currency, United Stat, s, on the 1st January, 1834:
L.<vtnK.
( a r c i i - u icm
Citpiml.
w h i c h d i d n o t even possess the r e d e e m i n g qual5Iaiuo
- i ,ir>H.:sr,o :i t 7:ji! f 5S3
y,-nrt.omi
ity o f :i p r o m i s s o r y note, was p u t into circulation
I^fK-UH L
7 i i >,cs
8.5M»,t>52
U h o a r 1-UiKl
b y m e a n s of a treasury order that it might be re7t£rii>,H^i 4 0 , - 0 1 , 0 0 8
2tVJ:u».fcjr>u
Mnsj-iirhu-t'Us
5,7* H,nir>
7,4Si j , 4 8 *
•i,.Vi7.-i27
c e i v e d i'* p a y m e n t of debts d u e t c United i C i n i i i i - c t i e i U IT^MII/U:*
in,:if»iN^iu :n,r>-^v293
States* A f t e r it was p u t in circulation, t h e r e I I V i a i * v l v : m i a .
ii-i/i:;;),-^-!
1 5 , 4 : 1 3 7 0 : 40,41)6,492
w a s s c a r c e l y a probability that t h e p a p e r would | N e w Y o r k - st,'J6iM-*vr. ;is,r^i (Kir* 1 -i-i,<)S(K5riO
b e p r e s e n t e d to h e r e d e e m e d b y specie, howeve r g r e a t m i g h t b e thy amount put in c h v u b t i o n .
r.iuu r. s. - - i :c,,M'jO,oiMf UV20H,y7ii 04,<U 1,461
The banks in t h e t h r e e cities, with about t h e
T*or t h e l i m e , to t h e Hank of th.- L'rdtcd State ,
this n a n e r a n s w e r e d :iU t h e p u r p o s e s of a pa- same capital as t h e United States Uaiik, had, in
p e r issued* w i t h o u t liability to i p e e i j r e : I u n p t t :;n, Xov. l.Si2, Iessth:ui half the amount of p a p e r cirfor HO l o n g as thi* p a p e r was receivable ;-t all culation of the United States B a n k , and less t h a n
the l a n d olfices t h r o u g h o u t t h e g r ~ : i t West, an I two ihird-; of the same b a n k in J a n . 1834; a n d
at t h e C u s t o m houses for dutU'K from one en 1 of the h\\ States of Maine, Khode. Island, Massachut h e c o u n t r v t o d i e other, t h e r e w ^ n ^ th.- most setts, Connecticut, Pennsvlvania, and N e w Y o r k ,
1
distant p r o b a b i l i t y that, t h e h a n k would he called Willi a caphsd of 83 millions, and loans amounting
on o n c e a y^-ar to r e d e e m *'Kh specie one dol-1 to M-" millions, h ^ l only double the circulation
lar in t e n of t h e a m o u n t issued.
! of ihe U. F . Ila/ik, with a capital of 35 millions,
T h e m a n a g e r s of t h e Bunk soon ascertained | : i n d loans amounting to $55,000,000. T a k e t h e
that thf-y m i g h t issne from t**n t o t w e m y millions; S-at-.-sof Massachusetts and Kbode Island as a
of t h i s s p u r i o u s p a p e r — e n o u g h to f:dl up t h e ea- ! fair t a i n p ' e of the four oth**r States of New K n g tire c i r c u l a t i o n of t h e W e s t — w i t h o u t a specie ] Iruuh the b a n k i n g capital of these two States ia




24
JL little over 35 million*, the same as the Bank of! the old National Bank might be supposed to Iiave
t h e United States; their loans are 5 4 , 8 0 0 , 0 0 0 , exerted its most potent influence. This Bank
nearly a million more than the United States Bank, never had an influence in regulating benenciattjT
w h i l e thc.r paper circulation is nine millions less, the local Banks at any time: during the last thre*
and little more than one half that of the United year* of the old Bank, w e had such defalcations
States Bank. And yet the circulation of the and swindling among the State Hanks as we miy
Bank of the Uuited States is less by four or five hope never to witness again. T h e Farmers* Exchange Bank, the Hillsborough Bank, the Berkmillions than it had been a year or two since.
If it be true that the pressure of the present shire Bank, the Coos Bank, the Vermont Bank*
time is owing1 to an overloaded state of the cur- ami many others, were not prevented by the Na*
rency—and it will be admitted that the large tional Bank from operations which will long- dif
amount of paper credit has produced over-tra-1 grace their authors. And although the war that
ding—it must be conceded that the United States intervened between 1811 and 1816, when no NaBank has done more than its full share in produc- tional Bank existed, was accompanied by pecuniary distress, the depreciation of property, and
ing the present state of things.
S o far as Banks loan capital, their operations embarrassments in business, yet it must be admit*
are beneficial; but when they extend loans on a I ted that during the existence of that war the local
created paper currency, pushing that currency | State Banks were much better managed than they
beyond its true point, pecuniary revulsions and were before the old charter of the Bank of the
distresses are sure to follow.
T h e spurious i United States expired, or since the new charter
orders or drafts of the Bank of the United went into operation. T h e failures of local Banks
States, being every where receivable in payment subsequent to 1817 were much more numerous
o f dftbts to the {government, have carried the pa- and extensive than they were from 1811 to 1816.
per circulation of the Bank of the United States And, as 1 have before remarked, the United States
far beyond that of the local Stale I l m k s ; and to Bank it*elf, had it not been for the helping hand
Ihis paper extension mainly may w e attribute that of the Government, woidd have stopped payment
pecuniary distress, whit h the 'same Bank is ena- and been in a condition little better than that of
bled to create by suddenly cm tailing its dis- the broken State Banks, in the year 1819.
counts.
If gentlemen will be content that the Toice of
In this country there is no standard for regu- the people shall rule—if they will consent, as conlating the amount of paper issues, but the judg- sent they must, that the United States Bank shall
m e n t of Bunk directors. Government cannot g o down to rise no more—they will soon find that
liere regulate that ."subject- In N e w Kngland, the currency of the country cannot be changed
"where the competition among the Banks is j;reat, for the worse by the death of this Hank. Both
and where the notes of Banks must be redeemed the currency and the exchange will be in as favoalmost as soon as they are issued, there is little rable a position when the national Bank is dead
clanger that any Bank will issue beyond what it as when it \u alive. Suppose the notes of this
c a n redeem. But a monopoly like that of the Bank no longer receivable for dues to the United
United States Bank, having its notes cvGvy where States; how much more valuable would be a U*
receivable for debts due to" the United States, can States Bank note at N e w Orleans payable at Bosissue the paper payable »t one branch at a dis- ton, than the bill of any local Bank payable at the
tance from its place of redemption; and this paper H'imc place? Suppose'the ten millions of spurious
v i l l fill up the circulation for the very reason that drafts now in circulation amalgamated with some
it is not worth so much as the local paper.
This hundred kinds of counterfeits throughout the
is the reason why the United States Bank has a west to be discredited as they ought to be; would
greater circulation in proportion to its capital than they coustitute n currency as sound as the genuthe State Banks.
ine notes of the local Banks of the west? The
Mr. President, it is claimed, with an assurance truth is, that owing to the circumstance alone, of
that will not allow of a denial, that the United United States Bank notes being receivable at
States Bunk has been the great regulator of the the Treasury, these notes have a general currencurrency; that " t h e old National Bank, for cy in small sums which the local bank notes that
t w e n t y yours, worked to perfection;" that "dur- are not so received, have not. But bow easy
i n g an intervening period of five years, public for any local Bank at the south or west will it be
credit became impaired, the revenue defalcated, to give its notes a currency in Pennsylvania, N .
real and personal property depreciated, and all York, or New England, by placing* funds for
kinds of business interrupted or embarrassed; and their redemption at Philadelphia, N e w York, or
that with the institution of the new Bank, these Boston ? And how easy at the same points to grre
troubles vanished, and for another term of six- the local notes of the Atlantic seaboard a currenteen years the rapid advance of the nation in cy when they are the best article in the world to
prosperity has outstripped the most sanguine cal pay for the purchases that are made in the citie*?
culation." This, say the advocates -of the Bank, So long as the vast prodocts of the south and
>s "absolute demonstration" of its utility.
west are vendible either in N e w York or Boston,
Casting b«ck for twenty five years, it will be or in Europe, so long may exchange be had in
found that facts do not warrant the assumption abundance at those marts; and so long- as those
that the United SUtes Bank has always secured a places furnish every species of imported goods
sound currency. There has been no time since that the west consumes, will the balance of trade
1 7 9 0 when the currency of the Eastern States was between the north and the south, the east and
l a a ^ o r e e state than from 1808 to 1811, when the west, be kept up. T h e facilities to trade




£5
* B W wo leai ahundant without than with the
^wktd States Bank*
I-ct gentlemen suffer the
sit to b e m a d e ; and one year will not
B before w e shall have ocular demonstra^^iraAe can better regulate itself than can
< « 0nit*d States Bank regulate it.
*
The danger of placing the sole regulation of
*%chan*e in one institution is demonstrated by
*he confusion and embarrassment into which the
Exchanges between t h e east, south, and west have
ke*» thrown by the secret orders issued by the
**»k on the 13lh August last. The exclusive
t>ower over the exchanges which the Bank hascx*tcised was given it by its connexion with the
Wernment, by its exercise of the functions of a
%c*l »icent in receiving and disbursing the public money* Now, if the government had had several ajrents to perform this service instead of
S e itnever would have been in the power of
either to consummate so much misclv.ef, suffering,
*nd misery, a« have been produced.
U is complained that if several State Banks
Perform the office of fiscal agents for the govern\tnU treat evils will result from a want of contert among them.
Now, this very want of contserU in my belief, will be a great security against
tbase both to the government and the people.
Ho far as the funds of the government give
feengrth to these several institutions and extend
their influence, that strength and influence will
(he fer more salutary while the action of each
tball be independent of, than while acting in conCert with each other in whatever relates to the
interest of each, separate from the especial intete*t of the government. While each has its separate interest, and may be said to be put upon its
rood behaviour from the knowledge that monobojV is not within its grasp, there will be a guarintLf a«punst outrage either on the rights of the
beoole or the government.
A concerted attentat to arrest the exchange, to embarrass the
Whole trade of the country, and to produce uniy e r M l distress, would not have been made, if the
fctate Banks had been employed to do that ser^
which it has been a boon to the Bank of the
United States to perform; thereby enabling her
to increase her profit*, and add to her power.
The fact of specie paying Bank notes in North
Carolina and other southern and western States
k^Utflr at a discount of from three to five per cent.
**?J*
York, has been mentioned as a subject of
SJrm
It ought to be no matter of surprise if
the notes of distant Banks were even at a greater
fttacountt for, in a healthy and sound state of the
ottjrewV the notes of no Bank ought to pass at
rrtTcotisklerable distance from the place of issue.
jSJ^ * presume, is the case with the Banks of
north Carolina a i U * a u °f l n e Southern States;
Mae of them ought to be sent for circulation either to Philadelphia or New York. It is entirely
waece*M*y *° r n i e r c n f t n t s a t t n a t distance to
^ ^ ^ ^ t n i t t a n c e s to the cities in their local Bank
they might better remit their own private
____»* n^ d u e bills; because both Bank notes and
Diivate iiote» have no intrinsic value; they only
mcTgeacnt value.and to represent value truly, they
tSuLl b e very near the point v here the value is
to be obtained for them. Very few North Caro-




lina Bank notes go to Philadelphia at all,- and
their paucity, together with the difficulty of detecting counterfeits at a distance from their place
of issue* and the want of knowledge of their solvency, is good cause of their depreciated value.
Did enough of these bills there circulate to have
them taken in masses, the interest on the time,
and the expense of returning, would constitute
all or nearly all the discount.
There would be as much reason to apprehend
the breaking up of trade between New York and
Liverpool because the Bank notes of each place
would not pass at or near par at the other place,
as th^t a like calamity will take place because the
local Banks notes of North Carolina, Sec. will not
pass at par at Philadelphia.
Remittances in neither c;isc are made in Bank notes.
Money may
sometimes be remitted to distant points; but Bank
notes, the representative of money, never.
The
merchant of the South purchases goods at Philadelphia or New York, „nd he makes payment
cither by shipping cotton or other produce, or
purchasing a bill of exchange of some other person, who has sent produce to those places. If
there be more goods purchased than there is pro*
duce shipped, it is either done on credit of six
months or a year, until more produce can be shipped, or the balance must be paid in money, not
in the local Bank notes of Alabama, or the Bra ich
Bank notes of the United States, issued from and
made payable at Mobile $ for local notes and United States Bank notes of that tenor would be alike
exceptionable, but in gold or silver* If paid in
Bank notes, it must come to the gold and silver at
last by being sent back to their place of issue;
and just in proportion to the time and expense of
their transmission will be the disccunt on the
notes.
If the notes of specie paying Bunks in North
Carolina mav be obtained at five per cent, discount at Philadelphia, the North Carolina man
might add much to his profits by shipping his
produce to Philadelphia, selling it, and with the
avails of those sales buying up the depreciated
bills. Taking them hence, he would obtain the
intrinsic value, and save his five per cent, if his
object were solely to turn his produce into moncvi so that what would be the loss to the man
first'passing the Bank note, would be gain to the
man taking and returning it to the Bank; and
here the business would end, with as much gain as
loss to the citizen of North Carolina, while the
Bank would have the benefit of the credit during
the time the note was absent.
Sir, the President of the United States has been
called a tyrant, robber, plunderer, usurper, for
having been instrumental in changing the depos*
ites. To prove that the Executive has no power
over the keeping of the public money, it \a assumed that the clause of the Bank charter which
gives the Secretary of the Treasury the unqualified right to change the place of deposite is without
meaning; and from this construction of the law
the inference is drawn that the Executive usurps
a power which did not belong to it.
Gentlemen
take it for granted that the direction of the public
money is not in the Executive Government but
in the will of a money corporation, controlled by

26
m e n w h o a r e not r e s p o n s i b l e to t h e P e o p l e , F r o m — b u t its " B o a r J of D i r e c t o r s p r o c e e d t o
time immemorial it s e e m s to h a v e b e e n t h e policy a i d e r " in what m e t h o d t h e G o v e r n m e n t shftH
of a p a r t y in this c o u n t r y to w r e s t t h e p o w e r from —in w h a t m a n n e r legislative a p p r o p r i a t i o n s
t h e l V o p l e . I.cgpslutlve p o w e r has been claimed m i t t c d vntirely to e x e c u t i v e discretion shall be
for j u d g e s a p p o i n t e d foi life, by c o n t e n d i n g for b u r s e d ; and t h e s e m e n t a k e on themselves
e x t e n d e d jurisdiction to all cases w h e r e t h e y p o w e r of deciding*, that if t h e H a n k of the Vni
choose t o i n t e r f e r e . Hut a glorious o p p o r t u n i t y States shall not b e t h e a g e n t for making-pay
now p r e s e n t s for wresting- ti:e whole p o w e r of to t h e soldiers of t h e r e v o l u t i o n , n o paymei
t h e G o v e r n m e n t from t h e P e o p l e : t h e Hunk of shall b e m a d e . T h e w i t h h o l d i n g t h e books
:
t h e U n i t e d States will relieve t h e m from all fur- p a p e r s w h c h wem furnished by t h e W a r t)ep*i
m e n t , ;iud w h i c h nrc t h e p r o p e r t y of t h e Govei
t h e r t r o u b l e about G o v e r n m e n t ,
A l r e a d y this
B a n k jiHsurnes to b e t h e judfre of the duties of t h e nicnt, can he justified on no p r i n c i p l e of right afrl
p u b l i c officers chosen by t h e p e o p l e . So late as k n o w l e d g e d in any civilized c o u n t r y : the age rfl
t h e 23d of J a n u a r y , X. l i i d d l e writes t o t h e S e c r e - feudal barbarism m a y furnish parallel breachesoH
tary id W a r in relation t o t h e p a y m e n t of pensions truht w h e r e force has stood in t h e place of law*
u n d e r t h e net of C o n g r e s s of J u n e 7, liio'J, us fol- but never, in any G o v e r n m e n t of laws, has a rnerfr
lows; 4< Having- t h u s ascertained that these direc- c o r p o r a t i o n with i m p u n i t y a t t e m p t e d t o standi*
tions e m a n a t e d from t h e highest authority claim- the ph:ce of t h e G o v e r n m e n t , or to instruct the !i
i n g the p o w e r to give- t h e m , t h e board of direct- G o v e r n m e n t w h a t are ha a p p r o p r i a t e duties*
ors have p r o c e e d e d t o consider h o w far they
T a l k o i ' t y r a n n y , usurpation, p l u n d e r , a n d f " ^ ^
w o u l d be justified in conforming to t h e m , " &.c. b e r y ! W h o is t h e t y r a n t and u s u r p e r , but the
A n d who a r e t h e s e d i r e c t o r s that " p r o c e e d e d to Hank t h a t a t t e m p t s to hold on to that which docs
c o n s k k v'3 and j u d g e of t h e p o w e r of a b r a n c h of not b e l o n g to it, for t h e p u r p o s e of preventing
t h e E x e c u t i v e to control t h e di-dmr.'scinent of an the G o v e r n m e n t from d i s b u r s i n g ' t h e public mone^
a p p r o p r i a t i o n placed by law u n d e r t h o special di- in its own way? A n d how m u c h b e t t e r than plunrection of tliat braiich of t h e G o v e r n m e n t '
T h e d e r a n d r o b b e r y is t h a t s e c r e t exercise of power
G o v e r n m e n t du cetors surely had mi participation by t h e Hunk which a t t e m p t s to force the rep re*
in thK s i u i u g for j u d g m e n t on tin- l a x e e u t v c ; fur : sentatives of t h e p e o p l e to c o n c e d e all its wishes
we have had i m ^ o v t r n m e n t tin ec'or.s, or only one, t h r o u g h t h e p u b l i c distress w h i c h it ii able to prosine--- t h e fust of J a n u a r y . T h e y are t w e n t y ir- d u c e '
responsible m e n , i e p r c s e n t a t i v e s of foreigner-!.,
Do those w h o a r e continually magnifying* the
o w i n g stock in t h e H a n k , of BirUiif, 1~$n>ihcr<s. and
impel t nice :md necessity of the. Hank of t h e UnitCompany, of iSir JVi'lli'rtn Krppii^ General in hi ed States, reflect that, in t h e midst of all the preHritaumc Majesty's forccs,of*V.<i- Mar mad it kc Wf/r-jsent misery and sidfering, this same United States
r t I cttcfjc?*\ I A. G e n e r a l , &c. w h o a s s u m e t« sit Hvnkbtil! e x i s t , with h e r o r d i n a l amount ofthirin j u d g m e n t on the Kx, c u d v e , and gravely decide I tv-five millions of eapit-il' li ? i h e existence of this
thai the S e c r e t a r y of W a r shall not he p e r m i t t e d ] Hauk b. of such COMS q u e n c e to our pecuniary
'
to , . - . a c . o- d i n g u> t h e t e r m s of t h e Uw, t h e j welfare, v/hy d o e s it n >t afford p e c u n i a r y relief?
„ control, , c r it]ppropriiiiiotib tor t h e p a y m e n t of t h e pensions. ( T h e r e cannot he a doubt that this Bank has been
I h e v are m e n totally u n k n o w n 1o t h e I't ople, mid the jruihy cause of that o v e r t r a d i n g which produt o w h o m no p o w e r has b e e n d e h - a t e d hy thn Peo- ces distress, by e x p a n d i n g its credit :,ncl its issues;
hi- d u ^ h •
'.,C *vCrCtlVy
V f . W*r m ^ - , k e n ! and what prev< nts t h e Hank from aifordim? at the
Jl>UJ
1M U
a r f I XuXhi
''*
had thc^e men to kit in j u>']>iy-»i>Mation, what rijrht; m o m e n t hall ithat faded in every oinh e r p o w e r ? Is
d g m e n t upon h b n a
liut d, tliat a v n g r. lief which i* t its experiment,
how do they c h a l l e n g e t h e public reprohatif;n and findimr the p e o p l e o p p o s e d to a r e c h a r t e r , the
w h e n t h e fact is c o n s i d e r e d tha 1 they wou:d have Hank h* n o w d e t rinined to force its object t h r o u g h
J u s t as m u c h n_*ht to claim as their p r o p e r t y the dislress and r u i n 1 ^A^hut right h a v e t h e stockmoney of the G o v e r n m e n t ,
f.yny ihe use an I Judders of this Hank to force a c o n t i n u a n c e of the
w l l i l lh
™ " r ^
'
~ ( ->vern"! c h a r i e r ? Uecau Ve t h e v h a v e h , d tin- immense
rnei.i . o^U cafl /or it.
Well has thle Attorney \>Y\\ ile^re t w e n t y years, do s it follow that tfiey ar*
Gen . . raJ - ...wi. w;t-c(i that - m e refusal of t h e e n t i t h d to it forever?"
« - . „ , demonstrated a i a t **lh refusal of t h e
T h e c r e d i t system, Mr. Via:sidi-nt, p t i n c i p a l i f
Hank •,. 1 of tu P r e s i d e n t to w mplv with tlntov.'
f(:n :l : :i,),,(
'y 'to i h - G* lv;e r n of etrust, a m l t ! aU t violalmn of its t h r o u g - h t h c aid of t his institution, has been blown
' o : " m n t , " and ;
1
dul
the refusal o p to an immense bubble* and sooner or later that
oftlm fhnd: to {\ Hvi-r u \ c r t h e b o u t s a nd jj:>pf!.' Nubble must burst- ! , o o k t h r o u g h t h e country*
behu fdne; 1o th.s uy~t t:cy is a still more p^doabh and see how the, means of nvm havi: been magnified
b r e a c h of th- duty u h i e h n sul s (Vnm th
u h o r on m e r e credi*. T h e m.-m w h o is worth a hundred
dinuthm of the ; ^ ML to hi.-, prhic.pah**
t h o u s * n d , a n d e v e i i a millie.n, lias ov«*rtraded not leW
I h i o o u r a ^ d by jusf.fic-iitionof all its acts on th than tlic rran ^i'ten t h o u s a n d , o r one tltousand, or he
floor oi Cum;rc*s f theru i.i no assumption that llif who was worth n o t h i n g w h e n he c o m m e n c e d . In
Ihmk does not sccin r e a d y to t i u d e r i a l : ^
Not ^ome t:oniiiiuiv! ; os. t h e wliolt mass of trading* men
only^floes •/. a^-um» to control t h e e u r r e n - v of t h e have pvuio in'o dei»1 t w o or t h r e e t i m e s as m u c h **
My t e m p t a t i o n in t h e p r o s p e c t of
C<mXtQ> rnalv.i:;; )i\nuy p l e n t y or sear: e' by • v. t h : y are worth.
r
par *m<}1'
^ - n t r . e ' . o u of its "cuaiit and i , - K - — t'a'm, \h * iiiiin ed* a h u a d r e d tliousand e x t e n d s Jii*
prr Ihf- <\-i o:u: : n ' ; i c n to w h o : a it t n u s v - n - OJH-rat-ions i o hah" a tnMiion, n;- a million; H\MI the
n,un of a ni.l'ion be^ea'i:.-; not to incrr:-s- his two
JV an-:e, a :d 'ir- r = ; e u . i ; l.iv; :s at oth*u* p(;in
and t b r e e d old that a m o u n t .
T h e joint s ' o c k c o m whe.j'e its >n].j)!;;iHL ads oca'o s have na:edl tlicr/j•j'»*. e-)dy df^ t ii ta'^e th .• -juyrr. nr Mitr> it* k.e< piin;*" paiiies, w h h millien:-; of nominal c a p i t a l , a r e in-




27
^Tn n u m b e r s , a n d t h e passion for g a m b l i n g shall h a v e nothing b u t A G I T A T I O N , A G I T A T I O N ,
"stocks, is as s t r o n g as t h a t of the successful A G I T A T I O N — t h a t w e are to have " n o p e a c e , b u t
> o f loo or bragf* 1 h a v e often been sar- a s w o r d , " until t h e d e p o s i u s shall be restored,
in passing tfcrough t h e country, to see with and the Rank fchall be rechartered.
tfccility e n t e r p r i s e s requiring- large sums of
T h a t eminent organ ana advocate of t h e B a n k ,
a r c u n d e r t a k e n by p e r s o n s whom I had at its very door, K o b e r t Walsh, so late as S a t u r ed to b e p o s s e s s e d of small means. In one day last, t h u s issues t h e n e w declaration of war
?I »ee a c o t t o n o r woollen factory spring u p which t h e B a n k intends waging 1 until its object
it in a day, with a capital of one, t w o , or shall be gained;
*fc h u n d r e d t h o u s a n d dollars, all the owners of I
" T h e s t r u g g l e , [that is, all the appliances of
*Hcfc t o g e t h e r are n o t w o r t h t h e tenth of its • t h e means of t h e B a n k to p r o d u c e pecuniary dis*t. This c o n c e r n will g o a l o n g in good times, j tress,] for t h e republican system, t h e constitution,
'Jong* as t h e article it p r o d u c e s b e n s a h i g h ; t h e l-iws, and the c u r r e n c y , to ill be con tinned in
%:t, a n d will sell for cash; b u t it exists p u r e l y ; Cortgrrss, and throughout the Union * with ,di t h e
^credit, g e n e r a l l y on sitcli pup* r facll tics as are ; ivsohu-on and p e r s e v e r a n c e which t h e defence of
b y a B a n k — a n d t h e moment t i m e s ' such interests inspires and p r e s c r i b e s . "
fe/brded
J)*nee t d o w n g o e s t h e whole establishment.
In
In ad former times t h e r e ha.s been nothing in
f| Other p l a c e , i s e e h u n d r e d s of m e n at w o r k on the history of this G o v e r n m e n t that has e q u a l l e d
L^anal o r rail-road, w h o s e s t o c k in the principal the p r e s e n t e x p e r i m e n t of the Bank, in shamev V » is k e p t u p b y t h e constant excitement of less effrontery, and recklessness of means to t h e
J^Ctilation; and this s t o c k has for its foundation accomplishment of its p u r p o s e s .
vJteper creditI g e t on b o a r d a n e w and elegant
I have said that t h e Hank of the United States
JStm b o a t , w h o s e cost is e i g h t y or an h u n d r e d is t h e cause of t h e existing evils. T h e u n p a r a l Jouwind d o l l a r s : this r u n s p e r h a p s in opposition leled expansion of its p a p e r credits and Ksues
tf others of e q u a l cost, on t h e same line; I ask if d u r i n g a tew months near t h e time it applied t o
i *e o w n e r s a r e likely t o b e r e m u n e r a t e d for the it be w c h a r t e r e d , followed by t h e late sudden cur£ve#tnu n t ; a n d am t o l d t h a t w h e n this boat shall tailment of one-half and two-thirds of its w h o l e
V*c r u n t h e o t h e r s off* t h e line, it will b e good d e b t s at points w h e r e t h e business was most ac"N>perty. T h i s s p e c u l a t i o n id o is found, d o n tive—as at Nashville and Boston—is a m p l e d e m o n **per credit o b t a i n e d from t h e B a n k s .
stration of the truth of my p o / d i o n . W h a t could
ft is this s t a t e of t h i n g s that is now taken ad- be e x p e c t e d from such a course but ruin and disJjntag'e o f b y t h e B a n k of t h e United States. tress? T h e g r e a t e r activity and p r o s p e r i t y of b u ^ e r e t h e r e no f o r c e d speculations, the situation siness, the m o r e intense must be the suffering.
^ t h i s c o u n t r y is s u c h , t h a t a forced and uunatu- A n d do we not find the B a n k a p p l y i n g its insiruJM curtailm* n t of c r e d i t m u s \ p r o d u c e distress; menhs cf t o r t u r e at those points w h e r e t h e r e was
\ i n all n ^ w l y s e t t l e d - c o m m u n i t i e s , a large por- the g r e y e s t amount of business 7 Add to this,
S n o f l a b o r is e x p e n d e d necessarily, not for p r e - the secret manoeuvre of t h e B a n k to cut off o r
S i t s u b s i s t e n c e , b u t for such i m p r o v e m e n t s as dam up t h e usual channels of e x c h a n g e by w h i c h
*^y b e d e n o m i n a t e d p e r m a n e n t capital: t h e la- money and funds had been transmitted from o n e
W h a t e v e r of evil has resulted,
S r of c l e a r i n g forests, e r e c t i n g buildings, mak ^ part to the etherhg f e n c e s , & c » m a y be included in tins class, j it. may in truth he said that this Rank has been t h e
^ t n c e it is, t h a t newly settled countries are a!- j a u t h o r of it all; and that it has done w h a t no
**ys in d e b t b e y o n d the p r e s e n t me. ns of pay-j other corporation ever did before —wantonly d e \mt.
T h e B a n k of t h e U n i t e d States lias blown j signed t h e ruin of men of business and t h e disV t h e b u b b l e of p a p e r credit, and this p a p e r ] tress of the whole community. Jf t h e r e w e r e not
^ e d k ha* c a u s e d o v e r t r a d i n g , and investments in ' other and more powerful reasons for p u t t i n g an
* g r e a t v a r i e t y of splendid p r o j e c t s ; and k n o v i end to such tin i stitution, this reason alone would
Nrtails its e n o r m o u s loans, m a ^ e two :md t h r e e i b e sufficient.
"
•
--**-*
T h e Senator from Pennsylvania (Mr. W H k m s )
**ar* ago * o r * ^ e P u r P o s e ft•*" enticing t"h e pu h e !
*Vror in, s u c h r a p i d ralio, :*s shall drive the c ^ i - , has shown ;hat Mr- Middle k n e w full well w h a t
Sunity t o beg t h e p r i v i l e g e of h i k i n g upon t h e m would be t h e effect of his r< air e of c o n d u c t ; by
*>te y o k e o f t h e B a n k !
I gvanting the small favor of fiity thousand dolMillions c a n , a n d will b e .expended by the Bank j lars in 1825, t h e rvur"c was then staved and t h e
f:om destruction. Yet, M r .
*> obtain a r e c h a r t e r . T h e foreigners w h o own u j
•
/erv ?eeVi
**re* p o r t i o n of t h e stock, can idfcrd to pav it— j Biddie has been unable to snow that w h e n lie h a d
W*
* ° t-b'e m o-m e n t t h e Bank is recharteiv d, t h-e' t h e very best intt ntinms this Hank was able t o
•- -* *u- T»..„I. :
i
„ ^ " I tl
*foek r i s e s fifty p e r c e n t .
W e k n o w that many p r e v e n t e x t e n d e d f.nuiki uptcy in t h e c o u n t r y . In
Ihouflftfidtf h a v e b e e n e x p e n d e d to c o r r u p t tbi; the years 1825 and 1826, the c o m m e r c e and buJWibVfC p r e s s , an 1 to spread tha* kind of informa- siness of t h e country was hi a more alarming contion w h i c h i*» c a l c u l a t e d to poison p n b h e opinion. dition than it now is. T h e price of cotton ftll at
Tarn told t h a t t h e e x p e d i e n t ha> lately b e e n re- that time from 30 aiif* ~5 to 12, 10 and 8 c e n t s .
torted t o of b u y i n g u p t h e stock of those State i here was wide-spread •i^maj , T h i s was p r o ,r
iu l.'Vui*.:>pe, producingH*nk» w h ' c h h a v e been selected as t h e d e p e s i u duce-.I by o*, cr-trad",
ft*nk*f-with t h e a v o w e d p u r p o s e of so enntja 1- over tr:«dm.:; in this c
1 V ; ai il i^ot :dl the credit
i»nj£ t h e m t h a t t h e y shad ask of t h e Gnv< m m m *
-.emve-- *-.f the
of the United States
L-a
that f h e d e p o s i t e e may be take:- from ihom VAM] add prev. -r it.
9, after the passage of the tarih
given b a c k t o tlie United States B a n k . Our he-it
A i ^ u in IS
• *av'v men! o> mantifactures, ruin
^(VJC^S from t h e city of the Hank are, that v, ,




:

28
and distress prevailed a m o n g t h e manufiicturers i scarcely one o f a thousand o f t h e w h o l e P^^PJ
o f the eastern States; the stock fell d o w n to less T h e local banks are every w h e r e — n o , not *J*fl
than half of its original cost, and t h e panic be- them—for there are several local banks WitM
c a m e general.
T h i s resulted from unwise legis- my k n o w l e d g e already that have refused to obij
lation inviting supplies o f manufactured g o o d s ] the orders w h i c h have b e e n sent them;—t^eM
from abroad w h i c h w e hud the abundant ability j cal banks are petitioning for the restoration * •
to furnish at home. Yet, then the credit and I recharter. D o these local banks even when they*J
means of the Rank of the United States w e r e not freely and without the influence of the threat of dfl
mammoth that they can at any time be crushed—4
e x t e n d e d to prevent the evil.
From these three instances it will b e seen that these local banks spenk the sentiments of thepdf
?
although in one case the Rank of %he United p l e Far from it. T h e s e hanks,in their aggregated
States is positively the author of the evil, in the corporate capacity, in the State I represent, **l
t w o others, where it wns not the direct cause, the directly o p p o s e d to the voice of the p e o p l e : J
same Bank either had not the power, or failed to the twenty-four banks in N e w Hampshire, thert
arc not more than two, a major part of wholj
e x e r c i s e it, of prevt nting the evil.
It is b e c o m i n g abundantly evident,
that stock is o w n e d or controlled by either friends *•
the cry of distress that c o m e s in here from dif- the State or National administrations; ar.d yet m
ferent parts of the country, is made in most cases the recent elections liAve shown those friends *Ja
in answer to the signals that the cry is wanted nearly two to one of the opposite party. Tb«
from this place: the simultaneous petitions *' with- more substantial men of the country—the owner!
out distinction of party,** differing only in time and tillers of the sod—-the m e n ot surest meal*
as the mail has to travel a shorter oraloiv^er dis- and most substantial wealth—are naturally je***
tance, coming from the banks and from the e x - ous of all banks, and therefore it cannot be »uf*
ertions of those d e p e n d e n t on banks, furnish posed they will readily enter into those mercer*1
abundant evidence that the w h o l e machinery is ry considerations w h i c h most influence aggreg***
m o v e d by a central directory;—^'^y 9 the very lan- bank corporations. T h i s is the reason why th»
g u a g e of the petitions and remonstrances* and re- larger portion of biink capital is o w n e d and co«*
solutions is in m<>.st instances a literal copy of that trolled by persons w h o are not supporters of lb*
made us<* of on the floor of either House of Con- present administration.
gress in favor of the bank.
A s a general rule, every banking* institution
T h e bank likewise follows faithfully in the path o u g h t to wind u p its concerns at the expiration <*
pointed out from this p l a c e ; it carries at o n c e its charter. For what other object than this is •
into execution whatever alarm is raised here. charter limited as to timt^? N o t the peopk
i f I have not mistaken the signs of the last w e e k , j alone, but the stockholders themselves, have »*
an experiment is next to be made on some of the interest in l o o k i n g to the bottom of the Bank <s
State banks in a certain quarter*- A run is pro-j the United States. If the charter shall b e COT
bably contemplated on some of them that have j tinned, how can they ever see the bottom? Th*
not signified their adhesion to the United States case of the Kssex Bank, in Massachusetts, occur*
Bank, that the predictions here that State banks' to me as one somewhat in point* Of that Bank,
cannot be relied on, may b e verified.
I many years a g o , William Gray, long esteemed
A display of petitions in favor of the bank is) the most wealthy, as he war* one of the most upmade almost everv day. And it is here worthy right, merchants in the country, was President
o f remark, that after all the efforts that have the Directors, and principal stockholders, were
b e e n made on the commercial and trading pla- men of the first character. T h e stock o f th*
c e s , much the largest petition from the city of Bank, having all along furnished the usual diviN e w York has c o m e in against the restoration of d e n d , was s u p p o s e d to b e intrinsically not le*
the deposites. H o w are the petitions g o t up M valuable than the best stock in the State. The
A t the instigation of the bank itself. That same Cashier of the Bank, with one of the Directors,
fund, consisting in part of the money of the peo- had had pretty m u c h the entire management of
p l e of the United States, is put in requisition to this Bank. One of these persons absconding)
pay persons for travelling the rounds to procure about the time the concerns of the Bank w e r e to
the signatures of m e n and boys, and in some in- b e wound u p , suspicion was e x c i t e d , und the disstances, as i* asserted, females, asking, either or covery was soon made that what, b e t w e e n th€
both, that the deposites may bfc restored and the speculations and wants o f the t w o delinquent* and
bank may be rechartered, mixed with a due pro- the fair dividends that had b e e n made to the
portion of complaints of distress and ruin, — that stockholders, there was not a dollar of t h e origin*!
same fund is put in requisition for this purpose, capital stock left; nay, the very special depositee
that is HO profusely p o u r e d out to pay for the print- o f g o l d that were here made, as a place of the
i n g of hundreds of thousands o f s p e e c h e s , pam- greatest safety, had b e e n abstracted, and inferior
p h l e t s , and newspapers, i m p u g n i n g the motives metals, to represent its w e i g h t , had b e e n placed
and calling down v e n g e a n c e upon the E x e c u t i v e in the vault in its stead.
head of the g o v e r n m e n t .
T h e extraordinary pertinacity w i t h which
Yet with all the exertions that are made for the B a n k clings to a determination to be
tins o b j e c t — w i t h all the noise m ^ l e by the pa- rechartered, g o i n g for this o b j e c t to the
rade o f c o m m i t t e e s and individuals sent h e r e t o length that it w o u l d involve t h e country in
o v e r a w e the constituted authorities—how f e w arc ruin, rather than fail in its o b j e c t , is cat
t h e numbers w h o s e names c o m e up here in fa- d i l a t e d to leave a suspicion that those w h o are
jov of the bank ? Not one in a hundred—nay, in the secret of the true condition o f the Bank,




29
*0t intend t b a t t h e P e o p l e or the stockholders since the 3d of March last, the time w h e n the act
z&alf know w h a t i s at the bottom of its trans- took effect, between ten and twelve millions o f
Certain it is, that no other institution in doll ars. T h e long' credits formerly given on the
Country h a s e v e r o p e n l y made use of its tea duties, it is well known, f >r years furnished
s with l e s s r e g a r d to propriety and to its the extensive tea speculators with capital to carry
purity of c h a r a c t e r .
T h e world has been on business: sales were made at once, and so much
acquainted w i t h its acts of turpitude gene- money was k e p t in advance of the payment of the
b y accident.
M u c h undoubtedly remains duties as to furnish the capital for purchasing fuind, that if u n f o l d e d would still more disgust ture cargoes at Canton. T h e credits under the
moral sense o f t h e community. It is due to former tariff averag-ed eight months—under that
insulted P e o p l e , w h o s e means and whose mo* of 18:32, the average credit would be scarcely
* have been m a d e u s e o f for base purposes, three months, including- about one-fourth of the
jnst their c o n s e n t , that the charter of this Bank duties on which no credit isallowccl. This change
tHild b e suffered t o e x p i r e , and that its whole requiring double payments of duties for the term
(
li^hcerns should b e s e t t l e d up before any other of one year after the law went into operation*
|*%tional Bank shall b e e v e n talked of.
would necess.u-ily derange the money operations
I ^ U h a s been said [ b y the Senator from Virginia, at the places of importation. T h e United States
J*>. T y l e r , ] that t h e Hank has been ' ' l a w l e s s l y ! Bank selected this peculiar time to commence and
Ij^t t o death b y t h e B x e c u t i v e ; " and this has been ! carry on a curtailment of its accommodations; and
| *%e b y the e x e r c i s e o f that p o w e r which the law | it k e e p s up these curtailments, not in a spirit to r e "*e* to the S e c r e t a r y of the Treasury for the lieve the pressure which the change in the tariff
t*thdrawal o t t h e d e p o s i t e s . I deny both the has produced, but refuses all concert of action
V i a n d the i n f e r e n c e .
T h e Hank has not been with the State Banks to afford relief: it even refuS b w f u l l y d e p r i v e d o f any thing- given it by law, ses a proposition to be passive while the State
N*r has it b e e n p u t t o death at all. T h e Bank ex- Hanks shall extend that relief which they can only
^ at this t i m e , and will live out the full term of safely grant while they may rest u n d e r ' t h e assui^%charter, e x c e p t a scire facias shall be sued out rance that the United States Bank will not unneAgainst it—in w h i c h case, if it should meet its de- cessarily run upon them for specie. T h e removal
**rUt* there c a n b e scarcely a doubt, without the of the d-posites furnishes no apology for this hosS i o f the Virginia doctrine of unconstitutionality, tile attitude of the Hank towards the merchants,
*W an end will at o n c e be put to its charter.
many of whom are forced to place themselves in
H o w can t h o s e g e n t l e m e n w h o insist that th© whatever position the Hank shall command them,
^ank and t h e B a n k alone, i* necessary to the sta- to take. At some of the places of holding disbility *of the c r e d i t a n t currency of the country, tress meetings, measures have been taken to report
*&ok about them, a n d present exaggerated reports the names of all such men of busiue>s as refused to
V the d e r a n g e m e n t o f the currency as evidence to sign the memorials to future meetings: this has been
**lpport their proposition? T h e Bank still exists, done for the purpose of intimidation. We shall soon
l i v i n g its full amount of capital, no part of which see whether the N e w York committee appointed to
H»s y e t b e e n withdrawn by the stockholders. Not effect an amicable arrangement between the State
t y . d o e s t h e B a n k exist, but it is exerting- all its Banks and the United States Bank, will dare re*>anchiaes, with n o less activity now than at any port the fact that the latter absolutely refuses to
former t i m e .
If it has immense power to do good unite in any measure which shall relieve the wants
\ ^ establish a sound currency, and support pub* of the commercial men of that city.
'ie and private credit—has it not likewise power to
Sir, looking through the visU of the last forty
4o Rreat e v i l — t o break up the currency, and to years, w h e n has b e e n the time that the m e n of our
destroy p u b l i c and private credit ? And if at an}' principal towns, who have m a l e enormous wealth
time t h e B a n k h a s b e e n actuated by the spirit of by commercial or other moneyed speculations, as
( o o d , d o e s n o t e v e r y event passing before the a body, have not shown the utmost indifference to
^eop'le o f t h e United States, prove that it is now the public rights, when the nation had great diffiActuated b y t h e spirit ef evil? T h e Bank is exert- culties to encounter? How was it with t h e s e
ing its u t m o s t p o w e r to create distress, that a dis- men, as a class, in Mr, Jefferson's time, when the
tressed P e o p l e m a y be found to a c k n o w l e d g e the repeated outrages of France and Great Britain on
>*ceessity o f its e x i s t e n c e : now if the Bank were the sacred rights of the American nag-, rendered
t*it o f e x i s t e n c e , the existence of the distress tm embargo necessary? How was it, in Mr* Maditotght b e an a r g u m e n t in its favor—but being still son's time, when that war was declared which
*lire» and t h e distress existing at the same time, alone saved the nation from disgrace anrl ruin, and
it m a y b e inferred that we shall be no more e x e m p t which forced the most potent powers on earth to
from e v i l s with than without the Bank,
acknowledge us to be their equal? Has it not alT h e r e are o t h e r causes for distress than the hostile ways been the policy of the party which is now
attitude a s s u m e d b y the Bank on account of the pressing for the restoration of the deposites, and
withdrawal o f t h e depositee. In ordinary times, through that the renewal of the Bank charter, to
the c h a n g e from credit to ca^h duties on imports sacrifice independence and principle at the shrine
p r o v i d e d b y t h e tariff act of 1832, would b e suffi- of money > A n d has not this party at all times
cient to p r o d u c e a money pressure in ail the places made the most noise before the public—has it not*
w h e r e g o o d s are extensively imported*
T h e in every e x i g e n c y , flooded Congress with petitions
changes m a d e by that act, by the introduction of like tho^e which have b e e n presented from N e w
cash d u t i e s a n d short credits, has increased the de- York, Philadelphia, Boston, and elsewhere, p r e mand for m o n e y , in the city of N e w York alone, dicting and threatening distress and general ruin>




30
A n d t h e worst complexion of this party g e n e r a l l y , bill a p p r o p r i a t i n g m o n e y t J aid in m a k i n g a
i _ been, that Me*> tworf* strenuous exertion? J, * i in t h e State of iKA nn t i . 1 ik i r
ii i .* _J
*.>/^«„ have :*^ + K~» u+,vt^ n r r e * i u c ' y
has i
** Hes'jlvcdy T h a t t h e p e o p l e of t h e XJ
been dlncted to bring about the very things they
have predicted.
** W e are in t h e midst of a revo- States have never g r u n t e d any e x p r e s s power
l u t i o n , " T h e gladiator, w h o deals blow for blow Congress to c h a t t e r the Bunk of t h e United SUt
T h a t with Thomas Jefferson 9 w e consider such
might say—
• • T h y wish was father, H a r r y , to tlr.it t h o u g h t . " institution, controlling t h e funds a n d t h e moi
i stand m e r e l y on t h e defensive, and i m p u t e to n:> operations of the G o v e r n m e n t , to b e * one of'
man such motives. But m e the words very far most deadly hostility existing, against the prinC*]
ec
from t h e t r u t h } W e are in t h e mid»t of ATTXMX* t s ph s and form of o u r constitution*—that w e d *S
*
a t revolution; for a r e c h a r t e r of the bunk would no G o v e r n m e n t safe which is u n d e r the vassalage 0 J
b e a revolution—a revolution of our G o v e r n m e n t i any self-constituted authorities, c possessing in tintf|
from freedom to the worst sort of tyranny. If of war t h e p o w e r to dictate to t h e nation t h e peac*
t h e b a n k can .succeed in its endeavor.-', we are no ; it should a c c e p t , or to b a n k r u p t Jthe Government!
l o n g e r a Cit^ people. J Jotter that the p r e s s u r e , \ by w i t h d r a w i n g its aids.' Kqually do t h e rcpttb"
w e r e it ion times wors • than the most exig^e-rated i bean me7nbers of the New H a m p s h i r e Legislature
account.-* m a k e it, should long continue, than that j protest against the admission, that t h e p< ople of
t h e spirit of freedom should s u c c u m b , in despair, ' this State have ever expressly g r a n t e d t o the Conto be crushed by the bloated and relentless J u g - | gress of the United States the p o w e r to locate »
( branch of that Dank within t h e limits of this State*
gernaut.
F r o m such a view, Mr. President, f turn with j whose specie funds and o t h e r estate shall be bei*
p l e a s u r e to t h e intelligent yeomanry of the coun- ! placed beyond t h e reach of S t a t e taxation, an<*
t r y — t o the nu.'U w h o now eonstitute t h e Democra- possessing a m o n o p o l y of privileges winch ma/
c y that elected A n d r e w J a c k s o n , in spite of t h e | enable suck a Bank to swallow u p or annihilate
a p p e a l s to avarice—in t h e iaco of t h e t h r e a t s of I every local m o n e y e d institution in t h e Stale, *•
ruin and distress which wt re to follow the veto of I any t r y i n g e m e r g e n c y ,
t h e b a n k charter.
T h a t intelligent yeomanry I '* Itesofvcd, T h a t this convention disapprove*
have e v e r been true to themselv; s when surroun- i the conduct of t h e ultra p a r t y in relation to the
d e d by peril, or when aroused by t h e suspicion ! tariff of 1328—that the protection and prospert h a t the enemies of liberty w e r e insidiously un- ity of t h e domestic industry and manufacturing C**
dermining its citadel.
| pital of t h e north, does not r e q u i r e t h e op p r e *
T h e State 1 have t h e h o n o r t o r e p r e s e n t has j sion of t h e sgriculturalits a n d p l a n t e r s of the
s e n t lew resolutions h e r e ; especially have not t h e ; s o u t h — t h a t it is our belief t h e manufacturing inte*
party friendly to t h e administration at any time ! rests do not r e q u i r e such av» imposition of lasc*
troubled either House of C o n g r e s s with com- J u p o n i m p o r t e d articles as shall raise » revenue
plaints of g r i e v a n c e s , either feigned or felt, or | more than is iv ce«s:«ry to defray t h e ordinary r v
with requests for public m o n e y to be .expended j peuses of t h e g o v e r n m e n t — t h a t it is the wish
for their benefit. T h e y have contributed their full j of t h e p< ople of this State, after the p u b l i c debt
share of ad t h e money t h a t has c o m e into t h e ; shall be discharged, that t h e duties on import*T r e a s u r y ; but small and trifling has been their j tions shall b e reduct d, first u p o n such article*
KHtion of t h e a m o u n t that bus b e e n disbursed I of necessary consumption as d o not come in coinrum the T r e a s u r y . T h e y send h e r e no rcsolu-j petition with o u r own manufactures, a n d after*
tiot\K; but as an offset for o t h e r resolutions, 1 will | wards gradually upon such articles as may b e ma*
ask liberty to call the attention of the Semite to nufactured within our b o r d e r s , so that t h e r e may
t h e resolutions which w e r e adopted by the affir- be a monopoly in no one species of p r o d u c t i o n
mative voice of nine Senators ( b u n g three-fourths and all interests may b e equally p r o t e c t e d .
of that b o d y ) and one h u n d r e d a n d thirty-nine r e ** liesolved, T h a t while this convention disappresentatives ( b e i n g about two-thirds of that bo- proves the doctrine that any State has t h e right
d y ) in the N e w Hampshire Legislature, J u n e 24, forcibly t o resist a law of the United States, it is
1831 :
equally averse to t h e doctrine of consolidation of
KKSOLUTfONS.
all p o w e r in t h e g o v e r n m e n t of t h e U. States,
"Hewlvcd,
T h a t inasmuch as e u r Hill of Rights c o n t e n d e d for by t h e ultra p a r t y , that t h e State
g u a r a n t e e s to t h e people of this State ' t h e sole of N e w H a m p s h i r e views with jealousy and disa n d exclusive right of g o v e r n i n g themselves us trust t h e disposition which has been manifested
* free, sovereign, and i n d e p e n d e n t Sta'e,* that the by the leaders of that p a r t y , that t h e U. State*
authorities of this Stale * forever hereafter shall Judiciary shall assume p o w e r which b e l o n g s onexercise and enjoy every p o w e r , jurisdiction, and ly to t h e S t a t e s — p o w e r which has n e v e r been
right pertaining t h e r e t o , which j» not or may not e x p r c s d y g r a n t e d by t h e p e o p l e of this State to
h e r e a f t e r be by them expressly d e l e g a t e d to t h e any oihcr tribunal than to their o w n legislative
U n i t e d States of A m e r i c a n C o n g r e s s a s s e m b l e d ' and judicial tribunals. It is the belief of this con— w e consider ail appropriations b y t h e <;ongrcs* vention that t h e r e is a r e d e e m i n g powwr in the
of t h e U. States of the public money for roads and , whole tp e o J l e of the United States, lully a d e q u a t e
,
p
canals, or o i h c r objects of m e r e internal local im* j to stop and ultima* ely to p r e v e n t all encroach
p r o v e m e n t , to he a violation of both t h e const itu-1 ments on State Rights; a n d that t h e idea should
tions of the United States, and t h e State of N e w , never for a m o m e n t b e i n d u l g e d , that a n y State
H a m p s h i r e ; und that in behalf of t h e p e o p l e ol this , may alone b e c o m e u m p i r e , " s h o o t mad!y from
S t a t e , w e r e n e w e d l y e x p r e s s our a p p r o b a t i o n of j its p r o p e r s p h e r e " in t h e g r e a t system of t h e
t h e act of t h e P r e s i d e n t , placing his v e t o on t h e ] Union, a n d t h u s rashly dissolve o n e of t h e ** •»*

J




31
P e o p l e ' s P r e s i d e n t and t h e P e o p l e ' s adminiatra-j tion. I n short, t h e P e o p l e o f N e w H a m p s h i r e
have often e x p r e s s e d , and t h e y will continue t o
e x p r e s s , t h e opinion that the General G o v e r n m e n t
should confine its action to t h e o b j e c t s specified
• B b c s e r e s o l u t l o n ? , e x p r e s s i n g t h e voice of a large in the Constitution; that strict e c o n o m y should b e
***a3&ity of t h e c i t i z e n s o f t h a t S t a ' e , us decidedly exercised in t h e public e x p e n d i t u r e s ; t h a t n o
tfcafrffeeted a t e v e r y e l e c t i o n r,inee, and including-the taxes should b e imposed for protection, b e l i e v i n g
>^gr 1 **3Q, w e r e f r a m e d a n d passed :i bout one y e a r that c o m m u n i t y t h e best p r o t e c t e d which is t h e
b e f o r e t h ^ t f e s t i o n o f r e c h a r t e r i n g the Rank of the lightest t a x e d /
T h e same p e o p l e h a v e e v e r l o o k e d u p o n t h e
U n i t e d S t a t e s w a s a g i t a t e d in t h e hist Congress. 1
t o o k m y s e a t h e r e in I J e c e m b r , 1 S 3 1 ; and since two e x t r e m e s — e x t r e m e s w h i c h seem r e c e n t l y t o
t h * t time, a s t h e y h a d b e e n for m a n y years before, have e m b r a c e d each o t h e r — o f consolidation on
t h e d o c t r i n e s o f t h e s e r e s o l u t i o n s h:ivc b e ^ n my t h e one hand, and nullification of t h e Constitution
I f u i d e . W h e n e v e r I shall deviate from t h e m in on the other, with equal a b h o r r e n c e and disgust.
*ny v o t e g*iven h e r e , I may well d e s e r v e the im- Tlu-y believe there is a redeeming* p o w e r in t h e
p u t a t i o n o f b e i n g u n f a i t h f u l to t h e Constitution, ballot-boxes of o u r c o u n t r y , in t h e intelligence
%nd to t h e p e o p l e w h o s e voice has sent me h e r e . and g o o d sense of t h e whole p e o p l e of the U n i t e d
\ T h e r e s o l u t i o n s , it is b e l i e v e d , c o v e r t h e whole Stales, not only to furnish a corrective for all eng r o u n d of d i s p u t e b e t w e e n t h e friends and t h e c r e a c h m e n ' s on Stute rights, but to s e c u r e t h e
E n e m i e s of s u c h an a d m i n i s t r a t i o n as die voice of t x e c u t i o n of laws constitutionally e n a c t e d , w h e n the p e o p l e has willed.
T h e y contain the princi- e v e r any minor body of t h e p e o p l e shall a t t e m p t
p l e * w h i c h t h e P r e s i d e n t h a s i n t e n d e d to enforce to resist them.
GEOIIGJ; W A S I I I X K T O K saved his c o u n t r y b y his
Si t h e m e a s u r e s h e h a s r e c o m m e n d e d .
T h e p e o p l e o f m y S t a t e , at ^vsvy successive g r e a t p r u d e n c e and forecast, especially in t h e
e l e c t i o n , h a v e s a n c t i o n e d t h e velo of the President winter of 1 7 7 6 - 7 , w h e n a g e n e r a l d e s p o n d e n c y
OO t h e M a y s v i U e r o a d bill, and thus d e c l a r e d that had t a k - n hold of the p e o p l e , a n d w h e n , almost
^ C o n g r e s s h&s n o t t h e constitutional p o w e r to m a k e destitute uf means, and w i t h b u t t h e s k e l e t o n of
a p p r o p r i a t i o n s for r o a d s a n d canals, or any o t h e r an a r m y , c o m p o s e d o f , m e n r e d u c e d to s k e k t o n s
by privation and suffering*, h e p l a n n e d a n d e x e c u t Were object of local improvement.
, X h e a a m e p e o p l e h a v e sanctioned the veto of ted the glorious victory of the 2 5 t h D e c e m b e r , at
Ike P r e s i d e n t on t h e hill r e c h a r t e r i n ^ the IVmk of T r e n t o n .
A N I J H F W J A C K S O N also g r a s p e d th<* d r o w n i n g
Ike U n i t e d S t a t e s , believing* that institution to he
**one of Vhe m o s t d e a d l y ho;-ti!ity existing against honor of his country—shall 1 say, saved his c o u n t h e p r i n c i p l e s a n d form of o u r C o n s t i t u t i o n , " inas- try frwm i m p e n d i n g r u i n — b y his p r u d e n c e a n d
m u c h as it p o s s e s s e s , *"in time of WMI% the p o w e r forecast—by* that mighty e n e r g y of mind w h i c h
t o d i c t a t e t o t h e n a t i o n t h e p e a c e it she >uld ac- could c r e a t e the mean* w h e r e t h e most of h u m a n
c e p t * o r t o b a n k r u p t t h e G o v e r n m e n t b y with- kind would d e e m it impossible*, a n d which, st lting
d r a w i n g its aid;'* a n d i n a s m u c h , in time of peace, t h e clamors and caballing of disaffection, c o n v e r t e d
i t h a s p r o v e d i t s e l f oi" sufficient p o w e r to agitate a mass of t h e mnst i n c o n g r u o u s materials int > a
t h e w h o l e c o u n t r y , to b r e a k in u p o n t h e founda- formidable b u l w a r k of d e f e n c e ; a n ! , w h a t is still
t i o n s of i t s g r e a t b u s i n e s s , and to t h r e a t e n its en- m o r e m a t t e r oi w o n d e r , from these materials furt i r e m e r c a n t i l e r e l a t i o n s with d e r a n g e m e n t and nished t h e m e a n s of a n n o y a n c e and death to an
a t t a c k i n g a r m y , which was t h e flower a n d pride
*******
of the e n e m y , in t h e g r e a t victory at N e w Orleans,
T h e s a m e p e o p l e h a v e sanctioned ail honest ef- J a n u a r y 8, 1815.
f o r t s t o r e d u c e t h e t a x e s on imports, a n d have
G^niiGi: W A S H I N G T O N p r e s e r v e d t h e Union from
d i s c o u n t e n a n c e d t h e idea t h a t our Agriculture And t h e incer.diary machination* of t h e E a s t e r n foes t o
m a n u f a c t u r e s c a n t h r i v e a n d flourish only w h e n o u r republican confederacy, terminating* in t h e
t h e G o v e r n m e n t shall s e c u r e to t h e m a domestic abortive treason of the Hartford C o n v e n t i o n , b y
m o n o p o l y b y o p p r e s s i v e taxation.
Vs t h e y have
o p p o s e d h i g h t a x e s for p r o t e c t i o n , so t h e y a r e that immortal legacy which enjoined it as our d u t y
o p p o s e d t o t h o s e p r o f u s e e x p e n d i t u r e s which r e n - to *' frown indignantly on t h e first d a w n i n g of any
d e r high taxes necessaiy.
T h e y have seen nnt a t t e m p t to alienate one portion of t h e c o u n t r y
w i t h o u t r e g r e t , t h e disposition of t h e t w o last from t h e rest, or to enfeeble the snored ties which
C o n g r e s s e s t o i n c r e a s e t h e p u b l i c e x p e n d i t u r e s ; bind its several p a r t s / *
A s » : n : w J A C K ^ O V also p r e s e r v e d t h e Union
t h e y b e l i e v e t h a t millions arc little b e t t e r thau
t h r o w n a w a y w i n c h have b e e n a p p r o p r i a t e d to against t h e a t t e m p t s of fomenters of mischief a t
o b j e c t s o f p r o f e s s e d i m p r o v e m e n t ; the}' do not t h e south, w h o seising t h e oecas on of s u p p o s e d
believe
it n e c e s s a r y for t h e w e l f a r e or p r o s p e r i t y oppression, t a u g h t an honest, but d e l u d e d p e o p l e ,
o f t h e ...District o f Columbia,, in addition to t h e , t h a t no allegiance was d u e to t h e constitution of
i m m e n s e a m o u n t p a i d in salaries and i m p r o v e - I our national g o v e r n m e n t : h e saved it, b y e n e r g c m e n t s o f t h e p u b l i c p r o p e r t y , t h a t t h e r e should j tically and p r o m p t l y practising, in t h e w i n t e r of
b e f r o m ftve h u n d r e d thousand to a million of dol- j 1832^ on t h e sentiment fuvst u t t e r e d from his o w n
l a r s a n n u a l l y a p p r o p r i a t e d to k e e p in r e p a i r or lips, and which has since b e e n r e s p o n d e d by mil*' The Union: it must be preb u i l d h e r r o a d s , b r i d g e s , and canals; t h e y d o not J lions of freemen.
T h e hold and resolute s t a n l which h e
b e l i e v e t h a t t w o or t h r e e h u n d r e d thousand dol- served."
l a r s s h o u l d b e a p p r o p r i a t e d annually for t h e b e n e - | t h e n t o o k , c a u s e d a fearful t r e m b l i n g a m o n g t h o s e
A t o f p r i n t e r s e m p l o y e d to oppose a n d vilify t h e w h o b a d t h r e a t e n e d b r e a k i n g d o w n t h e c o n f e - l o
Ife*" w h i c h c o n n e c t it in its several p a r t s .
Cfl|Hertt s e n t i m e n t o f our P r e s i d e n t on this
^ u w o r t h y t o b e e n g r a v e n on e v e i y Amejlcar^
* T h e T J x i o x of t h e S t a t e s — I T




3*
racy, and forced t h e m t o retreat i notoriously I from unnecessary taxation, And be ljf*! 1 *"]
from the field under the cover o f R fire from vent all encroachments on State r"'j^*tl%'"§* •
?
those who had bet n the source of their com- removed fiom office some of the emfttttcre
plaint*, and finally into the very arms of the party tisans who deride his princifiles and h i *
which had been the authors of the oppression of isfration.
Hettcr than all, he has had the
which they complained.
c o u r s e to take upon himself the sole
TnoMis .FfrrtRflON, by his example and hi* doc- hility of vetoing- the charter of a Hank
trine, restored the Constitution to its true reading, United States, and has thus preserved the
and expelled the corruption and abuse of power try from that blighting1 curse, a moneyed co
which a party in this country, obtaining an asecu tion, ** possessing in time of war \hw pow *
dency, have h e m v.nnl tr> exe? rise- he confined dictate. 1o the natron the peace it should »C<
the operations of th<* ilLncra} (Government to its and in peace the power at any time to pr»
leg-itimate purposes: he opposed lavish appropria- j extended pecuniary distress.
And scan:* '
tions and unnecessary cxpt -nditures: he was an j than was the. illustrious apostle of l i b e r t y *
vnewy to hir>b taxation, and to inlrcferenee \vi h i name of Andrew .faction held up to re pit**
the n^hts r < s ' i \ r ( | to the States: he invariably! the party which has ever been opposed to
removed f; orn office those embittered partisans principles.
who oppov-d his administration, an<l the popular I
More than either \V AHHI NOT«N or Jurfrall
principles of the country.
Me considered a Na- \ A N I H I i-'.w J Arte SON b e e n f U i c c c s s f u l i n his ***• \
-<
ttonal Hank to b»* an institution of th<*
most, j traiion Tif the department of foreign relati
deadly hoMdtty" to *4»be priiicipl'-s and form of] there iu no frovernment of the world havrflff *£]
Otir CoilMi'utioiif** and had a hill, c.h:ir1erine; Ihe tcrcourse, with our own, that doe*;
< t?l
.
B a n k , p a s s e d h o t l l H o u s e * o f { l o n ^ f v s . t t h e r r - e-ui- him all the respect that U din' to o tM*ht
not he a doubt he wotrd have placed upon ii h'.s tat.on* and honest intentions; and hi* * ' * ^
veto.
For hi* strict th nun ratic principles, for his | cUion of character, has aided tb
; eculixf
enthuMastic attachment to the rights of the p< nple, j tion of this country* to procure tn«
•>'<
f*> r hi* strong and tie. ting- hatred to opprc.Hsio-i of! o f r i g h t f o r this a d m i n i s t r a t i o n , w h i c h h *'' b«
all kn>«l« no man ban W e n more abused and vili- nie<l t o a l l o t h e r s ; a n d t r u l y m a y it h e » ^ d *^5*J
ftrd tlialPBrV.* t
the jlJij ir^nta apostle 'd Amcric:.*. o n l y Iris J a c k s o n filled t l v p l a c e i n l H ^ 4 * H j
1 bt r'v,
tin- c a b i n e t i T b o t h W A S H I N G T O N a n d J u r r *
A!i»ai:w JiCKM»s, IMMILT a * \ *tcm of increas- b u t t h a t h e bus (f»ru: b e y o n d t h e m L c t h i f l l
ed corruption, I I M *ff*in attempted and is now i n p f o r t h e n a t i o n t h e c o n f i d e n c e a n d 1 1 ^ P * * 5 t
laboring to restore the constitution to its original all t h e p r i n c i p a l k i n g s , p r i n c e s , a n d p o t e n t l * » * |
H e r e a f t e r shall h i s f a m e h e t f J M
reading
l\v IISH »et his face againtl corruption t h e w o r l d .
and nbui? of power.
He would eonfmc ilu* e e n d e d b y hut f e w n u n w h o s e d e e d s fc*vc « P
public expenditures to the legitimate object* of bistre u p o n t h e i r Kpecics.
the constitution,
ffe would relieve the*people




=
j

Sf