dollars. He computes the commercial debt from the [ United States at thirty millions of dollars. If these estimates be correct, then the cotton, had it not fallen, would have paid two-thirds of the debt; and the balance, reduced to ten millions of dollars, would not have been sufficient to cause any very serious embarrassment. It further appears from the statements of the secretary of the treasury (especially from his report in December, 1836,) that while we were getting in debt to England, we were importing specie, and that the amount added to our stock of gold and silver was more than the amount of the debt just mentioned. It follows, that the gold and silver must be considered, to that amount, as having been bought upon credit and not paid for. Coming into the banks, nevertheless, with nothing upon them to show this infirmity, it would be dealt with as any other money in its vaults, and deemed to justify an expansion of credit. Such is a brief, but, in the opinion of the minority of the committee, an accurate sketch of the times immediately preceding the suspension, in which are to be sought its causes. They do not concur with the secretary of the treasury in the suggestion that the over-production of cotton was among them. It could not have operated so suddenly and violently. But there is now evidence to the contrary; the production has gone on increasing since, and the demand in England has kept pace with the increase. There is no reason to fear that a scarcity of this great staple will become desirable. The act for withholding the fourth instalment factory security for. In these two points they from the states, was a measure purely for the relief were identical with bank credits, which are securof the government, and adverse to the states and ed (besides the bank capital) upon the property of the banks. In the distressed condition of the coun- the borrowers. But the principle just mentioned, try, this money would have been useful to both. which formed some check upon issues, and made Especially, it would have gone into the state banks, them a representative of real value, was not everyand helped them in their struggle, which would have where adopted, nor, where adopted, was it adhered been beneficial to the citizens. Even modified, to. Such paper was made a lawful tender. Abuses as it finally was, it gave no relief to the states existed and increased, as always has been, and or the people, but disappointed the hopes of both. always will be, the case with government paper; The issue of treasury notes (to say no more of but credit was not on that account abandoned, nor it) swelled the stream of inconvertible paper, the credit system less prized. Congress, in the year and increased the contusion of various paper, of un- 1781, chartered the Bank of North America, which equal and fluctuating value, already too great. By had been established in the preceding year by a few employing it in the purchase of specie, or even patriotic citizens: that bank afterwards accepted a by offering it, the demand for that article was in- charter from the state of Pennsylvania. Three other creased, its value raised, and the tendency it might state banks were established, and in existence, beotherwise have had to return to the circulation was fore the constitution of the United States was made. counteracted. The operation does not entirely ter- The system of government paper was, therefore, minate here. Being receivable in dues to the go- condeinned and abandoned; but the credit system vernment, and bank paper excluded, it so far tended was cherished and preserved by means of banks, to depreciate bank paper. There has been a con- used both by the government and the people. test between them. Specie has been above both, but they have fluctuated in comparison with each other; bank paper in New York generally having the preference. However necessary this issue of treasury notes may have been for the government, it has given no help towards the resumption of specie payments. Thus, there has been more than a want of co-operation on the part of the government towards this desirable result. Under these circumstances, the states relinquished the power to issue bills of credit. They were prohibited by the constitution from issuing bills of credit, or making any thing but gold and silver a tender in payment; but the United States were not expressly prohibited from doing either. One of these powers (issuing treasury notes) they have twice exercised, and it is now in active exercise, with a certainty of some extension. This session The remaining measure was the sub-treasury bill, of congress is not to go by without an authority to But, whatever may have been the cause of the now again presented, and the immediate occasion of issue new treasury notes, or to re-issue the old ones, suspension, the fact unquestionably is, that as be- the present report. This is by far the most import- or both; the other (of making their paper a lawful fore we had a circulation of bank paper, with only ant of all; for while the other measures are, in their tender) they have never employed. As was strongly coin for change and for the liquidation of balances, nature, temporary and occasional. this is intended remarked by Mr. Dallas, when secretary of the treaso after the suspension we had nothing but bank to be permanent and systematic. Being at the same sury, "the extremity of that day cannot be anticipaper. If the whole of the bank paper had been time new, and without example in our former his-pated," when this expedient will be resorted to. withdrawn or discredited, there would have been no tory, it must necessarily be a departure from all the But, while they have abstained from making their circulation at all. If it were now to be witdrawn former usages of our government, and all the former paper a tender between individuals, such has not, or discredited, there would be no circulation. But habits of the people. It is, therefore, entitled to in substance, been the case in all instances with the the people of the United States were not so blind the most serious consideration, before it is adopted; public creditor. As he cannot sue the government, as to reduce themselves to this condition. They and in what they have further to say, the minority he has been obliged to take treasury notes, because believed that these institutions, though unable to of the committee will confine themselves to this he could get nothing better. pay specie, or unwilling to adopt harsh and ruinous great topic, not incidentally only, as offering no remeasures towards their debtors, to the injury of the lief to the people, but substantially, in its principal community, were solvent and secure. With the features and probable operation. And with this few exceptions of some banks too much pampered view, they proceed to inquire, in the first place, by the government, they have justified the public what is the ostensible aim and purpose of this confidence. The people of the United States, measure? and, in the next place, what are the means therefore, did not discredit the banks. At the same and machinery by which the purpose is to be achievtime, they desire the resumption of specie payinents ed. as soon as it may be reasonably practicable. It is To the first of these questions the answer seems a just desire. Their permanent interests require to be, that the ostensible purpose is to establish an it. But can this great object be accomplished as independent treasury, where nothing shall be receivsoon and as well as it ought to be, without the co-ed in payment, but gold and silver. operation of the government? Can it be accom- If such a scheme be at all practicable, (as it never plished in the face of government measures bearing to the contrary? Are not the measures of the go vernment, and, especially, is not this measure, of that description? Let us for a moment examine. The message of the president of the United States, at the special session in September, presented four principal measures for the consideration of congress. One was, to withhold the fourth instalment of the deposites from the states; another, an issue of government paper denominated treasury notes, to the amount of ten millions of dollars; the third, was the sub-treasury; and the last, was a bankrupt law for the banks. yet has been found to be,) it must work in one or currency, 1 In giving up the power to issue bills of credit, no one can believe that the states intended to destroy the credit system, or to leave it without the control or guardianship which might be necessary to prethe concerns of commerce, by giving the whole vent it from dsetroying itself. Having nationalized power over it to congress; and having also conferred upon congress a power to raise a revenue directly from the citizens, including a power to levy contributions upon commerce, both of which are intimately and inseparably connected with currency and circulation, it would have been unnatube left to take care of themselves, without any care ral and unreasonable to suppose that these were to unreasonable and unnatural would it be to hold that or concern on the part of the government. Still more this government was at all times bound, or even at liberty, to insist upon a currency exclusively of gold and silver, when such a currency was notoriously insufficient to supply the wants of the people, and when it was notorious, too, that the people must have, and would have, a more abundant circulation than metal could furnish. The first, namely, an entirely metallic for all the purposes of circulation, has been over and over again demonstrated to be impossible. In this country it never existed, unless it were during the The duty of congress, in this respect, is still more very short and gloomy period which followed the strikingly evident from the consideration that it is The aim of the last of these measures was direct overthrow of the government paper, remembered not within the power of the respective states. enough, and as fatal as direct. If the suspension of by the name of "continental money," which ought They cannot regulate or control the currency bespecie payments was to be an act of bankruptcy, forever to make the people distrustful of the govern-yond their respective limits, nor make it uniform, (and the banks had done no other act to be com- ment paper. All the provinces before the revolu- nor provide for the supply of it in sufficient abunplaind of) then the whole banks of the United tion, and all the states from that time till the adop- dance, without excess. Congress can. States would have been liable to be brought under tion of the constitution, had a credit system of some But to pursue the remarks upon the constructhe power of commissioners of the United States. sort or other; most commonly it was state paper, tion of the constitution. As soon as the government The capitals of these banks are between three and not resting altogether upon the faith of the state, was organized, a connection was formed by the four hundred millions of dollars. In some instances, but upon the security of individuals, to whom the treasury with the people, by means of banks, for the they are owned wholly by states. In many others, credit of the state was loaned. The bills of credit mutual convenience of both. The first secretary, the states are large shareholders. The debts and in Pennsylvania, which came into use at an early in his letter of the 22d September, 1789, directed the credits of these banks are beyond the amount of day, and were issued upon the very ground that collectors to receive payment of duties in notes of their capitals-probably twice as much. Here, the supply of gold and silver was not adequate to the banks of North America and New York. In his then, would be three or four hundred millions of the wants of society, were thus loaned out to indi- circular of the 14th October, 1789, he directs them property of the states and their citizens, and double viduals, who gave mortgages, or other satisfactory to exchange whatever specie they had received, or that amount of debts and credits, exposed to be security, to the government. These issues were, might receive, for notes of the same banks. In his placed in commission to wind up their affairs. from time to time, increased. The wisest and best letter of the 20th November, 1789, he directs the When bankruptcy began, banking would instantly men have borne testimony to the value of these cre- collectors in Massachusetts to receive the notes of There would be no circulation. Banks dits, as conducive to the support and encourage- the Boston bank as well as of the two banks just have their evils; but who can measure the extent of ment of industry. They have agreed that credit, in named. The reason given in this letter for the dithe calamity that such a system of bankruptcy some form, was indispensable; and even that this rection, deserves to be particularly noted. It was to would produce, if fairly carried out? The commis- plan, objectionable as it was, and liable to abuses, avoid drawing specie out of the state. "It is not," as sions would only strike the banks, but the bank- was better than the restriction to gold and silver. has been well said, "the inconvenience, and frouble, ruptcy would be universal; no one could hope to The two principal characteristics of this plan, in and hazard of making remittances in the precious meescape. Such a recommendation, it will be seen, Pennsylvania cannot escape attention. The credits tals that constitute its principal difficulty; it is because could give no relief to the people, and no aid to the were lent to individuals for the purpos of circula- extracting specie from any city where a bank exists, banks. There was nothing in it to help forward tion-that is, for the wants of society, and not for diminishes the circulating capital of the place to the resumption of specie payments, but the con- the wants of the government, though it is true that inany times the amount extracted." This may not trary. Fortunately, it received no countenance they were receivable in the payment of public dues; appear to be a fiscal reason, as some would now from either house of congress, and has not been re-and they were lent, upon individual security, in understand the word. And yet it is a good fiscal such amounts only as individuals could give satis. reason; for it conduces to the advantage of the trea cease. newed. suary, by promoting the welfare of the people. The tributary is better able to pay his tribute. demand for specie, withdraws and withholds it from ought never, in the opinion of the minority of the the general circulation, imparts to it the character committee, to be allowed, but in cases of strong In 1791, the first Bank of the United States was of merchandise, and raises its value above the value and overruling necessity. The more open method established, and continued for twenty years. Its of bank notes, which is precisely equivalent to de-of borrowing, whereby it is plainly made known paper was a currency, both for the people and the preciating that description of paper. In addition, that a debt is contracted, and the amount of such government. When the charter of that bank expir- the government proposes that even should bank pa- debt is at all times ascertainable by congress and ed, state bank paper performed the same office. In per, in the face of these adverse circumstances, re- the people, is far preferable to an issue of govern1814 the state banks suspended specie payments; gain an equality with gold and silver, still it shall ment paper, whether treasury notes, or in any other their paper continued to be the currency. In 1816 the not be received into the treasury, except for a very form, which are a debt in disguise. The one inlate Bank of the United States was established. In limited period, and in decreasing quantities, culcates economy; the other leads to extravagance; 1833'-34, the fiscal agency of that bank was deter- but be permanently and forever discredited. In as any expenditure can be easily provided for, by mined by the government, the deposites were re-this state of things, can there be any assurance that a new emission of notes, or a re-issue of those moved, and a connection was formed with state the banks, if they should resume the payment of which have been redeemed. At the special session banks as agents. In May, 1837, (the charter of the specie, would be able to maintain it? The doubt of congress, no longer ago than October last, authorBank of the United States having expired in March, (not to speak more strongly) of the issue of such ity was given to issue ten millions of dollars; a fur1336,) the state banks suspended specie payments. an experiment, must operate most injuriously ther authority is already asked for. One of the arguTheir paper has since been the only currency of the against the operation of a sound currency. The ments in its favor was, that the notes would aid the people, and in part, at least, of the government; for co-operation of the government, in case of resump- circulation-a purpose which, by no means, recomthough the government has professed to receive no- tion, would enable them to maintain specie pay-mends them; for the circulation of government pathing but gold and silver, yet it has certainly made ments. But, with the antagonist power of an inde- per, based only on government credit, and having payinents (to what extent cannot be known) in bank pendent treasury, able to command a large amount no other limit but the extent of that credit, has credits, and bank paper, as well as in treasury notes, of specie, and to withdraw it from general circula- everywhere had the same disastrous history. Such and protested treasury drafts. tion, to prevent it from going into the banks, and a lesson as it furnishes, in the opinion of the mito force it out, it appears to the minority of the nority of the committee, ought to teach us to becommittee impossible to understand how the banks ware of the beginning of a plan so seductive and could re-establish, or, if re-established, could pre- dangerous. There is no check upon it; there is serve the specie basis. an unavoidable tendency in it to excess. Depreciation accompanies it from the outset; a desperate recklessness is generated in its progress; rapid and great fluctuations are its inseparable incidents; and, finally, any new element of disorder supervening, (such as all governments are exposed to,) the public credit fails, and the paper becomes worthless in the hands where it may happen to be. Thus it was with the continental money; that was government paper, based upon the resources of the country, and importing, upon its face, a binding obligation to pay. It became a circulation; yet, in about three years, it ran its whole career, and perished. Who would be willing to run even the smallest risk of re-enacting the scene of continental money? Thus, the whole history of our country, except the very earliest period, is a history of credit and of paper currency, and, along with them, a progressive prosperity and improvement, beyond former example. If, in any highly commercial and civilized nation, it Should such be the working of the independent be practicable, at this day, to conduct its affairs well treasury, or hard money scheme, as it unavoidably without their aid, (which, it is believed, no reason-must be, that one of two things will happen: an inable man will affirm,) yet it must be admitted that a definite suspension by the banks, or a sudden and sudden or rapid abandonment of them in this nation, violent contraction of the circulation. The first of and the attempt to substitute gold and silver, and no- there is entirely inadmissible. An unlimited issue thing but gold and silver, in circulation, to destroy of bank paper, unrestricted by the obligation to keep banks and bank paper, by commissions of bank-it equal to specie, and to convert it upon demand ruptcy or otherwise, would bring on a scene of dis- into coin, would flood the country with depreciated tress and destruction which would fill the land with and depreciating notes, and entail upon it all the anguish. This, surely, cannot be meant. evils of a currency constantly tending downwards, But if this be not what is intended, then we are and becoming more and more debased, until it driven upon the other alternative; that is to say, that should be sunk in value as finally to perish from there is to be one currency for the government, of weakness. This, the laws of the state could pergold and silver, and another, of depreciated paper, haps prevent, and probably would prevent. for the people. There is no middle course. Such a The other, (a sudden and violent contraction,) as But why should this view be further insisted scheme, rigorously and exactly executed, the minor- has been already remarked, would be attended with upon? It is universally admitted to be correct. ity of the committee believe to be entirely impracti- the most grievous consequences. Little is hazard- Governments, it is true, have not everywhere abancable. Relaxations of it, there would unavoidably ed in saying that it could not, and would not, be doned the issue of paper. Nor have they everybe, as there are at the present time, when, as already borne. But, between this evil and the one just men- where abandoned other practices manifestly destated, payments to the creditors of the public are not tioned, (of indefinite suspension,) there is an im-structive to the countries whose interests are in invariably made in gold and silver. But they would portant distinction. State laws, administered by their power. In the east, an energetic individual, be arbitrary, and according to the will and pleasure state courts, may perhaps control the latter. Banks in a subordinate and dependent province, is, at this of the government officers, they would be unequal are amenable to the laws, and may be compelled to time, making for himself a kingdom and a name. and unjust, and they would unavoidably lead to cor- fulfil their contracts. If their be a forbearance to- His reputation is already widely spread, and he is ruption. Examination and detection they would wards them, as there has been for some months enjoying the homage paid to fortune. But how is defy; for who can now pretend to ascertain or know past, it must be owing to a general sense of the ne- this effected? According to the statemet of travelwhether the gold and silver already received by the cessity and justice of their course, and an equally lers, he recruits his armies by forcing all the males government has been paid out in gold and silver, general conviction that the interests of the commu- of the country to bear arms, and his treasury by and whether a profit has not been made of it? If a nity require that it should not be disturbed. The exactions which have no reference to the ability of creditor has been paid, no matter how, his receipt law has not lost its virtue or its vigor; but those for the people to pay. Population is dwindling; the is a credit to the officer against an equal nominal whom it was made think fit, each for himself, to cultivation of the earth is failing from the want of amount of gold and silver. Is it unjust or unreason-waive its application, as he has a right to do. labor, and the insecurity of its fruits; miserable able to entertain a suspicion that such things may be The evil of a sudden contraction, and an insuffi- poverty and desolation are extending their gloomy done? There have been delinquent postmasters; cient circulation, caused by a measure of the fede- dominion; and a deeper barbarisin than prevailed there have been robberies in post offices by persons ral government, on the contrary, is one which the before, will be the final accomplishment of a barin the employment of the department. Within a few state legislation cannot remedy or relieve. It is barian, but high-sounding, ambition. The godays past, it has been publicly stated by a member beyond the reach of the power of the state ligisla-vernment, in this instance, is separated from the on the floor of the house of representatives, that a tures. Congress alone has power in the matter. people. The government takes care of itself, and certain custom-house officer was in the habit of tak- the legislative authority of the union can repeal the people are to take care of themselves. The ing receipts from laborers for more than he paid, and the measure; but can it heal the wounds which in maxim is a bad one. Its application everywhere obtaining from the government the whole amount the mean time have been inflicted, or repair the will be the same in kind, though it may not be in expressed upon the face of these false vouchers. damage which has been suffered? Assuredly not. the same degree. Facts and charges like these are an admonition not The mischief done must remain. And, besides, to furnish temptations to roguery. the acknowledgment of mischief working error is But it is believed, also, to be impracticable; be-one hard to make, and likely to encounter a strencause sooner or later, the people will take the mat-uous resistance, protracting and increasing the pubter into their own hands, and right themselves.lic agony. Should the resistance be overcome, the They would not submit to the injurious distinction, sum of the work is much misery and loss, of puband they ought not to submit to it, having the pow-lic and private sacrifice, for no good purpose. er to apply a corrective by election; more especial- Another expedient would probably be suggested, ly when they perceive that the distinction exists only because the government will not exert its unquestionable constitutional power, and restore the currency for the people as well as for the govern ment. for public, like private malady, begets restlessness and an inclination to resort to strange remedies: that is to say, the issue of government paper to supply the circulation. Such a paper, as has been remarked before, is inconvertible. The governRigorously executed, however, or relaxed, how inent cannot be compelled to redeem it. For this has it operated? how does it now operate? and what reason, it cannot be equal to gold and silver, nor in is to be its future operation? The banks are endea- any respect the representative of those metals. voring to resume specie payments, to make their Whatever it may promise on its face, it will be denotes equal to gold and silver. It is for the interest preciated in the beginning, and, according to the of the country that they should do so, as promptly quantity issued, will be more and more depreciated. as it can be done with safety. It is equally the in- Besides, if it be supplied in quantities equal to the terest of the country that they should not be preci- demand for circulation, it will entirely banish spepitate; for, to resume after a suspension, is always cie, not retaining even the quantity which the a delicate operation, which, if hastily or unskilfully banks are obliged to keep for their security, be performed, may cause much pain and suffering. cause the government would not be liable to deAbove all, it is important, when they do resume, mands for payment, as the banks are. There is a that they should not be in danger of being again strong temptation, too, to over issues, and nothing obliged to supend. The co-operation of the go-to restrain them, as the experience of alt govern vernment would enable them to resume. But the ments has shown. It is a covert mode of contractgovernment does not co-operate. It does worse. Its ing debt, which eludes public observation; and on attitude is absolutely hostile to the banks, and hos-that account, as well as the facility with which it tile to the resumption. It makes an extraordinary lis managed, is extremely seductive. A resort to it The means and machinery by which the purpose of the executive is proposed to be accomplished, are, in the mind of the minority of the committee, not less objectionable. The whole of the treasure of the United States is to be placed in the custody of officers appointed by the executive, and removable at his pleasure. This is, in the first place, a great scheme of patronage and of power, however it may be intended. If there be any who think that these are not already great enough, they will, of course, on that account, favor the project. Those, on the contrary, who are of opinion that the patronage is already sufficient, if corruptly employed, to interfere with the freedom of the elections, and to endanger the balance of the constitution, will be opposed to the establishment of a new corps of officers, spread over the country in numbers which cannot be defined, with new powers, and especially with the money power, in their hands. Still more will they be opposed to it, when they reflect upon the peculiarly corrupting nature of this power. It is represented that they will be few in number. So they will be at first; but what limit can be assigned for their increase? Besides, whether few or many, the whole power will be lodged with them; and the fewer there are of them, the greater will be each one's portion of that power. If the plan be rigorously and exactly executed, the surplus in the treasury, to be entirely of gold and silver, will be locked up from circulation. The people will have no benefit from it. They The first and the greatest argument, repeated in every variety of form by the president, by the secretary of the treasury, and by the committee of ways and means, is, that there has been an undue multiplication of state banks, an undue increase of bank capital and bank issues, a redundant circulation, and, as a consequence, unlimited speculation, terminating in commercial revulsions, and exposing us to violent fluctuations. In this general statement there are two parts, entitled to separate consideration. The first of them, namely, the undue increase of banks, of bank capital and bank issues, is one the minority of the committee are not inclined, as a matter of fact, to discuss. Let it be conceded, for the sake of the argument, that the statement is correct; then comes the inquiry, (which is most material.) Is this an inherent vice of the banking system, which cannot, by any constitutional means, be checked or restrained; or has it been occasioned by withholding or withdrawing a practicable regulation, and, at the same time, administering undue stimulants? will be injured by it, to the whole extent of the itself where it now is. Is that condition one which will be an inducement to multiply them? Spread cost of accumulating and keeping such an amount recommends itself, by its adaptation to the wants of the scheme over the whole United States, and at of inactive capital. The expense will be a dead the people, or by any capacity to give relief? If it every station plant along with it this motive for irloss, to be borne by them. be, let it be adopted. If not, let it be rejected.-regularity, partiality, and abuse; and it is impossiBut will the treasure be safe? This is another This is a plain, and, fortunately, an easy test. As ble to avoid believing that the growth will everyand a very great question. The minority of the this state of the fiscal concerns of the government where be the same. The administrators of the committee are fully convinced that it will not. has existed since May last, there has been time revenue will have an interest in keeping up the disOur own experience, a portion of which has been enough for it to manifest its healing virtue, and order in the currency, as a source of profit; and already alluded to, corroborates this conviction. there has been disease enough to employ all its they will have the power of promoting their interOther instances might be vouched. A melan-power to relieve. What relief, then, has it admin-est. Their harvest would be from disorder. Recholly example occurred within a few years past in istered? Will any considerate man venture to say store the currency-that is, the general currency— one of the states, where a character of established that the separation of the government from the and there is no such motive. integrity sunk under the strength of the tempta- people in the time of their distress, and the resort The minority of the committee feel that they tion of such a trust as is here proposed. No one to a hard-money system by the treasury, has done have already transcended the limits of discussion. can seriously believe that there is security where good? Will he call that a happy accident which has The subject is one of great scope and of vast imthere is an actual touch of money, with only a dis-led to these effects? To the minority of the com-portance, and admits of much more to be said; but, tant and contingent accountability. Vaults and mittee it appears that opposite conclusion would be having already occupied so much time, they will safes are no protection against him who has the much nearer the truth. The position taken by the hasten to a conclusion, only noticing two or three key. The Dutch are an honest and a frugal peo- treasury (whether excusable or not upon the ground of the most prominent arguments advanced in beple, and, withal, very exact and careful. Yet the of a necessary obedience to law, which they are half of the "independent treasury." gold and silver escaped from the vaults of the not disposed to discuss) was such as to aggravate bank of Amsterdam, where they had been placed the disorder, and so continues. Had the treasury by individuals, to be restored upon demand. come nearer to the people, and co-operated with Though called a bank, that institution had no them, instead of raising the value of coin, as has function but to safely keep the money intrusted to been done, there would have been a better prospect its charge, and to return it when called for; and of the resumption of specie payments and of the that function it did not fulfil. That confidence restoration of credit. While it stands out, and for a long time maintained the credit of its receipts. more particularly while it is a buyer of specie, and That confidence was found to have been misplaced, in open hostility with the banks, no one can see and the resort has since been to a bank of discount how a resumption is to take place, unless it be by and deposite. No method of security or accounta- a contraction of issues and withdrawal of bank pability, in short, has hitherto been devised, which per, ruinous to business and to all who are engaged has been found effectual and adequate in such a in it; nor how a resumption is to be maintained, if case; and, as the nature of man is not materially it should take place. What advantage can possibly changed, no such method can be relied upon. Is accrue from legalizing and perpetuating such a sysany new accountability proposed, of better pro- tem? Had the executive government confined its mise? An occasional examination is to be made by request to a sanction by congress of the past, such certain other executive officers. As against the a request might have deserved consideration. But executive, in the aggregate, this is obviously no it is too much to ask the adoption, as a system, of security at all. It is the executive examining it what has been any thing but beneficent in its opeself. There is no undue jealousy indulged in be- ration. lieving that it would be illusory. Nor can much In speaking of a resumption of specie payments faith be had in a plan whereby one officer becomes by the banks as a thing to be earnestly desired, the If the answer be that it is an inherent and insethe examiner of the conduct of another officer. If minority of the committee wish to be understood to parable vice of the banking system, which can there be not a mutual sympathy, inclining to in- mean a real and bona fide resumption, and not one neither be controlled nor regulated, it seems to dulgence, nor a natural confidence, quite inconsis-that is merely colorable. If a bank issue no paper, countenance the conclusion, that the cure is in the tent with a strict scrutiny, yet an artful man will or pay the checks upon it in notes of other banks destruction of the banks. But, however positively always be able, knowing when and by whom the which do not pay specie, such a bank is not a spe- this conclusion may by some have been adopted as examination is to be made, so to prepare for it, as cie-paying bank to any good intent, nor does it con a ground of recommendation and action, the public to elude its force or soften its rigor. In these re-tribute towards the restoration of the currency. To mind has always resisted it, and never more demarks there is no harsh imputation of extraordi-illustrate this matter, let us take the instance of the cidedly and unanimously than at this moment. It nary turpitude. Self-deception is quite as com- Bank of Washington, commonly understood to be was perceived at once, that the final question, inmon, if not much more so, than the practice of de-a specie-paying bank, and recognized as such by volving so much misery, was happily not yet ceit upon others. Men begin with deceiving the government. When a member of congress gets reached. There was a prior one to be considered: themselves, and then are driven to falsehood and a check upon that bank for his pay, does he receive namely, whether, even with this inherent evil tenconcealment; persuaded all the time that they gold and silver? No. Does he receive treasury dency, (if such there be,) the banking system is mean no harm, and that things will come right in notes? No. Does he even receive notes of the not better than any thing yet proposed in its place? the end. In almost all cases of delinquencies in Washington Bank? No, he does not. The Wash- Banks and banking have been much discussed and trusts, it will be found that the earliest steps are ington Bank pays him, in whole or in part, with the considered, and so has been the scheme of a hard taken under this sort of delusion. If they are notes of the Bank of the Metropolis, or the Patriot-money currency and an independent treasury. The taken with impunity, they lead to others, ending ic Bank, confessedly non-specie paying banks. people have not inclined to give up the former, nor at last in the consummation of wrong not intended; How is he better off, then, than if he had received to espouse the latter. and, only when it is too late, exhibiting the de-a check, in the first instance, upon one of those But it is very material further to consider, whepravity of the first deviation. The scheme now banks? or what beneficial distinction is there in ther the excesses of state banks have not been oc proposed, is full of this kind of temptation; and reality between these banks? It may be that the casioned by acts of the government destroying or where is to be found an assurance that it will not Bank of Washington charges the treasury with the refusing an adequate regulation, and, simultaneouswork the ordinary results? The losses, it is be- whole nominal amount paid, as so much specie; in ly, applying stimulants. As long as there remains lieved, must be great; the injury to morals not less, which case, that bank makes a gain of the differ-a doubt upon this question, the time has not arrived and, as a consequence, a rapid degeneracy from ence between the value of the specie and of the de-for considering the dreadful alternative of destroythe high standard hitherto maintained in the money preciated paper; but the creditor loses it. He pays ing the state banks. There is much more than concerns of the government. just as much as it would cost him to deal with a doubt. Within the last four or five years, a very These are some of the objections to the plan of an broker. As far as he is concerned, the only differ great change has been wrought by the executive, independent treasury; and, without going into oth-ence is this: a specie-paying bank is one which of a nature to remove all check and control, and at ers, which would extend this paper to an inconve- does not pay specie; a non-specie-paying bank is the same time to stimulate; a plethora (be it adnient length, the minority of the committee deem one which does not profess to pay specie: that is mitted) has ensued. The bones, and the muscle, them amply sufficient, if duly considered, to con- the whole distinction. The extension of such a and the nerves, and the sinews, are there, but the scheme throughout all the operations of the govern-vessels are overloaded; and the circulation, first What, then, they would ask, are the urgent moment, would, upon a much broader scale, come to quickened into unwholesome activity, is obstructed, tives for its adoption? What are the evils to be the same result. The debtor would be required to or bursts from its proper channels. The cause is avoided? What are the benefits that are promised? pay specie; the creditor would be obliged to take sufficient for the effect, and the effect is such as the Why must the country be precipitated upon a what he could get. The profit would fall to the lot cause would produce: sound philosophy would measure to which it has not assented, but has man of some intermediate person-a bank, or an indi-teach us that they are connected. ifested a strong aversion? Why are the people to vidual; and what would be gained by the unjust But, further; it is now nearly fifty years since the be outmarched by the government, and a strong sacrifice? Would it tend to restore the currency? government went into operation under the present position gained against them, from which they may Not at all, but the very reverse. What the coun- constitution. During forty years there was a nafor a long time be disobeyed and defied? try stands in need of, and the treasury too, is a gen- tional bank; between the first and the last bank, The most extraordinary of all the seeming argu-eral restoration; one weight and one measure for there was an interval of about five years; and since ments used in its favor, is, that it is already in ope- all; so that every man may have his due without the last of them ceased to be employed by the goration. Accident does sometimes mock the wit being obliged to pay for it. The plan of an inde-vernment, there have passed less than five years. of man by producing or disclosing contrivances pendent treasury is opposed to this; it will not per. During the whole term of forty years, there was no which human ingenuity would have been slow to mit a resumption to take place, nor to be maintained suspension of specie payments: in each of the peinvent, or perhaps would never have invented. It if it should." riods of five years there was: and in each of these is the part of wisdom to appropriate and employ If it should be said, that what is stated of the periods the suspension followed in about three them, when they thus present themselves. But the Washington Bank occurs but partially, or in some years. Here is a striking fact, throwing the light proof of their title to be espoused is, not that they instances, and is owing to particular circumstances, of experience upon our money affairs, to establish are the offspring of accident, but they are adapted the answer (if true) would only raise a new objec- that there is a practicable and attainable regulation, to a good useful purpose. It is precisely here that tion. This very partiality, this inequality in deal-which never has failed, and which never has been the argument fails. It is true that experiments, ing with creditors, is per se an evil, and is an ag-dispensed with, even for a short period, without a intended for a different effect, have terminated in gravation of all other evils. Besides, if there be a failure ensuing. throwing the currency and circulation into disorder, profit to be made from such casualties, (as there The report of the majority assumes, with confiand that, in the confusion, the treasury has found will be) does not every one perceive that this profit dence, that if the Bank of the United States had demn it. these points, they will content themselves with annexing a table made up from the best authorities they could find. As to the other, (the $1,254,424 lost by state banks,) it may suffice to remark, that the loss (whatever it was) was incurred before the late Bank of the United States came into existence. In conclusion, the minority of the committee have only to add that they are opposed to the whole scheme of a sub-treasury, or independent treasury, whichever name it may be called by, as fraught, in their best judgment, with incalculable mischief to. the free institutions of our country, and the prosperity of the people. JOHN SERGEANT. JOHN POPE. been continue l as the agent of the government, and of specie payments, if not destroyed, is, in their es- | recorded in former times, will excite surprise in exposed to the same trial as the deposite banks were, timation, weakened by the unavoidable want of har. those readers who have not paid attention to the the shock to commerce would have been more vio-mony among the state banks. This is no new re- subject, and ought to make us all grateful to that lent, and the suspension of specie payments would mark. Great efforts were made by the treasury, in providence which has brought us into life in a period have occurred at an earlier period. There would the former suspension, to bring the banks to a com- much less exposed to suffering than that in which be great difficulty in discussing a question as to what mon concerted action; but they were made in vain. our forefathers lived." would or would not have happened in a given state The necessary unity could only be effected by the As commerce and credit have grown, the comforts of things, which has not existed. It is, at best, but establishment of the Bank of the United States, and of mankind have been, in the same proportion, inconjecture; and the minority of the committee can the concurrent operation of the government and the creased. Crime and disorder have diminished, and only answer it by the fact, that a suspension never bank. Is not the same want of harmony percepti- the condition of all classes of society has been im did take place during the existence of such an agent. ble in other exigencies requiring the union of coun- proved, but especially of the laboring classes. And But the hypothesis of the majority, to which the mi-sel and of action? hence, also, the average duration of life is greater nority by no means agree, does not present the true The remaining part of the proposition we have than it was, by some years. A summary compari question. We are not now to inquire whether the been considering deserves also some attention. It son, collected from various authors, may be found in Bank of the United States, if brought into the cir-supposes that the banking system unavoidably leads | McCulloch's statistics of the British empire. cuinstances which obliged the state banks to sus- to speculation, to fluctuations, and to violent revul- To suppose, then, that credit is an evil, and pend in May, 1837, co :ld have avoided the catas- sions. This sounds very plausibly, but, when close- to suppose that a currency entirely of gold and silver trophe. The correct inquiry, and the material one ly examined, will be found to have little weight. will be security against fluctuations, is a great misto be answered, is, whether that state of circum- To begin with the first of these magic words-ina- take. To propose to legislate and to act upon such stances could have occurred if the agency of the gic, in the hold they take upon the feelings-is it a supposition, is to advise a retrograde movement toBank of the United States had been continued with-in the power of the government, let it be asked, to wards barbarism and its hideous calamities. It canout interruption. No one can believe that the his-prevent speculation, except by the exercise of an not be necessary to argue against it. We ought tory of the event is concentrated in the day or the authority incompatible with individual freedom? rather to feel grateful, as Mr. Jacob suggests, that month when it occurred, so that we need look no Every man must be the judge in his own concerns, we have come into life in so good a period, and further. There was a long train of preparatory oc- and will be so, in spite of all governinental exertions endeavor to preserve the blessings of civilization, currences, a mixing of the ingredients, a combina- to restrain him, as the fate of the specie circular commerce, and credit. tion of the elements, before the final explosion; and proves. After he is twenty-one years of age, it is The minority think there are some inaccuracies at last the spark fell, as if by accident, but really, his privilege to ruin himself, if he will, and to in- in details in the majority report, especially as to the though undesignedly, generated in the process.jure others, if they think fit to trust him. He may comparison of domestic exchanges in 1825 and 1837, Now, it must be very evident, in the first place, that be advised and counselled, but he cannot be con- and the alleged losses of the government by the if the agency of the Bank of the United States had trolled. He has a right to speculate, if he so incline. agency of the banks, which they intended particubeen continued, the laboratory itself, in which the To enterprise there is no restraint, but rather en-larly to notice. But they have already been carried prepa ation was made, would never have had a be-couragement; and unfortunate enterprise is usually to a length beyond what they intended, and feel it ing; neither would the materials. In that case, the called speculation. There is a further very serious necessary to come to a close. As to the first of deposites would have remained where they were, difficulty in the matter. The spring of enterprise and would not have gone into the deposite banks. and speculation is not within the knowledge, and not There would have been no inducement unreasona- within the power, of governments. If it were, bly to multiply state banks, or to increase their loans would they venture to lay their hands upon it? Many and issues; and if a tendency to such things had ap- a poor inventor spends his last dollar at the patent peared, it would have been effectually but kindly office, to buy a patent which will not save him from checked by a strong and friendly hand. There starving; yet who ever thought of discouraging inwould have been no occasion for the treasury to di- ventive ingenuity? Every lawful employment of rect the banks to give facilities, or to strengthen the human faculties is of the same nature, and, purthemselves, or otherwise to interfere with them.- sued with the same view, tending to excess, from There would have been no such accumulation of the influence of feelings, which are, nevertheless, public treasure in the state banks as was afterwards the necessary spur to exertion. Take then away, found there. There would have been no such trans- and industry is at an end. fer, as it may be admitted, by the way of managing Again, as far as rash speculation is supposed to be it by the treasury, produced very great disturbance. owing to a redundant circulation, has government There would have been no undue efforts to bring the power, or ought it to have the power, to check coin into the country, and make it the basis of a still it? In other words, if the problem be, what amount further increase of circulation. If, from expansion of circulation is necessary to carry on the business by the banks, there grew up (as has been alleged) of society, and to give suitable encouragement to mittee; and I concur entirely with them, that the over-trading, over-action, over-importation, and over- enterprise and industry, without begetting rash production of cotton, as its natural fruits - in a word, speculation, is government able to solve it, or ought a scene of wild speculation-it must be clear that, if government to be intrusted with its solution? It is this expansion had not taken place, these conse- just as easy to decide upon the distribution-how quences would not have ensued. But, further; if much is required for a state, a county, a town, or an the root of this expansion itself had not been plant- individual. ed, and nourished, too, by the government, there But much is said about revulsions and fluctuations, would have been none of its mischievous growth. as being aggravated, if not entirely caused, by the It may be said, in addition, that there would have banking system, or credit system. This is a hasty January, been no such speculation in public lands as to call and erroneous conclusion. A currency of gold and forth a specie circular to check it. There would silver will no more protect against over-trading, February, then have been none of those preparatory steps speculation, failures, fluctuations, and revulsions, which finally led to the suspension; and is it not rea- than a circulation of paper or credit. Let the south March, sonable to believe that there would have been no sea scheme and the Mississippi scheme be recollectsuspension? A strong institution, well administer-ed--the one in a nation where there was no bank, April, ed, with its finger upon the pulse of currency and and the other in a nation where a bank had been but exchanges, foreign and domestic, would have dis- recently established-and the allegation just made May, cerned the approach of danger, and guarded against must be at once assented to. So with respect to init. The great crisis in England, in 1825, was thus dividual failures; there were instances which, in averted from the United States. The exertions, at amount and extent, quite equal, if they do not surthat time, of the president of the bank, have been pass, any in more modern times. In Canton, too, several times referred to, as evidence of the immi- where the currency is silver, and there is no bank, August, nent peril the institution was in, with an intimation the failure of a Hong merchant has been no unusual that a little more pressure, and the bank must have thing. yielded. This is not doing justice either to the bank As to fluctuations in price, they were far greater or its president. They did turn off the fury of the in former times, when there was nothing deserving October, storm from the United States, and, therefore, their the name of commerce, no credit, and a currency measures were sufficient for the purpose. That they entirely of gold and silver, than they now are. And had not others, and stronger ones, in reserve, if the they were infinitely more distressing; for they fell occasion had called for them, is an inference that is directly, and with all their weight, upon the necesquite gratuitous, and seems to be unjust. The presi-saries of life. From a table compiled by Mr. Jacob, dent had scarcely been long enough in command of in his "inquiry into the production and consumption the fine vessel intrusted to his care, even to under- of the precious metals," it appears that the varia- January, stand her trim, and still less to know all the shoals, tions in England were such as to produce intense and currents, and storms of the difficult navigation suffering. In the 12th century, the price of wheat February, through which he was to conduct her. And yet, varied from 2s. a quarter (money of that time) to with a gallantry and mastery worthy of all admira- 18s. 2d. In the 13th century, it varied from 18. 6d. March, tion, he not only carried her safely through, but, ie 1213, to 1. 4s. in 1257. In 1258 it rose to 2l; "a with her, the whole fleet of state institutions. Not great famine," Jacob says, "when many people were a spar was sprung, nor a rope-yarn strained. The starved." It 1270 it rose to 47. 16s.; "a famine," it crisis of 1836-7, if the minority of the committee is added, "when provisions were so scarce that pabe right, could not have occurred, if the measures rents did eat their own children," and sometimes was June, already referred to had not been adopted; and it is sold at 6l. 8s. In 1288 it was down to 1s. 6d.; and therefore impossible to answer whether the late Bank in 1289 to 1s. 4d., to 1s., and to 8d. In 1317 it was July, of the United States, in its former strength, could at 21 4s. before harvest, and after harvest at 14s. In have lived through it. There is a remark, however, 1557, before harvest, the price was 21. 13s. 4d., and August, in the report of the majority, which throws some after harvest 5s. Mr. Jacob very well remarks, that light upon the question. The hope of a resumption "the instances of the variation in prices which are September, I do not concur in all the views expressed in the above report; but I concur, generally, in opinion with the other members of the minority of the comproposed measure of an independent treasury is fraught with incalculable mischief to the free institutions of our country, and the prosperity of the people. ABRAHAM RENCHER. Rates of exchange between New York and the following named places. June, July, November, BOSTON. (1825 par. 1837 1825 par to 1-4 discount. 1837 1825 par to 1-2 par to 1-4 66 1837 par to 1-2 1325 par to 1-4 1837 par to 1-2 46 October, 1826 1-4 to 1-2 1826 1-4 to 1-2 December, is wanting. ON BALTIMORE. 1826 1825 3-4 to 1 1-4 66 March, February, March, 1837° 4 to 5 April, June, May, June, July, August, 1837 4 to 5 September, October, November, 1837 4 to 5 66 December, is wanting. ON CHARLESTON. December, January, February, February, SAVANNAH. March, 1837 April, May, 1837 1837 2 1-2 to 3 66 August, 1826 April, October, 1837 4 to 5 66 December, is wanting. 1837 4 to 5 66 ON SAVANNAH. January, 1833 2 1-4 to 3 1-4 August, February, February, September, March, 1837 2 1-2 to 5 66 May, 1826 3 to 4 66 November, June, December, 3 1-2 to 4 66 1826 November, 3 to 4 discount. January, discount. December, is wanting. par to 1-2 1837 5 to 7 66 February, 1833 March, 1826 1837 5 to 7 66 March 1 to 14, 1833 1826--the "list" for December, 1826, The above are derived from the "Shipping and Commercial List and New York Prices Current," publish 1826-the "list" for December, 1826, ed twice a week at New York. The rates given above are the highest and the lowest in each month. The greatest fluctuation in any one month, is in the rates of March, 1838, on Savannah; 1-4 to 3-4 per cent. discount. thus: March 3d, 3 per cent. discount; March 7th, 5 per cent. discount; March 10th, 7 1-2 per cent. discount; March 14th, 9 per cent. discount. TWENTY-FIFTH CONGRESS. SECOND SESSION-SENATE. April 26. Mr. Clay, of Ala., presented a remonstrance signed by a delegation of Cherokee and Choctaw Indians from the west of the Mississippi, against the establishment of a territorial government west of the Mississippi, for which a bill now in 1826-the "list" for December, 1826, progress in the senate provides, which bill, Mr. per cent. discount. Clay gave notice, he should move, when it should come up, to lay on the table at least till the next session of congress. The remonstrance having been read, a debate ensued between Messrs. Tipton, Clay, of Alabama, White, and Sevier; after which it was laid on the table and ordered to be printed. [The remonstrance and debate shall have a place hereafter.] The following, among other business of minor importance was next disposed of. On motion of Mr. Wright, the committee on finance were discharged from the further consideration of the senate resolution in relation to a general remission of duties on railroad iron. Also, of two memorials from the chamber of 1826-the "list" for December, 1826, commerce in New York, in favor of a warehousing system, inasmuch as the plan proposed by that chamber did not accord with the views of the comdiscount.mittee. Also, of a senate resolution, in regard to repaying to merchants of Mobile the extravagant fees paid by them for renewing their duty bonds, the committee believing that they could not recommend the passage of a law on this subject, unless it should be general. On motion of Mr. Williams, the committee on naval affairs were instructed to inquire into the expediency of repealing or modifying the act of March, 1837, in relation to the navy pension fund. Mr. Benton, from the committee on military affairs, reported a bill to pay certain volunteers of 1326-the "list" for December, 1826, Missouri. Read, and ordered to a second reading. ON MOBILE.. 5 1-2 to 7 per cent. discount. The senate resumed the consideration of the bill to establish a board of commissioners to hear and examine claims against the United States. The discussion, mainly on the general merits of the bill, was continued by Messrs. Prentiss, Bayard, Linn, Hubbard, Tipton, and Buchanan, in favor of discount.it; and by Messrs. Norvell, Calhoun, Wright, and Morris, in opposition. 7 1-2 to 10 per cent. discount. On motion of Mr. Bayard, the bill was amended so as to require the cominissioners to reside at the seat of government, and also to give them authority to punish contempts to preserve order in their sittings. Mr. Tipton moved to reduce the salary of each commissioner from $3,000 to $2,500, which was 1826-the "list" for December, 1826, briefly debated and negatived, as follows: YEAS-Messrs. Brown, Clay, of Ken., Lumpkin, Norvell, Prentiss, Sevier, Sinith, of Conn., 2 to 3 per cent. discount. Smith, of Indiana, Swift, Tipton, White, Young 2 to 3 1-2 |