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by the character of the measures recommended in the message of the Chief Magistrate, he could not permit the occasion to pass without the expression of his sincere regret that language of that character had fallen from any Senator on that floor. The Government of the United States had been spoken of as something alien to the people who were its constituents. Gentlemen surely forgot the principles and theory of our Government, and imagined them selves engaged in combating against a Government of irresponsible powers, and claiming no origin from, or sympathy with, the public will. What, he would ask, was the nature and character of that Government, which it was in this way attempted to rouse public prejudice against, and to induce the belief that its interests were distinct from the great body of the people? Was it not an emanation of that popular will, which it was now sought to turn against it, imbued with the same feelings, and interwoven with the best interests and dearest rights of the great body of the people? Was it to be regarded as a crime, that means should be taken by those sent here to legislate, and by the Executive, whose province it was to see that the laws are executed, to continue the Government in its regular and constitutional action? Heretofore, we had been taught that the preservation of our system of government in its constitutional action, while it was by far an object of higher interest and more universal concernment than any other to every citizen, was at the same time the first and highest duty of patriotism. Language of the kind to which he had alluded had unfortunately been too common among a certain political party in this country; the effect of it was, to produce dissatisfaction in the public mind, and | prepare the way for the overthrow of our system of government, by inducing the impression that there is no identity of interests between the people and their own Government. It was not the part of an American statesman, in his humble judgment, to use language calculated to bring the Government into disrepute at home, and to degrade it in the estimation of foreigners abroad.

[SEPT. 15, 1837.

taught by the highest and most revered names on the list of our statesmen. He, therefore, repudiated the doctrine of legislative nostrums to relieve classes who were embarrassed, and believed that such things must mainly work out their own cure; that being the only sure, and effectual way of remedying the evil.

While gentlemen in the opposition were so unsparing in their censure against the measures proposed by the administration, they had not condescended, in the plenitude of their skill in curing diseases of state, to propose the panacea which they were ever and anon obscurely hinting at. Without intending to dictate a course of public conduct to them, he must be allowed to say, that when gentlemen condemn so freely the policy and plans of others, they thereby assume an obligation, as faithful representatives of their constituents, to furnish a better, and not to confine themselves simply to a line of condemnation.

He (Mr. B.) did not see in the condition of the country the alarming symptoms and dangerous crisis which had been described in such dark and gloomy colors, and which, however well intended the motives doubtless were that prompted them, were but little calculated, in the present tremulous and sensitive state of public confidence, to allay the evils arising from pecuniary embarrassment. He did not believe that the nation had fallen into the "Slough of Despond," as the gentleman from South Carolina [Mr. PRESTON] had said. It was true that embarrassment had been severely felt in the commercial community, and among other classes who had overtraded and engaged in ruinous speculations; but the great mass of substantial citizens, agriculturists and others, he believed were unaffected, except by the banks having suspended specie payments, which they had done with, he believed, a larger aggregate proportion of specie than they had at any time before possessed. Looking to the condition of our country in contrast with others, he saw no reason to despair, but much to congratulate ourselves on. With no national debt weighing on our resources; with a population possessed, to an unexampled degree, of the means of human subsistence and happiness; with a country of unlimited capacity for the production of every thing essential to supply its wants and comforts; and, above all, remembering that our free and noble institutions yet survive, who does not feel that we stand in proud and gratifying contrast with any other nation? Checked in its prosperity, it might be, for a short time, by the causes which had operated, on both sides of the Atlantic, to produce an imprudent extension of the credit

As to the idea of legislative relief to the country, of which so much had been said in the course of this debate, he must confess that he had but little faith in it. It was true that Congress might, and probably would, grant indulgence to such of the merchants as were debtors to the Government, and required it; and might adopt some other measures affording some incidental benefit to the country; but as to the idea of a legislative remedy to relieve it from its embarrassments, it was, in his opinion, not only impracticable, but at variance with the principles of our Gov-system; but he denied that the substantial resources of the ernment. What, he would ask, did gentlemen mean by the relief which they had so often spoken of in the course of the debate? Was it that men should be legislated out of debt, who had most improvidently plunged into gambling speculations? Was it that banking corporations should in some way be favored, by our legislation, at the expense of public rights? They had not spoken out as to the measures of relief, on the virtue of which they seemed so much to rely. He ventured to predict, how ever, whenever these measures of relief were proposed, although they might be brought forward professing to be in the name and for the benefit of the people, they would turn out to be a plan to relieve certain classes at the expense of the great mass of the people. The true doctrine under our system, if he had rightly comprehended it, was for Government to extend its powers no further than to protect individuals in their personal rights and lawful acquisitions of property against fraud and violence, leaving each in the enjoyment of the rewards of his own industry, and to pursue his own happiness in his own way. When Government undertakes to do more, and to interfere in the private pursuits of men, it must of necessity, in endeavoring to relieve one class, violate the rights of another, by doing it at their expense. Such was the doce that had been

country were even touched by the events which had happened in the last six months. Many individuals, in commercial and other pursuits, had fallen beneath the pressure of the times; others, perhaps, would share the same fate. Property had, and would, he did not doubt, in very many more instances, change proprietors; but it would still remain in the country, leaving us in possession of all the substantial elements of individual happiness and national greatness. He saw nothing in the present crisis to pro.. duce despondency, but much to animate our hopes, in looking through the perspective of the future. No country on earth, he believed, possessed, in a higher degree, the faculties of self-recovery. Its onward course might be retarded for a very short period, but could not be arrested by the causes now operating.

He could not admit that the country was so absolutely dependent on banks for its prosperity, as was supposed by

some.

As a citizen of this republic, he should feel humiliated to make such an admission. The true sources of its prosperity are to be found in the enterprise and industry of our citizens; in the inexhaustible natural resources in which it abounds; and in our free Government, which, by protecting each citizen in the enjoyment of the fruits of his labor, quickens enterprise and invigorates exertion. Not

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withstanding these views, he was, however, far from either expecting or wishing the abolition of the paper system; the most that could be effected was, to subject it to salutary restrictions, by lessening its capacity to do mischief, and to infuse into it a greater proportion of metallic currency. These correctives could be applied only by the joint agency of the States and the General Government, which were demanded as well by the public voice, as the best interests of the country. He repeated, therefore, that he saw nothing in the condition of the country to inspire alarm-nothing that the public virtue and intelligence were not fully able to meet, and in a short time to overcome. For this we had the best guaranty in the abundant capacity which the nation had shown to rise above all difficulties, in seasons infinitely more trying than any to be found in its present condition.

Mr. WALKER said, without discussing at this time the great question debated by the Senator from Massachusetts, [Mr. WEBSTER,] in regard to the paper currency of the country, and the supreme control which he claims on this subject, and all that relates to it, for the Government of the United States, he would proceed at once to the inquiry now before us-whether it would be proper to postpone paying over to the States the last instalment under the deposite act. This instalment amounted to a sum exceeding nine millions of dollars. The report of the Secretary of the Treasury informs us that the money is not in the Treasury to pay the instalment. Even in the event of the postponement of this deposite with the States, there is still a deficiency in the revenue, which the Secretary asks to be supplied by the emission of Treasury notes. It is, then, obvious, that if this instalment is to be paid to the States on the 1st of October next, it can only be effected by an emission of an additional amount of Treasury notes bearing interest; or, in other words, by the creation of a new national debt, arising from a new loan, in order to deposite the amount for safekeeping with the States of this Union. Disguise it then as we may, the refusal to pass this bill is a determination on our part to borrow more than nine millions of dollars on the credit of the United States, to be deposited for safekeeping with the States of this Union. The constitution authorizes us to borrow money on the credit of the United States-but for what object? Clearly for no other than to carry into effect the powers delegated by the constitution. But that this Government could borrow millions, without limitation as to the amount, for the purpose of depositing it with, or distributing it among, the States, was to clothe this Government with the most alarming and despotic powers. If this Government can make such a loan for such a purpose, the taxing power is unlimited; for by taxes only can it raise the money to refund what it has borrowed. Mr. W. said he was one of a small minority of six in the Senate who had voted against this deposite bill. He had then predicted the disastrous consequences that he thought would follow from the passage of this bill; and his worst fears would be realized, if now, when there was a deficit in the Treasury, when many of the public creditors had to be paid in protested drafts on broken banks, a surplus was created by loans, for the purpose of distributing among the States of the Union.

Mr. W. said he well knew the voracious character of the surplus spirit; that it was ready to keep up the tariff, to keep up the price of the public lands, and to refuse all relief to the settlers of the West, for the purpose of creating a surplus for distribution; but he could scarcely have believed that now, when we must in any event replenish, by loans, an exhausted Treasury, new loans would be asked for to the amount of nine millions for distribution-loans to be refunded, if not from the lands of the West, from the tariff; by which Mississippi, now nearly the greatest exporting State of this Union, will receive but about one-fourth as much as she will be compelled to refund by the operation

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of the tariff-reducing the price of her great staple, to enrich the incorporated monopolists of other sections of the Union. Mr. W. said he must be blind indeed, who did not perceive that to raise, by loans, nine millions for deposite with the States, is, to the extent of nine millions, to render it necessary to augment the tariff. It is true, we talk of getting back this money from the States; whilst a majority of the Senate-as he (Mr. W.) thought most unwisely-have just taken from the Secretary of the Treasury the authority which he possessed, under the deposite act, to call upon the States to refund any portion of the money already deposited. And now he (Mr. W.) predicted that Congress never would make any requisition upon the States for this money, but that, when it was wanted, the South would be compelled to raise it through the operation of the tariff. Could any man doubt this result, when so bold an effort was now made to induce the Government to borrow money to pay the last instalment to the States?

But the Senator from South Carolina [Mr. PRESTON] tells us that we can obtain this money for deposite among the States by repealing some of the appropriation bills. Sir, the Senator from South Carolina [Mr. CALHOUN] has most clearly shown the impossibility of obtaining a repeal of laws partly executed, passed by large majorities in both Houses of Congress. But if the appropriation bills were repealed to-morrow, to the extent proposed, it would not put one dollar in the Treasury, now exhausted; nor enable the Government on the 1st of October next, now at hand, to deposite these nine millions with the States of the Union; for, in the calculation of the Secretary of the Treasury, the expenditure of fifteen millions of these appropriations is postponed till next year. But we have been told by the Senator from Massachusetts, [Mr. WEBSTER,] that this amount may be paid to the States by the money in the deposite banks, whose paper would be gladly received by the States in which they are located. It has been already shown by the Senator from New York, [Mr. WRIGHT,] that the entire money now in the deposite banks, subject to new drafts, is not enough, by more than a million, to meet the required amount of the last deposite instalment; but if it were enough, let us examine the effect of this proposition. It is to pay the States in the paper of the deposite banks, by new issues of paper by those banks to an amount exceeding nine millions of dollars; to pay out, in other words, more than nine millions of depreciated bank paper, issued by banks that have suspended specie payments. And is this the relief the Senator from Massachusetts would extend to the community? Sir, (said Mr. W.) nearly all the embarrassments of the community have been occasioned by the vast over-issues of paper by the banks-paper which they cannot now redcem in specie, and which has depreciated from ten to thirty per cent. in various sections of the Unión. Is it not clearly perceived that this would greatly increase the embarrassments of the community? that it would add greatly to the present enormous mass of depreciated paper? that it would still further depreciate all the paper of all the banks making the new emissions; postpone for a long time, if not indefinitely, the resumption of specie payments by the banks, by augmenting nearly one-third the amount of their depreciated paper; and thus, also, disable them from extending the least indulgence to their debtors by this vast increase of their circulation; imposing the correspondent obligation of calling in their debts as rapidly as possible to the same amount? If (said Mr. W.) this proposition of the Senator from Massachusetts be a part and portion of the plan of the opposition for relieving the embarrassments of the country, he had no curiosity to hear the remainder of their proposition.

Mr. PRESTON rose in reply to the two last named. He said he would restate some of his objections to the bill before the Senate, because he had been misapprehended by Senators. He had not said-nor did he intend to permit

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himself to be represented as having said—that he thought it better to create a national debt than to recall the money deposited with the States. He had presented no such proposition. But he did say that he would execute the deposite law in good faith; and if the Treasury should be empty, he would then draw on the State deposites, in the time and manner prescribed by the law. He had, therefore, taken the ground that the Treasury was not empty, except nominally; because not only was the money deposited with the States virtually in the Treasury, but the extravagant unexpended appropriations of last session constituted a fund on which Congress ought now to draw; and Mr. P. proposed that Congress should do this. Six millions more than was called for by the department had been appropriated, and Congress had thus become the principal actor in this prodigality. But further: there was other money in the Treasury which should be taken, rather than to withhold this from the States, or to create a national debt. But if this were not so, the bill now presented is not the proper alternative. If it be necessary now to draw upon the deposite fund, do so according to the provisions of that act, which enables the Secretary, whenever the Government stands in need of money, to call upon the States for it, giving due notice of the demand. Without the stipulalation to draw only upon notice, the States might not have consented to receive the deposites; for it would be obviously burdensome to be prepared at all times to pay millions on a draft at sight. It is not keeping good faith with the States, therefore, to stop this fourth instalment, which they have used in anticipation of its receipt, upon so short a notice-indeed, without notice at all.

[Mr. MORRIS was here understood to say that there was no such understanding with the States.]

It was strange (Mr. P. said) if there was no such understanding. He had taken it for granted that the States would get it; and the States certainly had so taken it for granted. If it were not so, why had Virginia, New York, Kentucky, and other States, already used this instalment? The law was explicit that the money should be deposited with the States; and all its other provisions related to the manner of investing and withdrawing it, without any intimation of its being withheld in any event. Under the faith of this law, the States had a right to make the arrangements which they did; and Congress ought, in equi ty and good faith, to conform to the provisions of that law accordingly. On the supposition that there were no other funds in the Treasury for the use of the Government, Mr. P. would suggest that this bill ought not to pass, but that the prior instalments should be called for. Take openly the responsibility of recalling the deposites; and appropriate them, not to pay a debt, but to pay for harbors, fortifications, and other matters on which money had been squandered for the sake of being squandered. Let the States, the people, the masters of Congress, know clearly what Congress were about.

And if this money was to be withheld from the States for such purposes, how was it to be obtained? By crushing the banks? Mr. P. was gratified to hear that the Senator from North Carolina [Mr. BROWN] and his constituents were not dependent on the banks. But Mr. P. said that in his judgment a very large amount of property, and, indeed, the general prosperity of the country, would be endangered by the ruthless war which, for political purposes, was now to be waged against State institutions. They are denounced by the administration-threatened with a bankrupt law applicable to them alone; and now it is proposed to put them all at the mercy of this administration-within the reach of its menaces-by transferring nine millions of debt due by them, from the States, who are their guardians and protectors, and participate in their prosperity or adversity, and would therefore relieve them as far as practicable, to this rash and hostile Government.

[SEPT. 15, 1837.

Go (said Mr. P.) to these States for this money-recall the first instalment-take the responsibility-come out boldly, and demand it back; but do not smuggle it from them-give them the notice required by the law, and recall it in such sums, and at such times, as the law specifies. My word for it, they will repay according to the law; and they will see that other States pay it back, too, if the Treasury requires it.

I concur with the Senator from North Carolina that it is unconstitutional to borrow money or lay taxes for the purpose of distribution or safekeeping. I was not guilty of any such absurdity. Neither, sir, am I disposed to do so for any further financial experiments. The gentleman exclaims, No more nostrums for him! He is not disposed to take up with any of these nostrums. Sir, we have had nostrum after nostrum. The body politic has been in hot water, bled, dieted, depleted; and is now reduced to a state of great debility. The gentleman now repudiates nostrums; but does he do it truly? O, yes! We have had, and yet have, the best of currencies-a noble experiment, by which the body politic was to be cured of all its diseases! And so it has been, the gentleman always said, up to the present session of Congress. The body politic has been cured, invigorated, expanded, by the glorious pet-bank

nostrum.

And now the honorable gentleman is for tonics-the aqua regia-the gold currency-to the exclusion of paper money. Sir, I am tired of all this. Changing the experiments will not do. I wish to change the experimenters, who have broken and blown up their whole laboratory, to the destruction and ruin of the country, and who now propose to build up a new system of experiments on the fragments and ruins of the past.

I wish, sir, I could concur with the Senator when he says the condition of the country is not so bad, after all, as it has been represented. I wish he may be right. But is it prosperous? It is not long since the people of this country raised an exclamation of joy, from all quarters, at the apparent prosperity of the country, which, like a majestic ship, was sailing gloriously onward on the smooth, glassy, peaceful surface of an unbounded ocean; but, while they look, it is foundered, sunk, gone, overwhelmed in a moment by the very element on which it appeared so lately riding triumphant.

But the gentleman says he regrets to hear us speak of the Government as something foreign, alien, hostile to the people. Sir, I was not aware that I spoke in that manner, though I had good cause to feel that its action was severe, at least on my portion of the country. But I am not at all in favor of its being alien or foreign to the States.

I am in favor of a Government and an administration that will identify the interests of the country with its own, and share the destiny of the people. But let those themselves beware, who are so earnest to procure from the people support for Government, lest the Government, not touching favorably the States and people in return, should force them from that position of identity of interests and mutual dependence; and the Government, like a huge engine turned from its proper and legitimate course, should run over and crush beneath it the States and the people. We who are the advocates of State rights are not liable to censure in that quarter.

Mr. P. concluded by remarking that it did not belong to him to make any distinct proposition, or to bring forward any specific plan of action. He did not appear here as a builder up, or as an architect in any political measures. He belonged to a small minority, which had it not in their power to carry into effect any object, however valuable or beneficial to the country. All he could do was to point out errors in the building which the majority were carrying up. He might tell them where any defect might lie; he might show where their plan was

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defective, or their foundation unsteady, or the capital out of proportion to the shaft, or where the corners wanted polishing and rounding off. This was all he could do; and even this he well knew would be done in vain, for he did not expect that those gentlemen (who, being in the majority, carried every thing their own way) would be inclined to listen to the advice, or to profit by the admonitions of himself and other members of a small minority. But he would entreat that majority not to be rash or precipitate in their course; not to sacrifice the public good while they triumphed in the exercise of their power; not to lay heavy burdens upon the States, when the absolute necessity of doing so was not very apparent. He entreated them to adopt the best plans to effect the objects they had in view. For the object now in view, he concluded by saying this bill did not appear to him to mark out the best plan.

The question was then put on the passage of the bill, and decided as follows:

YEAS-Messrs. Allen, Benton, Black, Brown, Buchanan, Calhoun, Clay of Alabama, Fulton, Grundy, Hubbard, King of Alabama, King of Georgia, Linn, McKean, Morris, Niles, Pierce, Rives, Roane, Robinson, Ruggles, Sevier, Smith of Connecticut, Strange, Walker, Wall, Williams, Wright-28.

NAYS-Messrs. Bayard, Clay of Kentucky, Clayton, Crittenden, Kent, Knight, Nicholas, Norvell, Preston, Robbins, Smith of Indiana, Southard, Swift, Tallmadge, Webster, White, Young-17.

So the bill was passed, and sent to the House of Representatives for concurrence.

TREASURY NOTES.

The bill authorizing the issue of Treasury notes was next taken up as in Committee of the Whole.

Mr. WRIGHT moved to fill up the first blank in the bill with the word "ten," thereby making the amount of notes to be issued ten millions of dollars.

Mr. W. said that it had not been possible for the committee to know the amount of the notes necessary until action had been had on the bill to postpone the fourth instalment to the States; which bill having now passed the Senate, he was able to fill up the blank. He had had an interview on the subject with the Secretary of the Treasury, and he had learned from that officer that, on the supposition that no more extension would be granted than was proposed by the bill for extending the duty bonds, he had thought the sum of eight millions would be sufficient. This was, however, on the supposition that the Bank of the United States would pay in October the instalment then due to the Government by that institution. But it was understood by the Secretary and the committee that this would not be done, that bank having bought up Treasury drafts issued in July for the payment of the third instalment to the States, and intending to give in those drafts in payment of the instalment then due from the bank. This being the case, the Secretary would require that the blank be filled up with nine million five hundred thousand dollars; and therefore, on this calculation, the committee had instructed him (Mr. W.) to move for ten millions.

Mr. CLAY, of Kentucky, was very desirous of obtain ing more full information relating to one point; and that was, that as a bill had now passed the Senate for arresting the payment of the fourth instalment to the States, and since the fund intended for the use of the States was now to be applied to the use of Government, if it was intended to employ the funds in the banks before being reduced in some way or other to a specie basis, whether Government intended by laws passed, or to be passed-such, for example, as a bankrupt law-to force the conversion of the funds now in the banks into metal, and then throw the sum thus obtained from the banks into the Treasury, there

[SENATE.

to lie without being used? His inquiry was not, he thought, useless, since it must be evident that the amount of the blank must depend upon the availability of the funds in the banks.

Mr. WRIGHT said it had been ascertained, and was so stated in the Secretary's report, that all the money in the banks subject to draft on the 28th of August last amounted only to eight million one hundred and sixty-six thousand dollars. Out of that sum the expenses for the month of September were to be taken, which would leave the sum reduced to about two millions and a half by the 1st of October. But, if the outstanding drafts should come in on the Treasury, (many of them being protested,) in that case the available amount would still be diminished, and the Treasury would be in want of means. There were, therefore, no ready means without the assistance of Congress. In all the Atlantic coast, the money in the banks had for the most part been withdrawn, (only a small sum subject to drafts being with them-say less than a million,) and creditors were not willing to receive drafts upon the Southwestern banks, where now almost all the funds in deposite with banks were placed.

Such being the case, and such the amount of unavailable money, the object of issuing Treasury notes was to anticipate the funds in deposite with the banks until Congress should say how those funds were to be made available. The Committee on Finance had reported a bill giv ing to those banks intervals of two, five, and eight months in which to pay the sums due; dividing the balance in their hands into three instalments. Again: the extension granted already, and proposed still to be granted, on bonds, would diminish the means of the Treasury; from all which considerations, the issue of these notes was rendered necessary to meet the current expenses.

Mr. CLAY, of Kentucky, professed himself greatly obliged by the valuable information communicated by the honorable Senator, [Mr. WRIGHT;] but he still felt that the inquiry which he had wished to make was not yet answered. He meant to inquire if the money in the banks was to be used as bank-notes, or if the banks were to be compelled to pay them in specie; and then, if these funds were to be left idle?

Mr. WRIGHT, in reply, said they would not be used as bank-notes unless the law should authorize them so to be used.

Mr. CLAY: Then it comes to this: we have passed a bill to take funds out of the hands of those who would have been glad to use them, to put them into the hands of others who refuse to acknowledge and make use of them. The States would have been glad to receive this money in the shape of bank-notes, and we have taken it from them. Again: Government refuses to call them funds in that shape; and to Government we have now made them over by the bill just passed! And as Government, though it receives those funds, and prevents their being paid to the States, will not acknowledge them as funds, there is a deficiency existing; and this deficiency is to be supplied by issuing Treasury notes, in order that Government may be able to get along. That is to say, Government will not receive the paper of the country, and is about to create a paper of its own, which the country is expected to receive! And thus, all the promises which have been made to us of the flowing of gold and silver all over the country-these promises of a better currency result in the issue of ten millions of paper money!

Mr. KING, of Georgia, read to the Senate a statement and estimate of some length, which was inaudible in the reporter's gallery.

Mr. WRIGHT then moved to fill up the second blank in the bill with the words "not exceeding twenty thou sand dollars." This sum, Mr. W. explained, was intended to defray the expenses incurred by the execution of

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the act, and was made upon an estimate of the bill of 1812. Agreed to.

Mr. CLAY, of Alabama, moved to insert a provision that Government should not be permitted to make any pur chase of these notes in the public market below par.

Mr. WRIGHT could see no possible objection to this amendment.

Mr. CLAY, of Kentucky, saw a great objection to such an amendment. He thought the country should have the benefit of the market as well as individuals; when, from an excess in the market, the number was too great, and the price had fallen below par, then was the very time for the Secretary to go into the market and purchase. The commissioners of the sinking fund had acted in this way, and the country had reaped the benefit of it.

Mr. CLAY, of Alabama, grounded his amendment on the principle, that, as it would be disreputable for individuals to buy up their own notes at a depreciated value, so also it would be disgraceful for Government to do the same thing.

The amendment offered by Mr. CLAY, of Alabama, was then agreed to.

Mr. CRITTENDEN was understood to call upon the chairman of the Committee on Finance for some explanation relative to the payment of clerks to be employed; which payment, by the provisions of the bill, is left discretionary, as to the amount of salary, with the Secretary.

Mr. WRIGHT explained the necessity of leaving this matter at the discretion of the Secretary, since it was impossible to say for what length of time the services of the clerks might be required-whether for a year, or less than a year.

At this stage of the bill, Mr. CALHOUN expressed a wish that a postponement of the bill until to-morrow might be allowed, for an examination into some points.

Mr. WRIGHT made a few observations, expressing his assent to Mr. CALHOUN's proposal.

Mr. WEBSTER said he earnestly hoped that, whatever other delay occurred, no delay whatever would be permit ted to be had on the bill for the extension of merchants' bonds; but, to give the time requested by Mr. CALHOUN, he moved an adjournment; and The Senate adjourned.

SATURDAY, SEPTEMBER 16. TREASURY NOTES.

The Senate resumed the consideration of the bill authorizing the issue of Treasury notes.

Mr. CALHOUN said he had turned his attention to the bill, but had found great difficulty in bringing his mind to a satisfactory conclusion respecting it. The very point which the Senator from Massachusetts so much approved (allowing interest) was one which constituted an objection to the bill, in the view of Mr. C. Neither was he satisfied to give up his opinion to any one scheme, till he understood what was to be done on the great point involved in the subject of this bill, namely, the separation of Government from all banks. All ought to verge to this point, even if considered as a measure of relief. As the law now was, the Secretary of the Treasury was compelled to receive the notes of all specie-paying banks. Of course, when specie payments should be resumed, all would be received. If this should occur, and if Congress should adjourn without altering the law, the result would be, that the Government would, under the sub-treasury system, have the custody of the money, but would collect it in bank-notes. it was intended to restore the connexion between the Government and the banks, this bill ought to be different; and if it was not so intended, it still ought to be different. Mr. C. could support it as it was, in neither alternative.

If

But he designed to move an amendment to this bill,

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[SEPT. 16, 1837.

which would serve as a testing question, whether it was the object or not to make a separation between the banks and the Treasury. If it was intended to make such separation, now was the acceptable time. And if it was not done now, it would perhaps never be done. The question was one of great magnitude; and Mr. C. therefore hoped that the subject would be postponed till Monday, by which time he hoped to be prepared to offer the amendment which he had indicated.

On this great point Mr. C.'s opinion had been long made up; and he believed, firmly, that the only alternative was a separation from all banks, or a Bank of the United States. He had so declared it in the debate of 1834, and he had never seen any reason to change his opinion. On the contrary, the catastrophe at the present time had greatly confirmed that opinion. In his view, it was one of the greatest questions that had been, or that could be, presented to this body. And, further, it was due to the country, to themselves, and to posterity, that gentlemen on all sides should meet this question openly, boldly, and decidedly. He entreated them to show their hands, as Mr. C. would show his, and go on with the question. He moved to postpone the bill till Monday.

Mr. WRIGHT said he was not disposed to deny to the Senator from South Carolina any opportunity to consider the subject, which could properly be allowed. Neither was he unwilling to act on the proposition which the Senator considered so very important, when the proper time should come for so doing. But his own opinion was, that the proposition of the Senator ought not to be connected with this bill. Whatever Congress might do on that subject, the Treasury must have the means to go on; and it was well known that on the question referred to by the Senator there was a great difference of opinion in both Houses of Congress. The object was in itself entirely distinct from that of this bill, and one could not interfere with the other. The committee had been careful so to frame the bills as to make them independent of each other. It was most plainly necessary that this bill should pass without delay. The Treasury could not satisfy the public creditors any way acceptably for more than twenty, and perhaps not fifteen, days longer, without aid from Congress. Mr. W. therefore hoped, without any disposition to press the Senator, but because the two propositions were independent, that the Senate would not postpone this bill.

Mr. CALHOUN said it was impossible for him to say what ought to be done on this bill till he could know how the Executive would shape its course. Mr. C. was willing to grant the relief, (to the Treasury,) but he would not do it in the dark. The great point was the one to which he had alluded, and to that all kindred measures ought to have a reference. If time should not be given him, Mr. C. would vote against this bill, and would forever disconnect himself from all responsibility as to the result. He knew that all ought to feel a proper sensibility for the embarrassments of the Government, but he felt still more for those of the country; and he thought it infinitely more important that all should be well, rather than speedily, done; and, as far as his voice had any power, it should be done well. On this question, as the chairman of the committee was opposed to a postponement, Mr. C called for the yeas and nays; which were ordered.

Mr. BENTON said that, as one connected as he had been with the deposite bill, he could not agree to vote for any postponement of the bill which might have the effect of connecting any other proposition with it.

Mr. WALKER said he could not know fully the importance of the amendment proposed by the Senator from South Carolina till he should hear his views on the subject, which he, (Mr. W.,) and he believed the whole country, were anxious to know. He hoped, therefore, that the delay asked for would be granted.

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