from Rhode Island, who, thank God, is now out of this House, and ought to be out of the country. This individual feigned sickness, and remained at home, while he was under pay of eight dollars a day, and whilst the facts upon which he reported were transpiring in his absence, for the purpose of writing this report, and was furnished with notes by two members of the committee, Dutee J. Pearceand Aijah Mann; and when this report was brought into the cominittee, and read, so audacious were the falsehoods that it contained, that the majority were compelled to expunge a considerable portion of it, and adopted what remained as their own. Dutee J. Pearce had stated to his friend, Col. Campbell, the gentleman from Massachusetts (Gov. Lincoln) and himself, by way of apology for himself, that the report was written by the individual before referred to, and that Abijah Mann of New York furnished the offensive notes. This report however was set up as a standard of truth, and as an offset to the report of the minority; and the best of it was that Hallett (the clerk) had the insolence to complain that the majority had spoiled the report he had drawn up for them, by striking out the only passages which gave it point.

At this period of the discussion, on motion of Mr. CAMBRELENG, the House proceeded to the orders of the day.

The SPEAKER laid before the House the 'following from the Secretary of the Treasury, in answer to a resolution of the House calling for information in relation to the condition of the Bank of Missouri; which was laid on the table, and ordered to be printed.

TREASURY DEPARTMENT, September 20, 1837.

SIR: This report is made in compliance with the following resolution, passed on the 18th instant: Resolved, That the Secretary of the Treasury inform this House at what time the Bank of the State of Missouri was made a deposite bank; and what amount of its own notes said bank had in circulation, and what amount of specie it had in its vaults, when it was selected. Also, what amount of money is now in the hands of the receivers of public moneys in Illinois, and where the same is now ordered to be deposited."

In reply to the first inquiry, I have the honor to state that the agreement and bond executed in behalf of the Bank of the State of Missouri bear date the fifth day of July, 1837. Some time elapsed before these papers reached the Department, and explanations were requested, which occasioned a further delay of several weeks. The selection was decided upon the 16th August, 1837; on which day the notice of it, together with the forms of the returns required, etc. were transmitted to the bank. The selection, as is usual in such cases, is considered to take effect for some purposes from the date of the bond and agreement.

In reply to the second inquiry, it appears by the last returns of the bank received here, that it had in it vaults in specie $293,308 72, and had issued no bills of its own.

This last circumstance existed with regard to the Louisville Savings Institution at the time of its selection, and since, and was deemed, as it has proved, a great security to the Treasury. Recently the Bank of Missouri has issued a small amount of bills; the precise amount of which has not yet been communicated. None of them are under $20, according to the representation made on that subject.

In answer to the last inquiry-the gross amonnt of cash held by the Receivers of Public Money in the State of Illinois, by the last returns received at this office, was $336,639. From this should be deducted $127,000, being the amount of the drafts outstanding upon them, and leaving a balance of about $209,639. Of this balance, about $190,000 has been directed to be deposited in the Bank of the State of Missouri, being the nearest and most convenient general depository for that purpose. Respectfully submitted.

19200 LEVI WOODBURY, Secretary of the Treasury. Hon. J. K. POLK, Speaker of the House of Reps. The letter was ordered to lie on the table. nå me

On motion of Mr. CAMBRELENG, the House then went into Committee of the Whole on the state of the Union, Mr. HAYNES in the chair, and resumed the consideration of the bill to postpone the fourth instalment of deposite with the States.

Mr. CAMBRELENG said he would detain the committee only to make a short reply to the gentleman from Tennessee (Mr. Bell.) The gentleman had referred to the project of establishing a Treasury bank of deposite and issue. On that question he would not now detain the committee further than to say that the Treasury bank was already established, not only of deposite, but of circulation. We have always had one to some extent, and have generally had two millions of warrants in circulation. He had also referred to the expenditures of Government-they had increased two or three fold; but that increase had been made almost exclusively for extraordinary purposes. We appropriated in 1836 thirty-eight millions; of which, as may be seen by a report of the Committee of Ways and Means, seventeen millions and a half were appropriated to ordinary purposes, and twenty millions and a half to extraordinary objects. Of the latter, thirteen millions and a half were required for Indian treaties and Indian wars in the neighborhood of the gentleman from Tennessee. The appropriations for the present year amounted to thirty two millions, of which fourteen were for extraordinary purposes. He concurred with the gentleman as to the necessity of reducing the public expenditures. It is obvious they will, as they have done uniformly, increase with an increasing revenue, and be suddenly curtailed when the revenue falls short. Such would be the case now, and our expenditures must be reduced to seventeen or eighteen millions.

The gentleman from Tennessee appeared to complain that the Executive had not, when the crisis came upon the country, in May last, directed the different departments to stop the expenditures. This was singular doctrine, after all we had heard for some years past on the subject of Executive usurpation, to expect the Executive to direct the execution of the laws to be suspended, while there were means in the Treasury. But, sir, the views, of the President and of the departments were, from necessity, similar to those stated by the gentleman. It was evident that the revenue would fail, and that some of the expenditures could not be met-a minute inquiry was instituted in every branch of public expenditure, to ascertain what could be conveniently postponed till next year.

It was ascer

tained that some fifteen or sixteen millions might be suspended till the next year, to wait the future action of Congress.

It would, however, be wholly impracticable to curtail the expenditures in the last quarter of the present year. The very branches of expenditure referred to by the gentleman from Tennessee are not now within our reach. One-half of the amount is already expended, and most of the remainder is. under contract. Whatever we may do in curtailing the expenditures for the next year, any attempt to interfere with the expenditures of the last quarter would be wholly unavailable; and, if attempted, must be attended with much loss and embarrassment to Government.

But the principal purpose for which he had isen was to notice the financial statements of the gentleman from Tennessee. He had stated that we might have a surplus of twenty-three millions and a half. He hoped the gentleman would pardon him for saying that his resources for creating this surplus were as unsubstantial as the unexpended appropriations which the gentleman from Georgia (Mr. Dawson) proposed to convert into money. What are they? The firs item is five millions, being the amount of money in the hands of the disbursing officers. Why, sir, one half of this amount is already expended, and the remainder is employed in paying the expenses of your army and navy-of the Florida war. Indeed, some are for our naval expenditures in the Mediterranean, the Pacific, and in almost every quarter of the globe. The warrants are issued only as the money is actually required for the public service; and except in some extraordinary case,

as the Florida war, the money is paid over almost as soon as it is received.

The next item to create this surplus is five millions five hundred thousand dollars to be curtailed from the expenditures of the present year. That is wholly impracticable, without stopping the pay of our army and navy, our expenses in the Florida war, and our public works of every character.

The third source of revenue is four millions and a half of drafts, drawn on the banks, and paid out for claims upon Government, but not paid by the banks according to the last returns. Why, sir, to make this a source of revenue, we must draw twice for the same amount. Two millions of this will probably be returned to the Treasury, and not paid by the banks, but the only effect is to diminish the receipts of the Treasury, and to increase the amount due from the suspended banks.

The gentleman also relies upon an increase of the receipts over the estimate submitted of three millions. We have now before us a bill postponing the payment of the custom-house bonds for nine months, which I presume will pass, after all we have heard about granting relief. This will throw into the next year two millions of revenue, which was estimated for the present year, making a difference of five millions in the estimate of the gentleman.

The last resource embraced in the estimate of the gentleman from Tennessee is the balance due from the State banks. Why, sir, we have now in this committee a bill extending indulgence to the banks for four, six. and nine months. If we pass that bill, as we probably shall, we shall place it out of the power of the Treasury to draw for any portion of these balances for any purpose, and these will probably amount to seven millions, when the two millions of drafts are returned to the Treasury.

Thus, sir, we have on one side of the account resources relied upon to make the surplus means, estimated by the gentleman twenty-seven millions, and deducting his estimated surplus of twenty-three and a half millions, we have an actual deficiency, according to the gentleman's own statement, of three millions and a half.

Gentlemen might take what view they pleased of the state of our finances, but it is impossible to make any estimate which will not exhibit a deficiency in our means to meet the current expenses of Government. This deposite cannot be made unless we create a public debt for the sole purpose of placing a surplus in the Treasury, to be transferred and deposited in the Treasuries of the several States. Such a measure, he felt persuaded, would never be sanctioned by Congress.

Mr. BELL made a few remarks in rejoinder to Mr. Cambreleng, and insisted that the statement of the gentleman did not contravert Mr. B's of yesterday, that there was a dead fund of five millions of dollars on hand; and that, assuming that fact, which he said was incontrovertible, according to the gentleman's own estimate there would be a deficit of only one million some odd hundred thousand, but, according to Mr. B's estimate, an excess of rising three millions.

Mr. UNDERWOOD addressed the committee at some length, and went into a variety of financial statements, showing that the Government had means enough on hand, including the stock of the Bank of the United States, which might be sold, to . answer its present expenditures, without creating a stock or borrowing money. He also went at large into the subject of the Treasury scheme, which he opposed as a delusive one, for its tendency would be directly contrary to what was asserted by its advocates. It would be mak ing a discrimination in favor of the Government officers against the people, increase the patronage of the Executive, by giving him the control of all the constitutional currency of the country, and the appointments to be made in carrying out the scheme, and lead, eventually, to the establishment of a Treasury bank of discount. Mr. U. came to the conclusion that the only remedy for the existing embarrassments, and to prevent their recurrence, was in a national bank, though he should not propose such a measure, and he believed that more than two to one of the people were in favor of it.

Mr. PICKENS said he would submit a proposi

48

tion which he thought would meet the views of a large majority of both sides of the House, and that was to postpone the payment of the instalment to the "first day of January, 1839," by which time it would be seen, if the postponement should be Mr. P. then moved to made indefinite or not. strike out the words till "further provision by law," and insert "the first day of January, 1839."

Mr. DUNCAN was opposed to this amendment, and expressed his astonishment at the number of propositions brought forward, the effect of the discussion on which was only to delay the action of Congress upon this bill.

The question resolved itself into this, whether the Government should contract a loan for the purpose of creating a surplus to be distributed in deposite with the States. Mr. D. then cited a statement he had prepared of the actual condition of the finances of the country, and for the information in which he was largely indebted to the highly respected gentleman from Maryland (Mr. Mc Kim) which showed satisfactorily a deficit of somewhere about ten millions, including unavailable funds; which would be, on the first of October, when the fourth instalment was payable, considerably increased. Mr. D. then went on to show that the creation of a loan for the purpose of paying the fourth instalment would Constitution. of the direct violation be He also defended the Secretary of the Treasury from the strictures of gentlemen who had preceded him, and the views and recommendations of the Executive. In reference to the present bill, Mr. D. denied that it would violate any contract with the States, but he objected to that provision of it which took the responsibility from the Secretary of the Treasury, and put it upon Congress, and hoped a motion would be made to strike it out.

a

The following are the statements above alluded to by Mr. D.

Whole amount of money in the Treasury, 1st January, 1837.

Whole amount of available money in the Treasury 1st January, 1837, applicable to public purposes

Deduct the sum reserved by law

Which amount of $37,468,859 97 was, under the provisions of the act of June 23, 1836, to be placed in deposite with the States, and it is ascertained that there has been deposited

This is an actual deficit, notwithstanding there ought to be a sum equal to this always in the Treasury, which really shows a deficit of above $10,000,000.

Whatever expenditures shall arise within the year upon new appropriations which Congress may think proper to make, will require a corresponding addition to this amount; but without them, it will constitute an excess of $5,363,322 33 of expenditures over both the receipts and the balance at the end of the year, besides not leaving at the close of the year any thing in the Treasury or mint for future uses or to meet contingencies.

State of the Treasury up to the 1st of October. By the Treasurer's report on the 30th of August past, it appears that the balance in the Treasury, including what was in the custody of banks, the mint, and collecting officers, was then That the amount of this sum subject to immediate draft, was only

$14,596,311

8,928,072

$42,468,859 97

5,000,000 00

37,468,859 97

27,063,430 80

10,405,429 17

Leaving subject to draft near Sept. 1st as above Expenses in Sept. about 2,500,000, with receipts

5,668,043 8,928,072

2,500,000

The amount of the third instalment, the deposite of which has not been acknowledged, is Amount of fourth instalment, not deposited

The amount reserved in the Treasury on the 1st January, 1837, has been increased from $5,000,000 to

The receipts in the first half

year are as follows:

From customs

$7,234,451 5,307,731

512,263

13,050,445 00

Leaving 1st Oct. in banks, mint,' and receivers, and collectors, hands

under the deposite act of June 1836, and before he went into the question, he premised a single remark. That deposite act had been charged as the cause of all the difficulties which had overtaken the coun try, and the prostration of its prosperity. Upon a proper occasion he should deny the imputation. He had voted for that deposite act; and, under like circumstances, he would vote for it again. It was a wise law; and without intending to reflect upon the author of its execution-without intending to ascribe to the Secretary of the Treasury any other than that error of judgment common to human frailty, Mr. G. would say that if its execution had been as wise as the law, so far from having done an injury to the country, it would have exerted a powerful, if not a salutary and effectual, influence, in preventing the catastrophe that had happened. He believed the law to be wise at the time, and still believed it so, under the circumstances, and his vote for it would be an act of his public life he should never regret.

In relation to the law itself, he would put a single question. What was the act? Many there thought that it was an act for distribution; that is, for a gift to the States. Mr. G. denied that construction of it. If he had believed, when he had voted for it, that it was to be considered as a gift, he should have voted against it; because he did not believe that this Government had the constitutional power to collect revenue from the pockets of the people in large masses of surplus, and then give it out again.

In regard to the bill now under consideration, he asked, was it money belonging to the Federal Government or to the States? If it was the money of the States, it ought not to be withdrawn. If it was the money of the Federal Government, the question which presented itself to every statesman, was this: was the money of the Government to be deposited, and to lie in deposite, while the Government itself was in need of its use? Then arose the further question, had the Government any need of it? Perhaps that question might be somewhat doubtful; for he had travelled through the report of the Secre tary of the Treasury, and through the statement of the chairman of the Committee of Ways and Means, and all the other statements that had been given, as well as he could, and the confusion between them was almost as bad as the confusion of Yet in that confutongues at the tower of Babel. sion he had ascertained one fact that would direct his vote, and that was that if this money was given away to the States, and the deposite law executed, there would certainly be a deficiency of some ten or eleven millions of dollars. Now, then, how was this deficiency to be met? Was it to be met by a future surplus of the revenue? He would ask the representatives coming from the consuming part of the community, where that surplus was to be raised from, but by a taxation upon foreign goods? It was a matter of interest to them, surely that the money should rather come back from the States, than from their pockes by taxation.

If Congress, in passing the deposite law, had over estimated the accruing revenue, so as not to have available means of meeting the instalment due on the first of October, then he saw no good reason why the instalment should be met, and the deficit supplied by taxation on the people.

But it was said that it would be acting deceptively towards the States. Why so? The deposite act itself contained a provision for calling back the money when there was a defect in the Treasury. Besides, he would put another question. How much more would the States be deceived and deluded by letting the money go into their treasuries, and then immediately calling it back under the process of the original act? Although, to be sure, it might come back in small amounts and instalments, yet where would be the use of investing it to-day, and calling it back instantly? But it was not prudent in the States to dispose of the money till they had it; for their obligation over it did not commence till it had been delivered to them, and they had no obligations to perform over the money they had not received. It was not in the hands of the States, but in the Treasury of the General Gohow were

25TH CONG.......... 1ST SESS.

BY BLAIR & RIVES.

[Continued from No. 3.]

they to pay the money? Were they to effect a loan on the accruing revenue laws, or to rely upon the southwestern banks to pay up the money deposited with them? Was this a proper state to place the finances of the country in? If it should turn out that the Secretary of the Treasury had given them wrong information on the state of the finances, and if it should turn out that the Treasury was in a sounder condition than he represented, the responsibility would rest upon him, and not upon that House in passing this bill.

Mr. CAMBRELENG explained, in reference to the disbursing officers, that though there might appear on the books to be a balance due from one of them of a million, yet that, in fact, there might not be in his possession at the time five thousand dollars; for the reason, as was understood, that they were debited with the whole amount of the drafts or warrants as soon as they were drawn.

Mr. BELL insisted that there were four millions and a half in August in the deposite banks not paid away by these same gentlemen.

Mr. GARLAND concluded, by saying that, before he acted on that subject, it would be his duty to ascertain precisely, as nearly as he could, the exact state of things; at present, he had nothing else to guide him but the authority of the Secretary of the Treasury, and on that he should vote for the bill under consideration. Mr. G. however, did not admit all the grounds to be true. He did not admit that there was such an amount of unavailable funds as had been represented and contended for there. This he should be able to prove, from the report itself. But, though not unavailable, yet the Secretary says it cannot be come at in time, and for that reason Mr. G. should vote for this bill. It was the Government's money, and the Government wanting it, he should vote for its being withheld from the States.

Mr. BIDDLE opposed the bill at some 'ength, on the ground that the report of the Secretary of the Treasury had not furnished sufficient data to warrant its passage. Moreover, if the exigency was of so pressing a character that the money could not be paid, the Secretary could give the States the same answer he did in July, viz: either keep back the payment, for a time, on that ground, or tender them in payment the notes of the deposite banks. Again, Mr. B. objected to the bill, because it changed the nature or character of the claim; and became, instead of a claim upon the surplus fund now in existence, a claim at large upon the Federal Government, or the people, which would have to be paid in specie.

On motion of Mr. LOOMIS of Ohio the committee then rose and reported; and then, On motion of Mr. GLASCOCK, The House adjourned.

The following additional standing committees were appointed by the Chair under the new rules and orders of the House:

On Public Buildings.
Messrs. TOWNS,

YELL, EVERETT, McCLURE.

On Patents.

Messrs. LOOMIS, CHEATHAM, CRARY, HAWES, HALSTEAD.

IN SENATE.

THURSDAY, Sept. 21, 1837.

Mr. McKEAN presented a memorial from sundry citizens of the city and county of Philadelphia, remonstrating against the admission of Texas; which was laid on the table.

Mr. MORRIS presented a memorial frem sun

THURSDAY, SEPTEMBER 28, 1837.

-WEEKLY-

dry citizens of Ohio, praying that Texas may not be received into the United States; which was or dered to be laid on the table.

Mr. LYON also presented a memorial to the same effect; which was laid on the table.

Mr. HUBBARD presented two petitions; one from Amasa Brown, the other from Abigail Sprague, praying pensions; which were laid on the

table.

Mr. WRIGHT, from the Committee on Finance, reported a bill making appropriations for the suppression of Indian hostilities for the year 1837; which was read a first time, and ordered to a second reading.

[This bill makes a provision of one million six hundred thousand dollars. In connection with this bill, Mr. WRIGHT Submitted a letter from the Secretary of War.]

Mr. WRIGHT, from the Committee on Finance, reported on the several petitions preferred from the Chamber of Commerce of New Orleans; from the city of St. Louis, in Missouri; from the citizens of Carroll county, in Mississippi; and the citizens of Schuyler county, in Illinois. The report concluded with the following resolution:

Resolved, That the prayer of the petitioners ought not to be granted.

Mr. HUBBARD presented a resolution from the House of Representatives and General Court of New Hampshire, instructing the Senators, and requesting their Representatives, to oppose any and every proposition to charter a Bank of the United States.

The bill imposing additional duties on certain officers as depositories in certain cases being taken up in the Committee of the Whole, the question being on Mr. Calhoun's amendment-

VOLUME 5...........No. 4.

Mr. SMITH of Indiana rose and addressed the Senate in a speech occupying two hours. On this question Mr. S gave his reasons for voting against the postponement of the fourth instalment to the States. The States, he said, had in several cases entered into contracts on the faith of the receipt of this money, and had in some instances actually made advances on those contracts, which would be forfeited to the great injury and loss of these States. Although the understanding between the General Government and the States could not be considered exactly in the light of a contract, yet it was very like one in its nature, and he so viewed it

The affairs of the country, he was aware, were brought to an alarming crisis, and required caution and the utmost deliberation. The attempt now made to strike the banks with a ruthless and iron hand, could not fail to re-act upon the people, and beget consequences still more fatal than those we were now laboring under. Why was it proposed to separate the Government from the people, by having separate and distinct currencies? The moment such a measure was effected, the minds of the people would be alienated-there would no longer be an affinity between them. One common interest should pervade both; they are embarked on board the same vessel; and every individual, be he poor or rich, was more or less interested in her prosperous voyage.

This idea of divorcing the Government from the banks, he contended, was an afterthought. He was prepared to show it was not the opinion of Ex-President Jackson, nor of Mr. Van Buren when he was canvassing for the high office that he now fills. [Here Mr. S. read extracts from the Message and documents.] We were then told that these banks were entirely adequate to all the purposes of the General Government; that they could regulate the exchanges of the country, and perform all the offices the Bank of the United States had done, safer and better, and now we are asked to divorce them. He had been told it was a contest between the aristocracy of wealth on one side, and the democracy of numbers on the other; for his part he did not know where this aristocracy was-there might be such a thing; but he thanked heaven he had never seen

it. They knew no distinction in the West, where he was from, no difference, save in virtuous or vicious actions. He protested against that spirit of uncharitableness which would array one class against another. We could never advance the interests of the nation by inducing one portion of the people to envy another-all should stand on the broad platform of equality.

Various indeed were the opinions of gentlemen as to the causes of the distress in which we are involved. Some tell us it is owing to our having become speculators, consumers, not producersothers again blame the excessive issues of the banks; while others trace it to the tariff-all he knew was that a fearful anxiety pervaded the mind in relation to it. He could not, like the gentleman from South Carolina. (Mr. Calhoun) enter into a metaphysical discussion of the subject, but having mixed much with the people fo. the last eight years, he could take a common sense view of the matter, such as he derived from the persons in the West, with whom he had commingled, and he would add, that although these causes might have operated in part, yet he felt constrained to say, that the great primary cause was the destruction of the national bank, and the removal of the public deposites. Previous to those acts by the Executive,we had none of the ills to which we have since been subject-public confidence was every where unimpaired until that evil hour when the public funds were removed from the vaults of the national bank. Then it was that banks sprung up over the whole country. We had placed the public deposites in their keeping, thus enabling them to expand their issues to loan the money to those citizens who wanted it for commercial and other purposes, and now we called for a separation from all banks. Sir (said Mr. S.) you are not entitled to a divorce upon principles of common law and justice.

Added to all this was the Specie circular: the moment people saw that you received nothing for the public land but gold and silver, that very moment distrust seized upon the public mind; it was like the fire in the great western prairies, nothing could stop it; every man became suspicious, and he who had a dollar in paper, drew out the specie and and hoarded it up.

This circular was the means of drawing the specie from the East to the West, where it was not wanted, and where it performed no other office than being hoarded. Such a measure of itself could not fail to destroy every bank in the country. Confidence, that could alone sustain moneyed institutions, was annihilated, and distrust universally created. He would not charge improper motives upon the authors of these evils; he believed they might have acted from patriotic motives; but he felt himself bound to state the consequences that had arisen from them.

The measures now contemplated by the administration, would draw all the specie from the West, and place it at the disposal of the Executive, where, with the army and navy, and whole hosts of visiters and examiners, he would soon have the means of becoming irresponsible to the people. Are wc, could we,be prepared for the dreadful consequences that would ensue from following out this phantom? Suppose the specie made the only currency; what would be the effect on those persons in debt? Their property would be sacrificed for nothing, and one wide scene of desolation and ruin pervade the whole country.

Mr. STRANGE addressed the Senate in a long and able speech. He remarked that it had been the custom to ascribe the present difficulties of the country to the Government having tampered with the currency. He would answer that charge before he should conclude what he had to say on the subject under consideration. With regard to the existing commercial distress, and the other inconveniences which were complained of, they were not confined to this country alone. Any man who should cast his eye across the Atlantic, could not

fail to perceive that distress was as great, or nearly so, in many countries of a commercial character. The present condition of the Union, some had ascribed to measures of the Government, and they had done so with a proper sense of propriety and dignity due to themselves as well as the Government. They had endeavored to show their injurious effect on the affairs of the country. Now, that was a perfectly fair and legitimate mode of proceeding. It was right that the measures of the Government should be fairly and dispassionately examined, and if they had been injurious, they should be so pronounced. But, so far from concurring in opinion that they had been productive of the prevent catastrophe, if it could be so called, he believed that the measures had tended rather to relieve the force and weight of the blow which might have been expected by those who watched the commercial proceedings of the country. He believed that the operation of the Specie circular was more limited than was generally supposed, and that its effect had been beneficial; for it had prepared us for what was a most unexpected catastrophe to some, though every thinking man must have seen that it would occur. While he said that the measures of the Government had not been injurious, he did not mean to claim for it perfection. He was free to admit, that some of them, co-operating with other causes, had somewhat affected the welfare of the country. They had done a great deal of good, and probably had done some hirm. One of the measures which had been denounced, was that for regulating the standard of gold and silver coin. At the period it was passed, it was considered to be salutary and beneficial. It was not particularly an administration measure; it was supported by many opposed to the administration. The result of it, however, had been somewhat different from what was expected. He believed it had disturbed the commercial equilibrium of the world. It had he thought alarmed the Bank of England, and induced that institution to adopt a course of measures which had seriously affected the commercial interests of this country.

With regard to the distribution act, he believed that that act had had an injurious effect. Now, that was not an administration measure, nor of any particular party. It passed almost by the acclamation of both parties. His opinion was, that this had greatly contributed to derange the currency. He did not think that gentlemen had probed the matter to the bottom -had not looked at the real causes of the present distress. A departure from the Constitution had produced it. Supposing that there had been no tariff adopted, and no national bank established, we knew not what might have been our situation. Perhaps none of the difficulties now complained of would have existed. They might all be traced to these causes, directly or indirectly. He believed them to have thus originated.

Mr. S. after enumerating the various causes which have been said by gentlemen on the other side to have produced the distress, observed that he was very happy to see some very cheering points in the present crisis, as to the course which the Executive had marked out. He trusted that both Houses of Congress would be ready to co-operate with

him.

With respect to the relief of the country, we had been told by some gentlemen, that no relief was proposed in the Message. Relief was proposed for an exhausted Treasury, which was one of the evils complained of; and incidentally some relief was also proposed for the commercial distress of the country. He presumed that it would not be denied by any gentleman on that floor, that the emission of ten millions of Treasury notes would afford to the circulating medium of the country additional vigor. Was it not proposed to give indulgence to the merchants, by extending the time for the payment of duty bonds? And so, because relief was not to be afforded to an unlawful extent, was said that no relief was to be afforded. He contended that great relief would be given by the measures adopted. It had been strongly intimated that a Bank of the United States would afford relief to the country; bu no direct proposition had been introduced here in response to it. He expressed his opinion that it

was unconstitutional to establish a Bank of the United States. He believed, too, that it had contributed to produce the present distress. Mr. S. paid a high compliment to the Senator from South Carolina, (Mr. Calhoun) for the high stand he had taken in opposition to the United States Bank, in the speech he delivered a few days ago. He adverted to Mr. Rives's scheme, and condemned it. He maintained that the State banks had completely failed in answering the purposes expected from them. They had virtually failed, not being able to pay specie, and had placed the Government in its present awkward predicament. The merchants would not be placed in the humiliating condition they were, if the banks had met their engagements as they ought to have done. He was astonished that any gentleman should say that the experiment had not failed. The gentleman from Virginia (Mr. Rives) had said all that was wanted was a restoration of confidence in the banks. He (Mr. Strange) had certainly no confidence in them. Would it not be a falsehood on record to say that the people ought to have confidence in the banks, when we ourselves had not confidence in them?

Mr. S. spoke of a bankrupt law, and maintained that such a law must be general in its operation, and could not be made applicable only to banks. The General Government would not have the power to enforce the law in the States. It would, then, be perfect madness to put the funds of the Government where they could not he had when wanted by it.

In regard to the Sub-Treasury scheme, public opinion had not yet been tried on the question, and he was willing to abide by the verdict of the people, whatever it might be.

But as far as he was able to judge, a priori, what that opinion would be, he thought it would be in favor of it. Was it unconstitutional? No man pretended that it was. Was it expedient? That was the question. None of the objections which applied to a Bank of the United States, would apply to it. But we were told that it was a new experiment, And doubtless the word experiment would be rung in our ears until we had the earache. Were

re to be frightened from our propriety by the word? t was an experiment so far as this Government was concerned, but not as regarded the world. Every body would admit that it was not liable to be a total failure like banks. Nor was it liable to the numerous objections against the deposite banks.

Mr. S. next answered the arguments urged against the scheme on the ground of the Executive patronage which would necessarily be attached to it. He insisted that it would not be either great or dangerous-that no apprehension need be entertained on that score. He referred to the question of the currency, and expressed his sentiments to be like those set forth in the Message. He observed that so far from the banks being against the Sub-Treasury scheme, they ought to favor it, because it would be the means of making specie more plentiful than heretofore. After some further remarks on various subjects bearing upon the scheme, he concluded by declaring himself the decided advocate and supporter of it.

On motion of Mr. TALLMADGE, the Senate adjourned.

HOUSE OF REPRESENTATIVES,
THURSDAY, September 21, 1837.
Petitions and memorials were presented by
Mr. EWING of Indiana.

[Mr. EWING presented the memorial of sundry persons praying for the establishment of a speciepaying Bank of the United States, and asked the leave of the House to address that body on the subject of the memorial; but objection being made, the memorial was referred to the Committee of Ways and Means, and ordered to be printed.] Mr. GLASCOCK of Georgia.

[Mr. GLASCOCK presented the petition of Joshua Pharaoh, of Richmond county, Georgia, praying an increase of his pension.]

Mr. HOWARD of Maryland.

[Mr. HOWARD said that he presented the petitions of the executors of Joseph Mussi deceased, and of the legal representatives of Joseph Borden deceased, together with those of 956 petitioners now

on file in the House, praying that compensation may be awarded to them for property taken for the service of the United States in the year 1800. The mere mention of the far distant date at which these claims originated, would, in a great measure, explain to the House his reasons for presenting these petitions at this time, when, under the rule of the House, no reference of them could be made to a committee. He understood that it was the intention of these claimants to press the examination of their claims upon the committee, who might be charged with their investigation; and if such investigation should result in the report of a bill, then to press upon the House the consideration of that bill at some period of the approaching winter. They had desired their petitions therefore to be brought thus early before the notice of House, in the hope that some portion of the leisure which the members now had, might be bestowed upon

an

inquiry into claims which were closely connected with an interesting portion of the history of the country. At the last session of Congress, it would be remembered that he had reported a list of the claimants, which had been printed by order of the House, that it might be seen who these numerous claimants were, and in what States they lived.

In

The petitioners state, that prior to the year 1800 their property had been seized upon the high seas by French cruisers, and their vessels and cargoes condemned, in violation both of national law and express treaty. After much negotiation between the United States and France upon the subject of these repeated and intolerable outrages, the Government of France expressed a willingness to make compensation, and would have done so, but for a measure of public policy on the part of the United States, arising from this circumstance. 1778, a treaty of alliance, offensive and defensive, was formed between France and the United States, in which they had reciprocally guarantied to each other the integrity of their possessions, and a treaty of commerce was subsequently made, by which great privileges were secured to France. These stipulations, which were merely nominal when the treaties were formed, proved very onerous when the commerce of the United States became extensive, and when a demand was made that the guaranty should be fulfilled by preserving to France her West India islands. The United States insisted upon being exonerated from these very troublesome stipulations, and France, with equal pertinacity, insisted upon their immediate fulfilment. To escape from these embarrassing articles in the treaties, the United States released France from the obligation of making compensation to the petitioners, and France, on her part, consented to abandon the important rights which she held under the old treaties, and which were otherwise indestructible. The result was, that the petitioners lost their property which France had expressed her willingness to pay for, and the Government of the United States made this property the equivalent for obtaining great national advantages. Against this use of their property the petitioners never remonstrated; but against its being taken for the public use without compensation, they have complained from that day to this.] Messrs. RUSSELL and PRENTISS of New York.

Mr. POTTS of Pennsylvania.
Mr. HALSTEAD of New Jersey.

Mr. HALL of Vermont.

Mr. TILLINGHAST of Rhode Island.
Messrs. ADAMS, LINCOLN, and BORDEN of
Massachusetts.

Mr. WILLIAMS of New Hampshire.
Mr. SMITH of Maine.

Mr. THOMAS, chairman of the Committee on the Judiciary, stated for the information of the House, that the Committee on the Judiciary had adopted a resolution, that it is inexpedient to report a bankrupt law at the special session of Congress.

INQUIRY IN RELATION TO THE FLORIDA WAR. The House then proceeded to the unfinished business of the morning hour, which was the consideration of the following resolution, submitted by Mr. WISE on the 19th instant:

Resolved, That a select committee be appointed

by ballot to inquire into the cause of the Florida war, and into the causes of the extraordinary delays and failures, and the enormous expenditures which have attended the prosecution of that war, and into the manner of its conduct, and the facts of its history generally; that the said committee have power to send for persons and papers; and that it have power to sit in the recess; and that it make report to the next session of Congress.

The CHAIR stated the question pending to be the motion submitted on yesterday by the gentle. man from Massachusetts, (Mr. Cushing,) to strike out the words "by ballot."

Mr. CUSHING, however, rose, and stated that he had on yesterday suggested this amendment to the gentleman from Virginia, but that he had not made the motion to strike out. The journal was corrected accordingly.

Mr. GLASCOCK then rose and stated that he did not desire to take up the time of the House at the present session, which was called for another purpose, in discussing this resolution, as there would be a ime hereafter more appropriate for doing so. Mr. G. then moved to amend the resolution by striking out all after the word "Resolved," and inserting the following:

"That a select committee be appointed to inquire into the causes of the Florida war, and the causes of the extraordinary delays and failures, and the expenditures which have attended the prosecution of the same, and all the facts connected with its history generally; and that said committee have power to send for persons and papers."

Mr. HOWARD of Maryland moved to amend the amendment, by striking out 66 a select committee," and insert "the Committee on Military Affairs be instructed;" the effect of which would merely be to transfer the duty of investigation from a select to a standing committee of the House. Mr. H. said that his opinion had been more than once expressed; that, as a general rule, it was proper to refer all matters which might come before them to some standing committee, whenever the subject was within the range of the duty which the rules of the House enjoined upon that committee to perform. During the last Congress he had moved to reconsider a vote by which a select committee had been ordered, for the purpose of referring the subject to one of the standing committees, and the House had concurred with him in opinion. Whenever no appropriate standing committee could be found, he admitted that it was correct to raise a special one, and if this were such a case, he would not now object to the adoption of this course of proceeding. But so far was this from being true, that if the House were to direct a special committee to be appointed, its duties would actually conflict with those of the Committee on Military Affairs, as he would presently show. What reason could be given, he asked, why there should be a select committee? Would the effect of such a measure be to impose duties upon members of this House who were not charged already with the execution of others? By no means. The members of a select committee were generally, if not necessarily, taken from other committees, and thus they were compelled either to discharge a double and burthensome duty, or to abstract a portion of their attention from subjects which were important enough to occupy their whole time. During the last winter, the committee of which he had the honor of being a member, had been compelled twice to send for one of their -associates, who was attending to the duties of one of the select committees, and, if his memory did not deceive him, one of the subjects upon which they were equally divided, was thus prevented from being brought before the House at all. Other committees, he presumed, had experienced similar inconvenience from the same cause.

But, in addition to this, one of the rules of the House would show the propriety of confiding this investigation to the Committee on Military Affairs, as must be manifest upon reading it.

The 72d rule was as follows:

"It shall be the duty of the Committee on Military Affairs to take into consideration all subjects relating to the military establishment and public defence, which may be referred to them by the House, and to report their opinion thereupon; and also to

report, from time to time, such measures as may contribute to economy and accountability in the said establishment."

It is made their duty, by this rule, to report such measures as may contribute to economy and accountability, without waiting to have the consideration of these topics especially referred to them by the House. Did gentlemen then wish to discharge that committee entirely, or to permit them to look into the best mode of promoting economy except as to that part of the army in Florida, and thus have two committees employed upon the same subjects, except that one would be occupied with a part of the army, and the other committee with the residue? What confusion must arise from such a proceeding! The resolution before the House proposed to inquire into the causes of the delay and expenditure of the Florida war, and both these duties were specifically provided for by the rule which he had read.

But there was another point in the case. If the proposed investigation should be made by a select committee, how could the House act upon the report, so as to remedy whatever evils there might be, except by referring the report to the Committee on Military Affairs, to frame the necessary bills? The resolution proposed merely a barren inquiry, unproductive of any practical results. If it should be contended that this special committee might report bills also, then the proposition amounted to superseding the standing committee entirely, by vesting another one with all their duties; because such bills could only be prepared after an intimate knowledge of the condition of the whole army.

Mr. H. said that he had read the proceedings of the Court which sat at Frederick, and the corre spondence between the late Secretary of War and General Clinch, as well as all other papers within his reach, calculated to throw light upon the conduct of the Florida war. He dissented entirely from the opinion expressed by the gentleman from Massachusetts, (Mr. Cushing) that it was a disgrace to the country, nor could he understand the metaphysical distinction, that the arms of the country were disgraced, and the officers not. He thought that the causes of failure would be found to resolve themselves into two, viz: the extraordinary physical condition of Florida, as it had been correctly described by the gentleman from Georgia, (Mr. Holsey) and the great distance of the directing power from the theatre of war. In all campaigns, of all nations, failure was almost inevitable, where the head that planned was hundreds of miles distant from the arm that executed those plans. The army in Florida had performed their arduous duty in a manner which was highly creditable to them, and he thought no disgrace had attached to any quarter. But he was entirely willing that the fullest and freest investigation should be made, and nothing was further from his purpose than to screen any officer, civil or military, if he should be found deserving of censure. He trusted that any committee to which it might he the pleasure of the House to send the investigation, would pursue it rigorously and impartially, with no other view than to do justice, whomsoever it might affect.

Mr. MUHLENBERG said: when this resolution was under discussion yesterday, some remarks were made by the gentleman from Virginia on my left, (Mr. Wise,) which he regretted to hear, because he thought they were in bad taste, and reflected but little credit either upon the head or the heart of that gentleman.

The attack made upon an absent gentleman, unable to defend himself, was certainly, to say the least of it, neither just nor generous. It reflects no credit upon any man to insult a fallen foe, or to strike and dirk him when unable to resist. In this. light I must view the attack made upon the absent gentleman from Rhode Island. If that gentleman had been present, there would be no cause for complaint, for he is amply competent to defend and take care of himself. He would have given the gentleman from Virginia a Rowland for his Oliver; measure for measure, in every species of attack.

But, sir, I have not risen to reproach the gentleman from Virginia. The goodness of heart with which I know that gentleman to be largely endowed,

has, no doubt before now, induced him to regret the hasty and uncalled-for remarks made yesterday. I have risen to correct some misapprehension into which he has fallen. He stated that the clerk of the Committee of Investigation alluded to, had feigned sickness, in order to gain time for drawing up a report. Sir, the clerk was taken ill shortly after the committee had been organized, and before it had made much progress in its labors; long before a report was thought of, as no one could then say what would be the result of the investigations going on. The testimony of the attending physician, and the evident marks of disease remaining after that person's return to the committee, might have satisfied the gentleman from Virginia that the disease was real, and not feigned. At all events, it could not have been feigned for the purpose stated, because there were at that time no materials for a report.

When the proper time for making a report had arrived, the majority of the committee directed Mr.. PEARCE, being the first named of the majority on that committee, to draw up a report for their consideration; and I believe each member of that majority furnished him with his own peculiar views on the subject. I know positively that this was done by myself and some others. The gentleman from Virginia pressed so much and so incessantly for a report from the majority, that it was submitted to the whole committee before the majority had had an opportunity of hearing it read, and passing an opinion thereon. When read in committee, I am free to confess I heard it with no little surprise and regret. I immediately, with a majority of the friends of the administration on the committee, protested against its adoption, and insisted upon its being amended. It was accordingly returned to Mr. PEARCE, to be so changed as to meet the views then expressed. When again presented to the committee, it met with the approbation of the majority, and no complaints were heard from the minority.

Does the gentleman from Virginia recollect that his own report met with a fate similar to that of the majority; that all his colleagues of the minority refused to sign it?

As to the bitter experience of which the gentleman from Virginia complains of having had on the stocked committees of investigation, as he is pleased to call them, I have but little to say. This I will, however, say: that I never before heard him complain of the conduct of that committee, of which he was the chairman; certainly such complaints were never uttered during its sittings. When the committee was about to close its labors, a vote of thanks to the chairman was unanimously passed; and the tear which stood in his eye when he made his acknowledgments, and the apparent good feelings with which the committee finally separated, would seem to tell a different tale.

I regret, that before the gentleman of Virginia had yesterday concluded his remarks, the orders of the day were called, and that I was thus prevented from making this statement immediately. It would not have been made, if, as a member of the committee spoken of, I had not been called

upon for it.

Mr. WISE said he was happy, extremely happy, that the gentleman from Pennsylvania had had time to sleep after the remarks he had heard on yesterday, and prepare himself with proper words for the occasion. He was glad that the gentleman was not called upon on yesterday, when he was which he unprepared to meet the statement (Mr. W.) had made. But did the gentleman contradict the statement he had made on yesterday, in the important particular in relation to the clerk of that committee writing the report? He inquired of the gentleman from Pennsylvania whether he put pen on paper in writing that report? The gentleman may have furnished Dutee J. Pearce with notes, but Pearce turned them over to Hallett, and Hallett wrote the report.

Mr. MUHLENBERG said that this was a matter between the gentleman from Virginia and Mr. Pearce. He (Mr. M.) presumed that Mr. Pearce wrote the report.

Mr. WISE. The gentleman presumed that Pearce wrote the report. Now, he repeated what