now passed; they reserved to themselves the right, and thus imposed on themselves the duty of examining that the stipulations of the charter were fulfilled, and to do this the enactment of such a law is now absolutely required. and disposition of its estate, but not for any other purpose," yet now, when the two years are nearly at an end, there are in existence, and ready to be re-issued, when desired, about $16,000,000 in bank notes, the cancelling of which was one of the first and principal duties of those who were "to settle and liquidate its affairs." No provision was made in the charter for such a state of things. It is, therefore, proper that congress should at once provide for it by appropriate legislation. Such is its duty, if the principles of the charter which it granted are to be fulfilled. It is no infringement of any privilege actually conferred on any individual or corporation, or intended to be by that charter; and it will at once put an end to the erroneous impression which a want of it will naturally establish, that the faith or the property of the United States continues to be pledged for the security of the bank notes bearing the name of the United States, and originally issued under that pledge. It is due to consistency that the terms and meaning of the charter should be guarded and preserved; it is due to good faith that, when the property of the United States is withdrawn, by the sale of the stock, from liability for the redemption of the notes, they should not stand by and permit them to be issued and circulated among the community, exactly as they were when that property formed a part of the capital by which they were secured; it is due to their legislative functions that the right which they retained, of examining into the proceedings of the bank, and thus virtually promising the community the exercise of a supervisory power, should not, at a moment when it is most needed for the public welfare, be neglected or relinquished, even though their own direct interest has ceased by the bar-efforts as soon as they are commenced? It cannot be gain they have made. Nor is it with reference alone to the late or present Bank of the United States that such legislation is necessary. The course adopted by those institutions may be pursued by every other banking institution chartered by congress. The notes issued in the Dis. trict of Columbia, under the authority of charters from the United States, may, without greater impropriety, be re-issued and circulated after those charters have expired, either by the banks themselves, or by trustees to whom they may transfer them the day before their corporative privileges terminate. That some law should be passed to prevent and obviate such a proceed. ing, cannot admit of question. In passing such a law, it is the duty of congress carefully to avoid any provision which should affect the citizen who holds or receives these notes in the ordinary course of trade, or who passes or transfers them in good faith from hand to hand. It is only those who hold or receive them with the means and for the purpose of redeeming them; who pass and circulate them when they know that they have come into their hands for such a purpose and under such obliga. tions; and who neglect or refuse to cancel them, when they are bound to do so by the intention of the charter under which they were originally made. Considering this subject, therefore, with reference to those relations of the United States towards the late national bank and to the community which are derived from the charter of that institution, a prompt and efficient interference of congress is unquestionably demanded. They have derived large profits from the circulation of these notes, for the redemption of which their share of the capital was pledged; and they have now withdrawn that share of the capital from its former liability; they prescribe by the charter that all banking privileges, among which was that of issuing these notes, should terminate at a certain period, and that period is But there are other considerations bearing directly on the present situation of the commerce and business of the country, and on the respect due from congress to the laws and policy of the individual states, which ought not to be overlooked. It is a fact that the present Bank of the United States is in actual possession, having them within its own vaults, and under its control, of a fund of bank notes to the amount of about twenty millions of dollars over and above those in circulation, issued, to a certain extent, on the faith of the United States, and bearing a corresponding credit. There appears, at least in many portions of the country, a strong disposition on the part of the banks to resume specie payments; but the uncontrolled posses. sion of this vast amount of paper money will enable the present Bank of the United States, if so disposed, to retard, perhaps to prevent them from effecting that laudable and desirable object. It holds in its hand, under the apparent sanction of congress, an immense fund, which it can transport to any part of the country at its pleasure, and purchase the notes of the state banks, to be returned upon them en masse, at the very instant they shall endeavour to resume. What is there to prevent this institution from sending to New Orleans one or two millions of these notes, placing them in the possession of any local bank or its agents, and exchanging them for the notes of banks preparing to resume, so that they may be used to embarrass and retard their said that this is a proceeding arising from the large capital of the present Bank of the United States, and which is not consequent upon the issue of its old and uncancelled notes. It is the possession of those notes which exempts it from danger in the adoption of such a course. Independent of the additional credit attached to them from being made under a national charter, they are now circulated without the responsibility that attends those issued under the charter of the state; and it is to this cause that may be attributed the remark. able fact, disclosed in the statement of the bank on the 5th January last, that while they had on hand fifteen millions eight hundred thousand five hundred and seventeen dollars and seventy-three cents of the old notes, one million four hundred and three thousand and ninety-two dollars at their state bank agencies, and two millions seven hundred and thirty-three thousand nine hundred and ninety dollars in transito, making alto. gether no less a sum in their actual possession and dred and thirty-seven thousand five hundred and ninetyunder their control than nineteen millions nine hun. nine dollars and seventy-three cents of these old notes; when they had, also, in circulation among the community, the further sum of six millions two hundred and and seventeen cents of these same old notes; being an twenty thousand four hundred and sixty-seven dollars aggregate of the notes of the expired corporation, of twenty-six millions one hundred and fifty-eight thousand and sixty-six dollars and ninety cents; yet, at the same time, the whole outstanding circulation of their own notes, (exclusive of post notes,) only amounted to five hundred and forty-seven thousand six hundred dollars and forty-five cents, or about the fortieth part of the old notes in their hands and in circulation. On every note issued under the present state charter of Pennsylvania, the holder has by the state law a summary proceeding, if it is not redeemed on demand; more than this, the bank is bound, in case of refusal, to pay the high interest of 12 per cent.; and if such refusal be continued beyond a stated period, there is a | authority derived therefrom, or if any person or perprovision for the speedy forfeiture of its charter. sons shall knowingly aid and assist in any such act, every person so offending shall be deemed guilty of a high misdemeanor, and on conviction thereof, shall be punished by a fine not exceeding ten thousand dollars, or by imprisonment and confinement to hard labour not exceeding ten years, or by both such fine and imprisonment. But how is it with these notes of the late bank, of which it has obtained possession? To them none of these penalties of the law of Pennsylvania will apply; it has received them, and promises to redeem them as a mere trustee; and, in case of refusal, the holder, it is presumed, is to be driven to the tedious process of a suit in chancery, or some other form of protracted legal proceeding, to obtain that payment which he could enforce if the note had been issued by a state bank, in the most rapid and compulsory mode. Thus it is, that so long as congress permits this institution to keep and issue these notes, it gives it the power of circu-in which any bills, notes, checks, drafts, or other seculating a paper currency, free from the restrictions and safe guards which the state that chartered it meant to impose; it enables it to control the efforts of other banks for the resumption of specie payments; and leaves the citizen who takes or circulates these notes without any speedy protection and redress. SEC. 2. And be it further enacted, That in all cases in which any corporation has been or may be created by acts of congress of the United States, or in which the United States shall have been interested as a stockholder, the term of which corporation has expired, and rities, made under authority derived, or alleged to have been derived, from such act, shall be in the possession or under the control of any director, officer, or agent of the said expired corporation, or any trustee thereof, or any agent, or officer of such trustee, or any person having in his possession or under his control the proBut again: this voluntary trustee of the national perty of the said corporation, for the purpose of paying bank received its new charter from the State of Penn- or redeeming its notes and obligations, the several cirsylvania, on the expressed condition that it should issue cuit courts of the United States shall have jurisdiction no bank note of a less denomination than ten dollars. on the bill or petition of the United States to grant inIt is presumed to be part of the policy of that wise junctions to prevent the issuing, re-issuing, or transfer state, that the circulation of so large an institution of any such bills, notes, checks, drafts, or other securishould be so limited. The neglect of congress has de-ties; and also to cause such of the said bills, notes, feated this salutary policy; it has given to the trustee checks, drafts, or other securities, as have been rethe means and power of doing that which the State of deemed, to be delivered up and cancelled; and the said Pennsylvania intended should not be done; five dollar several courts shall have power to make all necessary notes are largely issued by the Bank of the United decrees and orders for the purpose of carrying into States chartered by Pennsylvania, though the legisla- effect the jurisdiction hereby conferred, and to execute ture of that state declared they should not be. Con- the same by due process of law. gress cannot be justified in permitting this. It is due to the State of Pennsylvania that they should respect her laws; that they should not, by any omission on BILLS OF THE OLD UNITED STATES BANK. their part, permit a power derived from them to be so exercised as to thwart her designs. While it is the solemn and evident duty of congress not to interfere with the institutions of the states, but to leave them to pursue the policy of the legislatures by which they were created, and to answer to those authorities for every violation, it is not less its duty to prevent that from being done indirectly, either by its permission or its neglect, which virtually infringes the law and policy of the states. Rightfully may the State of Pennsylvania complain, if, after strictly prohibiting the issue of notes of a denomination less than ten dollars, by this institution, the sanction or the neglect of congress should enable it to issue and circulate millions of five dollar notes. The following bill is, therefore, respectfully reported to the senate: A BILL to prevent the issuing and circulation of the bills, notes, and other securities of corporations created by acts of congress which have expired. TWENTY-FIFTH CONGRESS. In Senate, Tuesday, April 17, 1838. Bank came up as the special order of the day. No Amidst cries for the vote upon the bill, Mr. Linn, who had called for the question, said he would not press the vote now if the senator from Alabama wished to speak upon the bill. Mr. King had no intention of speaking upon the bill, and if the senate pressed its consideration now, he should vote against it. He was Be it enacted by the senate and house of representatives of the United States of America in congress as-uot satisfied of its constitutionality. sembled, That in all cases where the charter of any corporation which has been or may be created by act of congress of the United States shall have expired, or may hereafter expire, if any director, officer, or agent, of the said corporation, or any trustee thereof, or any agent or officer of such trustee, or any person having in his posssesion, or under his control, the property of the said corporation, for the purpose of paying or redeeming its notes and obligations, shall knowingly issue, re-issue, or utter as money, or in any other way knowingly put in circulation any bill, note, check, draft, or other security, purporting to have been made by any such corporation, whose charter has expired, or by any officer thereof, or purporting to have been made under Mr. Strange of North Carolina, agreed that the complaint of the chairman of the committee of the judiciary (Mr. Grundy) about the issue and circulation of the old United States Bank notes was a grievous one, and a very great abuse. Mr. Strange said he doubted the power of congress to pass the bill, and he should therefore vote against it. Mr. Smith of Connecticut, had not studied the bill, and did not know how to vote. He wished it postponed until to-morrow. Mr. Niles was also in favour of postponement, and after the yeas and nays had been ordered, on motion of Mr. Clay, upon the third reading of the bill, the bill was postponed till to-morrow. Mr. Wall, however, first expressed his opinion that it was constitutional and he should vote for its passage. The bill will come up to-morrow at one o'clock, and probably be voted upon without much debate. Washington, April 23, 1838. vell, Pierce, Rives, Roane, Robinson, Ruggles, Smith of Con., Tipton, Trotter, Williams, Wright, Young-27. Nays-Messrs. Clay of Kentucky, Clayton, Crittenden, Davis, King, Merrick, Nicholas, Prentiss, Preston, Smith of Indiana, Spence, Swift, White-13. HOUSE OF REPRESENTATIVES. After some unimportant business the anti-bank bill came up, when Mr. Clay said, we have nothing to do with the bank of Pennsylvania called the United States The following are the yeas and nays in the house on Bank. We have to deplore that we have not a United States Bank. A lack of such an institution has sur-the engrossment of the bill from the senate to prohibit rounded the country with embarrassments, with mis- the re-issue of the old United States Bank. fortunes, upon every side and upon every subject. As for Nicholas Biddle, said Mr. Clay, his merchandise, his non-resumption, his cotton bags, &c. we have nothing to do with them-we want nothing to do with them, so far as I know the opinions of my friends and my own mind. What is he to us, or we to him, that he or his bank should be continually dragged before the senate? I had hoped, said Mr. Clay, that an attempt to aid resumption, which was made in the other house would have been better treated there by the friends of the administration than it was treated. That resolution voted down by the friends of the administration showed that they were opposed to resumption. I think, said Mr. Clay, the bill before the senate unnecessary. Among the irredeemable paper currency now afloat through the country, there was none so good as this,-none preferred to this,-it was good from one end of the Union to the other. In the very town of the honourable senator from Tennessee, (Mr. Grundy) who had most strongly advocated the bill, the notes of this bank were commanding a premium of nineteen and eighteen per cent.-pre. cisely the same premium demanded in the Nashville market for specie itself. Throughout the south and southwest it bears a great premium. Mr. Clay said there was no occasion for legislation at this moment. Now was the time for encouragement-the time for kindness-for conciliation-not for legislation or exaction and punishment. No senator doubted but that the notes of the old bank would be redeemed, and speedily redeemed. There was no senator who did not prefer the notes of this bank to the notes of any other institution. I do think, said Mr. Clay, the bill involves the most enormous stretch of power I ever witnessed, or that ever has been attempted. Mr. Clay here gave his opinions upon the constitutional question. Yeas-Messrs. Anderson, Andrews, Atherton, Banks, Beaty, Beirne, Bicknell, Birdsall, Brodhead, Cambreleng, Casey, Chaney, Chapman, Cleveland, Coles, Connor, Crary, Cushman, Davee, DeGraff, Duncan, Edwards, Elmore, Farrington, Fry, Gallup, J. Garland, Grantland, Gray, Griffin, Haley, Hammond, Hawkins, Holt, Hopkins, Howard, Hubley, W. H. Hunter, T. B. Jackson, J. Johnson, N. Jones, J. W. Jones, Keim, Kemble, Klingensmith, Leadbetter, Lewis, Martin, McKay, R. McClellan, A. McClellan, McClure, Miller, Montgomery, Moore, Morgan, S. W. Morris, Noble, Palmer, Parker, Parmenter, Parris, Paynter, Phelps, Pratt, J. H, Prentiss, Reily, Rives, Sheffer, Spencer, Stuart, Taylor, Thomas, Titus, Towns, Turney, Vail, Vanderveer, Wagener, Webster, Weeks, T. T. Whittlesey, Jared W. Williams, Worthington, Yel!-87. Nays-Messrs. Alexander, Heman Allen, Aycrigg, Bell, Bond, Briggs, W. B. Campbell, Chambers, Cheatham, Corwin, Cranston, Darlington, Dawson, Davies, Dennis, Dromgoole, Dunn, Evans, Everett, Ewing, Fillmore, R. Garland, Goode, J. Graham, Grennell, Hall, Halstead, Harlan, Harper, Hawes, Henry, Herod, Hoffman, Jenifer, W. C. Johnson, Kennedy, Legare, Lincoln, J. M. Mason, S. Mason, Maury, McKennan, Menefee, Mercer, Milligan, Mitchell, Calvary Morris, Naylor, Noyes, Ogle, Patterson, Pearce, Peck, Phillips, Potts, S. S. Prentiss, Rariden, Randolph, Ridgway, Robertson, Robinson, Russell, Sergeant, Slade, Southgate, Stanly, Stratton, Taliaferro, Tillinghast, Toland, Albert S. White, Elisha Whittlesey, Lewis Williams, Joseph L. Williams, C. H. Williams, Wise, Word, Yorke-79. From the United States Gazette. Mr. Grundy-The Old and New United States Bank.-We perceive that Mr. Grundy has brought in a bill to punish with fine and imprisonment-a fine of ten thousand dollars and imprisonment of ten yearsthe Bank of the United States for re-issuing the notes of the late Bank of the United States. This seems to be the latest act of servility to Mr. Van Buren, and it is a little ludicrous for these champions of state rights to propose a law declaring what a state institution, chartered by the sovereign State of Pennsylvania, shall or shall not issue. The whole question is as simple as possible. Following this part of the subject, he said the bill contained the most odious and infamous power which could be conceived of. No federal party, or any portion of the federal party, had ever contended for such power. As for Mr. Biddle, said Mr. Clay, addressing Mr. Buchanan, "hang him if you please." He belongs to Pennsylvania. We have nothing to do with Nick Biddle or Nick Biddle's bank. Pennsylvania made it, and Pennsylvania was responsible for it; and The old Bank of the United States, at the expiration of if, said Mr. Clay, the senator from Pennsylvania thinks its charter in March, 1836, transferred all its property proper to stand up here and abuse him, he should not to the new Bank of the United States, and the new quarrel with him for that. He thought, however, it bank engaged to pay all the debts of the old bank. would appear better if Mr. Buchanan would stand for. Among these debts were upwards of twenty millions ward in defence of his own constituents. Speaking of of dollars of notes of the old bank. About fourteen the sub-treasury bill and one of Mr. Buchanan's pro- millions of them have been redeemed already. There phecies, Mr. Clay said, when I can see that experiment remain out still about six millions, which are in a buried, as I hope in God it will be, in the bowels of the course of payment. But since the suspension of speearth, then I will have some confidence in his prophe-cie payments, the new bank instead of charging these cies-not till then. Mr. Buchanan made a brief rejoinder to Mr. Clay, after which Mr. Morris demanded the yeas and nays. Being ordered, they were as follows: Yeas-Messrs. Allen, Benton, Brown, Buchanan, Calhoun, Clay of Alabama, Cuthbert, Fulton, Grundy, Hubbard, Linn, Lumpkin, Lyon, Morris, Niles, Nor notes at once to the old bank, issues them in preference to issuing its own-simply, as we have always understood, because during the suspension of specie pay. ments the new notes would bear an interest of twelve per cent., the old of only six-just as the New York banks do not issue more than they can avoid of their own notes. Of the right of the bank to issue the notes of another | From the New York Journal of Commerce, of April 18. bank, we take it for granted there can be no possible doubt. The Bank of the United States agrees to pay any one responsible. The new bank agrees to pay all We do not understand how these proceedings make these notes-is bound to pay them-but if while as the trustee of the late bank it pays these notes, in its inde- obligations against the old bank. It has done so; for pendent character of a bank in the course of its own the old bank have therefore been discharged, by the it has redeemed these very notes. The obligations of business, it has just as good a right to issue these notes as the Bank of the Metropolis or any other bank has. payment already made. Having provided for its notes After the resumption of specie payments the bank and paid them, there is an end of its responsibility. will, we understand, of course close the account of the The notes are in the condition of the notes of any dead late bank, and cease to issue the old notes-unless conman or dead institution, after they have been paid by executors or trustees. Suppose somebody should get gress passes any law prohibiting it. But if congress passes any law prohibiting the bank from issuing these possession of the old notes of Stephen Girard's Bank, notes, we take it for granted that the bank will con-in circulation; no one will pretend that the executors which have been paid by his executors, and put them tinue to issue them at least we hope so-if for no of Mr. Girard would be bound to pay them. On the other reason, for this-because we wish to ascertain whether the congress of the United States, after pass- such an act, would have his conduct characterised by contrary, we reckon that whoever should be guilty of ing a sub-treasury law, can proceed to break down all the state banks, by prescribing what they shall or shall his crime. It must be obvious to every legal man, or some short words, and be sent to prison to answer for man of common acquaintance with business, that the obligations of the old bank have ceased, and of course the new bank is not held by virtue of its engagement to pay all claims against the old. Who then is responfor these notes are not its obligations. We think, sible? The new bank is not, on its own account,sponsible for these notes. In the hands of the holders therefore, our declaration is true, that nobody is rethey have no more legal validity than brown paper. If the United States and be paid in these bills, we supan individual were to present a check at the Bank of pose it would not in law be counted any payment at all; but that in an action of fraud he would recover on not issue. The Pennsylvania bank of the United States has settled all its claims with the government of the United States, which has no longer the slightest right or the slightest pretext for interference in its affairs. The bank is responsible to Pennsylvania, and to Pennsylvania alone, for its conduct. To show how perfect the security for these notes is, we copy what follows from the proceedings of the two banks, as communicated by the secretary of the treasury himself to congress and published among the public documents, so that the whole matter is already known to congress. "At a meeting of the directors of the Bank of the the original debt, just as if payment had been made in United States, held March 2, 1836 :— counterfeit notes, or in any other valueless thing. But after the notes have passed into second hands, the holder possesses no such claim on the bank. His rights are against the individual from whom the notes were received; and this claim, be it remembered, is not a claim on the notes, but on the ground expressly that "A communication was received from Matthew L. Bevan, Esq., President of the Bank of the United States incorporated by congress, containing the resolutions adopted at a meeting of the stockholders of that institution, held on the 19th day of February last-there is no claim on the notes, and that the notes are among which resolutions was the following, to wit: “Resolved, That all and singular the money, goods, chattels, rights, credits, and personal estate whatsoever, owned by, or belonging to, or in the custody and possession of this bank, wheresoever the same may be, together with all evidences and securities for the same, be, and the same are, hereby assigned, transferred and conveyed to the president, directors, and company of the Bank of the United States incorporated by the State of Pennsylvania, for the following considerations and upon the following terms:-That is to say, "1. That the president, directors, and company of the Bank of the United States incorporated by the State of Pennsylvania, with and out of the same, pay, satisfy, and discharge all debts, contracts and engagements, owing, entered into, or made by this bank, as the same shall become due and payable, and fulfil and execute all trusts and obligations whatsoever arising from its transactions, or from any of them, so that every creditor, or other rightful claimant shall be fully satisfied. "Whereupon, on motion of Mr. Sergeant, it was "Resolved, That this bank does hereby assent and agree to the said resolutions, and to each and every part thereof, and to all and singular the trusts, terms, and conditions, in the said resolutions, and each and every of them contained, and does hereby engage and bind itself to do, perform, and execute the several duties and engagements therein stipulated to be performed and executed-and will, when thereunto required, make and execute any other assurance that may be deemed necessary." good for nothing. We have no hesitation in giving our opinion, whether it be worth much or little, that if Mr. Biddle should refuse to pay any portion of the whole six millions of these notes, now out, there is no court any where which would compel him to pay them. An exposition of the fiscal affairs of the Government, and of their condition for the past year, will be made to you by the Secretary of the Treasury. The available balance in the Treasury, on the 1st of January next, is estimated at $2,765,342. The receipts of the year, from customs and lands, will probably amount to $20,615,598. These usual sources of revenue have been increased by an issue of Treasury notes; of which less than eight millions of dollars, including interest and principal, will be outstanding at the end of the year, and by the sale of one of the bonds of the Bank of the United States, for $2,254,871. The aggregate of means from these and other sources, with the balance on hand on the 1st of January last, has been applied to the payment of appropriations by Congress. The whole expenditure for the year on their account, including the redemption of more than eight millions of Treasury notes, constitutes an aggregate of about forty millions of dollars, and will still leave in the Treasury the balance before stated. Nearly eight millions of dollars of Treasury notes are to be paid during the coming year, in addition to the ordinary appropriations for the support of Government. For both these purposes, the resources of the Treasury will undoubtedly be sufficient, if the charges upon it are not increased beyond the annual estimates. No excess, however, is likely to exist; nor can the post. poned instalment of the surplus revenue be deposited with the States, nor any considerable appropriations beyond the estimates be made, without causing a deficiency in the Treasury. The great caution, advisable at all times, of limiting appropriations to the wants of the public service, is rendered necessary at present by the prospective and rapid reduction of the tariff; while the vigilant jealousy, evidently excited among the people by the occurrences of the last few years, assures us that they expect from their representatives, and will sustain them in the exercise of, the most rigid economy. Much can be effected by postponing appropriations not immediately required for the ordinary public service, or for any pressing emergency; and much by reducing the expenditures where the entire and immediate accomplishment of the objects in view is not indispensable. that of 1837 is most striking. The short duration of the latter; the prompt restoration of business; the evident benefits resulting from an adherence by the Government to the constitutional standard of value, instead of sanctioning the suspension by the receipt of irredecmable paper; and the advantages derived from the large amount of specie introduced into the country previous to 1837, afford a valuable illustration of the true policy of the Government in such a crisis. Nor can the comparison fail to remove the impression that a national bank is necessary in such emergencies. Not only were specie payments resumed without its aid, but exchanges have also been more rapidly restored than when it existed; thereby showing that private capital, enterprise, and prudence are fully adequate to these ends. On all these points experience seems to have confirmed the views heretofore submitted to Congress. We have been saved the mortification of seeing the distresses of the community for the third time seized on to fasten upon the country so dangerous an institution; and we may also hope that the busi ness of individuals will hereafter be relieved from the injurious effects of a continued agitation of that dis When we call to mind the recent and extreme em-turbing subject. barrassments produced by excessive issues of bank The limited influence of a national bank in averting paper, aggravated by the unforeseen withdrawal of derangement in the exchanges of the country, or in much foreign capital, and the inevitable derangement compelling the resumption of specie payments, is now arising from the distribution of the surplus revenue not less apparent than its tendency to increase inordiamong the States as required by Congress; and con-nate speculation by sudden expansions and contrac sider the heavy expenses incurred by the removal of tions; its disposition to create panic and embarrassIndian tribes; by the military operations 'in Florida; and on account of the unusually large appropriations made at the last two annual sessions of Congress, for other objects; we have striking evidence, in the present efficient state of our finances, of the abundant resources of the country to fulfil all its obligations. Nor is it less gratifying to find that the general business of the community, deeply affected as it has been, is reviving with additional vigour, chastened by the lessons of the past, and animated by the hopes of the future. By the curtailment of paper issues; by curbing the sanguine and adventurous spirit of speculation; and by the honourable application of all available means to the fulfilment of obligations, confidence has been restored both at home and abroad, and ease and facility secured to all the operations of trade. The agency of the Government in producing these results has been as efficient as its power and means permitted. By withholding from the States the deposite of the fourth instalment, and leaving several millions at long credits with the banks, principally in one section of the country, and more immediately beneficial to it; and, at the same time, aiding the banks and commercial communities in other sections, by postponing the payment of bonds for duties to the amount of between four and five millions of dollars; by an issue of Treasury notes as a means to enable the Government to meet the consequences of their indulgencies, but affording, at the same time, facilities for remittance and exchange; and by steadily declining to employ as general depositories of the publie revenues, or receive the notes of all banks which refused to redeem them with specie; by these measures, aided by the favourable action of some of the banks, and by the support and cooperation of a large portion of the community, we have witnessed an early resumption of specie payments in our great commercial capital, promptly followed in almost every part of the United States. This result has been alike salutary to the true interests of agriculture, commerce, and manufactures; to public morals, respect for the laws, and that confidence between man and man which is so essential in all our social relations. The contrast between the suspension of 1814 and ment for the promotion of its own designs; its interference with politics; and its far greater power for evil than for good, either in regard to the local institutions or the operations of Government itself. What was in these respects but apprehension or opinion when a national bank was first established, now stands confirmed by humiliating experience. The scenes through which we have passed conclusively prove how little our commerce, agriculture, manufactures, or finances, require such an institution, and what dangers are attendant on its power-a power, I trust, never to be conferred by the American people upon their Government, and still less upon individuals not responsible to them for its unavoidable abuses. My conviction of the necessity of further legislative provisions for the safe keeping and disbursement of the public moneys, and my opinion in regard to the measures best adapted to the accomplishment of those ob jects, have been already submitted to you. These have been strengthened by recent events; and, in the full conviction that time and experience must still further demonstrate their propriety, I feel it my duty, with respectful deference to the conflicting views of others, again to invite your attention to them. With the exception of limited sums deposited in the few banks still employed under the act of 1836, the amounts received for duties, and, with very inconsi derable exceptions, those accruing from lands also, have, since the general suspension of specie payments by the deposite banks, been kept and disbursed by the Treasurer, under his general legal powers, subject to the superintendence of the Secretary of the Trea. sury. The propriety of defining more specifically, and of regulating by law, the exercise of this wide scope of Executive discretion, has been already submitted to Congress. A change in the office of collector at one of our principal ports, has brought to light a defalcation of the gravest character, the particulars of which will be laid before you in a special report from the Secretary of the Treasury. By his report and the accompanying documents, it will be seen that the weekly returns of the defaulting officer apparently exhibited, throughout, |