MARCH 13, 1832.] Bank of the United States. [H. OF R. We may learn a lesson to guide us in this matter, from organization in connexion with the Government and the the cautious course of Congress when the first applica- States. But, above all, for a reason operating upon us with tion was made for the renewal of the charter of 1791. greater force than it did then, and which we cannot upon A memorial for that purpose was presented to this House principle disregard--that the ninth Congress, not being in 1808, three years before the time fixed for the expira- urged to act by any positive State necessity, thought it would tion of the charter. Though urged with earnestness, and be wrong to do so upon a subject more properly belonging with talent fully equal to any which now advocates the to the deliberations of the tenth. This commendable deliimmediate renewal of the present charter, the utmost that cacy to its successors becomes more worthy of our imitathis branch of Congress would do, was to refer the me- tion, as it gave to the people, as it will now do, if we do morial to a Committee of the Whole House; reference not act at this session upon the memorial, an opportunity equivalent to a refusal to consider it during that session. to choose their representatives in reference to the opinions After this disposition of it here, a memorial was pre- of candidates upon this great national question. The only sented to the Senate, and there the application was safe legislation in this country is the reflection of public thought premature, and was referred to the distinguished sentiment, after a full opportunity has been given for its gentleman (Mr. Gallatin) who then presided over the expression. We have then a safe precedent to guide us Treasury Department, with instructions to make a report as to the proper time for considering the question of a reupon the subject at the next session of Congress. In newal of the bank charter. Another session of this Coneleven months after, and only two years before the expira- gress, an entire Congress, the twenty-third, and a part of tion of the charter, the Secretary made a report, and the first session of the twenty-fourth Congress, will inurged the renewal, but with modifications, which were tervene, before the charter will expire. sagacious anticipations of the kind and extent of discon- The people will have two opportunities to express their tent which the organization of any bank without them opinions in regard to the bank, by the election of their would occasion. The report also stated, with positive representatives, before any necessity will exist for the approbation, the services the bank had rendered to the agitation here of the question of the renewal of the charGovernment in loans, its utility in collecting, keeping, ter. And the popular branch of the twenty-third and and transmitting the revenue; and it contained a state- twenty-fourth Congresses will be enlarged by the addition ment of its condition, much and deservedly calculated to of thirty or forty members to be made by the ratio of enlist public sentiment in its support. For it had more representation which may be fixed under the last census; specie in its vaults than it had notes in circulation, with a in fact, being the representation of our increased populareserved fund, arising from undivided profits, of more than tion in ten years of more than three millions of persons, five hundred thousand dollars, to meet losses which might now in effect not represented here according to the spirit Occur. What a contrast to the condition of the present of the constitution. Does not this objection outweigh bank, as is exhibited by its monthly statements, and of its every reason which has been urged in favor of a renewal relative claims to a renewal of the charter. With only of the charter at this session of Congress? With it starseven millions of specie, twenty-five millions of notes in ing us in the face, can we act with propriety, unless forced circulation, sixty-six millions of discounts, and a foreign by some great necessity connected with the general welfare debt of sixteen hundred thousand dollars, causing not of the country? It is not pretended that any such exists, only its total inability to relieve the impending commer-and no one public reason has been given for precipitating cial embarrassments, but probably coercing it to increase them, by a reduction of loans, unless this necessity shall be obviated by a free use of Government deposites, or by a greater rise in the value of our exports than can be anticipated. action upon the subject. It will, indeed, be very advantageous to the stockholders in the bank to obtain a renewal of the charter at this time. And the Government, if it retains its shares, will be partakers of the enhanced value which will be given to the stock by the renewal; or the bank will be better able to purchase and to dispose of it to advantage. But it is not the small profit which the Government will receive, or any community of moneyed interest between it and individuals, however large it may be, that can buy away the impressions of the people of this country of their right fully to canvass every measure of great national moment, with the view of throwing the force of their wishes and opinions into the scale of legislation. Without any very sensitive apprehension of popular displeasure, or any desire to excite it in others, I must declare, sir, that we will deserve it, if the right of our constituents to be heard upon this subject shall be disregarded by us. A conscientious responsibility to principle will prevent me from being a party to any such usurpation of the privileges and expectations of the people. But Congress again refused to consider directly the proposal to renew the charter, notwithstanding the report and earnest recommendation of the Secretary, though urged to do so by much talent, character, and experience, and by all those considerations connected with that crisis in our history, which plainly indicated that the Government would need the greatest facility in raising supplies, as its obligation to maintain our rights and honor by war was becoming every day more apparent. The supporters of the bank, too, used then all those expedients and persuasions which have been recently repeated here, and urged their cause by menaces of evil, and deploring the ruin which would be occasioned by the refusal of Congress to act decisively upon the subject. Nor did Congress refuse to do so, as many suppose, in consequence of party feeling, or from any resentment against the bank for its As we are not urged by any public necessity to act at long exclusive political complexion; nor from the pre- this session, let us inquire if there be any meritorious ponderance of any constitutional objection to such an in- cause connected with the bank itself, which should induce stitution. Prominent men of the then triumphant party us to do so. It is said to have been prudently and skilwere advocates for the immediate renewal of the charter, fully managed, and to be at this time in the soundest condiand all who interposed the constitutional objection were tion: to be entirely adequate to maintain all the objects uniformly left in lean minorities. And it was as well for which it was made. Its condition, then, does not exknown then, as it was afterwards in 1816, that Mr. Madi- plain the cause of the memorial having been presented to son's views of the force of precedent upon constitutional this House so prematurely. Does any thing lower in the points, long acquiesced in by all the departments of the Government, would induce him to sign a bill for the renewal of the charter. No, sir. Congress put off the subject, because substantial differences of opinion existed, as they now do, concerning the powers and privileges which should be given to a bank, as to what should be its future, to prevent the bank from continuing its loans to the full extent of the proper claims of its customers, unless the ability to do so has been impaired by injudicious management? Does any cause then exist at present, or which can be apprehended, to oblige the bank to accommodate its busi H. OF R.] Bank of the United States. [MARCH 13, 1832. Nor must it be'forgotten that the increased value which have said must be given to the stock of the Bank of the United States, if the charter should be renewed at this time, will be an unfair advantage in favor of the holders of it, over the owners of stock in the State banks. ness to the ultimate decison of Congress upon the ques-crease the fortunes of any class of persons, and to alter tion of renewal, in such a manner as to produce great the relations which men have in a pecuniary point of view losses to the public, or even material inconvenience? Will to each other. The accidents of life, and superior sagaa renewal of the charter now put it in the power of the city of some, change them often enough for the good of bank to lessen the commercial embarrassments which society, and have established an economy which legislaare, and will be for a year to come, severely felt in our tion cannot invade without producing discord, discontent, principal seaports? A fair use of its ability to discount and inequality. The objection, too, against renewing the under the charter, is the measure of relief which it can charter at this time, will be more obvious, when we regive, and this cannot be extended by renewal, without an flect that we shall legislate largely for the benefit of increase of its capital, which it does not ask. Are the foreign stockholders. They now own more than eight friends of the bank here, or elsewhere, prepared to say millions of bank stock. The renewal of the charter will that its transactions of the last year have not deprived it increase the value to twelve the moment it is made. In of all power to relieve the distresses of our merchants, less than three years, certainly before the present charter if they shall not in fact aggravate them, whether the will expire, it will be worth sixteen millions. Sir, let me charter be or be not renewed? In one word, sir, does the not be misunderstood. I am not objecting to foreigners bank, by asking for a renewal at this time, propose to be investing capital in our institutions, or invoking prejudices of more service to the public than it can be without it? against the bank, because they have so large an interest in Will it give to the bank increased ability to be useful? No it. This is not the time to discuss that point. I am not such intimation is given in its memorial; no one will ven-now permitted to do so. But I do object, upon the soundture to suggest it. The conclusion then must be, that est principles of policy, against any legislation of ours neither the welfare of the nation, the condition of the which does not guard against the consequence of giving a bank, nor any anticipated increased utility, give to the double value to the investment of foreigners. memorial any claim to our consideration. Why then is it urged upon us? The time is politically favorable; the ex-I traordinary pressure in the money market array around the bank all who have been, or hope to be, relieved by it. In moments of pain, men do not discriminate very accurately into the causes which produce it, or hundreds who The sound banking capital in State institutions, in our have signed petitions in favor of the bank would have de- commercial cities, is near ninety millions of dollars. The tected one source in part of their sufferings. Nor are we accommodations afforded by it, relatively, against those of accurate judges of the means of relief for our infirmit es, the Bank of the United States, are as six to one at least. or hundreds who anticipate the aid of the bank would have Its importance, therefore, is, or ought to be, of great naseen, from its annual statement, that it was not in a conditional consideration, and protection from injury. Why tion to give it. But besides the time and the pressure to then should we, by renewing the charter of the Bank of which I have alluded, as inducing this early application, the United States, immediately make so great a difference in perhaps the strongest inducements for it are the positive the value and currency of those respective stocks? Foreignadvantages which the stockholders will derive from an ers are beginning to appreciate the stability of our State early renewal of the charter. I call the attention of gen- banks. They have already made investments in many of tlemen to the nature, extent, and consequences of those them; the desire to do so is increasing, as our system of advantages, because they form an insuperable obstacle government is better understood abroad. The confedeagainst any action upon the memorial at this session of racy is now known to the intelligent of all nations to be Congress, and all of them may be obviated by postpone-made up of distinct political communities, each having the ment, and a little arrangement hereafter. responsibility of the whole for its contracts and pecuniary If the charter shall be renewed now, the bank will have engagements, guarantied by the character of a people a certain existence for four and twenty years, with the equal to any in the world, and by all that accountability certainty of being perpetuated. Admitting that its divi- which the laws of nations exact. Just then at the moment dends shall be no larger than they have been, the stock when the stockholders in our State banks are beginning will advance to fifty per cent. above the original cost of a to reap some of the fruits of successful management, we share, in consequence alone of the time for its duration. are called upon to give an exorbitant and sudden rise to If it shall divide seven per cent. per annum, I am told by the stock of the Bank of the United States, which will practical men who are ready to make the investment upon destroy all competition between them. This cannot be the contingency, that a purchase at fifty per cent. would right. be a profitable speculation. But if the bank shall divide It has occurred to me also, sir, that, if we will advert eight per cent., which it is probable it will do, considering to the history of the bank, ordinary prudence will warn the credit it will enjoy from its connexion with the Gous not to pursue a course involving even an apparent vernment, the use it will have of its funds, and the power pledge to consider the renewal of the charter at this scsit has over all State banks, and that a dividend of eight per sion of Congress. cent. will not be equal to the average annual dividend of It cannot be denied that the management of it for the the first bank throughout the whole of its term, then the two first years of its existence was unfortunate for the stock will rise to one hundred per cent. above the original country and the stockholders. Three more elapsed be cost, because a permanent four per cent. stock is, and fore it sufficiently recovered from its losses to be extenalways will be, worth par, and because, after the payment sively useful. Our favorable experience of its utility must of our national debt, there will be no stock besides that be collected from the succeeding nine years; for the last of the bank, of such general currency in all parts of the and the tenth, time will determine, and that not very disUnited States, none which will be an object of such ge-tinctly, if it shall be taken into the account in favor of the neral investment, nor any so high abroad. The confi-bank. Four years of its charter are unexpired, and yet, dence felt in the stability of this Government by the with such results, and with a fifth of its existence remaincapitalists of all nations, under such an arrangement as ing, Congress is asked to deprive itself of all the advantanow exists to pay the dividends at certain points in Europe, ges of future experience growing out of its transactions. must produce such a result. If it could occur without in Sir, Congress should have the longest possible time to any way affecting the interest of others, it would be a form an opinion of the utility of the bank, and to know sufficient reason to restrain us from renewing the charter how far its entire management shall entitle it to a renewal at this time. Our legislation should never be used to in- of life; the longest time to ascertain its bearing upon MARCH 13, 1832.] Bank of the United States. [H. OF R. known what our revenue hereafter is to be, the rate of interest to be paid to the Government upon deposites cannot be correctly fixed, as it must be determined, in great part, by the amounts which the bank shall from time to time have in use. other interests, and to mature those modifications which vision is made for the payment of interest upon deposites, the changed condition of our country, arising from its but the rate is left in blank. I will not argue now what entire freedom from debt, will make proper and neces it should be, but I may say, without making any trespass sary, whether this bank shall be rechartered, or another upon the privileges of debate on the motion before us, be made to take its place, with all and more than its abili- that no question of national interest connected with the ty to be useful, and without its powers to do harm. bank is so important, or more difficult to settle--requiring The modifications of the charter which have been al- more knowledge in detail of what the business of the bank ready proposed, form a curious and important subject of has been upon deposites. As a question of taxation, or inquiry, and interpose strong objections against any re- to lessen taxes, it is of incalculable importance, from the newal before they have been fully considered. It would revenue which such a provision may be made to produce. not be in order to argue them at this time, and I shall not Sir, this matter is not well understood by us, because it is do so. But it is allowable to advert to them in detail, that a novel thing in this country for persons to receive interest we may have a full understanding of the bearing which upon deposites in banks, which they may draw for when they have upon the main question of renewal. Some per- they please. But it is becoming known, and will be pracsons, whose experience in Government and banking gives tised extensively in a few years. Banks are now offering to their opinions great weight, declare that it is unwise for to receive and pay an interest of three per cent. upon curthe Government to hold any stock in the bank. And the rent deposites. Until the great change shall take place Government did not own any shares in the first bank. of reducing our revenue from imposts to the wants of the Others object to foreigners being permitted to hold any Government, which all agree should be done; until it is stock in a national bank. It is thought we have capital enough at home for the purpose, and that the advantages to be derived from such investments should be secured to our own citizens, if for no other end than to prevent so much of the productive industry of the nation from being carried abroad annually, to pay dividends to foreign stock- It is much questioned, also, if the privilege to deal in holders. Mr. Gallatin correctly says, such an investment foreign exchange should be continued to the bank. It by foreigners will operate as a foreign loan, taking from belongs to the community upon principle, and the monothe country the annual interest upon it. And to this in- poly which the bank has of it at this time is made profitaconvenience he yielded so far as to suggest a modification ble to it, at the expense of all whose business accumulates of the first bank when it applied for a renewal of its char- funds abroad, and to all whose debts abroad require payter, providing for the repayment of its stock held by fo- ment there, when they have not produce to ship. Now reigners by a new subscription to the same amount, in the price of exchange is no longer regulated by the opefavor of citizens. Again, it is strongly urged by many rations of trade, as it should be, but by the power of the that the States of this Union could be advantageously in- bank to make it rise or fall at its pleasure. terested in a large portion of the capital of a bank, not- with its unrivalled means and credit, needs only to expand withstanding the number of institutions which they have or contract its loans, and foreign exchange must rise or chartered; that such an arrangement might be made fall. It then buys to sell, realizing all the differences without in any way interfering with the fair advantages of caused by its own contrivance. You have given the priour State banks. The abstract proposition has the autho- vilege to it, to apply this power when it pleases to produce rity of Mr. Gallatin to sustain it. When it was proposed such effects, and it may be no reproach to its directors to to increase the capital of the first bank from ten to thirty use it, as it is all in the way of trade. But the inconvenimillions, he proposed that fifteen millions should be sub- ences and losses caused to others from the bank having scribed by the States, and suggested that their subscrip- the privilege, at least demand from us an inquiry into this tions should be paid in ten annual instalments. And such point, that we may know if it be of national benefit, or exwas his regard to the feeling which the States had shown clusively of bank profit. It is an extensive subject, and upon this subject, that he proposed no branch of the bank will one day or other be fully discussed here, though it should be established in any of them, unless applied for cannot now be done. The bank, by an act of a State Legislature. There are connected In these brief notices of the modifications which have with the suggestions of the States being interested in a been suggested, it is probable some that are important bank, several others of much importance. For instance, have escaped me; but, sir, there are two which I confiwhat portion in the direction of a national bank should be dently rely upon the good sense of this House to make given to the States? At what rate of interest, and to what without hesitation. I mean that which will compel the amount loans should be made to the States, and what tax bank to receive, in payment of debts due to itself, its own they should be allowed to levy upon the capital which notes wherever made payable, and that of restricting it may be assigned to the branches established in them? from putting into circulation notes of less than twenty dolThese, and other questions of the same kind, we shall lars. The first it may do without loss, though it may leshave to discuss and determine when we consider the me- sen profits. But it should be remembered that the profits morial for the renewal of the charter. For one, I am dis-accruing to the bank by its not receiving its own notes in posed to do so more deliberately than can be done at this payment of debts due to itself, are indirect, never consession of Congress; and for a reason apart from their in- templated when the privilege was given to it to issue bills trinsic importance, which is, that the National Government payable at its branches, and only to be made by the bank having assumed irrevocably a concurrent power with the cashing its own notes at a discount, or receiving them in States to establish banks, it is proper that great conces- payment at the rate of the difference of exchange between sions should be made to the interests of the latter, that the places where a debtor of the bank wishes to pay them, their power, in this regard, may not be entirely absorbed and where the bills which he has may be payable, or the in that which has been assumed. Other modifications, debtor is forced to incur the expense of a discount with too, of great interest, have been suggested, and which we the bank to take up its demand against him, though he has have not time enough at this session of Congress to settle. its bills in hand, or a sale must be made of them to brokers For instance, to what amount, and for what objects, and at a loss for such notes as the bank will receive in payat what rate of interest, the Government shall borrow from ment. In either event, it is increasing the sum the debtor the bank; and the rate of interest which the bank shall pay has to pay to his creditor. The contrary practice would to the Government for its current deposites. I perceive cause no loss, though it might prevent the bank from makin the bill reported for a renewal of the charter, that pro- ing a profit, in my opinion, altogether at variance with the H. OF R.] Bank of the United States. [MARCH 13, 1832. liberal spirit in which a national bank should deal with the our country, it is proposed to dissolve our partnership with public. the bank by the sale of the Government shares, and this In relation to the restriction of the issue of notes of can be done advantageously. Who can foresee the effects small denominations, it is strongly recommended by all which will be produced upon our policy, general condithose reasons which urge us to make efforts to increase tion, and trade, by this nation's entire freedom from debt? the metallic currency of this country. Until this be done, It requires, at once, and we are at this time engaged in the laboring classes of our people will never be put upon making arrangements for the reduction of more than half an equality in regard to the value of the wages they re- of our revenue from imposts-our only kind of taxation. ceive for their services, with that value which is paid to In whatever way it may be done, changes in the direction of all other persons carrying on any kind of business. The our commerce,quantities and kinds of produce imported and five dollar notes issued by the bank are no doubt of great sent abroad, must follow. Capital will seek other or more public convenience in the present state of our currency; extended channels for speculation and investment, and the but they are principally so to travellers. They are of no principles regulating consumption will probably act with convenience to persons who are stationary; for State bank an energy never experienced in any commercial nation, notes of similar amounts, where they are put out, answer and of which we cannot have an idea, until the effects shall all their purposes. The first are not to be found in gene-be seen and felt. Its influence upon agriculture, upon ral circulation. The State banks collect and hold them the staples of the South and West, and upon the manufacas specie, because they are payable every where, and tures of the North and East, must all be now left to conthey are an article of traffic in our country towns. The jecture. Plans for public improvement and the enterprises use of them, then, to the public consists in their conve- of private companies will extend the field and requirenience to travellers. Now, this may be obviated by a sub-ments for labor, perhaps entirely altering its relations of stitution of gold coin, which we have the ability to make value and employment to the existing state of things. to the full amount of all such notes in circulation. It is What sagacity can foretell the changes it may occasion in only necessary for us to alter our present false statutory our general policy, and upon that particularly connected relative value of gold to silver, to a correct standard, by with the disposition of our vast national territory? Upon which the inducement to export the gold now coined at the sale of that portion of it lying within the limits of the our mint will no longer exist. It is probable that this will States; upon the application of the revenue to be derived be done, as the propriety of it is becoming every day more from the sales of our land, now more than three millions obvious. But it cannot be done at this session of Con- annually, and increasing in defiance of all certain calculagress, and yet, being intended, its connexion with the cur- tion? Already we have a proposition from the Secretary rency is so important, that it forms a strong reason for us of the Treasury to sell to the States the national domain to abstain from making any inquiry into the affairs of the situated in them. It is countenanced extensively, as the bank, which shall be considered preparatory to the re- best manner to rid ourselves of a subject of great national newal of the charter at this session. But a more import- disquietude. The States desire to possess the lands. They ant modification of the charter, and one which we are not are jealous of that control which we must have over the prepared to determine, is that which proposes to limit the lands while we continue to own them, but which they think dividend to stockholders to a certain interest, and to de-interferes with their sovereignty, actual interests, and termine what shall be the disposition of the excess. It prospective welfare. They have some reason for disconwill be supported by great authority, and comes recom- tent, as the payment of the price of the lands into the namended by practical men in money affairs, some of whom tional treasury exhausts their means. This evil is augare in favor of rechartering the bank. Whether it shall menting, and may ere long cause feelings which this Gobe done as proposed in the memorial upon our table from vernment is not strong enough to control, but by the Boston, by a payment of one per cent. upon the capital exercise of powers which may make it too strong. The to the Government, and by permitting the States to tax so Secretary's proposal is and will become popular in every much of the capital as may be assigned to the branches part of the country. Something of the kind will be adoptone per cent., or by limiting the dividends to five per cent. ed in a year or two, and the organization of a national and paying the surplus into the national treasury, are ques- bank should and can be made to have some reference to tions which we have no right to determine, until the States this point, by which the States may, more conveniently, shall have had an opportunity to express themselves upon and without the pressure of extraordinary taxation, make the point, and after it has been thoroughly canvassed by the the purchase. The twenty-six millions of discounts enpublic. Under this arrangement, the bank would have joyed in the West, at this time, by the indulgence of the no temptation to use extraordinary means to extend its bank, and its five millions of currency in bank checks, are business, of which there has been, and upon good grounds, worthless accommodations, compared with the results much complaint. The stock would in ordinary times be which a due regard to the subject may produce to the worth a premium of ten per cent., and those who hold it Western States. It will not be as the bank loans now are, would reap a certain interest of five; advantages enough, money accumulating upon the use of credit, with all the and beyond which no prudent legislation will place per- contingencies attending business done in that manner-manently the capitalists in any nation. This and the other the mere increase of capital; but a national bank, properly suggestions for a modification of the charter of the bank, organized, may be made to those States the means of inwhich I have mentioned, and several others which I ab- dependence, of sovereignty over all the lands in their borstain from bringing to the notice of the House, show how ders, of the prevention of oppressive taxation, of an inimportant a task has been put upon us by the introduction crease of population and power. of the memorial, and how vain it will be to restrict the committee which may be appointed to inquire into the proceedings of the bank to any time, with the view of passing upon the main question at this session. The Nor can the effect which the entire payment of the debt will have upon our currency, be foreseen. prospect is favorable, cheering, but made up of so many contingencies, that no presumption dares to determine A more interesting reason, however, remains to be given what will be its aspect, even in that regard, in a year or for the postponement of this subject to a distant date. We two hence. Sir, the connexion which rechartering the are now upon the eve of a change in our condition, which bank has with the payment of our national debt, has been makes this nation the envy and admiration of all other na-happily and forcibly expressed by the Senator from Kentions. In one year, and three before the charter of the tucky, [Mr. CLAY.] In an address to a very large assembank will expire, the public debt will be paid. To effect blage at Cincinnati, in honor of that gentleman, not two this triumph of our system of Government, and jubilee for years since, after expressing his opinion that the bank MARCH 13, 1832.] term." had been for some years managed with "great ability and a sound currency. Our refuge was in a national bank, integrity," and had made an approximation towards the with powers, advantages, and privileges which, under any equalization of the currency as great as practicable, he other circumstances, would not have been granted. And says: "Whether the charter ought to be renewed or not, now, sir, in our changed and prosperous state, in a situanear six years hence, in my judgment, is a question of ex- tion in all things the reverse of what it then was, with a pediency, to be decided by the existing state of the sound currency and no national debt, we are asked to imcountry. It will be necessary, at that time, to look care-pose upon this nation in perpetuity that which was the fully at the condition of both the bank and the nation, to result of a temporary State necessity, and which was so ascertain if the public debt shall, in the mean time, be considered even by the framers of the bank. Some genpaid off, what effect that will produce; what will then be tlemen have hinted, in the course of this debate, that the our financial condition; what that of the local banks; the evils to which I have alluded, might have been prevented state of our commerce, foreign and domestic, as well as by the renewal of the first bank charter. But this is not the concerns of the currency generally. I am, therefore, the fact; for how vain would have been the Government's not now prepared to say whether the charter ought or reliance upon a bank of discount, circulation, and depoought not to be renewed on the expiration of the present site, with a capital of ten, twenty, or thirty millions, when the nation borrowed more than that amount in the course This extract contains the whole argument against the of a year. And as to any ability which such a bank would renewal of the charter of the bank, either at this session have had to prevent the depreciation of the currency, it of Congress or the next. It will no doubt have weight is much overrated, for it could only have done so by the with some gentlemen, who were not aware before of the agency of Government deposites, and the Government opinion of the speaker upon the point. It cannot fail to had, in fact, none then coming in with such fluency as make an impression upon those who have used the crisis could have given vigor to that agency. If the bank had as favorable to coerce a renewal of the charter, or its re- been rechartered with an increased capital, and had loanfusal. And it can be used successfully to sustain any re-ed freely to the Government during the war, it would commendation which the advisers of the Executive may have been at the end of it in the condition of the State make for the rejection of a bill for renewal, should one banks which aided the Government, without the means be passed at this session of Congress, if those gentlemen to give accommodations in the way of business, or to have stood in need of any aid of their ability to manifest to the redeemed its notes in specie, and consequently could not nation the propriety of the course they may take in such have restored the currency, but by enforcing payment of an event. Before leaving the subject of the payment of the revenue in gold and silver. This was what the Gothe national debt, I will advert, for a moment, to the con- vernment could have done without the bank; but it was trast of our condition now with what it was when the pre- a step which I have shown it was not thought prudent to sent bank charter was granted in 1816, and I do so take. The calamity might have been less, but it would because it has a direct bearing upon the question before still have been without a parallel in the moneyed difficul us. A year had not passed then, since the nation had ties of any nation. Sir, the war is now a matter of history, come out of war, burdened with debt. Our consolation we honor those who made and those who fought it, but was the lustre which had been cast upon our arms, and the still it was the war which occasioned the pecuniary diselevation of national character which it gave us in the tresses of this nation at the time alluded to. And had view of the world. The debt was one hundred and ten not the State banks aided the Government as they did, millions. The currency in circulation, by the aids which we would not have had means to carry the war on. Their the State banks had given to our treasury to carry on the services are forgotten, because all the consequences of war, and from irregular banking, had become so much their patriotism could not be foreseen; and ignorance and degraded, that it was no longer a transferable measure of prejudice now attribute to their selfish management the value, or representative of coin. There was not enough entire cause of the derangement of our currency, and fear of gold and silver in circulation for the ordinary transac- from them its recurrence if they should be without the tions of business, and the fiscal operations of the Govern- check of a national bank. Sir, I admit that the bank has ment were at a stand, for the want of a sound medium to been a check, and that it may be a wholesome check in pay the revenue. A total suspension of specie payments all future time, but it is now too strong, and, if continued had taken place by all the State banks to the south and as it is, must in time destroy that which it was only inwest of Massachusetts. They could not be brought to any tended to control to a limited extent. voluntary arrangement to resume specie payments, or to I now propose to inquire if the condition of the bank enable themselves to do so, and those who administered at this time is such as to entitle it to a renewal of the the Government feared coercion might extend the calamity charter immediately. This shall be done with all the rewithout affording relief to itself. The State banks having gard due to the characters and superior practical knowacquired forty millions of the Government stocks at a de-ledge upon this subject, which the gentlemen have who preciated rate, had made it a substitute for specie capital, direct its concerns. It shall be confined to an examinaand were deriving an interest upon it, which they were tion of its management during the last year, upon its own not inclined to relinquish, by selling it, to replenish their vouchers. Should results prove hereafter that it has vaults with specie. In this condition of our affairs, it was been injudicious, still I would not pass a harsh judgment obvious that something must be done to arrest the march upon errors arising in part from occurrences which were of ruin and the destruction of our commerce. And not foreseen, though I fear too much from an anxiety to nothing could be done without the intervention of Govern- make large dividends. But, sir, the test of the fitness of ment. Two remedies were suggested. One, the issue those who have so large a share in regulating the curof treasury notes as a circulating medium; the other, the rency and controlling the moneyed operations of the creation of a bank upon such liberal principles as would country, should be a vigilant attention to the actual state hold out inducements to capitalists to invest in it, and to of things, to guard against the future. We may not be carry it into operation as soon as possible. Experience able to see far enough into futurity to go on, but the had shown, fully, that the first could not be done success-results of time in regard to commerce are generally suffully, for, besides being a bad substitute for coin or notes, ficiently developed before they happen, to enable us to treasury notes were expensive in their creation, and would have the merit of standing still. Has the management of bear an interest, without any countervailing advantage to the bank in the last year this merit? The great usefulthe treasury. Such a measure, too, would have thrown ness of the bank, and the merit claimed for it, is said, by upon the General Government the whole cost of restoring its advocates, to be its power to control or to check the |