FEB. 25, 1832.]

Claim of Mrs. Decatur.

[H. of R.

House at an early period of the next session of Congress viction that it comes not within the letter or spirit of that such further information on this subject as he may be act; nor is it justified by any one act of legislation under furnished with by the agents or others who may be em- it. The fifth section of that act provides that the proployed in this service; with his views of the best means ceeds of all ships, and the goods taken on board of them, of preserving the navy timber growing on the public which shall be adjudged good prize, shall, when of equal lands; or, if he deem it necessary, that he lay before this or superior force to the vessel or vessels making the capHouse a plan or system which he may think best calcu- ture, be the sole property of the captors; and when of inlated to secure to the nation an adequate supply of this ma- ferior force, shall be divided equally between the United terial, either by cultivation or the purchase of lands now States and the officers and men making the capture." containing such supply."

CLAIM OF Mns. DECATUR.

The House went into Committee of the Whole on the bill for the relief of Mrs. Decatur and others.

By the law of nations, vessels captured belong to the nation making the capture. The right as between belligerent nations passes and vests ipso facto by the capture itself, without any other ceremony. This right enures for the sole and exclusive benefit of the Government. Mr. EVERETT, adverting to the painful effect pro- The Government may, however, for wise national purduced in the House by a letter which had been read dur- poses, transfer this interest, either wholly or in part, to ing the debate on this subject yesterday, which purported the individual captors making the capture; but it may, and to be from one of the Misses McKnight, and contained al- does attach to that transfer such conditions and limitations legations to the prejudice of Mrs. Decatur, submitted to as it may think wise and expedient. Until these condithe House a statement from Mrs. D., which contradicted tions are complied with, no interest vests in the officers and explained the charges made in the letter. and men, but remains in the Government. In 1800, Con

The question before the committee being on the amend-gress, to foster and stimulate our little navy to deeds of ment proposed by Mr. PEARCE, to reduce the sum report-enterprise and glory, declared that the proceeds of vesed in the bill in favor of Mrs. Decatur from thirty-one sels, and the goods taken on board of them, which shall be thousand to twenty-one thousand dollars, with a view to give the Misses McKnight ten thousand dollars, Messrs. WATMOUGH and ANDERSON advocated the bill, and Mr. PEARCE his amendment.

Mr. RENCHER said it was with great reluctance he had consented to embark in this debate. To him the task was an unpleasant one. But the confident tone assumed by the friends of the bill, and particularly by his friend from Louisiana [Mr. WHITE] who had just resumed his seat, imposed upon him the duty of a reply, from which he could not shrink. I have listened, said Mr. R., with the deepest sensibility to the strong and glowing appeals which have been made to the feelings of this House. Such appeals captivate and mislead the judgment. None can feel a more profound and grateful respect for the memory of Decatur. His deeds are associated with the earliest recollections of my childhood. But, standing here as the representative of the people, I must apply to this claim the same standard of equal and impartial justice which is administered to the most humble and obscure; and, tried by that standard, it falls to the ground.

adjudged good prize, shall belong, either wholly or in part, to the captors. They grant to them the proceeds only, and that not until after a regular adjudication and condemnation as a prize. Adjudication is, therefore, indispensably necessary. Without it, no interest whatever vests in the officers and men. In this case, the vessel was destroyed; and can any one believe that it was the intention of the framers of this law to pay our officers and men for vessels and goods destroyed by them? They could not have intended to incur such an obligation, and therefore they transfer the proceeds only after adjudication.

But we have been told, with apparent triumph, that the Government has repeatedly paid for vessels destroyed, without adjudication. It is admitted; but in every single instance referred to, the destruction took place under circumstances which created the strongest obligations on the Government to make indemnity to the captors. There the vessels were captured under the expectation of making prize of them; and, after capture, the Government, to avoid the difficulty of sending them into port to have them adjudged, ordered them to be destroyed. The GovernThe destruction of the frigate Philadelphia was a great ment could not, therefore, honorably refuse to make inand glorious achievement. As an American, I am proud demnity. The officers and crew might justly complain of of it; as the friend of Decatur, I rejoice at it. It laid the the violated faith of the Government. We, they might foundation of his future greatness and glory. It immedi- say, have conquered and captured the vessel as a prize. ately promoted him over the heads of his senior officers, Nothing remains to make her so but adjudication, which equally gallant with himself, and gave him the command you now prevent by ordering her to be destroyed. Not of a frigate. His salary was augmented, and public ho- to make indemnity, under such circumstances, would be nors bestowed upon him. Whatever, therefore, may have the most palpable injustice, and the most flagrant violabeen thought by others, Congress and the nation most tion of national faith. This is the principle on which incertainly believed they had done him ample and entire demnity was made for the destruction of the Guerriere, justice. Decatur's own heart must have felt it; for though the Java, and the other vessels referred to in the course he lived nearly twenty years in the full enjoyment of the of this debate.

confidence and patronage of his grateful country, he never But the destruction of the Philadelphia is not analoonce intimated the existence of such a claim. The bill, gous. It is altogether different. Decatur forms a plan however, is before us, and the circumstances connected to destroy the frigate, and volunteers for its execution. with it demand at our hands a dispassionate and careful He did not embark in this enterprise under the hope or consideration. expectation of making a prize of her. He could not exThe claim is rested mainly on two grounds: as a matter pect any thing from the proceeds of a vessel which he of right, and as one of public policy. With the indulgence was determined to destroy. To effect his object, he is of the committee, I will briefly examine both these grounds. directed to board the ship. The boarding is a necessary In the printed documents are found the legal opinions of means of destruction. If sunk or destroyed by means of two gentlemen distinguished in their profession, in which a fire-ship, or in battle, the case would have been the it is supported as a matter of right, arising under the prize same; and yet no one has ever been so wild as to imagine act of 1800. These opinions have been endorsed by se- that we were bound to pay our officers and crew for vesveral gentlemen on this floor. If I could believe this claim sels and goods thus sunk and destroyed. If, therefore, justified by the most liberal and indulgent construction of you are determined to pass this bill, call it by its proper the prize act, it would afford me pleasure to support it; but name--a gratuity, or an honorable donation; but do not the most careful examination has resulted in the firmest con- seek a justification for it by a total perversion, not only of

H. OF R.]

Claim of Mrs. Decatur.

[FEB. 25, 1832.

They

the letter, but also of the spirit and original intention of he has reared to his memory, or extinguish one single the prize act. spark of that gratitude which glows in the bosom of every The distribution of the money proposed by the bill on American. But the gallant heroes who mingled with him your table is liable to the strongest objection. For my. in that bright dawn of naval chivalry are equally the obself, I cannot consent to it. It does injustice to the sailors jects of our gratitude and love. Nor can you select this to increase the distributive share of Mrs. Decatur; and single achievement as the exclusive object of your bounty, this, too, in the very face, and in violation of the very let- without doing injustice and disparagement to the rest. ter of that statute under which this claim is sought to be Mr. R. said he could not notice the many other brilliant established. The prize act distributes to the commander achievements during the Tripolitan war, which covered of a ship two-twentieths part of a prize, and to the sailors, as our little squadron with imperishable glory. Though less a class, seven-twentieths; which, in this case, would give successful, they were not less bold and patriotic than those to Mrs. Decatur ten thousand dollars, and to each of the who caused the destruction of the Philadelphia. sailors eight hundred and thirty-three dollars and one-struck terror into the proud but timid spirit of the Bathird. Surely this disparity is sufficiently great; much shaw, though they could not subdue the avarice of his greater than is made in the relative pay of a captain of a heart. But the last effort made by Commodore Preble to ship and the sailor under his command. But, according redeem our countrymen from captivity exhibits a fearless to the distribution proposed by the bill on your table, the and patriotic devotion to our country, and a love of glory share of Mrs. Decatur is swelled to the sum of thirty-one which may proudly challenge comparison. The destructhousand dollars, while that of the sailor is cut down to tion of the navy and city of Tripoli, by means of a firethe pitiful sum of three hundred and three dollars. Is ship, was an enterprise fraught with the darkest and this just, or is it sound policy? The time will never come deepest peril. And who of all the squadron courted this when we shall not be able to man our ships with gallant enterprise, so full of awe and of peril? Who asked to make officers. But if you deliberately disregard and sacrifice this almost self-immolation for their country? Captain the rights and interests of our generous tars, the time may Somers, and Lieutenants Wadsworth and Israel. The come, the hour of danger may arrive, when you will not little monument west of this capitol, reared by the sacred be able to call into your service men who will bear your hand of friendship, tells the disastrous story of their fate. flag upon the ocean in triumph and glory. Gentlemen They had passed the inner harbor, and were near the have taxed their ingenuity to justify this gross injustice point of their destination, when, at the moment of the and inequality, and their illustration is as novel as it is in- consummation of their hopes, they were boarded by two genious. They contend that the prize act, in giving Tripolitan frigates. All hope of escape was now cut off, seven-twentieths of a prize to the sailors as a class, is based and nothing awaited them but the most ignominious capupon the supposition that the number is equal to the full tivity and torture. Their proud spirits could not brook complement of a frigate's crew, which is two hundred such a fate; and Captain Somers, applying a match with and forty. That in this case there were only forty-two, his own hand, resolved to sink into the same common and that, therefore, they are entitled only to forty-two ruin with his barbarous captors and his gallant companions. parts; leaving the other one hundred and ninety-eight| If, sir, it is politic at this day to distinguish any one act parts to be divided among the other classes successively, of patriotic devotion during that war, by bestowing upon it according to their relative proportions. But this, sir, is an honorary donation, this is that act. Somers, and his mere supposition. It fortunately is not the law. If it were, companions in this daring enterprise, thought it sweet to its injustice would demand a speedy repeal. If the num- die for their country, and their country was sensible of ber of sailors on board be small, they have the same their merit. Congress expressed "the deep regret which amount of duties to perform as if they were more nume- they felt for the loss of these gallant men, whose names If they refuse or neglect it, they are punished. ought to live in the recollection and affection of a grateWhen, therefore, they have endured all the hardship, ful country, and whose conduct ought to be regarded as braved all the danger, and snatched a prize from the ene- an example to future generations." They did not live my by their gallantry, shall they be told that they can re- to receive this testimonial of your kind regard, nor to ceive only a pitiful portion of what the law distributes to share in the future rewards and patronage of their gratethem? I hope we shall never act so unjustly towards ful country. If, therefore, you have bounty to bestow, those who have won respect for your flag upon every sea. go seek the widows and children of these heroic men. I will now, Mr. Chairman, examine the second branch Left parentless, and perhaps pennyless, no donation can of this argument. Many gentlemen support this claim, be more just to those who receive, or more honorable to not as a right, but as a gratuity, or honorable donation, those who give. given for great and patriotic services, and justified, in I will mention but one circumstance more, which contritheir estimation, by sound policy and public expediency. buted, perhaps more than any other, to humble the I will not question the right of Congress to exercise such haughty spirit of the Bashaw, and extort from him the a power. It has often been done. It will doubtless be re-treaty of 1805. It will be recollected that the Bashaw of peated. In the transaction now under review, Congress Tripoli was a usurper. The legitimate heir, Hamet, had complimented Decatur with a sword, and voted to him been driven into exile among the Mamelukes of Egypt. and his crew two months' extra pay. But this power, to Early in the year 1805, General Eaton, with a few followbe constitutional and proper, must be exerted for the sole ers, was sent by this Government to seek out the exiled and single purpose of promoting the public service, and Hamet, and to co-operate with him in an attack upon Trinot as a pretext to give to a single individual, remotely poli by land. This adventurous mission was executed with connected with the achievement, a large amount of the success. The objects of the alliance were reciprocal-to public money. But the policy of such donations, after rescue the American captives, and to restore Hamet to his the lapse of so many years, may well be questioned. It cre- throne. The dominions of the Bashaw were invaded; his ates an arbitrary and invidious distinction among men forces every where defeated. The city of Derne had surequally entitled to our gratitude. Gentlemen in this debate rendered; and it was not until the Bashaw felt his throne have been warmed into poetry and romance. The pencil trembling beneath him, that he consented to the treaty. of the painter has cast every other picture into the shade, The third article of that treaty shows the true source of his and monopolized for Decatur alone the glory and success alarm. It stipulates that General Eaton shall withdraw of the Tripolitan war. Far be it from me to detract from from Derne, and shall endeavor to induce Hamet to withthe splendor of his achievements. I would not remove a draw, without making any provision whatever for him. In single pebble from that proud monument of glory which one month more, General Eaton would have planted his

rous.

FEB. 27, 1832.]

Bank of the United States.

[H. OF R.

standard in the city of Tripoli, and have restored our faith- Mr. DAVIS, of Mass., rose to address the House, but ful ally to his former throne. Nothing could have justified gave way at the suggestion of several members, and moved such a treaty on our part, under such circumstances, but that the committee should rise and report progress; which the benevolent desire of saving from torture and from motion was carried: after which, death the American captives, in whose blood the Bashaw, The House adjourned. if driven to despair, would have glutted his merciless revenge.

MONDAY, FEBRUARY 27.

BANK OF THE UNITED STATES.
The following resolution, moved on the 23d instant by
Mr. CLAYTON, of Georgia, was taken up:

Resolved, That a select committee be appointed to examine into the affairs of the Bank of the United States, with power to send for persons and papers, and to report the result of their inquiries to this House.

These, sir, were the more immediate and more power ful causes which humbled the haughty spirit of the Bashaw, and extorted from him that treaty by which our commerce was freed from the infamy of a tribute, and our citizens from captivity and chains. The destruction of the Philadelphia was more remote, and less calculated to operate upon the fears of a barbarian. In that enterprise fortune crowned Decatur with success; but he, more than any other naval officer, entered into the full enjoyment of the rich fruits of that success. I cannot consent to create any further distinction. It would be as impolitic as it would be unjust. I cannot consent to give to his representative a A discussion thereupon arose on the question whether large amount of the public money, and leave the represen- it was in order, after à resolution had been postponed to tatives of other brave men, who perished in sustaining the a day certain, to receive a motion such as had been made honor of their country, to penury and want. Believing by Mr. WATMOUGH.

Mr. WATMOUGH moved the question of consideration. On that question Mr. POLK demanded the yeas and nays.

the claim, therefore, not justified by law, or by sound In this discussion, or rather conversation, Messrs. POLK, policy, I shall feel it my duty, however painful, to vote HUNTINGTON, CAMBRELENG, CLAYTON, EVEagainst it. RETT, WILLIAMS, FOSTER, and MCDUFFIE partici

The question was then taken on Mr. PEARCE's amend-pated. ment, and was negatived--yeas 76, nays 80.

It having been ascertained from the journal that the resolution after having been offered had received the action of the House by a vote postponing its consideration until this day, the Chair decided that it was too late to entertain the question of consideration.

Mr. WILLIAMS thereupon moved to lay the resolution on the table; but, after some remarks from Mr. CLAYTON, he consented, at the request of Mr. McDUffie, to withdraw his motion.

Mr. BLAIR, of South Carolina, said, although he would not yield to any person in estimating the valuable services of Commodore Decatur, yet he was opposed to the bill in every shape: he was opposed to it, because, as it seemed to be conceded, the money was to be regarded as a simple donation on the part of the country. He did not think, according to the principles of the constitution, the House had the right to make such a donation. Much stress had been laid on the circumstance that this measure had come Mr. CLAYTON said he was not disposed to discuss this recommended to the House by the President, although he resolution, but in a spirit of the utmost liberality. [He (Mr. B.) was satisfied that, in recommending it, the Presi- commenced with quoting a clause in the charter requir dent had only done what he felt to be his duty; yet he re-ing the bank to submit its affairs to examination.] The gretted that he had meddled with it; he wished he had left committee of the House appointed to examine the subject, that job undone. In opposing this measure, however, he had declared that the power to investigate the state of the for one had no apprehension of being censured for doing institution was so wholesome in its nature and tendency, so by the President, for as he himself got credit for do- that whenever any suspicion was excited against the bank, ing, at all hazards, what he believed to be right, he would it ought to be employed. [Here he quoted the report of doubtless allow to others the privilege of acting consist- the Committee of Ways and Means, and also that of the ently with what they deemed a conscientious discharge of minority of that committee, to show that they coincided their duty. If, however, he should, in so acting, incur in recommending an examination into the affairs of the the censure of the President, then he would say, in God's bank.] Mr. C. said, that when he introduced the resolu name, be it so. He felt it his duty to move that the en- tion, he had expected that the friends of the bank would acting clause be stricken out of the bill. have seized on the opportunity thus held out to them to When the question on this motion was about to be put, put the institution on higher ground than any it had yet Mr. McDUFFIE suggested the propriety of withdraw-occupied; for such must be the effect of the investigation, ing this motion, as it could be put when the subject came if the condition of the institution were such as they reprebefore the House; and if it was now pressed, it would only sented it to be. It must be manifest to every one, that if protract the debate, to the manifest inconvenience of the the bank should come out of the ordeal unharmed, and prove itself to be a benefit to the nation, none would be disposed to put it down.

House.

Mr. BLAIR consented to withdraw his amendment, but a similar one was offered by Mr. PENDLETON; after which,

Mr. POLK, in reply to what had fallen from the member from South Carolina wished to explain that he voted for the bill, not on the ground of its being a simple donation, for if he thought it was, he agreed with him that it was not in the power of the House, according to the constitution, to make it; he voted for it, because it came fully within the equitable principles of the prize act, and which, as had been detailed to the House, had been sanctioned during the late war by Congress.

Mr. McDUFFIE believed that this was as just and sacred a claim as any which had been ever pending between individuals and the United States; and when the proper time would come, he was prepared to meet all the objections which had been urged against the bill. VOL. VIII.-118

Mr. C. said he would frankly state what he believed could be brought against the bank. He thought it was enough for him, as a representative of the people, to state to his corepresentatives the charges which he believed might be substantiated against the institution; when they had heard them, they might vote the investigation or not, as they might deem proper. The following facts would, he believed, be established, and, under that impression, he preferred them as a sort of indictment against the bank:

1. The issue of 7,000,000, and more, of branch bank orders as a currency. The president of the bank admits seven millions issued.

2. Usury on broken bank notes in Kentucky and Ohio; they amounted to $900,000 in Ohio, and nearly as much in Kentucky. See 2 Peters's Reports, p. 527, as to the na

ture of the cases.

Bank of the United States.

3. Domestic bills of exchange, disguised loans to take to deal in bills of exchange, and to transact other business more than at the rate of six per cent. Sixteen millions of properly belonging to branch banks, contrary to the these bills for December last. See monthly statements.

4. Non-user of the charter. In this, that from 1819 to. 15. Giving authority to State banks to discount their 1826, a period of seven years, the South and West branch- bills without authority from the Secretary of the Treasury. es issued no currency of any kind. See the doctrine on Having gone through with these items, briefly comnon-user of charter and duty of corporations to act up to menting on each as he proceeded, Mr. C. observed that the end of their institution, and forfeiture for neglect. he knew a number of petitions had been presented to the 5. Building houses to rent. See limitation in their char-House in favor of rechartering the bank. Such petitions ter on the right to hold real property.

were gotten up with great facility. Some of these were even obtained in New York. Now he would appeal to the whole South, whether the petition of a few individual merchants was to be regarded in preference to the declared opinion of the Legislature of the State of New York. He knew it was become very unfashionable to listen to the voice of States; he knew they were scarcely as much respected as so many corporations, and that their will weighed nothing. But, as long as he was able to 1. Not cashing its own notes, or receiving in deposite utter his voice in favor of the rights of the States, he at each branch, and at the parent bank, the notes of each would continue to aver that they were worthy to be reother. By reason of this practice, notes of the mother bank garded. The House was receiving the petitions gotten are at a discount at many, if not all, of her branches, and up by the bank as an expression of the wishes of the comcompletely negatives the assertion of "sound and uniform munity, while the voice of New York and of other States was disregarded.

The bank was an institution whose arms extended into every part of the community; and one of its officers had not long since boldly declared that the moment the bank 3. Making a difference between members of Congress should succeed in obtaining the renewal of its charter, it and the citizens generally, in both granting loans and sell- would grind the State institutions to dust. This he pledging bills of exchange. It is believed it can be made to ap-ed himself to prove. An institution like this, which, by a pear that members can obtain bills of exchange without, citizens with a premium; the first give nominal endorsers, the others must give two sufficient resident endorsers. 4. The undue accumulation of proxies in the hands of few to control the election for directors.

FEB. 27, 1832.]

Bank of the United States.

[H. OF R.

he should feel under the highest obligation to go into the notes in Kentucky and Ohio." And as to this count, as a investigation proposed, cost what it might, and be the lawyer, I should almost think it subject to a demurrer. consequences what they might. But it was extremely "Usury on broken bank notes!" Sir, I do not quite unobvious, that to sustain a resolution of the character of derstand this charge. The gentleman read a plea put in that which had been offered by the gentleman from Geor- by the defendants and their counsel, to which there was gia, containing matter of so grave a kind, and having such a demurrer; and he stated the decision of the court, that an important bearing on all the interests of the Bank of the facts set forth in the plea went to make out a case of the United States, was a thing not lightly to be done. usury. Sir, the lawyers must have been unskilful indeed The gentleman had drawn up an indictment, as he called it, against the bank, containing fifteen counts; and out of all of them, there were but one or two which professed to disclose any other than matter of general notoriety. As to the first charge-"the issue of seven millions and more of branch bank orders as a currency."

if they did not. A demurrer to a plea is made merely to settle a principle. A demurrer decides no facts. But the gentleman omitted to read the explanatory note at the bottom of the page. I will supply the omission. [Here Mr. McD. read a note stating that owing to the demurrer the facts of the case never came to proof.] Sir, the whole Now, sir, said Mr. McD., I will take this charge as a of these alleged facts going to make out a case of usury, fair specimen of the whole: and I will venture to say that are denied, and can be disproved. This is a plain case, a all the others will end in the same manner as this must very plain case. Both the Government of the United end, on a fair and candid investigation. What is the States and private individuals deposited, in the branch bank charge' That the bank has forfeited its charter. And in question, State bank paper, good when deposited. how has it forfeited it? By doing that which the charter The branch bank held this paper, and received interest itself, in terms, authorizes it to do: by issuing bills of ex- upon it as so much cash, from the State bank. The State change. What is the very object for which the bank was bank did finally pay up the balance of notes held by the instituted? What is its most important and most benefi- United States' branch. Under this state of things, an incial operation? It is dealing in exchanges: the very dividual comes to the branch seeking a loan. The office operation here denounced. It seems, according to the tells him, we are prohibited, by the orders of the mother gentleman, that these drafts, or bills of exchange, bank, and especially by a temporary regulation at this are grossly unconstitutional. Why? Because they are time, from complying with your request. The applicant drawn by one of the branches of the bank, and signed by says he is willing to take bills of the State bank which had the officers, the president and cashier of such branch? been deposited there, (and which were equal to so much Oh no. That is a common, regular operation of every day. cash to the institution,) and to this proposition the bank Why then? Because they are drawn upon the mother assented. It was a perfectly fair transaction; and the inbank? No: that, too, is an ordinary, every day operation. dividual no doubt thought at the time that a great favor Such drafts on the mother bank are drawn by the had been extended to him, but found it convenient to branches continually. Why then? Why, sir, I will tell plead usury when the day of payment came round. This you: it is because the bank has been so atrocious, so dar-transaction happened ten years ago. But this, it seems, ing, as to paint the paper on which these drafts are is the day when all the sins of the bank, for these sixteen drawn. That, sir, is the whole substance of the charge. years past, are to be brought up in judgment. If the The gentleman can make nothing else of the matter. The gentleman had gone beyond the year 1819, he might have drafts are colored blue, stamped in a particular way, brought forward much higher charges than this; and if and they circulate as bank bills. This is the idlest, the the bank is to be held responsible for them, too, there is very idlest, of all charges that ever was gravely brought no telling where it will end. But, in the year 1819, all forward. It will not bear discussion. Although not against those now stale charges were brought fresh for examination the charter, this operation is very inconvenient to the before this House, and the bank was exonerated from bank. It is perfectly well known that the officers of the serious censure, on the ground that they were matters mother bank did not possess the physical power to sign which had grown out of the necessity of the times, and the vast number of small bills required for the circulation that the bank had done the best it could. of the country; and these checks were substituted as a Sir, the fact is, the very difficulties of the bank in 1819 matter of sheer necessity. What injury has happened to all grew out of an attempt to do what the gentleman from the public in consequence of the adoption of this expe-Georgia supposes the bank is bound now to do; from the dient? What is the charge against these drafts, except idle and visionary attempt to pay the bills of all its that they are painted and stamped? The bank is liable branches, not only at the branches where drawn, but at for every such check that may be issued. That point has all its offices. It was an absurd attempt to do what was been tried and settled. No professional man, familiar and is impracticable. with commercial law, will dispute the position that the bank, having thus authorized the branches thus to draw upon it, is responsible for the drafts. The bank is authorized by its charter to deal in exchanges. The branches draw upon the mother bank, by an authority given them in advance; and every lawyer knows that such an indefinite authority granted to an agent beforehand renders the principal liable to any extent.

The third article of this indictment charges the bank with "the dealing in domestic bills of exchange, and disguised loans."

any per cent. it pleases? I should, I confess, like to understand the nature of these charges.

Why, sir, this is one of the ordinary transactions of the bank, and one of the most unexceptionable of those transactions. Sir, am I to understand the gentleman from Georgia as charging the bank with a violation of its charter, because it buys bills of exchange, and sells bills of What, I again ask, is the injury sustained by the pub-exchange, or checks, at half per cent., one per cent., or lic? It has been said by the gentleman from New York the other day, [Mr. CAMBRELENG,] that these drafts are payable nowhere. Ay! payable nowhere! If that is the Mr. CLAYTON explained. A note was asked to be fact, the objection is conclusive, But, sir, they are, in renewed; the bank refused the request, but was willing point of fact, payable every where. That is the fact to give a discount on a draft on a distant factor, thereby and the bank has paid them every where, indiscriminately. realizing a profit of two per cent. on the bill. This, he There may have been a few exceptions, owing to a very concluded, was a disguised loan. If the applicant had the great accumulation of them at one spot; but the bank money to pay for this draft, he had the money to pay the usually pays them at all its branches. So much for the note. This, though not a regular compact to get ten per grave charge of painting drafts. cent., was certainly a regular dealing in loans, and was a

The next specification is for "usury on broken bank substitute for a demand of higher interest.