H. OF R.] The Public Deposites. [MARCH 18, 1834. section of the bank charter. The question still recurs, sage and cabinet paper, and afterwards Secretary of the If the right of determining what currency shall be receiv- Treasury, and chairman of the Committee of Ways and ed belongs to "the Government," how did Congress get Means, he could not have produced four papers more hold of it? And, on the other hand, if the right of desig-"germane" to each other in sense, style, and spirit. nating the depository of the public money originally be- Let us compare these points of resemblance, which, as longed to Congress, how came it in possession of "the mere accidental coincidences, are perfectly marvellous. Government?" By what means did Congress-by what It is not the Fourth Auditor only, who always has the means could Congress alienate a portion of their legisla- happiness to think like the President. For example: tive power? Again, I ask, what is "the Government?" The cabinet paper says: I know of no attempt to define it, but Major Downing's, who says, "it is I and the Gineral;" but he is certainly mistaken. There are worse men in it than either. "The President considers his re-election as a decision of the people against the bank." The Secretary, in his letter, says: If we cannot ascertain what constitutes "the Govern"And I have always regarded the result of the last ment," let us try whether we can learn what sort of election of the President of the United States as the decla"Government" it is. The patriot whose words I quote, ration of a majority of the people that the charter ought fell, in popular tumult, by the hands of his enemies. Yet, not to be renewed." "The question of the renewal of in spite of every effort to stain his memory, impartial his- the charter was introduced into the election by the cortory records they could fasten upon him no crime but poration itself." "It was accordingly argued on both hostility to the house of Orange. "By the word monar-sides before the tribunal of the people, and their verdict chy and monarchal rule, I mean such a state wherein only pronounced against the bank by the election of the canone person, though without right, yet hath the power to didate who was known to have been always inflexibly cause obedience to be given to all his orders, resolutions, opposed to it." and laws, or to suspend or hinder all orders, resolutions, and laws of the true and lawful highest assembly, that they be not executed, and this according to his own will and pleasure.' The committee say: "Of all the substitutes for the present bank which have been suggested, none seems to have united any considerable portion of the public in its favor." The committee say: "The corporation itself has made the renewal of its charter the leading question in the late contest for the Presidency. It had procured from Congress the pasThe Government, sir, what is the Government? I have sage of a bill to renew the charter, and elicited a veto looked through the constitution, I find no such term there. from the President." "It was signally defeated, and Mention is made of "the seat of Government" and of "a the President triumphantly re-elected. This result could republican form of Government," but of "the Govern- not be otherwise considered than as a verdict of the peoment"-republican in form-to which "it appertains ex-ple in favor ofthe veto, and against the bank." clusively to pronounce upon the act" of laying hands up- The President, in the paper read to his cabinet, says: on the public money, I find no mention. What do gentlemen mean by "the Government?" The term is of recent origin. We have long been accustomed to hear of the Legislature, Congress, the Senate, the House of Representatives, the Executive, the Judiciary, the heads of Departments, the cabinet, and the administration. Government" can be none of these, or a new mode of designating it would be unnecessary. It has no precise meaning in itself; for, if a courtier of the age of Louis the XI. had been asked what was "the Government," and he had dared to answer, he would probably have replied, "The King, Oliver le Diable, Tristan l'Ermite, and Petit "The power reserved to Congress to discontinue the André." Nor is this the only instance of ambiguity, ap-receipt of the notes of the bank in payments to the parently studied, which the report of the committee presents. Nimia præcautio dolus. "The They speak of "the reasons which superinduced" the act," not the reasons which induced it. Now, sir, induce is to cause; superinduce is to bring in, or upon, as an addition to something. Are we to understand that the reasons which induced this act were the reasons which Mr. Whitney first, and afterwards the President, gave to Mr. Duane, and which were afterwards read to the cabinet? Is it intended that the reasons superinduced upon it, are the reasons given by the present Secretary of the Treasury to amuse Congress, who have no authority to decide on them, that being a province of "the Government," while the true reasons--the reasons which induced it--are like the act itself, according to the President's declaration, "his own," done upon his "responsibility," and only to be discussed by the people who have re-elected him? A trim reckoning! "Of all the schemes suggested, none seem to have met with any considerable portion of favor from the people." The President says: "The power of the Secretary of the Treasury over the deposites is unqualified." The committee say: United States,' is absolute and unqualified. In like manner, the power of the Secretary of the Treasury, for reasons which he is required to report to Congress, to employ other depositories of the public money, is equally absolute and unqualified." The President says: "The provision that he shall report his reasons to Congress is no limitation. Had it not been inserted, he would have been responsible to Congress had he made a removal for any other than good reasons, and his responsibility now ceascs, upon the rendition of sufficient ones to Congress." The committee say: "He had the same legal power, after the passage of this act, to order and direct the public deposites to be made in other banks, as he had before. An additional duty was imposed upon him; but how can this requirement impair his power? Had the clause requiring the In speaking, as I shall have occasion to do, of the veto reasons to be reported been omitted, could it have been message, the report of the Secretary of the Treasury, doubted that the power of the Secretary to cause the and that of the Committee of Ways and Means, I do not deposites to be made in other banks would have been mean to say, or insinuate, that they are not each, several- absolute and unqualified?" "The change effected in ly, from the pen of the proper person by whom they re-his position is, that he is now bound by law to give his spectively purport to have been written. But I will say reasons, without a special call. But the giving of his this: if one and the same person had been the Presi- reasons now, after the act is done, can no more affect dent's private secretary, when he penned the veto mes- his power to do it, than giving his reasons then, under a special call of Congress. And his duty to act only for good reasons, and his liability to be punished for mea * De Witt's State of Holland. MARCH 18, 1834.] The Public Deposites. [H. OF R. sures originating in corrupt or wicked motives, were of it, without the consent of the bank; land, consequently, just as strong then as now. And again, p. 8: "That the public money must remain in that institution to the they ought to be good and honest reasons, there can be last hour of its existence, unles the Secretary of the Treano doubt." "If they be not honest, he may be impeach-sury shall remove it at an earlier day." ed by Congress, or dismissed from office by the Presi- The Secretary concurs: dent. If they be not good, he may be overruled by a "And as this agreement has been entered into by subsequent act of legislation, providing for their restora- Congress, in behalf of the United States, the place of tion, or designating some other place of deposite than deposite could not be changed by a legislative act, without that which he may have selected. But if they be both disregarding a pledge which the Legislature has given; honest and good, the transaction should be at an end--and the money of the United States must, therefore, conwhen they are reported to Congress." tinue to be deposited in the bank until the last hour of its "As soon as they are reported to Congress!" What, existence, unless it shall be otherwise ordered by the before Congress have decided on them? And if not be-authority mentioned in the charter." fore Congress have voted them honest and good, why And the committee again harmonize in opinion: have not the committee proposed to test them, by a vote "The removal of the deposites, by the Secretary of the of Congress, that they are good and honest? The Presi- Treasury, from the Bank of the United States, so far dent says, "the only object of the provision is to make from being a usurpation of a power belonging to Conhis reasons accessible to Congress, and enable that body gress, actually restores to that body a power of which the more readily to judge of their soundness and purity, they had, by the terms of the charter, divested themand thereupon to make such further provision by law as selves. So far as regards Congress, the contract is abscthe legislative power may think proper in relation to the lute, that the deposites shall be made in the Bank of the deposite of the public money." United States, and no shadow of authority is reserved to The committee respond: "To see that the Secretary them otherwise to "order and direct." Congress diof the Treasury acts from pure motives, and judge whe-vested itself of all power of control over the deposites, ther further legislation be not necessary on the subject, unless the Secretary should first issue his order for the Congress require of him to report his reasons to them." removal. The exclusive power to issue such order was Here is the key to the whole course of policy adopted reserved to the Secretary of the Treasury, and but for by the President in despite of the remonstrances of his his action the deposites must have remained beyond constitutional advisers, and the previous votes of Con- the reach of Congress until the termination of the bank gress. To throw upon Congress the necessity of fur-charter." ther legislation, and, if it were such as he disliked, to I will not pursue these comparisons further, though intrench himself behind the veto. Such was the system they are yet far from being exhausted. Any one who upon which the President has been prevailed upon to chooses to continue them will find amusement, and, mayhap, instruction, in remarking the extraordinary coinci act. The President, in his cabinet paper, says: "It is use-dence of sentiment and language, throughout the three less now to inquire why this high power was surrendered documents, respecting various other topics. For examby those who are peculiarly and appropriately the guar-ple: "Powerful moneyed monopolies, dangerous to the dians of the public money. Perhaps it was an oversight; liberty of the people and purity of our institutions"but, as the President presumes that the charter of the bank is to be considered as a contract on the part of the Government, it is not now in the power of Congress to disregard its stipulations; and, by the terms of that contract, the public money is to be deposited in the bank, during the continuance of its charter, unless the Secretary of the Treasury shall otherwise direct." The Secretary repeats: "The faith of the United States is, however, pledged, according to the terms of the section above quoted, that the public money shall be deposited in this bank, "unless the Secretary of the Treasury shall otherwise order and direct." And as this agreement has been entered into by Congress in behalf of the United States, the place of deposite could not be changed by a legislative act, without disregarding a pledge which the Legislature has given; and the money of the United States must, therefore, continue to be deposited in the bank until the last hour of its existence, unless it shall be otherwise ordered by the authority mentioned in the charter." "Great moneyed corporations entering the political arena"-the topics of the French bill-the public distress which the bank (a stale story) is accused of producingand various other choice specimens of counterpoint, in which accidental discords seem introduced only to heighten harmony. They would furnish excellent materials for a chapter on the dangers of circumstantial evidence. I do not mean to say, or to insinuate, that these documents proceeded from a common source; but I venture to affirm, if it were a question of simulated papers before a court of prize, the internal evidence they afford would be held, despite the oaths of twenty witnesses, to establish conclusively community of origin. The last position quoted from the harmonious triad of authorities, is, in my judgment, so monstrous and alarming, that I turn from my contrasts to subject it for a moment to the test of argument, even the argument of its supporters. That proposition asserts 1. That Congress divested itself of all control over the deposites, unless the Secretary should first issue his order of removal. And the committee are still found in unison: "Whether the Congress of 1816 acted wisely in thus 2. So far as Congress is concerned, the con tract is ab divesting themselves of all control over the place of pub-solute, and no shadow of authority is reserved to them to lic deposites of the public moneys for the long period of order or direct." twenty years, is a question which it is unnecessary to de- 3. The exclusive right to issue such order was reserved termine. It is certain that they did so, and during the to the Secretary, and, but for his action, the deposites continuance of the charter, therefore, they must have must have remained beyond the reach of Congress, until continued to be made in the Bank of the United States, the termination of the bank charter. unless the Secretary of the Treasury had otherwise ordered and directed." Again: the President, in his cabinet paper, declares: "Unless, therefore, the Secretary of the Treasury first act, Congress have no power over the subject, for they cannot add a new clause to the charter, or strike one out 4. All this was effected by a charter which is unconstitutional. And, 5. The removal of the deposites, by the Secretary, restored to Congress a power of which they had divested themselves by an unconstitutional charter. Let us see how this is. If Congress divested them H. OF R.] The Public Deposites. [MARCH 18, 1834. selves of the power, it must have been previously vested offspring of ignorance, from the wisdom of the act we in them. If it was originally vested in Congress, and by may generally infer the goodness of the motive. The the act of the Secretary, re-vested, it must be a Legislative purity of the President's and Secretary's intentions have power. What, then, becomes of the learned argument been much insisted on. That species of defence moves of the President, and the Secretary, and the committee, me not. Carried out, it justifies every thing. In one to prove that it is an Executive power? If it is a Legisla-sense, all crime and vice is error. "Nemo malus qui tive power, how could Congress alienate it to the Secre- non stultus," is an old proverb; and we may well say of tary, or the bank? The committee themselves say they any one, "He is too great a fool to be honest." Nevercould not, in respect to the bank. theless, we punish that species of folly, and the stocks "To have absolutely bartered away to a corporation and the whipping-post are part of the discipline which the high powers of both the Legislative and Executive social education has provided for obstinate fools of the departments, and left the Government of the people inferior order. Sir, I mean no disrespect of the Presiabsolutely dependent on a corporation of its own crea-dent or Secretary. I am instituting no comparison-intion, for the currency in which public dues should be tending no reproach. I am following out a principle; paid, and the places in which the public money should and if that principle lands me in absurdity, I renounce it. be kept, would have been an assumption of power on Purity of intention cannot justify wilful ignorance, gross the part of those who created the bank charter which negligence, or obstinate error; and it is in this sense that the boldest advocates of a controlling power over the the Portuguese rightly say, "Hell is paved with good popular will never dared to maintain." And again: "No intentions." Congress has yet been found so improvident as to transfer What motive could the Secretary have? He was in an from the Government the power to determine what cur- office more suited to his habits of life, his early studies, rency it will or will not receive in payment of the public and sufficiently elevated to have satisfied his ambition, dues, and to select at will the depositories of the public funds." And, finally, a portion of the Legislative power which an unconstitutional charter had divested, was restored to the Legislature by the act of an Executive officer. sons. if ambition were ever satisfied. What more could he wish? I know not, sir; and, as I have said, I meddle with no man's motives. But, as a warning to the Secretary, I tell him there are those, of his own friends too, who hint he would become the ermine. Let him beware how he assumes it. From this moment, it will not be for him without a stain. But do not the committee perceive that, if it would be "improvident," and an assumption of power, to grant the authority of the Executive to the bank, it is equally an assumption of power to grant the authority of Congress to the Secretary. Now, they all, (President, Secretary, and committee,) agree that this was originally a Legislative "To see that the Secretary acts from pure motives, power. Is it less a usurpation to grant the power of Con- and judge whether further legislation be not necessary on gress to the Secretary, than the power of the Secretary the subject," are, according to the report, the causes to the bank? But all this has been done by an unconsti- why "Congress require of him to report his reasons to tutional charter! them." Unless corruption requires impeachment, then, or a law is to be passed, Congress, it seems, have nothing to do with his reasons, but to-hear them. Who does not see, in this interpretation, the effect-the following upThe committee contend, and, in this, only repeat, al- of that advice which prevailed upon the President, in an most in terms, the argument of the cabinet paper-that evil hour, to withdraw the deposites before the meeting there is no other requisite to the reasons of the Secretary of Congress, intrench himself behind the veto, and rely of the Treasury, but that they be honest and good rea- upon the people to support him. Let us hear the evi"That they ought to be good and honest reasons, ,"dence of Mr. Duane on this topic. His credit has been say the committee, "there can be no doubt. If they be attacked, indeed, but not destroyed. For my own part, not honest, he may be impeached by Congress, or dis- I believe him. I have seen nothing to shake my confimissed from office by the President. If they be not good, dence in his integrity or veracity. He is incapable of he may be overruled by a subsequent act of legislation, falsehood, I am convinced, and has nobly redeemed all providing for their restoration, or designating some other minor errors: place of deposite than that which he may have selected. [Mr. WILDE read several passages from Mr. Duane's But, if they be both honest and good, the transaction letters, relating to Mr. Whitney's interview with him; his should be at an end when they are reported to Congress." account of the President's intention to order the removal Now, if the act is the President's, as he himself says it of the deposites, for reasons to be assigned in a paper is, I do not perceive how it is affected by the reasons of which Mr. Kendall was to prepare; the President's conthe Secretary. It was either his duty to obey the Presi- firmation of Mr. Whitney's information, though he denied dent, or not to obey him. If he was bound to obey, the that Mr. Whitney had received his confidence; the intromotives of his obedience, whether good and honest, or duction of Mr. Kendall to Mr. Duane, by Mr. Whitney; otherwise, are not for Congress. If he was bound not to the charge of corruption against the last Congress by the obey him, the honesty of his reasons may be a question President; and the advantage suggested by others, that for his judges on an impeachment; but their goodness is the removal of the deposites, before Congress assembled, settled by the question of obedience. Were the honesty would be a flag up for the new members, &c. For these of his reasons to be now investigated, it might form a extracts see end of speech.] curious inquiry in casuistry, how far reasons occurring afterwards, are "honest reasons," in support of a "foregone conclusion." Mr. WILDE continued: The flag is up, and the "new members" are summoned to rally to their chieftain's standard. Virginia, PennDo not let me be mistaken; I am not impugning the sylvania, New York, are called to the colors. And by motives of the President and his Secretary. I have suf- what cry? Is it not personal merely, as, of old, in France, ficient subjects of animadversion in their acts and rea-"a moi Auvergne!" sons. I cannot look into the hearts of men. God forbid Recurring again to our report, said Mr. W., the proI should. It is enough for me to look into my own; and position is to employ the State banks to collect and disfinding there that the heart is deceitful above all burse the revenue, and that no legislation is necessary to things;" that our best acts are sometimes attributed to effectuate that purpose. Are there not some inquiries the worst motives, and our worst acts to good ones, 1 to be made? Is there not some information to be colhave become careful of pronouncing on the motives of lected? Have the committee told us what is the condition satisfied only of one thing, that as all wrong is the of these four hundred and fifty State banks, with whom men; 3057 3058 MARCH 18, 1834.] The Public Deposites. [H. of R. the currency of the country is to be left in charge? What say the committee, the Secretary of the Treasury does are their debts-their means? pacity of transferring the public money, at all times, to for him, any control over the currency. Do they possess the ca- not claim for himself, and the committee do not claim all places where it may be wanted? insure us a uniform currency? Can they, will they, the legislation of the States is to be relied on for banThey think power to continue specie payments? Can they preserve the means by which the States are to be persuaded to Have they it in their ishing the five and ten dollar notes. Now, I do not ask and equalize domestic exchange? What information has restrict their own bank circulation, for the present; but the committee-what information has the House on these, ask, supposing it possible and effective, what would subjects? become of those State banks which, the committee say, We have had three investigations of the affairs of the "are now firmly interwoven with the institutions of the United States Bank, in rapid succession, and, after mak-country?" How many of them would remain to supply ing them all, Congress refused to change the place of the currency necessary for commercial transactions? deposite. ident disclaims for himself, and the committee disclaim But the committee disclaim for the Secretary, the Presfor Congress, all interference with the currency of the country, as distinguished from the coin. The President, without making an inquiry into the condition of the State banks at all, except to know which banks would take them, and on what terms, removed the public money; and Congress are now asked, without inquiry into the condition and capacity of these new fiscal the desire of the President that the control of the banks The President, in his cabinet paper, declares: "It is agents, to ratify the act. What have we? The returns and the currency shall, as far as possible, be entirely seof the selected banks. What information do they furnish parated from the political power of the country." Again, us on the important topic of the capacity of the State speaking of the banks-"To this end, it would be expebanks to continue specie payments, for example? The dient to exert no more power over them, and interfere no selected banks are only part of a system. Does any one more in their affairs, than might be absolutely necessary imagine that they can continue specie payments, if all the to the security of the public deposites and the faithful rest stop? The committee pronounce upon them in the performance of their duties as agents of the Treasury." aggregate: "The committee are satisfied that the State And, finally-"To give the President the control over banks are fully competent to perform all the services the currency, and the power over individuals, now poswhich the General Government ought to require, in the sessed by the Bank of the United States, even with collection and disbursement of the revenue, and to afford the material difference that he is responsible to the peoalso all the facilities to the internal commerce and ex-ple, would be as objectionable and dangerous as to leave it changes of the country, which have been derived from where it is." the Bank of the United States." But, on the other hand, the President, in the paper The committee "are satisfied," are they? Why have read to his cabinet, says: "It should also be enjoined they not imparted to us the facts and arguments which upon any banks which may be employed, that it will satisfied them? Is it a point upon which the country is be expected of them to facilitate domestic exchanges satisfied? Let the condition of the trade and currency of for the benefit of internal commerce." the country, the daily bankruptcies, and weekly memo- the committee of delegates from Philadelphia, "that he rials, answer. And he told The State banks, say the committee, are now firmly and more solvent currency, than that of the national would furnish the country with as good, nay, a better interwoven with the institutions of the country. Firmly interwoven with the institutions of the country, are they? Let us ask the President. The priests are like the nurses of Jupiter: they make a We will not consult the oracle. great clamor to drown the voice of their god. Let us hear the thunderer himself. bank." interfere with it? Then, as to the Secretary. The Secretary, in his letIn his interview with the Philadelphia committee, the "How long will it require, for the ordinary operations of ter, while censuring the Bank of the United States, asks, President told them "that the provision by which Con- commerce, and the reduction of discounts by the bank, gress was authorized to regulate the currency had refer- to withdraw the amount of circulation before mentionence only to domestic and foreign coin, and not to papered without giving a shock to the currency?" Speakof any description." order to restore the currency to the condition intended he supposes will become depreciated in March, 1836, he He told them, further, "that, in ing of the notes of the Bank of the United States, which by the constitution, and place the moneyed concerns says: "And if, in the mean time, no other currency is of the country where the sages of the Revolution found substituted in its place by common consent, it is easy and left them, he proposed to put out of circulation all to foresee the extent of the embarrassment which would notes of five dollars and under, by placing the public be caused by the sudden derangement of the circulamoney in such State banks as would issue no notes below ting medium." Justifying himself for the removal of the ten dollars, and by forbidding the receipt, in payment of deposites, on the score of time, he says: "And if a safe the revenue, of the notes of all banks which should and sound currency were immediately provided, on the issue notes under ten dollars; that the same process termination of the charter, to take the place of these should next be pursued in reference to all notes under notes, it would still require time to bring it into genetwenty dollars; and thus a metallic currency be insured ral use, and, in the interim, the people would be subfor all the common purposes of life, while the use of jected to all the inconveniences and losses which nebank notes would be confined to those engaged in com- cessarily arise from an unsound state of the currency.' "The State banks can, I have no doubt, furnish a general In expressing his preference for State banks, he declares: circulating medium, quite as uniform in value as that which has been afforded by the Bank of the United States; merce." If Congress have power, according to the President, to regulate the coin only, and not the paper currency, it follows that this plan of restoring the currency is not to be executed by the legislation of Congress. Is the Presi- probably more so. dent to execute it himself? He has said, in his paper read to the cabinet, that he desired all control over the does not claim for himself, nor do the committee claim Now, what I wish to ask the committee is this: If "he currency to be separated from the political power. he proposes to effect the destruction of the five and ten fluence, by his power over the deposites, any political But for him, the right to regulate the currency, nor to indollar notes by a Treasury regulation, I suppose. No, movements affecting either our internal concerns or fo VOL. X--192 reign relations," to what purpose has he written so much, and made so many arrangements, relating entirely to the currency? The agent of the Treasury also considered his duties to extend to inquiries about the currency. I refer to his report to the Secretary, dated 4th September, 1833: "Some interesting facts relative to the currency of the country came to my knowledge on this tour, which it may be important to mention. [MARCH 18, 1834. ney, which would not only render it safe, but would at the same time secure to the Government, and to the community at large, the conveniences and facilities that were intended to be obtained by incorporating the Bank of the United States. What were those conveniences and facilities? Were they not a uniform currency, and equalized domestic exchange? And these facilities and conveniences the Secretary says the State banks are actually providing: "In large commercial transactions in the principal "And, by agreements among themselves, to honor cities, the notes of the distant branches of the United each other's notes and drafts, they are providing a genStates Bank are generally rated at a fourth per cent. dis-eral currency, at least as sound as that of the Bank count. The only circumstance which gives them credit of the United States, and will afford facilities to comor circulation at those points generally is, that they are merce, and in the business of domestic exchange, quite receivable in payment of all public dues." "If they were equal to any which the community have heretofore enno longer receivable at the custom-house, they would be joyed." of no more value than the notes of distant State banks, and would become a local currency, floating around the points where they are redeemable. It is the Government, therefore, and not the bank, which gives those notes all the general credit and currency they possess, and the same credit and currency it can give to the paper of any other institution. What has become of these agreements? The committee, for themselves, say, (page 30;) "If it should be urged as an objection to the State banks, that they cannot afford a general currency, the answer is obvious. If it were deemed necessary to create a bank paper currency, possessing equal credit with that of the present Bank of the United States, the object "From the nature of money and trade, it is very ob- can be as well accomplished with the State banks as with vious that nothing can constitute a currency of general the Bank of the United States. The provision which has and uniform credit which is not convertible into gold made the latter current every where, is the clause in the or silver, or its equivalent, at the points where the charter which compels the Government to receive their people of any given country purchase their principal notes in payment of all debts due to the public; and a supplies of merchandise. In this country, we can have similar provision in favor of the State banks, which might no currency, of general and uniform credit, which is be selected as the depositories of the money of the United not so convertible at New York, Philadelphia, Boston, or States, would immediately make their notes equally curBaltimore." rent, and insure for them equal confidence in any part of Again: "A course of banking business has recently the United States. But the committee are not prepared been introduced between the West and the East, which to recommend the adoption of such a measure. They promises to furnish a general currency of uniform value are convinced that all which public convenience requires, without the agency of the Government: it is the mak-in this respect, will soon be accomplished by arrangements ing the notes of the Western State banks convertible into among the banks themselves; and that there ought to be gold and silver at the great commercial points, &c. no legislation of Congress for the purpose of establishing a currency of paper.' "The notes of the Union Bank of Tennessee are now a better currency in Philadelphia, and every where else, so far as they are known, than the notes of the Nashville Branch of the United States Bank, simply because they are convertible into specie, and therefore pass at par, at the great commercial points. They are now taken in payment of debts, and on deposite by the banks in Philadelphia, but the branch notes are not. "The Planters' Bank of Mississippi has made an arrangement with a bank in New York, by which it is to issue notes, payable at its own counter, or at the Planters' Bank in Mississippi. "The branch of the Albany State bank at Mobile is negotiating a similar arrangement in New York. Yet the same committee, in the same report, only sixteen pages before, have said: "There appears also to be much force in the considerations urged by the Secretary, connected with the currency of the country and the domestic exchanges. The notes of the Bank of the United States must necessarily, in a short time, be withdrawn from circulation. That the principal currency of the country, for many years to come, will be bank notes, there is no reason to doubt; and it is certainly good policy to foster the State banks, which furnish them, in measures tending to give them as general credit as has been heretofore attached to the notes of the United States Bank and branches. These facts hold out a promise of a general currency "That the natural and ascertained course of trade, cirof more uniform value than that now furnished by the culation, and exchange, connected with the interests of Bank of the United States, without the aid of the Gov-banking institutions, will ultimately produce this result, ernment in originating or supporting it, &c. "Probably the period is not distant when it will be found to be the true interest of the country, and of banks themselves, that the whole of its paper currency shall be payable in the great commercial cities." Further quotations might be given, to show the agent's belief that his duty extended to the currency also. But the present will probably be deemed sufficient to show the accuracy of the information he collected, and the depth of his own financial wisdom. in relation to the notes of the principal State banks, there is every reason to anticipate; but their employment in the business of the Government, by awakening them to their capacities and interests, is calculated to hasten the consummation of so desirable an event. "It was a matter of no small moment to encourage and hasten the State banks, in maturing their system of circulation and exchange, so that, at the termination of the charter of the Bank of the United States, the trade of the country might not encounter, at the same time, the loss of a general currency, and the entire breaking up of the domestic exchanges, a partial interruption of which, by that bank, is now producing such serious in"The propriety of removing the deposites being thus convenience. By the latest returns of the banks employevident, and it being consequently my duty to selected by the Government, it appears that they are already the places to which they were to be removed, it be- rapidly taking the place of the Bank of the United States came necessary that arrangements should be immedi- in the exchange operations." To return from the principal agent to the agent's principal. The Secretary of the Treasury, summing up his reasons, (page 19,) says: ately made with the new depositories of the public mo- Now, sir, if the Secretary has nothing to do with the |