[H. OF R. currency, and the committee think there ought to be no judicious course of legislation, founded upon the adoplegislation of Congress for the purpose of establishing a tion of the State banks as fiscal agents;" for such legislacurrency of paper, how can there be, as the committee tion must, I presume, of course, spring from Congress. have said, "much force in the considerations urged by The President's judicious currency is as incomprehensithe Secretary, connected with the currency of the coun- ble as his judicious tariff. try and the domestic exchanges," and why is it necessary for Congress to legislate in affirmance of the Secretary's arrangements? More especially, why is such legislation necessary when the committee say: Sir, another question occurs to me. Where did the Secretary get authority to contract with State banks? The act of the 1st of May, 1820, for the regulation of the Departments, vol. 6, Laws U. S., p. 490, says: "Sec. 6. That no contract shall hereafter be made by "According to the law, as it now stands,, the duty of the Secretary of State, or of the Treasury, or of the Deselecting the banks, and of prescribing the securities to partment of War, or of the Navy, except under a law be taken, is devolved upon the Secretary of the Trea- authorizing the same, or under an appropriation adequate sury, under the supervision of the President. This pow- to its fulfilment," &c. er has been heretofore exercised by the head of the Treasury Department, and in a manner advantageous to the public; and it is not doubted, if the law should continue unchanged, that it may and will continue to be so exercised by the head of that Department." If it is all very well as it is, why should there be any legislation about it? If there be no reason of revenue, and no reason of currency, what reason is there? What reason have the committee given? "They think that it would be more consistent with the principles of our Government for Congress to regulate, by law, the mode of selecting the fiscal agents, the securities proper to be taken, the duties they shall be required to perform, and the terms on which they shall be employed." Now the committee have already argued at great length, that these are executive powers belonging, by the principles and practice of our Government, to the Secretary of the Treasury. If they are executive powers, what right has the Legislature to interfere with the manner of their exercise? But let us hear the committee again: The President and the committee are for an enlargement of the specie basis. Sir, agree with all my heart that an enlargement of our metallic basis is advisable. I have been myself among the first to urge the banishment of the small notes gradually. But in my poor judgment the measures of the President, and those recommended by the committee, are the very reverse of those best calculated to effect that object. The mere exclusion of the notes of the State banks which issue bills of small denominations, will be entirely inadequate. The only effect of that regulation will be to render them a depreciated currency, and a depreciated currency always usurps the circulation. The better is hoarded; the worse is passed. Every one will receive it for sales, because they add a little to the price. Every one will take it for doubtful debts, rather than go unpaid, and every one will pass it off again, as fast as possible, for fear of loss. The prospects of preserving a uniform currency and equalizing domestic exchanges under the present state of things, may be estimated by the stock, exchange, and bank note price currents of the different cities. [Mr. W. read quotations of exchange and discount on bank notes, from a New York price current, showing a difference of from one to seven per cent. between the notes of the banks of different States; also, extracts from a New Orleans price current, to show the fall of stocks and produce. For these quotations see end of the speech.] Mr. W. then proceeded The committee say: "They are persuaded that, by the adoption of the State banks as the fiscal agents of the General Government, and a judicious course of legislation founded upon it, a sounder state of the currency than now exists would soon be attained," &c. "The main object of legislation should be to enlarge the basis of specie, on which the paper circulation of the State banks is to depend for support. And the committee are persuaded that, by the adoption of the State banks as the fiscal agents of the General Government, and a judicious course of legislation founded upon it, a sounder state of the currency than now exists would soon be attained, and the country rescued permanently from the danger of those sudden expansions and contractions of the paper currency which have been constantly succeeding each other since the Bank of the United States was established, and which have brought such severe and extensive evils upon the The committee have not thought proper to tell us the country. The aid and co-operation of the several States process by which they have been "persuaded." The may be relied on to banish, gradually, the smaller notes, minority say their opinion is directly the reverse. Now, and introduce in their place silver and gold for ordinary sir, what are the facts? What is the information the domestic purposes, and the convenience of travel between House or the committee have, with respect to the State distant places. Such a reform is strongly called for by banks? What information the committee possess peculiar sound policy, and the best interests of the country, and to themselves, I know not. If they have such, they have the accomplishment of an object so desirable may be not imparted it. The information the House possesses is mainly accelerated by laws passed by Congress, adjust-soon told. The only official returns for this year we have ing the standard of value of our coins, and regulating obtained through the Treasury, are those of the selected the deposites and collection of the revenue. If gold and banks. The collection of none other were, I presume, silver were brought into common use, and the small deemed necessary, as a preparation to the important notes banished from circulation, payments of small sums measure of changing the fiscal agents of the Treasury and would probably be made in specie. The great object is not to diminish the amount of the ordinary circulating medium, but to give it a broader and firmer foundation on the precious metals." Now, if there ought to be no legislation of Congress relative to a currency of paper, how can "the enlargement of the specie basis," on which the paper circulation of the State banks is founded, be "the main object of legislation. The aid and co-operation of the States, it seems, are to be relied on for part of that legislation which is to restore a sounder currency than the notes of the Bank of the United States. But the legislation of the States cannot be part of that the regulators of the currency of the country. The remaining information in possession of the House, consisted of returns of the year before last of part of the State banks, collected under a resolution of the House, which he had had the honor to submit, and transmitted by the Treasury. The resolution contemplated an annual and complete return, as far as practicable, but none had as yet been received from the Department. He would not be understood as complaining of any neglect of duty. He was apprized of all the difficulties of getting the information required. Though the returns were, for the most part, published, no State officer was bound to communicate H. OF R.] The Public Deposites. [MARCH 18, 1834. them to the Secretary. He could only request it. The turns of a diminishing currency, get into their hands the resolution was of recent origin, and had probably escaped property of all the rest. And yet this is the way in which notice, or was believed to be temporary. To supply, as it is proposed, to protect the poor against the rich. far as possible, the absence of this information, Mr. W. But even this state of the banks must be taken as rahad been at the pains to procure from members of that ther more favorable than the truth. It is known that House, authentic returns of their respective States, as far some State banks have been in the habit of lending and as practicable, for the last year. From these papers, and borrowing specie, so as to present a more favorable conothers which he should hereafter move to have printed, dition of their affairs previous to making their returns. he had caused to be compiled various abstracts, which he Abundant 'evidence of the fact exists; but some has rewould send to the Chair for the satisfaction of gentlemen cently been derived from a quarter where I did not exwho might be inclined to examine them. They were pect it--the correspondence of one of the selected banks made up from the actual returns of the last year from with the Secretary of the Treasury. I refer to document three hundred and ninety-eight banks, of the different 16 of this session, p. 334. The President of the Girard States and Territories, leaving upwards of fifty banks Bank, after informing the Secretary, on the 2d November whose condition was to be ascertained by reference to the last, what had been done in relation to certain transactions returns of the year previous, or estimated from a general between them and the United States Bank, says: "The average of the rest. He also presented returns, believed motive for this step, on our part, was to be found in the to be correct, of the circulation of the Bank of England fact, that the day for the annual statement to the Legisand the banks in Canada. The grand aggregate present-lature was approaching, and the State banks, with the -ed by the returns and estimates of the State banks, in- single exception of ourselves, were curtailing their discluding those in the Territories and District of Columbia, counts considerably, and endeavoring to fortify themselves was nearly this, in round numbers: Capital, $146,000,000; for that purpose." circulation, nearly $70,000,000; deposites, $50,000,000; How far the "single exception" can be relied on, despecie and specie funds, $15,000,000. The two last items pends on the meaning of a subsequent sentence. The are confounded, in many of the returns, in such manner President of the selected bank, after stating certain facts, that they cannot be separated. "Specie funds" is under-showing its situation, proceeds: "As for ourselves, havstood to mean not gold and silver, but deposites or bal-ing $116,000 in our vaults, and creditors of the State ances in distant banks, situated in cities of the seacoast, on banks upwards of $80,000, but under an obligation to spare which checks may be drawn, and which, it is said, expe- $100,000 to two of the New York banks next week," rience has demonstrated to be, in the ordinary course of &c. I recommend this phrase to the attention of the bontrade, equally as available and convenient, to some of the orable Chairman of the Committee of Ways and Means. country banks, as specie. The actual amount of the pre-I hope he will explain it; or, if he cannot, that he will cious metals in possession of the banks is estimated not to exceed $10,000,000. The total amount of discounted paper is about $233,000,000. The interest on their discounts is more than the specie in their vaults. These returns and abstracts, sir, collected and compiled through the instrumentality of the individual who addresses you, is the only recent and authentic information we possess on the subject of our currency; and, according to them, such is the condition of the State banks which the committee are "persuaded" will provide a safer currency than now exists. seek an explanation of it. What does one of the banks, "selected" as depositories of the public treasure, mean, by telling the Secretary of the Treasury that they have $116,000 in their vaults, but under an obligation to spare $100,000 to two of the New York banks next week? To what New York banks was it to be "spared," and for what purpose? What is meant by spared? It is not given, certainly. It must be either lent or paid. If it means paid, then the Girard Bank had, after paying this $100,000, fourteen thousand dollars in specie, with a circulation of $366,000; $800,000 due to the United States, These returns had led Mr. W. to reflect on the effect and $550,000 to individual depositors, making a total which a diminishing currency would have on the prosper- amount of debt immediately demandable of $1,716,000; ity of individuals. He took a single State, and estimating to meet which, it had on that day, of funds immediately the whole amount of property in it to be worth, according available, specie $14,000, due from the Bank of the to the best data he could obtain, $70,000,000, he found United States $350,000,balances due from other banks, that the currency of that State amounted to about after deducting those due to other banks, $60,000--total, $4,000,000. That is to say, $1,250,000 of specie, and $424,000. If, on the other hand, spared means lent, I $2,750,000 of notes. For the present, he laid out of ask which were the two banks in New York to whom account the extent to which that State would be-as every $100,000 specie was to be lent to "fortify" themselves? country must be-affected by the currency of the adja-The returns to the New York Legislature, by the safety cent States. He considered it as isolated, for the sake of fund banks, are not made till January. It could not be simplifying the proposition. Four millions of dollars, then, for that purpose. Two of the State banks in New York kept the value of the property of that State, under ordi- did, indeed, make returns of their situation to the Treanary circumstances, at $70,000,000. If the amount of sury, dated within the week after the 2d November. But currency be reduced to $2,000,000, the whole capital I hope it was neither of these. I will not permit myself must fall one-half, and would be worth only $35,000,000; to conjecture there is any shifting of specie among the and the capacity of the $2,000,000 to purchase property selected banks. I trust the President has not "fortified" would be as great as that of the $4,000,000 before. Every himself behind the veto, for the sake of banks that "forman who had $1,000 in money has his capital doubled; tify themselves by passing specie from hand to hand, as every man who had $1,000 in property, has his property occasion requires. lessened one-half. The one is virtually made worth $2,000; the other is reduced to $500. If the process be repeated by again diminishing the currency one-half, the $35,000,000 of property become worth only $17,500,000. If we are to believe his former Secretary of the TreaThe original $1,000 money capitalist will effectively be sury, a man whose varacity as yet has not been successworth $4,000, and the original $1,000 property capitalist fully impeached, the Chief Magistrate has asserted, “that will be worth only $250. If he owed $250 out of his if the last Congress had remained a week longer in ses$1,000 at the commencement, he will be a bankrupt. sion, two-thirds would have been secured for the bank Thus it is demonstrable, that, following out the pro- by corrupt means; and that the like result might be apcess, those who have the money originally, may, by the prehended at the next Congress." Sir, I pass from the immediate subject of the argument, for a moment, to notice some most extraordinary assertions of the President. MARCH 18, 1834.] The Public Deposites. [H. OF R. Now, sir, I beg leave to ask, what authority the Exec- That this is not mere bravado, every one who hears utive head of this republic had for thus calumniating the me has some reason to suppose. The existence and exmajority of Congress. Yes, sir, I say calumniating. Will tent of the power in question has been for sometime eaany gentleman on this floor justify-will any one palliate gerly discussed in conversation. A design to use it has such a charge? Could the President have reflected on what he was saying? Can he now reflect, with any satisfaction, that he himself has sullied the character of that country which he defended, and will be cited as authority throughout the world, that our institutions are rotten to their heart's core? Sir, I enter my most solemn, however feeble, protest, against the truth and decency of the charge. I was not one of those who voted for the bill, believing the attempt to pass it then, under all the circumstances, ill-judged and precipitate. But I do not know a man of those who did so vote, whose motives I do not believe as pure as my own, or as those of the President himself, and I trust, so long as the charge exists, my humble but sincere testimony will survive to combat it. been twice or thrice charged on this floor, and not denied by any friend of the administration. When the gentleman from Massachusetts [Mr. ADAMS] adverted to it, he was replied to, but the design was not disclaimed. Sir, the same justification can be made now that was made then and since. Charles accused his Parliament of sedition. Cromwell taxed his with corruption; and Napoleon charged the Council of Five Hundred with violations of the constitution. Wherever a representation of the people existed, the first step of a usurper has been to bring it into contempt. In modern times, sheep-skin, lead, and lamp-black, sometimes suffice for this purpose. When that is effected, steel will do the rest. "Hear these prating idiots, comrades," says the future Cæsar, "they dare to threaten your general. They intend to usurp all Again: In his annual message he seems to consider the power. They declare themselves perpetual. Down bank as constantly engaged in corrupting the people and with the tyrants." The hall is cleared in an instant by their representatives. "In this point of the case, the the soldiery, and the protector of the people's liberties, question is distinctly presented, whether the people of pointing to the Speaker's mace, says, "Take away that the United States are to govern, through representatives bauble!" Such is the brief history of many revolutions. chosen by their unbiased suffrages, or whether the Upon what did Cromwell ring the changes of complaint? power and money of a great corporation are to be se- That " many eminent persons," "the "great constitutional crefly exerted to influence their judgment and control lawyers" of that day, "had sad there was no safety for their decisions. It must now be determined, whether the the country but in the continuance of this Parliament." bank is to have its candidates for all offices in the coun- When Lucien quitted the chair of the Council of Five try, from the highest to the lowest, or whether candi- Hundred, to throw himself on horseback by the side of dates on both sides of political questions shall be brought Napoleon and harangue the troops, he invented the faforward as heretofore, and supported by the usual ble so often since repeated, of daggers raised against the means." general. "Those robbers," said he, "are no longer the representatives of the people, but the representatives of the poniard.' We have had our poniard story too. How great the difference between the beginning and the end of a revolution. When Louis ordered the States General to separate, and his grand master of ceremonies reminded them of the order, what was the indignant answer? "Slave! go tell your master we are here by the voice of the people, and we will not go hence but at the point of the bayonet." Our revolution began sooner, and has outlived that of France. Does it approach its end? Have we, indeed, then, come to this, that two successive Congresses of the United States have been stigmatized with corruption, and a forced adjournment threatened? Sir, if this charge and this threat do not rouse the spirit of the American people, the republic exists no longer. It has found a master. Sir, this charge explains the extraordinary course of conduct the President has pursued. The President believes that two-thirds of the last Congress were, or would have been, corrupted by the bank, and apprehends that the like result will be produced on the present Congress. To prevent the success of a bare majority, in relation to the deposites, he removed them before Congress assembled, under the idea that a new act of legislation would be necessary, and to that act his assent must be required, and would be refused. In other words, dreading the corruption of Congress, he intrenched himself behind the veto. And now, pursuing the same course of policy, to prevent the effect of action by a corrupt Congress, as he calls them, there is reason to believe that he meditates procuring a difference between the two Houses, and then adjourning them to such time as he thinks proper. When that will be, no one will presume to guess. There have been illustrious examples for such a proceeding, both by The elections of the city of New York, and the State those who had and those who had not the legitimate of Virginia, alone stand between us and the dictatorship. power. The example of Charles encouraged the auda- Great exertions are making to persuade the Old Domi city of Cromwell, as the example of Cromwell is now ion that this question touches nothing but the bank. Hi held up to the imitation of the President. What have she believes it.. -But no! She cannot--she will not we in the official or semi-official gazette of Friday last? Alluding to certain Senators of the United States, the paper through which "the Government" communicates with the people, holds this language: "These great constitutional lawyers are understood to hold, that, in case the Senate disagree from the House of Representatives, the popular branch is not only to bend to them, but the Executive is not authorized to interfere, and must bend also to such a modest Senate, unless Congress happened at that session to have been specially convened by the Executive. believe it--Who shall so deceive her? It is a question of liberty or slavery. She sees it--she feels it--she will treat it so. Rending the shackles of party distinction-bursting even the ties of personal attachment; casting from her with disdain the glittering toys of place and power, she will fling her spotless, glorious banner to the wind, and, trampling in the dust the prostrate form of arbitrary power, wake every mountain echo in the land to her shout of triumph, "Sic semper tyrannis.” Unless we, But it has been said, and will be said, The money of the nation is in the selected banks; it will do no good to re"In this way, not only the other powers of the Gov-move it; will you not provide for its safe-keeping there? ernment can, by this federal construction doctrine, be I answer frankly, No! I will not consecrate usurpation by set at defiance, but the people be burdened with the law. They have seized upon the treasury. maintenance of the honorable Senate here, for bank pur-its constitutional guardians, can restore it to its safe and poses, through the dog-days, and, indeed, till, like a proper depository, let them keep it till they can be imRump Parliament of old, they become the scoff and scorn peached. If tyranny will not rouse the people, ruin of the country.” will. H. OF R.] The Public Deposites. [MARCH 18, 1834. One word to constitutional dissidents. They who act of legislation is necessary. There is an existing law. say the deposites should not be restored because the bank If there is no approval of the reasons of the Secretary, for is, in their opinion, unconstitutional, make an alleged suspending the performance of his duty under it, the duviolation of the constitution by Congress the justifica- ty is to be resumed as usual, that law being in full force. tion of a palpable infraction thereof by the Executive. Who does not perceive that, if the Secretary, acting unThe proposition they maintain amounts to this: "Steal-der the order of the President or otherwise, were to reing stolen goods is not theft." store the public deposites to the Bank of the United States We are promised that the State banks shall answer all to-morrow, all would go on as heretofore, in relation to the ends of Government as fiscal agents, as well or bet- the intercourse of the bank and the Treasury? The 16th ter than the Bank of the United States. The President section, then, is not repealed. How, indeed, could the and Secretary have, indeed, nothing to do with the cur-Secretary repeal it? If it is not repealed, unless both rency, (though the President promised us a good one,) Houses of Congress concur in pronouncing his reasons and Congress ought to have nothing to do with it, except sufficient, it is his duty to restore them. If he does not, as to the coin. So say the committee. But when the he takes the responsibility, and, so far as my vote is conentire control of the currency is surrendered to the State cerned, I will hold him to it. banks, they will voluntarily take such care of it, and In removing the deposites, the Secretary of the Treamanage it so well, that there will be nothing further to sury acts as the special agent of Congress, to whom, for desire. Before I give credence to the second series of the short periods in the recess, they have delegated a part prophecies of Amos, I must believe the first have been of their power, which they cannot then use themselves, accomplished. Several months since, some epistles, con- to be employed, according to a sound discretion, in the taining esoteric precepts for the church in Philadelphia, event of some extraordinary exigency, and under an acwere exposed to the public eye as other mysteries have countability to them. It is analogous to the power somelately been. What said they? times given to the President of suspending the force of "When you consider that the public moneys in the certain laws, in the event of particular occurrences. bank were about $9,868,000; that their sudden with- The law is not repealed, and, unless the act of the Exedrawal would probably carry with it $3,000,000 out of cutive, in suspending it, is confirmed, it remains in full the private deposites, now amounting to $8,000,000; force. that the bank has now to pay two or three millions of The committee, by some strange fatality, for which it the three per cents. deferred in Europe; and that, upon is not my province to account, seem destined never to reso extensive a curtailment of business, many millions of commend a decision of the questions which they argue, its nineteen millions in circulation must soon return and never to argue the questions which they decide. upon it; you will perceive that sudden withdrawal of the public moneys would at once destroy it. Yes, sir, this boasting giant is now but a reptile beneath the feet of the Secretary of the Treasury, which he can crush at will. It exists by his forbearance, and will for the next forty days; and great forbearance will it require to save it from destruction. "But do not suppose the bank will be permitted to pursue a hostile course towards the State institutions, and thereby produce that pressure which it is the policy of the administration to prevent. Manifestations of such a course on the part of the bank will undoubtedly be met by a commensurate transfer of the public money, which shall make the bank the first to feel the consequences of its own policy. Thus they have decided against the constitutionality and expediency of the Bank of the United States, which they have not argued; and they have argued in favor of the reasons of the Secretary, which they do not call on Congress to decide. They shun putting before this House the simple, naked proposition, "the reasons of the Secretary are satisfactory;" and they place before it a resolution that "the Bank of the United States ought not to be 'rechartered." We all understand this, sir. It is a piece of generalship to throw forward the strong wing and reserve the weaker; and, if a majority of this House move according to mere party tactics, they will wheel and face, as the order of the day requires. But if, as I hope, and would fain believe, they regard the interests of their country before even their party allegiance, will they not pause and inquire, "Why should we vote on this proposition?" The bank is not before us asking a recharter; we do not know that it wants one; we know the President says he will never sign one. What use is there in saying we won't grant one? Such a declaration won't bind our successors; why should we volunteer to bind ourselves? "The Government" very naturally wishes to commit us; but why should we suffer ourselves "I am happy to know that, through the good sense of to be committed by those whose maxim it is not to com. our people, the effort to get up a panic has hitherto it themselves? If the deposites must not go back, let failed, and that, through the increased accommodations which the State banks have been enabled to afford, no public distress has followed the exertions of the bank; and it cannot be doubted that the exercise of its power, and the expenditure of its money, as well as its efforts to spread groundless alarm, will be met and rebuked as they deserve." "Thus has this haughty institution been brought to its knees at the first step of the State banks. But the result of a necessity forced upon it by the foresight and energy of the new Secretary of the Treasury is now, with characteristic impudence, set down to the account of its own liberality and forbearance." So much for the Apocrypha of Amos. What have we in the last political epistle of Andrew? 66 the administration go on with its scheme of State banks. Let us see how it will work. If that fails, let them try a specie currency if they like; but if that, too fails, let us at least have still behind one experiment which has been tried and has not failed--one measure upon which we can act untrammelled. This would seem to me the natural and proper course; but, as it might be said that I sought Now, it is admitted there is distress--there is a panic; to shun'a question which I am perfectly ready to meet, but the justification is, "all that break" ought to as there is a portion of the House who believe the reasons break." of the Secretary unsatisfactory, and yet think the bank What is the true state of the case? Congress retained ought not to be rechartered, and as my only choice of the entire control over the place of deposite: original, modes is to enable every gentleman to vote upon the when in session; appellate, when the Secretary decided, precise proposition on which he wishes to vote, I do not for urgent causes, in the recess. His reasons were to be move to lay the first resolution on the table. I prefer submitted to Congress, that they might approve or dis- having a vote upon the distinct question of the sufficienapprove. If they approve, they will proceed to desig-cy of the Secretary's reasons, the very question which nate another fiscal agent; if they disapprove, no further was referred to the committee; the question which the MARCH 18, 1834.] The Public Deposites. 3070 [H. OF R. committee have elaborately argued, and which it becomes the House distinctly to decide. The operation of this measure was, undoubtedly, questions presented by the report, without the tedious- the States where the banks, preparing for the resumption The remaining severe in many of the collection districts; particularly in ness of a formal examination, have been incidentally dis-of coin payments, had so reduced the issues of their pacussed. The propriety of continuing the deposites in the per as to render the circulating amount insufficient for State banks, by the condition of the country, the curren- the demand. But it was not in the power of the Treasury cy, and those banks themselves; the proposed inquiry to dispense with the general rule. If notes not circulating into the causes of the distress, by a select committee, was at par had been received in one district, they must have once offered by myself, and voted down by the gentleman at the head of the committee and his friends. It is now proposed to connect it with other topics, the obvious effect of which is to increase the public alarm, and to give color to the charge of corruption, so that Congress may adjourn and the experiment may proceed. We are told this "experiment" will not be abandoned whatever may be the consequences, until it has been tried and fails. been received in every district; and there existed no mode of discriminating between notes to be received and notes to be rejected, either as to the bank or the place at which they were issued. The inevitable consequence must have been, that the duties and taxes would every where be thus received, could never be employed to discharge the paid in the most depreciated paper; and that the medium demands upon the Treasury even at the places of receiving to perish there; while the expedient of substituting Treait. The revenue would accumulate in the Treasury, only sury notes to meet the public engagements led to an indefinite augmentation of the national debt.-Pp. 6, 7, 8. Again, pp. 9, 10. delicate task of designating the medium in which the 3. The Treasury has been involved in the difficult and warrants drawn by the heads of Departments should be respectively paid. And what sort of experiment is it? The President has the agriculture, commerce, manufactures, and constitution of the country, with a large portion of the fortunes and happiness of twelve millions of people, in his crucible. It is on the subterranean fire of the palace, and we can all discern through the smoke, what alchemyst it is that promises to extract a metallic currency out of misery and ruin, and to restore the golden age. The cries of the wretches whose substance is consuming in this witches' caldron, are drowned by the attendant spirits the amount of the collection is very different in different The revenue is collected throughout the Union, but in bursts of mocking laughter, mixed with taunts and bit-places; and it has happened, not unfrequently, that the ter irony. One gibbering elf traces a caricature upon the demand for payment was the greatest when the means of walls, and calls it "panic day." A voice of unearthly payment were the least. music, sweet and scornful as the accents of archangel ruined, sings in the sufferers' ears, the scoffing ex-number, and extend the range of banks employed as the 4. The Treasury has been compelled to increase the hortation, "Groan, sinners, groan!" while the guardian depositories of the public revenue, with consequences angels of the Treasury, unable to be heard amid the din, unavoidably inconvenient and injurious. hold up a mighty scroll labelled "Bank investigation." DOCUMENTS REFERRED TO BY MR. WILDE IN THE PRECEDING SPEECH. As soon as the differences of the current value of bank notes were introduced, and particularly when one bank ther, the Treasury was driven to a choice of expedients; refused to credit, as cash, a deposite of the notes of anoExtracts from that part of Mr. Dallas's report, entitled masses of revenue in the hands of the individual collectors that is, either to take the hazard of the accumulation of "II. A view of the fiscal measures during 1816." and receivers, or to recognise as places of deposite the In various communications from this Department to established in the districts which were most affected by banks (being, however, banks of unquestioned solidity,) Congress, the injurious effects of the suspension of pay-the course of exchanges. Many powerful reasons led to ments in coin, upon the administration of the finances, an adoption of the latter measure; instructions were issued have been anxiously represented. For the immediate to the collectors and receivers to act accordingly; and object of the present statement it is proper to repeat some the number of banks thus necessarily employed by the of them. Treasury, from Maine to Louisiana, may be stated at nine 1. The Treasury has been compelled to accept the pay-ty-four. ment of duties and taxes in the local curreney of the respective places of payment. the local currency. notes issued by banks, other than the depository. To the inconveniences incident to this multiplication of The comparative value of the local currencies appear-bly arising from the various kinds of paper in circulation the places of deposite, was added the complexity inevita ed, in some degree, to render this course of payment un-as money, upon some of which minute calculations were equal; but the alternative was either to adopt it, or to required. Generally speaking, the Treasury has with each abandon the hope of collecting the revenue in any con- bank four accounts: vertible medium, for satisfying the public engagements. The rule was, therefore, declared that the Treasury would receive and pay, in the notes of banks circulating at par, at the respective places of receiving and paying. For a time, the test of the fact, that the notes did circulate at par, was the agreement of the banks employed as the de-ing interest. positories of the revenue, to credit them as cash in the Treasurer's accounts. But when the principal banks with-bearing interest. drew that accommodation, and refused to credit as cash any bank notes but those which they had themselves re- the collection, custody, and distribution of the revenue; spectively issued, the fact of the circulation at par was to the great extension of the business of receipts and exnecessarily left to its own notoriety, and to the official re- penditures; and to several accidental causes; the punctual sponsibility of the collectors. notes of the local banks, continued to circulate at par; not been found practicable. Few notes, except the statement and settlement of the Treasurer's accounts have and such as did so circulate were received by the banks upon special deposite, for safe-keeping: constituted a discredited fund, upon which the Treasurer could only occasionally draw. An account of deposites of small Treasury notes, not Owing to this untoward condition of the machinery for relieve the administration of the finances from its embarThe successive attempts made by this Department to rassments, have been ineffectual. |