is free. The duty on hemp, $20 74 per ton, on 12 tons | In 1819, there was imported 251,356 lbs. of cordage.248 88. The duty on sail-cloth is merely nominal,* In 1828, the importation of cordage was 2,164,096 lbs. and all that made of flax can be considered free, it being | And the exports from St. Petersburg for the supply of imported into this and other countries in competition the shipping trading to that port alone, was 1,348,224 with Russian, and from the fact that the duty on flax is lbs., making in all 3,512,320 lbs. The same rule is apbut 36 cents per ton; but on account of part that may be plicable to the shipping in the British trade, as a drawmade of hemp, we shall say a ton of hemp is used, the back equal to the duty on the raw material is allowed duty on which is $20 74. For the first outfit the duty on comparatively small quantities. The result has been stands at 269 62. The sales and rigging require to be not only a decrease in the demand for the raw material, renewed every three years, for nine years, amounting to but actually transferring the manufacturing of Russian 808 86-total amount, $1078 48. From the foregoing hemp, heretofore manufactured in the United States, to it appears, that in 12 years an American ship of 500 tons Russia, as the importation of cordage above stated clearpays a duty of 5375 dollars. A British ship, during the ly proves, as well as the fact that the manufacturing of same period, pays 1078 48. Making a difference in 12 it here has actually decreased from 3 to 2-3rds in the last years, of 4297 52, against the American ships. If we four years, which evidently shows that the importation take into consideration the difference of duration of a of cordage was not for re-exportation but for home conship built out of English oak, and one built out of our sumption. It is very certain, that not only the hemp common oak, the difference will still be greater. Then grower has suffered a falling off, but the farmer has suf take into consideration the difference of capital employ-fered also, for had the cordage been manufactured in ed, and the rate of interest, which is nearly double here this country, provisions would have been consumed by to what it is there, and it is not difficult to see where the rope-makers, the raising of which has been actually this will end, viz. in driving the American ships entire- transferred to Russia, along with the manufacturing of ly out of the contest, to the great injury of your me- the cordage. The same is applicable to the smith, and morialists, who have spent their youth in learning trades chain and anchor manufacturer, but still in a greater de that are daily becoming useless to them, as the increase gree, viz-Chain cables are introduced into this country in British shipping is very visible, more particularly in made out of both refined and common English iron; the carrying of bulky articles, such as salt and crates, when made out of refined, the duty is $37 per ton, or iron, and taking a return cargo of cotton, tobacco, &c. 80 per cent, the price of the iron being £10 per ton; the The number of British vessels is yearly gaining ground duty on the chains, three cents per lb. or 43 per cent. on ours, at this, as well as other ports; they are general- on an average; if out of common iron, the duty is 37 ly fuller built than ours, by which cause they pay less dollars per ton, the cost of the iron $26 66 per ton, tonnage in proportion to their cargo-this, with the a- making the duty on the raw material 140 per cent.bove duties, operates as a bouny in their favour. These The same is applicable to anchors. The importation combinations of effects cause not only an individual loss, of chains in 1828 was 830,630 lbs. we suppose double but a very sensible national loss, in transferring the the quantity made in the United States. Of anchors, ship-building business to foreign nations, whereby we 72,556 lbs. With such an odds against such of your are all made the sufferers, in a national as well as individ- memorialists as are engaged in this business, it is imual point of view. possible for them to compete, be their economy ever so great, and their knowledge ever so complete. So that the present duty on iron, enormous as it is, only depriv es the smiths of their share of employment. This fact. is further illustrated by the discontinuance of the Stirling works in the city of New York, which have been sold, as they could not stand against such advantage giv en to foreign manufacturers over the domestic. This establishment employed 500 men. The same has be fallen the sail-cloth manufacturers, although they had an additional duty, at their request, 1828; which was not the case with the smiths, feeling, as they then did, the operation of the 30 dollors per ton duty, they well knew that nothing could save them but a reduction of 5thly. Notwithstanding the discouraging state of our the duties on their raw materials, and actually memorialship-building interest, yet it is not the worst feature of ized Congress to that effect; but a duty of 7 dollars per our present policy. Many of your memorialists are suf- ton, equal to nearly 20 per cent. was added; and a fallfering from the present rate of high duties on their rawing of about 20 per cent, in the price of iron in England materials, as the following statement will show, of that part of business yet retained by the country. The ropemakers, chain and anchor makers, and sail-cloth manufacturers, are in a great measure deprived of participating in the business. The duty on hemp, so far from hav ing created a demand for American hemp, has actually had a contrary effect, as may be seen by the following extract from the report of the Secretary of the Trersury. 4thly. The British shipping have another advantage over ours, viz. they are on equal footing as to an inward cargo; and if they go South for cotton, rice or tobacco, they are on an equal footing footing for outward freight home to England or the Hanseatic towns, (If it was here objected that our vessels have the advantage of taking a cargo coastwise, it may by be remarked that this is only nominal, for our ships going from hence South very seldom wait for a freight-this is the business of regular coasting packets.) Besides if it is, not in season, they have the advantage of going either to the West Indies, or northern colonies for timber, an advantage which our ships do not possess. has given a most complete monopoly of the American works in Patterson, N. J. for the manufacturing are market to the English manufacturers. The Phenix cloth, are about stopping their operations, if they have not already done so: in this establishment there were low rate of 623 cents a day, on which they found their 265 hands employed, of which 109 were men, at the high duties on raw materials do not create, but actually own board. The above is a very striking proof that destroy a market for them, and transfer the manufactur Sails, in use of any British ship, and being fit and ne-ing thereof to a foreign country. It plainly appears that cessary for such ship, free. British Tariff for 1830, p. the hemp and flax growers have suffered a loss, the iron 64. The bounty on sail-cloth is calculated to be equal drawer has lost also, as the consumption of those materito the duty on hemp, 1d. per ell. Ibid p. 133. Present als have declined with the ship-building business, and price of Scotch and London sail-cloth, 1s. or 22 cts. for are enabling the foreign manufacturers to undersell our 24 inch broad, or 27 cts. for 30 inch. Best Russian own, and the rope-makers and smiths have been sacri sold last fall at 60 roubles per piece of 38 yards, or 33 ficed by the high rate of duties imposed on their raw cents per yard, at the rate of exchange, or nearly six materials, at the request of the producers therof. The cents per yard higher than the best British, which is farmer has suffered a loss also, as the growing of grain said to be as durable, if well kept. This proves what and other provisions have been transferred to Russia and we have said, that the duty on sail-cloth is nominal in England with the manufacturing of the above stated articles. So intimately are all the interests of a country Great Britain. 1830.] ACCOUNTS OF CANAL COMMISSIONERS connected together, that when one is suffering, all the others partake of the suffering also. Your memorialists therefore refer the foregoing facts to the favorable consideration of your honorable bodies, giving their opinions as practical men, that the only remedy that can be applied to save them from ruin, is, to allow a drawback equal to the duties on the raw materials that enter into ship-building; on cordage, iron work, chains and anchors, copper bolts and spikes, sail. cloth, and such other articles used in ship-building as, in your wisdom, you may think proper. Also, on cordage, chains and anchors, and sail cloth, when exported. This would be a great relief, not only to your memorialists, but would create a greater demand for hemp, flax, and iron, by the improved state of the business, and afford a greater security against the monopoly of our own share of the carrying trade of our own produce, and that we take in exchange from others.Other nations are daily giving greater facilities to their manufactures and commerce, by making the cost of the raw materials cheaper and cheaper. If we do not adopt the same system in regard to our ship building interest, in its different ramifications, we shall be driven from the Ocean. To prevent such a catastrophe, your memorialists hope that Congress will see the necessity of granting their request, and, as in duty bound, will ever pray. ACCOUNTS OF CANAL COMMISSIONERS. Auditor General's Office, 2 Very respectfully, your obedient servant, Hon. Frederick Smith, Speaker of the House of Representatives. - David Scott, John Mitchell, James Clarke, Peter S. Van Hamot, James S. Stevenson, David Frazier, John Forrey, Nathaniel B. Eldred, and Robert Patterson, Esquires, Canal Commissioners, in account with the Commonwealth of Pennsylvania. 279 4,070,068 57 5,242 77 29,864 08 4,099,932 65 868,014 27 From July 14th, 1829, to Feb. 23rd 1830, 416,288 99 John Forrey, acting commissioner on Thomas Woodside, late superintendent. From June 20, 1829, to Feb. 22, 1830, Thomas G. Kennedy, superintendent Charles Mowry, late acting canal com- From July 14, 1829, to Feb. 1, 1830 Andrew M'Reynolds, late superintendent west branch division of said canal. From March 27, 1829, to October 3d, John Ryon, superintendent of west branch division of said canal. $241,235 24 From July 14, 1829, to Feb. 5, 1830, John Mitchell, late superintendent creek feeder for Pennsylvania canal. 90,469 59 235,447 15 127,218 71 426,959 48, 488,068 45 From Sep. 22, 1829, to Feb. 19, 1830, 1,452 42 4,070,068 57 eastern division 17,818 38 Amount paid to their treasurer, Amount paid to their treasurer, 3,300 00 122,962 35 19,637 67 1,658 51 5,242 77 3,736,677 04 the consideration of the House: There are few subjects, having reference to the policy of an established government, so vitally connected with the health of the body politic, or in which the pecuniary interests of society are so extensively and deeply involved. No one of the attributes of sovereignty carries with it a more solemn responsibility, or calls in requisition a higher degree of wisdom, than the power of regulating the common currency, and thus fixing the general standard of value for a great commercial community, composed of confederated States. Such being in the opinion of the committee, the hight and delicate trust exclusively committed to Congress by the Federal Constitution, they have proceeded to dis 7,095 29 charge the duty assigned to them, with a corresponding sense of its magnitude and difficulty. 3,743,772 33 The most simple and obvious analysis of the subject, as it is presented by the message of the President, exhibits the following questions for the decision of the 356,160 32 National Legislature: 1. Has Congress the constitutional power to incorporate a bank, such as that of the United States? 2. Is it expedient to establish and maintain such an institution? 3. Is it expedient to establish a "National Bank, founded upon the credit of the Government and its rev The foregoing balance in the hands of the following enues?" named persons— James Clarke, acting commissioner Juniata line 50,000 00 John Ry on,superintendent Susque- 50,000 00 39,835 17 William Dickson, superintendent 33,241 24 John Mitchell, acting commissioner north branch division 27,273 17 18,037 65 Thomas G. Kennedy, superintendent Delaware division 14,778 13 1. If the concurrence of all the departments of the Government, at different periods of our history, under every administration, and during the ascendancy of both the great polical parties into which the country was divided soon after the adoption of the present Constitution, shall be regarded as having the authority ascribed to such sanctions by the common consent of all well regulated communities, the constitutional power of Congress to incorporate a bank may be assumed as a postulate no longer open to controversy. In little more than 2 years after the Government went into operation, and at a period when most of the distinguished members of the FederalConvention were either in the Executive or Le gislative councils, the act, incorporating the first bank of the United States, passed both branches of Congress by large majorities, and received the deliberate sanction of President Washington, who had then recently -281,339 17 presided over the deliberations of the Convention. The constitutional power of Congress to pass the act of incorporation, was thoroughly investigated both in the Executive Cabinet and in Congress, under circumstances, in all respects, propitious to a dispassionate decision.-There was, at that time, no organization of political par ties, and the question was, therefore, decided by those, who, from their knowledge and experience, were pecaliarly qualified to decide correctly; and who were en tirely free from the influence of that party excitement and prejudice, which would justly impair, in the estima tion of posterity, the authority of a legislative interpre tation of the constitutional charter. No persons can be more competent to give a just construction to the Con sitution, than those who had a principal agency in framing it; and no administration can claim a more perfect exemption from all those influences which, sometimes, pervert the judgments, even of the most wise and patriotic, than that of the Father of his Country, during the first term of his service. 1,743 72 2,000 00 71,077 44 $356,160 33 BANK OF THE UNITED STATES. Such were the circumstances, under which all the branches of the National Legislature solemnly determi ned that the power of creating a National Bank was vested in Congress by the Constitution. The bank thus created, continued its operations for twenty years -the period for which its charter was granted-during The Committee of Ways and Means, to whom was which time, public and private credit were raised, from referred so much of the Message of the President as rea prostrate, to a very elevated condition, and the finan lates to the Bank of the United States, beg leave to re-ces of the nation were placed upon the most solid foun Mr. McDuffie from the Committee of Ways and Means to which the subject had been referred, made the following REPORT: port: That they have bestowed upon the subject all the attention demanded by its intrinsic importance, and now respectfully submit the result of their deliberations to dation. When the charter expired, in 1811, Congress refus ed to renew it, principally owing, as the committee believe, to the then existing state of political parties. 1830.] BANK OF THE UNITED STATES. 281 Soon after the bank was chartered, the two great paring precluded, in his opinion, by repeated recognitions, ties that have since divided the country, began to as under varied circumstances, of the validity of such an insume an organized existence. Mr. Jefferson and Mr. stitution in acts of the legislative, executive and judicial Madison, the former in the Executive Cabinet, and the branches of the government, accompanied by indicalatter in Congress, had been opposed to the establish- tions, in different modes, of the concurrence of the genment of the bank, on constitutional grounds, and being eral will of the nation." Another bill was immediately placed at the head of the party most unfavorable to the introduced, and would, in all probability, have become extension of the powers of the Government by implica- a law, had not the news of peace, by doing away the tion, the bank question came to be regarded as in some pressure of the emergency, induced Congress to susdegree the test of political principle. pend further proceedings on the subject, until the ensuing session. At the commencement of that session, Mr. Madison invited the attention of Congress to the subject, and Mr. Dallas again urged the necessity of establishing a bank, to restore the currency, and facilitate the collection and disbursement of the public revenue; and so deep and solemn was the conviction upon the minds of the public functionaries, that such an institution was the only practicable means of restoring the circulating medium to a state of soundness that, notwithstanding the decided opposition of all the state banks and their debtors, and, indeed, the whole debtor class of the community, the act incorporating the present bank of the United States, was passed by considerable majori. ties in both branches of Congress, and approved by Mr. Madison. When Mr. Jefferson came into power, upon the strong tide of a great political revolution, the odium of the alien and sedition laws was in part communicated to the Bank of the United States; and, although he gave his official sanction to an act creating a new branch of that institution at New Orleans, and to another to punish the counterfeiting of its bills, yet when the question of renewing the charter came before Congress, it was discussed as a party question; and though some of the most distinguished republicans, including Mr. Gallatin, then Secretary of the Treasury, and Mr. Crawford, then a member of the Senate, were decidedly in favour of a renewal, sustaining the measure by able arguments, the votes in both branches of Congress were distinctly marked as party votes. At no time since the commencement of the Government has there existed a more violent party excitement than that which marked the period under review. It was the period of the embargo, non intercourse, and other commercial restrictions-when the undiscriminating opposition of the leaders of the Federal party to the measures adopted by the adminis. tration, to vindicate our rights against British aggres sion, had caused the great majority of the American people to view these leaders as the apologists of a nation, already regarded in the light of a public enemy.isted, public and private credit were greatly impaired, When to these circumstances we add, that the stock of the bank was principally held by British subjects, and Americans of the unpopular party, the House will readily perceive how great were the national and party prejudices, which must have been arrayed against the proposition to renew its charter. It was stated by Mr. Clay, in a speech delivered in the Senate, that seven-tenths of the stock belonged to British subjects, and that certain English noblemen, and a late Lord Chancellor, were among the very largest of the stockholders. With all these difficulties to encounter, the proposition for renewing the charter was lost only by the casting vote of the President of the Senate, and by a majority of a single vote in the House of Representatives. This brief history of the former and present bank, forcibly suggests a few practical reflections. It is to be remarked, in the first place, that, since the adoption of the constitution, a bank has existed under the authority of the Federal Government, for thirty-three out of forty years; during which time, public and private credit have been maintained at an elevation fully equal to what has existed in any nation in the world; whereas, in the two short interyals, during which no national Bank exand, in the latter instance, the fiscal operations of the Government were almost entirely arrested. In the second place it is worthy of special notice, that, in both the instances in which Congress has created a bank, it has been done under circumstances calculated to give the highest authority to the decision. The first instance, as has been already remarked, was in the primitive days of the republic, when the patriots of the Revolution, and the sages of the Federal Convention, were the leading members both of the Executive and Legislative councils; and when Gen. Washington, who, at the head of her armies, had conducted his country to independence, and, as the head of the Convention, had presided over those deliberations which resulted in the establishment In less than three years after the expiration of the of the present Constitution, was the acknowledged charter (the war with Great Britain having taken place President of a people, undistracted by party divisions. in the mean time,) the circulating medium became so The second instance was under circumstances of a very disordered, the public finances so deranged, and the pub different but equally decisive character. We find the lic credit so impaired, that the enlightened patriot, Mr. very party which had so recently defeated the proposiDallas, who then presided over the Treasury Depart-tion to renew the charter of the old bank, severely ment, with the sanction of Mr. Madison and, as it is be- schooled both by adversity and experience, magnanilieved, every member of the cabinet, recommended to mously sacrificing the pride of consistency, and the preCongress the establishment of a National Bank, as the judice of party, at the shrine of patriotism. It may be only measure by which the public credit could be revi- said without disparagement, that an assembly of higher ved, and the fiscal resources of the Government redeem- talent and purer patriotism has never existed since the ed from a ruinous and otherwise incurable embarrass- days of the Revolution, than the Congress by which the ment; and such had been the impressive lesson taught present bank was incorporated. If ever a political par by a very brief but fatal experience, that the very insti- ty existed, of which it might be truly said, that "all the tution, which had been so recently denounced, and re- ends they aimed at were their country's," it was the rejected by the republican party, being now recommend publican party of that day. They had just conducted ed by a republican administration, was carried through the country through the perils of a war, waged in deboth branches of Congress, as a republican measure, by fence of her rights and honor, and elevating their views an overwhelming majority of the republican party. It far above the narrow and miserable ends of party strife, is true that Mr. Madison did not approve and sign the sought only to advance the permanent happiness of the bill which passed the two Houses of Congress, because people. It was to this great end that they established it was not such a bill as had been recommended by the the present bank. Secretary of the Treasury, and because the bank it proposed to create was not calculated, in the opinion of the President, to relieve the necessities of the country. But he premised his objections to the measure, by "waving the question of the constitutional authority of the legislature to establish an incorporated bank, as beVOL. V 36 In this review, it will be no less instructive than curious, to notice some of the changes made in the opinions of prominent men, yielding to the authority of experience. Mr. Madison who was the leading opponent of the bank created in 1791, recommended and sanctioned the bank created in 1816; and Mr. Clay, who strenu ously opposed the renewal of the charter in 1811, as cannot be doubted, that he might have formed a bankstrenuously supported the proposition to grant the charing copartnership with the principal capitalists in the ter in 1816. That may be said of the bank charter, which can be said of few contested questions of constitutional power. Both the great political parties, that have so long divided the country, have solemnly pronounced it to be constitutional, & there are but very few of the prominent men of either party, who do not stand committed in its favor. When, to this imposing array of authorities, the committee add the solemn and unanimous decision of the Supreme Court, in a case which fully and distinctly submitted the constitutional question to their cognizance, may they not ask, in the language of Mr. Dallas, "can it be deemed a violation of the right of private opinion to consider the constitutionality of a national bank as a question for ever settled and at rest?" other commercial cities of the Union, of which the bills would have had a general credit in every part of the country, particularly if the Federal Government had provided that these bills should be received in discharge of its dues. The only material particular in which the charter of the Bank of the U. States confers a privilege upon the corporation, apparently inconsistent with the State laws, is the exemption of the individual property of the corporators from responsibility for the debts of the corporation. But, if the community deal with the bank, knowing that the capital subscribed is alone liable for its debts, no one can complain either of imposition or injury; and, in point of fact, no one ever has com plained on that score, or ever will. The real complaint against the bank, is not that it has not a sufficient basis for its credit, but that its credit is too extensive. The objection lies, therefore, not against the artificial character communicated to the stockholders by the charter, but against the pecuniary operations of the bank itself. Now, these operations consist in the use of its own capital-a faculty not surely derived from the Government, but, in the exercise of which, the Government imposes many useful restrictions for the benefit of itself and of the community. And here the committee beg to be distinctly understood, as utterly disclaiming the idea of ascribing to the decision of any or of all the departments of the government, upon a great constitutional question, the binding authority which belongs to judicial precedents, in cases of mere private right, depending upon the construction of the ordinary acts of the Legislature. No length of prescription, or concurrence of authority, can consecratethe usurpation of powers subversive of public liberty, and destructive of public happiness. But where the power exercised is clearly conducive to the public welfare; and its constitutionality is merely doubtful, it would seem to be one of the most obvious dictates of practical wisdom, to regard the decision of those who had the best means of ascertaining the intention of the Constitution, and who were actuated by the most undoubted purity and disinterestedness of motive, as of sufficient authority at least to overrule theoretical objections and silence individual scruples. The committee will now submit a few remarks, with the design of showing, that, viewing the constitutionality of the bank as an original question, the arguments in its favor are at least as strong as those against it. The committee have presented this brief analysis of a bank corporation, with the view of showing that there is nothing in the natnre of the thing, which renders it unfit to be an instrument in the hands of a government admitted to be sovereign in its appropriate sphere, for carrying into effect powers expressly delegated. It now remains for the committee to show that the bank of the United States is a "necessary and proper," or in other words a natural and appropriate means of executing the powers vested in the Federal Government. In the discussion of 1791, and also in that before the Supreme Court, the powers of raising, collecting and disbursing the public revenue, of borrowing money on the credit of the United States, and paying the public The earliest, and the principal objection urged against debt, were those which were supposed most clearly to the constitutionality of a national bank, was, that Con- carry with them the incidental right of incorporating a gress had not the power to create corporations. That bank, to facilitate these operations. There can be no Congress has a distinct and substantive power to create doubt, that these fiscal operations are greatly facilitated corporations, without reference to the objects entrusted by a bank, and it is confidently believed that no person to its jurisdiction, is a proposition which never has been has presided twelve months over the treasury, from its maintained, within the knowledge of the committee; first organization to the present time, without coming but, that any one of the powers expressly conferred up-to the conclusion, that such an institution is exceedingly on Congress, is subject to the limitation, that it shall not be carried into effect by the agency of a corporation, is a proposition which cannot be maintained, in the opinion of the committee. of the subject. useful to the public finances in time of peace, but indispensable in time of war. But as this view of the ques tion has been fully unfolded in former discussions, familiar to the house, the committee will proceed to ex If Congress, under the authority to pass all laws, ne-amine the relation which the bank of the United States cessary and proper for carrying into effect the powers bears to another of the powers of the Federal Govern vested in all or any of the departments of the Government, but slightly adverted to in former discussions ment, may rightfully pass a law inflicting the punishment of death, without any other authority, it is diffi The power to "coin money and fix the value thereof," cult to conceive why it may not pass a law, under the is expressly and exclusively vested in Congress. This same authority, for the more humble purpose of crea- grant was evidently intended to invest Congress with ting a corporation. The power of creating a corpora- the power of regulating the circulating medium, 'Coin' tion, is one of the lowest attributes or more properly was regarded, at the period of framing the constitution, speaking, incidents, of sovereign power. The charter as synonymous with currency," as it was then gener ing of a bank, for example, does not authorize the corally believed that bank notes could only be maintained poration to do any thing, which the individuals com- in circulation by being the true representative of the posing it might not do without the charter. It is the precious metals. The word "coin," therefore, must be right of every individual of the Union to give credit to regarded as a particular term, standing as the represen whom he chooses, and to obtain credit where he can tative of a general idea. No principle of sound con get it. It is not the policy of any commercial country struction will justify a rigid adherence to the letter, to restriot the free circulation of credit, whether in the in opposition to the plain intention of the clause. If, for form of promissory notes, bills of exchange, or bank example, the gold bars of Ricardo should be substitut notes. The charter of the bank of the U. States, there- ed for our present coins, by the general consent of the fore merely enables the corporation to do, in an artifi- commercial world, could it be maintained that Congress cial capacity, and with more convenience, what it would not have the power to make such money, and would be lawful for the individual corporators to do fix its value, because it is not "coined"" This would without incorporation. Mr. Girard established a bank be sacrificing sense to sound, and substance to mere in Philadelphia without a charter, which was in very form. This clause of the Constitution is analogous to bigh credit within the sphere of its circulation; and it that which gives Congress the power "to establish posi |