MARCH 13, 1832.] Bank of the United States. [SENATE. to be printed without hesitation. The report which he fessed his criminality---but he could produce to the Senate had moved to have printed for the benefit of the farmers, the authority of high names in support of that, and other was struck at by the Senator of New Jersey. In the first still harsher language, in regard to this institution. He place, the Senator was in error as to the cost of print- begged the attention of the Senate to a report on the sub. ing the report. He had stated it to be one thousand ject of the bank, made in the Senate in the year 1811. nine hundred dollars, whereas it was only one thousand [Mr. H. here read the report made to the Senate in one hundred dollars. A few days ago, two thousand co- 1811 by Mr. CLAY against renewing the charter of the pies of a report of the British House of Commons on the Bank of the United States.] subject of railroads was ordered to be printed. Follow- Mr. HOLMES said the whole question is whether we ing the language of that resolution, he had moved the shall purchase a document, furnishing us with much im. printing of another report of that body, which would in- portant information on this subject, at a reasonable price, terest a thousand of our citizens, where that report would or whether we should rely for information upon ex parte interest one. There was not a farmer in America who statements. The alarm was sounded that the bank was would not deem it a treasure. It covered the whole saline dangerous. There was, he believed, no great danger kingdom; and those unacquainted with its nature had no arising from the possession of its notes--not more, at all more idea of it than a blind man had of the solar rays. It events, than from the possession of the money-all which was of the highest value to the farmer and the grazier. had been denounced as the root of evil. He would not It showed the mineral kingdom upon the animal kingdom; now enter into a discussion of the bank question. When and its views were the results of the wisdom, the expe- the bill, this morning reported, came before us for discusrience, and the first talents of Great Britain. The asser- sion and final action, he should guide his course in regard tion of the Senator, that the bank aided in producing a to it by the instructions of his own understanding. His sound currency, he would disprove by facts and dates. instructors at home needed instruction. Moreover, he In 1817 the bank went into operation. In three or four believed that the instructions from the Maine Legislature years after, forty-four banks were chartered in Kentucky, were secondhand instructions. They went from this city and forty in Ohio, and the United States' Bank, so far to Maine, and are now returned. He was sorry that his from being able to put them down, was on the verge of neighbor from New Hampshire had seen fit to reply to the bankruptcy. With the use of eight millions of public remark he had made upon another subject, in regard to money, was hardly able, from day to day, to sustain itself. the popular and federative will. He did say that the SeEleven millions of dollars, as he could demonstrate, the nate was not the representative of the popular will, and, people had lost by maintaining the bank during this were it otherwise, the small States might be swallowed up crisis. But for a wagon load of specie from the mint, as by the popular will. In the convention, a member from Mr. Cheves informs us, it would have become bankrupt. Connecticut held it as a sine qua non that the small States In addition to this, the use of Government deposites, to should be equally represented with the large States in the extent of eight millions, was necessary to sustain it; the Senate; and, if this principle were not admitted, he and the country lost eleven millions by the diversion of should, he declared, take his hat, make his bow, and leave those deposites to this purpose. Congress authorized the the assembly. The time may come when the popular purchase of the thirteen millions of three per cents.--at will may predominate--when the will of the people, as exthat time, they could have been purchased at sixty-five pressed in the other House, may overcome the will of the cents, now they were at ninety-six per cent. This was States as here represented, but that day will be the last of one item of the amount lost, and the other was the inte- the constitution. rest on the stock from that time to the present, amounting to six millions more. It was shown by Mr. Cheves that the United States' Bank owed its existence to the local banks to the indulgence and forbearance of the banks of Philadelphia and Boston, notwithstanding its receipt of the silver from Ohio and Kentucky, which drained that the bank. country, destroyed its local banks, and threw down the Mr. JOHNSTON said this debate was very irregular; value of every description of its property. The United but, as the gentleman from Missouri has deemed this a States' Bank currency was called by the Senator the poor proper occasion for renewing a charge of a very serious man's friend. The orders on the branches-these drafts nature against the Bank of the United States, he hoped issued in Dan and made payable in Beersheba-had their the Senate would indulge him with a simple explanaorigin with a Scotchman; and, when their character was tion. discovered, they were stopped as oppressive to the poor; and this bank, which was cried up as the poor man's friend, issued those same orders, in paper so similar to that of the bank notes, that the people could not readily discern the difference between them. It was thought that the people might mistake the signature of the little cashier and the little president for the great cashier and the great president. The stockholders were foreigners, to a great extent they were lords and ladies-reverend clergymen and military officers. The widows, in whose behalf our sympathy was required, were countess dowagers, and the Barings, some of whom owned more of the stock than was pos- Now, said Mr. J., what had the bank to do with the sessed in sixteen States of this Union. He would not go money in the treasury, or the purchase of the stocks? The further into these things at present, and he was sorry that Government had appropriated ten millions to the sinking the attack made on his alum salt bill had made it necessary for him to say so much. Mr. BIBB spoke in favor of the resolution. He had, he said, examined the work, and, in his opinion, it ought to be possessed by every member of Congress, and was worthy of a place in the Library. It was an impartial and full digest of the debates and decisions on the subject of Mr. J. said he understood, then, that the gentleman now stated that the Government had lost ten millions of dollars in sustaining the Bank of the United States. This charge had been made at the close of the last session, under circumstances that precluded a reply: it had been printed and circulated, upon his authority, very ex tensively through the country. The charge was founded upon the fact, that there were ten millions in the treasury during the year 1817, which might have been employed in purchasing the three per cents. at sixty-five in the hundred. fund; they had placed this fund in the hands of the commissioners; and they had directed them to apply it to the payment of the public stocks, and had authorized them to buy, among the others, the three per cents. if they could be had at sixty-five. Mr. HILL, in reply to the Senator from New Jersey, said that the resolution for printing the report on the salt tax was no measure of his, and had passed the Senate without attracting any attention from him or from any one. If it The fair and reasonable presumption is, that that very Was a crime to charge the bank with monopoly, he con-able board, with the aid of the Secretary of the Treasury, executed this trust according to the best of their judgment, for the interest of the country. It was not necessary for him to vindicate them; their high character will defend them against the imputation of having mismanaged the public funds committed to their care, or having the design to sustain the bank at the public expense. They did precisely what was proper and practicable to be done. They did purchase one million and a half of the three per cents. at sixty-five; but the price rose, and they could buy no more; and that is an answer to the whole charge. There were nominally in the bank, at the credit of the Government, ten millions during the year 1817. But what were they? Transfers of the deposites in the banks of the several States! Could they be rendered immediately available? Could discounts have been made upon such capital? These stocks, at sixty-five, would have been [MARCH 13, 1832. $8,612,500 7,751,250 16,363,750 2,186,250 $18,550,000 Which, at six per cent., for fifteen years, But, said Mr. J., the gentleman arrives at his conclusion by this summary process. If the three per cents. had been bought at sixty-five, there would have been a reduction of capital of four millions, and six millions have been paid in interest upon the three per cents., making ten mil lions-a very short and convenient calculation; but he has entirely forgotten that the money was employed in extinguishing a debt bearing six per cent., and for which, amounting to near eight millions, he has totally omitted to give credit. But, said Mr. J., the point of the charge does not lie here. The charge is, that the Government lost ten mil lions in sustaining the bank. But it was not until March of that year that Congress passed the act appropriating ten millions annually to the payment of the public debt; which fund was placed in the hands of the Vice President, the Chief Justice, the Secretary of State, and others, to be by them applied to that object. They directed, at the proper time, how and when Now it is most obvious that the bank was the mere the payments should be made, and the bank paid their depository of the money; that it had nothing to do with warrants on demand. If the money remained in bank du- the purchasing of stocks; that it paid the money as dering that year, it was an affair of the Government; it may manded; that the commissioners could not purchase the have resulted from a defect of the law, but it cannot at- three per cents. at sixty-five; that they purchased what tach any blame to the commissioners, either for the want was most advantageous to the Government; that two mil of attention or judgment in discharging this duty. But lions only, and not ten, would have been saved if this stock what had the bank to do with it, except to pay the money could have been purchased at the price limited; that this when ordered? two millions would have been lost by the holders, if they But the commissioners applied this money to the pur-had taken that price; that the Government had no right chase of stocks bearing six per cent. instead of buying to expect her citizens would take less than the value of the three per cents. at sixty-five, by which operation their stocks. the gentleman says Government has lost ten millions of dollars. Mr. J. said he should like to know by what curious process of calculation such a result could be obtained. It must be apparent that, if the fact is true that the Government have lost ten millions by not purchasing the three per cents., the holders of the stock have saved it by not selling, or, rather, they would have lost it if they had sold. But how was the bank sustained? last sixty days. The bank went into operation the 1st January, 1817. It had thirty-five millions of capital, besides individual deposites. It was impossible, during the first year, to employ its own capital. It must be apparent it did not and could not employ the Government deposites. But suppose it could, at the rate of six per cent. The sinking fund act passed near the end of the first quarter of 1817. The money remained in hand for three quarters of that year, Now, it is not reasonable that those sagacious men who which would have amounted to $450,000; but one-fifth of deal in stocks would have sold thirteen millions of stock that belonged to the Government, which reduces the upon such terms as to lose ten millions in fifteen years. amount to $360,000. But, then, as they had to pay it out It is, moreover, not to be presumed that the intelligent on the 1st January, they could not employ it during the men who manage the public funds, did not know the difference between three per cents. at sixty-five, and the In this manner it is made to appear that the Govern other stocks in the market. Nor can it be imagined that ment has lost ten millions of dollars in sustaining the the stockholders did not know their interest too well to bank, while it is clear the bank had not the capacity of sell at any such sacrifice. But the gentleman has miscal- employing its own capital so soon after it went into opeculated the difference, and committed an extraordinary ration. error. The actual difference between having purchased Mr. J. said that he had asked the indulgence of the Sethe three per cents. at sixty-five, and buying now at nate merely to set this matter right. ninety-five, is only $2,186,250. But this is enough to show, Mr. BENTON rose in reply to the gentleman from to any man conversant with stocks, that the Government Louisiana, [Mr. JOHNSTON,] and, to avoid all chance for could never have made such an advantage by purchasing error, would have recourse to official statements. He had, stock. Why did the Government direct the purchase at at an early period of the session, called for information the limited price of sixty-five? It was because that was from the Treasury Department, on all the points neces more advantageous than to buy six per cents., and it was sary to understand the nature of this loss of nearly eleven because three per cents., at sixty-five, were worth more millions of dollars for not paying the three per cent. stock than six per cents. that no one would sell them for that in 1817, according to the authority in the sinking fund sum, and they rose as high or higher than other stocks in act of that year. He had called for the price of the stock, the market. The three per cents. amounting to, To be purchased now at ninety-five, and the answer to that call (page three of the document $13,250,000 he held in his hand) showed it to be from sixty-three and 5,962,500 three-fourths to sixty-four cents in the dollar. He had called for the amount of public money in the hands of that 19,212,500 bank, at the end of each month to the end of the year, C62,500 (1817,) and it was shown to average about ten millions, being in July as high as sixteen millions, (lacking a frac $18,550,000 tion,) and about seven and a half millions at the end of the year. He had called for the amount of stock when HARCH 13, 1832.] Bank of the United States. [SENATE. The he sinking fund act was passed, (March 3, 1817,) and it ticular as others to whose name a million is assigned. It as shown to be a fraction over sixteen millions. He had was all moonshine! They had as well have a vial of alled for the amount purchased under that act, and it was moonshine lying under the steps of the bank, as this stateown to be a fraction less than three millions. He had call- ment of a million in the vaults. The capital could be d for the amount of interest paid since on the three per nothing but coin or funded debt. The charter fixed that. ent. stocks, and it was shown to be a fraction over six She had but seven millions of coin in the whole, and that millions of dollars. He had called for the present price was due, and doubly due, and nearly three times due, to of this stock, and it was shown to be about ninety-six cents depositors. She had but twenty-two hundred dollars of n the dollar. Upon these data he had bottomed his esti- funded debt; which was nothing in so large a concern. mate of a loss of near eleven millions of dollars to the She had little to go upon but the credit and revenues of United States for not purchasing it in 1817, and the fact the United States. Foreigners enjoy this credit and these was clearly made out. The stock had risen one-third, and revenues. They wear the name of the United States. hat added upwards of four millions to it; we had paid They blazon it in huge letters on their bank notes, and above six millions of interest; and the two sums made near on the orders which were intended to be palmed upon eleven millions of dollars. The stock might have been the ignoramuses of the West for real bank notes. bought for about eight millions in 1817, and so prevented correspondence of the president of the bank with Mr. the increase and saved the interest; but the money was Rush shows that these orders were intended to be passed eft in bank, and she had the benefit of it without pay- for notes. ing any interest. Mr. Cheves, in his report to the stock- They were to have the same marks, and figures, and holders in 1819, says, the bank had the benefit of upwards devices, and edgings, and general appearance, and to be of eight millions of public deposites: and the list of bal- signed by a little president as well as a little cashier, who ances, in the hands of the bank, proves the same thing. the people might think were the president and cashier The gentleman from Louisiana says, the United States intended in the charter. And they got these "substitutes saved two millions by purchasing six per cents. instead of for notes" received in payment of public dues, though three per cents.; and here lies the cardinal error of that the present Secretary, in his report to the Senate, shows gentleman. He supposes all the money was taken out of us that he has no official information that they are received. bank to pay the six per cents., when the fact is proved Mr. JOHNSTON, in reply to Mr. BENTON, said, the that it was not taken out for that or any other purpose; gentleman has entirely forgotten the point he rose to exit remained in bank, to an amount of average of ten mil- plain. The charge was, that the bank had been sustained Fons, the whole year, and the bank had the use of it without by a loss of ten millions to the Government. The point interest. Mr. B. had nothing to say against men. He was of the charge is the loss to the Government. It was my not trying to blame this or that man; he was going against object merely to explain away that error; but not in this an institution which was in its nature too powerful for the irregular way to be drawn into a discussion of the whole Government. He was friendly to Mr. Crawford and Mr. affairs of the bank. I looked with some interest for the Cheves; but it is incontestable that the United States had facts and reasons upon which he maintained this extraordilost eleven millions of dollars by favoring the bank with nary proposition. The gentleman has merely reiterated the gratuitous use of the public deposites in the year 1817. the charge, and has contented himself with showing from The bank was now doing business upon the deposites the tables that ten millions were in bank, unemployed, in and the credit of the United States. She had eight mil- 1817. That is not the question. The point in issue is, hons of deposites in the name of the treasurer, and near has the Government lost any thing? Could the commistwo millions in the name of public officers, and but seven sioners have employed the money differently or more millions of specie, and twenty-two hundred dollars of advantageously? Could they have purchased the three funded debt. Her capital could only consist of specie and per cents. at sixty-five, and did not? and if they had funded debt. So said the charter. She had not capital purchased, would that have made a difference of ten enough to pay the public deposites, and had about eight millions? And was this loss incurred with a view to susmillions of private deposites, besides an issue of nearly tain a bank just going into operation? and had it that forty-one millions of notes, as they were called. It is effect? These are the points necessary to maintain this evident she was doing business upon the credit and reve- serious charge, and which I thought the gentleman had nues of the United States. And who were those favored risen to make good. people, who thus had the public money and the name of The gentleman says it was not his intention to impugn the United States to bank upon gratuitously? They the conduct of the commissioners of the sinking fund; were, in a great part, foreigners! Lords and ladies of but the conclusion is irresistible. The money was placed Great Britain; knights and barons; military and naval in their hands to pay the public debt; if they have so officers; reverend clergymen and country squires: they managed the fund as to lose ten millions to the Governheld eight and a half millions in their own name, besides ment, it would evince the grossest mismanagement; and what was in the names of their trustees. The name of if with a view to support the credit of the bank, it would the bank was a misnomer. It was essentially a British in- become a charge of a more serious character. But the stitution! And what was striking was, that these English fund has been ably administered; and there is no just people made no compensation for the use of the people's ground of censure or complaint any where. They have money in their bank here, while they had to make a large regularly applied the money to the purchase of the stocks compensation to the British Government for the use of bearing the highest interest, and which were most advanthe Government deposites there. tageous to the Government. And what was still more curious was, that a member of I have shown that the difference between three per the British Parliament, who issued orders from his country cents. at sixty-five, in 1817, and at ninety-five now, is little bank in England in 1826, and had them suppressed there, more than two millions. But the advantage of buying at is now doing the same thing in the United States, and we sixty-five is a mere question of time. If they were to cannot suppress them here! Mr. B. said it would be be redeemed in fifteen years, they were worth more than amusing, if it was not distressing, to see the people in the sixty-five; but in twenty-five years they were worth comWest call for more capital to their branch banks. He paratively, with the other stocks, less than sixty-five. It said that the printed returns lying on (or under) every was therefore a mere matter of speculation, then, whether Senator's table would show that not a cent of capital was the Government would redeem the three per cents. at ever sent to Mobile, Natchez, or St. Louis; but he was par, in fifteen, or twenty, or twenty-five years. The certain these branches were about as well off in that par-holders, believing the stock would be redeemed, in all SENATE.] Bank of the United States. [MARCH 13, 1832. probability, in fifteen or sixteen years, refused, of course, It is now urged, as matter of complaint, that the bank to take sixty-five, and the result will justify the calcula- has the use of this sum without interest, which would tion. They were just as able to estimate all the probabili- amount to $150,000; a sum too inconsiderable to be the ties, and all the advantages, as the Government. The subject of so much complaint. The gentleman now varies the attack, and the charge now is, that the bank has no resources, or, as has been said in another place, "cannot pay its debts." value of these three per cents. now depends on the will But does the bank perform no duties, and render no of the Government--they are not demandable. The Go- services to the Government? Does it not receive and pay vernment may postpone the payment indefinitely; and out, at various places, during each year, twenty-five mil does not the gentleman perceive, if the payment is defer- lions of dollars? Is the labor, and responsibility, and red only six years, the effect will be the same as if they expense of this, no equivalent? had been purchased, in 1817, at sixty-five; and, if to ten years, we shall have done better than to have bought at that time; and that, by prolonging the payment, the Government will gain, every year, the difference between Sir, here is a bank that has forty-nine millions of notes three per cent. and the interest which she now receives falling due in sixty days, and sixteen millions of bills fallfrom the bank, that is, seven per cent.! That is, in other ing due on an average of ninety days, with seven millions words, the seven millions of stock in the bank will pay of specie, and two millions of notes of other banks, besides the interest on the thirteen millions of three per cents. real estate, with eight millions of regular individual deforever. The administration is now urging us on to pay posites, besides those of the Government, which, it is now this debt, at this sacrifice of six millions of dollars. The said, has not the means of paying its debts, and which loss which will arise from paying the three per cents., amount to only twenty-one millions, independent of the will be three times as great as any loss that might have deposites; that is, the bank has sixty-five millions of paper arisen from not purchasing the three per cents at sixty-five. falling due, and seven millions of specie, and two millions But the gentleman says there were ten millions in bank of bank notes, and has less than twenty-one millions in in 1817. That is true; it was deposited there, and paid circulation. out when called for. This charge, at most, could only amount to the interest that year. But then, in order to make good the charge, it must appear that they employed the money. But it was the first year of their operations, and they could not put in activity, in so short a period, all their capital. It will be seen that, during the year 1817, they had much less in circulation; so that it must be apparent they derived no benefit, and were not sustained by the Government. Is it possible that any man who understands the princi ples of banking can suppose such an institution unsafe, either for the stockholders or the people of the country? The Bank of England, with a capital of fourteen millions of pounds, issues twenty millions, while that of France, with ninety millions of francs, issues two hundred and thirty millions; the Bank of the United States has less than twothirds of hers in circulation. The country may well trust its administration to the exIt will also appear, that, during the year 1819, the perienced men who have been chosen to direct it. The period of the greatest distress, almost all the funds were bank could not fail, without the loss of thirty-five millions withdrawn, there being little more than half a million. In to the stockholders; and what motive or interest can there 1820, it amounted to near a million, but, in the year follow-be to endanger, in the slightest degree, the safety of the ing, it was overdrawn as much. In 1822, it did not exceed institution? The bank has been in easy, and regular, and a million and a half. In 1823, and part of 1824, five safe operation for ten years; it discloses its business every millions remained in bank, because there was no applica- month; there are five directors on the part of the Govern tion of the money by the commissioners, in consequence, ment: it enjoys the highest confidence every where, and probably, of there being no debt redeemable, and no is, in fact, in most successful operation. authority to purchase; but, in the last quarter, there was half a million overdrawn. But, admitting the whole fact, to what does it amount? That the United States' Bank received twenty-four or twenty-five millions a year in deposite for the Government, and pay it over, upon the warrant of the treasurer, to meet appropriations by Congress, and that the Government have in general an average balance of three millions in bank in advance. But the gentleman says the bank has no capital. There is but two thousand two hundred dollars of funded debt; and why? Because the bank has permitted the Govern ment to redeem its stock. How can the bank have funded debt, when the Government is paying it off, and it is ceasing to exist? It is but three years since the bank held sixteen millions, but the Government has extinguished it. But the charge is seriously made, that the bank has but seven millions of its capital in its vaults. Does the gen Now, every dollar of this whole revenue is appropriated tleman suppose the bank is to lock up its capital in spe in anticipation; and every dollar of this three millions is cie? That this institution is to withdraw from circulation appropriated, and is no longer the property of the Go- thirty-five millions of specie; for the public funds will now vernment. It waits to be called for by those who have cease to be capital. What would the bank operate upon? claims upon it, and have a right to demand it. But it She could not have in circulation notes to an amount must be obvious that all individuals, in the military, naval, greater than her capital; and what advantage could she and civil service, in different parts of the United States, derive from an issue equal to her capital, if she retained and in the Mediterranean and Pacific, cannot close their her capital? accounts, and draw the money during the precise year; it The bank formerly held a large amount of funded debt. must require six weeks, or two months, to draw out all That has been paid off, and was replaced in bank by spe the appropriations of the preceding year. cie. What must the bank do with it? Lock up so large portion of the circulating medium of the country? Then we should hear of embarrassment and derangement, of the This sum of three millions is not more than the revenue withdrawal of specie, and of inundating the country with of six weeks, and the Government have not had, on an bank notes. But now the argument is turned in the other average, for twelve years, more than six weeks' receipts direction. The bank has been too liberal. It has put in in the hands of its agent to meet all demands; and this activity its own capital, and increased its circulation. It sum has been at all times appropriated, and not properly has extended its accommodation, and given facility to com the fund of the Government. But if this operation was mercial operations, it is said, to the extent of twenty mil But the money is applied but twice a year to the public debt, and it must, in the interval, accumulate. a performed by the treasury or State banks, it would be lions. The whole of this arises from the imperfect knowledge of the subject. The bank held the funded debt of the MARCH 13, 1832.] Bank of the United States. [SENATE. I trust a suitable occasion will occur to reply to all the charges that have been put forth; they are all susceptible of as clear and satisfactory explanation as those he has set forth to-day. Government to the amount of sixteen millions, which has the improper interference of Government. They have been changed into money, and has, besides, received seven deserved the public confidence as much by their indepenmillions from the Government in payment for its own dence as by the just and liberal administration of their stock, making twenty-three millions. What was to be affairs. There is as little danger of their becoming a tool done with this part of the capital? Let it lie idle and un-of power, as a tool of party. productive in the vaults? It more wisely determined to put the funds in circulation. But, instead of having the effect of inducing over-dealing, it has had the effect to relieve the country from its necessary consequences: in the place of curtailing its operations, when the pressure was Mr. SMITH, of Maryland, said, he seldom took part in felt, as the local and limited banks are compelled to do, it discussions in which there was no particular object--the extended its accommodation, met the crisis, and gave re-vote on which concluded nothing; but as the day was nearlief. The gentleman from Missouri has also charged that ly spent, and nothing else would probably be taken up, the bank has forty millions of paper, as well as its capital, he asked leave to submit a few observations. in circulation. This is an error. I cannot be mistaken, The motion now before the Senate, said he, is, whether when I repeat, as I do, with perfect confidence, that the the Senate will authorize the purchase of sixty volumes of paper in circulation is not more than twenty-one millions. a work which I consider highly useful to a correct underIt is necessary to distinguish between the paper issued, standing of the affairs of the Bank of the United States; which I believe does amount to forty millions, and the which work contains every document which has been hereamount put into circulation. The amount retained on tofore presented, and every speech which has been delihand, deducted from forty millions, gives the circulation, vered on the subject of this institution, and on this quesor the amount for which the bank is indebted, which is tion. The whole subject of the renewal of the charter of about twenty-one millions. the bank has been indulged in. And what will the vote Another objection is now taken to the foreign stock- on this question show? That the Senate has, or has not, holders, and an attempt is made, by parading their names agreed to purchase the books. Of course, then, the vote and titles, to produce some personal prejudice. They on this question will show nothing whatever relative to the are persons of rank, entitled, from their character and con- bank itself; and thus do we waste the time which ought to dition in life, to our respect here. They are holders of be devoted to the essential business of the session. stock, because the necessities of the country, and the policy The Senator from New Hampshire [Mr. HILL] came of our laws, gave them the privilege. The country was prepared with a speech on this subject, and, after its deliexhausted by the war; there existed a great scarcity of the very, moved to lay the resolution for the purchase of the precious metals. It was the interest of the country to books upon the table, and called for the yeas and nays, draw foreign capital, or to induce investments in this bank, thus concluding debate. In some way or other, (and conas the other public stocks were paid off. trary, in my opinion, to order,) the debate has been continued, and now, by unanimous consent, it has been permitted to proceed. This was rendered the more necessary, as the whole monetary system, in a very short period, underwent an entire revolution, and the paper circulation was reduced I ought, perhaps, Mr. President, to entertain some near sixty millions; and it must be borne in mind that, in doubts whether I am at all acquainted with the subject of reducing the specie circulation to fifty millions, three to banking, differing, as I do, with the Senator from Missou four millions were annually paid to foreign holders of pub-ri, [Mr. BENTON,] who has been making it his particular lic stock. study, and who, after laborious investigation, has brought The investment of foreigners evinces the universal con- forth opinions so directly opposite to my ideas of banking. fidence in the stability of this institution. At the last session of Congress, that Senator presented a This question may properly arise under the bill for re-resolution in relation to the bank, and accompanied it with chartering the bank. It is certainly of much less conse-a speech of great length, which speech was circulated in quence now than formerly; but there are considerations pamphlet form from Maine to Louisiana. It met here with L now that ought to be duly weighed. Foreigners now hold no reply from any Senator. It therefore had a fair chance about ten millions of the public debt, which it is proposed to inform the public mind on the particular side of the to pay off in the course of a year. This sum displaced, question which it represented. And what has been the cannot fail more or less to disturb the circulation. The result? Why, that the bank, it appears, has become more country now feels the effect of this drain, produced as popular than even its friends had believed; and why? Be much by paying off stocks held by foreigners, as by over-cause the charges contained in the speech induced men importation. to inquire into them; and the more general this inquiry The gentleman objects that the Bank of the United was, so in proportion was the public satisfied that the States may exert great political power and corrupt influ- bank was eminently beneficial to the nation to the treaence. Money is power, certainly, whether in the hands sury--to the people, and, in fact, that the Government of individuals, of local banks, or in the Bank of the United could not conduct its business with promptitude and with States. The concentration of a large sum, under the direc-safety, without the aid of a bank over which it could, at tion of men having little to do with elections, or with po- all times, exercise a salutary control. litical parties, under the general superintendence of five The Senator [Mr. BENTON] has stated the issues of notes directors, appointed by the Government, divided into made by the bank to be forty-one millions of dollars: whetwenty-four States, under separate boards of directors, ther he is right or wrong in his statement, I know not. Now, chosen among the most respectable persons of different Mr. President, Senators may believe that " issues" mean political principles, acting under public instructions, can- notes in circulation--not so; there is a wide difference not become a political engine, and will exert less influence between notes issued and notes in circulation. Notes isthan in the hands of individuals. The object of the stock-sued mean simply notes which have been signed by the holders is profit, not power. They have the highest mo- president and cashier. Whenever that duty has been pertives not to interfere, and not to excite prejudice against formed, the amount of notes thus signed is always added them. to the amount of issues: but every one who is in the least No such argument or inference can be drawn from degree acquainted with banking operations, knows that what has hitherto occurred. They have acted upon gene-one-third or more of such notes are always in the bank ral principles, and have not permitted even the officers of or its branches, ready to meet any demand which may be the Government to dictate to them, and they have resisted made for bank notes; so that the Senator [Mr. JOHNSTON] |
