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SENATE.

Bank of the United States.

FEBRUARY, 1815.

August, they were posted in front; the loss sustained Mr. Taylor, from the committee to whom by the enemy was produced, in a great degree, by its was referred the bill, entitled "An act to amend militia, and some amongst the best of its citizens bled the act laying duties on licenses to retailers of or fell. The enemy next threatened Baltimore itself, wines, spirituous liquors, and foreign merchanupon which its people, old and young, of all classes, dise," reported it without amendment. exerted themselves to the utmost, and with the most

The Senate resumed the consideration of the uncommon energy, in erecting works of defence, and amendments of the House of Representatives to making preparations to meet him, and, by the most the bill, entitled "An act to extend the time of unremitting and indefatigable labors, their city was Oliver Evans's patent, for his improvement on put into a tolerable state of defence by the time he appeared before it. And the city feels great pride in the steam engines,” and concurred therein. rocollection that, on the day so memorable to it, the

BANK OF THE UNITED STATES. 12th of September, the constancy, fortitude, and courage of its citizen soldiers will bear a comparison with bill

, passed by the two Houses, entitled "An act

The Senate resumed the consideration of the those of any other people on earth. Its citizens, some of whom had borne arms in their country's defence in to incorporale the subscribers to the Bank of the the war of the Revolution, and her youth, met the en- United States of America," which was presented eny in advance, and were everywhere the first among to the President of the United States for approthe foremost in every perilous encounter. The bank-bation, on the 23d of January, and returned by ing institutions and the citizens of Baltimore, it is be- him on the 30th of the same month, with ob. lieved, have been as prompt and as liberal in their jections. loans to the Government as those of any other portion Mr. King rose and submitted the following of the Union.

observations: Such are the people for whom your memorialists The proposed bank would have a capital of beg and entreat aid, protection, and defence. The thirty-five millions of dollars, composed of five Government may yet provide means in time, if prompt millions specie, ten millions six per cent, stock, and vigorous measures are adopted; but there is no funded since ihe commencement of the war, time to be lost. And your memorialists cannot, for a fifteen millions Treasury notes, and five millions moment, entertain the painful thought that the con

to be held by the United States, and paid for in stituted authorities iheir country will turn with four per cent stock, to be created for this purpose. apathy from the earnest entreaties of a people so highly deserving their regard, and leave them to the mercy

The President of the United States objects to

of a brutal enemy, whose hostility against them, in par

the billticular, has been so lately manifested, and so strongly subed to the bank is insufficient to raise and

Ist. Because the amount of stock to be subexcited. EDWARD JOHNSON,

sustain the public credit. Chairman Committee of

2d. Because no adequate public advantage Vigilance and Safety. will arise from the subscription of Treasury BALTIMORE, January 26, 1815.

3d. Because the full aid and co-operation of

the bank, in the furnishing of permanent and THURSDAY, February 2.

temporary loans, is not secured to Government William T. BARRY, appointed a Senator by during the war. the Legislature of the State of Kentucky, in the 4th. Because the bank cannot be relied upon place of George M. Bibb, resigned, and Isham during the war to provide a circulating medium. Talbot, appointed a Senator by the Legislature How the public credit could be revived, and of the same State, in the place of Jesse Bledsoe, sustained by the transfer of any sum of war resigned, respectively, produced their creden- stock from one citizen to another, or from the rials, were qualified, and they took their seals in present holders to the proposed bank, is not obthe Senate.

vious. If the war stock be taken ai fifty milThe bill to authorize a detachment from the lions, a demand for one-fifth, or ten millions of militia of the United States was read the second it, to be united to the bank capital, would have a time.

temporary influence upon the stock market; and The bill, entitled "An act giving the right of if any except stockholders become subscribers to pre-emption in the purchase of lands to certain the bank, this increase of price would be advanseitlers in the Indiana Territory," was read the ageous to the sellers. But the advantage would second time, and referred to the committee ap- be a private one, no part of which would accrue pointed the 21st September, on the memorial of to Government. As soon as the requisite sum is ihe Legislature of the Indiana Territory, to con- transferred to the bank, the stock will be precisesider and report thereon.

ly as valuable, and no more so, ihan it was before The bill,'entitled “ An act to authorize the such transfer. Government will be obliged to payment for property lost, captured, or destroyed. make the same annual provision to pay the inby the enemy, while in the military service of terest after the transfer as before. The public the United States," was read the second time. credit, which, after employing all the cabalistical

The President laid before the Senate a report words and manæuvres of stock jobbers, always of the Secretary for the Department of the Navy did, and always will, depend upon the ways and on the petition of William Elliot, referred to hin means, or the ability of Government, to fulfil its on the bih ultimo; and the report was read. engagements, or to pay its debts in equivalent

notes.

FEBRUARY, 1815.

Bank of the United States.

SENATE.

values, will be little, if at all affected by a trans notes, shall be receivable as a part of the bank fer of stock from individuals to a corporation capital, and when received shall be converted within the country, especially as these iransfers into fifteen millions of six per cent, stock. If are to be made at different times, and at periods not received by the bank and converted into six of considerable distance from each other. The per cent. stock, this sum of fifteen millions of same debt would continue to exist, yielding the Treasury notes will fall due, and must be paid same dividends and representing the same sum of off, in the beginning of the next year. To this American capital as it now represents. No ad- end money must be borrowed; and assuming the dition to domestic capital would be made by this rate of the last loans, to borrow fifteen millions operation. If it releases the capital of A who of dollars Government must give eighteen milsells the stock, it will employ the capital of B, lions and three-quarters of a million of dollars of who purchases it; and the only difference will six per cent, stock. So that the difference bebe, that A becomes the owner of a disposable Iween paying them off, or allowing them to be capital, which before belonged to B.

subscribed to the bank, and then converted into The raising of the price of stocks may prove six per cent. stock, would be a clear saving to the beneficial to a Government in two ways, if it public of three millions seven hundred and fifty wants to borrow; the permanent, not the casual ihousand dollars six per cent. stock. raising of the prices of the stock market, will Moreover, by this conversion of Treasury notes enable it to sell 'new stock dearer. If foreigners into an equal sum of six per cent. stock, room come into the market, the raising of its price in would be made for a further issue of Treasury creases the money which must be brought into notes-the finances would also be relieved by rethe country to purchase stocks. It was to meet leasing Government from the obligation to pay the latter case, that an operation was undertaken off their notes at a fixed day, and the ways and by Colonel Hamilton, which proved to a limited means, whether from loans or iaxes, to the amount degree advantageous. But although Government of fifteen millions, which would have been redesires to obtain loans, it is not probable that any quired for this purpose, would be left at the dispermanent application of the public credit would position of Governmeni. have been produced by the transfer of a given sum of the war stock to the bank, especially when the no adequate public advantage will arise from the

Is then the objection correct, which alleges chat deep wound given to the public credit, by the ex. subscription of Treasury notes to the bank ? traordinary terms upon which the late loans were negotiated, is considered. More favorable times;

The third objection alleges that the bank is a revival of industry aod of commerce; an im? under no legal compulsion io afford thai full aid proved state of the finances, with a public income and co-operation to Government, which the Mescommensurate to the public expenditures, are sage declares to be both indispensable and necesnecessary to the revival and re-establishment of sary in the administration of the finances, the the public credit.

bank being neither obliged to make temporary The discrimination which is proposed to be nor permanent loans to Government. carried still further than the bill carries it, in Temporary loans to Government, in advance favor of the war stock, is impolitic. Were Gov. or anticipation of the taxes, are without doubt ernment at liberty, for its own advantage (a case among the chief advantages that Government not now existing) to make such discrimination, derives from a National Bank; as portions of the the holders of war stock ought not now to desire annual expenditure are required to be made beit in their favor, as the example might be here-fore the taxes are collected, the bank, with mu. after cited as a precedent against them, and in tual advantage to itself and the Government, is favor of the now postponed, though equally mer- commonly able to make the advances wanted itorious stock of the Revolution.

for this purpose, waiting for their repayment un: There should be no discrimination; the public til the laxes come in. faith knows no favorites; the holders of the war In ordinary times every bank of circulation stock ought not to contend for preferences. They finds its interest in affording to the Government ought to be satisfied that the public faith, whe- this accommodation ; which is made pursuant to ther formerly or recently pledged, is equally pre- the correct maxims of commercial credit, being cious to an honest Government, and will be alıke a loan made upon “good pledges" or undoubled redeemed.

security, which at a fixed, and no distant period, If there still remains a doubt concerning the will repay it. correctness of the first objection contained in the But it must be evident that such advances in President's Message, can there be any respecting anticipation of the taxes, and which are to be rethat of the second? Will no adequate public paid by them, can be made only upon the faith advantage arise from the subscription of Treasu. lihat the currency in which the taxes are paid ry notes ?

will be of equal value with that in which the Public credit, as has already been observed, de- bank makes its advances. pends upon the ability and inclination of Gov- If, as in the instance of this bank, its notes are ernment to fulfil its contracts. Treasury notes convertible into specie, and the taxes are payable are contracts, promising to their holders the sums, either in them or a Government paper, which is and at the times, mentioned in them. The bill at a discount, no one will suppose ihai the bank provides that fifteen millions of dollars, in these can, ia such case, make advances to Governmeat,

SENATE.
Bank of the United States.

FEBRUARY, 1815. and receive in payment thereof the depreciated conclusion ; it would require much time and depaper in which the taxes are paid.

tail to give a correct idea of the operations of if the bill pass, the bank must redeem its notes this bank; all that will now be said in reply to with cash; the taxes will be receivable in bank this suggestion is, that whoever takes the requi

I notes or Treasury notes; the latter being at a site pains to understand the origin, progress, discount, the taxes will be paid in them. Ought maxims, and manner of conducting the business any one to expect that the bank will advance to of the Bank of England, whether with GovernGovernment a million of dollars in its notes, as ment or individuals, will become satisfied that it an anticipation of the land tax, and receive in transacts its business strictly upon the principles payment a million of dollars in Treasury notes, and rules of commercial credit; and that because which may be at a discount of ten or fifteen per il does so, and for that reason only, it has been cent? Is it not plain that, instead of receiving a enabled to afford the aid which it has done to the compensation for the loan, the bank would in public, private, and commercial credit of the such case suffer a positive loss, equal to the de- vation. preciation of the Treasury notes ?

It would therefore seem that it is no sufficient It results, that neither this bank, nor any other, objection to this bill that it does not oblige the whose notes are of greater value, as a currency, bank to make large loans lo Government; since than Treasury notes, can make advances in anti- to compel a bank to make such loans, upon the cipation of taxes, payable in Treasury notes. pledge of the public faith, or upon depreciated

The objection, therefore, against the bank public securities, especially when the bank is reamounts to this, that it cannot do what can only leased from the obligation to make specie paybe done by a bank which is released from those ments, would be to require it to repeat the exindispensable restraints, without which no bank periment so often made in different forms, both can with safety be established.

at home and abroad, which has everywhere and This objection goes further, and urges the re always failed, and which enlightened economists jection of the bill because the bank is not obliged will all unite to condemn. to make permanent loans to Government. No Lastly, it is objected, that the bank cannot be bank doing business, upon securities of short relied upon during the war, to provide a circuladates, can make permanent loans, and all banks ting medium. of circulation are obliged to require such securi- No bank which is obliged to redeem its notes ties. If any exception to this rule exist, it can with specie, can in the present state of commerce, only be for moderate sums. Banks, acting upon credit, and alarm, issue the same beyond a very the principle, that cash advance must be upon a limited sum. security or pledge, which, at a short date, enables If to the distrust which the war, and a real, or the bank to recall its advance, are called commer. supposed scarcity of specie, create, be united an cial banks. Those which make loans of long unusual demand for specie to be hoarded, or sent duration, or of a permanent character, do so with abroad for security, or to compensate unfavoraa reliance solely upon the public credit; and ble balances of trade, in lieu of the produce usuwithout the specific pledges, demanded by banks ally exported for this purpose ; and if at the same of circulation, and which enable them to recover time a considerable depreciation of the public their money, in all cases of failure. These are credit takes place, a case will exist in which called financial or governmental banks. So long banks of circulation are reduced to the necessity as banks confine their business, whether with of either a total suspension of business, or such Governments or with individuals, to the maxims an abridgement of it, as to render them incapable of commercial credit, receiving for their advances of circulating their notes in quantities commennotes and bills of undoubted credit, and payable surate to the public demands. at early periods, or pledges of specific funds or The objection, therefore, is not against the effects—so long are ihey of advantage to Gov-structure of the bank, bút against the condition ernments, as well as to individuals employed in of the country, and the state of the public credit, any kind of business requiring the aid of credit. which may compel the bank to curiail its circu

But all experience has proved, and the exam- lation. ples are numerous throughout Europe, and as is In effect, the objection amounts to the confes. believed without a single exception, that when- sion that no bank which confines its business to ever banks become what is called financial banks, the only safe and practical test of a paper circumaking permanent loans upon the mere pledge lation will, or can afford, importani aid in the of the public faith, when they become the mints furnishing of a circulating medium, in times and employed by Governments to fabricate paper to circumstances like the present; that no bank, such amount, as often, and for such periods, as except one which is released from the obligation their wants frequently recurring, and always ur- to pay its notes in specie, can now afford a circugent, demand; they never fail to accomplish an lating medium; in a word, that none but a bank extensive revolution in personal property, some which would circulate a depreciated currency, times produce the abolition of debis, and after and which it would be dangerous to create, ought preying upon the credulous and unprotected, end now to be established. in their own, and the nation's bankruptcy.

It might suffice to have shown that the PresiIt has been supposed that the Bank of England dent's objections ought not to prevent this bill's is a financial bank, and an exception from this becoming a law; but a few words may be added FEBRUARY, 1815.

Proceedings.

SENATE.

concerning the bill. The amount of the capital country is already reduced to this situation, and of the bank has already been mentioned. Its the President announces the same to Congress, duties and general provisions are conformable to will they prove themselves the faithful friends of those of the late Bank of the United States; the people, unless they seasonably apprize them they have had a fair trial, and have been ap- of the faci, however humiliating ? proved; whatever that bank would have done, If paper money be necessary, avow it, prepare this would be able to do; and advantages such it, issue it; but under every caution and guard as it afforded to Government in the management which can be devised to mitigate its evils. of the finances, this bank would in due iime be All experience, public and personal, demonequally or more capable of affording.

strates that every object is attained with more It bas not been contended, that at this time, certainty and greater advantage by a direct than owing to the condition of the finances and credit by an indirect course. of the United States, as well as to the general stag- Why, then, will Congress by the creation and nation of trade, and the distrust of every kind of employment of a bank attempt to conceal their credit, any safe bank that might now be estab. actual condition and real object? Why established, could afford to Government or to individ- lish a bank which, dealing only in paper, will uals much, or important assistance by loans, even fabricate and lend as many millions as Congress of a temporary kind.

may desire to borrow? Why pay to this bank But the agency of this bank would now be of an interest of six per cent. for ihe loan of their service to Government; whatever it should be notes, which in no single ingredient will, or able to do would be well done. Its operations ought to be thought, to be of greater value than would all be solid, and of standard character; its Treasury notes. The people of this country have business must be limited, but it would be safe much natural sagacity, and will not long be deand exemplary; and with regard to every other ceived by this or any similar contrivance. Rather moneyed institution, conducting its affairs hon- devise an improved scheme for the immediate estly, it would cherish and sustain it.

issue of Treasury, notes, let them be convertMoreover, by the establishment of this bank ible at pleasure into a public stock, bearing a upon sound and approved maxims, although it high interest; fund this stock by pledging spemay not now do what no safe bank can do- cific iaxes to pay the interest; the credit of this much good-it will do po injury. It will not currency will be better than that of the notes of contribute still further to depreciate public and such a bank as it is desired should be created. private credit; and during the term of its char

If a paper circulation alone will enable us to ter, it will prevent, a circumstance worth much, defend the country, prepare and make use of it; the establishment of a bank upon false and dan- but spare us the expense of paying interest for it gerous principles. On the return of peace, the to a company, whose faculties, without our conagency and influence of this bank will become tributions, will enable them io make dividends invaluable in the recovery and re-establishment equal to their utmost desires. of the credit and finances of the nation.

When Mr. King had concluded, the question For these reasons, therefore, which had their influence in the passage of the bill by the Con- was taken, Shall this bill pass ? and was detergress, and the force of which remains not only mined in the negative-yeas 15, nays 19, as undiminished, but the latter of them is increased

follows: by the objections made by the President, it is

Those who voted in the affirmative, are, earnestly to be wished, alihough scarcely to be Messrs. Brown, Daggett, Dana, Fromentin, German, hoped, that the bill may become a law.

Giles, Goldsborough, Gore, Horsey, Hunter, King, The concluding paragraph of the Message of Lambert, Mason, Tait, and Thompson. the President is incomparably the most impor- Those whu voted in the negative, are, tant. It is this which opens and interprets the object desired to be attained by the rejection of Condit, Gaillard, Kerr, Lacock, Morrow, Roberts, Rob

Messrs. Anderson, Barbour, Barry, Bibb, Chace, this bill. Congress are here admonished by the President to make haste • to substitute" (in lieu inson, Smith, Talbot

, Taylor, Turner, Varnum, Wells,

Wharton. of the bill)" a more commensurate and certain provision for the public exigencies."

So it was, The President of the United States, after al

Resolved, That this bill do not pass, luding to the exigent and perilous condition of two-thirds of the Senate not agreeing thereto. the country, after insinuating to Congress in language not io be misunderstood, that the resources of the Treasury were exhausted, that extraordi

Friday, February 3. pary succor from loans were no longer attaina

On motion, by Mr. Lacock, the bill, entitled ble, that a bank created upon safe and approved "An act to authorize the payment for property principles could afford no public assistance, plain- lost, captured, or destroyed by the enemy, while ly intimates that paper money, and only paper in the military service of the United States," was money, will, or can assist the nation in the fur- referred to the Committee on Military Affairs, to ther prosecution of the war. If this be so, if by consider and report thereon. the neglect and mismanagement of the finances Mr. Giles, from the Committee on Military and profusion in the public expenditures, the Affairs, to whom was recommitted the bill, enti

SENATE.

Public Buildings in the City of Washington.

FEBRUARY, 1815.

tled "An act for the better regulation of the Whole, the consideration of the bill, entitled "An Ordnance department," reported it with amend act to amend the act, entitled 'An act to provide ments; which were read, and considered as in additional revenues for detraying the expenses of Committee of the Whole; and, having been agreed Government, and maintaining the public credit, to, tlfe President reported the bill to the House ac. by laying a direct tax upon the United States, and cordiogly; and the amendments were ordered to to provide for assessing and collecting the same;' be engrossed and the bill read the third time as and the acl, entitled 'An act to provide additional amended.

revenues for defraying the expenses of GovernA message from the House of Representatives ment, and maintaining the public credit, by layinformed the Senate that the House have passed a ing duties on household furniture, and on gold and bill, entitled "An act for the relief of Salius, Son, silver watches,” together with the amendments and Company, merchants of the city of New reported thereio by the select committee. And York ;" a bill, entitled "An act to authorize the the amendments having been agreed to, in part, President of the United States to receive into the President reported the bill to the House accord the service of the United States certain corps ingly. And Mr. KERR moved to amend the bill, which may be raised and organized by any Staie, by adding thereto a new section, as follows: to serve in lieu of the militia thereof;" a bill, And be it further enacted, That, if either the States entitled "An act for the regulation of the courts of Ohio or Louisiana shall pay its quota of the direct of justice of Indiana ;" a bill, entitled " An tax, according to the provisions of the aforesaid act, act to amend and extend the provisions of the the Legislatures thereof shall be and they are hereby act of the sixteenth of April, 1814, entitled 'An authorized and empowered to collect of all the purchasact confirming certain claims to land in the Illi- ers of public lands, under any law of the United States, pois Territory, and providing for their location;" a just and equal proportion of the quota of said States, also, a bill, entitled "An act

making appropria respectively, the compact between the United States tions for the support of the Government for the and the said States to the contrary notwithstanding.” year 1815," in which bills they request the con- The further consideration of the bill was postcurrence of the Senate.

poned till to-morrow. The five bills last mentioned were read, and

PUBLIC BUILDINGS. passed to the second reading.

The Senate resumed, as in Committee of the The Senate resumed, as in Committee of the Whole, the consideration of the bill, entitled "An Whole, the consideration of the bill making apact to alter and amend the several acts for estab-propriations for repairing or rebuilding the publishing a Navy Department, by adding thereto a lic buildings within the City of Washington. Board of Commissoners,"together with the amend. Mr. FROMENTIN had moved yesterday to rements reported thereto by ihe select cominittee; commit the bill to a select committee. On this and, the amendments having been agreed to with motion Mr. F. addressed the Chair as follows: further amendment, the President reported the Mr. President: I am called upon to give the bill to the House accordingly.

reasons which prompted me to make the motion On the question, Shall the amendments be en- now under consideration. I will endeavor to give grossed, and the bill read a third time as amend to the Senate such an account of my motives as ed ? it was determined in the affirmative. will enable them to judge of the propriety of the

The Senate resumed, as in Committee of the reference. Whole, the consideration of the bill, entitled "An It may, perhaps, not be useless on this occasion act to authorize the purchase of a tract of land to take a retrospective view of the length of time for the use of the United States,” together with which has elapsed, after the erection of those the amendment reported thereto by the select buildings was determined on, before they could committee; and on motion, by Mr. Brown, the be used for the purposes for which they were infurther consideration thereof was postponed until tended, and of ihe sums of money which have to-morrow.

been spent upon their construction. We shall be The Senate resumed, as in Committee of the the better able to anticipate the probable time Whole, the consideration of the bill, entitled "An when these buildings may again be occupied by act concerning Weston Jenkins and others;" Congress, and to form a correct estimate of the and, no other amendment having been proposed, sums of money which we may have to appropriit passed to the third reading.

ate for those purposes. The Senate resumed, as in Committee of the Sir, it is more ihan twenty-three years, if I am Whole, the consideration of the bill, entitled "An correctly informed, since the public edifices, proact concerning Mathew Guy, John Woodward, posed now to be rebuilt, were begun to be erected. Samuel Tennison, and Wilfred Drury,” together None of them, at the time of their destruction by with the amendmenis reported thereto by The se- the enemy, were completely finished; and I belect committee; and, the amendments having lieve, the south wing of the Capitol was not ready been agreed 10, the President reported it to the for the reception of the House of Representatives House accordingly.

more than four or five years before it was deOn the question, Shall the amendments be en- stroyed. If it be found necessary to rebuild, ingrossed and the bill read a third time as amead-stead of repairing, ihe other hopeless alternative ed ? it was determined in the affirmative. offered by ihe bill on your table, you may rea

The Senate resumed, as in Committee of the sonably expect, taking into consideration the pre

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