tleman from Virginia, [Mr. HUNTER,] why not carry that system of analysis and induction into finance, which has been brought to bear so successfully upon science generally? I have given, I think, the true answer: finance is essentially practical; in all its operations analysis and induction are necessarily and incessantly at work.

[H. of R.

If

which have so long disturbed the prosperity and deranged
the business of the country, it is obvious that those evils
cannot be remedied effectually and permanently. If sim-
ple overtrading be the cause, that has not unfrequently oc-
curred, and has always readily yielded to the suggestions
of prudence and ordinary sagacity. Indeed, overtrading
never causes more than temporary embarrassment.
nothing affected our general system now but mere over-
trading; if our financial system were not radically and
deeply disordered, the discontents and distresses of the
country would long ere this have passed away
No one
has the assurance to assert a pretension of this kind.
Under the operation of a bad, disjointed, dislocated finan-
cial system, permanent prosperity cannot revisit the coun-
try. An apposite illustration of what I deem to be the
truths now laid down may be seen in the present condition
of England, to which reference is made in the President's
message.

With such views, I find no difficulty in determining where to look for guidance and direction in all questions connected with currency and business. There is no safety but in the lessons of past experience. And what is the voice which the experience of our country utters upon this important subject? If we examine our past history, we shall find that our financial system has, for the most part, uniformly worked well; and that nearly all our derange. ments and embarrassments have arisen from the obtrusive interference of politics and politicians. Legislation has always been necessary in order to give the country a suitable currency. When this has been effected, and the currency has been suffered to take its own course, and to be regulated by the usages and laws of trade practically established, and always understood by business men, nothing has ever interfered with or interrupted the steady progress of both currency and business, but some event, rarely occurring, extraordinary in its character and overwhelming and controlling in its influence. In the conflicts of our neutrality with foreign aggression; in the restrictions upon our commerce; and in the measure of war, which form a part of our past history, we find examples of such events. Aside from these, our prosperity has been uniform, except when checked by occasional and short-lived overaction. This latter is a state of things not of very frequent occurrence, which usually subsides rapidly under the unfailing operations of the laws of trade and the principles of a just political economy. With these exceptions, I repeat the important lesson derived from our past experience, that all our troubles and annoyances have originated in the unhal-country, constitute absolutely the whole that is material to lowed connexion of politics and business, for purposes of momentary triumph to the former, and with disaster to the latter.

We come to the great question which runs through the discussion of all the measures proposed to us at this extraordinary session. What is the cause of the embarrassments which have now so long afflicted the country?

We are told by the President, in his recent message, that the true cause is overaction. I object to this position, that, instead of being the assignment of a cause, it is simply a statement of the fact in another form. The country has suffered, and is still suffering, from overaction; that is, from overtrading and overspeculating. And the only question which can sensibly be asked or answered is, what has caused this overaction; to what is it attributable? Are we to seek its origin in the abandonment of those wholesome laws of trade, to which I have already referred, by the practical and sagacious business-men of the community, or is it to be found in the measures of the administration affecting the national currency? What induced the hordes of anxious speculators to precipitate themselves upon the great public domain of the West? What induced another class of adventurers to take advantage of the boon proposed by the Government, in the extraordinary, and, in some cases, most indecorous and servile scramble for the public moneys? What induced the unusual increase of banks, on a sudden, and in defiance of that cautious policy which had so long characterized the country in the asking and granting of bank charters? What induced the general rush into the business of trade and commerce, and the undue importation of foreign commodities? What induced the anomaly which we have all witnessed and wondered at an extravagant demand for every thing, at extravagantly high prices, and money at the highest and most ruinous rates?

Unless the true cause can be ascertained for the evils
VOL. XIV.-91

The President looks upon the state of things as substantially the same in both countries. "The causes of the revulsion in both countries have been substantially the same. Such is the language of the message. But, by a singular fatality, the President ventures to express a truth, within the compass of the same paragraph, which effectually overturns the fancied analogy in the causes of the revulsion in the two countries. "The most material differenco," (I quote the words of the message,) "between the results in the two countries has only been, that with us there has also occurred an extensive derangement in the fiscal affairs of the Federal and State Governments, occasioned by the suspension of specie payment by the banks." Why did not the President carry his thoughts one step farther; why did he not see that the causes which led to this suspension of specie payment, thereby producing the acknowledged "derangement in the fiscal affairs" of this

Here

the subject, and the whole difference between the revul-
sion here and that in England? The monetary system in
England has not, as a system, been affected at all.
the monetary system has been changed entirely. Or rather,
to speak more accurately, here we have been shifted from
one system to another-upon the explosion of one experi-
ment, betaking ourselves to another-until we have at last
arrived at the proposition immediately before us, the sub-
Treasury or divorce bill, under which we are to dispense
with all system. This is what is vaunted before us as the
great theorem or issue of modern times.

But, if the revulsion in England and in our own country
had been, as supposed by the President, substantially the
same, how happens it that, whilst he was busied in penning
his message, the revulsion in England should have subsi-
ded, and business have resumed its place? That such is
And no well-informed
the fact, all accounts now agree.
person can hesitate as to the cause of the embarrassments in
England, growing, as they notoriously did, out of the con-
nexion with American trade. The President, indeed, avers
in the message, "that the issues of paper credits put in
circulation in England by banks and in other ways during
the years 1834, 1835, and 1836, will show an augmentation
of the paper currency there, as much disproportioned to the
But the
real wants of trade as in the United States."
President gives no authority for this opinion. And it con-
flicts most glaringly with official, and, therefore, authentic,
statements, furnished by the Bank of England, and by all
the other banks of every description, upon this subject.
From these statements it appears that the whole amount of
circulation of the kind referred to in the year 1834 was
£28,568,000; in 1835, £28,519,000; and in 1836, £28-
875,000; showing an increase of circulation, in the three
years designated by the President, of only a little over
three hundred thousand pounds; whilst, in this country,
within the same period, the bills in circulation had increas-

H. OF R.]

Sub-Treasury Bill.

ed forty-five millions; and the loans one hundred and thirty-four millions. The difference thus strongly marked between the two countries arises from the fact already stated; a fact which cannot be too often repeated-that in England the financial system has not been affected as a whole; whilst in this country the financial system has been absolutely overturned. And hence has arisen the difference in the results between the remedies applied in the two countries. If we apply to a disordered and revolutionized currency a remedy, as suggested by the President, applicable only to a state of overaction, it will turn out to be inefficacious. We already see that such a remedy is utterly inefficient. The disorder remains. The taint is upon us. How can successful business be resumed without a sound currency and a healthful system of exchanges? How can the country go on without the vigor of a permanent and accredited financial system?

[Oct. 12, 1837.

country went on without interruption, except from occasional ill-judged speculations or overtrading, leaving no distinctive mark, except as matter of historical remembrance. In addition to this, and as confirmatory of it, another remark may be made, that the financial system was kept entirely detached from the politics of the country: the politicians interfered not at all with it; and its course was therefore an undisturbed one, answering the great purposes of all financial systems, benefiting the people, promoting industry, awakening well directed enterprise, and therefore reflecting credit upon the Government.

Immediately upon the close of the period embraced within the comments I have now submitted to the committee, a new order of things arose. The country was in a state of unequalled tranquillity in all its prominent interests. The excitements of party had been, and continued to be, animated and bristling: but the business of the The causes of the embarrassments of the country do then country was successfully pursued in all its accustomed force themselves upon us in a way not to be resisted. They channels. But, with a new administration, new men had are written all around us in sunbeams. They are neither found their way into the public councils. Adventurers to be evaded nor escaped from. They are impressed upon were numerous: the appetite for distinction, for office, but the country in broad lines from end to end. Every man of more especially for money, became unappeasable. Politibusiness in the land bears the marks of them. At morn- cians rose up in myriads of swarms. If the present moing, noon, and night, when we lie down and when we rise ment would not suffice to provide them with the claimed, up, they are ever and most disastrously present to us. They rewards and spoils of victory, the future was drawn upon; are distinctly traceable to the change, to the entire revolu- and partisanship scented its prey in every avenue and bytion, of which I have spoken, in our financial system. The path that led to game to be run down. Thus was the field bankruptcy of the Government, the bankruptcy of the of political aspiration immensely widened. Within the country, lie at the door of the politicians, who, for their great vortex of party politics were absorbed, one after anoown sinister and selfish purposes, have brought that sys-ther, all the great interests of the country. Nothing escaped tem, the currency and the business of the country, into the arena of political warfare. Here, in my estimation, is the root of the evil.

Look back at the experience of our past history, to which I have heretofore adverted, constituting the true test, in a special manner, of all financial changes. What do we learn in the pages that immediately precede those which are to record this new theorem of modern times, this entire disruption and scattering of a currency, which had carried the country along successfully and prosperously? I ask you, Mr. Chairman, to look back at the period of twelve years, which preceded the late administration, comprising the whole term of service of President Monroe, and that of my venerable colleague, [Mr. ADAMS.] In the year 1816, there were two hundred and forty-six banks, with a capital of nearly ninety millions of dollars, and a circulation of about sixty-eight millions. In 1820, there were 308 banks, with a capital, including the United States Bank, of one hundred and thirty-seven millions. In 1830, there were three hundred and thirty banks, with a capital of one hundred and forty-five millions, and a circulation of sixty-one millions. During the whole period, then, from 1816 to 1830, being fourteen years, there was an increase of eightyfour banks, with an increase of fifty-five millions of capital; of which thirty-five millions belonged to the United States Bank; but at the same time there was a diminution of circulation from sixty-eight down to sixty one millions.

Such was the state of the banking system under Mr. Monroe and Mr. Adams. At the commencement of this period there was great embarrassment all over the land, similar to that which now exists. In 1816, a national bank was chartered. In commencing the operations of that bank, there was much bad management, and the consequences were unfavorable to the business of the country : but these difficulties soon disappeared under the superior skill of new managers. And the whole period was marked by unusual commercial prosperity, although unfortunate cotton speculations, and the agitation of the tariff controversy, were distinctive features of it.

It is remarkable, too, that, during this period, no complaint whatever was uttered from any quarter against the currency or the banking system. The business of the

that could by any possibility minister to the hopes or the cupidity of politicians. And thus was it that the business interests, the financial systems, the moneyed institutions, gradually and successively fell before the destroyer. Each and all surrendered, or were trodden down beneath the tread of the political war-horse. In this way was prostrated the United States Bank. For the purposes which I have now indicated to the committee, were the public moneys of the United States wrenched from their legal depository, and thrown down at the feet of the politicians.

These events, the first in that train of measures which have led to the existing embarrassments of the country, occurred about four years ago. Against these measures, in their inception, my venerable colleague [Mr. ADAMS] raised his warning voice. Intimately connected as he had been with the preceding policy of the country, well might his judgment be taken as oracular. Unfortunately, it was disregarded and set at naught.

The

And what was the progress, what were the consequences of these measures; especially of the transfer of the public moneys to the new league or coalition of State institutions? A general movement was made to obtain a share in the division and distribution. The appeals which were made to the Secretary of the Treasury, to be made "fiscal agents" of the Government, are many of them spread out upon our legislative records; and they evince, in too many instances, a cringing servility, at war with all just ideas of republican dignity and independence. The removal was effected under the dictation of that extraordinary man who has but recently descended from the Presidency. public moneys were distributed throughout the country; and, under the repeated injunctions of the Treasury Department, founded upon the instructions of the President, which I shall not stop to collate or refer to more particularly, the chosen banks were directed to use those moneys for the public accommodation in every variety of way. And so were they used; they were carried into every branch of business, regular and speculative. They were absorbed in the speculations in the public lands; they formed the nucleus for the erection of new banks; they were sought after with avidity by partisans; they found their way wherever money can go, and for all purposes to

H. OF R.]

Sub-Treasury Bill.

of business steady and well-ordered, a revolution followed which disjointed every thing, diverting business from its fixed orbit, and giving a wild and erratic play to that headlong mania for speculation, which absorbed all and controlled all, until itself finally exploded. Nor is it to be concealed, nor can it be denied, because the records of this House bear the proof, that the politicians, the partisans, were most eager, most importunate in pursuit of those means of speculation.

Nor can it be irrelevant here to remind some members of the committee, especially the gentleman [Mr. PICKENS, of S. C.] who opened the debate upon the bill immediately before us with so much earnestness and vehemence, that, from the statement I have now made, it follows, most conclusively, that the tariff system is not to be held accountable or chargeable as the cause of the extraordinary surplus, so universally and so justly deplored. Such an opinion has been advanced, over and over again, and is relied upon as furnishing a stable reason for frittering away, in detail, the good effects contemplated by the celebrated compromise. I have already commented upon the facts, which show indisputably the impolicy of the attempt to interfere with the just operation of that compromise. That impolicy is still more convincingly manifested by the facts, now presented to the committee, which point to the true origin of the surplus revenue. The public domain has been the great field of speculation; and the excessive banking, consequent upon the removal of the deposites, and principally warmed into existence by that measure, has poured forth the overshadowing means by which that speculation was conducted.

I am still further fortified in the position I have taken, and the opinions I entertain concerning the causes of the embarrassments of the country, by a consideration of the effects of the immense importations of specie, which have been the theme of so much self-glorification. It is unnecessary here to inquire into the necessity for an ample specie basis for the circulating medium of the country. Such a basis is indispensable, and never can, without criminal neglect, be overlooked by any prudent and watchful administration of the Government. But the idea of forcing a circulation of specie in any one country, whilst the supply of the precious metals for all is extremely limited, cannot be sustained for a moment upon any sound notions of public economy. A circumscribed medium exclusively of specie may be imposed, and carried out perhaps, but it must be at the risk of sacrificing or overturning the great business interests of the country, and of throwing the limited business that may remain into the hands of a monopolizing few.

The excessive importations of specie by the last administration, at a time when the balance of trade was largely against us, and a very large foreign debt was outstanding, militated most strikingly against all the acknowledged laws of trade. And this, in connexion with the Treasury order or specie circular, as it has usually been termed, hastened the approach of that financial crisis, which, without the powerful and electric aid of these causes, might have been longer postponed, but, in all probability, could have been avoided. The drain of specie from the East deeply affected all the operations of business which are there concentrated; and the fountains of our whole system were thus broken up. Vast as have been the importations of specie from abroad, did that specie enter into the circulation of the country? Were the promises concerning it at all fulfilled? Have not those promises long been the byword and jest of the scorner? And are not the precious metals banished from among us so far as the purposes of circulation are concerned?

This was most certainly true long before the crisis arrived. Instead of enlarging the circulating medium of the country in any essential degree, the imported specie was

[Oct. 12, 1837.

employed most extensively in forming the basis of new and increased banking operations. And thus, what was probably well intended theoretically by the Government, operated to defeat the very object which the Government professed to have in view. We are not to forget, however, that this very rage for banking, which in this manner so sadly crossed the path of the late administration, grew up under the fostering and nurturing of its own measures. In this fact we have an illustration, that ought not to be lost upon us, of the extreme hazard which is always incurred by a violent and uncalled-for interfence with a subject so sensitive and delicate as the currency of a country.

I have now gone through, succinctly, the consideration I intended of the causes which have conspired to bring the I am unable country to its present disastrous condition. to avoid the conclusion-to my mind it is as ready as it is irresistible-that these causes have led directly to that overaction, which is the genuine manifestation or development of the disease with which the country is afflicted. And what has been the result? What has been the winding up of that long train of measures, violently entered upon, and energetically pursued, which must, in all time to come, hold up Andrew Jackson to the country as no ordinary man? The result is stamped upon the country in deep and broad traces. The winding up of this experiment of a new and better currency has ingulfed Government and people in one common bankruptcy. The causes, of which I have spoken, opened throughout the land a boundless field of credit, accessible through myriads of avenues to the lowest and obscurest spots. Every description of business felt the effects of this overshadowing creditto such a degree, indeed, that, during the period to which I have referred, the amount of all kinds of transactions has been estimated to transcend five hundred millions of dollars. And when, at length, the experiment ran out, and the catastrophe came, the country was found, and stil remains, with its commerce prostrated, industry at a stand, the banks unable to redeem their bills, and the Government rich only in unavailable means.

The Government and the people being thus alike embarrassed and paralyzed, it would seem to be the dictate of ordinary wisdom that they should make common cause, and breast themselves together against the storm. Espccially would it very naturally be expected of the Government that they should not abandon the people, and seek to find refuge and safety for themselves alone. Their measures having prostrated both in a common calamity, the country had a right to look for peculiar favor in any coutemplated schemes of relief. The measures which have brought about this deplorable state of things were never asked for by the people. They never petitioned for a change in the financial system of the country. They never even complained of the operation of that system. As far as their opinions and wishes can be gathered from the representations of their agents upon this floor, in this the House of the people, they were contented with things as they were. It is historically true, that all the remarkable and extraordinary measures on which I have commented, met, when proposed, the signal rebuke of the representatives of the people. The two measures most decisive, effective, and revolutionary in their character and tendencythe removal of the deposites, and the Treasury order, or specie circular-have never obtained any favor within these walls. They have been sustained, and the latter is still sustained, against the will of the people. Emphatically is ́ this true, and not to be denied.

With what face, then, can the Government seek relief, to the exclusion of the great mass of the country? Why shall those who have devised, counselled, advocated, and adopted the measures which have resulted in a depreciated currency, be relieved from the inequalities of that curren cy; whilst the people, who, to say the least, have been

passive in regard to those measures, are left alone to reap and enjoy the harvest of their bitter fruits?

seen it.

[H. or R.

If it exist, it can be shown by that which does not lie it is a matter of figures. I shall not follow the But it is said that two of the bills before us are specially steps of the gentlemen who have addressed the committee intended for the relief of the country: the one authorizing in this particular, by going into the details upon this suba further postponement of payment upon duty bonds; and ject. The task is irksome. I agree fully with most who the other to adjust the remaining claims upon the late de- have preceded me, that a clear case has not been made out posite banks. If there be relief in these bills, it is obvious by the Secretary. No one can doubt that the Treasury is to remark that it is extremely limited in its scope. But in an embarrassed condition: the mismanagement of the whose is the sole interest to be secured, if it can be secu- finances and the disruption of our whole system could not red, by these bills? Is it not the Government's? By but throw our exchequer into utter confusion. That is the pressing its debtors, the merchants and the Southwestern evil under which we are laboring. Confusion reigns banks, the Government may lose all; by granting an ex- through every department of finance and business. Hence tension of time, all may be saved. arises the unintelligible exhibit which has been made by the Secretary. In the deposite banks there remains a balance greater than the amount of the fourth instalment. Very many of the States could and would make an arrangement with those banks for their proportion of that instalment, which would be beneficial to the banks, satisfactory to the States, and tend to the relief of the Government. To those States which, from their relative position, could not enter into such arrangements, drafts, in the language of the Secretary, "drawn, but not yet paid, though payable," and therefore, in the view of the Government, equivalent to specie, would fully answer the purpose. In whatever light I regard this subject, it seems to me to be demanded, by every consideration that can enter into a sound and just policy, to pay over the fourth instalment to the States, even at the hazard of some inconvenience and even sacrifice.

The Committee of Ways and Means have reported three bills, in conformity with the recommendations of the Executive, and growing out of the relations of the Government to the disasters which have befallen the country. The first proposes to postpone the fourth instalment of deposite with the States; the second authorizes the issuing of ten millions of Treasury notes; the third is a bill to impose additional duties as depositaries on public officers. The operation of all these bills has distinct reference to the Government. The same committee also reported a resolution, declaring it inexpedient to charter a national bank." I was debarred from the expression of my opinions upon this proposition, after having risen to address the House, by the operation of the previous question-that convenient piece of machinery to check debate, but applied so only in this the freest Government in the world. That proposition is one of the three connected with the great question of the currency, to which our attention has been directed. I voted against it distinctly upon the ground of its being bald and abstract in its terms. I voted against it upon another ground-because it negatived the only wishes or opinions which have come before us by petition from the people. We have the sub-Treasury scheme suggested to us by the President; we have a new modelling of the deposite bank system presented by a member from Virginia, [Mr. GARLAND.] The proposition for a national bank finds its way to us only through numerous and respectful petitions. I am unwilling to thrust aside unceremoniously a proposition to which the people have invited our attention. I should be unwilling to dispose of any scheme, even that of the sub-Treasury, in so summary a manner. I would receive and entertain all of them; I would reject no one, until it was laid before us in proper form and features, that we might examine it in its practical details, and judge of it with precision. I know not that I should vote for a bill to charter a national bank. I have no constitutional difficulties in regard to it; but I should seek to have it well guarded and secured at all points, especially, as far as possible, against the machinations of partisan politicians-the root, the fruitful source, as I verily believe, of all the troubles that afflict the country.

But, Mr. Chairman, the administration having determined to shape their policy, under the new and extraordinary circumstances of the country, with special reference to themselves and to their own distinct interests, let us look at the measures suggested for our consideration.

We have a bill to postpone the fourth instalment of the surplus revenue. I opposed that bill in the committee. I shall record my vote against it, in whatever shape it may come up. In the present condition of the country, the payment of that instalment, amounting to nearly ten millions of dollars, would operate to that extent advantageously to the people. I am unable to see the necessity for the postponement. I have carefully examined the report of the Secretary of the Treasury on the finances; I have examined all the subsidiary and "verified" statements that have been laid before us from various quarters. If the deficiency supposed by the Secretary were susceptible of clear proof, that proof ought to be on our tables. I have not

The bill to authorize the issue of Treasury notes to the amount of ten millions I oppose; because I deem the proposition, if not unconstitutional according to the recently avowed opinion of General Jackson, certainly fraught with the greatest hazard, and of dangerous tendency as a money measure or experiment of the Government. It is a bad precedent to establish it has once only been resorted to in the history of the past, and then in the extraordinary emergency of war. It is a scheme which furnishes too great facility for money making to any administration. It is a power too easy to be perverted; and the exercise of it is inconsistent with the simplicity of republican institutions. Surrender this power as a matter of ordinary legislation; connect with it the proposed system of sub-Treasuries, designating the kind of currency which the Government is to demand, and you fix upon the country at once a Trea. sury bank in its worst form. I cannot shut my eyes upon the suggestion which has been made in another branch by a distinguished and now willing advocate of all these measures, that the Government ought to provide for an emis. sion of paper money, declaring his opinion at the same time that inconvertible paper does not constitute a suitable currency. I believe the same opinion has been avowed during the debate in this House. Such a proposition would carry us back at once to the old continental money: so monstrous a proposition shows most convincingly the dangerous career we have before us, in consequence of departing from a financial system that had been reared upon the foundation of a long and successful experience.

I have voted, sir, in favor of au amendment of the Treasury note bill, to authorize the Government to raise, by lean, such sum of money as the actual wants of the Treasury demanded. That is the mode of raising money which the constitution has designated. "Congress shall have power to borrow money on the cre-lit of the United States." I see no reason for departing from this plain requisition of the constitution. I sce every reason, in the avowed and obvious disposition of the Government to resort to experiments, why we should adhere strictly and guardedly to such a requisition. I repeat, sir, that I am willing to vote for any sum of money that shall be needed to relieve the Government from its embarrassments; but I am not willing to do so in any way but that which shall be clear, safe,