and arming the militia, and for calling them forth to execute the laws of the Union, suppress insurrections, and repel invasions, and to repeal the laws heretofore passed for those purposes; which was read twice, and committed to a Committee of the Whole. Mr. STEARNS Submitted the following resolution to amend the rules and orders of the House; which was read, and ordered to lie on the table: Resolved, That the following be added to the standing rules of the House, viz: There shall be a standing committee, consisting of — members, to be called "the Committee of the Revision of Bills." It shall be the duty of the said committee carefully to examine all bills which may be reported, before they are introduced into the House, to make verbal or technical alterations, or take the same into a new draught, if they shall think proper. But they shall not change the principles or provisions of any bill without the consent of the committee who shall have reported the same. The bill from the Senate "further extending the time for issuing and locating military land warrants, and for other purposes," was read twice, and committed to the Committee on the Public Lands. NATIONAL CURRENCY. Mr. CALHOUN, from the Committee on National Currency, reported a bill to regulate the currency within the United States of the gold coins of Great Britain, Portugal, France, and Spain, and the crowns of France and five franc pieces of Napoleon; which was read twice, and committed to a Committee of the Whole. Mr. CALHOUN also laid before the House the following letter from the Secretary of the Trea sury: TREASURY DEPARTMENT, March 19, 1816. SIR: I have the honor to acknowledge the receipt of your letter dated the 15th instant, making the following inquiries on behalf of the Committee on the National Currency: 1st. "Is it practicable or expedient, at present, to collect the dues of Government in gold, silver, and copper coins, Treasury notes, and notes of such banks as pay specie for their bills?" 2d. "If this be not practicable or expedient, at present, when ought an act directing the dues of Government to be so paid, to go into effect, and what ought to be the provisions of such an act?" 3d. "Would it be expedient, after the 1st of November next, or at any other time, to increase the duties on stamps on the notes of such banks as do not pay in specie?" 4th. "Are there any other measures that it would be expedient to resort to for that purpose?" As a brief consideration of the general subject of your letter will afford the best foundation for specific answers to the questions which have been proposed, I pray the indulgence of the committee in the adoption of that course. When the banks, during the Summer of 1814, suspended the payment of their notes in coin, the Treasury notes which had been issued, were manifestly incompetent, both in amount and credit, to constitute H. OF R. a substitute for the metallic currency. A declaration, therefore, at that time, that the Government would only accept, in payment of the revenue, gold and silver, Treasury notes or bank notes payable on demand in coin, would have been equivalent to a denial of the means for paying the duties and taxes, at the very crisis that rendered indispensable a strict enforcement of the obligation to pay them. Nor could such a declaration have been properly applied to the loans which tion in coin was not to be expected; a subscription the necessities of the Treasury required. A subscripgeneral purposes; and consequently a subscription in in Treasury notes could not yield any active aid for the local currencies of the several States must have the public supplies, as well as for discharging the public been contemplated as the chief resource for procuring engagements. Under a sense, therefore, of the necessity which seems, for a time, to have reconciled the whole nation to the suspension of payments in coin, the Treasury continued to receive bank notes, in satisfaction of every public claim and demand; and Congress, after a session of six months, adjourned on the 3d of March, 1815, without intimating any objection, or making any provision, upon the subject. The same state of things continued throughout the year 1815. In the annual estimates communicated to Congress, at the commencement of the present session, it was stated, that the aggregate amount which would probably be realized and received at the Treasury during 1815, from revenue and loans, might be placed at the sum of about $30,400,000. But the gross amount of Treasury notes issued and unredeemed in 1815, could not be averaged higher than $16,000,000; and the amount in actual circulation must be taken at a much less sum; for, whenever and wherever the Treasury notes rose to par, and above par, they were, for obvious reasons, withheld from the ordinary uses in to augment the issue of Treasury notes beyond the exchange. Nor was it in the power of the Treasury immediate demand for fiscal purposes. Treasury notes have not hitherto been regarded by the law as a substitute for the national currency, and the authority to issue them is only granted, as an auxiliary for supplying the occasional deficiencies of the revenue. In the New England States alone, the banks still professed to pay their notes upon demand in gold and silver; but, in fact, the issues of bank notes in that quarter have proved inadequate to meet the wants of the community; and the revenue is almost entirely collected in Treasury notes, which have been purchased at a considerable discount. It is certain, therefore, that neither Treasury notes, nor circulating coin, nor the notes of banks paying in coin, could furnish, in 1815, a sufficient medium, to satisfy the amount of the duties, taxes, and loans, for the year. But, it is important here to add, that while the interior of the country was as destitute of a currency of coin, as the cities and towns upon the Atlantic, the Treasury note medium was, in effect, monopolized by the commercial cities; and the local banks furnished all the means which the planter or the farmer could collect for the payment of his rent or his tax. During the year 1815, the effects of the late war upon public and private credit were still felt; and the extraordinary event, which involved Europe in a new conflict, threatened a continuance of the drain upon our gold and silver; to be augmented, according to a general apprehension, by the force of an unfavorable balance of trade. Under such circumstances, the res H. OF R. I National Currency. MARCH, 1816. payment to the public creditors; but even if that be not the case, the hazard will be slight, considering all the legislative precautions which it is proposed to adopt. Added to the metallic capital of the National Bank, the deposites of the revenue, collected in gold and silver, must be a sufficient basis for a circulation of coin; as the uses for the paper of the bank, extending throughout the nation, will be constant as well as uniform. Under these general impressions I have the honor to submit the specific answers to your inquiries, in the following form: toration of the national currency of coin could not cease to be desirable; but it must become more difficult in the accomplishment. The alternative issue of the measure deserved, therefore, the most serious consideration; and it was to be determined, not only upon views of fiscal interest and accommodation, but upon principles of national policy and justice. The consequence of rejecting bank notes, which were not paid on demand in coin, (if such payments were not thereby rendered general) must have been to put at hazard the collection of the revenue, in point of time and in point of product; to deteriorate (if not to destroy) the only adequate medium of exchange, adopted by the con1. That it be made by law the duty of the Secretary mon consent of the nation, in a case of extreme neces- of the Treasury to give public notice that, from and sity; and, in short, to shake the very foundations of after the 31st day of December next, it will not be lawprivate property. The powers of the Treasury Depart-ful to receive in payment to the United States, anyment were granted, for purposes contemplated by the thing but gold, silver, and copper coins, constituting Legislature in making the grant; but it is not believed, the lawful national currency; provided, that the Secthat a case attended with circumstances so extraordi-retary of the Treasury may, as heretofore, authorize nary, embracing interests so extensive, and involving and allow the receipt of the notes of such banks as consequences so important, was at any time anticipa- may pay their notes, on demand, in the lawful money ted by the Legislature; or that it could be properly of the United States. subjected to any other than the legislative agency. Having, therefore, made several ineffectual attempts to relieve the public embarrassments, it was deemed the duty of the department to repose, with confidence, upon the wisdom and authority of Congress, for the application of a remedy suited to the malady of the times. The period has arrived when such a remedy may be safely and surely applied. The opinion expressed in the Treasury report of the 6th of December last, is still however entertained, that the currency in coin cannot at once be restored; that it can only be restored through a gradual reduction of the amount, attended by an amelioration of the value of the existing paper medium, and that the measure of reform must originate with the State banks. It has been said, indeed, that those institutions have already begun the salutary work; that the amount of their discounts has been reduced; that the issues of their paper have been restricted; and that preparations are made for converting their capital of public stock into the mere legitimate capital of gold and silver. Public confidence must naturally follow these just and judicious arrangements; but the interposition of the Government will still be required, to secure a successful result. It must at all times be a delicate task to exact the payment of duties and taxes in gold and silver, before the Treasury is prepared, independent of any contingency, to give an assurance that the public creditors shall be paid in the same or an equivalent medium. If, however, a National Bank be now established, this assurance may be confidently given; and it is believed that the apprehension will prove unfounded, which suggests that the issue of bank paper will be increased, and consequently will depreciate by the operation of such an institution. A demand for the paper of the National Bank may diminish the demand for the paper of the State banks, but, after the restoration of the currency in coin, the whole issue of bank paper will be regulated by the whole demand; and the proportion of the issue to be enjoyed by the National Bank and the State banks, respectively, will be the subject of a fair competition, without affecting the public interests or convenience. If, therefore, the State banks have resumed the payment of their notes in coin, before the National Bank shall be organized, there will be no hazard of disappointment in promising a similar 2. That, from and after the same day, it shall not be lawful for the Secretary of the Treasury to authorize. or allow deposites of the revenue to be made, or to be continued, in any bank which shall not pay its notes, when demanded, in the lawful money of the United States. 3. That, from and after the same day, it shall be the duty of the Secretary of the Treasury to take legal measures for obtaining payment, in the lawful money of the United States, of all notes or sums on deposite, belonging to the United States, issued by, or deposited in, any bank which shall not then pay its notes and deposites, on demand, in the lawful money of the United States. 4. That, from and after the same day, the notes of banks and bankers shall be charged with a graduated stamp duty, advanced at least two hundred per cent. upon the present duty, without the privilege of commutation; saving, in that respect, all existing contracts: Provided, That if any banks or bankers shall, on or before the 1st day of November next, notify the Secretary of the Treasury that their notes will be paid in coin, upon demand, after the 31st of December ;" and if it be proved to his satisfaction that, after that day, payment was so made, then, with respect to such banks or bankers, the rate of duty and the privilege of commutation shall remain as now established by law. Although the success of these measures is not in any degree doubted, it may be proper to add, that if it ever shall become necessary to increase their force, provision might be made, under the Constitutional power of Congress, to subject all banks and bankers, failing to pay their notes, according to the terms of the contract, to a seizure of their estates and effects, for the benefit of their creditors, as in a case of legal bankruptcy. I cannot conclude this letter, without an expression of some solicitude, at the present situation of the Treasury. The State banks have ceased to afford any atcommodation for the transfer of its funds. The reve nue is paid (as already stated) in Treasury notes, where Treasury notes are below par; and the public engagements can only be satisfactorily discharged in Treasury notes, which are immediately funded at seven per cent. Where Treasury notes are above par, the local accumulation of bank credits is beyond the local demands, and the excess cannot be used elsewhere. Discontent and speculation are abroad; and all the MARCH, 1816. Duty on Stills-Tariff-Military Staff. estimates of the amount of the funded debt, created since the commencement of the late war, will probably fail, unless the wisdom of Congress shall effectually provide for the early restoration of an uniform National Currency. I have the honor to be, &c. A. J. DALLAS. Hon. J. C. CALHOUN, Chairman, &c. TAX ON STILLS. Mr. STRONG proposed to amend the bill by striking out the clause which imposes a duty of 25 per cent. ad valorem on imported woollen and cotton manufactures of all descriptions, and to substitute a provision imposing a tax of 33 per cent. on manufactures of cotton, and 28 per cent. on those of wool. This motion involving the question to what extent domestic fabrics shall be encouraged by protecting duties on foreign manufactures Mr. STRONG Ssupported his motion, and the expediency of making the duty on the imported articles higher than was proposed by the bill. Mr. LOWNDES rose and replied to Mr. STRONG on the question of extending the duty, taking a clear and comprehensive view of the subject of protecting duties generally; supporting the system proposed by the bill, and stating the motives which induced the Committee of Ways and Means to report a smaller duty on the articles named, than was recommended by the Secretary of the Treasury, &c. Mr. SMITH, of Maryland, commenced some remarks on the subject, but not anticipating that the question would be put to-day, and wishing to refer to some notes not by him, he moved that the Committee rise. An engrossed bill, entitled "An act to abolish the existing duties on spirits distilled within the United States, and to lay other duties in lieu of those at present imposed on licenses to distillers of spirituous liquors," was read the third time; and on the question, Shall this bill pass? it passed in the affirmative-yeas 118, nays 13, as follows: YEAS-Messrs. Adgate, Alexander, Archer, Atherton, Baker, Bassett, Bateman, Bennett, Betts, Birdsall, Blount, Boss, Bradbury, Brooks, Brown, Bryan, Cady, Calhoun, Champion, Chappell, Cilley, Clarke of N. Carolina, Clark of Kentucky, Clayton, Clenden nin, Comstock, Condict, Conner, Cooper, Crawford, Crocheron, Cuthbert, Darlington, Davenport, Desha, Edwards, Forney, Gaston, Gholson, Gold, Goodwyn, Grosvenor, Hahn, Hale, Hall, Hammond, Hardin, Hawes, Henderson, Herbert, Hopkinson, Huger, Ingham, Irving of New York, Jewett, Johnson of Kentucky, Kent, Kerr of Virginia, King of North Carolina, Langdon, Law, Lewis, Love, Lowndes, Lumpkin, Lyon, Maclay, Marsh, Mason, Mayrant, McCoy, McLean of Kentucky, McLean of Ohio, Middleton, Milnor, Moore, Moseley, Nelson of Massachusetts, Nel-ulate the tariff of duties. son of Virginia, Parris, Pickens, Pickering, Piper, Powell, Reed, Robertson, Root, Ross, Ruggles, Savage, Smith of Maryland, Smith of Va., Southard, Stearns, Strong, Sturges, Taggart, Tate, Taul, Taylor of New York, Taylor of S. Carolina, Telfair, Throop, Townsend, Tucker, Wallace, Ward of New York, Ward of New Jersey, Webster, Wendover, Whiteside, Wilcox, Wilde, Wilkin, Willoughby, William Wilson, Yates. NAYS-Messrs. Baer, Breckenridge, Burwell, Culpeper, Goldsborough, Hungerford, Johnson of Virginia, McKee, Newton, Randolph, Roane, Stanford, Vose. LIQUIDATION OF CLAIMS. The bill to provide for the adjustment of certain accounts, in which papers or vouchers have been lost, was withdrawn from the Committee of the Whole, to whom it had been referred; and the House proceeded to consider the bill. After a good deal of discussion on the principle as well as the details of the bill (to which sundry amendments were offered)-in which Messrs. JOHNSON of Kentucky, LOWNDES, PARRIS, GOLD, and others, supported the bill; and Messrs. PIT KIN, HUGER, HOPKINSON, and others, opposed itthe bill was ordered to be engrossed for a third reading. The House then, on motion of Mr. LOWNDES, went into a Committee of the Whole on the bill to repeal the duties on household furniture, and on gold and silver watches; to which no amendment being offered, the Committee proceeded to take up the bill to regulate THE TARIFF; The Committee then rose, reported the bill to repeal the tax on furniture and watches-which was ordered to be engrossed for a third readingand obtained leave to sit again on the bill to reg THE MILITARY STAFF. The House, on motion of Mr. JOHNSON, of Kentucky, resolved itself into a Committee of the Whole on the bill to organize a general staff for the Army. Mr. JOHNSON then entered into a detailed comparative view of the staff proposed by the bill with that which existed during the war, to show that the Military Committee had not recommended an extravagant staff, or one greater in proportion to the number of men retained on the Peace Establishment than was allowed and found necessary during the war. Mr. SMITH, of Maryland, followed Mr. JoHNSON in support of the general object of the bill, but regretted there was not a greater proportion of officers allowed for the Quartermaster's department, the value and necessity of whose serVices he enforced by a few remarks. The Committee then proceeded in the consideration of the bill, and adopted several minor amendments at the suggestion of Mr. JOHNSON, of Kentucky. A motion was made by Mr. TAYLOR, of New York, to strike from the bill the clause which provides for the retention of certain staff officers who had been provisionally retained by the President of the United States since the time of reducing the Army to the Peace Establishment. Mr. T. thought this clause interfered with the Constitutional power of the President and Senate which, having been read through, and taken up to fill offices. Although the officers alluded to by sections had been in the service, and had been passed on by the President and Senate, they were now to all intents private citizens, and this bill would legislate them into office again without allowing the President to act in the case. Mr. T. declared that his motion arose from no want of respect for the characters of the gentlemen referred to in the bill. Mr. JOHNSON, of Kentucky, said he thought, instead of the bill legislating those persons into office, the motion would legislate them out of office, and he was opposed to the latter legislation as much as to the former. He denied that they were reduced to the rank of private citizens, and asserted that they had been constantly in service. After some further remarks by Mr. J. to prove the impropriety of carrying those officers again before the Senate, and to establish the propriety of the clause as it stood in the bill MARCH, 1816. Colonel Tatham, and the value of the charts and maps which it was proposed to purchase for the use of the nation. The motion was supported also by Mr. CONDICT and opposed by Mr. HALL, and carried—yeas 48, nays 44. The bill was then ordered to be engrossed, and the House adjourned. THURSDAY, March 21. Public Lands, made a report; which was read, Mr. ROBERTSON, from the Committee on the and the resolution therein contained was concurred in by the House, as follows: Resolved, That it is inexpedient at this time to establish a land office for the sale of public lands at the town of Arkansas, in the Territory of MisMr. HULBERT said he would not sanction the souri, or at the town of Jackson, in the county of clause if he thought it susceptible of the construc- Cape Girardeau, in the same Territory. Mr. NELSON, from the Committee on the Judition given to it by Mr. TAYLOR; but the Presi- ciary, reported the bill from the Senate "to limit dent and Senate had already done their duty, and the right of appeal from the circuit court of the as those officers were now in office, and had been United States for the District of Columbia,” with so ever since their appointment, he could see no an amendment; which was read, and agreed to reason for going through the process again, or by the House; and the said amendment was ortroubling the Senate to repeat its former de-dered to be engrossed, and the bill read a third cision, &c. After a few words from Mr. PICKERING against the proposition time to-morrow. On motion of Mr. SMITH, of Maryland, the Mr. TAYLOR's motion was decided in the neg-House what course has been pursued by the War Secretary of War was directed to inform this ative. The Committee having gone through the Staff bill, proceeded, on motion of Mr. JOHNSON, to take up the bill to establish an additional military academy; which having been read Mr. PICKERING said it had occurred to him that provisions might be incorporated into this bill which would make it much more useful, by extending it to naval as well as military young men; and as West Point would, in his opinion, be a proper situation for the instruction of both, he had prepared a substitute for the present bill, which with permission he would read. Mr. P. then offered, as an amendment to the bill, a substitute, embracing in detail the view substantially stated by him; which was received without objection, and subsequently the House ordered it to be printed. No other motion being made, the Committee rose, and reported the bills with their several amendments; and The House proceeded to consider the amendments to the general staff bill; which were successively agreed to. An ineffectual motion was made by Mr. BETTS to reduce the number of judge advocates proposed from three to one. Mr. JOHNSON had made an unsuccessful motion, in Committee, to add a section to the bill authorizing the President of the United States to employ five thousand dollars in the purchase of certain military charts and surveys owned by William Tatham. Mr. NELSON, of Virginia, now renewed this motion, which he supported with zeal and feeling on the ground of the Revolutionary services of Department as to the payment of interest in cases where bills have been drawn on the Department and which bills it was not in the power of the money actually received by a public agent, Secretary to pay for want of funds. for Ways and Means were instructed to inquire into On motion of Mr. FORSYTH, the Committee of the expediency of increasing the annual allow ance to Ministers of the United States to foreign Consuls of the United States at foreign ports. nations, and of allowing annual salaries to the An engrossed bill, entitled "An act to repeal enues for defraying the expenses of Government the act entitled 'An act to provide additional revand maintaining the public credit, by laying duties on household furniture and on gold and silver watches," was read the third time, and passed. An engrossed bill, entitled "An act for the li quidation of certain claims, and for other purposes," was read a third time, and passed. MILITARY STAFF. The engrossed bill to organize a general staff for the Army, was read the third time. Mr. TAYLOR, of New York, after repeating his objections to that clause of the bill which provides for retaining certain officers (deemed by him not to be in service) without the further sanction of the President and Senate, and the necessity he was therefore under of voting against a bill whose objects he approved, if the clause was not modified-and for the purpose of having the bill made conformable to his views on this point, he moved that it be recommitted to the Military Commit HALL, ROOT, and HARDIN, respectively supported the recommitment on the ground of objection to the section of the bill, yesterday adopted, to appropriate five thousand dollars for the purchase of military maps and charts. Mr. NELSON, of Virginia, opposed the recommitment, and supported that provision of the bill which was the ground of the latter objection, which turned entirely on the merits of Colonel Tatham, the owner of the maps which it was contemplated to purchase, and the value of the charts, &c. The motion to recommit the bill was agreed to. THE TARIFF. The House again resolved itself into a Committee of the Whole, on the bill to regulate the duties on imports, &c. Mr. STRONG withdrew the motion he made yesterday to increase the duty on imported cottons and woollens; and Mr. CLAY then moved to amend the bill by increasing the duty on imported cottons from twenty-five to thirty-three and a third per cent. Mr. Ć. made this motion, he said, to try the sense of the House as to the extent to which it was willing to go in protecting domestic manufactures-assuming that there was no difference of opinion on the propriety of such protection, but only on the degree to which encouragement should be carried. He proceeded to advocate a thorough and decided protection by ample duties, and supported his motion at some length. Mr. SMITH, of Maryland, replied to Mr. CLAY, and argued against increasing the duty beyond the amount recommended in the bill. Mr. S. took a very wide view of the subject; discussing separately and fully the effect which would be produced by the proposed duties on commerce, on manufactures, on agriculture, and on the revenue, and stating incidentally some objections to the bill, and to the recommendations of the Secretary of the Treasury. He was in favor of protecting domestic fabrics, but differed from Mr. CLAY as to the extent of that protection. Mr. LOWNDES followed in reply to Mr. CLAY, and in reply also to Mr. SMITH's objections to the report of the Committee of Ways and Means. He entered into an ample and particular defence of the system reported on the subject by the committee; when the question on Mr. CLAY's motion was decided in the negative-ayes 51, nays 43. Mr. PICKERING then, with the view of substituting an ad valorem duty, moved to strike out that clause of the first section which provides that all cotton cloths, (except nankeens,) the original cost of which at the place whence imported shall be less than twenty-five cents per square yard, shall be taken to have cost twenty-five cents per square yard, and shall be charged with duty accordingly. This motion gave rise to further debate, in which the expediency of protecting duties and their extent were discussed at much length. It Was supported by the mover, and opposed by Messrs. LOWNDES, STRONG, and TAYLOR, and negatived-only eight or ten rising in its favor. H. of R. Mr. CLAY then renewed his motion in a modified shape, by proposing to extend the duty on cotton goods to thirty per cent. in lieu of twentyfive. Mr. C. advocated this motion still more at length than the first-replying to many of Mr. SMITH's arguments, and entering largely into the general question of the expediency of affording protection to our own manufactures. Mr. ROBERTSON replied to Mr. CLAY, and answered generally the objections which had been urged by Mr. C. and others to the report of the Committee of Ways and Means, which he defended as proposing a just and ample protection to domestic manufactures. After Mr. R. concluded, the Committee rose, obtained leave to sit again, and the House adjourned. FRIDAY, March 22. Mr. BASSETT submitted the following resolutions: Resolved, That a Naval Academy be established at Washington, to consist of- - professors and teachers, at which all the midshipmen in the service of the United States shall be instructed, when not in actual service. That the Secretary of the Navy be required to adjust a proper plan, to select a proper site, to cause a just estimate of the expense, and report thereon in the first week of the next session of Congress. ary shall be Resolved, That an able teacher be provided for each seventy-four and forty-four in commission, whose saleach ship, as above, a double portion at least of midshipmen, and their time shall be equally divided between ship duty and study. No midshipman shall be allotted to any of the smaller vessels until he has been two years at least in service. dollars. There shall be allotted to Resolved, That number of apprentices be entered annually to the United States, to be maintained, and instructed in naval architecture, draughting, drawing, all the branches of mathematics, geometry, and navigation. Their instruction to close with two years service at sea, as carpenter, in a vessel of the United States. After a few remarks from Mr. BASSETT, in which he quoted the examples of various European countries, in support of his motion, the resolutions were agreed to. On motion of Mr. ORMSBY, the Committee of Ways and Means were instructed to inquire into the expediency of increasing the compensation now allowed by law to the collectors of the internal revenue of the United States. The SPEAKER laid before the House a report of the Secretary of the Treasury, respecting the valuation of lands, lots, dwelling-house, and slaves, in Pennsylvania, made in obedience to the resolu tion of the House of the 7th instant, which was ordered to lie on the table. Mr. BURWELL, from the Committee of Ways and Means, reported a bill making appropriations for the support of the Military Establishment of the United States, for the year 1816; which was read and committed to the Committee of the Whole upon the subject of revenue. |