foresight, have brought forward your favorite meas-
ure, with a fair prospect of success, when every
other had failed. By not taking this course, you
have lost the only prospect of establishing a national
bank.
Nor has your course, in my opinion, been fortu-
nate for the country. Had it been different, the
currency question would have been decided at the
called session; and had it been decided then, the
country would this day have been in a much better
condition: at least the manufacturing and commer-
cial section to the north, where the derangement of
the currency is felt the most severely. The south is
comparatively in an easy condition.

every deposite, was kept, as a sacred trust, to be safely returned to the depository, when demanded, was extended to banks of discount, down to the time of the formation of our governinent, with but slight modifications. With this impression, it is not at all extraordinary, that the deposite of the revenue in banks for safe keeping, and the receipt of their notes in the public dues, should be considered, a matter of course, requiring no higher authority than a treasury order: and hence a connection, with all the important questions belonging to it and now considered of vast magnitude, received so little notice, till public attention was directed to it by its recent rupture. This total separation from the system, in which we now find ourselves placed, for the first time, authorises and demands, that we shall investigate freely and fully, not only the consequences of the connection, but all the questions growing

ment they then so successfully urged against it. They, no, we (for I was then, as now, irreconcileably opposed to the measure) charged against it, and proved what we charged, that it placed the purse and the sword in the same hands; that it would be the source of boundless patronage and corruption, and fatal in its consequences to the currency of the country; and I now avail myself of these, and all other objections, then urged by us, in as full force against this substitute, as if you were again to rise in your places and repeat them now; and of course, as so many arguments, in effect, in favor of the bill; and on their strength I claim your vote in its favor, unless, indeed, still stronger objections can be urged against it. I say stronger, because time has proved Such are the difficulties that stand in the way the truth of all that was then said against the mea- of the substitute at the very threshold. Those besure now proposed to be revived by this substitute. yond are vastly greater, as I shall now proceed to What was then prediction is now fact. But what- show. Its object as I have stated, is to revive the ever objections have been, or may be urged against league of state banks, and the first question pre-out of it, more especially those of a constitutional the bill, however strong they may appear in argu-sented for consideration is, how is this to be done character; and I shall in obedience to this demand ment, remain yet to be tested by the unerring test of how is the league to be formed how stimulated return to the question from which this digression time and experience. Whether they shall ever be into life when formned; and what after it has been has carried me so far. realized must be admitted even by those who may revived, would be the true character of the league have the greatest confidence in them, to be at least or combination? To answer these questions we uncertain; and it is the part of wisdom and pru- must turn to its provisions. dence, where objections are equally strong against two measures, to prefer that which is yet untried, to that which has been tried and failed. Against this conclusion, there is but one escape..

It may be said that we are sometimes compelled, in the midst of the many extraordinary circuinstances in which we may be placed, to prefer that, which is of itself the more objectionable, to that which is less so; because the former may more probably lead, in the end, to some desired result, than the latter.To apply the principle to this case, it may be said that the substitute, though of itself objectionable, is to be preferred, because it would more probably lead to the establishment of a national bank, than the bill which you believe to be the only certain remedy for all the disorders that affect the currency. I admit the position to be sound in principle, but it is one exceedingly bold and full of danger in practice, and ought never to be acted on, but in extreme cases, and where there is a rational prospect of accomplishing the object ultimately aimed at. The application, in this case, I must think, would be rashness itself. It may be safely assumed, that the success of either, whichever may be adopted, the bill or the substitute, would be fatal to the establishment of a national bank. It can never put down a successful measure to take its place; and, of course, that which is most likely to fail, and re-plunge the country into all the disasters of a disordered currency, is that which would most probably lead to the restoration of a national bank; and to prefer the substitute on that account is, in fact, to prefer it because it is the worst of the two. But are you certain that another explosion would be followed by a bank? We have already had two; and it is far more probable, that the third would impress, universally and indelibly, on the public mind, that there was something radically and incurably wrong in the system which would blow up the whole concern, national bank and all.

It provides that the secretary of the treasury shall select twenty-five specie paying banks, as the fiscal agents of the governinent, all to be respectable and substantial, and that the selection shall be confirined by the joint vote of the two houses. It also provides, that they shall be made the depositories of the public money, and that their notes shall be receivable in the dues of the government; and that in turn, for these advantages, they shall stipulate to perform certain duties, and comply with various conditions, the object of which is, to give to the secretary of the treasury full knowledge of their condition and business, with the view to supervise and control their acts, as far as the interest of the government is concerned. In addition to these, it contains other and important provisions, which I shall not enumerate, because they do not fall within the scope of the objections, that I propose to urge against the measure.

Have we then the right to make the bargain proposed? Have we the right to bestow the high priviliges, I might say prerogatives, on them of being made the depositories of the public revenue, and of having their notes received and treated as gold and silver in the dues of the government and in all its fiscal transactions? Have we the right to do all this in order to bestow confidence in the banks, with the view to enable them to resume specie payments? What is the state of the case? The banks are deeply indebted to the country, and are unable to pay; and we are asked to give them these advantages, in order to enable them to pay their debts. Can we grant the boon? In answering this important question, I begin with the fact, that our government is one of limited powers. It can exercise no right but what is specifically granted; nor pass any law but what is necessary and proper to carry such power into effect. This small pamphlet (holding it up) contains the constitution. Its grants of power are few and plain and I ask gentlemen to turn to it, and point out the power, that authorizes us to do what is proposed to be done, or to show that, to pass this substitute, is necessary to carry any of the granted powers into effect. If neither can be shown, what is proposed, cannot be constitutionally done; and till it is specifically pointed out, I am warranted in believing, that it cannot be shown.

Now I ask what does all this amount to? What but a proposal on the part of the government to enter into a contract or bargain, with certain selected state banks, on the terms and conditions contained. Have we the right to make such a bargain is the first question; and to that, I give a decided negative, which I hope to place on constitutional Our reason is often confounded by a mere name. grounds, that cannot be shaken. I intend to discuss An act, in the minds of many, may become of doubtit, with other questions growing out of the connec-ful constitutional authority, when applied to a bank. tion of the governinent with the banks, as a new which none would for a moment, hesitate to proquestion for the first time presented for considera-nounce grossly unconstitutional, when applied to an tion and decision. Strange as it may seem, the individual. To free ourselves from this illusion, I questions growing out of it, as long as it has existed, have never yet been presented nor investigated in reference to their constitutionality. How this has happened, I shall now proceed to explain, preparatory to the examination of the question, which I have proposed.

ask, could this government constitutionally bestow on ind viduals, or a private association, the advantages proposed to be bestowed on the selected_banks, in order to enable them to pay their debts? Is there one who hears me, who would venture to say, yes, even in the case of the most extensive merchant or The union of the government and the banks was mercantile concern, such as some of those in New never legally solemnized. It originated shortly after York, or New Orleans, at the late suspension, the government went into operation, not in any legal whose embarrassments involved entire sections in disIf I may be permitted to express an opinion, I enactment, but in a short order of the treasury de- tress? But, if not, on what principle can a discriminawould say, you have pursued a course on this sub-partent of not much more than a half a dozen of tion be made in favor of the banks? They are local ject unfortunate both for yourselves and country. lines, as if it were a mere matter of course. We institutions created by the states for local purposes, You are opposed both to the league of banks, and the thus glided imperceptibly into a connection, which composed, like private associations, of individual citi sub-treasury. Yo: prefer a national bank; and was never recognized by law till 1816, (if my nem- zens, on whom the acts of the state cannot confer a regard as the only safe and certain regulator of ory serves,) but which has produced, more impor-particle of constitutional right under this constitution, the currency, but consider it, for the present, out of tant after consequences, and has had a greater con- that does not belong to the humblest citizen. So far the question, and are therefore compelled to choose trol over the destiny of this country, than any one from it, if there be a distinction, it is against the between the other two. By supporting the substi- of the mighty questio..s, which have so often and banks. They are removed farther from the control tute, you will be held responsible for all the mischief deeply agitated the country. To it may be traced, of this government than the individual citizens, who, and disasters that may follow the revival of the pet as their seminal principle, the vast and extraordinary by the constitution, are expressly subject to the bank system, as it has been called, with the almost expansion of our banking system, our excessive im- direct action of this government in many instances; certain defeat of your first and cherished choice; port duties, unconstitutional and profuse disburse- while the state banks, as constituting a portion of and those you oppose will reap all the benefits of ments, the protective tarid, and its associated sys- the domestic institutions of the states, and resting the power, patronage and influence, which it may tem for spending what it threw into the treasury, on their reserved rights, are entirely beyond our place in their hands, without incurring any portion followed in time by a vast surplus which the utmost control; so much so, as not to be the subject of of the responsibility. But that is not all. The suc- extravagance of the government could not dissipate, a bank upt law, although the authority to pass one cess of the substitute would be the defeat of the bill, and finally, by a sort of retributive justice, the ex- is expressly granted by the constitution. which would, in like nanner, place on you the res-plosion of the entire banking system, and the preponsibility of its defeat, and give those you oppose, sent prostrated condition of the currency, now the all the advantage of having supported it without any subject of our deliberation. of the responsibility, that would have belonged to How a measure, fraught with such important conit, had it been adopted. Had a different cours been sequences should at first, and for so long a time taken-had you joined in aiding to extend the cus- should have escaped the attention and the investigatody of the laws over the public revenue, in the tion of the public, deserves a passing notice. It is hands of the Executive, where your own acts have to be explained by the false conception of the enplaced it, and for which you, of course, are respon- tire subject of banking, which at that early period sible, throwing the blame at the same time on those, universally prevailed in the community. So erroto whom you attribute the present disordered state neous was it, that a bank note was then identified of the currency, the burthen of the responsibility, in the unind of the public with gold and silver, and you would have stood ready to profit by events. If a deposite in bank was regarded, as under the most the sub-treasury, contrary to your anticipation, suc- safe and sacred custody, that could be devised. The ceeded, as patriots, you would have cause to rejoice in the unexpected good. If it failed, you would have the credit of having anticipated the result, and might then after a double triumph of sagacity and

original impression, derived from the bank of Ams-
terdam, where every note, or certificate in circula-
tion, was honestly represented by an equal and spe-
cific quantity of gold or silver in bank, and where

On what possible ground, then, can the right in question be placed, unless, indeed, on the broad principle that these local institutions, intended for state purposes, have been so extended and have so connected themselves with the general circulation and business of the country, as to effect the interest of the whole community, so as to make it the right and duty of congress to regulate them; or, in short, on the broad principle of the general welfare? There is none other, that I can perceive: but this would be to adopt the old and exploded principle, at all times dangerous, but pre-eminently so at this time, when such loose and dangerous conceptions of the constitution are abroad in the land. If the argument is good, in one case, it is good in all similar cases. If this government may interfere with any one of the domestic institutions of the states, on the ground of promoting the general welfare, it may with oth

ers. If it may bestow privileges to control them, it, fate of the measure. The executive will be bound, ment from the banks. Previous to that period, it was
may also appropriate money for the same purpose; to protect, by the intervention of its constitutional an abstract question, with no practical bearing; as
and thus a door might be opened to an interference right, the portion of power clearly allotted to that much so as is now the constitutional right of admit-
with state institutious, of which we of a certain sec- department by that instrument, which would make ting Louisiana into the Union. Things are now al-
tion ought at this time to be not a little jealous. it impossible for it to become a law, with the exist- tered. The connexion is dissolved; and it has be-
The argument might be pushed much farther. ing division in the two houses.
come a practical question of the first magnitude.
We not only offer to confer great and important pri-
The mover of the substitute assumed as a postu-
vileges on the banks to be selected, but, in turn, ask
late, that this government had a right to receive in its
them to stipulate to comply with certain conditions,
dues, whatever it might think proper. I deny the
the object of which is to bring thein under the super-
position in toto. It is one, that ought not to be as-
vision and control of this government. It might be
sumed, and cannot be proved, and which is opposed
asked, where is the right to purchase or assume such
by powerful objections. The genius of our constitn-
supervision, or control? It might be repeated, that
tion is opposed to the assumption of power. What-
they are state institutions, incorporated solely for
ever power it gives is expressly granted; and if
state purposes, and to be entirely under state control,
proof were wanted, the numerous grants of powers
and that all supervision on our part is in violation of
far more obvious and apparently much more safe to
the rights of the states. It might be argued that
be assumed than the one in question, would afford it.
such supervision or control, is calculated to weaken
I shall cite a few striking instances.
the control of the states over their own institutions,
and to render them less subservient to their peculiar
and local interests, for the promotion of which they
were established; and too subservient to other, and,
perhaps conflicting interests, which might feel but
little sympathy with those of the states. But I for-
bear. Other, and not less urgent objections claim
my attention. To dilate too much on one, would
necessarily sacrifice the claim of others.

I have not yet exhausted my constitutional objec.
tions. I rise to higher and to broader, applying
directly to the very essence of this substitute. I
deny your right to make a general deposite of the
public revenue in a bank. More than half of the
errors of life may be traced to fallacies originating
in an improper use of words; and among not the
least mischievous is the application of this word to
bank transactions, in a sense wholly different from
its original meaning. Originally it meant a thing
placed in trust, or pledged to be safely and sacredly
kept, till returned to the depositor, without being
used by the depository, while in his possession. All If any powers might be assumed, one would sup-
this is changed when applied to a deposite in bank. pose, that of applying money to pay the debts of the
Instead of returning the identical thing, the bank is government, and borrowing it to carry on its opera-
understood to be bound to return only an equal value; tions would be among them;-yet both are expressly
and instead of not having the use, it is understood to provided for by the constitution. Again, to congress
have the right to loan it out on interest, or to dispose is granted the power to declare war and raise armies
of it as it pleases, with the single condition, that an and navies; yet the power to grant letters of marque
equal amount be returned, when demanded, which and reprisal and to make rules for the regulation of
experience has taught is not always done. To place, the army and navy are not left to assumption, as ob-
then, the public money in deposite, in bank, without vions as they are, but are given by express grant.
restriction, is to give the free use of it, and to allow With these and other instances not less striking,
them to make as much as they can out of it, be- which might be added, it is a bold step to assume,
tween the time of deposite and disbursement. Have without proof, the far less obvious power of the
we such a right? The money belongs to the people, government receiving whatever it pleases in its dues
as money. Such an assumption would be in direct
conflict with the great principle which the state
rights party, with which the senator (Mr. Rives)
classes himself, have ever adopted in the construction
of the constitution. But, if the former cannot be as-
sumned, it would be in vain to attempt to prove that
it has been granted, or that it is necessary and pro-
per to carry any of the granted powers into effect.
No such attempt has been made, nor can be, with
success. On the contrary, there are strong objections
to the power, which, in my opinion, cannot be sur-
mounted.

I next object, that whatever may be the right to enter into the proposed bargain, the mode in which it is proposed to make it is clearly unconstitutional, if I rightly comprehend it. I am not certain that I do; but, if I understand it rightly, the plan is, for the secretary of the treasury to select twenty-five-collected from them for specific purposes,-in state banks, as described in the substitute, which are to be submitted to the two houses to be confirmed or rejected, by their joint resolutions, without, the approval of the president; in the same mode, as they would appoint a chaplain, or establish a joint rule for the government of their proceedings.

which they have a general interest, and for that
only: and what possible right can we have to give
such use of it to certain selected corporations? I
ask for the provision of the constitution that author-
izes it. I ask, if we could grant the use, for similar
purposes, to private associations or individuals? Or
if not to them, to individual officers of the govern-
ment; for instance, to the four principal receivers
under this bill, should it pass? And if this cannot
be done, that the distinction be pointed out.

In acting on the joint resolution, if what I suppose be intended, each house would have the right, of course, to strike from it the naine of any bank and insert another, which would in fact vest in the two houses the uncontrolable right of making the selec If these questions be satisfactorily answered, I tion. Now, if this be the inode propose, as I infer shall propound others still more difficult. I shall from the silence of the mover, it is a plain and pal- then ask, if the substitute should becoine a law, and pable violation of the constitution. The obvious in- the twenty-five banks be selected, whether they tention is, to evade the veto power of the executive, would not in fact be the treasury? And if not, I which cannot be, without an infraction of an express would ask, where would be the treasury? But if provision of the constitution, drawn up with the ut- the treasury, I would ask, if public money in bank most care, and intended to prevent the possibility of would not be in the treasury? And if so, how can evasion. It is contained in the 1st article, 7th sec-it be drawn from it to be lent for the purpose of trade, tion, and the last clause, which I ask the secretary speculation, or any other use whatever, against an to read : express provision of the constitution? Yes, as express as words can make it. I ask the secretary to read the 1st article, 9th section, and the clause next to the last.

["Every order, resolution, or vote, to which the concurrence of the senate and house of representatives may be necessary, (except on a question of adjournment) shall be presented to the president of the United States, and before the same shall take effect, shall be approved by him, or being disapproved by him, shall be repassed by two-thirds of the senate and house of representatives, according to the rules and limitations prescribed in the case of a bill."]

"No money shall be drawn from the treasury, but in consequence of appropriations made by law; and a regular statement and account of the receipts and expenditures of all public money shall be published froin time to time.'

If once admitted, it would lead by consequence to a necessary interference with individual and state concerns never contemplated by the constitution. Let us, for instance, suppose that, acting on the assumption of the senator, the government should choose to select tobacco as an article to be received in payment of its dues, which would be as well entitled to it as any other product, and in which the senator's constituents are so much interested. Does he not see the consequences? In order to make its taxes uniform, which it is bound to do by the constitution, and which cannot be done unless the medium in which it is paid is so, the government would have to assume a general control over the great staple in question; to regulate the weight of the hogshead or package; to establish inspections under its own officers in order to determine the quality, and whatever else might be necessary to make the payments into How clear! How explicit! No money to be the treasury uniform. So likewise, if the still greater drawn from the treasury but in consequence of ap-staple, cotton, be selected. The weight of the bale, Nothing can be more explicit or full. It is no propriations made by law; that is, the object on the quality of the cotton, and its inspection would all more possible to evade the executive veto, on any which the expenditure is to be made, to be designat- necessarily fall under the control of the government; joint vote, than in the passage of a bill. The veto ed by law, and the sum allotted to effect it, specified; and does not the senator see that the exercise of a was vested in him not only to protect his own pow- and yet we have lived in the daily and habitual vio-power that must lead to such consequences-conseers, but as an additional guard to the constitution. Ilation of this great fundamental provision, from al-quences so far beyond the sphere assigned to this ain not the advocate of executive power, which I most the beginning of our political existence to this government by the constitution, must be unconstituhave been often compelled to resist of late, when day. Behold the consequences! It has prostrated tional? Nor does the objection extend only to these extended beyond its proper limits, as I shall ever be and engulphed the very institutions which have en- and other staple articles. It applies with equal, if prepared to do when it is. Nor am I the advocate of joyed this illicit favor, and tainted, above all other not greater force, to receiving the notes of state legislative or judicial. I stand ready to protect all, causes, the morals and politics of the whole country. banks, as proposed by the substitute, in the dues of within the sphere assigned by the constitution, and Yes, to this must be traced, as one of the main causes, the government and the management of its fiscal conto resist them beyond. To this explicit and com- the whole system of extensive revenue, excessive ex-cerns. It must involve the government in the necesprehensive provision of the constitution, in protec-penditure, and excessive surpluses; and to them, sity of controlling and regulating state banks, as this tion of the veto, there is but a single exception, re-especially the last, the disastrous overthrow of the substitute abundantly proves, as well as the whole sulting, by necessary implication, from another por- banks and the currency, and the unexampled dege-history of our connection with them; and it has been tion of the instrument, not less explicit, which neracy of public and private morals, which have fol-shown that banks are, at least, as far removed from authorizes each house to establish the rules of its lowed. We have suffered the affliction, may the the control of this government as the cultivators of proceedings. Under this provision the two houses blessing, which follows chastisement, when its jus- the soil, or any other class of citizens. To this I have full and uncontrolable authority within the tice is confessed, come in due season. might add another objection; not less strong, that for limits of their respective walls, and over those sub- But I take a still higher ground. I strike at the the government to receive and treat bank notes as ject to their authority, in their official character. To root of the mischief. I deny the right of this govern- money in its dues, would be in direct conflict, in its that extent, they may pass joint votes and resolu-inent to treat bank notes as money in its fiscal trans-effect, with the important power conferred expressly tions, without the approval of the executive; but actions. On this great question, I never have before on congress of coining money and regulating the vabeyond that, without it, they are powerless. cominitted myself, though not generally disposed to lue thereof; but as this will come in with more proThere is in this case special reasons why his ap- abstain from forming or expressing opinions. In all priety in answer to an argument advanced by the proval should not be evaded. The president is at instances, in which a national bank has come in senator from Massachusetts, (Mr. Webster,) I shall the head of the administrative department of the question, I have invariably taken my ground, that if now state his argument and reply to it. government, and is especially responsible for its the government has the right to receive and treat good management. In order to hold him responsi- bank notes as money, it had the right, and was bound ble, he ought to have due power in the selection of under the constitution, to regulate them, so as to its agents, and proper control over their conduct. make them uniform and stable as a currency. The These banks would be by far the most powerful and reasons for this opinion are obvious, and have been influential of all the agents of the government, and so often and fully expressed on former occasions, that ought not to be selected without the concurrence of it would be useless to repeat them now: but I never gold and silver coins, there will be but little difference the executive. If this substitute should be adopted, examined fully the right of receiving, or made up my between him and myself. To that extent the govern and the provision in question be regarded such, as I mind on it, till since the catastrophe in May last, ment has a clear and unquestionable right by express consider it, there can be no doubt what must be the which, as I have said, entirely separated the govern-grant; but if he goes farther, and intends to asser t

He asserted again and again, both now and at the extra session, that it is the duty of the government not only to regulate, but to furnish a sound currency. Indeed, it is the principai argument relied on by the senator in opposition to the bill, which he says abandons this great duty. Now, if by currency be meant

that the government has the right to make bank notes into the system anew, is the question? This is the weights, and will lead the way from the first. Who a currency, which it is bound to regulate, then his task. the others may be is uncertain; this will depend proposition is identical in effect, though differently The mover tells us, that it must be the work of mainly upon his good will and pleasure. It may expressed, with that of the senator from Virginia, the government. He says that it is bound to aid be put down as certain, whoever they may be, that (Mr. Rives,) and all the arguments I have urged the banks to resume payments; and for that pur- they will be powerful and influential, and not unagainst it are equally applicable to his. I hold, on pose ought to hold out to them some adequate in-favorable to his interest or aggrandizement. But my part, that the power of the government on this ducement. He tells us, that they have been long the mischievous effect will not be limited to this subject is limited to coining money and regulating its preparing and had made great efforts, but can go death-like struggle, in which so many must fall and value, and punishing the counterfeiting of the cur- no farther; have rolled the round, huge rock almost be crushed, that might otherwise weather the storm. rent coins; that is, of the coins made current by law, to the summit, but unless the government put forth The forced resumption, for such it will be in effect, the only money known to the constitution. It is time its giant arm, and give the last push, it will recoil would be followed by wide spread desolation. It to make a distinction between money, or currency, and rush down the steep to the bottom, and all past is easy to sink to suspension, but hard to return to if you please-between that which will legally pay labor be lost. Now, what is this adequate induce- resumption. Under the most favorable circumdebts, and mere circulation, which has its value from ment? What this powerful stimulus, which it is stances, and when conducted most leisurely and its promise to be paid in the former, and under which proposed the government should apply, in order to cautiously, the pressure must be severe; but, if classification, bank notes as well as bills or promisory enable the banks to accomplish this herculean task? coerced or precipitated by bankrupt laws or tempnotes of individuals fall. These are all in their na-The substitute shall answer. tations such as this, it will be ruinous. To make it ture private and local, and cannot be elevated to the safe and easy must be the work of time. Govern level currency, or money, in the fiscal transactions of ment can do but little. The disease originates in government, without coming into conflict, more or excessive indebtedness, and the only remedy is less, with the object of the constitution in vesting the payment or reduction of debts. It is estimated, very power in congress, which I shall now proceed that when the banks suspended payments, the community was indebted to them the enormous sum of $475,000,000. To reduce this within the proper limits, is not the work of a few days, and can be but little aided by us. The industry and the vast resources of the country, with time, are the only remedies to be relied on for the reduction; and to these, with the state legislature, and the public opinion, the resumption must be left. To understand the subject fully, we must look a little more into the real cause of the difficulty.

to show..

It proposes to fix the 1st of July next for the period of resumption; and as the inducement to resume, it proposes to select twenty-five of the most respectable and solid, out of the resuming banks to be the depositories of the public moneys, and the fiscal agents of the government, as has been already It will hardly be questioned, that the object was stated. It also proposes, and this is the stimulus, to fix a standard in order to furnish to the union a the essence of the whole,-to make the notes of currency of uniform and steady value, and was such banks as may resume on or before that day therefore united in the same sentence with the rel-exclusively receivable in the public dues. Here is ative power to fix the standard of weights and a quid pro quo; something proposed to be done, for measures, the objects being similar. Now, if our which something is to be given. We tell the banks experience has proved any thing, it has amply plainly, if you resume, we, on our part, stipulate to shown that so long as the government is connected make twenty-five of you our fiscal agents and dewith the banks, and their notes received in its trans- positories of the revenue; and we further stipulate actions, as money, so long it is impossible to give that those who resume by the time fixed, shall have This enormous debt was incurred in prosperous any thing like stability to the standard of value; the exclusive privilege for erer of having their notes times. The abundant means of the bauks, from and that the power of coining, and regulating the receivable in the dues of the government, in com- the surplus revenue and a combination of other coins, becomes in a great measure a mere nullity.mon with gold and silver. If the banks perform causes, induced them to discount freely. This Every dollar issued in bank notes, when it is made their part, we shall be bound in honor and good increased the circulation, and with its increase, its the substitute for money, drives out of circulation faith to perform ours. It would be a complete con- value depreciated and prices rose proportionably. more or less of the precious metals; and when tract, as obligatory as if signed, sealed, and deliv- With this rise, enterprize and speculation seized the issue becomes exorbitant, gold and silver al- ered. Such is the inducement. the whole community, and every one expected to most entirely disappears, as our experience at this The next question is, will it be adequate? Yes, make a fortune at once; and this in tuin gave a time proves. The effects are analogous to alloying abundantly adequate. The battery is strong enough new impulse to discounts and circulation, till the or clipping the coin, as far as stability of standard to awaken the dead to life; the consideration suffi- swelling tide bursted its barriers and deluged the is concerned; and it would be not less rational to cient to remunerate the banks for whatever sacri- land. Then began the opposite process of absorbsuppose, that such a power on the part of individ-fice they may be compelled to make, in order to ing the excess. If it had been possible to return uals, would be consistent with a uniform and stable resume payment. It is difficult to estimate the it back to the banks, the sources from which it currency, than to suppose the receiving and treat- value of these high privileges, or prerogatives, as I flowed, through its debtors, the speculating, entering bank notes as a substitute for money by the might justly call them. They are worth millions. prising, and business portion of the community, government, would be. The only check or remedy If you were to enter into a similar contract with the mischief would have been in a great measure is to restrict them to their proper sphere, to circn- an individual, I doubt not, that he could sell out in avoided. But circulation had flowed off into other late in common with bills of exchange or other open market for at least thirty, forty, or fifty mil-reservoirs; those of the moneyed men and bankprivate and local paper, for the convenience of lions of dollars. I do then the mover the justice ers, who hoard when prices are high, and buy when business and trade. So far from such a course op- to say, that his means are ample to effect what he they are low. The portion thus drawn off and erating injuriously on the people, or from being proposes. As difficult as is the work of resump-held in deposite, either in bank or the chests of liable to the charge of forming one currency for the tion,-and difficult it will turn out to be when individuals, was as ellectually lost, as far as the people and another for the government, as has been tried,-the inducement will prove all sufficient. debtors of the banks were concerned, as if it bad so often and with such effect repeated, it is the But the resumption, however desirable, may be been burnt. The means of payment was thus divery reverse. Government by refusing to receive purchased too dearly; and such would prove to be minished; prices fell in proportion, and the pressure bank notes, as it is bound to do, would in fact fur- the case, should the project succeed. Not only is increased, as they fell. Though the amount in nish a choice to the people, to take either money or the offer too great, but the mode of effecting it is circulation be greatly reduced, yet the banks are notes at their pleasure. The demand of the gov-highly objectionable. Its operation would prove afraid to discount, lest on resumption, the hoarded ernment will always keep a plentiful supply of the not less disastrous than the bargain has been shown mass of deposites held by individuals or other former in the country, so far as to afford the people to be unconstitutional, which I shall now proceed banks, should be let loose, and, in addition to what a choice, while the opposite would expel the money to establish. might be put into circulation should discounts be and leave no option to them but to take bank notes The offer will have a double effect. It will act made, would cause another inundation to be folor worse, as at present. as a powerful stimulus to resumption, but will act lowed by another suspension. How is this diffiI have now shown how it is proposed to form the at the same time with equal force to excite a strug-culty to be safely surmounted, but by unlocking league of banks, and have presented the constitu-gle among the banks, not only to resume them- the hoarded means? And how is that to be done, tional impediments that stand in the way. These selves, but to prevent others from resuming. The without deciding the currency question? This is are numerous and strong; so much so, that they reason is clear. The advantage to each will in- the first and necessary step. That done, all will be ought to be irresistible with all, except the latitu-crease, as the number of the resuming banks de- | able to calculate, and determine what to do. The dinous in construction; but I cannot expect they creases; and of course, the great point of contest will produce their full effect. I know too well the among the strong will be to restrict the proffered force of long entertained impressions, however prize to the smallest number. The closer the moerroneous, to be sanguine-how strongly the mind nopoly the greater the profits. In this struggle, a rebels against the expulsion of the old and the ad- coinbination of few powerful and wealthy banks, mission of new opinions. Yet, in this case, where the most respectable and solid, as designated in the we clearly see how gradually and silently error substitute, will overthrow and trample down the crept in under the disguise of words, applied to residue. Their fall will spread desolation over the new and totally different ideas, without exciting land. Whatever may be the fate of others in this notice or alarm; and when we have experienced desperate contest, there is one, in relation to which such deep disasters in consequence of parting from no doubt can be entertained: I refer to the United the plain intent and meaning of the constitution, I States Bank of Pennsylvania, a long name and a cannot but hope that all who believe that the suc misnomer; and which, for the sake of brevity, but cess of the government depends on a rigid adhe-with no personal disrespect to the distinguished in rence to the constitution, will lay aside all previous impressions, taken up without reflection, and give to the objections their due weight.

period of inaction and uncertainty would cease, and that of business revive. Funds that are now locked up, would be brought again into operation, and the channels of circulation be replenished in the only mode that can be done with safety. Thus thinking, I am now and have been from the first in favor of an early decision, and adverse to all coercion, or holding out temptation to resume; leaving the disease to the gradual and safe operation of time, with as little tempering as possible. In the mean time, I hold it to be unwise to cease discounting, and to adopt an indiscriminate system of curtailment. Its effects are ruinous to the business of the country, and calculated to retard, rather than dividual at the head, I shall call Mr. Biddle's bank. to accelerate a resumption. The true system I That, at least, will be one of the winners-one of would say, would be to discount with business pathe twenty-five to whom the prize will be assigned. per as freely as usual, and curtail gradually on I come now to the next point, to show how this Its vast resources, its wealth and influential con-permanent debts. The former would revive busileague is to be revived or stimulated into life. Till nexions, both at home and abroad, the skill and ness, and would increase the debts to the bank less this can be done, the substitute, should it become a ability of the officer at its head, and, what is less than it would increase the ability of the community law, would be a dead letter. The selection is to be honorable, the great resource it holds, in the notes to pay them. made for specie paying banks. None but such can of the late United States Bank, of which more than receive the public deposites, or have their notes re-six millions have been put into circulation, in vioceived in the dues of the government. There are lation, to say the least, of a trust, constituting more none such now. The whole banking system lies than five-sixths of all its circulation, and which it inanimate; and must be vivified before it can be is not bound to pay,-with the still greater amount re-united with the government. No one is bold on haud, making in the whole more than twentyenough to propose an union with this lifeless mass. How then is the vital spark to be revived? how the breath of life, the promethean fire, to be breathed

six millions, and which may be used the same way,
if not prevented, would place it beyond all doubt
among the victors. He starts without proper

Having now shown how this league, or combination of banks is to be formed and revived, with the difficulties in the way, it remains to determine, what will be the true character and nature of the combination when formed. It will consist of state banks retaining their original powers, that of discounting and all, without being in the slightest degree impaired. To these the substitute proposes to add important additions; to receive their notes

as gold and silver in the public dues; to give them either, under the severe penalties of the bill, which in the form of patronage, it exercises almost unlimincreased or diminished. the use of the public deposites, and to organize and prohibits the touching of the public money, except ited control. Just as the revenue increases or diBut admit for a moment, that neither the separablend the whole into one, as the fiscal agent of the on warrants or drafts, drawn by those having au- minishes, almost in the same proportion, is patronage But the danger which an excited imagination angovernment, to be placed under the iminediate su- thority, in due form, and for the public service. pervision and control of the secretary of the treasury. Now what does all this amount to? Shall I ticipates herealter from the bill would exist in sober tion nor the connection would have any sensible efname the word-be not startled; a bank-a gov-reality under the substitute. There it would re-fect to increase or diminish the revenue; and that ernment bank, the most extensive, powerful and quire neither fancy nor conjecture to create one. it would be of the same amount, whether the bill or This substitute It would exist with all its faculties and endowments substitute should be adopted; yet, even on that supdangerous, that ever existed. would be the act of incorporation; and the privi- couplete; discount, deposites, and all;-with which position, the patronage of the latter would be an liges it confers, so inuch additional banking capital, immense means, guided by a central and directing hundred fold greater than the former. In estimating increasing immensely its powers, and giving it an head, and blended and united with the government, the amount of patronage of any measure, three parunlimited control over the business, and exchanges so as to form one great mass of power. What a ticulars must be taken into the calculation; the numcontrast with the bill! How simple and harmless ber of persons who may be effected by it; their of the country. The senator trom Virginia (Mr Rives) was right the one, with its four principal receivers, twice as influence in the community, and the extent of the I begin with the in supposing that this new trial of the experiment many clerks, and five inspectors, compared with this control exercised over them. It will be found on would be made under very dillerent circunstances complex and mighty engine of power! And yet comparison, that the substitute combines all these from the first, and would have a very different ter- there are many, both intelligent and patriotic, who elements in a far greater degree, than the bill, as I The bill provides, as has been stated, for four mination. That too, like this, was a bank-a go- oppose the bill and support the substitute, on the shall now proceed to show. principal receivers, eight or ten clerks, and a suitable vernment bank, as distinguished from the late bank, ground that the former would give more patronage number. These would constitute to which it was set up, as a rival, and was at the and power than the latter! Ilow strange and wonSo far from being true, the very fact of the separa-number of agents to act as inspectors, making in the time constantly so designated in debate. But the derful the diversity of the human mind! circumstances now are indeed different-very different, and so would be the result of the experiment. tion of the government from the banks, provided for whole, say 25 individuals. This bank would not be the same rickety concern as in the bill, would, of itself, be the most decisive blow the only additional officers to keep and disburse the the former. That ended in anarchy, and this would that could be given against government patronage; public money. The substitute, in addition to the and the union of the two, the most decisive in its officers now in service, provides for the selection of When their notes are received in the public of 25 banks, to be taken from the most powerful and in despotism. I will explain. The former failed not so much in consequence of favor. the adverse circumstances of the times or any essen- dues, as cash, and the public money deposited in their influential, and which would have, on an average, at tial defect in the system, as from the want of a head-vaults, the banks become the allies of the govern- the least, 100 officers and stockholders each, making a common sensorium, to think,-to will,-and de- ment on all questions connected with its fiscal ac- in the aggregate, 2,500 persons, who would be dicide, for the whole, which was indispensably no- tion. The higher its taxes and duties, the greater rectly interested in the banks, and of course, under cessary to ensure concert and give unity of design its revenue and expenditure; and the larger its sur-the influence of the government. and execution. A head will not be wanting now. plus, the more their circulation and business, and, of Mr. Biddle's bank will supply the defect. His course, the greater their profit; and hence on all would be not only one of the resuming banks, as I questions of taxation and disbursements, and the have shown, but would also be one of the 25 to be accumulations of funds in the treasury, their interselected. If there should be the temerity to omit it,est would throw them on the side of the governAll this is reversed, when separated. The higher the present project would share the fate of its prede- ment and against the people. Mr. Biddle's bank at the head of those excluded, would be an overmatch for the selected, in the taxation and disbursements, and the larger the skill, capital and power; and the whole league would surplus, the less would be their profits; and their in-, inevitably be overthrown. But if selected, the posi-terest in that case, would throw them with the people, tion of his bank in league would be certain. Its vast and against the government. The reason is obvious. capital, its extensive connections, its superior author-Specie is the basis of banking operations; and the ity, and his skill, abilities and influence, would place greater amount they can command, the greater will it at the head, to think and act for the whole. The be their business and profits; but when the governothers would be as dependent on his, as the branches ment is separated from them and collects and pays of the late bank were on the mother institution. away its dues in specie instead of their notes, it is The whole would form one entire machine, impelled clear that the higher the taxes and disbursements, by a single impulse, and making a perfect contrast and the greater the surplus in the treasury, the more the less will be left as the basis of their operations; with its predecessor in the unity and energy of its specie will be drawn from the use of the banks and operations. and, consequently, the less their profit. Every dolness four-fold at least; and hence a regard to their lar withdrawn from them would diminish their busiown interest would inevitably place then on the side to which I have assigned them.

cessor.

Nor would its fate be less dissimilar. Anarchy was inscribed on the first from the beginning. Its deficiency in the great and essential element, to ensure concert, was radical and could not be remedied. Its union with the government could not supply it, nor avert its destiny. But very different would be the case of the present. Add its intimate union with the government, for which the substitute provides, to its other sources of power, and it would become irresistible. The two, government and bank, would unite and constitute a single power; but which would gain the ascendency;-whether the government would become the bank, or the bank the government, is neither certain nor material; for whichever it might be, it would form a despotic money-cracy, (if I may be permitted to unite an English and a Greek word,) altogether irresistible.

As to the relative influence of the officers and the selected banks over the community, every impartial man must acknowledge, that the preponderance cers provided for in the bill, and the officers and would be greater on the side of the latter. Admitting the respectability of the receivers and other offistockholders of the banks to be individually the same, still the means of control at the disposition of the former, would be as nothing compared in that of the latter. They could not touch a cent of public money. Their means would be limited to their salary, which would be too small to be felt in the community. Very different would be the case with the officers and stockholders of the banks. They, of ail persons, are by far the most influential in the community. A greater number depend on them for accommodation and favor and the success of their business and prospects in life, than any other the banks connected with the governinent. class in society; and this would be especially true of

side? What value shall be put on the public depotheir notes, as cash, by the government? What on sites in the banks? What on the receivability of their connection with the government, as their fiscal agent, which would give so great a control over the exchanges and business of the country? How many millions shall these be established at, and how insignificant must the paltry sum of $30,000 or $40,000 appear to those countless millions held under the provisions of the substitute at the pleasure of the government!

It only remains now to compare the extent of the over the two, in order to complete the comparison, control that may be exercised by the government be strikingly on the same side. The whole amount and here again the preponderance will be found to The effects on the politics of the country would of expenditure under the bill would not exceed be great and salutary. The weight of the banks $30,000 or $40,000 annually at the very farthest; To would be taken from the side of the tax consumers, and this constitutes the whole amount of control where it has been from the commencement of the which the government can exercise. There would government, and placed on the side of the tax payers. be no perquisites, no contracts, jobs or incidental This great division of the community necessarily gains. The offices and salaries would be all. grows out of the fiscal action of the government. that extent, those who may hold them, would be Take taxation and disbursement together, and it will dependent on the government, and thus far they may always be found that one portion of the community be controlled. How stands the account on the other pays into the treasury, in the shape of taxes, more that another receives back more than it pays. The than it receives back in that of disbursements, and It is not a little surprising, that the senator from former are the tax payers, and the latter the consuVirginia (Mr. Rives) whose watchful jealousy could mers,-making the great, essential, and controlling detect, as he supposed, the embryo of a government division in all civilized communities. If, with us, bank in the bill, should overlook this regular incor- the government has been thrown on the side of the Out of the consumers, as it has, it must be attributed to its alporation of one by his own substitute. slender materials of treasury warrants and drafts to liance with the banks, whose influence has been, in Having now finished the comparison as to the repay public creditors, or transfer funds from place to consequence, at all times steadily and powerfully on place, as the public service night require, and four that side. It is to this mischevions and unholy alprincipal receivers to keep the public money, he has liance that may be traced almost all the disasters that conjured up, with the aid of a vivid imagination, a have befallen us, and the great political degeneracy lative patronage of the two measures, I shall next future government bank, which he told us, with the of the country. Hence the protective systein; hence compare them as fiscal agents of the government; utmost confidence, would rise like a cloud, at first its associated and monstrous system of disburse- and here let me say, at the cutset, that this discusas big as a hand, but which would soon darken all ments; hence the collection of more money from the sion has corrected an error, which I once entertainthe horizon. Now, it is not a little unfortunate for people than the government could require; hence the ed. I had supposed, that the hazard of keeping the his confident predictions, that these seminal princi- vast and corrupting surpluses; hence legislative and public money under the custody of officers of the ples from which the bank is to spring, have all ex- executive usurpations; and finally, hence the pros-government, would be greater, than in bank. The isted from the commencement of our government in tration of the currency and the disasters which give senators from New Hampshire and Connecticut, full force, except the four receivers, without show-rise to our present deliberations. Revive this fatal (Messrs. Hubbard and Niles) have proved from the ing the least tendency to produce the result he an- connection; adopt this substitute, and all this train record, that the hazard is on the other side; and that ticipates. Not only ours, but every civilized go- of evils will again follow with redoubled disasters we have lost more by the banks, than by the collectvernment has the power to draw treasury warrants, and corruption. Refuse the connection; adopt this ing and disbursing officers combined. What can be and transfer drafts; nor has the power in a single in-bill, and all will be reversed, and we shall have some done to increase the security ty judicious selection stance terminated in a bank. Nor can the fact, that prospect of restoring the constitution and the coun- of officers, and proper orginization, is strongly illus the money is to be kept by receivers, contribute in try to their primitive simplicity and purity. The trated by the facts stated by the chairman (Mr. The public funds in their effect of the refusal on the patronage of the govern- Wright,) in his opening speech; that in the war the least to produce one. hands will be as much beyond the control of the exe- ment would be great and decisive. Burke has wisely department, there has been no loss for 15 years,— cutive, as it was in the vaults of the banks. But, to said, that the "revenue is the state in modern times." from 21 to '36,-on an expenditure certainly not shorten discussion, I would ask, how can there be a Violence and coercion are no longer the instruments less than $100,000,000. I take some pride in this bank without the power to discount or to use the of government in civilized communities. Their result of an organization, which I originated and esdeposites? and out of which of the provisions of the reign is past. Every thing is now done by money. It tablished when secretary of war against the most bill could the treasury, by any possibility obtain is not only the sinue of war, but of politics; over which, formidable opposition.

As to the relative expense of the two agencies, | be, where it exclusively performed the function of timate; but it would, I suppose, be ample to set that of he bill, as small as it is, we are to judge ap- circulation, and where each individual must keep a down ten millions to that head, which would leave pearances, is the greatest; but if by facts, the sub- portion to meet his daily demands. This is so obvi- upwards of twenty millions annually, as the profits stitute would be much the nost so, provi ed we ous, that I shall not undertake to illustrate it. derived from banking privileges over and above a charge it with all the advantages, which the banks But the superiority of the bill over the substitute fair compensation for the capital invested, which would derive from their connection with the govern- would not be limited only to a more favorable pro- some body must pay, and which must ultimately fall ment, as ought in fairness to be done, as the whole portion between specie and paper. It would have on the industry and business of the country. But ultimately comes out of the pockets of the people. another important advantage that cannot be well this enormous expansion of the system is not astonIn a single particular the banks have the advan-over-estimated; it would make a practical distinc-ishing; so great is the stimulus applied to its growth. tage as fiscal agents. They would be the more con- tion between currency and circulation, -between the Ingenious men of other ages, devoted themselves in venient. To this they are entitled, and I wish to currency of the country, and private and local circu- vain to discover the art of converting the baser mewithhold from them no credit, which they may just-lation, under which head bank paper would be com- tals into gold and silver; but we have conferred on ly claim. prehended. The effects would be, to render a gene-a portion of the community, an art still higher-of The senator from Virginia (Mr. Rives) appeared ral explosion of the circulation almost impossible. converting paper to all intents and purposes, into the to have great apprehension, that the collection of the Whatever derangements might occur, would be local precious metals; and ought we to be surprised, that public dues in specie might lead to hoarding. He and confined to some one particular commercial an article so cheap to the manufacturers, and so dear may dismiss his fears on that head. It is not the ge- sphere; and even, within its limits, there would be to the rest of the community, should be so greatly nius of modern and civilized governments to hoard; a sound currency to fall back on, not partaking of over supplied, and without any reference to the inand if it were, the banks will take care, that there the shock, and which would greatly diminish the interest, or to the wants of the community? shall be no extraordinary accumulation of cash in the tensity and duration of the distress. In the mean If we are to believe the senator from Virginia, and treasury. Pass the bill, and I under-write, that we time, the general business and finances of the coun- others on the same side, we owe almost all our imshall never have again to complain of a surplus. It try would proceed, alinost without feeling the de-provements and prosperity to the banking system;would rarely, if ever in peace and settled times, ex- rangement. and if it should fail, the age of barbarism would again ceed three or four millions at the outside. Nor is his With a few remarks on the comparative effects of return. I had supposed that the bases of our pros apprehension that hoarding of specie would lead to the two measures on the industry and business of the perity were our free institutions; the wide spread war, less groundless. The danger is in another quar-country, I shall conclude their comparison. What and fertile region we occupy, and the hereditary inter. War is the harvest of banks, when they are has been said on their relative effects on the curren- telligence and energy of the stock, from which we connected with government. The vast increase of cy, goes far to decide the question of their relative are descended; but it seems, that all these go for norevenue and expenditures, and the enormous public effects on business and industry. thing, and that the banks are every thing. I make loans, which necessarily enure mainly to their advan- I hold a sound and stable currency to be among the no war on them. All I insist on is, that the governtage, swell their profits in war to the utmost limits. greatest encouragements to industry and business ment shall separate from them, which I believe to be But separate thein from government, and war would generally; and an unsound and fluctuating one, now indispensable, for the reasons I have assigned, both then be to thein, a state of famine, for reasons which expanding and now contracting, so that no honest now and formerly. But I cannot concur in attribu must be apparent after what has been said, which man can tell what to do, as among the greatest dis- ting to them our improvements and prosperity. That would throw their weight on the side of peace and couragements. The dollar and the eagle are the they contributed to give a strong impulse to industry. against war; just as certainly, as I have shown, that measure of value, as the yard and the bushel are of and enterprise in the early stages of their operation, the separation would throw it on the side of tax pay-quantity; and what would we think of the incorpo- I doubt not. Nothing is more stimulating than an ers, and against the tax consumers. ration of companies to regulate the latter-to expand expanding and depreciating currency. It creates a I come now to the comparison of the effects of the or contract, or shorten or lengthen them at pleasure, delusive appearance of prosperity, which puts every two measures on the currency of the country. In with the privilege to sell by the contracted or short-thing in motion. Every one feels as if he was growthis respect, the senator from Virginia (Mr. Rives)ened, and buy by the expanded or lengthened? Is ing richer, as prices rise, and that he has it in his seemed to think, that his substitute would have a it not seen that it would place the whole industry power, by foresight and exertion, to make his forgreat superiority over the bill; but his reasons were and business of the country under the control of such tune. But it is the nature of stimulus, moral as well to me wholly unsatisfactory. If we are to judge companies? But it would not more certainly effect as physical, to excite at first, and to depress afterfrom experience, it ought to be pronounced to be the it, than a similar control possessed by the money in- wards. The draught, which at first causes unnatuworst possible measure. It has been in operation but stitutions of the country, over the measure of value.ral excitement and energy is sure to terminate in twice (each for but a few years) since the com- But I go further, and assert confidently, that the ex- corresponding depression and weakness; nor is it mencement of the government; and it has so hap-cess of paper currency, as well as its unsteadiness, is less certain that the stimulus of a currency, expandpened, that the only two explosions of the currency unfavorable to the industry and business of the coun- ing beyond its proper limits, follows the same law. occurred during those periods. But, without relying We have had the exhileration, and the depression on these disastrous occurrences. we have seen has succeeded. We have had the pleasure of getenough to satisfy the most incredulous that there are ting drunk, and now experience the pain of becomgreat and radical defects in our bank circulation, ing sober. The good is gone and the evil has sucwhich no remedy heretofore applied, has been able I hold that specie and paper have each their pro- ceeded; and on a fair calculation, the latter will be to remove. It originates in the excess of paper, per sphere; the latter for large and distant transac-found to be greater than the former. Whatever imcompared to specie, and the only effective cure is to tions, and the former for all others; and that the pulse the banking system was calculated to give to increase the latter and reduce the former; and this nearer our circulation approaches gold and silver, our improvement and prosperity, has already been the substitute itself impliedly acknowledges by pro- consistently with convenience, the better for the in- given; and the reverse effects will hereafter follow, posing a remedy that would prove wholly inopera-dustry and the business of the country. The more unless the system should undergo great and radical tive. It proposes that, after a certain period inen- specie the better, till that point is reached. When changes; the first step towards which, would be the tioned, none of the banks to be selected, should is- attained, it would combine in the greatest possible adoption of the measure proposed by this bill. sue notes under ten dollars. The effects would degree, soundness and facility, and would be favoraclearly be, not a diminution of the circulation of ble to the productive classes universally; I mean small notes, but a new division of the banking busi- men of business, planters, merchants, and manufacness, in which the issue of large notes would fall to turers, as well as operatives. It would be particuthe lot of the selected banks and the small to the larly favorable to the south. Our great staples are others, without restricting, in the least, the aggre- cash articles every where; and it was well remarkgate amount of paper circulation. ed by the senator from Mississippi, (Mr Walker,) But what the substitute would fail to do, the bill at the extra session, that we sold at cash prices and would effectually remedy. None doubt, but the se- brought at paper prices; that is, sold low and bought paration from the banks would greatly increase the high. The manufacturing, commercial and naviga- How the question will be decided, is acknowproportion of specie to paper; but the senator from ting interests would also feel its beneficial effects. It ledged to be doubtful, so nearly are the two houses Virginia (Mr. Rives) apprehends, that its operation would cheapen productions and be to manufacturers supposed to be divided; but whatever may be its would be too powerful; so much so, in fact, as to in lieu of a protective tariff. Its effects would be to fate now, I have the most perfect confidence in its destroy the banks. His argument is, that specie enable them to meet foreign competition, not by final triumph. The public attention is roused The would be always at a premiuin, and that it would be raising prices by high duties, but by enabling them subject will be thoroughly investigated, and I have impossible for the banks to do business, so long as to sell as cheap or cheaper than the foreigner, which no fears but the side I support, will prove to be the that was the case. His fears are groundiess. What would harmonize every interest, and place our man-side of truth, justice, liberty, civilization, and moral he dreads would be but a temporary evil. The very ufactures on the most solid basis. It is the only and intellectual excellence. fact, that specie would bear a premium would have mode by which the foreign market can ever be the double effect, to diminish paper circulation, and commanded; and commanded it would be, with increase the importation of specie, till an equilibrium a sound and moderately expanded currency. between the two would be restored, when they Our ingenuity, invention, and industry are equal to would be at par. At what point this would be ef- any people; and all our manufacturers want, is a March 17. The senate met, and, after the readfected, is a little uncertain; but the fear is, that with sound currency and an even chance, to meet compe-ing of the journal, adjourned, to attend the funeral our decreasing revenue, instead of the specie being tition with success any where, at home or abroad. of the hon. Timothy Jarvis Carter, late a represenincreased to excess, it would not be increased suffi- But with a bloated and fluctuating paper circulation, tative from the state of Maine. ciently to give the desired stability to the currency. this will be impossible. Among its many drawIn this connection, the senator urged an objection backs, it levies an enormous tax on the community. against the bill, which I regard as wholly ground- I have already stated, that the community is estiless. He said, that the payment of the dues of the mated to have been indebted to the banks $475, government in specie, would create a double de- 000,000 at the suspension of specie payments. The mand; a domestic, as well as a foreign; the effects interest on this sum, estimated at six per cent. (it of which would be to increase greatly, its fluctua- ought to be higher,) would give an annual income Also, from the post office department, the retions; and so deeply was he impressed with the to those institutions of upwards of thirty millions; mainder of the correspondence, &c. called for by a idea, that he drew a vivid picture of its alternate flow and this is the sum yearly paid by the community for resolution of the 9th instant, offered by Mr. Niles, from the coast to the interior, and from north to bank accommodations, to the excess of which we in relation to the conduct of the Metropolis Bank, south, and back again. All this is the work of ima- owe our bloated and unstable circulation. Never of this city, as a public fiscal agent. Laid on the gination. The effect would be directly the reverse. was a circulation so worthless, furnished at so dear a table, and ordered to be printed, together with the The more numerous the demands, the less the fluc-rate. How much of this vast income may be con- documents on the same subject from the treasury tuation; so much so, that the greatest stability would sidered as interest on real capital, it is difficult to es- I department.

try. It raises the price of every thing, and conse-
quently increases the price of production and con-
sumption; and is, in the end, hostile to every branch
of industry.

I have, Mr. President, finished what I intended to say. I have long anticipated the present crisis, but did not expect its arrival in my time. When I saw its approach, I resolved to do iny duty be the consequences to me what they might, and I offer my thanks to the Author of my being, that he has given me the resolution and opportunity to discharge, what I honestly believe to be that duty on this great subject.

TWENTY-FIFTH CONGRESS.

SECOND SESSION-SENATE.

March 19. The Vice-President presented, from the state department, a report, called for by a senate resolution, offered by Mr. Benton, in relation to the contract with the publishers of the documentary history of the revolution. Laid on the table, aud ordered to be printed.