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Dec. 19, 1836.)

Treasury Circular.



always the most certain destroyers of national prosperi- are not to embark on the ocean of paper money. ty. They come in no questionable shape. They an. I cannot say, indeed, that this resolution will certainly nounce their own approach, and the general safety is produce the desired end. It may fail. Its success, as preserved by the general alarm. Nol so with the evils is obvious, must essentially depend on the course purof a debased coin, a depreciated paper currency, or a sued by the Treasury Department." depressed and falling public credit.' Not so with the Having disposed of the charge of illegality, Mr. B. plausible and insidious mischiefs of a paper money sys- took up that of the unconstitutionality of the Treasury fem. These insinuate themselves in the shape of facili- order. He read from the published speech of the Senties, accommodation, and relief. They hold out the ator from Ohio, (Mr. Ewing,] as found in a revised most fallacious hope of an easier payment of debts, and form in the National Intelligencer, the specific allegaa lighter burden of taxation. It is easy for a portion of tion of this alleged unconstitutionality, which ran thus: the people to imagine that Government may properly “ There is a provision in the constitution directly in continue to receive depreciated paper, because they the face of this order. Those who drew up the order have received it, and because it is more convenient to seemed to have been aware of it, and to have avoided obtain it than to obtain other paper or specie. But on employing the same words as are used in the article of these subjects it is that Government ought to exercise its ( the constitution; but it is not, therefore, any the less own peculiar wisdom and caution. It is supposed to pos. in violation of its provisions. The constitution declares sess, on subjects of this nature, somewhat more of fore. ( that the citizens of each of the United States shall ensight than has fallen to the lot of individuals. It is bound joy all the privileges and immunities of the citizens of to forsee the evil before every man feels it, and to take | the several States; even the States themselves cannot all necessary measures to guard against it, altbough they discriminate. But this order gives to the citizens of may be measures attended with some difficulty, and not one State a privilege which the citizens of no other without some temporary inconvenience.

State are allowed to enjoy—that of paying for public The only power which the Government possesses of re. land in the ordinary currency of the country. With straining the issues of the State banks, is to refuse their some this argument will have but little effect, especially notes in the receipts of the Treasury. This power it as it is directed against an executive act; but it is not can exercise now, or at least provide now for exercising therefore the less sound.” it in reasonable time, because the currency of some part Mr. B. said there was an error in the quotation in this of the country is yet sound, and the evil is not yet uni- place, and not only in the quotation, but in the gentleversal. But I have expressed my belief on more man's head also. The constitution was erroneously than one occasion, and I now repeat the opinion, that it quoted by the gentleman, and that error had pervaded was the duty of the Secretary of the Treasury, on the his argument; and, if followed out to its legitimate conreturn of peace, to have returned to the legal and proper clusions, would present a picture of the rarest absurdi. mode of collecting the revenue.

It can

ties and impossibilities. *The quotation says, "the citi. hardly be doubted that the influence of the Treasury

zens of each State of the United States shall enjoy all could have effected all this. If not, it could have with the privileges and immunities of the citizens of the sev. drawn the deposites, and the countenance of Gov: eral'States." The cons:itution said, “all the privileges ernment, from institutions which, against all rule and and immunities of citizens in the several States." The all propriety, were holding great sums in Government

error of the quotation was in using the definite article stocks, and making enormous profits from the circu: the, and the preposition of; and this error unhinged the lation of their own dishonored paper. That which meaning of the clause, and conducted the argument off was most wanted was the designation of a time for the

on a track which would lead into boundless confusion. corresponding operation of banks of different places. The clause, as it stands in the constitution, is general This could have been made by the head of the Trea'. and indefinite, clearly meaning that the States were 10 ury better than by any body, or every body else. treat each other's citizens as members of the same gen.

* This Government has a right, in all cases, to eral Government, and not as aliens. The quotation, and protect its own revenues, and to guard them against de. the argument upon it, give individuality and particulari. falcation or bad and depreciated paper. It is bound, also, ty to this general right; and, by giving to the citizens to collect the taxes of the people on a uniform system. * of cach State the rights of the citizens of all the other As to the opinion advanced by some, that the object of the States, abolishes at a blow all State lines, and makes resolution cannot, in any way, be answered that the one consolidated Government of the whole Union. revenues cannot be collected otherwise than they now Thus, by this reading, whatever any citizen can do in are, in the paper of any and every banking association his own State, every citizen of every Stale in the Union whicb chooses to issue paper, it cannot for a moment be may come there and do also-vote with him; hold offices attempted. * The thing, therefore, is to be done; with him; exercise licensed trades and professions with at any rate it is to be attempted. That it will be ac. him; contend with him for the honors and emoluments complished by the Treasury Department, without the of the State, without owing it allegiance, or paying it a interference of Congress, I have no belief. If from that tax, or residing within its limits. What scenes this source no reformation came, when reformation was easy, would give rise to! Whai crusading visits, or visitations, it is not now to be expected. Especially after the vote at the successive elections! Whole Slates wou'd preof yesterday, those whose interesi it is to continue the cipitate themselves in masses upon their neighbors! present state of things will arm themselves with the au. Some zealous partisans, by aid of steam cars, and race ihority of Congress. They will justify themselves by horses, and flying chariots, might succeed in voting in the decision of this House. They will say, and say every Stale in the Union! Suppose the gentleman was truly, that this House, having taken up the subject, and righi, and this grand secret had been found out before discussed it, has not thought fit so much as to declare the late presidential election, what a moving flood of that it is expedient even to relieve the country or its living heads we should have seen! such as has never revenues from a paper money system. But while been bebeld since Xerxes crossed the Hellespont, or some gentlemen oppose these resolutions, because they Peter the Hermit led his countless host to the Holy fix a time too near, others think they fix a day too dis. Land! But it will not do. The definite article the, and tant. In my own judgment, it is not so material what the preposition of, wbich figure in the gentleman's quothe time is, as it is to fix a time. The great object is, tation, and rule his argument, are not in the constituie that our legal currency is to be preserved, and that we tion; and so the citizens of every Slale are not to enjoy


Treasury Circular.

[Dec. 19, 1836.

the rights and immunilies of the citzens of every other Thus (said Mr. B.) the discrimination between settlers State. Little Delaware is not to give two millions of and speculators, and between residents and non-resivotes at the next presidential election! Pursuing bis dents, is as old as the first plan for the sale of the public error, the gentleman says the States themselves cannot lands; and with these distinctions the legislation of Con. discriminate between the rights of their own citizens gress bas corresponded from that day down to the time and those of other States. But we all know that they when propositions were made for dividing the proceeds an, and that they do discriminate. Every election proves of the lands. Up to that day pre-emptions were granted it; every tenure of office proves it; many trades and to settlers; since that day there has been a strenuous opprofessions prove it; the requiring or dispensing with position to such grants. The new policy is, not to settle bail proves it; the whole distinction between foreign the country with meritorious farmers, but to fill the and domestic attachment is founded upon this discrimina- Treasury with paper money for distribution. Formerly tion. Truly, the gentleman must choose between bis settlers were favored; and hence the settled legislation pride and his patriotism--between his speech and his of the country for above forty years. The statute book country; for his error must be fatal to his argument, or contains nearly fifty laws in favor of pre-emptions. They fatal to the States.

begin in 1792, and continue down to about 1830. Six Another branch of the constitution assigned by the or eight of these laws were applicable to the State of gentleman from Ohio (Mr. Ewing) is the temporary dis- | Ohio, and may easily be found under the head of "pre. crimination between payments from settlers and specu- emptions,” in the volume of laws relating to the public Jators. He insists that all should have the privilege of lands. The pre-emption system, thus founded in a dispaying in paper money. Now, the constitution of the tinction resting on ihe nature of things recognised in United States does not recognise paper for money; it | General Hamilton's report, and practised upon for does not recognise the existence of such currency; it is above forty years by Congress, makes two discriminain vain, then, to talk of violations of the constitution on tions—one as to classes of purchasers, the other as to such a point. Again, if it be unconstitutional to dis. price. The pre-emptioner was a resident; he paid the criminate between revenue payments, then Congress minimum price, without competition at auction sales. cannot do it; and yet Congress has done it, and that in Now, if these distinctions are unconstitutional, Congress relation to the lands themselves. In March, 1823, an could not make them; if they were unjust or unwise, act was passed to make the foreign gold coins of England, forty years' legislation would not have recognised them. France, Spain, and Portugal receivable in payment of Sir, (said Mr. B.) the Treasury circular, in making this the public lands. This was a discrimination, and an ex- discrimination, only conforms to General Hamilton's reception; for an act of 1819 bad illegalized the circulation port, to forty years' legislation, and to the common sense of foreign coins. But the discrimination which excites and commun justice of all mankind. It has the sanction greatest complaint is that between the classes of the pur- of reason, law, time, and precedent;'and the only reason chasers-between the settlers and the speculators. What why it is attacked, is because we live in times when clause of the constitution is to be relied upon to favor nothing that President Jackson can do, or not do, can these speculators? It is presumed it will be as hard to escape attack. find their names as the name of paper money in that in- Mr. B. having now fully answered, and, as he believed, strument. But, in one respect at least, they seem to be entirely refuted, the legal and constitutional objection to in a favorable way; they are gaining new friends, and the Treasury order, would take up the other branch of finding advocates and protectors in those who denounced the general charge, namely, the ruinous and pernicious and stigmatized them six months ago! They are now effect of the order upon the banks, business, prosperity, in the hug of those whose kicks they received a few confidence, and industry of the country. The news of short months ago. But there is a distinction, founded in all this approaching calamity was given out in advance the nature of things, and recognised by laws, between the in the Kentucky speech and the Philadelphia letter, alsettler and the speculator. One is a meritorious class, ready referred to; and the fact of its positive advent and deserving the favor of all Governments; the other is a actual presence was vouched by the Senator from Ohio pestilential and injurious class, discountenanced every [Mr. Ewing) on the last day that the Senate was in ses. where. The first report ever made under the Federal sion. I do not permit myseil (said Mr. B.) to bandy con. Government for the sale of our public lands recognised tradictory asseverations and debatable assertions across this distinction. It was made by General Hamilton, Sec.

this floor. I choose rather lo make an issue, and to test retary of ihe Treasury, in the year 1790, and is explicit- assertion by the application of evidence.

In this way I ly to the point. This is an extract from the report: will proceed at present. I will take the letter of the

" That, in the formation of a plan for the disposition President of the Bank of the United States as being of the vacant lands of the United States, there appear to official in this case, and most authoritative in the distress be two leading objects of consideration: one the facility department of this combined movement against Presiof advantageous sales according to the probable course dent Jackson. He announces, in November, the forthof purchases; the other the accommodation of individuals coming of the national calamity in December; and after now inhabiting the Western country, or who may here. charging part of this ruig and mischief on the mode of after emigrate thither. The former, as an operation of executing what he ostentatiously styles the distribution finance, claims primary attention; the latter is important, law, when there is no such law in the country, he goes as it relates to the satisfaction of the inhabitants of the on to charge the remainder, being len-fold more than the Western country. It is desirable, and does not appear former, upon the Treasury order, which excludes paper impracticable, to conciliate botlı. Purchasers may be money from the land offices. Here is his picture of discontemplated in three classes: moneyed individuals and companies, who will buy to sell again; associations of “The commercial community were thus taken by surpersons, who intend to make settlements themselves; prise. The interior banks making no loans, and con. single persons or families, now resident in the Western verting their Atlantic funds into specie, the debtors in country, or who may emigrate there bereafter. The the interior could make no remittances to the merchants iwo first will be frequently blended, and will always in the Atlantic cities, who are thus thrown for support want considerable tracts; the last will generally purchase on the banks of those cities at a moment when they are small quantities. Hence a plan for the sale of the West. unable to afford relief, on account of the very abstracern lands, while it may have a due regard to the last, tion of their specie to the West. The creditor States should be calculated to obtain all the advantages which not only receive no money, but their money is carried may be derived from the two first classes."


Dec. 19, 1836.)

Treasury Circular.


away to the debtor States, who, in turn, cannot use it, the conduct of the banks acting with politicians and either to pay old engagements or to contract new. By with the Bank of the United States. The general prosthis uonatural process the specie of New York and the perity of the country is great; but there are places, other commercial cities is piled up in the Western States; Philadelphia, New York, and some others, where the not circulaied, not used, but beld as a defence against withdrawal of money under the deposile act has occathe Treasury; and while the West cannot use it, the sioned a pressure, and where the policy to create disEast is wffering for the want of it. The result is, that tress, and to throw it upon the Treasury order, is secthe cominercial intercourse between the West and the onded by the ability to accomplish what is desired. Allantic is almost wholly suspended, and the few opera. This is about the true state of the question; and evidence tions wbich are made are burdened with the most ex. will be at hand to show it. Mr. B. said it would be retravagant expense. In November, 1838, the interest of membered that, when this resolution was called up a money bas risen to twenty-four per cent.; merchants are few days ago, he had specified bis intention to obtain struggling to preserve their credit by ruinous sacrifices; from the Treasury Department the comparative returns and it costs five or six times as much to transmit funds from of many banks, both in the new States, where there the West and Southwest, as it did in November, 1835, were public lands, and in the Atlantic States, where or '34, or '32. Thus, while the exchanges with all the there were none; and, by looking into their condiworld are in our favor, while Europe is alarmed, and the tion before the Treasury order. was issued, and since Bank of England itself uneasy at the quantity of specie that order had gone into full operation, he would be we possess, we are suffering, because, from mere mis. able to see in what manner the banks had been affected management, the whole ballast of the currency is shifted by it. He had now obtained those returns. They, of from one side of the vessel to the other."

course, were limited to the deposite banks; but being “In the absence of good reasons for these measures, scattered over every State in the West, from the lakes and as a pretext for them, it is said that the country has to the Gulf of Mexico, and throughout the Atlantic overtraded, that the banks bave over-issued, and that the States from Maine to Georgia, the result which they purchasers of public lands have heen very extravagant. would present could not be otherwise than a fair in. I am not struck by the truth or the propriety of these des to the general condition of the whole country. He complaints."

had looked carefully over these returns, covering as “Now the fact is, that, at this moment, the exchanges they did eight large folio pages, and the result indicated are all in favor of this country; that is, you can buy a bill not only a good condition, but an improved condition; of exchange on a foreign country.cheaper than you can not only an ability to aid the community, but aid actually send specie to that country. Accordingly, much specie given. Mr. B. then went over the returns, one by one, has come in-none goes out; this, too, at a moment taking for his points of comparison the months of July when the exchange for the last crop is exhausted, and and November; that is to say, the month before the that of the new crop has not yet come into the market; order went into operation, and the latest month at which and when we are on the point of sending to Europe the the banks had been heard from since. He examined produce of the country, to the amount of eighty or one them under the three heads of 1. Loans; 2. Specie on hundred millions of dollars. How, then, has the coun- hand; and, 3. Circulation; and the general results were, try overtraded? Exchange with all the world is in fa. that the loans in November were larger than in July; the vor of New York.”

specie greater in November than in July; the circulation “The people of the United States, through their rep in many instances not diminished, in some increased; and resentatives, rechartered that institution. But the Exe in most instances the specie on hand and the circulation cutive, discontented with its independence, rejected the brought to a nearer proportion to each other; insomuch act of Congress, and the favorite topic of declamation that banks which had eight, ten, or twelve dollars of was, that the States would make banks, and that these paper out for one dollar of silver in their vaults in July, banks could create a better system of currency and ex. were now brought to the safer proportion of three or changes. The states accordingly made bank,; and then four 1o one in November. This was proof that the followed idle parades about the loans of these banks, banks were not crippled. It was proof ihat they were and their large dealings in exchange. And what is the not denying accommodations. The proof was complete, consequence? The Bank of the United States has not as far as it went, and it went all over the Union, that ceased to exist more than seven months, and already these banks were not injured by the Treasury order, the whole currency and exchanges are running into ines- but were benefited by it; it was proof that they were tricable confusion, and the industry of the country is not only able and willing to assist the community, but burdened with extravagant charges on all the commer- actually had assisted them. cial intercourse of the Union."

On the other hand, there might be banks which were “In the mean time, all forbearance and calmness not assisting the community, and which were accomshould be maintained. There is great reason for anx- plishing a pecuniary and political object at the same iety-none whatever for alarm; and with mutual confi. time, by shuiting their doors upon borrowers, and throw. dence and courage, the country may yet be able to de ing them into the hands of money dealers at three per fend itself against the Government. In that struggle my cent. discount per month. This was said to be the case own poor efforts shall not be wanting. I go for the in Pbiladelphia; that Philadelphia which was the seat of count:y, whoever rules it. I go for the country, best the new United States Bank, with her capital of thirtyloved when worst governed and it will afford me far / five millions, which one short year ago was to make more gratification to assist in repairing wrongs, than to money so plenty in that State, and to reduce interest 10 triumph over those who inflict them."

5 per cent. per annum. Three per cent. discount, equal Here (said Mr. B) is a woful picture of distress, to 4 per cent. interest, is now tbe rate of usury which drawn in the same colors in which the same pictures prevails around her! And she can make it 6 or 12 per were drawn in 1833. But is it a true picture? and, if it is cent, per month whenever she pleases. Where banks true, what has caused it? To these questions the an- have monopolized the currency, and become the disswers are plain: first, that the picture is not true, ex. pensers of money, they can make interest, or usury, cept in places where the Bank of the United States and what tbey please. They have only to stop discounts, its affiliated banks have power to make it so; and, sec- and throw the burrowers into the hands of usurers. Pre. ondly, that whatever real distress is felt in some places, texts will never be war.ting. Any thing that happens, is occasioned by the deposite act.of the last session, and or does not happen, will do; the removal of the depos.

Vol. XIII.-3

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ites-the issuance of the Treasury order-or the last refused a dollar of it to her creditors there! and that a year's snow. One thing is as good as another; for the bank holding $300,000 of her notes, bad to send them, banks themselves are the sole judges of their own rea- and did send them, to Philadelphia to be cashed, at sons, decide without argument, and without appeal, and great expense, and, what was more material, at great act upon the decision without mercy and without re- loss of time, when the city was otherwise pressed for

specie by the double cause of demands to supply the This is now going on in some of the principal cities, Western land purchasers, and failure to receive the acwhere the deposite act, creating a real pressure, gives customed supplies from Mexico, on account of the Tex. to the Bank of the United States and ils affiliated insti. ian war. Here, then, was $300,000 more taken out of tutions the power to do great mischief. of this power circulation by ihe Bank of the United States in one they avail themselves; but their sphere of action is limit. month, than all the land offices received in four months; ed, not general. Their victims are individuals, and not and if the fact was true, as related to him, the evidence the Union. They destroy individuals, or, at most, isola- was clear and incontestable that this bank was itself ted communities. At the most, they only do a Goliad making the scarcity and pressure which it has been business-kill their prisoners; that is to say, the debtors; falsely throwing upon the Treasury order, and upon a pen-full, or a pail-full, at a time. The debtor part of | President Jackson. Mr. B. asked no one to condemn the community, where the powers of the Bank of the the bank unheard upon this statement; but he also asked United States and its associates predominate, suffer that no one would refuse to have it inquired into by a severely and cruelly; but the remoter parts of the Union committee. are safe. The Briærian arms of the monster no longer The real cause of the pecuniary pressure and de. reach to the extremities of the Union. It can no longer rangement of the exchanges experienced in some of the strike down exchanges, sink the price of produce and large cities, exclusive of that created by some of the property, and demolish merchants and traders in the banks, was the deposite act of the last session. That act towns and cities of the South and West. The tragedy causes thirty odd millions of dollars, about fifteen millions of 1833, now performing on the local theatres of some of which is money appropriated to useful and essential of the Atlantic cities, cannot be again extended to the objects, to be suddenly withdrawn from the vortex of country towns and remote States.

business, and transferred to places where it must stagnate Mr. B. remarked upon the statements in Mr. Biddle's for some time before it can come again into active emletter; he chose to refer to that letter as being the re- ployment. Aware of this, and sensible that the public vealed source of this proceeding against President Jack- eye was fixed upon this act as tbe real source of a bonason, and the fountain from which all the arguments of fide distress, the attempt is made to turn off the effect the opposition are drawn; he remarked upon the state- from the act itself, to the mode of its execution. It is ments in it, that it was the great transfer of specie to the not the transfer of these thirty millions, they say, which West which occasioned distress in the East; that much has done the mischief, but the manner of making the specie had gone to the West, and that none had been ex- transfer! This (said Mr. B.) is a repetition of the old ported. Mr. B. said he had prepared himself with facts song about the removal of the deposites. It was not the to reply to these two assertions. In the first place, a removal, but the manner of the removal, which had done Treasury return which he held in his hand, showed that no all the mischief in 1833. And when pressed to explain more than $1,463,656 in specie had been received at all what was this mystical manner of acting which was so the land offices under the Treasury order, and a like re- magically calamitous, the solution was in the destruction turn showed that $312,811 in goly, and $4,123,004 in of confidence. This was the solution then; it is the silver, had been exported from the United States this

solution now; for the president of the Bank of the Uniyear. Here then was an export of specie to foreign ted States expressly declares that the instant recision of countries of three times the amount of that which went the Treasury order would restore confidence in twentyinto the land offices; yet the public are to be told by the four hours, and relief in as many days. This was the president of the bank bearing the name of the United declaration during the whole panic of 1833; and its States, that no specie had been exported!

meaning then and now is the same: that the Bank of the It is in this way that the public is deceived, and that United States and its affiliated institutions would cease the Treasury order is made the pack-horse, to be loaded scourging the country the instant that Congress would with every thing that can be heaped upon it. The ex- grant its president the victory and triumph which he port of four and a half millions of specie to foreign coun. demands over President Jackson! The six montlis' cry tries is called nothing is said to be none--while one and of the session of 1833-'34 was, that the restoration of a half millions, gone into our land offices, has overset the deposites, or the recharter of the bank, would rethe national ship, and deranged the business of a conti- lieve the distress in twenty-four hours, and that nothing nent! One million and a half out of seventy-five mil. else ever could relieve it. Now it happens that the test lions has gone into the land offices. Who would feel it? of time, and the letter of the president of the Bank of How could it disturb the business of the country? And, the United States, has shown that this cry of six months' especially, how could one million and a ball, by going duration was entirely erroneous; for the distress did into the interior of our country, do all this mischief, cease, and unbounded prosperity has ensucd; while the when four and a half millions, by going to foreign coun. only condition on which this was to take place has never tries, is not felt or known? But there was another ope- happened; the deposites are not restored; the bank is ration in specie of which Mr. B. bad been informed, and not rechartered; the distress did cease; unexampled which he should bring under the inquiries of a commit. prosperity has ensued, which is allempled to be intertee, if he should be so fortunate as to be allowed one, rupted again by those who interrupted it then. and which he mentioned now, not as evidence to con. Mr. B. said the deposite act was the offspring of the vince the Senate, but as a ground for demanding a com. land bill, and became the substitute for it. That bill mittee. His information was this: that in the month of had passed the Senate before the deposite bill was September last, the merchants and bankers of New Or- brought in, and, so far as the Senate was concerned, had leans became suddenly surprised at the mysterious mude a previous disposition of the same money. That scarcity of specie. It had vanished as if by magic. A bill was carried through the Senate by the votes of those meeting was held to know what had become of it; and who are considered as the tutelary deities of the mer. it was ascertained that the Bank of the United States chants and bankers on this foor; yet the disposition had collected and boxed up $1,800,000 in that city, and which it proposed to make of what was called the proDec. 19, 1836.

Treasury Circular.


ceeds of the sales of the public lands was ruinous to the Mr. B. had a question to put to the defenders of the banks and the merchants of the great Atlantic cities. banks which affected to be crippled and half killed, and It made a call for money, and a distribution of money, unable to lend a dollar, on account of this Treasury which must have driven every debtor to these banks to order. It was this: How comes it that these banks never the immediate payment of every shilling which he owed felt a wound, or uttered a complaint, during the many in any deposite bank; and would bave produced a pres- years in which their paper was excluded from both . sure and consternation which would have pervaded the branches of the revenue of the Federal Government, by whole moneyed system, and the whole business com- the by-laws of the Bank of the United States? Mr. B. munity of the places where they were. This is the pro bad read, for another purpose, the 24th article of the vision of the bill. It is the third section, in the form in by-laws of this corporation, by which the notes of all the which it passed the Senate, and went to the House of local banks of the Union were excluded from receivaRepresentatives.

bility in any revenue payment whatever, except the "Sec. 3. And be it further enacted, that the several notes of the specie paying banks in the same city or place sums of money received in the Treasury as the nett pro- where the branch bank was situated. He would now ceeds of the sales of the public lands for the years | read the 251h article of the same bank code, which eighteen hundred and thiriy-three, eighteen hundred would show that this exception in favor of the local and thirty-four, and eighteen hundred and thirty-five, banks in the same place with the branch was of no adshall be paid and distributed as aforesaid, at the Treasury vantage to them, but the contrary, as it merely amounted of the United States, one fourth part on the first day of to a collection of their notes for immediate convertibility July, eighteen hundred and thiriy-six, and one fourth into coin. The article is in these words: part at the end of each ninety days thereafter, until the ARTICLE XXV. The offices of discount and deposite whole is paid; and those which shall be received for the shall, at least once every week, settle with the State years eighteen hundred and thirty-six and eighteen hun banks for their notes received in payment of the revenue, dred and thirty-seven shall also be paid at the Treasury or for the engagements of individuals to the bank, so as hall-yearly, on the first day of July and January, in each to prevent the balance due to the office from swelling of those years, to such person or persons as the respec- to an inconvenient amount." tive Legislatures of the said States shall authorize and

Here (said Mr. B.) is the condition of the whole catadirect to receive the same.”

logue of State banks, during the days of the reign of the Now, (said Mr. B.,) let any banker or merchant of the Bank of the United States. All excluded from revenue great commercial cities count up the sums which would payments, both land and customs, except those in the have been payable in the short period of nine months wenty-five places where branch banks were situated, under this act. They would have been these: eighteen and the few thus excepted called upon for the weekly millions and three quarters of a million of dollars on the redemption of their notes. This, in fact, was an exclufirst day of July last; six millions on the first day of Oc- sion of their paper, and a receipt of their specie alone, tober last; eighteen millions and three quarters on the and worse to them than a total 'exclusion; for the nomifirst day of January next; and six millions on the first day nal reception would cease then to be laken out of the of April next; amounting, in the whole, to forty-nine channels of circulation, brought to the branch to meet and one half millions of dollars; for such was the amount

the revenue payments, and thence sent back to their of the proceeds of the sales of the public lands for the own counters for redemption in coin. And this conyears mentioned up to 1836. But ihe section also in-tinued to be the case down to the day of the removal of cluded the proceeds of the sales for 1837, which were the deposites. Yet these banks never affected to be unto be divided out on the first days of July, 1837, and able to do business in this long state of total exclusion January, 1838. Their amount cannot be known so as

from all revenue payments by the power of the Bank of to be added. The Secrelary of the Treasury, on the the United States. It is only when one half of the same basis of hard money payments, estimates them at five thing is done by President Jackson that they pretend to millions of dollars; but if these resolutions pass, and the be ruined. Mr. B. said it was time for the public to notes of all the banks in the Union become receivable mark the conduct of banks, and to discriminate between for public lands, the whole national domain may be those which maintained their course as moneyed instituswept. Every acre may be changed into paper, and tions, and those which were nothing but shaving shops that paper be added to the mass of the unavailable funds and political engines. Many banks had so acted as to now in the Treasury.

prove that they were at the beck and nod of politicians, Mr. B. deemed it right to bring these facts to the rec- and subservient to the mischievous designs of the Bank ollection of the Senale, and to place them before the of the United States. They were ready to close their eyes of those who looked upon the authors of such doors upon borrowers at the approach of the elections, measures as their peculiar protectors. That third sec. and to storm Congress with petitions in favor of any tion of the land bill would have been desolation to the movement of the Bank of the United States. Who can great cities; it was opposed as such on this floor; yet it forget their petitions at the veto session, and at the panic passed this Chamber, but hung in the House of Repre: session, in which they stooped so low as 10 pray to have sentatives until the deposite bill was passed here, and the Bank of the United States kept in existence to rule sent down to supersede it. That deposite bill, which over them, and prevent them from issuing more notes proposes only thirty odd millions for abstraction from than they could pay? Who can forget their refusal to i he great channels of commerce, is, in reality, crippling receive the public deposites, when that refusal was nebanks and merchants, and distressing the great cities. cessary to help out the Bank of the United States in its What, then, would it have been if forty-nine and a half attempts to embarrass the Government, and injure the millions had been taken from them in the short space of country. These things, and many others, must be renine months? And what would have been its effect membered, and marked; and the community and the upon the Treasury of the United States? Bankrupicy! Government must learn to discriminate between instituFor it is now seen that there will be in the Treasury on tions which conduct themselves on business principles, the first of January next but about forty-one millions of and those which are at the service of politicians whendollars, and that inclusive of fifteen millions of unexpend. ever a political effect is to be produced, and at the ed balances, applicable to objects of great necessity, and service of a revengeful institution whenever it suits her not completed. Let these facts and these views be kept policy to bave a panic in the country, in mind, whenever the land bill and the deposite act are Mr. B. referred to the general state of the country to mentioned.

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