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H. OF R.

Bank of the United States.

NOVEMBER, 1814.

merely as to the details, might well vote for a re-termination when he left his district, and this deconsideration. Mr. M. said he was opposed to termination was not altered till he read Mr. Monthe establishment of any bank, and no shape roe's letter, which came out in favor of conscripcould be given to it which could induce him to tion! Mr. M. feared that letter might be convote for it; and as the gentlemen who had spoken sidered as expressing the sense of this House, on the question had not taken a view of it, which as well as that of the Administration. He hoped precisely presented the ground on which his ob- he might be mistaken; but when he read the jections rested, he would beg leave to trespass law of the Legislature of the State of New York, one moment on the time of the House. and understood that a similar law was in progress before the Virginia Legislature; when he saw before him the bill which had passed the Senate, and the one which had been laid on his table from the Military Committee of this House, he could not but consider them all as giving "dreadful note of preparation,"

Mr. M. found no hesitation in saying, that he considered Congress had undoubted power to establish a bank; and he would say, too, in his judgment, that power had been discreetly exercised in the establishment of the old Bank of the United States. He said he had listened with much attention and instruction to the remarks Mr. M. considered that he had a perfect right which had fallen from the advocates of both the to discuss the question of conscription on the passystems which had been presented in the discus-sage of this bill; he contended that on any bill sion, and he did not think either of them free of objections; yet, had he been persuaded, that, under present circumstances, it would be proper to establish any bank, he might perhaps have agreed to one of the projects which had been presented. He doubted, however, the propriety of any more banks in the present alarming state of our country-paper money had depreciated, and suspicion was so much afloat, that he could out travel the credit of almost any bank, in three hours ride, on any post road. He doubted the propriety of adding to this flood of bank paper, and feared it would hasten the return of that singular spectacle, when "a debtor will be seen persecuting his creditor with unrelenting punctuality, and paying him without mercy." He could not but doubt the propriety of increasing the issue of paper money at this time.

which seeks to raise money, it was a legitimate inquiry to ask the object for which the money was wanted, and if it was for an improper object, the money ought not to be granted. But he did not intend, at this time, to enter into a discussion of this question of conscription; he had no doubt some occasion would shortly present, which would bring this question directly before the House; in that case he might, perhaps, trouble them with a few remarks. In the mean time he could not forbear to say that he had not been able to disguise from himself, and he had no wish to conceal from others, that he viewed this subject with horror and alarm. He was opposed to it in all its aspects, and would not give it any aid directly or indirectly.

vote against the reconsideration of the question, but, once for all, he wished it to be understood, that, until the question of conscription was disposed of, he should on the same ground vote against any bills for men or money which could by any possibility be used for that object.

The motion was opposed by Mr. Fisk of Vermont, and advocated by Mr. Fisk of New York, and Mr. FARROW of North Carolina.

Mr. M. said he had of late considered this bank as part of a system to raise money for the conBut, Mr. M. said, his objections did not stop quest of Canada, by means of a military conscriphere; he had understood, throughout the whole tion. He considered himself, therefore, bound by debate, that this bank was part of a system of every motive of duty and of patriotism to oppose finance; he doubted the propriety of placing re-it; and he would oppose it. He should not only liance on a bank, for bringing any considerable revenue into the Treasury; he thought the proper office of a bank was to facilitate the collection of revenue created in some other way. If, as had been avowed, the object was to create a revenue by means of the bank, he considered it competent for him to look beyond the means, and inquire what was the object to which these means were to be applied? He was free to confess his opinions had undergone a complete revolution on this subject. At the commencement of the session, he had felt no disposition to withhold supplies of men or money; he arrived at this conclusion, in the belief that the conquest of Canada had been abandoned, and that our resources would be directed to the defence of the country. His opinion in favor of granting men and money, had been fortified by the despatches from our Ministers at Ghent. Under these impressions, he had lately visited his constituents, (by permission of the House,) and, in free conversation with his friends, had told them he should vote, not only for the bank, but a full system of finance; and would moreover agree to the most efficient Con- The bill from the Senate, "supplementary to stitutional measures which might be devised for an act laying duties on notes of banks, bankers, filling the ranks of the Army. This was his de-and certain companies; on notes, bonds, and obli

Mr. FORSYTH then withdrew his motion for the present, intimating that he might renew it to-morrow.

Mr. CALHOUN moved to print the Secretary of the Treasury's letter read this morning; when an adjournment was called for and took place just before sundown.

TUESDAY, November 29.

A new member, to wit: from Pennsylvania, SAMUEL HENDERSON, appeared, produced his credentials, was qualified, and took his seat, in the place of Jonathan Roberts, appointed a Senator.

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gations, discounted by banks, bankers, and certain companies; and on bills of exchange of certain descriptions;" was read twice, and committed to a Committee of the Whole.

A message was received from the Senate announcing the rejection of the joint resolution from this House for appointing a committee to inquire into the expediency of removing the sittings of Congress to some other building.

THE INVESTIGATION.

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documents should be properly in the possession of the House, Mr. W. said he should think it his duty to make some motion on the subject. The report itself had indeed been a product of great labor-it was a sort of chronicle-but, in his view, it answered no one purpose for which the committee who made it had been appointed. So far from clearing up the causes of the failure of our arms at this place, he thought it was calculated (though not intended) to cover up in a mass of prolixity and detail what he considered a most disgraceful transaction.

Mr. GROSVENOR withdrew his opposition to the printing of these papers.

Mr. JOHNSON, of Kentucky, from the committee appointed to inquire into the causes of the success of the enemy, in his invasion into this District in August last, delivered in a report of very great length, together with a voluminous mass of documents. This report (principally of a narrative character) Mr. J. moved to be printed, together with the following documents, selected from the mass laid before the Committee, as tending to give an impartial view of the whole trans-mittee had deemed it their duty-and that duty action:

1. A report of the Army, its number and distribution, previous to the 1st July, 1814.

2. Letter of Colonel Monroe, then Secretary of State. 3. Letter of General Armstrong, late Secretary of War.

4. Letter from the Hon. William Jones, Secretary of the Navy.

5. Letters from the Hon. Richard Rush, Attorney General.

6. Communication from the War Department, including the orders in relation to the 10th military district, the requisition of the 4th July, and the correspondence with the Governors of Pennsylvania, Virginia, and Maryland, and with General Winder.

7. The narrative of General Winder.

Mr. JOHNSON said, the House would form its judgment of the manner in which the committee had discharged their duty, from the documents collected by it and presented to the House, and from the statements of facts, and the conclusions which they had drawn therefrom. The com

they performed without favor or affection-to speak freely upon all subjects arising from the transaction, the development of which had been committed to them, except on the solitary ques tion of military conduct. They had collected all the facts that had come to their knowledge in relation to the military movements, and had thought proper to leave for the decision of those equally qualified with themselves to judge what better might have been done. If the committee had erred in any of their opinions, those opinions were subject to the will of the House. In relation to the mere military question, whenever the proper opportunity presented itself, he was not disposed to withhold either censure or praise, when it should appear to him to be due. He would venture to say, whatever difference of opinion might arise on those points on which the committee had not expressed an opinion, on those on which it had expressed an opinion, its views would receive the sanction, not only of the House, but of the whole world. In relation to himself, Mr. J. said, he claimed no other merit than having toiled with the rest of the committee in making up an opinCap-ion on the subject, &c.

8. Reports of Generals Stansbury, Smith, Young, Douglass, and Hungerford; Colonels Sterrett, Minor, Tayloe, Laval, and Beall; Major Pinkney; and Captains Burch and Caldwell.

9. Report from the Navy Department, including the official report of Commodore Barney.

10. Letters from General Van Ness, Doctor Catlett, and John Law.

11. Reports from the Ordnance department. 12. Sentence of the court martial in relation to tain Dyson, and the correspondence between him and the Secretary of War.

13. Report from the Corporation of Alexandria, including the capitulation, and letter from General John

Mason.

14. Report from the Superintendent of Public Build

ings.

15. Letter from William Simmons.

Mr. GROSVENOR, of New York, observing the great volume of the report and documents, objected to the printing of these papers, lest the length of time it would occupy should delay a consideration of the report.

Mr. WEBSTER, of New Hampshire, (a member of the Committee of Investigation,) hoped the papers would be printed. He dissented altoge. ther from the manner in which that report had been prepared, though he was willing to do justice to the assiduity of the chairman of the committee in maturing the report. As soon as the

Mr. WEBSTER said, he should be sorry to be supposed to have found fault with the manner of execution of the principle adopted by the committee. He complained that the committee had not thought proper to express any decided opinion on the transactions submitted to their investigation. Although the fact was announced that the enemy had landed within fifty miles of this place, and that twelve hundred men of their army had overthrown all the force collected here with two months' notice, no opinion was expressed of these circumstances. Neither would it be seen in the report that the burning of the Navy Yard was justifiable, or whether it was not an act of infatuation.

[Here the SPEAKER interrupted Mr. W., and called his attention to the question.]

Mr. W. said he objected to the report, because it expressed no opinion, and served in no degree to lead the public sentiment in respect to this dis

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Fiscal Affairs-National Bank.

aster, and it was therefore that he proposed to question its correctness, &c. He heartily concurred in the motion for printing the report.

Mr. JOHNSON moved to refer the report to a Committee of the Whole, and make it the order for the third Monday in December. This would leave the report open to discussion, in which, come when it would, he proposed to be in the front rank and not in the rear. On this, as on all other occasions, he should face his duty as be

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NOVEMBER, 1814.

retary of the Treasury, but to screen himself, and the committee to which he belonged, from censure for any alleged deficiency in the provision for the supplies for the present quarter. Every supply asked for by the Treasury had been granted by Congress-being merely a partial loan to supply the deficiency created by sending a part of the twenty-five million loan to Europe for sale. The idea of the Secretary was, that, with the aid of a National Bank, he could negotiate the balance of the loan within the present quarter, so as to meet the demands against the Treasury within that period. No blame, therefore, rested on the Committee of Ways and Means in this respect; they had acquitted themselves of their duty. There was another reason why he thought the letter ought to be committed as he proposed. If there was no adequate provision for the demands of the present quarter provision ought to be immediately made to enable our citizens having unsatisfied claims on the Government to fund the balances due to them, or receive interest on the amount of them. For another reason, he thought the letter ought to be referred. The circumstances stated by the Secretary of the Treasury required that some circulating medium should be forthwith established to prevent embarrassment to the Government from the recurrence of like difficulties.

Mr. FORSYTH, of Georgia, said he was opposed to the proposed reference of this letter to the Committee of Ways and Means, because there was no information contained in it, he presumed, which was not already in possession of the House; and because no scheme of finance was suggested in it which had not been already before that committee. It appeared to him the gentleman from Virginia had misapprehended a part of the letter altogether, when he considered it as personally concerning himself. Mr. F. said he could not see anything in the letter which threw a censure on the Committee of Ways and Means, or on any part of this House. He saw no general reason for the reference, and he could not see the force of the particular reason which the gentleman had assigned.

Mr. EPPES, of Virginia, said he thought the best course to pursue in relation to this subject, would be to recommit the letter to the committee who reported it, or to the Committee of Ways and Means. Mr. E. said he understood the fact to be, that the failure on the part of the public to meet any payment of the public debt, had not arisen from any want of funds, but from the difficulty of transporting those funds. He had understood, for instance, that there were sufficient funds in Baltimore to meet the payments which it was necessary to make at Philadelphia. It was important for the public to know that the difficulties adverted to by the Secretary, in his letter, had proceeded from causes which materially affected the ability of individuals to meet their engagements, and not from want of foresight in the financial department, or from a disregard to the inviolability of the public engagements. Another reason induced him to believe that this letter ought to be referred to the Committee of Ways and Means. At the commencement of the session, that committee had reported their opinion that it was not the interest of the United States further to rely on loans; they had therefore reported to the House a plan to provide for the ways and means of the ensuing year, not bottomed on loans. While their report was before the House, and not acted on, the new Secretary of the Treasury arrived, and took his station at the head of that department. The committee, conceiving it due to him to give him an opportunity to express his views on the subject, had called on him to do so. In this letter to them, he had preferred a different system to that they had recommended for the relief of the immediate exigencies of the Government; and, instead of providing for a national circulating medium, had relied on the aid to be afforded by a National Bank. Mr. E. said he Resolved, That the Committee of Ways and Means had no wish whatever to cast censure on the Sec-be instructed to prepare, in due form, and report to this

The question was then taken on reference, and carried; and also on printing, and likewise carried. [For the letter, see ante page 651.]

NATIONAL BANK.

Mr. KILBOURN, of Ohio, said he had ever considered it to be the interest of the United States that a National Bank should be established, for the convenient management of its finances. It was with satisfaction he found that to be the opinion of a great majority of the House, by the vote some time ago, on the proposition that it was expedient to establish a National Bank. The project before the House having been rejected, he held in his hand a resolution embracing a sketch of a plan which, if approved, might be put into the shape of a bill. Mr. K. then offered his resolution for consideration.

NOVEMBER, 1814.

Tax on Distilled Liquors, &c.

House, a bill to establish a National Bank, of which the following shall be the principal, or prominent features, viz: It shall be called the National Bank of the United States. It shall be seated in the city of Philadelphia, but may have branches throughout the Union. The capital stock thereof shall be fifty millions of dollars, divided into five hundred thousand shares, of one hundred dollars each. Thirty millions of the capital may be subscribed by individuals, companies, and corporations; and twenty millions thereof shall be subscribed by the Secretary of the Treasury on behalf of the United States. The thirty millions, subscribed by individuals, companies, and corporations, shall be paid at proper periods, as follows, viz: six millions in specie, eighteen millions in stock created since the year 1811, and six millions in Treasury notes issued since the commencement of the war; that is to say, on each share twenty dollars in specie, sixty dollars in stock, and twenty dollars in Treasury notes. The twenty millions subscribed for the United States, shall be paid in Treasury notes hereafter to be issued, or in stock of the United States, to be hereafter created. For the management of the bank, there shall be fifteen directors, nine of whom shall be elected by the individual stockholders; and six shall be nominated by the Secretary of the Treasury, and appointed by the President of the United States. The board of directors shall appoint the president, and all other officers and servants of the principal bank and of the branches. The charter to continue twenty years, and no other bank charters to be granted by Congress during that time, except to the banking associations now formed within the District of Columbia. Subscriptions to be opened in one or more places in every State and Territory, and in the District of Columbia, under the care of proper superintendents. The bank shall go into operation, so soon as one million two hundred thousand dollars, [as intended twelve millions of dollars,] in due proportion of specie, stock, and Treasury notes, is paid in upon the subscriptions. The bank shall be authorized to receive, upon all loans it shall make, an interest at the rate of five per cent. per annum, and no more. When the subscriptions shall be filled to the amount of fifty millions, and the same be paid in, the bank may be required to loan to the Government twenty-five millions of dollars, and at any time prior to the completing of that amount of subscription, it may be required to loan to Government, in that proportion, to the amount actually subscribed and paid in. It shall be the right and duty of the Secretary of the Treasury to inspect all the books of the bank, and Congress may appoint committees for that purpose. And the President of the United States shall be empowered, in certain cases, and during certain limited periods, to authorize or direct the suspension of specie payments at the bank, or to substitute therefor certain Treasury notes; which suspension, or substitution, with the causes thereof, he shall make public by proclamation; and the same, in like manner, to recall and revoke, when the cause or causes shall cease to operate; or, in case of their continuance, to lay the same before Congress at the next session thereafter, that they may take such measures thereon as shall appear to them expedient.

[Had the foregoing been received and adopted by the House, Mr. K. intended to have added the following proposition, viz: Congress shall have power, when they shall deem it expedient, to extend the capital of the bank to $60,000,000, by authorizing a further subscription, on the part of the United States, of $10,000,

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000, payable in six per cent. stock of the United States; and, in such case, there shall be appointed, as above, on behalf of the Government, three additional directors in the board.]

This motion the SPEAKER pronounced to be out of order, as, in substance and matter, the same as that already rejected by the House, and which, therefore, could not now be resumed, unless by a vote of reconsideration to-day.

Mr. KILBOURN remarked, that he had not unthe Chair out of order, or he would not have proderstood that his motion would be considered by posed it. He the more readily withdrew it, because he understood that it was yet intended to move a reconsideration of the vote of yesterday. On motion, of Mr. EPPES, the House then proceeded to the orders of the day.

TAX ON DISTILLED LIQUORS, &c. The bill to provide an additional revenue for defraying the expenses of the Government, and for the payment of the public debt, by laying an additional duty on spirits distilled, and for amending the act, already in existence, for taxing that article, was read a third time. [The additional tax is fixed at twenty cents per gallon on the quantity distilled.]

Mr. CANNON, of Tennessee, moved to recommit the bill to the Committee of Ways and Means. On this motion Mr. C. spoke as follows:

Mr. Speaker, I have two objections to the bill in its present shape, which I think probably the House will remedy, in the event this motion succeed. In the first place, I object to the amount of the additional duty on the article on which we are about to increase the tax; and in the second place, I also object to the mode in which this tax is about to be laid. The double mode of laying the tax now about to be adopted, is somewhat intricate and vexatious, and I think would be calculated to produce much difficulty to the persons who collect the revenue, as well as all those who may be engaged in making spirits. Sir, said he, by continuing the tax on the capacity of the stills, you subject all those persons engaged in this business, to all the trouble, difficulty, and inconvenience of going to the collectors from the different parts of the collection districts, and carrying with them their securities, and giving bonds to the collector for the tax on the capacity, that tax laid in that way; and now, in addition to all you otherwise would do, were the whole of the this, you are about to subject the owner of every distillery, who may think proper to use it under this law, to the additional trouble and inconvenience of keeping an exact account of every drop of spirits made in his distillery, and render the same to the collector of the revenue four times in each and every year; to be sworn to, either by himself or by the person or persons who may be employed in attending his distillery; this I think, sir, will produce much embarrassment and difficulty. It must be known to every member in this House, that in many parts of the United States-I know it is the case in the Western country-the owners of distilleries frequently have

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Tax on Distilled Liquors, &c.

other persons employed to attend them; and sometimes in the course of two or three months they have two or three different persons in their employ, whom they would find it difficult and almost impossible to collect together, and have present at the time of rendering to the collector their different accounts of the amount of spirits distilled (during the time pointed out in this bill,) in which they are required to make said returns. Again, Mr. Speaker, a similar additional trouble and difficulty must be imposed on the collector. If this bill passes with its present provisions, he will certainly have to keep some kind of a separate book, containing the amount of spirits made by each person engaged in distilling spirits in his district, within the certain stated period, pointed out by this bill; he must certainly first know the precise amount of spirits made by each individual, before he can possibly know the amount of additional revenue to demand and collect from each distiller in his district. Thus, sir, I think I have clearly shown that a two-fold difficulty, trouble, and expense, will be imposed by this mode of laying the tax, both on the collectors of the revenue as well as those engaged in distilling spirits; and that, too, without the smallest possible benefit either to individuals or the Government. And although I would have preferred an increase of the tax on the capacity of the stills, to a certain extent, because I think it the most certain revenue; at the same time I think it better to lay the whole tax on the gallon, than to adopt the measure now before us. Either mode of laying the tax I think far preferable to this double mode of taxation. Either of the modes I have suggested for increasing the tax, I think far better than the one contemplated by the House; with only half the trouble and difficulty to encounter, it would produce precisely the same cur

rent of revenue.

The honorable gentleman from Virginia, who is chairman of the Committee of Ways and Means, has told us that the tax laid on the capacity of the stills, by the former act of Congress, produces a certain revenue which he could not consent to give up, because the other mode proposed, to lay the tax on the gallon, was more uncertain. This certainly would be a strong argument in favor of increasing the tax on the capacity of the stills, because, if you increase the tax in that way to a certain amount, you will still continue to have a certain revenue to anticipate. But, sir, as it is contemplated to be laid by this bill, you cannot know what your revenue will be, derived from that article, until you can ascertain the amount of spirits made and returned to the collectors under the provisions of the law. And in addition to all this, be assured, if the tax is increased to this amount and in the manner contemplated by the bill now under consideration, it will have a tendency, in a great degree, to depress the business of making domestic spirits throughout the United States. The price of this article consequently must be vastly increased; and all this increased price on the large quantities that must be purchased by the Government for the use of the Army, will

NOVEMBER. 1814.

amount to the same, as respects the Government, as a reduction of the revenue derived from this article. Certainly it cannot be the intention of this House to lay such enormous duties on the distilling of spirits, as to prevent those persons owning distilleries from using them, nor can it at this time be the interest of the Government to impose such taxes on them as will in a very great degree diminish the quantity made, as, by doing this, the very object of the law will be defeated; instead of obtaining a larger amount of revenue, than that derived heretofore, I fear we would obtain less. Sir, I cannot see, for my own part, the policy of laying such heavy taxes on our infant manufactures, so useful in our country, and so indispensable to increase the wealth and prosperity of this nation. I would think it much better to bear as lightly on them as possible, and endeavor to give them every encouragement in our power.

But, Mr. Speaker, to return more immediately to the subject before you, I contend that the tax contemplated to be laid by this bill, is unjust and unequal. A distillery, the whole establishment of which would not cost more, perhaps, than five hundred or one thousand dollars, under this law the owner for using the same one year would probably have to pay a tax of seven hundred or one thousand dollars, being as much, or perhaps more than the property thus used would be worth. If you pass the bill in its present shape, what would be the situation of the poor man, owning a small distillery of this description, with but little property of any other description, when compared with that of a wealthy citizen owning vast property of a different description? Why, sir, the poor man thus owning a distillery, whose whole property including the same not amounting to more than seven or eight hundred dollars, would have to pay to the Government for using his distillery one year, an amount equal to the value of his whole property, while his wealthy neighbor would be secured in the enjoyment of property of perhaps ten times his amount, without paying half as much to the support of the Government. A law of this kind, I think, will certainly have an unjust as well as an unequal operation. I am willing to go as far as any member in this House in the adoption of such measures as will support the Government and revive the public credit, but at the same time I think we ought to endeavor to lay our taxes and increase our revenue in such way as will, as near as possible, have an equal bearing on all the people of the United States, and to call on each individual more in proportion to his wealth, and consequently his ability to pay. I am confident, if this bill passes without alteration, it will defeat the object we have in view-it will put down many of the distilleries in every part of the country, and, instead of increasing, may, perhaps, lessen the revenue. Sir, it is very far from being my object to throw obstacles in the way of any measures calculated to get the Government out of its present difficulties, nor would I have made this motion to recommit the bill for the purpose of changing it, and reducing the tax, had I believed it was the

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