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H. or R.]

The Public Deposites.

[MARCH 18, 183

them to the Secretary. He could only request it. The turns of a diminishing currency, get into their hands th resolution was of recent origin, and had probably escaped property of all the rest. And yet this is the way in whic notice, or was believed to be temporary. To supply, as it is proposed to protect the poor against the rich. far as possible, the absence of this information, Mr. W. But even this state of the banks must be taken as had been at the pains to procure from members of that ther more favorable than the truth. It is known th House, authentic returns of their respective States, as far some State banks have been in the habit of lending an as practicable, for the last year. From these papers, and borrowing specie, so as to present a more favorable co others which he should hereafter move to have printed, dition of their affairs previous to making their return he had caused to be compiled various abstracts, which he Abundant 'evidence of the fact exists; but some has r would send to the Chair for the satisfaction of gentlemen cently been derived from a quarter where I did not e who might be inclined to examine them. They were pect it--the correspondence of one of the selected barl made up from the actual returns of the last year from with the Secretary of the Treasury. I refer to documen three hundred and ninety-eight banks, of the different 16 of this session, p. 334. The President of the Girar States and Territories, leaving upwards of fifty banks Bank, after informing the Secretary, on the 2d Novembe whose condition was to be ascertained by reference to the last, what had been done in relation to certain transactio returns of the year previous, or estimated from a general between them and the United States Bank, says: "Th average of the rest. He also presented returns, believed motive for this step, on our part, was to be found in th to be correct, of the circulation of the Bank of England fact, that the day for the annual statement to the Legi and the banks in Canada. The grand aggregate present- lature was approaching, and the State banks, with th ed by the returns and estimates of the State banks, in- single exception of ourselves, were curtailing their di cluding those in the Territories and District of Columbia, counts considerably, and endeavoring to fortify themselv was nearly this, in round numbers: Capital, $146,000,000; for that purpose.”

T

circulation, nearly $70,000,000; deposites, $50,000,000; How far the "single exception" can be relied on, d specie and specie funds, $15,000,000. The two last items pends on the meaning of a subsequent sentence. are confounded, in many of the returns, in such manner President of the selected bank, after stating certain fact that they cannot be separated. "Specie funds" is under-showing its situation, proceeds: "As for ourselves, ha stood to mean not gold and silver, but deposites or bal- ing $116,000 in our vaults, and creditors of the Stat ances in distant banks, situated in cities of the seacoast, on banks upwards of $80,000, but under an obligation to span which checks may be drawn, and which, it is said, expe- $100,000 to two of the New York banks next week, rience has demonstrated to be, in the ordinary course of &c. I recommend this phrase to the attention of the hon trade, equally as available and convenient, to some of the orable Chairman of the Committee of Ways and Mean country banks, as specie. The actual amount of the pre- I hope he will explain it; or, if he cannot, that he wi cious metals in possession of the banks is estimated not to seek an explanation of it. What does one of the barkexceed $10,000,000. The total amount of discounted pa- "selected" as depositories of the public treasure, mear per is about $233,000,000. The interest on their dis- by telling the Secretary of the Treasury that they hav counts is more than the specie in their vaults.

$116,000 in their vaults, but under an obligation to spar

These returns and abstracts, sir, collected and compiled $100,000 to two of the New York banks next week? T through the instrumentality of the individual who ad- what New York banks was it to be "spared," and fo dresses you, is the only recent and authentic information what purpose? What is meant by spared? It is no we possess on the subject of our currency; and, according given, certainly. It must be either lent or paid. If to them, such is the condition of the State banks which means paid, then the Girard Bank had, after paying th the committee are "persuaded" will provide a safer cur- $100,000, fourteen thousand dollars in specie, with a cr rency than now exists.

culation of $366,000; $800,000 due to the United State!

These returns had led Mr. W. to reflect on the effect and $550,000 to individual depositors, making a tota which a diminishing currency would have on the prosper- amount of debt immediately demandable of $1,716,00 ity of individuals. He took a single State, and estimating to meet which, it had on that day, of funds immediatel the whole amount of property in it to be worth, according available, specie $14,000, due from the Bank of th to the best data he could obtain, $70,000,000, he found United States $350,000, balances due from other bank that the currency of that State amounted to about after deducting those due to other banks, $60,000-tota $4,000,000. That is to say, $1,250,000 of specie, and $424,000. If, on the other hand, spared means lent, $2,750,000 of notes. For the present, he laid out of ask which were the two banks in New York to whet account the extent to which that State would be-as every $100,000 specie was to be lent to "fortify" themselves country must be affected by the currency of the adja- The returns to the New York Legislature, by the safet cent States. He considered it as isolated, for the sake of fund banks, are not made till January. It could not b simplifying the proposition. Four millions of dollars, then, for that purpose. Two of the State banks in New Yor kept the value of the property of that State, under ordi- did, indeed, make returns of their situation to the Tre nary circumstances, at $70,000,000. If the amount of sury, dated within the week after the 2d November. Bi currency be reduced to $2,000,000, the whole capital I hope it was neither of these. I will not permit myse must fall one-half, and would be worth only $35,000,000; to conjecture there is any shifting of specie among th and the capacity of the $2,000,000 to purchase property selected banks. I trust the President has not "fortified would be as great as that of the $4,000,000 before. Every himself behind the veto, for the sake of banks that "fo man who had $1,000 in money has his capital doubled; tify themselves by passing specie from hand to hand, t every man who had $1,000 in property, has his property occasion requires.

lessened one-half. The one is virtually made worth

Sir, I pass from the immediate subject of the argument $2,000; the other is reduced to $500. If the process be for a moment, to notice some most extraordinary assel repeated by again diminishing the currency one-half, the tions of the President.

$35,000,000 of property become worth only $17,500,000. If we are to believe his former Secretary of the Tret The original $1,000 money capitalist will effectively be sury, a man whose varacity as yet has not been succes worth $4,000, and the original $1,000 property capitalist fully impeached, the Chief Magistrate has asserted, "tha will be worth only $250. If he owed $250 out of his if the last Congress had remained a week lorger in set $1,000 at the commencement, he will be a bankrupt. sion, two-thirds would have been secured for the bani Thus it is demonstrable, that, following out the pro-by corrupt means; and that the like result might be af cess, those who have the money originally, may, by the prehended at the next Congress."

1

MARCH 18, 1834.]

The Public Deposites.

[H. or R.

Now, sir, I beg leave to ask, what authority the Exec- That this is not mere bravado, every one who hears utive head of this republic had for thus calumniating the me has some reason to suppose. The existence and exmajority of Congress. Yes, sir, I say calumniating. Will tent of the power in question has been for sometime eaany gentleman on this floor justify-will any one palliate gerly discussed in conversation. A design to use it has such a charge? Could the President have reflected on been twice or thrice charged on this floor, and not denied what he was saying? Can he now reflect, with any satis- by any friend of the administration. When the gentlefaction, that he himself has sullied the character of that man from Massachusetts [Mr. ADAMS] adverted to it, he country which he defended, and will be cited as authority was replied to, but the design was not disclaimed. Sir, throughout the world, that our institutions are rotten to the same justification can be made now that was made their heart's core? Sir, I enter my most solemn, however then and since. Charles accused his Parliament of sedifeeble, protest, against the truth and decency of the tion. Cromwell taxed his with corruption; and Napoleon charge. I was not one of those who voted for the bill, charged the Council of Five Hundred with violations of believing the attempt to pass it then, under all the cir- the constitution. Wherever a representation of the peocumstances, ill-judged and precipitate. But I do not know ple existed, the first step of a usurper has been to bring a man of those who did so vote, whose motives I do it into contempt. In modern times, sheep-skin, lead, and not believe as pure as my own, or as those of the Presi- lamp-black, sometimes suffice for this purpose. When ident himself, and I trust, so long as the charge exists, that is effected, steel will do the rest. "Hear these my humble but sincere testimony will survive to com- prating idiots, comrades," says the future Cæsar, "they dare to threaten your general. They intend to usurp all Again: In his annual message he seems to consider the power. They declare themselves perpetual. Down bank as constantly engaged in corrupting the people and with the tyrants." The hall is cleared in an instant by their representatives. "In this point of the case, the the soldiery, and the protector of the people's liberties, question is distinctly presented, whether the people of pointing to the Speaker's mace, says, "Take away that the United States are to govern, through representatives bauble!" Such is the brief history of many revolutions. chosen by their unbiased suffrages, or whether the Upon what did Cromwell ring the changes of complaint? power and money of a great corporation are to be se- That "many eminent persons," the "great constitutional cretly exerted to influence their judgment and control lawyers" of that day, "had said there was no safety for their decisions. It must now be determined, whether the the country but in the continuance of this Parliament." bank is to have its candidates for all offices in the coun- When Lucien quitted the chair of the Council of Five try, from the highest to the lowest, or whether candi- Hundred, to throw himself on horseback by the side of dates on both sides of political questions shall be brought Napoleon and harangue the troops, he invented the faforward as heretofore, and supported by the usual ble so often since repeated, of daggers raised against the

bat it.

means."

Sir, this charge explains the extraordinary course of conduct the President has pursued. The President believes that two-thirds of the last Congress were, or would have been, corrupted by the bank, and apprehends that the like result will be produced on the present Congress. To prevent the success of a bare majority, in relation to

general. "Those robbers," said he, "are no longer
the representatives of the people, but the representatives
of the poniard."

We have had our poniard story too.
How great the difference between the beginning and
the end of a revolution. When Louis ordered the States
General to separate, and his grand master of ceremonies

the deposites, he removed them before Congress assem- reminded them of the order, what was the indignant anbled, under the idea that a new act of legislation would swer? "Slave! go tell your master we are here by the be necessary, and to that act his assent must be required, voice of the people, and we will not go hence but at the and would be refused. In other words, dreading the cor- point of the bayonet." Our revolution began sooner, and ruption of Congress, he intrenched himself behind the has outlived that of France. Does it approach its end? veto. And now, pursuing the same course of policy, to Have we, indeed, then, come to this, that two successive prevent the effect of action by a corrupt Congress, as he Congresses of the United States have been stigmatized calls them, there is reason to believe that he meditates with corruption, and a forced adjournment threatened? procuring a difference between the two Houses, and then Sir, if this charge and this threat do not rouse the spirit adjourning them to such time as he thinks proper. When of the American people, the republic exists no longer. It that will be, no one will presume to guess. There have has found a master.

been illustrious examples for such a proceeding, both by The elections of the city of New York, and the State those who had and those who had not the legitimate of Virginia, alone stand between us and the dictatorship. power. The example of Charles encouraged the auda- Great exertions are making to persuade the Old Domincity of Cromwell, as the example of Cromwell is now ion that this question touches nothing but the bank. If held up to the imitation of the President. What have she believes it. - But no! She cannot--she will not we in the official or semi-official gazette of Friday last? believe it--Who shall so deceive her? It is a question of Alluding to certain Senators of the United States, the liberty or slavery. She sees it--she feels it--she will paper through which "the Government" communicates treat it so. Rending the shackles of party distinction-with the people, holds this language: bursting even the ties of "These great constitutional lawyers are understood to from her with disdain the glittering toys of personal attachment; casting place and hold, that, in case the Senate disagree from the House power, she will fling her spotless, glorious banner to of Representatives, the popular branch is not only to the wind, and, trampling in the dust the prostrate form bend to them, but the Executive is not authorized to in- of arbitrary power, wake every mountain echo in the land terfere, and must bend also to such a modest Senate, un- to her shout of triumph, " Sic semper tyrannis." less Congress happened at that session to have been spe- But it has been said, and will be said, The money of the cially convened by the Executive. nation is in the selected banks; it will do no good to re

"In this way, not only the other powers of the Gov move it; will you not provide for its safe-keeping there? ernment can, by this federal construction doctrine, be I answer frankly, No! I will not consecrate usurpation by set at defiance, but the people be burdened with the law. They have seized upon the treasury. Unless we, maintenance of the honorable Senate here, for bank pur- its constitutional guardians, can restore it to its safe and poses, through the dog-days, and, indeed, till, like a proper depository, let them keep it till they can be imRump Parliament of old, they become the scoff and scorn peached. If tyranny will not rouse the people, ruin of the country."

will.

H. oF R.]

The Public Deposites.

[MARCH 18, 183

One word to constitutional dissidents. They who act of legislation is necessary. There is an existing la say the deposites should not be restored because the bank If there is no approval of the reasons of the Secretary, f is, in their opinion, unconstitutional, make an alleged suspending the performance of his duty under it, the d violation of the constitution by Congress the justifica- ty ty is is to be resumed as usual, that law being in full forc tion of a palpable infraction thereof by the Executive. Who does not perceive that, if the Secretary, acting u The proposition they maintain amounts to this: "Steal-der the order of the President or otherwise, were to г ing stolen goods is not theft." store the public deposites to the Bank of the United Stat

We are promised that the State banks shall answer all to-morrow, all would go on as heretofore, in relation the ends of Government as fiscal agents, as well or bet- the intercourse of the bank and the Treasury? The 16 ter than the Bank of the United States. The President section, then, is not repealed. How, indeed, could th and Secretary have, indeed, nothing to do with the cur- Secretary repeal it? If it is not repealed, unless bo rency, (though the President promised us a good one,) Houses of Congress concur in pronouncing his reaso and Congress ought to have nothing to do with it, except sufficient, it is his duty to restore them. If he does no as to the coin. So say the committee. But when the he takes the responsibility, and, so far as my vote is co entire control of the currency is surrendered to the State cerned, I will hold him to it.

banks, they will voluntarily take such care of it, and In removing the deposites, the Secretary of the Tre manage it so well, that there will be nothing further to sury acts as the special agent of Congress, to whom, desire. Before I give credence to the second series of the short periods in the recess, they have delegated a pa prophecies of Amos, I must believe the first have been of their power, which they cannot then use themselve accomplished. Several months since, some epistles, con- to be employed, according to a sound discretion, in th taining esoteric precepts for the church in Philadelphia, event of some extraordinary exigency, and under an were exposed to the public eye as other mysteries have countability to them. It is analogous to the power som lately been. What said they?

times given to the President of suspending the force "When you consider that the public moneys in the certain laws, in the event of particular occurrence bank were about $9,868,000; that their sudden with- The law is not repealed, and, unless the act of the Ex drawal would probably carry with it $3,000,000 out of cutive, in suspending it, is confirmed, it remains in fu the private deposites, now amounting to $8,000,000; force.

that the bank has now to pay two or three millions of The committee, by some strange fatality, for which the three per cents. deferred in Europe; and that, upon is not my province to account, seem destined never to r so extensive a curtailment of business, many millions of commend a decision of the questions which they argu its nineteen millions in circulation must soon return and never to argue the questions which they dec upon it; you will perceive that sudden withdrawal of Thus they have decided against the constitutionality an the public moneys would at once destroy it. Yes, sir, expediency of the Bank of the United States, which the this boasting giant is now but a reptile beneath the feet have not argued; and they have argued in favor of th of the Secretary of the Treasury, which he can crush at reasons of the Secretary, which they do not call on Co will. It exists by his forbearance, and will for the next gress to decide. They shun putting before this Hou forty days; and great forbearance will it require to save

it from destruction.

"But do not suppose the bank will be permitted to pursue a hostile course towards the State institutions, and thereby produce that pressure which it is the policy of the administration to prevent, Manifestations of such a course on the part of the bank will undoubtedly be met by a commensurate transfer of the public money,

which shall make the bank the first to feel the consequences of its own policy.

"Thus has this haughty institution been brought to its knees at the first step of the State banks. But the result of a necessity forced upon it by the foresight and energy

the simple, naked proposition, "the reasons of the Se retary are satisfactory;" and they place before it a res lution that "the Bank of the United States ought not be 'rechartered." We all understand this, sir. It is piece of generalship to throw forward the strong win and reserve the weaker; and, if a majority of this Hour move according to mere party tactics, they will whe and face, as the order of the day requires. But if, as hope, and would fain believe, they regard regard the interes of their country before even their party allegiance, w they not pause and inquire, "Why should we vote( this proposition?" The bank is not before us asking recharter; we do not know that it wants one; we kno

of the new Secretary of the Treasury is now, with cha- the President says he will never sign one. What use racteristic impudence, set down to the account of its own there in saying we won't grant one? Such a declaratio liberality and forbearance." won't bind our successors; why should we volunteer So much for the Apocrypha of Amos. What have we bind ourselves? "The Government" very natural in the last political epistle of Andrew? wishes to commit us; but why should we suffer ourselv

"I am happy to know that, through the good sense of to be committed by those whose maxim it is not to cor our people, the effort to get up a panic has hitherto init themselves? If the deposites must not go back, failed, and that, through the increased accommodations the administration go on with its scheme of State bank which the State banks have been enabled to afford, no Let us see how it will work. If that fails, let them try

public distress has followed the exertions of the bank; and it cannot be doubted that the exercise of its power, and the expenditure of its money, as well as its efforts to spread groundless alarm, will be met and rebuked as they deserve."

specie currency if they like; but if that too fails, let at least have still behind one experiment which has be tried and has not failed--one measure upon which we act untrammelled. This would seem to me the natur and proper course; but, as it might be said that I soug Now, it is admitted there is distress--there is a panic; to shun a question which I am perfectly ready to re but the justification is, "all that break" "ought to as there is a portion of the House who believe the reaso break." of the Secretary unsatisfactory, and yet think the bat What is the true state of the case? Congress retained ought not to be rechartered, and as my only choice the entire control over the place of deposite: original, modes is to enable every gentleman to vote upon when in session; appellate, when the Secretary decided, precise proposition on which he wishes to vote, I da for urgent causes, in the recess. His reasons were to be move to lay the first resolution on the table. I pre submitted to Congress, that they might approve or dis- having a vote upon the distinct question of the suffice approve. If they approve, they will proceed to desig-cy of the Secretary's reasons, the very question wh nate another fiscal agent; if they disapprove, no further was referred to the committee; the question which

MARCH 18, 1834.]

The Public Deposites.

[H. or R.

committee have elaborately argued, and which it be- The operation of this measure was, undoubtedly, comes the House distinctly to decide. The remaining severe in many of the collection districts; particularly in questions presented by the report, without the tedious- the States where the banks, preparing for the resumption ness of a formal examination, have been incidentally dis- of coin payments, had so reduced the issues of their pacussed. The propriety of continuing the deposites in the per as to render the circulating amount insufficient for State banks, by the condition of the country, the curren- the demand. But it was not in the power of the Treasury cy, and those banks themselves; the proposed inquiry to dispense with the general rule. If notes not circulating into the causes of the distress, by a select committee, was at par had been received in one district, they must have once offered by myself, and voted down by the gentle- been received in every district; and there existed no mode man at the head of the committee and his friends. It is of discriminating between notes to be received and notes now proposed to connect it with other topics, the obvious to be rejected, either as to the bank or the place at which effect of which is to increase the public alarm, and to they were issued. The inevitable consequence must have give color to the charge of corruption, so that Congress been, that the duties and taxes would every where be may adjourn and the experiment may proceed. paid in the most depreciated paper; and that the medium We are told this "experiment" will not be abandoned thus received, could never be employed to discharge the whatever may be the consequences, until it has been demands upon the Treasury even at the places of receiving tried and fails. it. The revenue would accumulate in the Treasury, only And what sort of experiment is it? The President to perish there; while the expedient of substituting Trea

has the agriculture, commerce, manufactures, and constitution of the country, with a large portion of the fortunes and happiness of twelve millions of people, in his crucible. It is on the subterranean fire of the palace, and we can all discern through the smoke, what alchemist it is that promises to extract a metallic currency out of misery and ruin, and to restore the golden age. The cries of the wretches whose substance is consuming in this witches' caldron, are drowned by the attendant spirits in bursts of mocking laughter, mixed with taunts and bitter irony. One gibbering elf traces a caricature upon the walls, and calls it "panic day." A voice of unearthly music, sweet and scornful as the accents of archangel ruined, sings in the sufferers' ears, the scoffing exbortation, "Groan, sinners, groan!" while the guardian angels of the Treasury, unable to be heard amid the din, hold up a mighty scroll labelled "Bank investigation."

SPEECH.

DOCUMENTS REFERRED TO BY MR. WILDE IN THE PRECEDING Extracts from that part of Mr. Dallas's report, entitled "II. A view of the fiscal measures during 1816."

sury notes to meet the public engagements led to an indefinite augmentation of the national debt.-Pp. 6, 7, 8. Again, pp. 9, 10.

3. The Treasury has been involved in the difficult and delicate task of designating the medium in which the warrants drawn by the heads of Departments should be respectively paid.

The revenue is collected throughout the Union, but the amount of the collection is very different in different places; and it has happened, not unfrequently, that the demand for payment was the greatest when the means of payment were the least.

4. The Treasury has been compelled to increase the number, and extend the range of banks employed as the depositories of the public revenue, with consequences unavoidably inconvenient and injurious.

As soon as the differences of the current value of bank notes were introduced, and particularly when one bank refused to credit, as cash, a deposite of the notes of another, the Treasury was driven to a choice of expedients; that is, either to take the hazard of the accumulation of masses of revenue in the hands of the individual collectors and receivers, or to recognise as places of deposite the banks (being, however, banks of unquestioned solidity,) established in the districts which were most affected by the course of exchanges. Many powerful reasons led to

In various communications from this Department to Congress, the injurious effects of the suspension of payThe its in coin, upon the administration of the finances, an adoption of the latter measure; instructions were issued have been anxiously represented. For the immediate to the collectors and receivers to act accordingly; and ject of the present statement it is proper to repeat some the number of banks thus necessarily employed by the Treasury, from Maine to Louisiana, may be stated at nine

of them.

1. The Treasury has been compelled to accept the pay-ty-four. trent of duties and taxes in the local currency of the respective places of payment.

To the inconveniences incident to this multiplication of the places of deposite, was added the complexity inevitaThe comparative value of the local currencies appear- bly arising from the various kinds of paper in circulation ed, in some degree, to render this course of payment un- as money, upon some of which minute calculations were Pal; but the alternative was either to adopt it, or to required. Generally speaking, the Treasury has with each abandon the hope of collecting the revenue in any con- bank four accounts:

vertible medium, for satisfying the public engagements. The rule was, therefore, declared that the Treasury would receive and pay, in the notes of banks circulating at par, at the respective places of receiving and paying. For a time, the test of the fact, that the notes did circulate at par, was the agreement of the banks employed as the depositories of the revenue, to credit them as cash in the Treasurer's accounts. But when the principal banks with drew that accommodation, and refused to credit as cash

An account of cash, meaning (in the absence of coin) the local currency.

An account of special deposites of bank notes, being notes issued by banks, other than the depository. An account of special deposites of Treasury notes, bearing interest. An account of deposites of small Treasury notes, not bearing interest. Owing to this untoward condition of the machinery for

ny bank notes but those which they had themselves re- the collection, custody, and distribution of the revenue; spectively issued, the fact of the circulation at par was to the great extension of the business of receipts and excessarily left to its own notoriety, and to the official re- penditures; and to several accidental causes; the punctual posibility of the collectors. Few notes, except the statement and settlement of the Treasurer's accounts have Butes of the local banks, continued to circulate at par; not been found practicable.

and such as did so circulate were received by the banks pon special deposite, for safe-keeping: constituted a scredited fund, upon which the Treasurer could only ocasionally draw.

*

*

*

*

*

The successive attempts made by this Department to relieve the administration of the finances from its embarrassments, have been ineffectual.

H. or R.]

The Public Deposites.

[MARCH 18, 183

T

There was no magic in a mere Treasury instruction in partial resumption of coin payments, at this time, whi the collectors of the revenue, which could, by its own will not be more forcible against a general resumption, at virtue, charm gold and silver again into circulation. The times. But it is impossible to pass from disease to beal people, individually, did not possess a metallic medium, without some suffering; and the banks cannot expect and could not be expected to procure it, throughout the recover from the disorders of the present banking syste country, as well as in the cities, by any exertion, unaided without encountering risks and impairing profits. by the banks. And the banks, too timid, or too interest- rejection of the proposition has, however, constrain ed, declined every overture to a co-operation for reinsta- the Treasury to limit its exertions to preparatory arrang ting the lawful currency. In this state of things, the ments, for the general collection of the revenue in t Treasury, nay, the Legislature, remained passive. The lawful currency, after the day prescribed by the Leg power of coercing the banks was limited to the rejection lature.

of their notes in the payment of duties and taxes, and to the exclusion of their agency in the custody and distribution of the revenue; but the exercise of that power would not generate a coin currency, although it would certainly act oppressively upon the people, and put at hazard every sum of money which was due the Government. Until, therefore, a substitute was provided for the paper of the banks, it would have been a measure of useless and impolitic severity towards the community, to insist that all contributions to the expenses of the Government should be paid in a medium, which, it is repeated, the community did not possess, and could not procure.

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B.

Extracts from the reports of the Delegates of the citize of New York, Philadelphia, and Baltimore, relati to their interviews and conversations with the Pre dent.

NEW YORK COMMITTEE'S REPORT.

The New York delegation addressed him: "You a aware, sir, that we are a delegation from mechanics a artisans of the city of New York, to make known to t Government the pecuniary difficulties under which t citizens are laboring at the present time." "Well, wh

The result of the proceedings of the last session of do you want? What would you have me do? What do y Congress has justified the opinion, and realized the hope, come here for? Why don't you go to the United Stat which were formed. The establishment of the Bank of Bank? Go to Nicholas Biddle!" His manner was agitate the United States will open the sources of a uniform cur- expressing impatience and anger. We replied, that rency, independent of the State banks; and, as the peo- were not authorized to make application to the bank, b ple will be thus supplied with a medium which can be to the Government, for an amelioration of our suffering used for every public and private purpose, the peremptory To which he replied: "I have been applied to by co requisition of the resolution of Congress, for the collection mittee after committee, from New York, Philadelphi of the revenue in the lawful money of the United States, Baltimore, and New York again; one, two, five, seve after the 20th of February, 1817, becomes at once just, politic, and practicable.

and you are the eighth. I have dealt openly and candid with all; you have seen the committee from your citythey could tell you my determination. I told them, an

As soon as it appeared, upon a reasonable calculation, that the subscription to the capital of the Bank of the I now tell you, I never will restore the deposites; 1 United States would be filled, a proposition was offered ver will recharter the United States Bank, or sign a cha to the consideration of the State banks, for commencing ter for any other bank, so long as my name is Andre the payments of small sums in coin on the 1st of October Jackson."

next, upon the principles which, with the approbation His energy and his anger increased as he continued of all the members of the administration, were stated in speak. We replied, that we did not come to ask the r the report made to the President on the 24th of June, charter of the United States Bank, but merely to decla 1816. The terms of the resolution of Congress seemed, that our complaints did not orignate in fiction; and tor indeed, to require from the Treasury Department an quest from the Government the adoption of some syste effort to facilitate the restoration of the lawful currency, which might tend to restore mercantile confidence. I even before the 20th of February, 1817; and, short of a asked, "How am I to do that?" We replied, that we we general return to that currency, nothing was thought not instructed to dictate to the Government what to d more likely to be acceptable and useful than the proposi- but we looked upon the want of a good understand. tion in question. But the effort has failed. The State between the President and the bank, as the great cau banks, with few exceptions, have deemed a partial re- of our present embarrassment. At this he became sumption of coin payments inexpedient; and the banks of cessively agitated, rose from his seat, and shaking | the Middle States, (New York, Pennsylvania, and Mary- finger in an earnest and threatening manner, said "In wil land,) have intimated that the 1st of July, 1817, will be way have I produced it?" To which we replied, "You the proper period for resuming the banking operations on formed Congress, in your official communications, the basis of a metallic capital.

you did not believe the bank was solvent; that it wou

The rejection of the Treasury proposition is regretted. not be able, on winding up, to pay all demands aga Upon principle, there is no good reason why a debtor it." The President replied, "I did so, and say it now should not pay a part of his debts, although he cannot pay will not pay all; it is a corrupt and abominable institut the whole; nor why he should refuse to pay his small buying up presses, and interfering with elections throug debts, because he cannot pay the large. Upon experi- out the country. It has violated its charter repeated ence, banks (for instance, at this epoch, the Bank of We answered, that the business portion of the citizens England,) have been in the practice of paying coin for New York, we believe, view it in a different light; b their notes of a low denomination, while they refused that if the bank has violated its charter, the laws point out kind of payment for notes of a high denomination. And proper course to be pursued. Here his excitement upon policy, it is clear, that the payment of small notes in sumed an extraordinary shape, his whole frame trembl coin would soon beget confidence in bank paper of any with agitation. "Well," said he, "have I not pursued amount; and, consequently, render a general payment in ful measures?" We answered, that the charter author coin easy and safe.

The quantity of small notes abroad; the probability of a run through that medium upon the banks; and all the terrors which bankers and brokers may feel or imagine, will furnish no argument against the proposition for a

the President to issue a scire facias, but we believed course had not been pursued. He answered, in a ve ment manner, "It may be, however, before the affairs the bank are wound up."

He became too angry now to hope for any good gro

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