7 SPEECH OF ON THE bAnK of THE UNITED STATES, ' House of IIepiiese]n-tatives — March 2, 1832. "FiiG following resolution, offered by Mr. Clayton, bein^^ under . ' .-islderation — Jl:solved, That a Select Committee be appointed to examine into the affairs tiie Bank of the United States, v/ith power to send for persons and paperSs^ and to report the result of their inquiries to this House. Mr. CLAYTON rose, and spoke as follows: — Mr. Speaker: In the discussion of this resolution, a very singular contra- diction has been presented. My motives have been arraigned in opposition to the express admission of gentlemen, that they believe nothing unfair, on my part, was intended by its introduction. While 1 am honorably acquitted of any political design, it is nevertheless urged that the sole object jf this inquiry is to defeat the renewal of ihe charier, and thereby save the President from the necessit}^ of meeting the question at this session. In seasons of strong political ex- ( itemcnt, where men and not measures regulate the conduct of pub- lic functionaries, very little credit is given to the pledges of any one; and I am av.^are that i place myself in a very delicate situation, whezi I attempt to vindicate my motives by such a resort. But I think ii;e gentleman from South Carolina, (^Ir. McDuflie,) v/ili bear me j^ut in the declaration, that long before I carae here, my opposition ii) the Bank was as decided artd well known in the country we re- present, as his own advocacy of that institution. I h.ave been writ- ing against it for the last seven years, and, as he well knows, have not even spared his own far-famed rep.ort. It v.'ould be something very remarkable, then, that under tiie lirst and only occasion where \ could raise my ofticial voice aoainst it, 1 should be found dumb and unconcerned. From tise part 1 have heretolbre ti^keii, and the just: expectation which that coursa has inspireiU T were I to re- "uain mute on this occasion, lay myself iahiy <.!.■>. r;xicHis to the sus- ■/icion that somv: sudden charyn had spelidw-.:];:'] !;:v -peech.' Whr?; i perceive gentlcJiieji air?rn:;::u- v>-'''; ■■■■■ ■ .. . - r i- i'liporlant to 1';^ ^ ' ; ' 'w:-.-. , : ' it IS unfair and ungenerous to assail it upon political consideration.^', and that the present measure is intended, not so much for the pur- pose of faithful inquiry, as to avoid the exercise of honest responsi- bility, I stand ready to declare, by every sanction imposed under the highest solemnity, — nay, by all my hopes of peace here or here- after, that my opposition to the Bank is founded upon its sole, sepa- rate, naked, and individual unworthiness, unconnected \vith any consideration save the damning influence it has already exerted, and will continue to spread over every interest in this young and growing country. But, sir, if gentlemen choose to consider the question as contain- ing some lurking mischief, and will not believe any thing else, I am willing to put it upon that footing, and, foul or fair, we can have no- thing to dread in the investigation of the subject. Are gentlemen altogether pure themselves in this matter.'* Is every thing fair and honorable on their part.^ Have they no political designs in urging the Bank question at tliis time? They sliould take care in persist- ing to ascribe improper motives of conduct to those who were favor- able to the resolution, that they did not betray their own secret springs of action. The suspicion %vas much stronger against thems and I shall take occasion to exhibit the proofs, if you will press into this subject the Presidential Election — -if nothing else will do— if the Bank is anxious to measure arms with the President, we meet, you at once; and, without mincing the matter, — without palavering about disinterested views, and honorable intentions, and all that sore of thing, which may suit any other Congress but this, we come di- rectly to the point, and affirm, that the friends of the Bank are justly \ chargeable with the first movement in this matter, under a political influence and for a political purpose; and we will defeat them, if we can, in that object, if for no other purpose but to save the Govern- ment from the disgraceful control of this dangerous idol. It has been distinctly avowed, that the only mode of saving the charter, was to connect it with the Presidential Election, which this resolu- tion was calculated to prevent by the delay it would occasion. It seems to be the prevailing opinion of th» friends of the Bank, that the President is afraid to meet the question, and therefore it is a great object with his friends to ward olF the proptosition for rechar- tering it at this session. Nov/, if this were true, it would be no more than just that cunning should be caught in its own snare. But I can assure gentieman they are greiitly mistaken: first, as to the firmness of the President; and secondly, as to my ovvu views in pre- senting this resolution. Docs any man fiatter himself that the Pre sident wishes to waive this question? Ti;e man who has iov tw(> years past urged the consideration of it upon Congress, that the people abroad should understand something of the nature of an in stitution 01 such vast powers, before they gave it another being I the riian who has never slirii ok from any danger, eitlier moral, politic;i]- or physical; : Will the man who has riskeil his li!e for his country, m a hundred shapes— who wiUiugly exp/>S£d it atTaledega, Smucla. 3 the Horse Shoe, study, at this late day, to preserve his popular-^ ity for the sake of an office that can add nothing to his fame? Will \\\e hero of New Orleans, who met the pride and strength of a tri- mnphant European army, and as triumphantly laid it low, — who tnade civil and military authorities bend to that result, and defied all responsibility, now tremble at the prospect of meeting a question about which half the people know nothing, and the other half care nothing? In addition to all these tests of his contempt of death, when his soldiers in the Seminole expedition were on the very point of starvation, so that they were compelled to subsist on acorns, and til the anguish of their suffering, declared they could hold out no longer, and v/ould desert him — will the man, who on that occa- sion, flung himself from his horse, and presenting his bosom to thosS famished troops, declared, if they separated they should first pass over his dead body, be afraid to meet such a mere pop-gun as a bank charter? Depend upon it, gentlemen deceive themselves— greatly- deceive themselves, if they believe Andrew Jackson is composed of 8uch stuff. Besides, the opinions expressed by the President would he those of the mass of the people, had not suih infinite pains been taken to mislead them by dependent debtors, hireling presses, and interested speculators. As to my own course, it is actuated by no party devotion to the President. I have come here to attach myself to no party, except that which shall relieve the South from its most intolerable burthens; and on that account 1 do not agree witli the President on all points of policy. I regret to say the President is too much of an American Sysfem man for me; but I take pride in saying, I admire him for his independence, I honor him for his in- tegrity, and I greatly venerate him tor his services; and for myself, t hough anii-tarij/'m principle, am v/illing to support the President's general policy, and in this respect I am confident I express the ge- neral feelings of the South. So much for the political n>jtLVes that belong to the introduction of this resolution. Let us now inquire into the views which so suddenly determined the frienLi- of the Bank ;o bring forward the m.easure of renewing its charter at this time, since gentlemen court this discussion. In the month of Septerr.be'j ♦ast, the stockholders ol the Bank held their triennial meeting at Philadelphia, and down to that time no cause appeared, though they had fully examined all the aiTairs of the Bank, which could make \t necessary to apply to Con^^-ress for a reincorporation. On that oc- casion, if any good reason ijad presented itself to t:ie stockholders tor rechartc^ring the Bank at this session, does not every onebelievi^ important a matter would have been concluded u|ii)n? But wha" -.iid they say at tiiat time? Let me read it to the House. Say thev, ••The charter of the Bank will expire on the tJnrd of MarcJil ISSi;, and tliere will consequentiy be (;>zs tri.mnial meeting after liio present, and ilixLt at a point of time t.ao near the expiration of li;- present char-ter, to authoriz.e me^isures in vep^ard U) its renewal. ] iS fit, that b-efore that meeting, power shanhJ given tjo the Roard sary, and so little was then thought of the mattei-> that when so much of the President's message as related to the Bank was proposed to be referred to the CommitteQ of Ways and Means„ the chairman of that committee said it was unnecessary to make such reference, for no report would be made at this session on the sub - ject, unless the Bank applied for the renev/al of its charter: anil there the matter rested. As a great objection to the resolution oi inquiry, it is nov/ urged that it is all important to have early actioi; Tipon the subject of rechartering the Bank; — delay will be fatal to it. This resolution comes too late; it will defeat the Bank of its char- ter; nothing can be so important to stockholders as to know what Ihey have to rely on. And can it be possible that gentlemen are serious in such declarations.^ What! the stockholders not anxious about the matter in September last- — left the v/hole matter to Wx^i Difectors— ihey unprepared and indifferent about asking this Con- gress for a new charter at its meeting in December— send an ageni here, who remained siii weeks v/ithout ever broaching the subject tc Congress— who returned home,, and then sent on a slmrt memorial f hat does not contain one solitary reason why this Congress rathei f'iati any other should act upon the subject, that now it is all impor- tant for e«f/?y ^/cf'? op? / Wonderful! No; the truth is, the agent i Lave mentioned came upon a veconoitering expedition, hung v!ifouii.l the skirls of the. camp, and would occasional! j wait ypon Dolitical meeti'a!>;s, commonlj called caucuses, and, after coim^mg- noses and concerting plans, popped off to Philadelphia—and lo! on rame the memorable memorial which now reqiures such ''early ac- tion," and is doomed to destruction if it meets with any delay I Oin v/hat inetlable modesly is here, my countrymen! This is the key to the imputation of political management. Gentlemen who have brought it forward against the side I advocate, are conscious of their own principles of action, and are carefully endeavoring to fasten ^upon me what belongs to themselves. I beg leave to be excused. I htive been to no private political meeting about this resolution, and that is more than can be said on the other side in relation to^ the Eank. I go no v/here but from my lodgings to this house, and from this house to my lodgings; and, coming or going, I am never in a caucus, unless the promiscuous throng that attends this place may sO be called. I have the further testimony of some six or eight honest true hearted Slate rights men, with whom I live, that will readily aOirm they know ali my movements; and so far from having secret meetings, our every tliought and action is laid open to the world in terms of constant detestation of that plundering system that is so fa- tally destroy i rig our constituents. As to the" objection made by the gentleman from South Carolina, (Mr. McDuftie,) that this resolution comes too late, and v.'ill, if its 4)bject is attained, defeat the rechartering of the Bank, it has been most ably answered by my colleague, (Mr. Foster,) yesterday. 1 will only add, that this objection comes with a bad grace from the honorable Chairmail of the Committee of Ways and Means; for he had not reported the Bank bill ten days, before I introduced my re- .soliilion. I arrived here, Mr. Speaker, on the SOtli of January, and found the subject of die Bank in the care ajul keeping of the Com- mittee of Ways and Means, and there it remained until the of 10th Februal^^ In all this time, it would have been very indecorous in me to agitate a question that was then under the consideration of a standing committee of this House, whose report, whether favorable or not to the Bank, could not well be knovv^n. There might have been no use for my resolution, though I candidly own I never had any violent misgivings on that point. So it was, I thought it my duty to wait for the report. And this was the more necessary and proper in me, for strange as it may appear, I heard it whispered 4iboat, that, for a neiv member, I had taken rather an early start in the vv'ay of debate. Let this be as it may, I care nothing about it, and should not have meijtioned it, but I wish to show my consti- tuents the aristocratic and monopolizing spirit of the times — the dangerous tendencies of this Government to exclusive privileges. L presume this is a part of the American System and new members are to have no share in the discussions of the House until they have served a regular apprenticeship! From this monopoly I aiso choose to dissent. On the 10th of February the report was made, and as fioon as I learned tliat it ^vas favorable to the Bank, and I could in= 6 troduce my resolution, it was done. Of the manner in which it wa§ assailed I think I have just reasons to complain, though I may be mis- taken as to what is, or is not, allowable by way of trick in this House. [ will repeat, for the information of the people at large, how thispiain, fair and reasonable resolution was treated, and if there was nothing wrong in it — if it betrayed no want of respect for such an important an 9 vjager to fix the counn-j under another terin of bondage to the most inexorable tyrant that can ever possibly sway its sceptre in this country? A dominion that strikes at the very subsistence of every man in the nation I Can we who have been sent here to guard every interest of the commanlty, who are well paid for our services, whcf are provided with every comfort and convenience for our delibera- tions, consistently excuse ourselves to the country if we flinch from a duty demanded by every cctnsideration of prudence and caution, because it may be attended with labors and delay, and because that delay may work an injury to a highly favored few? As to the pas- sage of the resolution there is not a person in this House more indif- ferent to its fate tiian myself. I care not whether it is adopted or not. The consolation remains to me, and with it I am amply satisfied, that in submUting it to the House I have discharged an honest duty. It is nowv lef c to others to do with it whatever they may think pro- per. Having made these preliiiiinary remarks, I shall proceed more immediately to an examinavion Oi the argument mads by the gentle- man, [Mr. McDuffie,] from South Carolina. Before, however, I proceed to this branch of niy subject I hope I may be allowed to make one remark, intended by no means to give oSence. Some- where in the gentleman's observations he said he v/at> glad he had quit the pro Fc'SiO)! ofliw but I can assure the gentleman the pro- fession ofiawh;-;: not f;uit him, for a more lawyer-like speech I pre- sume h'^ in his life. And when I say this. I have cv- ierencv inge^VL^ty, which, being the offspring of a sudden "e.-ses it: -if more to the fancy than the judg- ment, ''th a qi;' and Hurrying action seems to say pres ; , \ . i vone. I (Iw 1 ' \ i ^ ^'^dly into the merits of the Bank question at this rime, I lu>pe;:-n -i.. other occasion, to probe that matter to the very bot'oni. I mc wish to explain the nature of the charge;^ wliich I have brou.yh: a-^rainst the Bank, occasionally throwing out such reflections as are obviously connected wdth the facts, and well calculated to stamp those facts upon the mind with a steadfast and abiding impression. A few of tho?e general ideas at this part of our discu'ision v/ill not be unprofitable, especially as I design what I am now Pcbout to say more for the public ear than for the b^nent of this- House. I xnW candidly confess I am extremely anxious to use my present station to speak to the people on the subject of this destroying Bank, and to urge them by every c(msideration which can forcibl) appeal to the love of country, to a regard for their government, to a respect for liberty and equal rights, to their hatred of monopolies, to their disgust for extortion, to their horror of oppression and theit detestation of privileged orders in this happy country, to pause be- fore they permit the continuance of an institution involving withiii its influence and control all the foregoino; relations. The Bank of the United States, so called, to give it the advantage of a great name, is located at Philadelphia, and has twenty-seven branches scattered throughout the Union. The whole of this immense 10 iTioney making machine belongs to a few privileged individuals, who tiave an express assurance that no similar establishment shall be erect- ed by the General Government in the United States. These are some of the leading general principles of this institution. 1. The mother Bank will not receive the bills of her branches without a premium. 2. The Branches will not receive those of the mother Bank with- out the same. 3. The Branches will not receive t^e bills of one another without the same. Now what is the consequence of this? These favored few have a monopoly of all the monied transactions of the Union. Their capital is 35 millions of dollars, and this they lend out at a certain interest and then set out agents to shave their own paper. They first make a profit by lending their notes and then a profit by paying them off at a discount. Can any practice be more dishonest. If an individual by reason of his wealth were to do this, vvere to impose upon the necessities of his poor neighbor to whom he had given his note, by shaving it af- terwards, he would be justly esteemed a dishonest man. The fact is, there are principles allowed to this Bank which the consent of all honest men have branded with infamy when- ever practised by individuals. And it is permitted to do that with impunity which a sound morality has universally condemned in the ordinary transactions of men. But the most intolerable privi- lege is yet to be told; not satisfied with being allowed to lend and shave their own notes, the government actually puts into their pos- session the whole of its revenues, amounting to twenty-five millions of dollars to speculate upon as they may think proper. There is scarcely any man who does not know that under our system of taxa- tion the most of it is paid by the consumers of the country, and they are generally the farmers. Commerce forms the subject of revenue which the merchant i?? the first place pays, but which he afterwards compels the consumer to re-imburse v/ith an increase of profit. All this flows silently and imperceptibly into the Custom House and the government not satisfied with having exacted it from the hard earned labor of the consumer, by reason of a most ruinous duty upon the articles of h4 consumption, but they must suffer it to pass into the hands of a few highly favored stockholders to undergo an additional process of extortion. If the Collector of the revenue, the public officer of the government, were to lend out the taxes and speculate upon them after they were collected, for his own private benefit, every body would cry out shame upon such an officer, and he would be hurled from his post with just indignation. And yet the govern- ment directs him to pay the taxes into the Bank of the United States, and the moment it gets there, it is set afloat m all directions upon lending and speculating contracts, and these Bank gentry realize not less than six, and often as high as twelve per cent- upon the bui-- Ihens of the country thus drawn into their coflers. Let us illus- trate bj a fiimiliar, but striking example this process of extortion. 11 The Collector of Charleston receives from the merchants, and thej . from the consumers of South Carolina, one million of dollars in re- venue, be dare nor use it himself in any mode of speculation, but is obliged to deposit it in the Branch Bank of the United States at that place. That Bank then writes a short letter in true mercantile style to a sister Branch, say in New York, something like this — '^Have to advise you of one million to credit of government (the hard earnings of the poor Carolinians) value at sight, and expect due honor/- This is enough, a draft is drawn in favor of some cotton buyer who ^^ ants funds in Charleston at from one to two per cent, and the Branch at New York makes right ojf from ten to twenty thousand dollars from the Aniericun Sy stem screwed hard down upon the honest Carolinians- At the same time the same Branch at New York in- forms her sister Bank at Charleston^ that she too has ''ten millions taken in like manner, which can be drawn for in favor of merchants of Charleston, who want to purchase go jds in New Yo.k:"' accord- ingly it is done, and the Charleston Branch '-pockets^' from one to two hundred thousand dollars more, by what would be called on the turf "cress jockying." And thiis operation is continually going on be- tween the mother Bank and her Branches, all over the U. States, upon twenty five millions ot government money. It is so mean and ridi- culous a species of legalized swindling that while it resembles, ii is even v^ orse than the knavery of the two Dutch lawyers practised upon iheir unsuspecting clients when one of them v.-rote to the othor, in true Dutch style: " I haf von fat goose, I saiind you anoder You pluck de von and I'll pluck de oder." • Most people kriow nothing of the oppression and grinding esac - tions thataie spcr. tly but constantly operating upon the community by means of t' .. monopoly granted to the Bank of the United States. Should not Congrvi^ss then hesitate and examine, and examine and hestitate 1; ng, very long before they perpetuate such a blight upon - iie nsn^g pi\)?penry of this vasr aiid growin2: country? With a >it v. t!- an tst tiie mad career into which the Bank is plunging its votaries, the strong direction of vrhich is U) go in, blind fold, for its re-establishment. I have preferred the charges so anx- iously sought to be evaded, with a hope that enough will be found to cool dovv'n the ardor of its most fastidious advocates. To these charges I will umw call the attention of the House. ,The first is, 'Hhe issue of r,000,000, a:.d more, of Branch Bank orders as a currency. The President of the Bank admits seven millions issued." The gentleman ^rom South Ca-olina asks, '-what is this charge? That the Bank has forfeited its charter! And how has it forfeited it.^ By doing that svhich the charter itself, in terms, authorizes it to do: b\ issuing ijilh of exchange:'^ The very object, he adds, for which the Bank was instituted, its most important and beneficial operation, •'the dealing in exchanges.^'' Now, idle as he conceived the charge, I find that he and thePrssident of the Bank are at points as to th^s 1^ character of this currency, and if he is right, the Presiderit is wroni^ and coiisequentiy has attempted to impose upon the government fh accounting for this issue. I hold in my hand a correspondence be - tween the President of the Bank, and the late Secretary of t\w. Treasury, Mr. Rush, on the subject of this very currency. One of the receivers of public money, in the west, had vvTitten to Mr. Hush to know if he should receive these orders in payment of pub - lit debts. Mr. Rush immediately wrote to the President of the Eank to explain the character of those drafts, so as to enable the Department to judge how iar they may be legally received in pay- ments to the United States. To this enquiry, the President an- swered .••—"You are aware that an expression in the Charter of the Bank, has been construed as implying that the notes issued, should be signed by the President and Cashier.'' Though this is the ex- press and unet'uivocal direction of the Charter, which no sophistry can evade, yet the President thinks it was a wrong interpi etation, which would "-greatly impair the usefulness of the Bank, but having been adopted, it was deemed inexpedient to depart from it without a previous applicAtion to Congress." The application was made 'Ho authorize the signature of notes by other ofiicers than the Pre- sident and Cashier," and was promptly rejected. The President then states that, having made a "full exposition" to the govern- ment, of the inconveniences under which the Bank labored, and perceiving no prospect of avoiding them but by its own re- sources, the institution found itself in a position where it became ne- cessary either to repMimce the great purposes of its creation, or to seek, among its other acknowledged powers, the means of accom- ■plisiiing them." Here it will be necessary, to keep distinctly in view, that the great evil complaiiied of Vv'as the want of an authority to sign bills by other than the two principal ofiicers of the Eank, antl i\vAt the bills thus wanted vv'ere small bills for a ''circulating medi- um," (not bills of exchange) as the President expresses it, and which circulating medium "was defeated by the absolute and physical im- possibility of preparing the notes agreebly to the prevailing inter- pretaiion of the Charter." - Now, v/ith this idea present to the mind, let us see what was done. The President continues: "To remedy this evil, the officers of the Bank might have adopted the use of a fac simile. But to this, there was the insuperable objec- tion that the signature was not, in fact, what it professed to be, the manual execution by the officer in the accustomed fornj." In otlier words, it would not be signedhj the President and Cashier, as is indispensably required by the Charter. So far so good, would theytiad been as mindful of the Charter in other respects, but we shall see presently, careful as they were of this instrument in this particular, they violated a provision of it which actually lay along side of this very requisition. Bent then upon a remedy which shouki effect a double purpose, that of curing the evil in their own way, and treating Congress with contempt for rejecting their proposition,, ^nd without showing the right "among their acknowledged pow- 13 r'cs"' vvhicli they said iliey could find, Aa- i^^suinii; these check?, thej resclved upon doiiii^ it all hazards. FeariVd, however, thiat it miglit make some stir in the conimiuiity, they deterniined to have the measure bolstered up, bywiiat? Not an actor Congrt.is, Not a permission by the people tiu cugh their representatives, but by the of three distinguished lawyers I *^In adopting, (said the Pre?ident.) a neio measure, it was tlusiij^ht most pradent to proceed ^.vith great caution^ and to_obtain the sanction of the highest pro - fessional authorities! The subject has, accordingly, been siibmitted TO Mr. Binny, Mr. Webster, and Mr. V/irt*'! Merciful heavens! ihie powers of this great government in the keeping of lawye-s ^ nights acquired, charter enlarged, powers extended by legal <;pinions! The opinion of Congree^s not equal to the opinion of Mr J jinny, Mr. Webster, and Mr. Wirtl Nov/, Mr. Speaker, if tiiei-e vvas no other ground of suspicion than this very case, against the Bank, vvould you not, from sheer curiosity, like to have a peep inta i heir books to see what tliey gave these very genllemen. for thi^ very opinion? They acquired a great power by it, it must, there- ';')re, have been a tremendous feel But one thing I believe, if 'ivise gentlemen are like most lawyers, the Bank can have that same opinion reversed, whenever it suits their interest, for the same fee, let it be great or small. These advisers said they '^were unable to r the paper issued by the Bank," and that if received on account v,\ (he government, '-tliey elfectiially bind tl »• Bank, and vrill be paid "m the same manner as notes of similar deaorninatio:vs r:lo:nc I bv t!;e President and Cashier," satisfied the Trear-".rc". 'k\ rnvl. f jr ho replied to the President tluit the Receiver.-: ' . •• ;,v , ■ake them, inasmuch '-as you state t\\-:y v \\\ i ; ' ^.-.m-? n;anner as notes signed by the Fieri!:'^ ■ • ' _ 'V'.: H -; rciiectioDS that suoay^-f j i5eiv'> u;;.>u :! . : : :r\o\u]::\:. >■ ar^j fnese: if this was issuing ''bills of exchange'^ or '^dealing in ex^ changes" in terms of the charter, wherefore the necessity of going to Congress for another remedy and as it has answered such a wonder- ful purpose and saved them from ^'renouncing the great purposes'* of the Bank, why not have adopted it at first by doing that which tlie charter itself, in terms, authorized to be done? Wherefore the doubts of the Directors that "in adopting a ne?^ measure it was pru- dent to proceed with great caution?''^ Why necessary to consult the highest legal authorities upon "the very object for which the Bank was instituted?" Why say they were intended for a ''circu- lating medium" if they are bills of exchange? Does not every one know that bills of exchange can never be a circulating medium i that the charter and laws which regulate their creation require that their march should be in a direct line and quick step to their place of destination, that there must be demand and acceptance, or refusal and notice, and whenever once paid they can never be re-issued? Why the doubt of the Tleceiver of Public Moneys ex- pressed to the Secretary of the Treasury? Why his doubt to the Pre- sident of the Ba!ik? And why the particulur pains of the President to satisfy him that they were made to resejnble and to answer the pur- pose of bank notes as a medium to supply the deficiency which a physi - cal impossibility of signing small bills had produced? But to put tliis matter beyond all doubt 1 have another correspondence between the President oi the Ea.nk and the present Secretary of the Treasu- ry, as late as last month, in which he expressly states "the branch drafts being in practice, substitutes for branch notes, are considered in all respects the sami.''^ So that I conclude they are not bills n,"that |;aititi]ig the bills blue 'ms tjie whole sMbstance of the char-?:!- ? ' If 1 tii-^ ight the gentleu'.an in earnest 1. would give* 'lis ar2:uineijt a seriaus consideration, but.as it is I will merely a>5k him v/hy tl\o.?le at any time not exceeding sixty (}a.ys from the date thereof.*' Here then is the law, the whole hvw and the only law, that relates to tlie Bank's pov/cr of making o; issuing Bills or Notes: if there is any other, let it be produced. Bv this, as, as I stated before, it will be seen t'hat though the Bank would not issue /ce simile bills, because they would lack tvinmanif- dl execuliDn of the President and Cashier, as required by the above section- -yet they could au'thiiriz.e other persons to SIGN the Bills, whose slguaturas"^ would be aciually a less cDmpliance with the law than ilia'sC of the/ac sbnile ! It is for the J^ank, and pevliaps it be- longs only U> the ambidexterity of a Bank.^ io recanGlle such iiion- sistency. 16 The <^econd charge is usury on broken bank notes in Kentucky Uiid Ohi )5 they amounted to S900,000 in Ohio, and nearly as mucl;t hi Kentucky. (See 2 Peters' Reports p. 527", for an example of the cases.) This charge, I fully expkvined in my introductory remarks, when Ihe resolution was presented. But the gentleman says he does not quite understand this charge, that there was a plea in the case, and a demurrer to that plea, that a demurrer is made merely to settle a principle and decides no facts. Now Sir, what does ail this mean, has the gentleman come to the point ? Is not his reasoning calculated to divert this House from the plain and obvious nature of the case } What is it } The Bank loaned a man by the name of Owens S5, 000, and instead of letting him have the hard money, or those bills that were equal to it, they paid him out depreciated Kentut ky bank bills, one hundreil dollars of which v/ere only Avorth lifiy-four of good money, and not satisfied v/ith this enormous profit they ir^ade Iiim promise tcs pay 6 percent, interest on the whole amount of S5000. Yihtn the note fell due they sued him and hi;^ securities, these latter plead the above facts in the case, and required of the court to say whether it was not USURY The Bank de- murred to the plea, th^t is, they admitted the facts, but denied that such facts would amount to usury. The Supreme Court declared that such iacts did amount to usury, and the Bank lost its money. Now we all know that if the facts could have been disproved, the Bank would have vvithdrawn its demurrer, and requested a trial by jury. This would have been granted in a moment, but knowing full we'll that the facts were true, she knew it would be useless, ;rad she has acquiesced in the judgment. The very note to the *:ase which the gentleman read, and which is nothing more than ;i gratuitous apology for the conduct of the Bank, made in t!ie great abundance of the Reporter's kindness for an in sfiiution situated in his own" City, shows clearly the truth of the. plea, and only palliates the fraud of the Bank by saying lisat the Bank had other bills like those she loaned to Owens, and that she got full pay out of the Kentucky Bank. This might be the case or not, but I rather expect he must Ijave obtained his infor- mation from the Bank, and if so it is not good testimony; but evei^ H" it was, it only goes to show that Banks can make debtors bleed when they have lost all life as to other creditors. It will not do for gentlemen to try to evade the force of this case; it is too stubborn, and 1 only adduced it by way of example to show the nature of their extortions ujion the .Jiecessities of the people. What they have sione to poor Owens, they have done perhaps to thousands, who havp no d(?abt sunk, they and their suffering families, into the most abje;: r 'and squalid poverty, i have stated that they lent out g900,000 of liK'e vnoney in Ohio, and nearly as much in Kentucky. I wish to km ^ if this be true, and cannot well ascertain it but by an examination into their affairs; and if found to be true, if Oicre is one honest ma)i in the world, mucli less in this boasted la.nd cdMiberly, that will sny this Bank should be re-chartered, then I confess I greatly mistake the human heart, an I my opinions are to be trusted only under due and proper caution. But, says the gentleman, -'this transaction happened ten years ago,'* and then continues: "this, it seems, is the day when all the sins of the Bank, for these sixteen years past, are be brought up in judgment. If the gentleman had gone beyond the year 1819, he n^ight have brought forward much higher charges than this." I coul I not possibly have asked stronger concessions than these against the Bank. The Bank was chartered in April, 1816, and never w-mtinto operation till January, 1817. From the moment it started, it began tofaulter, and in the short term of two Tears, according to the gentleman's own admissions, high charges could have been bnmght against it. Indeed such a confession has no inei'it in it, for I h;ive before me the record of a committee of this House, who were sent to examine it in 1819, and which affirms the fact that the Bank had violated its charter, and ought to be abolished c Of course, beyond 1819 I ought not to go, for up to that tim.e its best friends had pronounced it infamous. In looking for objections against it now, alt charitable accusers should date its misdeeds and search for its delinquencies subsequent to the day of its condemna- tion, and when, for the best interests of the country, it ought to iiave been executed. A pardon saves and forgives all previous -crimes. Then, it seems, in a very short time after it was released^ it was/ound at its dirty tricks cigain; for if this lending something like two millions of dollars at fifty per cent, commenced ten years ago, it is obvious to every one that the Bank was nothing profited by the trial it had received, and for aught that appears from that dav down to this, its \^ih. may be strewed with a thousand victims that may have fallen an easy prey to her cold and unfeeling rapacity. What better time can be selected *Ho bring up in judgment the sins of sixteen years," than at a time w^hen she asks another term of twentv Tears to revel upon the wants of 12 millions of people? Havin^^ shown its acknov/l edged misconduct for the first two years of its ex- istence — having shown a gross act of fraud shortly tliereafter — hav- ing brought to the view of the flouse the murmurs and complainta of the country against this institution, indicating a strong suspicion of at least improper conduct — knowing, as this house does, that the government has 7. 000, GOO of dollars at stake — knowing, too, how -Jeeply the community are concerned in this all-controlling establish » ment, and that if once more chartered, all tuture enquiry is closed, perhaps forever—is it, J put it to the candour of the House, unrea- sonable to ask for an investigation, and to v/arn the Le'>"islatiire tQ '-iiuae before they rush into a decision the mischiefs of which na future skiU or pruderire can repair? The tliird charge is ^he disguising of loans under the name of do- niestic bills of 0 A ch:'ri<;e for the purpose of taking more than at the rate of sis per cent. The gentleman t^sketi fi)r an cxplijnation ' f :h\3 charge, on a lbrm«:r Osj^asion, and when' gi^ren, said he beUc*-^4 18 it never could be made out, implying thereby if it could he, sad? cx)nduct would certainly be reprehensible. This, at least, then i? not one of those shadows that vanishes into thin air and consequent- ly deserves to be investigated. I will now make a fuller statement, and I think I am authorized to say that there are gentlemen in thi^ House trom the west, and under my eye at present, who will confirm every word I say. A person has a note in one of the Western Branch Banks, and if the Bank determines to extend no further credit, its custom is, w hen it sends out the usual notice of the time tlie nott falls due, they write across the notice, in red ink, these three fatal words, well understood in that country, ^'payment is expected^ Thie notice, thus rubricated becomes a death warrant to the credit of thai; customer, unless he can raise the wind, as it is called, to pay it oS*, or can discount a domestic 62*// of exchange. This last is done in one of two Vv'ays. If he has a factor in N. Orleans, w^ho is in the habit of re- ceiving and selling his produce, he draws upon him to pay it ofi at vnaturity. The Bank charges two per centum for two months^, the factor charges two and a half, and thus, if the draft is at sixty days, he pays at the rate of twenty-seven per centum. Ifhow> ever, he has no factor, lie is obliged to get some friend, who has one to make the arrangement to get his draft accepted. For this acco- modation he pays his friend one and a half per cent, besides the two per cent, to the Bank, and the two and a half'per cent, to the accep- tor, making in this mode of arrangement thirty-six per cent, which- he pays before he can get out of the clutches of the Bank, for thai time. Twelve per cent, of which, in either case, goes to the Bank, and so little conscience have they, in order to make this they v/iU subject a poor and unfortunate debtor to the other enormous bur- thens, and consequently to absolute beggary, for it must be ob- vious to every one that such a per cent, for money, under the melan- choly depreciation of produce every wherein the south and west* will soon wind up the aHairs of such a borrower. No people under vlie Heavens can bear it, and unless a stop is put to it, in some way or other, I predict the western people will be in the most deplora- ble situ^i)ii it is possible to conceive. There is another great hard- ship to'vvlnch this debtor is liable, if he should not be able to furnisii t he produce, or, which is sometime the case, if it is sacrified in the sale c)f it, at the time the draft becomes due, w hereby it is protested for want of funds, it returns upon him with the additional cost ©f ten li.er cent, for non-payment. Now, sir, that is what is meant by do- ihiestic bills of exchange, disguised as loans, to take more than six \yiv cent., for mark, Mr. Speaker, the Bank does not purchase a bill f f exchaiif^e by paying out cash for it and receiving the usual rate if exchange, w'hich varies from| to 1 per cent., but it merely de - livers up the poor debtor's note which was previously in Bank, and H-bat is worse just as well secured as the domestic bill of exchange vhich they tlius extort from him in lieu thereof. And while they «re {\m exVctiDg this ]jer cent, from him> they are di&coAj^tin^ biU& 19 for otliers^ ijot in debt to them, at the usual premium of one pes cent. The whole scene seems to present the picture of a heip= less sufteVer in the hands of a ruffian, who claims Uie merit of charitj from discharging liis victim alive, after having torn away half his limbs from his body - The fourth r.harge is, 7ion user of the charter. In this, that from i8i9 to 1826, a period of seven years, the south and west Branches issued no currency of any kind. The gentleman admits the conse- {juences of non tiser of a charter, by an incorporated body, indeed every tyro at tlie law knows this, but denies that it has any applica- tion to this case, for, says he *'it is not a condition in the charter, that the Bank should issue bills from all its b ranches. I find thc- gentieman is not familiar with the charter, and if I shall be able to- shew that it is a condition in the charter to issue bills at the branches, or to discontinue those Branches entirely, when they will not issue bills, then I presume he will admit th@ Bank has not complied with the true end and object of its institution, and t onseqdently comes under the penalty of non user. This is a much ?i ore serious charge than the gentleman is aware of, and to convince i im of it, I will beg leave to read the following clause from the- tliarter: *'It shall be lawful for the Directors of the said corporation to ESTABLTSK offices of DISCOUNT and DEPOSITE, wheresoever they shall think fit^. within the United States or the Territories thereof, and to commit the manage- ment of the s^\d offices and the thereof, respectively, to such persons,, and under such reg"ulations, as they shall deem proper, not being- contrary to law or the constitution of the Bank. Or, instead of ESTABLISHING suck- offices, it shall be lawful for the Directors of the said corporation, from time- to time, to EMPLOY any ofJicr Bank, or Banks, to be first approved by the- S£cretari/ of the Treasury, at any place or places thatthev may deem safe an4. ■proper to manag'e and transact the business proposed as aforesaid, otke>- than- for the purposes o f discount, to be manag-ed and transacted by such offices, un-- der such agreements, and subject to sucii reg-ulations, as they shall deem ju^ and proper.'* The balance of the clause points out the number of Directors, their- qualifications, their manner of appointment, the mode of electing the President, and tlieir^tenure of ofltce in tlie event of estabUshing^ an o&ce 01 discount iind dcposite ])ursuant to the first part of the iibove clause, instead of employing a State Bank for the purposes of deposite oiily. Having a use for the foregoing extract at another part of my argument, I v/ish it to be borne in full recollection. By the clause of law I have just read, it will be perceived that: the corporation has two, and but two, distinct powers. First, ta "Hahllsh an office of discount and deposite^ not deposite alotie;-^. Secondly, to employ a State Bank for the purposes of deposite and such other business connected with deposites as may be required,, "but not for the purpose of discount. Now, if by the first power* fhey establish a Branch, it is obliged, by the terms of the charter, to. be, an office of discount and deposite, and the moment they cease tch, disu>unf^ their authority to rec'^ixc dcppsites cea.s^ for tltey are 20 the law inseparable. It is the boast of the Bank that its end and f>bject is to equalize the currency and to accommodate the whole community, and that it is not to make one part of the country sup- ply the wants of another. If then it does not effect this, it surely does not answer the purpose of its institution. Now when an office of discount and deposite is established^ its purpose is as well defined as the mother Bank itself, and to all intents must perform that pur- pose within its sphere as the parent Bank is required to perform her duty within her limits. This purpose is to discount, and to dis- count is to furnish those very facilities, which, in their money lend- ing capacity, they profess to possess, and which every body knows is the principal end of their institution, and indeed, without whichj they v/ould not receive so vast a privilege. To stop discounts in the branches and continue the deposites, is a perversion of the law, and to that extent is not an honest user of their charter. Observe, Mr. Speaker, what would be the consequence of such a course. — ■ Offices of deposite, only, would be fixed down'by the side of th-s State Banks, and collecting the revenues of the country in State Bank bills, they would have nothing to do but to call on the local institutions and drain oft' every dollar of their specie to the mother Bank. Indeed, Sir, in the seven years famine of the South and West, occasioned by the hoarding of the branches which I have mentioned, they served only as leeches upon the State Banks, and as fast as they would fill themselves they dropped off to their parent ;iK)nster for the purpose of emptying their distended contents into her voracious stomach, whence it was disgorged upon Philadelphia and other Northern Cities to bloat their already overgrown wealtli at the expense of the South, and for another very important purpose which I shall hereafter show. This is not equalizing the currency, nor is it a just and impartial distribution of those facilities it was in- tended to confer. Nay, it was robbery of one section of country for the benefit of another. The fifth charge is building houses to rent. The gentleman said this idea was new to him and that he would be glad if I ''would shew him from Coke or Blackstone, how it can be lawful to pur- chase land, and not to build houses upon it and lease it." I wiU shew the gentleman from the Charter, better authority than Coke and Blackstone, on this subject. Says the charter ^'the land, tene- ments and hereditaments, which it shall be lawful for the said cor- poration to hold, shall be only such as shall be requisite for its im- mediate accoramodation in relation to the convenient transactions of its business, and such as shall have been bona fide mortgaged to it by way of security, or conveyed to it in satisfaction of debts pre viously contracted in the course of its dealings, or purchased at sales uTpmjudgments which shall have been obtained for such debts.''' Every one must admit tiiat the above clause had son>e motive in view, was intended as a t'estric/ion, it aeenis, to guard against some, dangerous consequence that nn^jnlimited pos^essicn of real estate 21 iti such a vast monied institution, might produce. There are two meanings to be placed almost upon every thing, a right and a wrong one, now let us honestly enquire what was intended by the above provision? 1 think I discover but three things. 1st. They may acquire real estate for the immediate accommodatioyi of tlie Bank, and as if this was not sufficiently restrictive it is added, such only as shall be requisite MiA convenient for the transaction o{ its business. On this point there can be no difficulty. £d. Such as shall be bona fids mortgaged by way ol security. Here too, there is no diffi.uclty. But now commences the field of dispute. 3d. Such as is conveyed to it in satisfaction of debts. It is unfortunate that the charter did not specify what disposition the Bank should make of real property thus acquired. But it is perfectly obvious if they intended to con- fer the right of an unlimited use of real estate after acquiring it in the course of its dealings and in the discharge of its debts, it v/as wholly idle to have inserted the immediate foregoing clauses in the section, guarded as they seem to be by minute restrictions. There is however another provision in this charter in relation to persona! property which will entirely relieve our doubts, especially when we bear in mind that the charter would not establish two diiferent rules as to the manner of holding rea/ and personal property. The clause in relation to their holding personal property is in the follow- ing words, viz: *'The said corporation shall not directly or indirect- ly^ deal or trade in any thing except hWU of exchange, gold or silver bullion, or in the sale of goods really and truly pledged for money lent and not redeemed in due time, or goods which shall be the proceeds of its lands;" then the 12th section declares 'nhat if the said corporation, or any person or persons, for or to the use of the same, shall deal or trade in buying or selling goods, wares, mer- chandize v)r commodities whatsoever, contrary to the provisions of this act, all and every person or persons so offending, &c. shall be punished, &Cc Now taking these two clauses together the intention is very manifest, they may take goods in pledge or payment of debts and dispose of them by a single and wholesale contract or in par- cels as at auction, but they shall not build upon such acquired goods a regular and continued commercial business. So with regard to real estate, they may dispose of it by sale to reimburse them in their loans, but they shall not possess whole cities and countries for the purpose of renting. Mr. Speaker, permit me to indulge in one re- iiection at this place, the application of which will presently be made, and in a case which ought to alarm every body, but more especially the Western people. We have always considered the condition of the European people and especially of Great Britain, as most deplo» rable, in consequence of their being tenants to great landlords. The scanty food ^hey draw from the earth is at an enormous expense of rent, and if this country, instead of its present happy distribution 4)f fee simple estates among the people, was in the hands of a few grandees to be rented out at their will and pleasure, and for what- thoy fnigKt choose to enact, vve would consider nothing so de^ testable and ruinous to the prosperity of the country. Now, Mr^ Speaker, this is not only the obvious tendencies of the Bank in point of fact, but it is in principle one of the very organic elements of its constitution. MONEY is property, and in this hemisphere commands all kinds of property both real and per- sonal, and if you would not give a single corporation, or more properly speaking a few noble lords the entire rental of lands of the United States, much less should you give them the eil- tire control of all the money in the country, which will finally draw to itself all the lands of the country. In Great Britain from its immense population and the great disproportion between its necessitous people and the quantity of land, the latter is more valu- able than money, because it yields a higher profit, consequently those few who hold the landed interest of that country hold the en- tire destinies of that unfortunate people in their possession. They are, for all the purposes of monied contributions, the slaves of the landlord, the true aristocracy of G. Britain. Is it, Mr. Speaker, in the power of any one to draw a rational distinctinction between a monied and a landed aristocracy? Is there any difference between a needy debtor and a dependent tenant? Are they not both equally cramped, alike enslaved, similarly spirit-broken, and under the foot of a ''hard master?" If the Bank were to request, in their present application for a renewal of their charter, to be permitted to buy up all the land- ed property in the Union, for the purpose of erecting the British system of landlord and tenant, every body would perceive the re- volting character of the demand, and scout it accordingly; and yet they are asking for ten times worse, and are likely to obtain it! They are asking to make every man in America their debtor, in- Htead of tenant, by which all his property is at their perfect control I Nov/, sir, for the application of these reflections, to the case I pro- mised. In the town of Cincinnati, I discover, by the monthly statements of the Bank itself, that it owns, besides its banking hous- es, valued at §23,500, nearlv one million and a quarter of real es- tate. This, let me premise, is greatly under its true value, for it has been received by the Bank in payment of its debts, at two thirds of its appraised value, by the law of that State, and has since risen in value, as I am told, something like fifty per cent, so that, at this time, it is confidently believed that they own three milions of real estate in Ohio. But, sir, taking the estimate as contained in their report, at twelve hundred thousand dollars, let us make a few calculations, for the consideration of reflecting men. This sum di- vided by one thousand, which would be a fair average of Bank debts, would make twelve hundred debtors in that town, who have been obliged tn part with their homes, leaving out of view those thousands who hnve not yet arrived at that lamentable condition, but who are perhaps hurrying to that catastrophe as fast as the lion claws of ava- rice can draw them. What a reflection! But this is not all-— this 23 ^laffie sum of twelve hundred thousand dollars would purchase twelve hundred tenements, severally worth a thousand dollars, and i-enting only for one hundred dollars each, would produce an annual rental, in this city, of two hundred thousand dollars, equal to ten per cent, interest'on their capital. No wonder that they are anxious to change their money lending stock, at six per cent, into a leasing capital producing at bast ten per cent, and perhaps as high as thir ty. I am aware that my calculations do not correspond with the ac- tual fact, but what is true as to the particular divisor assumed, will be equally true as to any other; for, whether higher or lower, the rent of twelve hundred thousand dollars worth of real property will be the same in twelve or twelve hundred tenements, and either is too much for any one institution to hold in the United States, espe- cially when we femember the fate of Cincinnati may be that of eve- ry town in America. If then they are not restrained within the true latent and meaning of their charter, what is to hinder them from becoming the great landlords of this country, and what will prevent them from changing their thirty-five millions of six per cent, stocks into three times that amount, under a false valuation, of real proper- ty, yielding an income of fifteen per cent.^ In my humble opinion, nothing.* The 6th charge in is in the capital stock, not having due propor- tions of coin. The gentleman says, I am wholly at a loss to understand this chdrge." Taking him, as I did, upon surprise, and being, I suppose a long time since he read the charter, it must have escaped his re- collection how the hard money foundation of that enormous struc- ture was laid. The 3d section of the charter requires, '*seven mil- lions of dollars thereof in gold or silver coin of the United States, or in gold coin of Spain, at a certain rate, &c., and twenty millions of dollars in like gold or silver coin, or in the funded debt of the United States. This made twenty-eight millions, which was that portion of the stock intended for individual subscribers. The gov- *Since the chove speech was delivered, a g"entleman of Ohio, of undoubt- ed respectabUity, writes from tliat State concerning' the very many abuses and oppressions of the branc h established at Cincinnati, and, among- other things, states, "that you may form some idea of their speculations, I will mention the case of my late friend, Mr. . He was indebted to them for himself and others to the amount of 50 or $60,000, and possessed a large estate in the city. But by our laws real estate could not be sold unless it broug-ht two-thirds of its appraised value, to be ascertained by a jury selected by ^the Marshal. A judgment was obtained ag-ainst him, which bound all his property. — The Bank agent could not get a jur} to value so low as to enable him to take the whole, he would, therefore, take none. Situated thus, his credit destroyed, his whole estate locked up which was not productive, thrown out of business, and a large familyto support, after years of repeated efforts, he was finally compelled to make a compromise, by which he gave up a part of his estate, and for which they allowed §50,000, — this property, or the g-reatest part of it, they have since sold, and estimating the residue of it at the same rates, it will produce a clear profit of more than §50,000. 24 crnmenls seven millions was to be paid in gold or silver coin, or in stock of the United States, bearing interest at the rate of five per cent, per a inum. The funded debt was considered equal to gold and silver, bottomed, as it was, upon the credit of the Government, seven millions of the latter was, however, indispensable and, ot' course, a corresponding amount of the former. The 9th section declared, that as soon as the sum of eight millions four hundred thousand dollars in gold and silver coin, and in the public debt, shall have been aduatly received on account of subscriptions to the capital of the said bank, (exclusive of the subscri]>tion of the Uni- ted States," then the Bank was authorized to go into operation.— Now, it is very clear, that this amount of eight millions, four hun- dred thousand dollars, exclusive of the Government's subscription^ was the least amount of coin, upon which the Bank should com- mence; and, therefore, constituted the true proportion of coin in re- lation to its future issues, which being limited to its stock of thirty- ' five millions, was nearly one fourth of the capital. If the Bank could not be permitted to start without this amount, and that too, in reference to the individual subscriptions, which was twenty-eight millions, surely it should never come below that amount alter it gets into operation, and after seven millions more of tlie Government'^- stock is atided. If there was any good reason for such a provi provision atfirsf, it must continue. There must have been some meaning in it, I apprehend, or it would not be found in the charter. Everybody will perceive at once, that a Bank without some specie^ would be soon without credit, indeed would be broke, for specie is the only true means of payment of debts, and the whole and sole credit of Banks. It is the measure of value to every thing, though it has very many substitutes, some of which are extremely preca- rious. Then what amount of specie shall always remain in Bank^ is a question of some difficulty , and depends very much upon its bu- siness, itsstockj its credit, and its management. If it were said the Bank of the United States had NO specie, it would startle every man in the nation who had any demands upon it. If it were said it had but one hundred dolhvs^ that would equally alarm its creditors ! What amount then shall it have, to quiet all apprehension? I can give no better answer than to say, the charter required at its begin- Ring, it should have ^8,400,000, and if at that time it was consider- ed the proportion upon which public confidence might rely, there can be no good reason why it should not remain so. Now, Sir, what IS the fact as to the quantity of specie in the Bank.'^ By the month- ly statements, it had on the'^lst of January but §7,038,823, and but S2,200 oF funded debt; being, when added together, §1,358,177 less than what the Bank commenced with, though the Governments stock has since been paid in. Now, Sir, I maintain that this is not, under any sound interpretation of the charter, a due proportion, of coin to the capital stock. I go further, and say, that this result in= volves the principle, if not the actual, fact, that the Bank is brake. 25 She has been compelled to use that portion of her capital, which wSiS the prescribed security to the public, of the Bank's claims to confidence. It was the pledge of the Bank's credit and the starting point of its operations, below which if it should come, there was nu safety as to its promises; for it must be obvious to all, if once allow- ed to range below this limit, it may just as well cimtinue business 'jpon one dollar as one hundred, and upon one hundred as upon one thousand, and so on, till it gets to that limit assigned by the charter Though the gentleman has said, the Bank is not only able to pay its debfs, but is a great deal too able, to suit the view^s and wishes of its opponents," yet, I dispute the fact, and v.'ill affirm, in oppo- sition to his declaration, that upon true mercantile or banking prin- ciples, and that punctuality, which those respective relations require it is not able to meet its engagements. He rests its capacity upon its property and debts to discharge the demands that may be made against it. Now sir, 1 say that this is not a safe reliance, and J say more that if the Banks of New York and Pennsylvania were disposed to unite and make a run upon the mother Bank at Philadelphia they could compel her to close her doors to-morrow notwithstanding she might be able hereafter to pay thirty shil- shillings m the pound. He has said it could pay off all its debts in sixty days. What! a Bank asking sixty days to pay its debts? l)re:idfull "Will Banks dare to require of her poor debtor;^ to pay down the last farthing in the three days of grace ^ and tlien turn round and claim sixty days for themselves? If they are such clamorous sticklers for punctuality among their debtors that they prolest them, stop their credit in Bank, nay, strip them of all their property and Hing their bodies into a dunt;eon, if they overgo those ;-aid days of^race, can it be possible that they claim an exemption from a like punetuality ? If by the law merchant, a strict compli- ance is required with the rule I have mentioned, and a failure to re- gard it involves the consequence of bankruptcy, though the default- er may be worth twice as much as the debt, how can the Bank es- cape from this fundamental pi-inciple in all trading establishments ; Would the Bank be content with such a reply as this from one of lier'debtors, on the day nis note became due~*» Sir, I have not the cash to pay my note, but, look upon my list of property ; see the notes due from other persons to me, to be paid in sixty days — the whole amount ten times more than I owe you : v>ill you wait sixty days, when it will be entirely in my power to pay y!)U ?" Think you, Mr. Speaker, the Bank would reply— -^'lo be sure, my dear ^friend, we will watt; we are sorry you have troubled yourself about it, give yourself no uneasiness ; just pay us when it suits your con- venience.'' If there is any such Bank in this world, I will make at least one pilgrimage to it. Then, Sir, if the Bank must pay, like all other persons, when demanded, and in the three days of grace, l«t us see how far she is able to meet her present debts'. Let it b^e bonie in mind, that her seven millions of specie does not lie in th^. 26 parent Bank, but is scattered all over the Union, in her several branches. i'he whole of her specie in the principal, and twenty-seven branch- es, including the Bank in the District of Columbia, is but S 7,038,823 Funded debt, - - - - - 2,200 To which add all the tangible silver ^nd gold now cir- culating out of the Banks, in the United States, which is estimated at - - -, - 14,03*7,646 Add ^27/5 due her from other Banks, - - 2,171,676 Add Z^e^^s due her from other Banks, - - 1,993,744 Add her Contingent Fund, though I do not understand its nature, - - . - - 2,114,365 S2 7,398,454 Novi^, Sir, this is all the immediate available cash land, in tlie power of the Bank to wield, upon a sud- den emergency ; and it is seen that one iiiipossible item is allowed — that is, the whole of the circulating gold and silver currency in the U. States. When this, and the scattered condition of her own specie is consider- ed, how is it possible for her to meet the following debts, if immediately pressed — to wit : Bills issued, and now in circulation, - - 24,630,752 To which add public and private deposites, - 17,997,689 Add Baring & Go's debt, and Dividends unclaimed, 1,512,(565 S44, 14 1,106 The Bank cannot make specie in the country, the deception is in promising to pay specie. The best financiers calculate that there is but about f(mrteen millions of specie circulating in the country, out of the Banks, and if the Bank of the United States could lap up every dollar of these, could insert its proboscis into those leather purses that have for many years concealed from the light of day dol- lars that have grown dim" with age, it could not according to the usages of merchants meet its engagements with that promptness which is the arterial circulation of commerce. This is what 1 meant the other day by saying the Bank was broke. I did not in- tend to use the term in its popidai\^ but in its commercial sense. I know too well its immense resources to believe it is unable to pay, the Government deposit, will uphold her. It has been too long wriTiging from the community, the fat of the land, to be what would be termed insolvent. I only wish to warn the nation that her late trading, as well for the purpose of making friends, as for money speculations * especially in specie, as will be hereafter shown, hes carried her over the boundary of gafe trangactions, and she relies upon 2f getting back by the indulgence of the Government and that most sired of all objects, a new charter. And I make this remark which I hope will be well remembered, that when that is accomplished^ ind she makes the rebounding effort to gain her former position, it will be a spring that will crush its thousands to death. Many a Nabob has broken full handed. Many a gilded sign hangs before a rich ware-house, all in confusion. And, drawing a figure from that best of books, the whited sepulchre is filled with dead men's bones. The seventh charge is Foreigners voting for Directors, through their Trustees. The gentleman states that he "knows nothing of this charge. But the fact can easily be ascertained from the Bank itself." This may or may not be the case. Books may show one thing, but oral testimony another, and the very object of an enquiry is to procure evidence of not only that which appears, but that which does not appear, and the last, always haunting secret places, can only be reached and searched thr«ugh the powerful agency of an oath. The gentleman adds — *'It may be, .hat stock has been owned by a fo- reigner, and yet held in the name of some citizen of the U. States.*' ^' This," he continues, " is no abuse for v;hicl' the Bank is answer- able, unless the Bank has been conusant^of the fact, and had the powQr of correcting the abuse." To this, I most cheerfully acqui- esce — but, for the best and most obvious reason, that of not having; such a tremendous institution, the monied lever of the nation, under the direction of foreigners, who, in time of war, might paralyze the whole machinery of Government, it is wisely provided, in two places (as if one was not enough) in the Charter, that no foreign Stockholder shall vote in the choice of Directors. And, so anxious is the Government -to prevent the exercise of this dangerous influ ence, that, by an act of Congress, passed in 1819, some restrictions are imposed upon the managers of elections, as well as the voters, sfrengthened by two solemn oaths, intended to prevent a violation of these clauses of the Charter. If, ther., there ai e any secret trusts, as the gentleman insinuated, it appears to me, unless the persons concerned ai-e of the most depraved order, they could be brought to light by virtue of the strong obligations just referred to. It is very evident the books will not show these secret trusts, but it Is not so clear the officers cannot : it is a mcst dangerous mischief, and well worthy of investigation. This finishes the consideration of those grounds affecti'Tj rhr in tegrity of the Charter, aud which, if established, will amounr t vcu to a forfeiture of its privileges, much more its claims to rv^iiewah — I shall now proceed to the abuses of the Charter, amountir to . uch breaches of good faith as ought to destroy all future or fui rher ron - fidence in its operations. Before, however, I proceed to this branch of the subject, I hope i may be indulged with a few more reflections, connected with the lacts I about to ofter : 28 The several States are obliged to have money for their tvaiits, $.s well as the General Government. Institutions of Government, in- tended to protect such important interests as the rights of persons* and the rights of property must be supported by the same means a? those that belong to the federal or any other government. And it is no bold assertion in me to say, that the United States Bank can- not supply all the wants of the States. The people of the States must have money for their taxes as well as for other purposes, and to local institutions they are compelled to look for those facilities which it is said the United States Bank furnishes the General Go- vernment. Is it desirable to prostrate these great conveniences ? Will the Representatives here, of their different States, so far for- get their own establishments as to place them in the power of an in- stitution, which its own President has declared can crush them, v^'henever it chooses ? If the corporation of the United States Bank had an invincible army in Philadelphia, which it could send out by detachments to plunder and rifle the States of their property, con- quer them whenever it suited either their interest or ambition, and make them tributary to their avarice or power, every one would shudder at such a state of things. Now, Sir, money is invincible power, and is to the moral, what an army is to the physical world The Bank has nothing to do but to send out a detachment of ten millions of dollars into a State, demolish *the State Banks, desolate their fair fields of profit, make prisoners of war of tfieir customers, obtain the allegiance of their debtors, establish a fort, and then march on to the next State, conquering and to conquer. Who does •not perceive this ? And is there none who would not be willing to divest such an enemy of this despotic dominion ? The Bank does not cash its notes or receive in deposite at each branch, and at the parent Bank, the notes of each other. This idea will be better understood by stating that the mother Bank prepares the bills and sends them out to her respective branches. These branches then fill them up and issue them, and as soon as they are afloat, the parent Bank knows thera no more, though circulating in the country as her offsprini^ and bound to support them, and can never be brought to recollect them again till her memory is refreshed with something like a one per cent, remembrancer. And so with re- gard to the branches, though sisters from the same pi.rent, they know nothing of each other's progeny, and will have nothing to dc with them, unless paid to entertain them. As I stated before, the parent Bank demands a premium for receiving the notes of her branches, the branches of the parent Bank, and of each other.— This, the gentleman says, is obliged to be done, and the attempt to do what the Bank is here assailed for not doing, produced all its embarrassments in 1819. If it cannot do it, the business ought to be confined entirely to the mother Bank, and the branches with- drawn from the States, for, as at present organized, they are com- plete brokerage, or rather shaving shops^ selling and buying theit £9 5wn paper and making a profit both wa>^. But there is good reason -0 believe the fact is untrae. In the iirst place, they do it for the s;overnment, they receive at any branch the bills of the mothsi' Bank or any of the other branches, without any discount whenever demanded by the Treasury Department, and why may they not on account of citizens? In the second place, they do it for the citi- zens in all sums of five dollars. Why no more? In the third place, in very many branches they do it without any premium, for any amount and' to any person. Why this dilFerence ? In the fourth place, they charge more at some branches than at others, and they require a greater premium upon some branch bills than others, and upon none does it exceed half per cent, the usual price being one quarter of one per cent. Now, can any believe that if they can receive their bills for the government without premium, from the citizens up to five dollars, can dispense with it at some of the branches, make adifierence in the bills, and' finally receive only one fourth to one half per cent, upon what they actually do in this traffic, they might not dispense with it altogether. Can it be possi- ble that this petty shaving is indispensable to "sustain the soundness of the currency," and the attempt to do which, in 1819, "led to al": the over trading and embarrassment and ruin which ensued?" If i : is, the time has arrived, as I humbly conceive, to sweep it from its connection with this great government, and to rely upon hard mo- ney currency, the only one known to the constitution. In answer to the charge of raakina; a difterence between the ^ov- erraent and the citizens, the gentleman says, it is exactly what th^^ charter stipulates to do. It is true, there is a provision in favor in the government to receive its money and pay it out \\iierever want- ed, but there is no stipulation that the citizens shall not have this privilege. It would have been very unkind in the government, after contracting for an advantage for itself, to exclude its citizens from the same, when such exclusion could be no possible benefit to it= It is n^t the fact, and the privilege to the government proves, as I said before, it could have been extended to the citizens, and the difference is a capricious exercise of power, unv/arranted by any principle ot common honesty. So far as relates to the charge of partiality towards members oi" Congress, it is not intended to convey any censure or misconducr whatever against them, nor do I object to any arrangements abou ••:heir pay. But I understand that it can be made to appear that members of Congress can be accommodated, both in bills of ex- change and in loans, without the usual premiums and indorsers re- quired from other citizens, if so, and into this fiict 1 want to en- quire, it is partial, and therefore wrong. If it is not so, there is no harm in the enquir3% With regard to the accumulation of proxies, it is asserted that b^nk «!ficers have almost the entire election of Director?. If true, whar inischief c^in b£ gr,eater? What control will be cxcrg!5.ed by men 30 ^\ho holti their offices by the voice of the vary men whose conduct ir IS their duty to watch with ijnceasing \igilance? The gentleman is much surprised at the charge of a strong suspi- don of a secret understanding between the Bank and brokers, to job in stocks contrary to the charter, and wishes me to give up the wit- ness. Grant the hearing first, and then we will see haw far the fact can be established. All criminations are mostly nmde upon suspi- cions, but it is very unusual for the accused to say the charge is false, but I do not wish to be tried. The gentleman says wc are the guar- dians of the Bank, and should protect it from a charge which is cal - culated to destroy its credit. It is very true, sir, we are the guar- dians of the Bank, but it is equally true we are the guardians of a much higher interest, — that of this vast community, — and the bes? protection we can afford tlicin or the Bank, is to give the latter mi opportunity to v/lpe off all suspicion as to its conduct, and entitle it- 'self to the greater confidence of the former. Does it want any other protection than this? As to the credit of the Bank resemblingYemale ' hastity, it is a most unhappy figure. Depend upon it, the Bank is 710 virgin, and is greiilly more like the " Whore of Babylon," tliaii the Diana of Ephesus. The objection against the Bank on account of subsidies and loan": to printers and others, was so ably explained by my colleague, (Mr. Foster,) that I shall not attempt any thing further on this point. The gentleman treats the charge of the Bank's making a distinc- lion in selling bills of exchange very unceremoniously, by barely say- ing it is unfounded. Now this charge is met exactly as all the other ^:harges ought to have been. It is the general issue of not gidliy. and the nex! thing is to proceed to trial. But to say not guilty, and then to walk right off from the investigation, is falsifying the plea, and leaves a strong conclusion of guilt. If the gentleman is satisfied with this mode of answering accusations, I am sure I ought to be. But the truth is, and can be established, that some of the i'ustouiers of the Bank have obtained favors and loans at a very dif Cerent per cent, from tliat of others. Her limit, by law, six per L'ent.: she has been known to lend at four, at a long credit, and hat divided seven to the stockholders. Depend upon it, some one has suffered in such a curious combination of figures! The charge of inducing local banks to clamor for a renewal of the charter, is passed over with the same kind of indifference. I will have the candor to own that this rests in conjecture;, but when I see not more than one local bank in ten asking for the continuance of a monster whose keeper has said it can crush them whenever it pleases, and when I see the other nine tenths dreading its power and desiring itS subjection, I feel a great curiosity to learn the cause; and, per haps, when an inquiry is made into the debts due by some, and the stock owned by others of these petitioners, the mystery will all be explained. Tho.ugh the gentleman says that aji inquiry into the actu.a]; ma^Wr 31 agement of the Bank, to see whether aafelj and prudently conduc(es do the saine thing? Tne truth is, Mr. Speakei;, every thing in the South is distrusted; there is not that confidence and respect, such as ought to exist between sister States, extended to that region, and it is growing more manifest every day. The local Banks there, as well as in the West, have been tre ^ted with great mgratilude. While they strained every nerve to support your last war, lent to the last dollar, behold the North was clinching her gold and silver as though it were in the claws of an eagle — not a farthing was lent. They wept when you were victorious, and shouted when you were vanquished. They boasted of their g-old while i\xQ South and West triumphed in their vic- tories. After the war, when that portion of the country, which had to support it With their lives ahd money, come to count tlie cost, it is true they found themselves embarrassed, as was to have been expected from the excessive sacrifices they had been comp-lled to make. The issues of money had been immense, but it was for a generous and noble object. Such another state of things can never again occur in this country. It is fondly to be hoped that one part of this nation will not have to fight the battles common to all and to ex- haust themselves to support the honor and interest of a Government, the main- tenance of wliich involved an equal obligation from the whole community.^ It was said the currency was deranged and that an United States Bank must be cliartered to restore it to soundness. And having said this, it is now be- lieved, that that Bank is entitled to the credit of establishing it. Nothing is so erroneous. The Bank never went into operation till the year 1817. In two years thereafter it was pronounced insolvent by a Committee of Congress. In July, 1827, the branch orders commenced toissUe, which Mr. Biddle declar- ed, in a letter, dated January, 1828, to Mr. Rash, was obJiged to be resorted to, or to give up the Bank. Listen to his own words: — "The institution found itself in a position where it became necessary eitherto RENOUNCE the great purposes of its creation, or to seek, among its other acknowledged pow- ers, the means of accomplishing them." How could it have restored the cur- rency to soundness if all the time it was struggling as in a case of life and death? Crippled from the beginn.ing — at its last gasp in 1819 — but barely crawlingon to 1827, and yet the great restorative of the currency of the country? Tlie thing is too unreasonable. No, the truth is, it is the cause I have mentioned — it is the Government's credit and her twenty-five millions of dollars throv/n in- to the scale of this distempered monster that has enabled it to weigh down the State institutions. The two last clutrges may be taken toge«^her; they consist in establishing agencies in different States without authority, and employing State Banks to transact tlieir business without the consent of the Secretary of the Treasury. — The gentleman says he is wholly ignorant of any provision in the charter which forbids such agencies, nor does lie exactly understand what 1 mean by the last objection. This is not my fault, but I think I have shewn by a clause from the charter, tiiat the only powers the Bank has, on this subject, is to estahllsh a- branch, with a President and Directors, for the purposes of c?/.scot;72/ and depos- ite, or to employ any other Bank to transact i's business other than that of dis- counting. HaA ing specially provided two ways, all others are excluded; there is no authority to appoint agencies, and neither of the foregoing methods will» \Vi the remotest degree, admit of that construction. The last ground is a isirn- 37 pie affirmation which can easily be disproved by shewing the consent of the Secretary of the Treasury \.o employ such Bants as are transacting^ their busi- ness. The requisition on the part of the charter is a very wholesome one, for the Government oug-ht to know what local Banks are permitted to take charge of their immense deposites. I believe, Sir, I have now gone through all the arguments of the gentleman founded upon the charges in their regular order. Bcfoi-c, huwcvt-r, I take my final leave of him, I must advert to one suggestion, which, from its nature, was intended to be addressed to our sympathies ; and, as I am one who have ever believed, that one touching sally upon the passions, overpowers a thou- sand dry arguments. I always leave the latter to dislodge the former. He said, "A large portion of the stock of this institution belongs to the widow and the orphan ; in many instances, perhaps, their sole support and inheri- tance." I believe nothing could be of more service to this description of per- sons than a dissolution of this institution. "When the old United States Bank wound up its business, and made a final division, each Stockholder had return- ed to him not only the full amount of his shares, with eight per cent, inte- rest per annum for the whole period of its incorporation, but he had paid to him (me Jcuadred dollars to tlie share besides — tliat s, his money was doubled, ex^ elusive of the interest. There is no manner of doubt that such v.-ould be the result at the expiration of the present Charter. This doubled amount could soon be vested in other stock, and their means of supjiort consequently in- creased one hundred per cent. And, ?^Ir. Speaker, this would be no common support, either ; for I find, upon examining the list of Stockholders, there are upwards of forty widows who own over ten thousand dollars each, and several as high as_/?//y thousand. Concerning these last, I h'^pe the gentleman will give himself no uneasiness ; for they can assure him, in any event of the Bank question, they will remain pre'ty good game, for the pursuit of AXY WIDOW- ER whatever. But, Sir, while he is manifesting such sensibility for these destitute persons, let me shade his ]Dortrait a little by a sombre color, which I can employ from another class of Stockholders in this same Bank : The real Stockholders are not American Widows and Orphans, but 5n//s72 Lords and Ladies — British Naval aud Military Officers — British Clergymen and Coun- try Squires — and, Sir, for your exquisite delight, permit mc to read a few of their names : Baring, Brothers & Co., London, $791,500 The Most Honorable the Marquis of Hartford 100,300 The Right Honorable Sarah Countess Dowager of Castle Stuart. . 10,000 Sir Colin Campbell and Sir Richard Humer 37,100 Right Honorabk. Lord Henry Viscount Gage 12,000 Honorable Hudson Gurney, Member of Parliament 50,000 Sir Robert Harvey .' 19,500 Sir William Keppel, General in His British Majesty's forces, Knight of the Grand Cross of the order of the Bath 72.200 Major General Maister 9,000 Si? George Nugent, Baron t 20,000 J. Packwood, of the Royal Navy 8,000 Sir Marmaduke Warren Peacock, f.ieutenant General, &c 50,000 The Earl of Beauchamp , 15^000 Sir Gilbert Sterling , 10,000 Ladv Sarah Stuart 31,300 Sir Grenville Temple 20,000 Augusta Countess Dowager Van Pollant 4,200 The Earl of Levin 50,000 Major General Macdonald 64,900 Lieut. General Sir Thomas Bradford 4,000 Sir William Keeth IJall, Baronet » , 30,000 38 Lord tlrie Keeiy » , . , , . 60,00iff Mrs. Ann R.'. dfern 7o',160 Abel Smith, Esq 100,000 Sir Edward Tucker 50,200 .lonathan Austin, Esq 120,000 Major William Davis 20,000 Reverend Arthur neim ^ jqq Reverend Philip Fletcher 2o'o00 Reverend Georg-e Gordon 30 HO Mr. Benjamin Hcj'^wood , 178,400 John Marshall, (London) 123,600 James Drake 100,000 John Marshall 264,200 Lieut. Col. John Maxwell , . . . 64,900 Sir Robert Wilson 15,000 Lady Ros(?bella Wilson 15,000 And Inst, thoug-h not least, Mrs. Candelaria Bell 63,700 Whose fanciful and beautiful name 1 hope will be remembered by some gentle- man of the Turf, when he comes to christen his next female Racer. In all, up- wa'xls of 400 in number, and holding- Stock to the amount of 8} millions, be- sides what is in the hands of T?'ustecs. I have some additional charges to make, Mr. Speaker, In reference to the con- duct of the Norfolk Branch. There stands an item of forty thousand . dollars On the montldy statements to the debit of the late Navy Ag-cnt, which, as I un- derstand has occurred in consequence of the cashier's permitting- him to over- draw the funds of the government placed to his credit in that Bank. And that these overdraughts have been furtlier occasioned by this very cashier's pur- chasing- the checks of the Navy Ag-ent at a discount, and applying- the proceeds to his individual profit, v/hich speculation was brought about by telling the holders of these checks that the Navy Agent liad no funds in Bank, but that he would pay tliem off for a premium, and that he did so to a very large amount, I have the evidence before me, which 1 beg leave to read from the report of the laic Secretary of the navy, that this same cashier charged the govern- » ment two per cent, for ten thousand dollars specie, which it wanted for a South American expedition. [Ile-re the extract was read.] On another occasion tile government wanted twenty thousand dollars, and the same cashier de- manded one half per cent, but that premium being refused, the money was not had and the State Banks supplied it without ai.y charge. Now to a go- vernment which has generally ten miUions of her money upon deposite in this institution, and whose wants, by the very terms of the charter, are to be sup- plied at all places, it is well worthy of knowing the reason of this extraor- dinary demand, especially, when I tell you it was made contrary to the will and wishes of the Directors of that Bank. The President of the mother Bank disavows most positively that the institution in any of its relations ever inter- feres in politics, fie knows that such a vast monied establishment with its five hundred officers, and million of debtors could exert an influerce in this government calculated to destroy its independence and hence he has in a late private letter written forlpublication in a newspaper, which I have before me, utterly disclaimed any concern in the elections of the country. Now sir, although I do not wish to abridge any of the ri.ghts of the citizeiis in this free and happy country, and I am perfectly willing that every man in it, or in any office belonging to it, should exert all the influence he has personally in tho whole round of its affairs, yet I do not think it prudent that he should bring to the contest, either the weight of his office, or the superior conti'ol of his money, much less do I desire to see the avowal of principles, for a secret purpose, that stand contradicted by actual facts. Now sir, the private letter to which I have alluded is not, in point of fact correct. The President of the 59 Norfolk Branch did in person attend the polls, at an election for the memberB of Congress, challenged the voters as the they came up to the clerk's table, some he changed and when reproaclied for his conduct he stated he was inditterent as to the candidates individually, but he stood tliere opposed to General Jackson. This course of conduct produced great excitement which terminated in a fight between the President of the Bank and the person who re])roached liim immediately in the presence of the managers. Perhaps it may be said the Directors of the mother Bank, know nothing- of these last charges; I answer sir, that the whole of them have been laid before the directors at the central institution and pressed with much earnestness by one of the largest stockholders in Virginia, whose information so far has received little or no attention. In conclusion, Mr. Speaker, I offer one more reflection. It is aptly said by some writer, that the financial system of this country represents an invert- ed pyramid. Six thousand millions of property, and all the enterprizes and in- terchanges of the country resting upon sixty millions paper dollars, which are themselves depending upon about fifteen millions of specie. And all this under tlie exclusive control of one grand, regulating, central machine, whose whole operations, and all its immense profits, belong to a highly favored few. I have done for the present, but tlie half has not been told which belongs to tjais important subject- 308 C749 V.2 ^Q3ZZ- -