creasing the value of the circulating medium, through its supervising power over the local banks, it has, in effect, reduced the price of all property for which money is exchanged. These effects, though salutary to the community, have been injurious to individual interests, which have all been arrayed in hostility to that institution. The benefits of the bank have been of too general character, to be readily appreciated by the mass. They consist in restoring and maintaining a sound currency, and though this is as indispensable to prosperous commerce, as a pure atmosphere is to a healthy man; still no special feeling is excited in the minds of those, who use the one and breathe the other with a happy forgetfulness, that adulterated coin and irredeemable paper will cause as much desolation among merchants, as a pestilential miasma in a crowded city.

In

The administration of the bank, however, though excellent, has not been without faults. Shortly after going into operation its direction fell into the hands of a few speculators, who brought it to the verge of bankruptcy, and it did not escape without the loss of more than a million of dollars, and no small portion of character. the distribution of capital, dissatisfaction had been caused by the small amount apportioned to the city of New York; and it has been with too much reason asserted, that the illiberal policy pursued by the present bank towards that city, originated in a jealousy of the increasing wealth and trade of the commercial metropolis of the

United States. At times too it had indiscreetly enlarged its discounts, and in order to bring the currency within proper limits, was obliged to bear harshly upon its customers. Notwithstanding these errors it was with no little surprise, that the public found in the first message of Gen. Jackson to Congress, (six years before the expiration of the charter), an expression of his opinion against the constitutionality and expediency of the United States Bank, and an assertion, that it had failed in the great end of establishing a uniform and sound currency. As no intimation had been given of an intention to apply for a renewal of the charter, and as no specific abuses were pointed out deserving examination, this intimation was justly regarded as an indication of a strong hostility against that institution on the part of the President, originating in causes not open to the public eye. The message had the effect of diminishing the value of the stock six per cent lower than be fore the opening of Congress.The subject however, was referred to the committees on finance and reports adverse to the President's views, having been brought in, the stock recovered itself, and finally attained a higher rate than the original price.

The attack, however, was renewed in the message at the commencement of the next session; and Congress was recommended to inquire into the expediency of renewing the charter of the existing bank, with the view of substituting in its place a bank based on the public deposits, but with

out the power of making loans or purchasing property. This recommendation met with no better reception, than that contained in the previous message. No steps were taken by either House upon the subject. The bank made no application to Congress, and when Mr Benton asked for leave to introduce a resolution in the Senate adverse to the renewal of the charter, that body refused permission by a vote of 23 nays, 20 ayes. The stock maintained its price in market, and in the message of the President at the opening of the 22d Congress, his objections to the bank were expressed for the third time.

It was now deemed proper for that institution to submit its claims for an extension of its charter to Congress. The attention of that body had been called to that question at each session by the President, and if it was not deemed too early for Congress to decide upon the expediency of renewing the charter in 1830, it certainly could not be so to ask decision in 1832. A memorial to this effect was, therefore, presented on the part of the United States Bank, and no sooner was this determined upon, than the friends of the President began to express their dissatisfaction at being forced to act upon the subject at this time. It was too early, they said, notwithstanding the President had not deemed it too early for Congress to act upon the matter two years before; and they sought to postpone the consideration of the question, which they had been so desirous of for

This

cing upon its attention. course was too glaringly inconsistent to succeed, and the memorial having been presented in the Senate on the 9th of January, by Mr Dallas, it was referred to a select committee for consideration. On the 13th of March this committee reported in favor of renewing the charter for fifteen years, with the following modifications.

No notes (under $50) were to be issued from the bank or any branch, unless made payable at the bank or branch whence issued, except at the request of the persons to whom they are delivered.

The notes of the bank to be received by every branch in payment of balances due by any State bank.

The corporation to be prohibited retaining any real estate, other than for banking purposes, longer than two years under a penalty of $10,000 in each case.

Not more than two branches to be established or retained in any State; and not more than one, except in the States in which they now exist, without the assent of the legislature.

A bonus of $1,500,000, to be given to the government, payable in three annual payments.— A bill accompanied this report, which was ordered to a second reading, and then laid upon the table of the Senate, until after the report of the committee appointed by the House to inquire into the affairs of the bank.

It was in that body, that the main battle concerning the bank was to be fought. Upon the

presentation of the memorial by Mr McDuffie, on the 9th of January, parties at once arrayed themselves upon the question of reference, the friends of the bank being in favor of a reference to the committee of ways and means; while its opponents sought to refer it to a select committee. The former prevailed by a vote of ICO yeas, 90 nays, and the memorial was accordingly referred to the committee of ways and means, by whom a report was made in favor of the renewal of the charter on the 10th of February. The minority made a counter report, containing the views of the opponents of the bank; and both parties now addressed themselves, to sustain their respective views on this important question. The next step taken by its opponents consisted in a motion, made by Mr Clayton, on the 23d of February, for a committee of inquiry into the affairs of the bank, with power to send for persons and papers. An animated discussion ensued upon this motion. Mr Clayton said, that he believed, upon investigation, the following charges would be substantiated viz.

1. The issue of $7,000,000 and more of branch bank orders as

a currency.

2. Usury exacted on the loan of broken bank notes in Kentucky and Ohio.

3. Domestic bills of exchange issued being disguised loans at more than the rate of six per cent. Sixteen millions of these bills were issued in December last.

4. Non-user of the charter: in this, that from 1819 to 1826, a period of seven years, the south and west branches issued no currency of any kind.

5. Building houses to rent, which is contrary to the limitation in their charter, on the right to hold real property.

6. In not having a due proportion of coin in the capital stock. 7. Foreigners voting for directors, through their trustees.

Mr Clayton also stated that there were abuses worthy of inquiry into, not amounting to forfeiture, but going, if true, to show the inexpediency of renewing the charter.

1. Not cashing its own notes, nor receiving in deposite at each branch and at the parent bank, the notes of each other. By reason of this practice, notes of the mother bank are at a discount at many, if not all, of her branches, which completely negatives the assertion of establishing a sound and uniform currency.

2. Making a difference in receiving notes from the federal government and private citizens. This is admitted as to all notes above five dollars.

3. Making a difference between members of Congress and the citizens generally, in both granting loans and selling bills of exchange. It is believed it can be made to appear, that members can obtain bills of exchange without. citizens with a premium: the first give nominal endorsers,

the others must give two sufficient resident endorsers.

4. In permitting the undue accumulation of proxies, in the

5. A strong suspicion of a secret understanding between the bank and brokers to job in stocks, contrary to the charter. For example, to buy up the three per cent stock at this time, and to force the government to pay at par for that stock and that the government deposites are used to enhance the value of its own debts.

6. Making subsidies and loans, directly or indirectly, to printers, editors, and lawyers, for purposes other than the regular business of the bank.

7. Making distinctions in favor of merchants in selling bills of exchange.

8. Practising upon local banks and debtors, to make them petition Congress for a renewal of its charter, and thus to impose upon Congress by false clamor.

9. Mr C. also proposed to inquire into the actual management of the bank, whether safely and prudently conducted.

from the western and southern branches of the parent bank, since its establishment in 1817. The amount is supposed to be 15 or 20,000,000, and, with bank interest on bank debts, constitutes a system of the most intolerable oppression of the south and west. The gold and silver of the south and west, have been drawn to the mother bank, mostly by the agency of that unlawful currency created by branch bank orders.

14. Into the establishment of agencies in different States, under the direction and management of one person only, to deal in bills of exchange and to transact the other business properly belonging to branch banks.

15. Into its giving authority to State banks to discount its bills, without authority from the Secretary of the Treasury.

After these changes had been fully stated by Mr Clayton, Mr Mc Duffie replied, that he should consider them to be what Mr Clayton had called them, that is, an indictment against the bank, and should answer them in detail that the first charge, the issue of seven millions or more of branch bank orders as currency,' he considered a fair specimen of the whole. After showing the constitutional right of the bank to issue such orders, their beneficial effect upon the interests of the institution, and the country, he denounced

12. Whether the account of the bank's prosperity be real or delusive.

13. Into the amount of gold

brought forward. It would not bear discussion. He showed also, that the issue by the branches of such orders, was a matter of sheer necessity, the Cashier and

that it had become possessed of real estate in no other manner than this; that the authority to buy land is an authority to own land; and an authority to own land is an authority to use it for the advantage of the stockhold

ers.

6

The sixth count is, for not having in its capital stock a due proportion of coin.'

Mr McDuffie could not understand the bearing of this charge, or to what Mr Clayton alluded.

Mr Clayton said the bank cannot pay its debts and is broke.'

Mr McDuffie pronounced the allegation utterly unfounded. He averred, that the bank was not only able to pay its debts, but had a large surplus-and could leave its capital wholly untouched.

The seventh charge is, foreigners voting for directors, through their trustees.' Of this fact Mr McDuffie knew nothing; but he was satisfied that it would turn out to be without foundation.

The next charge is, 'not cashing its own notes, or receiving in deposite at each branch, and at the parent bank, the notes of each other.'

Mr McDuffie showed, that the atternpt of the bank in 1819, to do what Mr Clayton would now require it to do, had brought on it all the embarrassinents of that period. If it were to do it, all the commercial exchanges of the country would be conducted at its expense. The drafts of the respective branches were payable at the places of issuing they bore this fact on their face-the operation was a fair one.

The next is, 'the making a