SENATE.]

use.

BANK OF THE UNITED STATES. The Senate then resumed the bill to modify and con tinue the act to incorporate the subscribers to the Bank of the United States.

this institution is assumed to be necessary? Why not con- Mr. SPRAGUE, in reply, referred to the answer he sult the present Government? The people have put them had given a few days since to Mr. SMITH, that he had in power; they are responsible to the people for the opera- himself occupied as much time on the subject as he had a tions of the Government; then why not allow them a voice right to ask, but that, if any other gentleman desired to in the selection of their means? Instead of that, we have address the Senate, he was very willing to give him the opseen this measure taken up by the adversaries of the ad-portunity, and would call up his resolutions. ministration, conducted along without any reference to the Mr. FORSYTH stated that he had not been in the Senate administration, and now proposed to be put upon its third when that conversation took place. He expressed his satisreading without even their knowledge! It is easy to con- faction with the reply. ceive that the bank may be an impediment to some administrations; it may join their adversaries, lend them the benefit of its vast moneyed power, and exert its machinery in all the States in promoting the election of opposition candidates. This very bank may be an enemy to the present administration, and, uniting with all the elements of oppoMr. WHITE, of Tennessee, rose, and addressed the sition in Congress, may now be exerting its tremendous Senate at great length. He expressed himself as much influence to keep up a system of double taxation and enor-pleased with the manner in which this important topic had mous expenditure, to supply itself with immense deposites been discussed throughout the period it had been before of public money. It may be the most formidable enemy the Senate-in a manner that showed that no party had to the present administration, and, instead of aiding, may struggled for victory, but each and all for the public good. be paralyzing all their measures, even the payment of the It was his object to speak his sentiments on the subject; public debt, in order to keep the public money for its own the trust he filled required it at his hands. He would lay It may be in favor of a new administration which before the Senate what his opinions were, and, in doing so, would keep up taxes, multiply expenditures, and gorge he hoped he would not interrupt the feeling which had it with public money. These things may, or may not, be so far prevailed. His opinion was adverse to the bill on so; but why not let the administration speak for itself? the table. In the view that he had taken of the subject, Why force this aid upon them? Why compel them to he thought that, of all people who could be presumed receive help of the bank? Certainly it is a long time that capable of carrying on banking business, and would adthe world has been admonished to beware of favors offer-vance their claims for the franchise, the present cored by the enemy! This bank is the only favor offered to poration ought to be among the last whose claims would this administration by its opponents; and this favor they be received. He held that Government, nevertheless, require it to take without examination, and without inspection. They avow their determination to pull down to the letter, according to the original charter, but, doing were strictly bound to fulfil every engagement with them this administration; and they propose to give them this this, they would owe the bank no obligation whatever, bank as a friendly present! Since the days of the wooden horse, has any present ever come forward in a more ques made by Government to create a bank, they had no ind no gratitude or debt. When the original proposition was tionable shape? And this kind aid comes on the eve of a vidual interests to look to: it was open to all the country who life and death contest between the giver and receiver! chose to subscribe; and such portion of the public as fail Some have said this push for a new charter is not a party ed to do so, the fault rested with themselves; they had re measure, but thus far it has been characterized by every cir- cause so far for complaint; they could not charge any cumstance that defines a party measure; and this determi- violation of their rights. But let us suppose we are now nation to carry it through, without a reference to the admi- about to create a substitute for the bank of 1816. Do we nistration, seems to complete the evidence of that character.give the public the same right, or are we not excluding Mr. SMITH said, in high party times, when a motion was made to refer from Congress to the Secretaries, the democratic party resisted it, and he had never heard of

similar motion since.

a

The question was then taken on Mr. B.'s motion, and

decided as follows:

them by the present measure? If we were called on to designate what portion of the public should not be autho rized to subscribe, if any were to be excluded, it should be those individuals alone that should be excepted, whe for twenty years, had the monopoly from which the rest of the public were shut out. Such should be the case as regarded even those who are our own citizens; how much more strongly, then, should it apply to foreigners, who NAYS.-Messrs. Bell, Buckner, Chambers, Clay, Clay-held no less than eight millions of that stock? And it was ton, Dallas, Dickerson, Ewing, Foot, Frelinghuysen, the opinion of many that more than this was held by them, Hayne, Hendricks, Holmes, Johnston, King, Knight, probably in others' names. He would not say that, if we Mangum, Marcy, Miller, Moore, Naudain, Poindexter, were to organize a new bank, they should be excluded; Prentiss, Robbins, Robinson, Ruggles, Seymour, Silsbee, but he could not see why foreigners now concerned Smith, Sprague, Tazewell, Tipton, Tomlinson, Tyler, in the bank should have the preference over our own citi Waggaman, Webster, Wilkins.--37.

YEAS.-Messrs. Benton, Brown, Dudley, Ellis, Forsyth, Grundy, Hill, Kane, Troup, White.--10.

The question then being on the engrossment of the bill for a third reading,

Mr. WHITE rose to give his views in opposition to the bill; when

Mr. GRUNDY moved that the Senate now adjourn; and it being understood that no further amendments were to be offered,

The Senate, at 20 minutes before 6 o'clock,
Adjourned.

zens. Would it be asserted that those foreign capitalists invested their money for the benefit of the country? No a safe investment, and it served their own interests. Let such thing. They had done so because they knew it was to them, but get rid of them, and give the preference to us then, sir, discharge faithfully all the rights belonging our own citizens. Perhaps it would be said that we could not find a sufficient number of capitalists within ourselves. Surely, surely, said Mr. W., it would be found we had enough, and to spare, to come forward and take the stock. It was his opinion we had numbers of citizens hav ing capital they knew not how to invest; and it would be recollected the different channels in which our capital was employed, from the commencement of the last war--then, in various commerce, till the restoration of peace, and the period which succeeded. After the peace it could not all

JUNE 7, 1832.]

Bank of the United States.

[SENATE.

be employed; it was necessary to seek another channel, That such an enactment was not in the original charter, in which it might prove equally productive. It was invested in manufacturing establishments, and, in his opinion, out of this had grown up the tariff. With capitalists who had thus invested their money, the cry, consequently, was, "our capital is invested in manufactures; if you do not give us protection, we lose our all, we are ruined, the nation will be ruined." And the same process of investment was daily going on; and does this show any want of capital? He was confident there was abundance of capital, which would be invested in banking business if the opportunity offered, and if it could be so done at six or seven per cent. Mr. W. expressed himself as radically opposed to the United States holding any stock as stockholders in the bank. He would prefer that Government should not possess a single dollar in it; that it should be left to the operation of private individuals alone. The United States held but a small portion of the capital--but seven millions out of the thirty-five; and for the Government to be in partnership with its own citizens, he considered to be a violation of the fundamental principles of the constitution; for thus Government was giving its aid, through its partner ship, to the private individuals thus associated with them operating as a monopoly in favor of one part of its citizens against another. In this respect, he held that the old charter was radically wrong.

he thought, was a fault. It was also a fault in the present one; for it was his opinion, when the sum in their hands equalled a million, the United States were entitled to an equivalent; and this deficiency in the bill under consideration was with him a solid objection to it.

This company had now been doing business for sixteen years. It extended over the Union. Its ramifications were every where spread; and it was now necessary to take some steps to ascertain whether that business was or was not safe. All the world knew what the difference was between giving out and receiving back. Who could tell what the operations of the bank were--its discounts, or its debts? It was necessary, for itself, that a final day of settlement should come: till then, it could not be ascer tained whether its debts were bad or good. The bank ought to desire it, in order to know the state of their affairs. He would appeal to the man of business, if he, at certain periods, did not find it necessary to bring his books to a close, to know the true state of his affairs. Many prudent men thought it wise to even change the name of their firms-to open new accounts, (dealing honorably with the old,) in order to reject, in the new firm, what they knew, by past experience, were unsafe. If it were necessary for private individuals thus to act, how much more was it incumbent on those who transacted business with the whole country. No one, no matter how honest soever the managers or those concerned in the bank might be, could tell, till its affairs were finally wound up, how safe the United States were in entrusting it with their business.

What was the reason given by the friends of the measure for the recharter? That the bank had extensive business in operation; that many years would be required to wind it up; and that it was necessary, for the public interest, to recharter the same corporation. Now, he held that, if the present charter were allowed to expire, the The bank had, say, several millions in specie in its vaults; affairs of the country would suffer nothing, but go on as the engagements of other banks, and the paper on diswell at the moment of its expiration. Again: that, being count of individuals, enough probably, as honest men, to so long in operation, having brought its dealings to a re-pay all their own engagements: but could the Governgular system, it would be unfair now to do away with it. ment, as stockholders, say how much of this paper was But if this argument be good for any thing, at the end of good, till finally paid? This, with him, [Mr. W.] would fifteen years it will be so much stronger; it will then have be a strong reason against renewing the charter at the a thirty-five years' claim; now it has but twenty. The present time. Even if Congress were disposed to act afargument, with him, [Mr. W.] had no weight. It only terwards in its favor, they should allow its operations to showed they had acted wrong at the beginning, in grant-be suspended for a time. But to renew it at the present ing so long a charter. period, when it had four years to run, and it might be It was contended that they had claims for the benefits said two years more to wind up its affairs, was particu they conferred on the Government and the country by larly objectionable. Was it desirable to do so now? Who their agency. But the very name of having the Govern- could tell what the state of its affairs would be at the exment as partners was more than tantamount to all the acts piration of three years, or the course of dealing between they conferred. From this, alone, they had the best of it and the United States? In this period much additional the bargain; and they only did what any other banking es- light might be acquired; and were we to deprive ourselves tablishment would be glad to be allowed to do. They of this by rechartering so long in anticipation? If the bank had the use of the Government money, deposited with were not thus assured of a new charter, the winding up them as it was collected, till again called on to pay it out. of their affairs would commence, and the public would see They were able to calculate the average of their depo- their way. sites monthly; thence to make use of it, as so much of He had always understood that the purpose of the bank their own capital, as the medium of exchanges-to draw was to do real business, on bona fide paper, and not on and redraw on this amount. Their paying all the pen- paper of mere accommodation. The only reason given, sions was mentioned as an important service by the Sena-as far as he had heard, for this early decision on a rechartor from Maryland, [Mr. SMITH.] But they only paid out ter, was that of the Senator from Pennsylvania, [Mr. DALthe money deposited with them; and any other bank LAS,] that it was necessary to have so long to wind up the would do the same thing on the same terms. They had affairs of the bank. But if the engagements due to the now, since 1816, the use of all these current deposites. bank were real business transactions, every man who had It could not well be calculated their average amount; but, bill coming due, knew the precise time when it would for a few years, they might be assumed as equal to eight occur, and would be prepared to pay it on the day. millions yearly. On this, knowing how much they could such were the business transactions of the bank, he saw rely on as generally in their possession, they were able to not why they should feel difficulty in winding up their acissue notes far beyond their capital. They were able to counts at any time, nor why they should ask for years to calculate on it, with certainty, as equal to their own stock, do so. Mr. W. proceeded to argue that, if the bank and to do business to double their capital; for, if even they were doing accommodation business, it was only an injury exceeded their limits, they knew that so many notes would to the nation, and we would be better without it. Acnot return on them at the same time as to inconvenience commodation, inducing a man to engage in business beyond them. And for this were their services to the Govern- his means, in the end, was always a real loss, both to himment an equivalent? If they were to make a return to the self and to the public. It would be seen, at the expiraUnited States of one-half of the interest thus made on its tion of the charter, if not thus prevented by the renewal, own money, it would be but a moderate compensation. whether the bank was doing a real business or not; and

a

If

SENATE.]

Bank of the United States.--Alexandria Aqueduct.

(JUNE 8, 1832

this, with him, was also a great objection to the present not the fault of the office or institution itself, he denied renewal. Their difficulty in winding up, it was to be the analogy; for, where there was maladministration, it feared, was owing to the extent of their accommodation was a duty, at least, to remove the persons who abused paper; notes were not paid when due, and were lifted and continued by substituting other paper.

the trust, to substitute another body in their place. Was it wise or just to give up all control over this corporation We had some specifications of the bank transactions in so long in advance? If we now renew the charter, we the reports of the other House. They might be called put them beyond our power for nineteen years. Was not common business transactions. He would not say there this too long? It was a settled principle, sacred in all our was any breach of moral rule; yet, to him it appears ex- institutions, the judiciary, from its particular nature, alcue traordinary, their lending money to be paid in instal- excepted, to have frequent recurrence to the will of the ments; some of those instalments not falling due for six people, to deliver up to them the trusts delegated; here months after the expiration of their charter; in one in- we give assurance to the bank that it shall be exempt; stance, to the amount of twenty-five thousand dollars to and, than this abandonment of principle in its favor, one individual. It could not be known how many of such what can be worse? The conduct of this corporation transactions they were engaged in; every day would give had been spoken of, he thought, too highly; gentlenen more time to throw more light on it. were too liberal in their praises, if its former transactions Domestic bills of exchange were another subject of im- were to be referred to. Than of this corporation, the portance. It would appear, from their own statements, affairs of none other had been so badly conducted at its that their transactions in this species of business were ex- commencement. Nothing could be worse until Congress tensive. In April, 1831, they were upwards of fourteen was forced to institute an inquiry, to change and better million seven hundred thousand dollars; in April, 1832, their mode of proceeding. Their chairmen, committees, more than fourteen million eight hundred thousand dol- directors, and all, had been bankrupt, and were only thus lars. It was strange to him if all th's could be real busi- saved, as well by the after management of Mr. Cheres, ness paper. Much of it, it was to be found, was accom- whose ability, high and honorable character, and direc modation paper, of little value, under the form of bills of tion saved the credit of the country, and prevented the exchange. If so, in the end it would prove ruinous to the bank from utter destruction. He might grant that for people, and to the bank itself. How stood the case in the last fifteen years it had been well conducted; but what respect to accommodation? He knew its operation in his security had we that it should continue so? For the diown State; probably similar elsewhere. A man has no rection might be changed at any time; though the present capital; he does not choose to apply himself to industrious managers might be discreet and honest, their successes habits--to work; he can get accommodation at the bank might not; it was always safest to leave nothing to contingento enter into business, provided he can obtain endorsers. cies, and it behooved us, in doing justice to the corporation, He gets endorsers; and to them, for thus guarantying him, to take care also that the community should not be sufferers he gives two per cent.; he pays the bank for its discount Mr. W. then alluded to the system of branch drafts six per cent. At the end of six months he has to do the which had got into practice. In chartering the bank, the same. He still wants money to pay off this; he must have object of the Government was to preserve a certain standrecourse to the medium of some respectable house in Neward and uniformity in the currency. By means of branch Orleans to accept his drafts; this commission house must drafts, this object was defeated, the charter evaded, be paid; so must the endorsers; so must the bank. He and notes put into circulation without the signature of the again goes through the same process. The commission president. Before this bank was incorporated, two difficul house is to be taken care of—he wishes to keep his cre- ties were of frequent occurrence; the public could never dit-goes into the country to purchase produce for the be certain what notes of that day were genuine, or what New Orleans market-it is shipped-he draws on New were spurious. To remedy this, local issues without the Orleans. These are drafts in return; and as the bank will president's signature, under a certain amount, were pro not act for nothing, it charges six per cent. exchange hibited; but, in lieu of notes under fifty dollars, they had both ways. With these and other charges heaped upon put into circulation those branch orders of small amount. it, it would be a miracle if the produce thus exported It was contended that this practice was rendered neces left any thing for the dealer. In the end, he is unable to sary by the multiplication of branches, in order to meet go on longer. He brings ruin on himself, and injures the demand; but when called on for any sum under fifty those with whom he has originally traded. Much of this dollars, they had it in their power, had it been their object, exchange business, to which he had alluded, he [Mr. W.] to give the person applying specie; and specie less than feared, was of this stamp. The same applied to those en- fifty dollars would have been no great incumbrance to ary gaged in agricultural pursuits. If the farmer made use one, it was to be supposed. The fact of their having been of the facilities thus held out to him, in anticipation of the refused this privilege, when they had, on two occasions, sale of his crop, his crop probably, as was frequently the applied for leave to have special officers appointed with case, turned out a failure--he was thus involved in debt. liberty to sign such notes, and the advice of counsel He had, to be sure, the honor of dealing with the bank, against its legality, left them no room to doubt on the and, in the end, to seek for himself a new shelter and subject; and, with such knowledge before them, their another home. Of all modes to render men useless to following it up was decidedly an evasion of their charter. their country, who might otherwise remain solvent and Therefore, he contended, those who had thus evaded its valuable citizens, this of putting the debtor to new sacri-enactments, should not be trusted with its renewal. After fices, which followed accommodations as a matter of some further remarks on the effects of these branch orders course, was the readiest of all.

It was a delicate affair, Mr. W. admitted, to interfere with the charter when granted; but who on that floor, he asked, if disclosures in the interim should be made, that would not regret his vote for a recharter thus in advance? If disclosures should hereafter be made of its injurious tendency, where was the remedy? Or, would any one say, in such a case, that it was not repealable like any other act of Congress? While he agreed to the principle of the Senator from Pennsylvania, [Mr. DALLAS,] that the maladministration of individuals in any office was

in drawing the money from the Western States, and transferring it to the Eastern, and its operation in exhausting the specie, and, in lieu, creating a paper currency in the West, Mr. W., having spoken two hours, gave way, without baying concluded, to a motion by Mr. GRUNDY to adjourn. The Senate then adjourned.

FRIDAY, JUNE 8.

ALEXANDRIA AQUEDUCT.

Mr. CHAMBERS presented a memorial from the citi

JUNE 8, 1832.]

President's Fac Simile.--Bank of the United States.

zens of Georgetown against the bill pending to aid the Alexandria Canal Company.

A motion was made to print the memorial, which was op posed by Mr. CHAMBERS, as having no other object but to delay the action of the Senate on the bill.

Mr. WEBSTER stated that this was an ungracious attempt to defeat a measure for the interests of Alexandria, which had been the most abstemious of all the cities in the District in her demands on the General Government.

Mr. FRELINGHUYSEN, although entertaining similar views as to the ill-timed character of this application, thought the printing an act of courtesy not to be denied. Mr. FOOT expressed regret that whenever applications were made from any part of this District for aid from the Government, there was always some opposing interest interposing itself to embarrass the legislation of Congress. The printing of the memorial was advocated by Mr. MARCY and Mr. FORSYTH.

[SENATE,

It was stated by Mr. KING and Mr. FORSYTH that there were near ten thousand land patents lying before the President, waiting for his signature, and forty thousand others were prepared.

Mr. EWING preferred the fac simile mode to the other. The amendment was opposed by Mr. BIBB, who stated that he never would authorize a Chief Magistrate, on the pretence that he had not time to sign his name, to have a fac simile made of his own name.

The amendment of Mr. FORSYTH was then agreed to-yeas 21, nays 20.

The bill was then laid on the table.

BANK OF THE UNITED STATES.

The Senate then resumed the bill to modify and continue the act to incorporate the subscribers to the Bank of the United States.

Mr. WHITE resumed the observations in opposition to the bill which he commenced yesterday. He conMr. TAZEWELL stated that the project of a free tended that the charter gave to the bank almost unlimited bridge on the pillars of the aqueduct, proposed by the powers in the establishment of branches in any of the memorial, originated with Alexandria; and that Alexan-States or Territories of the Union. He looked at the dria, at one time, proposed a co-operation with George amount of profits which the bank would make by a branch town to accomplish it, which was refused by Georgetown. in Tennessee, where there were very few stockholders; Mr. CLAY defended Georgetown against the imputa- and consequently there would be a drain of the specie tion thrown out in the argument of the gentleman from from that agricultural section, for the benefit of distant, Virginia. He was in favor of the aqueduct, of the free and, in a great proportion, foreign stockholders. Such bridge also, and of the printing of the memorial. He a drain he considered as injurious, not to say ruinous. thought the bill for the aqueduct might be taken up and They who furnish these profits are to have as a considerapassed to-morrow. tion nothing more than a slender chance of borrowing sometimes a little capital, on accommodation. In the end, this accommodation is mischievous; and farmers who resort to it soon borrow themselves out of house and out of home. On this ground, therefore, he objected to the bank as impoverishing the country.

Mr. CHAMBERS then withdrew his opposition to the printing.

Mr. MANGUM wished the two subjects to be disconnected, and to be taken up in separate bills.

Mr. CLAYTON expressed a hope that the bill for the benefit of Alexandria would be taken up and passed; and that the memorial from Georgetown should also receive its proper attention. But if the bill were now postponed, he apprehended that it would be impossible to pass it this session. He gave the reasons which would influence him as a member of the District Committee to give every attention to the wishes of Georgetown, but without prejudice to the interests of Alexandria.

He preferred State banks, in which the holders of stock were citizens, to any of these branches.

A stronger objection was, that, in consequence of its large capital, and its great money influence, it woul! have the power of drawing to itself all the active capital which ought to be distributed among local institutions. The effect would be to put down those institutions, as every man of capital will desire to connect himself with

The memorial was then ordered to be laid on the table this bank. Not only without the consent, but contrary to and printed.

PRESIDENT'S FAC SIMILE.

On motion of Mr. KING, the Senate then proceeded to consider the bill for the appointment of a Recorder of the Land Office, and prescribing the manner in which patents shall be issued.

The question pending being on the motion of Mr. FonSYTH to strike out the whole bill after the enacting words, and to insert an authority to use a fac simile of the President's signature, and the employment of a private secretary of the President, to be employed in its use,

the consent of the States, the principal directors have the power to establish branches where they please. Who elects the officers? The principal bank puts in and changes the officers, at its pleasure. He objected to placing too much confidence in the bank, and looked at the possibility of the influence of this institution being directed to the election of such Senators and Representatives, State and federal, as may be favorable to its purposes. When the board of principal stockholders have determined on a particular object, they have only to communicate their views to the branch directors. In this way, they could always operate to secure a renewal, or a modification of their charter. The branches, acquainted with the object of the parent bank, would induce their customers, by the promise of greater accommodation in the event of some modifications being obtained, and a withdrawal of a part, if they should not be obtained, to give their votes for persons who would aid in the attainment of such mod.fications. He did not believe that such a

Mr. POINDEXTER moved to amend the amendment, by introducing the words "for the time being" after the words "President of the United States;" and by adding a provision that cach President, at the end of his term of service, shall cause the fac simile to be destroyed. Mr. FORSYTH accepted the amendment. The change of system was advocated by Mr. CLAY, who said that by the present mode an unreasonable amount power could be resisted. He could not see the extent of mechanical labor was imposed on the Chief Magistrate, of evil which might be the result of the efforts of an or interfering with duties of an intellectual character. He ganized corps of men, four of whom thay be sufficient to wished the friends of the administration to settle the act, speaking the same language in every hole and cormode among themselves, and pledged himself on this ques- ner of the Union. It was just as well to give the direc tion to support the administration with all possible zeal. tors the kind of charter they require, because they will Mr. POINDEXTER opposed the principle of substitut- have the power to modify their charter whenever they ing any other signature to transfers of the public domain, than that of the President himself. He preferred the adoption of a fac simile.

please.

But the power of the bank might also be applied to political purposes; and might be applied with a force which

SENATE.]

Bank of the United States.

[JUNE 8, 1832.

would be found to be irresistible. His apprehensions had ney; and as the amount of specie in the vaults was not suf always been alive to the contingency that this great mo- ficient to meet all the notes, the bank would cease to be ney power would connect itself with the Federal Go- specie-paying.

vernment, and regulate the election of Chief Magistrate. In peace the Government could have every requisite Whoever lived long enough would see that this institution facility for the collection and safe keeping of the revenue and the Executive would go together on all questions of by the State banks. There was no complaint of these magnitude; and whenever the next election should be banks until the war. He had no hesitation in asserting over, whether the present Chief Magistrate should be put that these local institutions would be sufficient for all the in or put out, we shall never again hear any President purposes of the Government. speaking in opposition to the will of the bank. In case of He concluded with stating that his objections, on the war, there would be found difficulty on the part of the various grounds he had specified, to the continuance of Government in obtaining loans from this bank; and as the the charter of the bank, were insuperable. He denied local banks would be all destroyed, the operations of the the power of Congress to incorporate such a bank. If Government might be greatly embarrassed. In the last they possessed the power, he insisted that its exercise in war, supposing that the directors of a bank of this influ- this manner would be inexpedient. He thought that the ence had entertained the opinion that the war was an un- bank might interfere with the elections, as the gentleman righteous one, and would not have contributed to carry it from Pennsylvania had stated it would be tempted to do on, what embarrassments would not have ensued? The if the term of its charter were shortened. The deposit. bank would have power, therefore, to compel the Go-ing of the public funds in this bank without any demand vernment to make peace or war, at its will. The bank, of interest, was a bounty given to them to interfere in having the control of the whole circulating medium of the these elections. The present bill tempted the directors country, can work any results which they please. They of the bank too far; and, if they resisted the temptation, can influence the value of property every where, and he would say that all the eulogies which had been passed change it to any hands which they choose to favor. The upon them by the friends of the bank came far short of bank can also regulate the rate of foreign and domestic their real merits. exchange, and can elevate or depress it, as circumstances may render it profitable or desirable for them to do so. He adverted to the influence which the foreign stockhold- Mr. President: In favor of the extension of the charter ers might have in a war with Great Britain, in preventing of the United States' Bank, it is urged that this institution any efficiency on the part of our Government. He held is necessary for the preservation of a sound and equal curthat there was no security in the reflection that the bank rency. It has been assumed that, without this institution, had hitherto done well. the currency which was disturbed and depreciated by the

Mr. HILL then read the following observations in opposition to the bill:

He further stated that he still retained all his constitu- necessities of the last war with Great Britain, would never tional objections to the delegation of these important pow-have been restored. My belief is, that, had the United ers to any individual corporation. It was a power which States' Bank existed during the late war, the moneyed power had been invariably contested since the year 1791, when which it would have wielded, aided by that moneyed power it was first made a vexed question. It was then contested at the East, which preferred investments in illicit traffic before the President, when the cabinet was divided, two with the enemy to investments aiding our own country, and two, when he signed the bill. The lights which had would have prostrated the Government at the feet of the been subsequently shed on the subject, were conclusive, common enemy-would have compelled this Government in his mind, as to the propriety with which the constitu- to make such peace with Great Britain as she should dic tional power to incorporate a bank had been contested.tate. Had this bank, if then existing, done like those He looked at the various powers expressed in the constitu- patriotic State institutions which loaned money to the Go. tion out of which this power had been derived, and denied vernment, and were in consequence obliged to suspend that any of those powers had warranted such derivation. specie payments, it requires not the spirit of prophecy to He argued that the framers of the constitution did not foresee that the fate of the United States' Bank would have give any such power, for the purpose of carrying into ef- been that of the local banks. Divest this United States' fect any of the great powers given by the constitution; Bank of the Government deposites-draw from it the Goand that the moment such power was assumed, the power vernment funds, as they must be drawn in all times of was assumed to make an individual take the notes of any public exigency, and it stands on no better ground than corporation the Government may create. He denied that, every local bank in the country stands. It is without nain the event of another war, this bank could continue to tional character; the national name which it assumes is be a specie-paying bank. The war disturbed the curren- mere moonshine. Strike this bank out of existence, in a cy; money was necessary for the army and navy. The time of general prosperity, and the means for preserving banks could not supply it without suspending specie pay. a sound currency and for facilitating exchanges exist prements; but it was considered patriotic to incur this con- cisely the same. The price of exchange is always favor sequence, for the benefit of the country; and they who able to that section of the country where the greatest refused to incur, made themselves liable to the suspicion balance is due. If, for instance, the interior country con that they did not desire to see the war brought to a suc- sumes more than it produces, if it buys more than it sells, cessful termination. This state of things was brought the price of exchange will be against the interior. If about with the connivance, nay, the approbation of the Go- the States of the South or West consume more from abroad vernment; and it was to remedy an evil brought about with than they furnish for the market at home, the price of exthe encouragement of the Government that the United change will be increased in those States equal to the ex States' Bank was established. It was to restore the sound-pense of transporting specie funds to the point where the ness of the currency, which was disturbed by the war. debts may be due--to the city of New York, or Philadel He referred to the inefficiency of the bank, when in the phia, or Boston, if the purchases shall there be made. On quasi war with France, in 1798, 1799, a loan was obtained the other hand, if those States send more produce to New from individuals at eight per cent. The bank was at that York, than the amount of their purchases at New York, time in existence, but it did not give any aid to the opera- the exchange will be in favor of the States, and against New tions of the Government. In the event of a war, when York. The Bank of the United States is of no more value these notes were offered, the people would call to mind in facilitating these exchanges, than any broker's shop in the continental money, and would immediately take the the country. This bank charges the same for its bills of notes to the bank, and get them exchanged for hard mo- exchange as does any broker: nay, by monopolizing this