guilty of perjury, and if he be the owner, im. porter, or consignee, the merchandise shall be forfeited.

SEC. 10. And be it further enacted, That it shall be the duty of the Secretary of the Treasury, under the direction of the President of the United States, from time to time, to establish such rules and regulations, not inconsistent with the laws of the United States, as the President of the United States shall think proper, to secure a just, faithful, and impartial ap praisal of all goods, wares and merchandise, as aforesaid, imported into the U. States, and just and proper entries of such actual value thereof and of the square yards, parcels, or other quan tities thereof, as the case may require, and of such actual value of every of them, and it shall be the duty of the Secretary of the Treasury to report all such rules and regulations, with the reasons therefor, to the then next session of Congress.

lector within whose district the same shall be imported or entered, to cause the actual value thereof, at the time purchased, and place from which the same shall have been imported into the United States, to be appraised, estimated, and ascertained, and the number of such yards, parcels, or quantities, and such actual value of every of them, as the case may require: And it shall, in every such case, be the duty of the appraisers of the United States, and every of them, and of every other person who shall act as such appaiser, by all the reasonable ways or means in his or their power, to ascertain, estimate, and appraise the true and actual value, any invoice or affidavit thereto to the contrary notwithstanding, of the said goods, wares, and merchandise, at the time purchased, and place from whence the same shall have been import ed into the United States, and the number of such yards, parcels, or quantities, and such actual value of every of them, as the case may requires and all such goods, wares, and mer- SEC. 11. And be it further enacted, That from chandises, being manufactures of wool, or and after the third day of March aforesaid, in whereyf wool shall be a component part, which consideration of the duties imposed on the sev shall be imported into the United States in an eral articles used in the construction and fitting unfinished condition, shall, in every such ap. of ships and vessels, there be allowed a drawpraisal, be taken, deemed, and estimated by the back at the rate of two dollars per ton on resaid appraisers, and every of them, and every gistered vessels; of one dollar and twenty-five person who shall act as such appraiser, to have cents per ton on enrolled and licensed vessels, been, at the time purchased, and place from except steamboats, and fifty cents per ton on whence the same were imported into the United steamboats; such drawback to be paid, as the States, of as great actual value as if the same case may be, to the owners of enrolled and lihad been entirely finished: Provided, that, in censed vessels on the taking out of the enrollall cases where any goods, wares, or merchan- ment and license for the first time, if such vesdise, subject to ad valorem duty, or whereon sels shall not have been previously registered; the duty is or shall be by law regulated by, or and to the owners of registered vessels on be directed to be estimated or levied upon, the clearing, for the first time, for a foreign port or value of the square yard, or any other quantity place, other than an adjoining State or l'erri. or parcel thereof, shall have been imported tory, or the West Indies: provided, that such into the United States from a country other vessels shall not have been previously enrolled than that in which the same were manufactured and licensed; and in case registered vessels not or produced, the appraisers shall value the previously enrolled and licensed shall, in the same at the current value thereof at the time first instance, clear out for a foreign port or of purchase, before such last exportation to the place, in an adjoining State or Territory, or the United States, in the country where the same West Indies, then the drawback to such ves. may have been originally manufactured or pro-sel is only to be at the rate of one dollar and duced. twenty five tents per ton.

SEC. 9. And be it further enactea, That it SEC. 12. And be it further enacted, That an shall be lawful for the appraisers to call before addition of ten per centum shall be made to the them, and examine upon oath, any owner, im several rates of duties by this act imposed, in porter, consignee, or other person, touching respect to all goods, wares, and merchandise, any matter or thing which they may deem ma- on the importation of which, in American or terial, in ascertaing the true value of any mer-foreign vessels, a specific discrimination has chandise imported, and to require the preduc-not already been made, which, from and after tion, on oath, of any letters, ccounts, or in-the 3d day of March aforesaid, shall be im voices in his possession, relating to the same, ported in ships or vessels of the United States: for which purpose they are hereby authorised Provided, that this additional duty shall not spe to administer oaths: and if any person so called, ply to goods, wares and merchandise, which shall fail to attend, or shall decline to answer, shall be imported after said day in ships or vesor to produce such papers when so required, heels not of the U. States, entitled by treaty, or shall forfeit and pay to the U. States fifty dol by an act or acts of Congress, to be entered in lars, and if such person be the owner, import- the ports of the United States, on the payment er or consignee, the appraisement which the of the same duties as shall then be paid on goods, said appraisers may make of the goods, wares wares and merchandise, imported in ships or or merchandise, shall be final and conclusive, vessels of the United States. any act of Congress to the contrary notwith SEC. 13. And be it further enacted, That standing. And any person who shall swear there shall be allowed a drawback of the du falsely on such examination, shall be deemed ties by this act imposed, on goods, wares, and

merchandise, which shall be imported from and after the said 3d day of March, upon the exportation thereof within the time, and in the manner prescribed, in the existing laws at the time.

UNITED STATES' BANK.

TWENTY-SECOND CONGRESS-FIRST SESSION. House of Representatives, March 14, 1832. SEC. 14. And be it further enacted, That the Resolved, That a select committee be apexisting laws at the time shall extend to, and pointed to inspect the books, and to examine into be in force for the collection of the duties im the proceedings of the Bank of the U. States, to posed by this act, on goods, wares, and mer-report thereon, and to report whether the prochandise, which shall be imported into the visions of its charter have been violated or not; United States from and after the said 3d day of that the said committee have leave to meet in the March; and for the recovery, collection, dis city of Philadelphia, and shall make their final tribution, and remission of all fines, penalties, report on or before the twenty-first day of April and forfeitures, and for the allowance of draw next; that they shall have power to send for backs by this act authorized, as fully and effec-persons and papers, and to employ the requisite tually as if every regulation restriction, penal clerks, the expense of which shall be audited ty, forfeiture, provision, clause, matter, and and allowed by the Committee of Accounts, and thing, in the then existing laws contained, had paid out of the contingent fund of the House. been inserted in, and re enacted by this act; And that so much of any act which is contrary to this act, shall be, and the same is hereby, repealed.

the 23d of March last; and, after the most attentive and laborious investigation which their limited time would allow, the majority have prepared the following report, which they beg leave to submit to the House of Representatives.

REPORT OF THE MAJORITY. Mr. CLAYTON, on behalf of the majority of the Committee appointed on the 14th March, SEC. 15. And be it further enacted, That 1832, to inspect the books, and examine into whenever goods composed wholly, or in part, the the proceedings of the Bank of the Uniof wool or cotton, of similar kind, but different ted States, made the following report: quality, are found in the same packages charg- In obedience to the foregoing resolution, ed at an average price, it shall be the duty of the committee appointed under the same, prothe appraisers to adopt the value of the best ceeded to the city of Philadelphia, and comarticle contained in such package, and so char-menced the inspection of the books, and the ged as the average value of the whole; and examination of the proceedings of the bank on that so much of the act entitled "An act for the more effectual collection of the impost du ties," approved the 28th of May, 1830, as requires the appraisers to adopt the value of the best article contained in a package as the ave rage value of the whole, be, and the same is hereby, repealed. They believed, that, as the House wished inSEC. 16. And be it further enacted. That formation more for the purpose of enlightening henever, upon the opening and examination their minds, and assisting their judgments as of any package or packages of imported goods, to the expediency of again renewing its charcomposed wholly or in part of wool or cotton, ter, than to abridge it of the small remnant of in the manner provided by the fourth section time left for its operation, a liberal construction of the act for the more effectual collection of of the resolution would not be deemed a dethe impost duties, approved on the 28th day of parture from their trust; consequently they May, 1830, the said goods shall be found not have directed their inquiries to two general obto correspond with the entry thereof at the jects. custom house; and if any package shall be 1st. Whether the provisions of the charter found to contain any article not entered, such had been violated. article shall be forfeited; or if the package be

2d. Whether there have been any circummade up with intent to evade or defraud the stance of mismanagement against which future revenue, the package shall be forfeited; and legislation might guard, or which should de so much of the said section as prescribes a for-stroy its claims to further confidence. feiture of goods found not to correspond with On the first point, following the example of the invoice thereof, be, and the same is hereby, a former committee, making a similar investi. repealed. gation, without expressing any opinion on such cases as have been subjects of imputation against the bank.

These cases they conceive to be six in num ber, and are as follow:

1st. In relation to usury.
2d. In relation to the issuing of branch or

SEC. 17. And be it further enacted, That from and after the said 3d day of March, 1833, the ad valorem rates of duty on goods, wares, and merchandise, shall be estimated in the manner following: to the actual cost, if the same shall have been actually purchased, or the actual value, if the same shall have been procured ders, as a circulation. otherwise than by purchase, the time and place when and where purchased or otherwise procured; or to the appraised value, if apprais ed, shall be added all charges, except insu rance, from the foreign port of exportation to the United States.

3d. The selling coin, and particularly American coin.

4th. The sale of stock obtained from Government under special acts of Congress.

5th. Making donations for roads and canals, and other objects.

6th. Building houses to rent or sell, and the smaller denomination, which was not acted erecting other structures in aid of that object.

66

upon.

On the first ground, the president of the The president states the, "application was bank refers us to a statement marked G, and again renewed, and a select committee of the says it will explain the only cases to which House of Representatives, reported in favor of this description might be considered applicable, allowing the appointment of signers, on the two of them being cases in which the board 27th of February, 1823; but there war no ac repaid the amount considered over charged, tion of the House upon it." And he refers us and in regard to the third, no application has to "pamphlet, vol. viii. No. 11. been made for any change in the form of the original loan." See said statement marked No. 1.

On the first of December, 1826, the Presi dent was instructed to endeavor to procure the necessary change. He says, "he reported on To a question asked the president, whether the 27th of February, 1827, that no action on any cases of disguised loans, and domestic bills the subject would take place at that session of exchange, had come to the knowledge of of Congress, and, accordingly, the matter was the parent bank, in which the branches had referred to the committee on the offices." See received usurers interest? He replied he had Doc. 3. c. never heard of any, but made a further state

He adds, "the opinion of Mr. Binney, Mr. ment, marked No. 2, in which he states that the Webster, and Mr. Wirt, the Attorney General, usual custom is to charge upon domestic bills of was taken on the subject of issuing branch exchange, the rate of interest and the rate of drafts." See Doc. 3. c. exchange, and if the sums united should ex- On the 6th of April, 1827, the following comceed six per cent. it is not usury; and gives an munication was made to the board of directors: explanation in said statement. "The committee on the offices, to whom was

rize the signature of notes by other persons than the president and cashier, report that, in various parts of the Union, but more especially

On the second ground, the committee referred, on the 23d of February last, the report will submit document Number 3, and its of the president of the bank, stating the unsuc inclosures, in which the cause and origin of cessful result of the application to Congress for branch drafts will be fully seen. The presi- an alteration of the charter, which would authodent states "the inability of the bank to furnish the amount of circulating medium, which it was created to supply, became apparent at an early period. In a year after its organization, the southern and western sections, there is a the directors presented a memorial to Con- constant and unceasing demand at the offices gress, dated 9th January, 1818, requesting that for the smaller denominations of notes, which it an alteration might be made in the charter, so is impossible to supply." They therefore sug as to authorize the president and cashiers of the gest that the "discount officers should be inseveral branches, to sign the notes issued by structed to draw checks on the cashier of the those branches." See copy of the memorial bank for smaller sums than they have hitherto marked 3 A, in which it is stated that, inas-been in the habit of furnishing. In order to much as the act to incorporate the subscrib- save the labor of preparing such checks at the ers to the Bank of the United States,' requires offices, as well for the greater security of the that the bills or notes which may be issued by bank and the community, it has been deemed order of the said corporation, shall be signed best to prepare the blank forms of a uniform by the president, and counsersigned by the appearance, and to distribute them from the paprincipal cashier, it has been found impractica- rent bank. Such forms have been accordingly ble to supply, in any reasonable degree, the re-devised, and are now submitted to the board quired circulation from the hank and its numer- with the recommendation of the committee, that ous offices of discount and déposite," it is, the experiment be tried, and, if found useful to therefore, asked of Congress to permit the pre- the community, be permanently adopted." See sidents and cashiers of branch banks to sign and Doc. 3. c. issue bills. The application was not granted. The

The document marked 4, d, is a correspondpresident states the subject was resumed by an- énce between the president of the bank and the other memorial, dated November 24th, 1820. See Secretary of the Treasury, on the character of copy of the memorial marked 3, 6, in which it these bank drafts, which has already been is stated, "under the charter it has been doubt-printed and submitted to Congress. ed whether the bank has power to authorize The paper marked 5, E, contains instructions the issuing of notes not signed by the president, to the branch banks as to the issue of branch and countersigned by the cashier. The labor orders. On the 21st of April, 1827, the cashier and the time necessary to sign notes for the of the parent bank writes a circular to the rebank and all its branches, are much greater spective branches,informing them, among other than either of those offices can bestow upon things, that the directors have "deemed it best that object; and hence the bank has been una- that blank forms of an uniform appearance ble to put in circulation a sufficient amount of should be prepared with skill and care at the notes of the smaller denominations, which the parent bank, and thence distributed to such of public most want, and which are best calculat- the southern and western offices as seem to ed to serve the interest of the bank." It then stand most in need of them, or to be able best requests that power be given to the parent bank to employ them usefully. Enclosed I send you to appoint one or more persons to sign notes of a specimen of the 5 and $10 blank drafts adopt

ed. After being numbered, registered, and it may be well questioned whether foreign coin appropriated here to certain offices, a supply of is bullion. The Constitution gives to Congress them will be forwarded as soon as possible, with the right to regulate its own and foreign coins instructions to the cashier of each office to have when, therefore, the latter has a value prefixed every four hundred drafts in succession, and as to it by law and is suffered to be used, with that they may be wanted, filled in the order of some regulated value, in like manner with our own one officer of the branch, by whom they must coin, it would seem not to have lost the name be endorsed lengthwise, and about the middle and character of coin, and is made by force of of the draft, payable to bearer, before they be law what it would be, if carried through the signed by the president and cashier. When mint and subjected to the condition of our own completed, they are to be furnished to the cus-coin; and, therefore, to deal in it as a commotomers of the bank, or other persons who may wish to procure them. The entries respecting them, both here and at the branches, are intended for convenience sake, to be analogous to those of branch notes. Their receipt under the denomination of branch drafts, is to be similarly acknowledged by tne cashier, and in duplicate through the respective presidents. They are besides to be reported on the weekly, state of the office, as branch draft paper received, used, and on hand.

And whenever they may be transiter between the offices must be so noticed at the foot of the statement, like other packages."

On the 7th of January, 1831, a resolution passed the board to issue drafts of the denomination of twenty dollars. These branch orders, when discharged by the parent bank, are again reissued by that bank when it has no small notes of its own. The paper marked 6 F, contains a statement of the amount of branch drafts issued, on hand, in circulation, and the offices from whence issued. By this table it will be perceived that $10,781,635 have issued; $3,371,544 are on hand; and $7,410,090 are in circulation.

The foregoing is a succinct history of the issue of branch drafts. Whether it can be justified under the charter of the bank, the committee will leave to the better judgment of Congress.

dity, is calculated to disturb its legal value, and render at least that portion of the metallic currency uncertain and fluctuating.

If, however, the committee have taken a wrong view of this subject, so far as foreign coin is concerned, it seems by the statement of the president of the bank, to be virtually admitted that our own coin is not bullion, and, therefore; does not come within the objects of trade allowed to the bank by the 9th fundamental rule of the charter. By reference to the statement of specie sold by the bank, marked No. 24, it will be found that the sum of $84,734 44 of American gold coin has been parted with.

The 4th case is, selling stock obtained from Government under special acts of Congress. They have thought it their duty to present the subject to the consideration of Congress.

It is necessary here to observe, that the charter must have intended some meaning in prohibiting the bank from dealing in stocks. There is, perhaps, no subject so fruitful in speculations as stocks, and none which is so fluctu ating and liable to be influenced by the slightes causes, often producing ruin or immense fortunes in the most sudden manner. To prevent such a great moneyed institution then as the bank, from dealing in this article, which its vast means could raise and depress at pleasure, seems to have been a wise provision in the charter. The The third case is the selling coin, and parti- right of the bank to acquire or sell stocks, is a cularly American coin. The attention of the special one; it must be done by virtue of a law committee was drawn to this subject by of Congress. The charter itself provided that the fact that the General Government had, a part of its capital might be paid in the stock on one occasion, to pay the bank two pre of the Government, and such stock, particularly, cent. on ten thousand Spanish dollars, might be disposed of. But the committee which it wanted for the benefit of the navy in suggests whether this will apply to other South America. To an interrogatory put to stocks obtained by virtue of a subsequent law the President on this subject, he replied, "The of Congress, unless that law specially conbank is authorized to deal in bullion. It buys fers the power to dispose of it. In two imporand sells bullion. All foreign coins are bullion. tant loans obtained from the Government since Their being a legal tender does not make them the charter was granted, the bank has parted the less bullion, and the bank having bought with a valuable stock; and these cases will ilthem at a premium, sells them at a premium. lustrate the point now submitted to Congress. The obligation of the bank is, to pay the claims While the committee refer to the transactions of on it in coin, American coin, or legalized coin; the bank in the funded debt of the United and if the foreign coin is worth, intrinsically, or States, for the purpose above mentioned, they commercially, more than the American coin, also have in view the presentation of the subthe difference in value must be worth the dif-ject, to show not only the manner of disposing ference in specie, and there seems no reason why the bank should sell its bullion any more than its bills of exchange, at less than their vaIne." He then refers the committee to a correspondence, marked No. 4.

Although the bank acted under legal advice,

of that stock, but whether it was not contrary to the express understanding with the Government at the time of obtaining the stocks. For the loan of $4,000,000 of 5 per cents. made in 1821, and the $5,000,000 of 44 per cents, made in December, 1824, there was strong individual

competition, at a premium for a part or the mentioned with feelings of pride, that such is the whole, against the bank; yet, the bank had a high credit of the Government, its stock is better preference over the individual offers, upon the than specie, and would be to the bank, in any principle that it would be more advantageous to emergy, precisely the same.

give it to the bank at a reduced rate, and parti- The committee proceed to mention the 5th cipate as a partner, than to give it to indivi- case, which is making donations for roads, caduals at a premium. This was confirmed at nals, and other objects, the amount of which is, the Treasury. The president of the bank, in a $4,620 00, as will appear by document No. 7. letter dated 15th December, 1824, which will Two of the largest of these items, amounting be found among the documentary testimony, to three thousand dollars, are for turnpike after saying he had taken the whole of the roads made, too, after the General Government $5,000,000 loan at par, says, "and since we had declined to make appropriations for simihave taken the loan at par, on the distinct lar objects.* ground of our having the means of doing it, it

A question would naturally arise, whether would be advisable, in every point of view, not the public funds in the bank, for that instituto sell any of the Florida loan in Boston." By tion, is expressly founded upon the principle a statement of the amount of funded debt sold that it is necessary to, and constitutes a part by the bank, marked No. 6, it will be seen that, of the Treasury of the United States, can be as early as June and July, 1825, the year after appropriated to objects indirectly, by the of it was taken, the bank began to sell this stock, ficers of that institution, when the Goand continued to do so, sometimes at a premium vernment directly refuses to expend its reand sometimes at a loss, up to the 27th day of venues on the very same objects. The comNovember, 1829, on which day they had dis-mittee have looked in vain for any authority in posed of all but $93,925 92, and that too at a the charter to give away the money of the loss of $4,443 34, notwithstanding offers were stockholders. If the charter contains the powmade by individuals for a large amount, at a ers by which the bank is to act, and they are to premium, and rejected by the Government, up-be strictly pursued, there is then no grant to on the principle before stated. The same do- make gratuities for any object whatever. cument shows that there was, between Februa- The consequences of the exercise of such a ry, 1829, and October of the same year, sold of right, might be fraught with very great injury the $5,000,000 Florida loan, $1,742,261, at a to the stockholders; certainly of dangerous inloss of $17,661 09. For this loan, the commit- terference in the rival trade of different sec*tee are not aware of there being any offers by tions of the country, and of pernicious influindividuals at a premium. The same document ence upon the operations of Government. shows, that, between February, 1826, and Fe- The committee approach the last ground, bruary, 1832, the whole of the $4,000,000 loan which is the building houses to rent or sell, of 5 per cents. of 1821, has been disposed of at and erecting other structures in aid of that oba premium of $136,789 25. The premium paid ject. They will merely present the fact and for which, at the time it was taken, was pro- the law, and leave the House to place their vided for in a semi-annual appropriation of own construction upon the case. $60,000, in the report of the 1st of July, 1821, By an extract from the minutes of the board befored adverted to. By these operations, it of directors, communicated to the Senate on the will be obviously perceived, that, if the bank is 12th day of March last, the following facts apallowed to sell stocks acquired by special agree-pear, viz:

ments with the Government, it can secure, by "The committee on the offices, to whom speculations, all the advantage which the Go-was, this day, referred a letter to the president, vernment might possess, in putting up its loans from George W. Jones, agent, dated May 23d, to the highest bidder. It not only destroys recommending to the bank the construction of competition, but takes the loan of the Govern- two canal basins, and the erection of warehouses ment from other individuals, who would have around one of them, according to the plan subgiven a premium for it, and which the Govern-mitted by him, recommend to the board the ment refuses, because it expects to derive a adoption of the following resolution: greater profit in another way, but in which it "Resolved, That the board approve of the formay be defeated, by an immediate sale of the mation of two canal basins at Cincinnati, proloan, and which, if the right to sell by the bank posed by Mr. Jones; one of them to be on is acknowledged, might have been made direct- square number fifty-five; (55,) and the other ly to those very individuals who had just offer- to be on the square of ground between Walnut ed a premium. In relation to the four million and Vine streets, and Canal and St. Clair on loan of 5 per cents. of 1821, Mr. Cheves, in his Court streets; and that he be authorised to erect report on the 1st Oct., 1822, says: "The four forthwith, warehouses on the margin of this last million loan of five per cents. are longer irre mentioned basin, not exceeding six in number, deemable than any other stock of the Govern- either in one block or separately, as he may deem ment of the United States, and hence probably most expedient for the interest of the bank." this stock is more valuable than any other stock

of the United States." He also says, "the *The president furnished this statement with more the bank can retain of this stock, the bet-out explaining the grounds of these donations, ter for the institution." In the whole of which, on explanation having been particularly requir the committee most fully concur; for, it may be ed of him.