to those immortal splendors, when employed, should doubt the expediency of this policy for as it occasionally was, for that purpose, in his our country, or be cold in the pursuit. But the addresses to the Athenian people. It was by bitter hostility it encounters from such men, is the steady pursuit of the same policy, that their to me astonishing; it puzzles and confounds me literary works of every kind (and in every kind when I would account for it. But for my rethey were extremely numerous) came to be spect for them, I should say it was like the faequally the master pieces of human genius; naticism of hallucinated minds, feeding on their and being more diffused, and less impaired by own chimeras; so irrational, so visionary, it apthe injuries of time, than the other monuments pears to me, to impute any distress that may of the arts, they were, and still are, more the exist, in any part of our country, to this policy wonders of the world. They were carried to as its cause. It appears to me like the insanity such height of perfection, that, after it, the that mistakes a friend for a foe, and under Athenians themselves could never surpass that delusion is fatally bent on destroying that them; while others have never been able to friend. equal them. Now, what has been the effect? We have an ample revenue from imports, an Literature and arts have gathered round that increasing revenue from imports-and made so city a charm that was, and is, felt by all man- by this very policy; unincumb red with debt, kind; which no distance, no time, can dispel. or soon to be disincumbered; ample for our ci No scholar, of any age or clime, but has made vil list; ample for all the works of external de(in fancy, at least,) a pilgrimage to its shore; fence, and all works of internal improvementthere to call around him the shades of their works called for by all the interests of the counmighty dead, whose minds still live, and delight try-works that would cost the Government noand astonish in their immortal works. It is em-thing but the advance of the capital, to be agai phatically the city of the heart-where the af returned to the treasury with interest—works fections delight to dwell; the green spot of the that would reimburse themselves, ten times earth-where the fancy loves to linger. How told, in the increased wealth of the country poor is brute force-even the most magnificent, thereby. And this policy, from which this ameven the Roman-compared to the empire of ple and increasing revenue springs, as from a mind, to which all other minds pay their volun perennial fountain, is to be abandoned; not sustary homage! Her literature and her arts, ac-pended, but abandoned, now and for ever! quired to Athens this empire, which her re- The idea of improving the condition of the mains still preserve, and always will preserve. country for intercourse is to be abandoned now In contemplating the phenomenon of her lite- and for ever, at least, so far as this Government rary achievements, a great and profound writer is to be concerned.. The depreciation, the could not forbear saying, "that it seemed a loss, the ruin, as to works of this kind, now in providential event, in honor of human nature, being or progress, whether by States or indito show to what perfection the species migh|viduals, which will be involved in the abandonascend." Call it providential, if you please-ment of this policy as its necessary conse as every event is, in some sense, providential-quence; the final bar, as another necessary but it was the effect of artifical causes; as consequence of such abandonment, to further much so as the military power of the Romans; like.enterprises, either by States or individuals; it was the effect of a policy, early adopted, and the entire and eternal loss of this whole object always afterwards steadily pursued. I know to our country, are disregarded, and treated as the opinion that ascribes all this to a peculiar trifles light as air. This ample revenue-amfelicity of nature. Horace, I know, says— ple for all the purposes indicated, and ample "Graii; ingenium; Graiis dedit ore rotundo tions, which, in due time, would make this for the further purpose of laying those founda Musa loqui; preter laudem nullius avaris." country as illustrious in mind and its immortal But what gave them that all absorbing ava-productions as pre-eminent for physical re. rice of fame? It was infused into them by their sources and prosperous condition-this ample institutions; it was that one universal sentirevenue, that does not bear upon the country ment, generated by those institutions; and what with the weight of a feather-that is not felt by he calls the gift of genius, bestowed by the the people as a burthen, more than the air they muses, was the common mind, exalted and re-breathe, is to be abandoned, and for what? To fined by the operation and force of the same in favor foreign industry, at the expense of our stitutions. It was these which had refined an own: for, whatever may be intended, this will Athenian mob, as the Athenian people are be the effect. The stimulus it gives to our insometimes called, into an audience of critical dustry, and the increased profits of that indusThe Attic eloquence, called so by way try, inake the supposed burthen merely imagi of pre-eminence, was but a conformity to the nary. Besides, the necessary effect of the porequirements of that taste. licy is to reduce prices; this is not denied, nor can it be; but it is said the effect is not immediste. In legislation, are we to look, only, to the present moment and immediate effect? Is the State the being of a day? Have we not But to return to this protecting policy. It children to come after us? Will they not have seems to me strange, passing strange, that en-children to come after them? Have those who lightened, and reflecting, and patriotic men, are to descend from us no claim to our provi. taste. Such is the wonderful efficacy of steadiness of pursuit (as we have seen displayed in those instances) by a nation pursuing national objects by adequate means. dence for their good? The patriot statesman acts for the State, and with reference to the be ing and well-being of the State, now and here after-for a long hereafter-and in the hope of a never ending hereafter. Are we, as patrio statesmen, in order to avoid a slight and transient burthen to ourselves, (if it be one,) to throw away the opportunity and the means of providing for the great and permanent interests of the country, for all future time? that the cotton planter, on the banks of the Savannah, pays the duties on the penknife in my pocket; and so of any other article that is imported from England, provided his cotton goes there; and no matter who sends it. If these metaphysics did not distress the south more than the revenue does, I believe they would be a much more contented people. Show me, I again ask it, the connexion between the revenue as the cause, and your disI do not mean to deny that there is distress tress as the effect, and show it without the aid Your comin the southern States. The gentlemen of the of these juggling metaphysics One is, that your south tell us so; they are better judges of that plaints-what are they? matter than I, who have never been there, can lands are worn down, and that your crops are be; and I believe them. I hope these gentle unprofitable. Pray, is the revenue the cause men will, in turn, reciprocate the courtesy; and of that sterility? Another is, the low prices of when they talk of the unprosperous condition your crops. Now, but for the revenue, those of the northern States, and the unhappy state low prices would be still lower; for that enof the manufacturing population, that they will larges the demand, and sustains the market of The last is, the price you pay for allow us, who live in those States, to be better your crops. judges of that matter than they are. We ask your supplies. But these prices are lower them to believe us, when we tell them, as we than they were before the accursed tariff was do, that their condition is not unprosperous; imposed. To this, you say these low prices that the state of their manufacturing population would have been still lower but for the accurs Here lies your whole case; for, unis not unhappy; that, on the contrary, our pros-ed tariff. perity is great, and daily increasing; that the less you show this, every cause of complaint vivid picture, drawn of that prosperity, by my against the tariff, as the cause of your distress, honorable friend from Kentucky, is not over vanishes at once. Now, this is a question of drawn; it is true to the life; and it belongs on probabilities, and admits of no certain solution. ly to eloquence like his to give to the picture All we can do is, to weigh the probabilities, its true expression, and its true colors. I do pro and con, and strike the balance as well The probabilities, pro and con, not deny, I repeat, the dis'ress of the south; as we can. but I deny that the revenue is the cause, and have been stated in this debate, and need now be re-stated. If the foreigner challenge them to the proof. Here we are all not equally competent judges; that is, all have had now the supply and control of our mar equally the means of judging. Show the con- ket, as he would have, had we no tariff, to nexion between the revenue as the cause, and me it appears probable that these prices would your distress as the effect; show it as matter of be higher than they now are; to you the confact, and without the aid of the metaphysics of trary appears probable. At best, then, the 1 ask, then, are these that ignis fatuus of a science, called political thing is uncertain. economy. For no ignis fatuus was ever a more gentlemen willing and prepared to break up treacherous guide. It has no certainty in it but this Union, because, it may be, that the low its uncertainty; almost every age has some new prices they now pay for their supplies would system of the science broached and bruited. If, have been still lower if we had had no tariff? to take the older system, its predecessor is laid to do that irreparable injury to their country? in the shelf or consigned to the tomb of the and to themselves as a part of the country? and to themselves more than to any other part? Capulets. I do not know how many of these systems The gentlemen of the south seem to think have successively appeared-each has had its there is wanting to them a fraternal feeling in day-and then has gone into the dust of obl. the north, that refuses to do them justice in This is not so. When has the A real science has not these mutations; this case. the geometry of Euclid is still the geometry of south appealed to the justice of this governthe world. But if this pseudo science were ment, in a just cause, and has made the appeal When have we refused to exempt from this uncertainty, it still would be in vain? Never. vion When have we an unsafe guide. For it is not predicated upon do justice to the virtues of the south, public the actual existing state of the world, but sup-and private? To their liberal sentiments, their poses a state of things that does not exist- chivalrous spirit, their patriotic merits, to their and cannot-and this is especially true of the ardent genius, and its brilliant demonstrations? free trade system. That supposes the system Never. Is not their pride in the fame of their to be adopted by all nations, and then that all great men our pride too? would find their account in it. Even then this withheld from that fame the need of praise? result would not take place: for, to take place, When have we stinted that praise, or given it all nations must be equal in knowledge, and grudgingly? Never. Why, then, if they ask, skill, and capital, and political institutions, why do we not reduce the revenue in order to when they start in the race. The metaphysics relieve their distress? It is because we do not of this pseurio science-why, the legerdemain believe it to be the cause of that distress, or of necromancy will not show you more surpris hat it contributes to that distress in any deing feats. They will show you, for instance, [gree; and because we believe that, if we yield ed to their wishes, they would find that dis-loans, and occurred as far back as 1822, during tress aggravated by it, instead of being re-the presidency of Mr. Cheves. The Branch Bank lieved. To yield to their wishes would be at Lexington, had received a large amount of the death to us, and to them it would do no possi- notes of the Bank of Kentucky, a portion of them ble good. The south, we even believe, be-as Government deposites. These notes were conside their common interest, common with their silerably depreciated. The branch having decountry, have a peculiar interest in this policy. clined issuing any of its own notes, in obedience Are their immense resources, now dormant, to orders of the mother bank, an individual apforever to remain dormant? Are they never to plied for a loan of these depreciated bank notes, be developed? I mean their resources in pow-alleging that he wanted them to pay a debt, er, by water and by steam, so abundant as it and that they would answer his purpose as well is, (in New Eugland it is not so abundant,) and as any other bills. The loan was granted. The in the abundance of the raw material for manu- Bank of Kentucky was, at the time, regularly facture within themselves? These can only be paying to the branch, interest on these notes, developed by this policy. If that be continued, and finally redeemed all that remained, a few its march will be onward; it will in time fill months after the loan in question. It thus aptheir high lands with thriving villages, and co- pears, that these bills were as good as cash to ver them with a thriving population. Their the bank, and the borrower alleged that they streams will not be idle; they will carry mills, were of equal value to him. It is difficult to and feed canals; the rich products of their soil conceive any solid ground for considering this a and industry will be water-borne from place case of usury. It would be as reasonable to to place; and this reprobated policy "will say, that it would have been usury, for the scatter plenty o'er their smiling land." Capi. Bank of Kentucky itself, to make a loan of its tal and enterprise will find their way there; own depreciated notes. The utmost fairness and if they have not there the population fitted was exhibited by the branch bank, in this transfor the labor, population will flock there that action; the loan was made with reluctance after is fitted. This will give to their slave and field repeated applications, and yet the directors of labor a new value, and to them a new source the mother bank, many years afterwards, and of security. since Mr. Biddle has been at the head of the in. I have done. In pleading the cause of this stitution, refunded to the borrower of the Kenpolicy, I have the most intimate convictions tucky notes, the full amount of the difference that I have been pleading the cause of our between their nominal and their real value, at country, of our whole country, and of every the time of the loan, with interest. This has part of our country, of every man, woman, and been also done in another similar case; so that, child, in our country: not as its importance re.n the only two cases which have been brought quired, no, by no means, but as my feeble to the view of the directors at Philadelphia, powers permitted. To our natural parents we for the purpose of having the amount of the owe all the pious offices of life, but to another depreciation refunded, the application has been parent, our country, we owe more we owe granted with a promptness and liberality highly life itself, when her good requires its devotion. creditable to the institution. Were this effort, poor as it is, the effort of my The minority of the committee will barely expiring life-expiring by the effort-in that remark, upon these transactions, that being free final moment, and last struggle, I should be from all imputation of intentional usury, and nehappy in the feeling and belief that I was ex-ver having been sanctioned by the directors of piring in my country's cause. UNITED STATES BANK. the mother bank, but, on the contrary, corrected, they cannot furnish the slightest ground for alleging that the charter has been violated. The second ground of imputation, noticed by the majority of the committee, is, "the issuing of branch orders as circulation." On this point, the minority deem it sufficient Mr. McDUFFIE, from the Select Committee ap- to remark, that a branch order is nothing more pointed to examine the books and proceed-nor less than a draft or bill of exchange drawn ings of the Bank of the United States, sub-by a branch upon the mother bank; and that mitted the following as the views of the mi- the charter expressly authorizes, as one of the nority of the said committee. primary uperations of the bank, the buying and The minority of the committee, appointed to selling of bills of exchange. If the bank has a examine the books and proceedings of the right to issue these drafts at all, it cannot, sureBank of the United States, dissenting from the ly, be made a ground of just complaint against report of the majority, beg leave to present it, that they are used as circulation. That is the grounds of their dissent, for the considera exclusively the affair of the community. The bank cannot be justly made responsible for the The majority of the committee have submit- use which the public may choose to make of ted, without expressing any decided opinion on these drafts. It is the high credit of the bank them, six cases which they allege to have be-that gives the character of circulation to this come subjects of imputation against the bank, paper; and it is the voluntary act of the comtouching the violation of its charter. munity receiving it as such. tion of the House. The first of these cases relates to usurious In fact, there is no part of the bank circulation which has been so beneficial to the public. It has, vernment stocks, except under the express au in practice, furnished the southern and western thority of Congress, and by an express stipula States with the means of affecting their extion with the Treasury Department. And after changes with the north, without any expense it has obtained a large amount of Government whatever. stocks in this mode, it is difficult to conceive It may be well doubted, however, whether how it could raise the price of these stocks by an extensive and permanent issue of these coming into the market as a seller, or how it drafts might not prove very inconvenient to the could promote the purposes of a stock-jobbing bank itself, in a certain state of the domestic speculation, by depressing the price, the only ef exchanges, and it would be, therefore, a judi- fect which could result from offering them for cious measure, to supersede the necessity in sale. When these stocks were sold in 1825, there which these drafts originated, by authorizing was an extraordinary pressure upon the money other officers than the president and cashier of market of the whole commercial world. They the mother bank, to sign notes for circulation. constituted the very resource which the bank The third ground of imputation, as relates to most required in such an emergency; and it the violation of the charter, is, "the selling of is now matter of history, that it was partly by coin, particularly American coin." the wise, judicious, and timely use of this re The minority would respectfully suggest, source, that the Bank of the United States that the majority have entirely overlooked the averted from this country the calamity of a ge nature and essential purposes of the bank. It neral failure of the banks, and a widely extendmay be well defined to be "an institution es-ed scene of commercial bankruptcy. tablished for the purpose of dealing in mo- The majority of the committee seem to reney." Now money is a current coin; yet, a gard it as a matter of complaint, that the Gocommittee of Congress very gravely bring it vernment permitted the bank to subscribe for forward as a charge, touching the violation of these stocks, in preference to individuals. If its charter, too, that it has been guilty of deal-this is, indeed, a just cause of complaint, it ing in current coins, and, particularly, Ameri- should be made against the Government, and can coins, the very end for which it was creat not against the bank. When Congress express. ed. ly authorizes the Secretary of the Treasury to As relates to dealing in current coin, the obtain a loan from the bank, and the Secretaright to do so is involved in the right of lending|ry stipulates the terms of that loan, it is impos. money and of receiving it back. The autho-sible to conceive how any blame can be imrity to deal in bullion is expressly granted in puted to the bank, if it faithfully performs its the charter, because bullion is not current engagements. coin, and, of course, the right to deal in it is not necessarily involved in the right of carrying on banking operations. 1 The fourth ground of imputation is "the sale of sock, obtained from Government, under special acts of Congress." The fifth ground of imputation presented in the report of the majority is, "making donations for roads, canals, and other obj. cts." In two instances, the directors subscribed small sums to certain internal improvements in the vicinity of the real estate of the bank. This This charge is, if possible, more extraordi. they did in the exercise of their proprietary nary than the last. If the acts of Congress, right, and with a view to the improvement of which expressly authorized the bank to sub-the value of their property. For this exercise scribe for Government stock, had any meaning of power, they are responsible to the stockat all, they certainly meant to authorize the holders alone; and the question is, whether they bank to acquire the right of property in the have or have not made a proper application of stock for which it was authorized to subscribe. the funds of the corporation, with a view to the The right to sell this stock at pleasure, is of the promotion of its interests? To what extent the very essence of the right of property, and is as value of the real estate of the bank has been clearly conveyed to the corporation by the act increased, by the internal improvements in authorizing a subscription, as the right to re- question, has not been ascertained; but it may ceive the interest. be well supposed that it exceeds the sum The right to sell, therefore, is indisputable. appropriated by the directors to aid in the But the majority of the committee seem to sup-construction of these improvements. The other "donations" to which the report pose that the policy which forbids the bank to speculate in stocks, with its immense resources, refers, consist of small sums contributed to fire by which the price might be 'raised and de-insurance companies, for the safety of the bank pressed at pleasure,' equally forbade the bank property, and against which it is not pretended to sell the stock for which it had subscribed by that any objection can be fairly raised. the express authority of the Government. Now The last ground of imputation, as touching it is apparent, that the evil of dealing in stocks, the violation of the charter, is, "building houses by such an institution,can only exist in cases of to rent or sell, and erecting other structures in buying and selling stocks at the pleasure of the aid of that object." bank. To raise and depress prices, the bank The bank is expressly authorized to purmust have the right, both to buy and to sell al-chase real estate, which has been mortgaged to ternately, as may suit its purposes of specula. secure debts previously contracted, and also tion. But it has never pretended to claim, such as may be sold under judgments and ex much less to exercise, the right of buying Co.ecutions in its own favor. In the exercise of this right, the debtors of the bank are as much was $25,750, after deducting ten per cent. for interested as the bank itself. For it must be bad debts, and defraying all the expenses of apparent, that if the bank were not permitted their establishment. Upon the whole, it to bid at these sales, the property of its debtors appeared that this was one of the most profitwould be frequently sacrificed, at a sum able, as it is certainly the largest commercial greatly below its value. It has been only for newspaper in the Union, with an immense the purpose of saving itself from loss, and the advertising patronage, and a large and rapidly property of its debtors from being thus sacri-increasing subscription list. ficed, that the bank has ever purchased any With these exhibits, Mr. Webb produced real estate, except what has been necessary for the letter of Mr. Walter Bowne, Mayor of the its banking houses. There is no description of city of New York, and formerly a director of property which a banking institution is so un- the Bank of the United States, a man of wealth willing to own as real estate. Such an insti and high character, enclosing the application tution is entirely unsuited to the management for the loan, and stating that "he did so with of such property, as much so as a farmer would pleasure, and saw no reason against this being be to manage the discounts of a bank. treated as a fair business transaction." Several Owing to the extensive failures of the per- of the directors, as well as the president of the sons indebted to the bank, in the western bank, were examined on oath, in relation to country, prior to 1819, the directors were un- this transaction, and as the clearest mode of avoidably compelled to take a very large exhibiting its true character to the House, exquantity of real estate, as the only means of tracts from these examinations will be given. avoiding still greater losses than they have actually sustained. They have disposed of this estate as rapidly as they could, consistently Ques.-"Did you consider the loans made to with the interests of the institution. On a por James Watson Webb & Co. fair business transtion of it they have erected improvements, to actions, such as you could not refuse without prepare it for sale, and by means of which they subjecting the bank to the imputation of in. will save the stockholders from a great portion dulging political partiality? State fully the of the loss which would have otherwise oc- views and considerations on which you voted in curred, and will recover a large amount of favor of those loans." The following is the testimony of Mr. Biddle, relative to these loans. the debts which were some years ago set down Ans. "I certainly considered them as fair as desperate. If, for this course of conduct, business transactions, or I should not have con the directors are rendered obnoxious to censented to them. At the request of the Comsure, then will they be condemned for the mittee I will explain the reasons of that opinion. very faithfulness of their stewardship. It is too "If in making loans every transaction was obvious to require, or to justify the use of perfectly safe, and every borrower perfectly argument, that the right of the bank to im good, banking would be an easy office; but as prove its real estate, is inseparably connected men generally borrow to employ the funds, in with the right to purchase-to hold, or to own some profitable pursuit, subject, of course, to it. On this subject, the House is referred to vicissitudes, all that can be expected in making the exposition of the President, marked A.-loans is a fair and reasonable caution as to the The next subject to which the report of the situation and prospects of the borrower. Trimajority adverts, is the loan to James Watson ed by these, the only tests, I think the loans in Webb and Co. It is proper to remark, in the question are unexceptionable. The first was first place, that the only sums ever loaned to done by a board of directors, consisting, bethis copartnership, were the sums of twenty, sides the presiding officer, of six gentlemen, and of fifteen thousand dollars, the former in Mr. Lippincott, Mr. Fisher, Mr. Bohlen, Mr. August and the latter in December, 1831. It Neff, Mr. Platt, and Mr. Willing, inerchants is also proper to remark, that the first sum was and men of business, with no partialities toreduced to $18,000, at the maturity of the note wards the applicants, with whom none of them given for it; and that the latter sum was entirely had the least acquaintance. The grounds of paid off in March last, by Mr. Webb; and, as their judgment may be thus stated. In making he expressly states on oath, without being re- ordinary loans, the board judge by the general quested by the bank to do so. The whole standing of parties without any examination of amount of the accommodations ever obtained their affairs. But in this case the parties befrom the bank, by Messrs. Webb and Noah, gan by an exposition of their whole situation. was $35,000; and the whole amount now due This was forwarded by Walter Bowne, Esq. by them, is $18,000. the Mayor of the City of New York, where the The grounds and securities upon which these applicants resided, who,in addition to his being accommodations were granted, will now be personally known and respected by all the stated. Mr. Webb produced to the directors members, had been one of the oldest directors a full statement of the affairs of 'he copartner- of the Bank of the United States, and for many ship, setting forth the value of their property, years sat at the board around which the direc and the annual income derived from their tors were hen assembled. In this letter he paper. From this statement, which was authen- says, "I cheerfully forward the papers' and I ticated by the oath of their book-keepers', it see no reason against this application being appeared that the nett annual income of the treated as a fair business transaction." He does paper, from advertisements and subscriptions, not expressly say it ought to be granted, be |