of the board with the fullest confidence; nor norl Mr. Biddle will proceed across the country I am, with great respect, Sir, need it be very surprising, that, while hun- from Albany J. MASON, Esq. T. CADWALLADER, Pres't Off. B. U. S. Portsmouth, N. H. TREASURY DEPARTMENT, If, however, it can be shown that, in any quarter, the officers of the bank have lent August 5, 1829. themselves as ministers of a party, or have used| SIR: I duly received your favor of the 27th the power of the corporation to political pur- ultimo, and have this day received that of the poses, not a moment will be lost in visiting 4th instant, on the same subject, written, as you such offences with the utmost severity of cen- inform me, under the special instructions of the sure and punishment. board of directors. In reply, I have to observe With regard to the Portsmouth business, it that, perceiving nothing in the emphatic repewas immediately put into a train of investiga-tition of the sentiments contained in Mr. Bidtion, and the presiding officer of the bank, as dle's letter of the 18th of July, or in what you you have been apprised, is to proceed thither have urged in their support, to change in any on that duty. degree the views heretofore presented, I find no In the mean time, you will, it is hoped, upon occasion to add to what has been said in my letreflection, be disposed to admit that the indivi- ters of the 11th and 23d of July, except to redual whose conduct is in question, may fairly mark, that, when called upon to discharge a claim from the directors of this bank, by whom high public duty, I cannot allow myself to esti❤ he was invited into its service, on account sole- mate the extent of the obligation by any suply of business qualifications of the highest or- posed ungraciousness of the topics with which der, without remotest reference to his political it may be connected. sentiments, and who have in their possession striking evidence of the intelligence, impartiality, zeal, and fidelity, with which he appears to have administered the interests of the institution, probably at some sacrifice of his own, the common privilege of every man accusedthat of being deemed innocent until he has been proved guilty. I have the honor to be, Your obedient servant, Hon. SAML. D. INGHAM, Secretary of the Treasury. I am, Sir, very respectfully, S. D. INGHAM. T. CADWALLADER, Esq. BANK OF THE U. STATES, September 15, 1829. SIR: On my return, a few days since, after a long absence, I found your favors of the 23d of of July and 5th ult. These have been already acknowledged, and, as far as was then deemed necessary, answered by General Cadwallader; but the views which they present of the relations between the bank and the treasury, are so P.S. In a letter just received from Mr. Ma- new and important, and it is so essential to the son, who has learned, from sources exterior to public service to understand distinctly their rethe bank, that a memorial and numerous letters spective rights and duties, that it is deemed have been addressed to the directors, com proper to resume the subject without delay. plaining of his official conduct, he invites im- Such is the purpose of this communication, in mediate inquiry, and requests to be informed of which I shall endeavor to collect from your the facts stated, and by whom, that he may be whole correspondence with the bank the points enabled to repel them. The board will, of on which we have the misfortune to differ, and course, proceed to investigate the subject as then attempt to compare, and, perhaps, reconsoon as possible; and should the allegations a-cile, our opinions. gainst him appear to be well founded, to apply at once, as you have been already assured an appropriate corrective. The earliest operation of the Treasury, since you were charged with it, in which the bank had any share, was the reimbursement of the public debt on the 1st of July last. This was your first essa in the department, the first important measure of the new administration; and, SIR: Your letter of the 31st ult. has been if it had occasioned any inconvenience, or any read at the board, and referred to the Commit-pressure, these would certainly have been made tee on the Offices. BANK OF THE U. STATES, the cause or the pretext of great reproach The president of the bank is now on his way against yourself and your political associates; to Buffalo, in the State of New York. On his and undoubtedly much inconvenience and much return he is to visit Portsmouth, when you will pressure would have been felt if the bank had receive from him every explanation in regard not labored to avert them, with a promptness, a to the matter adverted to in the latter part of cordiality, and an efficacy, rare even in its own your letter. active history. Before determining on the measure, you did the board the honor to consui the opinion, that there were certain other duthem, and certainly if they had listened to co nes to the Government which it was your spesiderations merely pecuniary, they would have cial function to superintend. Accordingly, on discouraged it; if they had desired to shun the the 11th of June last, you addressed to the bank responsibility of an opera ion, of which the re-a letter covering one from Mr. Woodbury, result might be doubtful, they would have beequesting your interference to cause the removal silent; and, if it had been possible for them to of Mr. Mason, the president of the branch at fel any reluctance to aid the new administra Portsmouth. The complaint first in order, and tion, i would have been sufficient merely, and obviously first in importance, was that Mr. Mairreproachably, to have done their duty. But son was a particular friend of Mr. Webster, and regarding only what they considered the enlarg that his political character was doubtless well ed interest of the country, and too conscious of known to you, whence you were led to infer their own independ nce to tear that their zeal that he had perverted his trust to political purin the public service should be mistaken for a poses. Your 1 tter was immediately followed devotion to the public servants, they at once by the communication of one subscribed, “Isaac assumed all the responsibility within their pro- Hill, Second Comptroller of the Treasury," per sphere, of encouraging the operation, and transmitting two memorials, One of them was from the commencement to the termination, said to be from "most of the business men and watched and guarded its progress with an un-merchants of Portsmouth, without distinction wearied attention which the most zealous friend of party;" the other he described as coming of the administration could not have surpassed. from "about sixty of the most respectable To these efforts you have yourself bone the members of the New Hampshire Legislature," amplest testimony. Thus, in your letter of the requesting Mr. Mason's removal, and, more6th of June, you have the goodness to say, "I over, nominating a new board of directors. To am fully sensible of the disposition of the bank these, the Second Comptroller adds his own to afford all practicable facility to the fiscal opinion, that "no measure short of Mr. Mason's operations of the Government, and the offers removal will tend to reconcile the people of contained in your letters with that view are New Hampshire to the bank," and that this duly appreciated. As you have expressed the measure is asked for by individuals whom he willingness of the bank to make the funds of caracterizes as "the friends of General Jack the Treasury immediately available at the vari-son in New Hampshire." In answer to your ous points where they may be required for the letter, you were apprised that the complains of approaching payment of the debt, the drafts Mr. Woodbury would be duly examined, and for effecting the transfers for that object will that the bank had uniformly, and, it was believ be made to suit the convenience of the bank as ed, successfully, endeavored to prevent the far as the demands of other branches of the ser abuse of its power to party purposes vice will permit." On the 19th of June you ply of the 23d of July treats this exemption write: "I cannot conclude this communication from politica. bias, as a moral impossibility: without expressing the satisfaction of the de- and, in allusion to a suggestion that the bank partment at the arrangements which the bank was disinclined to the interference of the Gohas made for effecting these payments in a man vernment in these matters, you declare that ner so accommodating to the Treasury, and so it is not deemed transcending the just obligalittle embarrassing to the community." An, tion of the department to which is assigned the again, on the 11th of July: "I take the occa-direction of the relations between the Govern Your re to express the great satisfaction of the ment and the bank, to suggest its views as to Treasury Department at the manner in which their proper management You speak of the the president and directors of the parent bank "action of the Government on the bank, and have discharged their trusts in all their imme-that of the bank on those within the sphere of diate relations to the Government, so far as its influence," and finally, you remove the imtheir transactions have come under my notice, pression that these were only your private senand especially in the facilities afforded in trans-timents of which the friendly purpose might ferring the funds of the Government, and in the justify the communication, by stating that your preparation for the heavy payment of the public first letter contained "such an avowal of the debt on the 1st inst., which has been effected views of the administration, as could not fairly by means of the prudeut arrangements of your be misunderstood." board, at a time of severe depression on all the productive employments of the country, with out causing any sensible addition to the pressure, or even visible effect upon the ordinary operations of the State banks." On recurring to these views, which now assumed additional importance, they exhibited very strong and very satisfactory declarations of the unwillingness of the administration to de rive political aid from the bank, and very jadiI recall these voluntary testimonials to your cious remarks on the principies of credit which remembrance, because they show that, in all its should regulate its loans But the mode of selegitimate relations to the Government, the curing these objects, though recommended bank as completely filled the measure of its with the best mouves, seemed ili adapted to duty to the country, and that towards yourself sustain thein. It was, that it was the "very and your political colleagues, there existed the high obligation of the back to introduce into most friendly disposition on the part of the bank. the arran ment of its officers, such checks and Unfortunately, however, you seemed to adopt counterbalances as may be necessary to main tain a just equilibrium in its movements;" and knowledge not the slightest responsibility of that, when complaints are made of abuses for any description whatsoever to the Secretary of party purposes, "as it is difficult to ascertain the Treasury touching the political opinions the fact, or to scan the motive, perhaps the on- and conduct of their officers, that being a subly safe guide to test the justice of such com-ject on which they never consult, and never deplaints, is the public opinion of the vicinity from sire to know, the views of any administration. which they emanate." Without discussing here It is with much reluctance the board of directhe general merit of such a plan, I will only say tors feel themselves constrained to make this that there is scarcely conceivable a more strik-declaration. But, charged as they are by Coning example of its extreme danger, and of the gress with duties of great importance to the abuse to which it may be perverted, than this country, which they can hope to execute only very case of Mr. Mason. On the eve of an elec- while they are exempted from all influences not tion for an officer of this bank in New Hamp-authorized by the laws, they deem it most beshire, the Senator from New Hampshire, the coming to themselves, as well as to the ExecuSecond Comptroller froin New Hampshire, the tive, to state with perfect frankness their opiLegislature of New Hampshire, the merchants nion of any interference in the concerns of the of all parties in New Hampshire, were all array institution confided to their care. In the same ed to complain of his abuses, and to show how spirit, I will endeavor to explain the reasons of loudly public opinion demanded his removal, that opinion, which are, that the interposition of just at the moment when the administration had the Secretary seems to want the sanction of any declared to the bank that public opinion was the law, or usage, or especial fitness. Of these in only safe test of such accusations. their turns Happily the board of directors are but little 1st. As to his authority. The bank is cresensible to influences of that description. In- ated by an act of Congress: to that act alone stead of yielding to these complaints, thev ex- can it look for all its powers and responsibili amined them, and, after a calm and thorough in-ties; and all pretensions to exercise an influvestigation, they found that all these accusa-ence over its movements, not found in that tions were entirely groundless; that the most act of Congress, must be wholly illegitimate. zealous of his enemies did not venture to assert Now, so far from giving any authority over that he had ever, on any occasion, been influ- the bank to the Secretary of the Treasury, the enced by political feelings, and that this public fact is, that the whole structure of the instituopinion, so imposing in the mist of distance, de- tion was cautiously adapted to exclude that vegenerated into the personal hostility of a very ry influence. Congress felt that the greatest limited, and, for the most part, very prejudiced danger of the bank, that which has destroyed circle. Mr. Mason was, therefore, immediately every similar institution weak enough to subre-elected. mit to it, was the influence of the Executive Having now disposed of the case which gave officers. They knew that a time might come rise to this correspondence, it remains to under- when these officers would be raised into power stand the views which, in the course of it, by the spirit of party; that the spirit of party have been presented by the Secretary of the would retain or remove them; and that they Treasury. would feel such an anxiety to maintain the asAfter a deliberate, and we hope a very dis- cendancy of the party to which they owed their passionate consideration of all these circum-elevation, as to render their control or their stances, the board of directors think it evident influence hazardous to the bank. Accordingthat the Secretary of the Treasury believes-ly, the greatest division of sentiment in Con1st. That the "relations between the Go-gress was on the point whether the Executive vernment and the bank" confer some supervi- should have the power of nominating any dision of the choice of the officers of the bank, to rectors at all. In the House of Representathe "proper management" of which his inter- tives, the most animated efforts were made to pretation is authorized; prevent it, and, on a motion to that effect, the 2d. That there is some "action of the Go-votes were 91 to 54. In the Senate a similar vernment on the bank" not precisely explain-motion failed, by a vote of 21 to 14. ed, but in which he is the proper agent; and, But the provision inserted in the original finally, plan of the bank, giving the appointment of 3d. That it is his right and his duty to sug-the presidents of the branches to the Execugest the views of the administration as to the tive, was entirely rejected. So, too, the propolitical opinions and conduct of the officers of vision that the president of the bank should be the bank. chosen from among the Government directors, Presuming that we have rightly apprehended was expunged by a vote of nearly two to one. your views, and fearful that the silence of the And, again, in the choice of these directors, bank might be hereafter misconstrued into an the Executive was limited, by an amendment, acquiescence in them, I deem it my duty to to the appointment of not more than three from state to you in a manner perfectly respectful to any one State. These whole proceedings inyour official and personal character, yet so clear dicate the dread of the influence of the Exe as to leave no possibility of misconception, that cutive over the bank; but the most sensitive the Board of Directors of the Bank of the Unit- jealousy of Congress seems never to have antited States, and the boards of directors of the cipated, and, therefore, never to have forbidbranches of the Bank of the United States, ac-den, that, in addition to the influence of the five Government directors, the bank should ever receive a formal and official declaration of the views of the Executive officers in regard to the political opinions and couduct of the agent of the bank. know, ever asked any office or any favor from the Government. Experience has accordingly ratified the judgment of Congress that a body thus constituted, composed of members of all political parties, standing between them all, Accordingly, the act of Congress simply de- yet connected with none of them, having noclares, "that, for the management of the affairs thing to ask, nor to hope, nor to fear, from of the said corporation, there shall be twenty-the Executive, furnishes a much greater sefive directors." When these are chosen, the curity for an independent administration, than whole administration of the bank is committed the officers of the Government could possibly to their exclusive care. Their responsibility offer. for the management of it is to Congress, and to These officers, too, are the more unsafe Congress alone but no Executive officer of counsellors; because, such is the delusion of the Government, from the President of the the spirit of party, they often advise very hoUnited States downwards, has the slightest au-nestly with an entire unconsciousness of their thority to interfere in it; and there can be no own motives. Of this it is difficult to imagine more warrant for suggesting the views of the a stronger illustration than the present occaadministration to the Bank of the United States sion. You give it as your deliberate opinion, than to the Supreme Court of the U. States. that such is the power of party feelings, that it In the absence of any specific authority, is morally impossible for any five hundred Amethere might be some established usage to jus- rican citizens, carefully selected in small retify this interposition. But, from the founda- sponsible bodies, and the greater part of whom tion of the Government, no such claim has ever have sworn, as I have, to execute their duty before been asserted. Your predecessors, Mr. faithfully, not to betray their trusts, by grant-Morris, General Hamilton, Mr. Wolcott, Mr. ing or refusing loans from political hostility or Gallatin, Mr. Campbell, Mr. Dallas, Mr. Craw- partility. Now, I must be permitted to reford, and Mr. Rush, were gentlemen of ac-mark, that this judgment seems to be exceedknowledged intelligence and fidelity to their ingly severe. I should, indeed, dispair of the duties. Yet, neither during the existence of country, if I did not think that these free and the first Bank of the United States, even when manly institutions of ours had reared up, not there were no Government directors, nor since five hundred, but five hundred thousand men the existence of the present bank, nor in the too proud to surrender their honor, or desert interval between them, does it seem ever to their duty, to promote the cause of any party; have occurred to them that it formed any part and that whenever the people or the people's of those duties to inquire into the political opi- leaders were misled into excesses, they would nions and conduct of the officers of the banks both be rebuked back to their duty by the in which the public funds were deposited. On temperate firmness of these independent citi. the contrary, when that distinguished states-zens. But they, who assert the irresistible man, Mr. Crawford, was consulted by the power of the spirit of party, might reflect that bank, in 1819, on a subject entirely financial, this spirit becomes more intense by concentrahe accompanied his answer with this declaration in those who receive mest and expect most tion: "I wish to have no other influence up-from its influence. And yet, while it is conon the decision which the board of directors is sidered morally impossible for the directors of called upon to make, than the views which I the bank not to pervert their authority to par have presented are calculated to produce. The ty purposes, the officers of the General and first duty of the board is to the stockholders, State Governments invoke the interposition of the second to the nation." If neither authority the bank against a person guilty of friendship nor custom sanctions it, there seemsto a political antagonist, without the least sus3d. No peculiar fitness in the Secretary for picion that it may be morally impossible for the suggestion of such views. Undoubtedly it them also not to share in the general infirmity. was the aim of Congress to exclude the opera- For their agency, moreover, on the present oction of party, and the influence of the Execu-casion, there was no necessity. All these retive. For this purpose, they committed the presentations from New Hampshire might have care of the bank to twenty-five gentlemen, come, and, doubtless, would have come dichosen partly by the President and Senate, and rectly to the bank, but for the design of propartly by the stockholders; trusting to this ducing an "action of the Government on the variety in the composition of the body, and to bank" through the instrumentality of the Treathe natural confidence which an American Con-sury. That instrumentality might be perfectgress would feel in the uprightness of Ameri-ly harmless, and it was doubtless well intendcan citizens, that they would not abuse their ed; but the danger is, that they, who listen to trusts. In this, I must be allowed to say, they the advice of others, may soon be made to folhave succeeded. They have obtained the ser-low it. In the vocabulary of power, to sug. vices of a body of gentlemen, of whose gene-gest, to advise, to influence, and to control,are ral intelligence and independence it is unne- too often synonimous; and the descent is short oessary to speak; but who are so entirely aloof and treacherous from being the instrument of from all connection with politics, that, from its party, to being its victim. establishment to the present hour, no director It accords with the unreserved freedom o of the bank has ever received, nor, as far as I this communication to add a few words in re gard to the course of policy recommended by who are charged with duties connected with it. the administration. I will not permit myself But, in its ordinary condition, the public opifor a moment to doubt that this course has been nion, which every party claims, and which almaturely considered by them as useful and pro. most every party can make for the moment; per, alike for the bank and the country: and the public opinion whose sudden impulses it is yet, I think they will perceive that in practice the whole purpose of our institutions, judges, it would prove ruinous to the institution. The juries, and legislatures, to rectify and moderate; success of the bank, and the prosperity of the this public opinion, in its crude state, is the country, so far as they are connected, depend most dangerous of all guides. The bank canmainly on the capacity and fidelity of its offi-not obey it. The bank is strong enough to excers, who are necessarily the depositories of an ercise the noblest prerogative of strength, not almost unlimited confidence, but, from the mo to be afraid of being just to its officers; and, ment they are to be chosen for any reason but content that they perform their duty, it will their fitness from the moment that the officers not pursue them into private life with inquisiof the General or the State Governments are tions into their friendships, nor will it ever saallowed to interfere in the selection-all com-crifice them either to appease any clamor, or to mand over its own materials, and all responsi-propitiate any authority. bility for its measures, depart from the institu- It is, I hope, almost superfluous to add, that, tion. To choose these officers according to while the board of directors deemed it their any system of political "checks and counter-duty to express their dissent from your views balances," would oblige the bank to consult the in regard to the administration of the back, the wishes of the party which chanced to predomi difference is wholly unaccompanied with any nate for the moment in the public councils, and feeling of un riendliness towards yourself or to change them with every change of political the admini tration. To both, in the sphere of administration in the General or State Govern-duty allotted to it, the bank has given the most cordial support; to both it will, her after, give Now, the very avowal of a principle of po- a co-operation equally zealous in all its approlitical division amongst the officers, would re-priate duties. quire a constant subserviency to the pretensions of the numerous parties who divide the country, and these checks and counterbalances themselves Hon. S. D. INGHAM, Secy Treasury. ments. would need perpetual re-adjustment; tillat length the very effort to please, would end, as it ought to end, in universal discontent. For the bank, which has specific duties to perform, and which belongs to the country and not to any party, there is but one course of honor or of safety. When ever its duties come in conflict with the spirit of party, it should not compromise with it, nor capitulate to it, but resist it-resist it openly and fearlessly. In this, its interests concurs with its duty, for it will be found at last, such is the good sense of the country, that the best mode of satisfying all parties is, to disgregard them all. I have the honor to be, &c. N. BIDDLE, President. Intending to review the contents of your communication with the "unreserved freedom” by which it is happily caracterized, I must Nor could the board of directors adopt th congratulate you and your associates, as well as remedy proposed by the administration, that, myself, that, whatever differences exist bewhen an officer of the bank is accused of bus-tween us, they are yet on points purely specu-, ing his trust to the purposes of party, as "it lative; that the alleged practical a use of sais difficult to ascertain the fact or to scan the tion, towards which my first letter invited the. motive, perhaps the only safe guide to test inquiries of the board, has been scrutinized by the justice of such complaints is the public op:- the president of the bank in person, doubtless nion of the vicinity from which they emanate." with impar iality and candor; and that "the It would seem more natural that, in all cases of public opinion" especting Mr. Mason, which accusation, the difficulty of ascertaining the was so imposing at a distance," in your prefact, should make us slow to believe, and doubsence degenerated into the personal hostility ly vigilant to discover it. The difficulty or of a very limited, and, for the most par, very scanning motives should teach us how easily prejudiced circle." I cannot but be gratified they may be misconstrued. But fact, and mo to hear that the directors instituted "a calm and tive, and character, and conduct, would all be prejudged in deference to public opinion, which is itself more ignorant both of facts and motives than the board of directors themselves who are to submit to it. This is too summary, and too dangerous; for this public opinion, which is to supercede all inquiry, to be respected must be respectable. Even in its best state, it is like a thing rather to consult than to obey, by those thorough investigation:" thus com lying wh the only wish entertained or expressed by ne on the subject; and, as it is said, this examination has proved "that the accusations were entirely groundless," an habitual reliance upon the fairness and justice of my fellow citizens, inspires the hope that their framers will contendedly acquiesce in the re-election of a vindicated officer. If such results alone are to |