[ocr errors]


[ocr errors]
[ocr errors]
[ocr errors]

three first, (woollens, cottuns, and iron,) all in the Treasury plan with respect to cottons. Asspeak for themselves. With regard to lhese, suming then the saving to be as above stated I will show how I arrive at the conclusion that $260,000, we have as a set off against this reducthe bill before us proposes to increase the du- tion, the diminished credits equal to near three ties upon them.

per cent., and in the chunge in the pound sterling I will begin with woollens. On this article equal to eight per cent.; making, together, Mr. McLane proposed to take off duties to the leven per cent. on the amount of the duly. This amount of $1,220,670. The whole quantity of according to my calculation, will exceed the woollens is estimated at $5,857,225, the duties estimated saving by $111,661. at $2,626,261, being an average rate of duty of Inox AND THE MANUFACTURES of inox al 48 per cent. Now Mr. McLane proposed to STEEL, consist of too great a variety of articles effect this reduction of $1,220,670, as follows: to enable me to do more than to submit a mere

On all woollens under 50 cents. 10 per cent. general statement in relation to them. ad valorem.

of these articles, which I shall consider or On worsted stuff goods, &c. 20 per cent. ad der one head, the Treasury valuation is 85,688,valorem.

736, duties $2,033,682; estimated saving $309, the On all other manufactures of wool 30 per 088. Against this sum is to be put the dimin.

HOP cent. ad valorem.

ished credits, and the pound sterling, equal to Now what is proposed in this bill?

about $200,000-to which is to be added an e On plains, kerseys and kendal cottons, normous increase of duties on a great variety of (weighing 16 oz.) and under 35 cents the articles of hardware, under the provisse in the square yard, 5 per cent.

10th, 12th, and 13th members of the 2d sectica

due Worsted goods, &c. 10 per cent.

of the bill, which carry up the duties on all rem On all other manufactures of wool, (except nufactures of iron, as high as the raw material

Tr: a few coarse blankets,) 57 per cent.

thus changing ad valorem duties of from 25 to doc Here then, it will be seen at once, that on the 40 per cent. to specific duties, ranging from one

of great mass of woollens, the duties on which, and two hundred, up to three

, and even forur

ted under the existing law, average, according to hundred per cent." I have already given to the

Сол the Treasury statement, 48 per cent., and which Senate several examples of the effect of these

cals Mr. McLane put at thirty per cent., the duty is provisos. I will repeat one or two of them. increased to 57 per cent., being 27 beyond the On an invoice of trace chains the present du. duty proposed by Mr. McLane,and 9 per cent. ty on which, at 25 per cent

. amounted only to beyond the present duty. It is true, negro $69, the duty under this bill (at 3 cents per lbal

aer cloths, which Mr. McLane set down at 10 per will amount to $198. cent., are here put at 5 per cent., but Mr. MC

On a parcel of knitting needles now paying 1 Lane's plan embraced all woollens under 50 duty of $1 90, the

proposed duty will be 89. cents, whereas this bill is confined to “plains, On an invoice of bed screws costing $53, and kerseys, and kendal cottons, under 35 cents,” paying duties under the existing laws of only which, I am assured by those who profess, to $14, the duty under this bill will be $67. understand the subject, will not embrace one. These cases have been furnished from the third part of the or coarse woollens under 50 most unquestionable sources. cents.” If so, the entire reduction on these

A practical man intimately acquainted with negro cloths will not exceed $100,000.

the subject writes me, that "these provisos eil The saving on the worsted will, I am tolci, double the duty on hardware made of comma be counterbalanced by the enhanced duty on sized iron," and he estimates the amount of the some other descriptions of cloths, and on negro increased duty on hardware at upwards of fre and other course hats. Against these reduc- hundred thousand dollars. tions are to be charged 27 per cent increases But take it at half of that amount, and we 1 on the great mass of wollens, to which must be have an increase of the

duty on iron, and ma. added at least 5 per cent. for the cash duties, nufactures of iron, of 140,912 dollars. cent. for the change in the calcula

The account, then, according to my estimate, tion of the pound sterling from $4 44 to $4 80. would stand thus: If there be no error in my arithmetic, we

Increase of the duty on the protected articks will, on these data, have, instead of a reduc-under this billtion, an increase of the duties on woollens On woollens,

174,214 equal to at least $174,214. Any gentleman

On cottons, can make the calculation for himself. I am

On iron, as above, confirmed in my conclusion, by the fact that The increase on other articles canseveral persons who have made the calculation not be estimated at less than have, by a different process, arrived at the same Add for the change in the value result. By one calculation which I have be- of the pound sterling, and the shorte

the increase of the duty on woollans is ened credits on articles other than shown to be $250,000.

woollens, cottons, and iron, at least, 500,000 Os Cotton the calculation is much more sim. ple. According to the Treasury statement, the And we have an increase of value of cottons is estimated at $7,864,618; the It is vain and idle for gentlemen to tell duty, at $3,381,358; proposed saving at $260,- us, in general terms, that this bill is to reduce 288. 'Now, the bill before us makes

no alteration the duties four, five, eight, or ten millions. Let

tret cler


and 8




fore me,


them give us a bill of particulars; show us the duction as the basis of all my calculations, I items; point out the articles on which the reduc. have not noticed the repeal of the 10 and 20 tion is to take place, and let them explain how per cent in the valuation of foreign goods, it is to be effected. The Chairman of the these having been deducted in the Treasury es.

Committee of Ways and Means, in his exposi- timates. In making this comparison, I beg not FX tion of this subject, shows that the official to be understood as expressing any approba.

Treasury estimate of the reduction to be effect. tion of the Treasury scheme. That scheme

under this bill, as reported from the Com. proposed to make a reduction on the present mittee of Manufactures, was on woollens, cot- duties of between six and seven millions of dol. tons, iron, and the great mass of the protected lars, which, according to any fair estimate of articles only 844,000 dollars-and that the the present and future revenue of the country, whole amount of the proposed reduction was would have left a surplus in the Treasury be. only 4,177,000 dollars.

yond the wants of the country of from $6,000,Now, we all know, that a large amount of 1000 to 8,000,000. The proposed reduction this proposed reduction was stricken out in the was not only too small, but it was made in House. That distinguished gentleman has gi- much too great a proportion on the unprotected ven us statements showing that, in the shape in articles, and being expressly announced as a which the bill passed the House, the estimated final arrangement of the system, was altogether increase of the duties on the protected articles inadmissible. On iron the duties run up to was 1,406,000 dollars, while the estimated re. above 100 per cent.-on coarse cottons to a duction on the unprotected articles was 3,780,- still greater amount-and on every other arti000 dollars. If gentlemen will turn to the cle the duties were still higher. But bad as was Treasury statement, No. 125 of the Senate's the scheme of the Secretary of the Treasury, documents, they will find that the whole amount the bill from the House was much worse-and of saving on the articles proposed to be admit- this is infinitely the worst of all. ted duty free under the bill reported by the In conclusion, Mr. H. said, that to his mind Committee of Manufactures of this House was it was perfectly clear, that this bill, in its preonly$1,668,010. Add to this every free article sent shape, had not a single feature to recomsince added to the list, and the further reduc-mend it to the favor of any but the fast friends tion on silks and wines, and even the two or of the American system. It is neither more nor three hundred thousand dollars wbich gentle less than the resolution of the Senator from men say has been taken off of the protected ar. Kentucky reduced to the form of a law. It ticles, and what will they amount to? takes off the duties altogether from almost the

Thus, then, it will be seen that the whole entire mass of the unprotected articlesy such as amount of the reduction proposed by the Se- tea, coffee, spices, fruits, and a hundred other ar. cretary of the Treasury, on ihe protected arti- ticles of luxury, and reduces them to almost cles, has been stricken out, and that more than nothing on silks and wines, while it leaves the & million has been added to the existing duties protected articles almost untouched, or with adon those articles. But for all this, we are told ditional burdens thrown upon them. In this that we are to be remunerated by a still greater view of the case, it affords no relief whatever reduction on the unprotected articles. Now to the south. It only aggravates the injustice assuming the reduction on the unprotected ar- of which we complain. It throws the whole ticles proposed by the Treasury to be as before burden of federal taxation on the very articles stated

$2,500,000 the duties upon which operate as a tax on sou. The following are the further re.

thern capital and labor, and as a bounty upon ductians embraced in this bill, viz:

the industry and capital of another section of On teas and coffee, free,

337,261 the Union. The passage of such a bill as this Wines and silks, further reduced, 1,100,000 would only be regarded as the consummation

of the protecting policy. It leaves no hope for

$3,937,251 the future. It must rivet upon the country, ir. Making the total reduction on the unprotect. retrievably and for ever, a system which he did ed articles, in round numbers, about four mil- most conscienciously believe was hostiie to the lions of dollars, estimated on the receipts of general welfare utterly unconstitutional and 1830.

destructive of the best interests and dearest From which if we deduct the assumed in- rights of the plantation States. The gentleman crease on the protected articles as about $1,- from Kentucky had expressed a bope-doubt. 000,000, we have as the amount of actual re. less most sincerely entertained—that the south duction under this bill, three millions, and no would receive this bill as a peace offering, more. If the present revenue be estimated at founded on concession and compromise; and he the actual receipts of the year 1831, viz. $28,- had kindly tendered his advice that we should 525,000, or at the actual receipt of the last go home and say to our constituents tha: we year upwards of $30,000,000, or at the average nad accomplished all that we had a right to es receipts of the last five years--the result, after pect--that our grievances were redressed-and making every allowance, will give a clear re-thus the country would be once more restored venue of upwards of twenty millions of dollars, to barmony and peace. Let me tell that genand leave us eight or ten millions beyond the tleman, Sir, that if, with my convictions of the ordinary expenses of the Government. true character of this bill, I could go to my con

Having taken Mr. McLane's estimated re-stituents with such language on my lips,



[ocr errors]
[ocr errors]


[ocr errors]

tected articles at $1,406,000 beyond the present tion of power have grown our laws of pated constitu

to conclude that such a power was not intente con

within the scope of congressional power, the tuto views of the true issue tendered by the Presi-tempts, by grants of monopolies, or sale of desir



go home “ with a lie in my mouth.". served rights of the States, I do not entertain a al 1

No Sir! when I speak on such a subject, I shall doubt." Without stopping to inquire for what
speak the honest convictions of my mind; purpose these declarations have been introdser hay
and shall be constrained, however reluctantly, into the message, we cannot but anticipate it info
to declare, as I now do, in the presence of this uses to be made of them hereafter; and it in the
House, my Country, and my God, that the A- importance to the whole country that no für of E
merican system has beconie the settled policy coloring should be given to the Executive -
of the country--that the hopes of the south are pinion, by the use of these isolated passages/ in
at an end, and—as far as their prosperity is will consume so much of your time as mayo PM
dependant on federal legislation -THEIR RUIN necessary to dispel the illusion they are cakt port

&ted to create.

then NOTE-The Senate finally receded from such I repeat then, Sir, that from tke opinions of of their amendments as were disagreed to by the the President, as fully developed in this pape, House. The points in dispute, however, were it is not to be expected that during his admiti ofices very few and not of much importance. 'tration, and while these sentiments remain o The following were the only material items: changed, any bank whatever can be established be in

1st. The 57 per cent on woollens, passed by this Government; and to show 4, I will ca stitutio by the Senate, was reduced to 50 per cent. as tent myself by referring to a few paragraphs i branch proposed by the House.

that part of bis argument which labors to prot lie ser 2d. Sail duck was left as proposed by the the present bank charter unconstitutional: House at 15 per cent.

"On two subjects only does the constitutia MILL 3d. Cotton bagging was left at 31-2 cents as recognize, in Congress

, the power to grantes: The passed by the House, instead of 4 cents. clusive privileges or monopolies

. It decks' Ban 4th. Sugar was left at two and a half cents that “Congress shall have power to present please as proposed by the House, instead of being the progress of science and useful arts by secret, lic left at three cents, the present duty.

ing, for limited times, to authors and inrentes power Calculated even on this basis, Mr. McDof- the exclusive right to their respective writing "W17 FIE estimated the increase of duty on the pro- and discoveries. Out of this express delep QUES tariff. Making allowance for the fall of prices and copy-rights. As the constitution express the exo it cannot be doubted that the duties now im- delegates to Congress the power to grantes posed are much greater, ad valorem, than they clusive privileges, in these cases, as the mens were in 1828, without taking into account the of executing the substantive power as to produk the cash duties, or change in the pound sterling.

mote the progress of science and useful arty"

is consistent with the fair rules of construction GereDEBATE ON THE VETO MESSAGE. to be granted as a means of accomplishing her pagesia

other end. On every other subject which comes o efie IN SENATE-TUESDAY, JULY 10, 1832.

is an ever living discretion in the use of property is not to Mr. CLAYTON rose for the purpose of add-means, which cannot be restricted or abolished ing to what had been suggested by gentlemen without an amendiment of the constitution who had gone before him in the debate, his own Every act of Congress, therefore, which to dent to the country in the message under consi- clusive privileges for a limited time, its deration.

It was not merely the question whe- without limit, to restrict of extinguish it on ther the present Bank of the United States discretion in the choice of means to execute lite should be rechartered—but whether ANY BANK delegated powers, is equivalent to a legislative WHATEVER should be established by the Govern- amendment of the constitution, and palpablysment after the expiration of the act of Congress constitutional." incorporating that institution. This message contains, said Mr. C. two sen- ment, the grant of a charter to individuale

Here, and elsewhere throughout the doctor tences which I will venture to predict will be for banking purposes is denounced as the artfully quoted in the coming contest, to prove "grant of monopoly--the sale of excesire the very reverse of the position which I have privileges”-the "grant of exclusive privileges laid down, and to delude the people who are to or monopolies's equivalent to a legislative decide on this question, as to the real opinions amendment of the constitution, and palpable of the President in reference to the whole sub- unconstitutional.” If a grant to one incorporate ject. We shall be told, Sir, that in the very company to be a monopoly, we must also en first page of this document the President has sider as monopolies several grants to several admitted that “a Bank of the United States, is such companies. Twenty such grants to even in many

respects, convenient for the Govern- ty such companies are as much sales of escla the twelfth page of the same paper, he has said peculiar and present subject of the Preside ment and useful to the people ;" and that, on sive privileges to them, as that which is the " that a Bank of the United States, competent animadversion, to all the

duties which may be required by the charters by which private individuals are per Government, might be so organized as not to mitted to hold stock, could be obviated only by infringe on our own delegated powers or the re. a grant of characters for banking purposes &

[ocr errors]

The Pre



[ocr errors]

This objection, tatal tual

[ocr errors]

Eates it all who ask them mode of avoiding the constitutional scheme is, to establish a bank as

constiutional objection not to be supposed to a “branch of the Treasury Department”--that tots dos have entered into the imagination of him who department whose head or Secretary is, by Autos informed us, in his message of 1829, that even constitutional construction, removable by the bem les the present Bank had failed in the great object President alone at his pleasure. In this bank de tent of establishing a sound and uniform currency. or "branch of the Treasury,” the funds of the

What manner of a National Bank is that, sir, nation-all the revenues of the government, are in which the people of our country are to be to be kept by the Secretary, whd, being a quasi

prohibited from holding stock? Another im- president and cashier of the bank can never be o portant feature of this project is disclosed on "locate branches," or withdrawn them, without the ninth page of the message,

the will of the President-and who, while in The Government is the only ‘proper' judge perfect subservience to the same will, is to where its agents should reside and keep their check the issues of all the State Banks, by reoffices, because it best knows where their pre-fusing to take their notes in deposite and for sence will be necessary.' It cannot, therefore, exchange, or by accepting them at pleasure. be necessary' or 'proper" (that is, it is uncon. In order that the views expressed in the pas.

stitutional to authorize the Bank to locate sages cited may be more distinctly, undertood, 1 branches where it pleases to perform the pub. I quote the messages of the President for the

lic service, WITHOUT CONSULTING THE years 1829 and 1830, wbich furnish the sound. GOVERNMENT, AND CONTRARY TO ITS est commentaries on that before us, and exhi. WILL."

bit to us fully that plan of a bank which, as we The inference is then distinctly drawn, that have already seen, can have no stockholders, lest, a Bank, which can locate branches where it exclusive privileges should be granted, and the pleases, must be a bank "for other than pub- branches of which are to be located when and lic purposes"-or, in other words, that the where the Executive may direct, power to establish two branches in any State,

In the message of 1829, the President thus “WITHOUT THE INJUNCTION OR RE- introduces the subject to Congress: QUEST OF THE GOVERNMENT,is un.

"The charter of the Bank of the United constitutional

, because it is not necessary to the states expires in 1836, and its stockholders "due execution of the powers delegated to Con will most probably apply for a renewal of their gress,

If any thing were wanted to demonstrate privileges. In order to avoid the evils resulting that the only bank, to the existence of which from precipitancy in a measure involvnig suck the President will ever yield his assent, is that important principles, and such deep pecuniary "Government bank founded on the revenues of

interests, I feel that I cannot, in justice to the

parties interested, too soon present it to the de. the country," recommended in his former mes. sages to Congress, we have it here. For it is liberate consideration of the legislature and the in effect held by him that no bank can be con

people. Both the constitutionality and the ex. stitutionally created over which the Executive questioned by a large portion of our fellow citie

pediency of the law creating this bank, are well is not to exercise absolute control. The "go- žens; and it must be admitted by all, that it has vernment” must have the power at all times to failed in the great end of establishing a uniform locate branches where it pleases; and as the

and sound currency. power to establish or create involves the power to destroy or remove, it must, of necessity, ex

“ Under these circumstances, if such an inercise the authority to withdraw those branches stitution is deemed essential to the fiscal conwhenever, in the exercise of its discretion, such cerns of the Government, I submit to the wis. branches shall appear not necessary” or dom of the Legislature, WAETHER A NATIONAL *proper." By the word “government,” as ONE, FOUNDED UPON THE CREDIT OF THE GOhere used, is meant the EXÉCUTIVE alone, VERNMENT AND IT'S REVENUES, might not and by the Executive is meant the President be devised, which would avoid all constitution. That is apparent from the whole context: Con- al difficulties, and at the same time, secure all gress not being generally in session half the the advantages to the Government and country year, could not be alluded to as that “govern that were expected to result from the present ment," without the injunction or request of bank." which, no branch bank ought to be established In this message the favorite, and to the view in the opinion of the President. It could not of the President, the only constitutional projet exercise the power. The fiscal concerns of of a Government Bank is very respectfully subthe government are entrusted to the Executive mitted to the wisdom of Congress, although, in the absence of Congress, which is a body too in the veto message under consideration, Conunwieldy to manage their details

, when it is in gress is lectured because it did not submit the session, and (with deference to our dignity be matter to the Executive before it dared to act. it spoken) too ignorant of the practical science In the message of 1829, the Government Bank of banking to decide properly on the ten thou. is suggested as one that would avoid all constisand questions which would enter into such a tutional difficulties. In the veto message of eubject, were it divested of every political or 1832, all other banks are pronounced to be unparty inducement to act improperly when its constitutional : First, because they bave stock. members shall be converted into bankers and holders, and therefore are grants of exclusive bank directors. The plan disclosed as the only privileges ; and, Secondly, because they are

[ocr errors]
[ocr errors]



[ocr errors]

not under the sole guidance and control of the Secondly, because it is to have no stockhold. Executive.

ers, of course no countervailing check to Exc. The President, in his message of 1830, is cutive influence is to be suffered to exist in the still more explicit:

patriotism or interest of the people. “ The importance of the principle involved. Thirdly, because it is to have no deblors; in the inquiry whether it will be proper to re. consequently it is no part of its design to rele! charter the Bank of the United States, requires the commercial embarrassments of the couch that I should again call the attention of Con- during any of those Auctuations in trade wie gress to the subject. Nothing has occurred to will often occur in any community. It is to fui lessen in any degree the dancers which many nish no relief to distress under any circumsteof our citizens apprehend from that institution, ces, and still it is to be a benefit to the poor. as at present organized. In the spirit of im. Fourthly, because it is

have no properti. provement and compromise which distinguish. By this is meant that it shall bold nothing bet es our country and its institutions, it becomes money. The same idea is thus enforced in the us to inquire, whether it be not possible to reto message: secure the advantages afforded by the present “ The Government of the United States have bank, through the agency of a Bank of the no constitutional power to purchasy lands with United States, so modified in its principles in the States, except for the erection of for and structure as to obviate constilutional and magazines, arsenals

, dock yards, and other ness other objections. It is thought practicable to ful buildings;' and even for these objects on organize such a bank, with the necessary offi- by the consent of the Legislature of the Star: der cers,

AS A BRANCH OF THE TREASURY in which the same shall be. By making thea DEPARTMENT, based on the public and in-selves stockholders in the bank, and grateng dividual deposites, without power to make to the corporation the power to purchase lande loans or purchase property, which shall remit for other purposes, they assume a power as the funds of the Government, and the expen- granted in the Constitution, and grant to others ses of which may be paid, if thought advisable, what they do not themselves possess

. It is set by allowing its officers to sell bills of exchange necessary to the receiving, safe keeping, & to private individuals at a moderate premium. transmission of the funds of the Governmex Not being a coporate body, having NO that the bank should possess this power; andie STOCKHOLDERS, DEBTORS, OR PRO is not proper that Congress should thus enlara PERTY, and but few officers, it would not be the powers delegated to them in the constiä. obnoxious to the constitutional objections which/tion." are urged against the present bank; and hav.

Of course, if it receives the notes of a Site ing no means to operate on the hopes, fears, bank in payment of revenue, which should be or interests of large masses of the community, come insolvent, or whose paper should depen it would be shorn of the influence which makes ciate, it can take no land or other property a that bank formidable. The States would be compromise of the debt.

ed strengthened by having in their hands the

Another feature of this government bank is means of furnishing the local paper currency that it is to have no loans, and issue no paper

. de through their own banks ; while the Bank of Yet it is to accomplish

what it is said by the the united States, THOUGH ISSUING NO President even the present bank has failed to PAPER, would check the issues of the State achieve-the establishment of a uniform und banks, by taking their notes in deposite and for sound currency. A thousand State bankset A exchange, only so long as they continue to be ting a thousand different kinds of paper

, and redeemed with specie. In times of public ferent parts of the whole country, with difter emergency, the capacities of such an institution ent degrees of credit attached to them, are thos might be enlarged by legislative provisions." to s furnish the local paper currency," which We see, then, why all other banks, except is to be UNIFORM. Stock note and

paper this government bank, are held to be unconstitu- banks, springing up as they did in 1811, un tional. The reasons for which the government after the expiration of the charter of the old bank is considered as the only constitutional Bank of the United States

, in every part of our compromise to which the President can accede, immense territory, are to form for us a SOEND

currency. Such have been the views of the First , because it is not to be a corporate body. President

, since December, 1829, to this day Of course it is not liable before any court, should of a Bank of the United States. At every it violote its duties, trample the State laws un-riod, under

any and all circumstances, be bolde der foot, and prostitute itself to every political no bank to be constitutional, but such as I bet and ambitious design of the President who would described. Thus, in his message at bold it in his power as absolutely as the very mencement of the present session, he maintas pen with

which he signed this message. Wield. the sameviews, and puts himself upon the com ing the immense revenues

of the whole country for a verdict in favor while he expresies de try, more than twenty millions annually, and them: vested with all the additional power which the

" Entertaining the opinions heretoforees whole credit of the nation could confer, it would, pressed in relation to the Bank of the late at the same time, stand above every law to the states as at present organized, I felt it or do enforcement

of which a judicial tribunal should ty, in my former messages, frankly to disclant be requisite.

them, in order that the attention of the legisk


[ocr errors]


[ocr errors]
« ForrigeFortsett »