sz9@@@§I MR. WEBSTER, MOVING FOR LEAVE TO INTRODUCE " A B I L I. ’ TO CONTINUE‘ THE BANK 013* THE UNITED STATES FOR SIX YEARS. DELIVERED IN THE SENATE on THE UNITED STATES, March 13, 1334. WASHINGTON: % 1>”mN'rEnJ1aY GALESVAND SEATON.» "1834. M SPEECH. -®e— Mr. WEBSTER rose and said: 17 rise, sir, pursuant to notice, to ask leave to bring in a bill to continue, for six years, the act incorporating the su bscrih- ers to the Bank of the United States; and shall hope for that indulgence of the Senate which is usually granted on such occasions, if I accompany its introduction with some remarks on the general state of the country, as well I as on the nature of the measure proposed. If leave be granted, it is my purpose to move to refer the bill to the Committee on Finance, that it may take the usual course, and come up for the consideration of the Senate in due season. Mr. President, in the midst of ample means of national and individual happiness, we have, unexpectedly, fallen into severe distress. Our course has been suddenly arrested. The general pulse of life stands still, and the activity and industryof the country feel a pause. A vastly extended and; heneficent commerce is checked; manufactures suspended, with incalculabla injury to those concerned in them; and the labors of agriculture threatened with the loss of their usual reward. . Our resources are, nevertheless, at the same time, abundant, and all external circumstances highly favorable and xadvantageous; such as fairly promised us, not onlyra continuance of that «degree of prosperity which we have actually enjoyed, but its rapid advance- ment, also, to still higher stages. The condition of the country is, indeed, singular. It is like that of a. strong man chained. In full health, with strength unabated, and all its facul- ties unimpaired, it is yet incapable of pertbrming its accustomed action. Fetters and manacles are on all its limbs: If wecould but unbind it, if we: rcoulcl break these iron chains, if we could once more set it free, it would‘, in. a mloInent,resume its activ.ity,»sperous.x The commerce of the‘ country had reached, I think, to a greater extent than in any former year; the amount of exports for 183-3 being, according to the Treasury estimate, no less than" ninety millions of dollars, and that of the imports no loss than one hundred 4 and nine millions. The internal and coasting trade was in a still more». flourishing CO1'1Cllt10l’l. This branch of the national industry has grown intev , the very highest importance, affording a vast field for active usefulness, en--~ Iiching all parts of the country by its mutual exchanges of commodities, and furnishing profitable -. employment to great numbers of the people. It was carried on last year, both by sea and land, with great vigor; and the situation of the currency of the country gave it facilities such as never existed else-— Where over so broad an extent. The money circulation was free, and the banks in good credit. They were doubtless somewhat too economical in the use of specie,~and~ sustained their credit on a basis not sufiiciently broad tel be ‘quite secure. But no great degree of danger to the circulationwas fe1t,. or generally feared. ' . A 1 1 Such was our condition in September last, and the change which has since- taken place must strike all minds. How do we stand now, in respect to’ these great interests? Let us look to’ our commerce, the main source of our revenue, as well as a source of wealth, and let us see how that is afl'ected,, or likely to be aliected, by recent occurrences. I have statedthe amount of exports and imports for the last year; those for the present cannot, of course, be yet’ estimated with accuracy, but we are not without some means of forming opinions upon this interesting point. I think it is evident that there must be a falling oil‘ in the imports, and consequently a falling off in the revenue. 1 I shall be very glad to find myself mistaken in this opinion, but it appears to» ' a me there is much ‘reasonto entertaintit. As one of the~ComInittee on Finance, I have felt it my duty, of course, to look to the state of the Trea-~ sury, and to form some opinion, if I could, of what may-be i_ts future‘ con-— dition. Its present state, as we learn from the Secretary’s report, with his-. estimate of «the receipts and expenditures of the year, is substantially as, follows: V Estimated balance in the Treasury, January 1, 1834, ‘ $7,983,790» But from this deduct the amount of appropriations already made, and which remain unsatisfied, which amount the Secretary supposes may yet be required for the objects forwhich it was appropriated, - - r— g - -=» V — 5,190,287 Balance remaining in the Treasury unappropriated, 0. $2,793,503» Estimated amount of receipts for 1834: ‘ Customs, - - - - $15,000,000 Land, - 1-» - - 3,000,000 , Bank dividends and miscellaneous, - 1 r 500,000 r p t " u . 0 y 1 . ,18‘,500,000Yt Total of means for the use of 1834, 0 9 --, 9 - - $21,293,503- Estimated expenditures for 1834, - - 23,501,994: This statement would seem to exhibit a deficit of more than two niillionsg. 9 and. this would doubtless be the result, should the appropriations of the year all be calledffor within the year; but experience shows that this is not to be expected. VVhat amount of appropriations may remain uncalled for, how-~ , ever, is necessarily uncertain. ~ t 1 p I y 1 Among the expenditures, it is to be observed, is included the sum of five millions, within a fraction, for the payment of the balance of the public deht,, '1 V ‘which becomes ‘‘ reimbursable at the commencement ofnext year.” 9 9 The Secretary supposes,even without making any allowance fOr".tl_1,e“eif':"' 5 tfect of recent measures, that the receipts for 1835 will be still less than those» ;.for 1834; and that, unless the revenue should be more productive than is «anticipated, it will be necessary in two years from this time to retrace our , . steps, and to impose duties on articles which are now free, in order to meet I.=7£ll6 current expenses of the Government. If such were the prospects of the country in regard to revenue, before the late measures had so much disturbed its commerce, it cannot but be expected .«:‘lIl13.t, under the influence of that cause, there may be a veryconsiderable de- «iiciency, especially should the cause continue. I I It is not very easy to ascertain to what extent the importations of the year .rnay fall short of previous importations, in consequence of the disturbed state of things; but I know an opinion is entertained among those who have the .best means of forming a correct judgment, that there may be a falling off in the receipts of the customs from a quarter to a third of the amount anticipated. ..Sliould this prove to be true, which there is'certain1y too much reason to, arfear, Congress may be called on, much earlier than within two years, to vzfurnish additional means of revenue. I ,The diminution will be mainly felt in -the last half of the year, it being generally understood that orders for fall importations have been counter- .im8.11ClE3Cl to a great extent. It is not thought improbable, that the receipts of tthe year from customs, estimated at fifteen millions, will fall down to twelve. i This, should it happen, would no otherwise disturb the intended course of things, than as it would postpone the payment of the balance of the public I debt; but this effect‘ it is not unlikely to produce. On such subjects, how- . ever, no very sure anticipations can be founded, and therefore I speakwith no positiveness. But it is my expectation that the receipts of the year will" fall below the estimate, and probably to the extentI have mentioned; and tthat this effect will be produced by no other cause than the deranged state of things, occasioned by the removal of the public moneys. ‘ If such be the consequences of the measure on our foreign commerce, and . on the revenue, its effect on the internal trade of the country is a thousand times more disastrous. Here, it produces, not only diminution, but stagna- tion; and such a stagnation as has caused as cessation of prodztctiowt. The industry of the country is arrested, and its useful labor suspended. Great activity prevailed in the manufacturing districts, under a sanguine expecta» tion that the law of the last session would, for a time at least, ensure success «to that great interest. But this new measure has struck that interest with a :Sl1ClCI€.‘I'l. and deadly blow. It is now but little more than twelve monthssince the manufacturing portion of the community was deeply alarmed by the pendencyiof a measure in the other House, known usually as Mr.Verplanck’s irhill. Throughout the middle and the northern States, and wherever that in—- terest existed, the apprehension of change in the policy of the country di- eniiiished the value of property, embarrassed all calculations for the future, ..and disturbed and deranged the course of private occupation and industry. But how small was all that evil, compared with the effects produced by the .JSecretary, whrenhe-interfered with the public revenues! . r I will not go over the long list of cases, in which prosperous manufacturing ..establishrnents have been compelled to discontinue their operations,»runder the .pressure of the times. I will only advert toan instance or two, taken, without selection, from papers and letters before me. Let Paterson, in New Jersey, be gone of these instances; the state of which interesting and afllicted town has been, indeed, repeatedly presented to the Senate by the members from that ‘State. The population of Paterson, I believe, is about ten thousand; and it is known... 6 to be a population almost exclusively engaged in manufactures. In Septexn-»~ l her last, 43,500 spindles were in operation in'it. tOf these, 24,500 have-v stopped, and 5,000 others are expected to stop as soon as stock on hand is-. ‘worked up. I "am informed that the manufacturers at Paterson cannot pre» ,0 jvailgon their consignees, in Philadelphia and New York to come under re--- sponsibilities "for them, even to the amount of one-third” the cost of producing "tthearticle. ‘The means, therefore, ‘of paying labor, and purchasing new stock, are comple_tely'cut oil‘. ‘I I i I _ We may see. another instance, sufficieiitly appalling, in the maiiufactoriea. L in New Hampshire. I understand a cotton mill at Dover, of six thousand spindles, has ceased operation, and another was to cease the 15th of this ‘month; a mill with four thousand spindles, at Newmarket, and another at Nashua, of five thousand, have ceased also; and a large woollen mill, at a. place called the Great Falls, employing two or three hundred hands, has stopped with the rest. These, sir, are instances of the effect of the experi- ment upon our_manufacturing interests. Accounts similar to these have reatchéd us from iNew York, Connecticut, Maine, Vermont, Rhode Island, and Pennsylvania. I need not enter into the particulars of these accounts.. T-heir general character is like that of those which I mentioned from New _ ersey and New Hampshire. C It is often inquired, how this enormous amountof evil could spring from a cause so apparently inadequate to produce it? Can it be possible, it is asl«:.ed,_..., that the Secretary has brought about all this distress, simply by ‘removing a- few millions of dollars from one bank into other banks? Sir, nothing is more , arue, and notliiiiglmoreeasily accounted for. Every commercial country has one great representative, constantly pass» ~ ring and acting between all its citizens. This universal representative is mo- -r ney, or credit, in some form, as its substitute. VVithout this agency nothing“ can be bought, and nothing can he sold; capital has no income, and labor not reward. It is no ngrore possible to maintain the ordinary business and inter» course between man and man without money and credit, than to maintain an“ intercourse between nations without ministers or public agents, or to rnain-we tain punctual correspondence by letter, without the mail. And all the dis»- ‘tress which the country now suffers a_1;i_ses solely from acts which have de--« ‘ranged the currency of the country, and the ‘credit of the commercial com-» munity. The country is as rich, in its general appearance,as it was before ‘the experiment was begun; that is to say, men have the same houses, lands,.., ships, and merchandise. But the value of these has fallen; or, to speak more» correctly, they have lost the power of being exchanged; and they have lost this power, because of the embarrassment which has befallen the general me-a , Ilium of exchange. 4 months ago a state of tliings existed, lllgltlly prosperous and advanta- I _,,_-gerous to the country, but liable to be injuriously affected by precisely such a a cause ashes now been put into operation upon it. Business was a:ctive,and " caI‘riedto a great extent. . Commercial credit was expanded, and the circu-~ lataon of money was large. This circulation, being‘ of paper, of course rest»- ed on credit; and this credit was tbtinded on banking capital, and bank depo- -sites. , The publicrevenues, fromthe time of their collection to the time of [fléieir disbursernent, were in the Bank and its branches; and, like other depo-~ - :si-tes, contributed to the meansof discount. Between the Bank. of the Uni- ied States and the‘ State banks, there was a degree of, Watchfulness,Ijp.erlraps. bf’ rivalry; but there was no enmity, no hostility. All moved I in their in owm. proper spheres, harmoniously and in order. 7 I i The Secretary disturbed this state of peace. He broke up allfthe harrnonybf the system. By suddenly witlidrawing all the public rnoneysfrorn the Bank ofthe United States, heiforced that Bank to an immediate correspondent curtailment of its loans and discounts. It was obliged to strengthen itself; and the State banks, taking the alarm , were obliged to strengthen themselves also, by similar measures. So that the amount of credit actually existing, and on which men were doing ‘ T business, was suddenly greatly diminished. Bank accommodations were with- drawn; men could no longer fulfil their engagements‘ by the customary means; i property fell in value; thousands failed; many thousands more maintained their ‘individual credit by enormous sacrifices; and all being alarmed for the future as well as distressed for the present, forbore from new transactions and new engagements. Finding enough to do to. stand still, they do not attempt to go forward. This deprives the industrious and laboring classes of their occupa- tions, and brings want and misery to their doors. This, sir, is a short recital . of cause and effect. This is the history of the first six mopths of the “ ex- periment.” Mr. President, the recent measures of the Secretary, and the opinions which are said to be avowed by those who approve and support them, threat» ‘en a wild and ruthless attack on the commercial credit of the country, onthat most delicate and at the same time most important agent inproducing” general prosperity. Commercial credit is the creation of modern times, and belongs, in its highest perfection, only to the most enlightened and best governed nations. In the primitive ages of commerce, article is exchanged for article, without the use of money or credit. This is simple barter. But, in its pro- gress, a symbol of property, a common measure of value, is introduced, to facilitate the exzclianges of property; and this may be iron, or any other arti-— cle fixediby law or by consent, but has generally been gold and silver. This, certainly, is a great advance beyond simple barter, but no greater than has been gained, in modern times, by proceeding from the mere use of money to the use of credit. Credit is the vital air of the system of modern commerce. It has done more, a thousand times, to enrich nations, than all the mines "of all the world. It has excited labor, stimulated nianufactures, pushed.com-- merce over every searyand 1)1~ong~l1t every nation, every kingdom, and every small tribe, among the races of men, to be known to all the rest. It has raised armies, equipped navies,and, triumplting over the gross power ofmere numbers, it has established national superiority on the foundation of in» telligence, Wealth, and well-directed-industry. Credit is to money what imoney is to articles of merchandise. As hard money represents pro-~ perty,.so credit represents hard money; and it is capable of supplying the place of money so completely, that there are writers of distinction, espe"ciall_y of the Scotch school, who insist that no hard money is necessaryifor the in» wterests of commerce. I am not of t that opinio"n.7> ;I do“ not think any Govern» ment can maintain an exclusive paper system, without running to excess, and e thereby causing depreciation. = l ‘I hold the immediate convertibility of banli notes intospecie to be an dndispensablersecurity to their retaining their value; ‘but, consistently with" this security, and, indeed,‘ founded uponit, credit becomes the great agent of excliange. It is] allowed that it increases consumption, by anticipatingylpro-~ t ducts; and that it supplies present wants out _;of future m€a13S- 4* And €18,313 r circulatestcommlodities without the a“ctual'use”of gold and silver, it not only saves much by doing away with the constant transportation, of the precious; rrnetals fromplace to place, but accomplishes“ exclianges -With 3- degree Of iidespatch and punctuality not otherwise to be attained. Allbills of t exchange, 8 all notes running upon time, as well as the paper ‘circulation of the banks, "belong to the system of commercial credit. They are parts of one great whole. And, sir, unless we are to reject the lights of experience, and to repudi- ate the benefits which other nations enjoy, and which we ourselves have hitherto enjoyed, we should protect this system with unceasing watchfulness, taking -care on the one hand to give it full and fair play, and on the other to guard lit against dangerous excess. VVe shall show ourselves unskilful and unfaith-— ful statesmen if we do not keep clear of extremes on both sides. It is very truepthat commercial credit, and the system of banking, as apart of it, does furnish a substitute «for capital. It is very true that this system enables men to do business, to some extent, on ‘borrowed capital; and those who wish to destroy all such, act wisely to that end by decrying it. V This commercial credit, sir, depends on wise laws, steadily administered. T Indeed, the best governed countries are always the richest. With good po- litical systems, natural disadvantages, competition, and the world, may all he defied.- Without such . systems, climate, soil, position, and every thing else may favor the progress of wealth, and yet nations be - poor. What but hard laws and bad government has retarded the progress of commerce, _C.I'eClit, and Wealth, in the peninsula of Spain and Portugal, a part of Europe distin- guished for its natural advantages, and especially suited, by its position, for an extensive commerce, with theiysea on three sides of it, and as many good harbors as all tl1e'rest of Europe? The whole history of commerce shows that it flourishes or fades, just in proportion as property, credit, and the,fruits of labor, are protected by free and just political systems. Credit cannot exist -.under arbitrary and rapacious Governments, and commerce cannot exist without credit. Tripoli, and Tunis, and Algiers, are countries, above all «others, in which hard money is indispensable; because, under such Govern- .me-nts, nothing is valuable which cannot be secreted and boarded. And as iGover11me11t rises, in the scale of intelligence and liberty, from these barba- rous despotisms to the highest rank of free States, its progress is marked, T at every step, by a higher degree of security and of credit. And this undenia-—~ ble truth should make well-informed men ashamed to cry out against banks ., and banking, as being aristocratical, oppressive to the poor, or partaking of '.;‘l5l”1(~3 character of dangerous monopoly. Banks are a part of the great system ,«=e‘f' commercial credit, and have done much, under the influence of good «of the brother and successor of that monarch’! ,-government, to aid and elevate that credit. What is their history’! Where ..do we first find them’! Do they make their first appearance in despotic Governments, and show themselves as inventions of power to oppress the ,people'l The first bank was that of Venice; the second that of Genoa. From the example of these republics, they were next established in Holland and ‘the free city of Hamburg. England followed these examples, but not until she had been delivered from the tyranny of the Stuarts, by the revolution of .1688. It was.William the Deliverer, and not William the Conqueror, that established the Bank of England. Who supposestthat a Bank of England could have existed in the times of Empson and Dudley’! Who supposes that «it could have lived under those ministers of Charles II. who shut up _the Ex»- achequer; or that its vaults could have been secure against the arbitrary power The history, of banks belongs to the history of commerce and the general history of liberty. It belongs to the history of those causes which, in a long course of years, raised the middleand lower orders of society to a state of giritelligence and property, in spite of the iron sway of the tfeudalsystem. In what‘ instance have they endangered liberty, or overcome, the laws‘! Their 9 “wary existence, on the contrary, depends on the security and the rule both of liberty and law. Why, sir, have we not been taught, in our earliest reading, -that, to the birth of a commercial spirit, to associations for trade, to the , guilds and companies formed in the towns, we are to look for the first appear- -ance of liberty, from the darkness of the middle ages; for the first faint blush =of that morning, which has grown brighter and brighter till the perfect day has come’! And it is just as reasonable to say that bills of exchange are «dangerous to liberty, that promissory notes are dangerous to liberty, that the 0...; . , tpower of regulating the coin is dangerous to liberty, as that credit, and bank- ing, as a part of credit, are dangerous to liberty. , _ Sir, I hardly know a writer on these subjects who has not selected the United States as an eminent and striking instance, to show the advantages «of well established credit, and the benefit of its expansion, to a degree not incompatible with safety, by a paper circulation. Or, if they do not men- ,tion the United States, they describe just such country; that is to say, a new and fast growing country. Hitherto, it must he confessed, our success has been great. With some breaks and intervals, our progress has been We rapid, because our system has been good. We have preserved and fostered -credit, till all have become interested in ‘its further continuance and preserva-W tion. It has run deep and wide into our whole system of social life. Every man feels the vibration, when a blow is struck upon it. And this is the rea- son why nobody has escaped the influence of the Secretary’s recent measure. ! While credit is delicate, sensitive, easily wounded, and more easily alarmed, it is also infinitely ramified, diversified, extending every where, and touching every thing. ‘There never was a moment in which so many individuals felt their own private interest to be directly affected by what has been done, and what is to be done. There never was a moment, therefore, in which so many straining eyes were turned towards Congress. It is felt, by every one, that this is a case in which the acts of the Government come directly home to him, and produce either good or evil, every hour, upon his personal and private condition. And how is the public expectation met? How is this intense, thisagonized expectation answered? I am grieved tolsay, I am :ashamed to say,‘it is answered by declamation against the Bank, as a monster, aby ,,,_1,ot1d cries against moneyed aristocracy, by pretended zeal for a hard «rnoiey system, and by professions of favor and regard to the poor. V The poor! We are waging war for the benefit of the poor! We slay that monster, the Bank, that we may defeat the unjust purposes of the rich, and ele- vate aud protect the poor! And what is the effect of all this’! What happens to ‘the ‘poor, andall the middling classes, in consequence of this warfare’! Where are they’! Are they well fed, well clothed, well employed, independent, happy, and grate'ful’Z»: Theyare all at the feet of the capitalists; they are in the jaws of usury. If there be hearts of stone in human bosoms, they are at the mercy of those who have such hearts in their breasts. Look to the rates of interest, mounting to twenty, thirty, fifty per cent. Sir, this mea- sure of -Government has transferred millions upon millions of hard-earned property, in the form of extra interest,f'rom the industrious classes to the «capitalists, from the poor to the rich. And this is called putting down a moneyed aristocracy"! ‘Sir, there are thousands of families who have dimin- ished, not their luxuries, not their amusements, but their meat and their bread, that they might be able to save their credit, by paying enormous ‘in- -terest. And thpre are other thousands who, having lost their employment, 10 havelost every thing, and who yet hear, amidst the bitterness of their anguish,. that the great motive of Government is kindness to the poor! g It is difficult, sir, to restrain one’s indignation, when, to so much keen dis-- tress, there is added so much which has the appearance of mere mockery” Sir, let the system of the administration go on, and we shall soon not know our country. VVe shall see a new America. On the map where these Uttitech ‘ , States have stood, we shall behold a country that Will be strange to us. We. shall see a class of idle rich, and a cla.ss of idle poor; the former a handful, the latter a host. ‘We shall, no longer behold a community of men, with spirits all active and stirring, contributing, all of them, to the public welfare, while they partake in it, pushing on their fortunes, and bettering their own condition, and helping to swell, at the same time, the cup of the general pros- perity to overflowing. ‘We shall see no more of that credit, which reaches out its hand to honest enterprise; of that certainty of reward, which cheers on labor to the utmost stretch of its sinews; of that personal and individual inde- pendence, which enables every man to say that no man is his master. Sir, I‘ will not look on the ‘picture. I will not imagine what spectacle shall beex- hibited, when this country not only halts in her onward march, but recedesgg, , when she tracks back in the long and rapid strides of her forward movement; when she sets herself to undotall that she has done; when she renounces the good she has attained; when she obstructs credit, destroys enterprise, arrests commerce, and sntothers inanttlhctures. Mr. President: I confess I find it ditiicult to respect the intelligence, and at the same time the motives of those, who alarm the people with the cry of danger to their liberties from the Bank. Do they see the same danger from other lliltll-ZS'l I think not. With them, bank capital and bank credit is dangerous or harmless, according to circumstances. It is a lion, whose con-— duct and character appear to depend on his keeper. Under the control of this Government, it is fearful and dangerous; but under State authority, it “ roars as gently as a suckitig dove; it roars as it were any 11igl1tingale.” Both the members from New York have labored to persuade us that the public lihertiesiof this whole country are i in imminent danger from a bank’. with thirty-five millions, And yet, sir, they feel no fears for the liberty of the people of their own State, with a banking capital of twenty-three mil»- lions, and a proposed addition of ten millions, all lodged in banks as,so_ciated under the Safiety Fund system, and all under the supervision of a political board, appointed by the Government, In all this they see no danger [to liberty; but their anxiety is intense, lost a bank of thirty-five millions should; enslave all the people of the twenty-four States. i Again,-sir, from the time of the veto message to the present moment, the V country has been assailed with the cry of danger, from the small portion of foreign capital which is in the stock of‘ the Bank. Republicanism, it is said, cannot exist in a country where there is a Bank with Dukes and Marquisses, V and Lords,a1nongyits stockholders. And yet, sir, have we not seen the .Exe-- _cutive approving of an enormous loan by the cities of this District from Dutch capitalists, and V sanctioning a law binding down all their citizens, and "all their property, to payithe interest of this foreign debt, by provisions vastly‘ more strict and severe than those which compel the payment of tazxzes totheir -own lGoverumen_t’£~ And is not Pennsylvania now deliberating whether she Will not send an agent to Europe to borrow money to meet that very exii- ipgency, which the present state of things creates? And is not the nt”:*W*‘lJa11l{, too, proposed to be established in New York, to be created on foreign "a capital"! t V 11' Sir: are arguments ofthis nature altogether creditable to tlieycou-11t1'y‘i. Dot they exhibit us in a respectable light abroad’! Do intelligent observers,.-.clse-- where, behold our public men addressing themselves to the people in fair dis-» cussion on the real merits of public questions; or may they not think, rather,, that they see , them attempting to carry favorite measures of party, by false cries of danger to liberty? - ;The truth is, that banks, every where, and especially with us, are made-. for the borrowers. They are made for the good of the many, and nottthe good of i the few. Even their ownership, to a very great extent,.is in the hands of men of moderate property. I have read a very able speech, by Mr. Cushing, in the Legislature of Massachusetts, in which he states that he has taken pains to examine the list of stockholders, in several banks in ‘his neighborhood, and he finds a majority of the stock (I think more than two- thirds,) in the hands of charitable societies, guardians, widows, and traders: with small capital. And, sir, at this rnornent, the stockholders of t the Bank of the United ‘States have infinitely less interest in the questions which we are discussing, as stockholders, than they have as citizens of the country- The stock is constantly in the ,1narl.<.et, and daily changing hands; and any one who wishes for it may always buy it. t It is not permanently vested in any hands; and this of itself shows that the corporation’ is, in its nature, inca- - pable of prosecuting any purpose hostile to the public liberties. Indeed, sir,... I think it time, high time, that there should be a pause in this outcry against the Bank, as dangerous from its political power, or as favoring wealth in its masses rather than in its distribution. Sir, prejudice, excited against the Bank, is a much more powerful engine for political purposes than the Bank; itself. , It is more than a match for ten banks. Not long ago, a member, not now with us, declared on this floor, that, in the course of his political struggles,. T some ears a to he felt sure .ot'trium.. h the moment an im. ression was made 9 , '1 that the Bank had taken part against him; and that if he were again -to be a candidate, he should wish for no surer pledge of success. His own expe-- rience, thus candidly stated, seems not to have been lost on others. full well know, sir, the power of such prejudices... I know how easily they may be excited, and how potent is their agency. Ellbrts to excite them, and cal-A l culations on their efficacy, ‘when excited, have sometimes succeeded, and? must be expected sometimes to isucceecl in popular Governments. They are among the means by which little men occasionally become ‘great. But they are not among the means by which lasting character is to be attained, any more than they are among the means by which substantial and important public service is to rendered to the country. i T I now proceed,‘ Mr. President, to the state of opiniontexisting, both in and’ out of Congress, as to they remedyproperiforrthegpresenticonditionxof things... i it There are three classes of‘ persons, ‘holding onthis subjectdiflierent7opinionis. 1. Those who believe a bank to he constitutional and necessary, and, seeing no danger from the present institution, would prefer, if they could follow their own choice, to recharter the Bank, for the usual period, with the ’ usual powers; modified, however, in any manner that the esperietice of the , past may suggest. a t r _ t p y 2. There arethose who think a bank useful, but who do not believe Con» a gress has the power to incorporate a bank, under any form. 3, There are those who admit the power of Congress to make ‘a bank, , and are in favor of some bank, but oppose the continuatice of the present... It is obvious, sir, that, if anyrelief come to the country, itmust, procee.d’ from some degree of union between these classes, or some of them. 1:2 V And tl1eFquestion‘ilis, isthere any common ground on which these can meet? ‘Is there any expedient which they will consent to lay hold on to save the ' vcount-ry’Z Or will they leave it a prey to their differences of opinion’! ' “V-_,_Niow, sir, among those who oppose those measures of Government, wjhich vhaye brought the present distress on the country, a great majority would pre- fer a continuance of the ‘charter of the present Bank for the usual term. This * would be their wish, and I am one of them. VVe passed a bill ‘for such a T re-charter, through -“both Houses, two years ago, but it was negatived by the -‘President. I would prefer a bank of fifteen or twenty years duration; either this or a new one; for I do not act from a regard to the pecuniary interest of ‘the stockholders in the present Bank, although I would not consent to do them any injustice. But, sir, I see no chance of renewing this charter, at present, for a long period. It appears to me that the minds of members of Congress are in a . state to render this hopeless. I give up, therefore, my own preference; I I sacrifice my opinions to that necessity, which I feel to be imposed upon me ‘by the condition of the country. I go forlrelief, for efficient relief, and for ‘immediate relief. I feel this to he demanded of me, by every dictate of duty «and patriotism, and by the loud voice ofthe country. I obey that voice, and cheerfully yield every thing to the accomplishment of the object. When I -‘ask others to make sacrifices, I begin with making them myself. Preferring a permanent measure, I yet agree to a temporary measure. ‘Desirous of settling the question for a length of years, I yet consent to leave ‘it open, in the hope of obtaining present relief and security; and I earnestly -entreat all those with whom I have generally concurred in opinion, to concur in a temporary measure. If we cannot do all we would, let us do what we can. Let us maths a J-proposition which no reasonable man, who really desires to relieve the country, can object to. That is my object, and with that single «abject have I prepared this bill. And now, sir, Iwill say a word to the gentlemen who have constitutional -scruples about all banks. They find a Bank actually existing. They find that this Bank, or another like it, has existed through more than three-~fourths pot‘ the whole period of our Gotvernment. They find Congress to have asserted the constitutional power to establish a bank, over and over again; they find all the judicial tribunals to have sanctioned the power, and four-fifths of the State Legislatures, and as great a proportion of the people to have confirmed it. Now, sir, as sensible and candid men, they cannot say that it is a clear case against the power. They must admit there is some reason for suppos- ing the power to exist. The most they can say is, that the Bank stands on a doubtful authority. Now, suppose that to be true. Let it be admitted that the Bank stands on a doubtful title. Does it follow that they must suddenly ‘ destroy it? VVill not they give it time to wind up its affairs, without producing excessive injury to the people’! , ‘Shall it be brought to asudden termination, at whatever cost, at whatever ruin to the public happiness? Besides, sir, if the Bank be unconstitutional, what is that state of things into which the country must fall, when the Bank charter expires? Can any‘ thing be more unconstitutional than that state of things’! Again, sir, I must say, that some of those States, now most opposed to the Bank on constitutional ground, helped to make it. Look to New York; look even to Virginia; these States had much more hand in creating this Bank than Massachusetts. In 1816, there was no majority in the two Houses of Congress of the members from Virginia opposed to the Bank on constitutional grounds. Virginia actually gave much more support to it than Massachusetts, 13 and a Virginia President approved the bill. Maynot a degree of forbearance-,,. then, be justly expected, even though the opinion should now be, that the Bank stands on a doubtful right’! Sir, it is enough to state these. suggestions, with--~ V out arguing them at length, to candidand honorable men. Idonot, on thisoccasion, argue the question of the power of Congress to make- V a bank, but I cannot but recur to the strong view presented of the question the other day by the honorable member from Vermont near me, [Mr. PnnN*r1ss.}.-. I Congress, said he, having, by express grant, the power to regulate commerce-:~ between the several States, if money, if currency, silver or paper, he a thing‘ .- essential to cornmerce,.how can they regulate the commerce without regulat-r» ing the currency of the country’! Andifthe constitution of the United States» does allow the States to create banks, with power to issue paper, and Con» gress still may not control or regulate that paper, either by a bank of its own, or any other just means, how can it be said that Congress has power to regu-t late commerce between the States? These are questions, sir, which I can-— not answer. i _a In the next place,sir, as I have said, there are those who are for a new bank. Sir, gentlemen may well be for a new bank, but they cannot be for that and for nothing else, if they really intend to relieve the country. No new bank cangbe established before 1836. r This we all know. And what are we to do in the mean time’! I am not against a new bank, when the proper time comes to make it, if that shall be the general voice of the country; but it is- idle to talk of a new bank now. These cannot feel the exigency of themo- ment, they do not realize the pressure of the times, who talk of a new bank,. and nothing but a new bank. Let them bring forward a ‘project for a new bank whenever they please; but let us, in the mean time, not suffer the present distress of the country to go on, and to increase, for the want of a more im---- mediate measure. I do not object to take the question of a new. bank into consideration at any time,’ either in this Congress or the next; but I do object to holding out any hope to the country of immediate relief from such a mea-~ sure, because we know it cannot afford such relief. We are in an emergency. Great interests are in danger of being overwhelmed; we need some plank, something to lay hold on, to buoy us up, and keep our heads above water, until more effectual and permanent provision for our safety can be made. ' I will now, sir, state the general substance of the bill which I ask leave to- introduce. - A, r .. , , The first section proposes to continue the present Bank forsix. years, but with this provision, viz: that so much of the present charter as gives th_e‘Bank: an exclusive right shall not be continued, but that Congress may make any‘-' other bank if it see fit, to come into existence at any time after 1836. This is the great feature of the bill. It continues the Bank for a short or period, and takes away the exclusive right. Congress is, thus left at ,perfe:ct: ’ liberty, tornake another bank "whenever itxohooses, ,‘When.~ the present~agiita— tion shall have subsided, when a day of calm consideration comes, and the people have had time for deliberation, then Congress, mayimake a permanent: provision, satisfactory to itself and tothe country. Can any thing be more- reasonable than this’! Can the bitterest enemy of the present Bank refuse tcs give it time to wind up its affairs without distress to the people’! Can the most ardent advocate of a new bank. refuse, meantime, to allow the country to relieve itself, by the use of thefpresent, until anew one shall be established’? . Sir, I am not dealing in plausibilities only. I mean to leave thejwhole question, between this Bank and a new one, fairly open. I mean to give to neither any manner of advantage. ' If Congress establish a new bank, it may 14: easily go into operation while the present is gradually retiring from operation, -and the business of the country will feel no violent shock. " I mean to give the «present Bank not claim to a renewal; but, on the con-» trary, the only new power conferred. on it byithis bill‘ isa power to enable it :to wind up its concerns. I As to the time, I think six years not too long.‘ If we were now certain that a new bank would come into existence in‘1836, I think it would be con- venient, for all parties, that this Bank should have six years to run. The new bank would hardly get into full operation under a year or two, and time» is absolutely necessary to enable this Bank gradually to collect its debts. A hastetted collection must distress the people. .With anexisting debt of fifty- tfive millions, and pressedandr solicited, on I- all sides, still further to extend its loans, in order to relieve the country, all must see that the affairs of the Bank cannot be closed without intolerable pressure on the community, unless time be given for that purpose. But, if six ‘years he thought too long, I will consent to five, or to four. My own opinion is, that six years is not too long. i t r ‘ l W S‘ the 1st of July, shall be deposited in the Bank and its branches as hereto-~ fore, subject, however, at any time after this act shall be accepted,‘ to be retnovedby order of ~C»ongress. If Congress‘ shall establish a‘ new bank, they will of courses remove the deposites into it. Thejefi'ect of this provi- vision will be to give to Congress, at all times, what rightfully belongs to thorn---a full control over the public purse. It separates that purse from the sword, and re--establishes the just authority of the Legislature. ‘ Then comes the section by which the Bank is to pay $200,000 at year, for each of thersix years, as compensation for the benefits of this continuance of its charter- This provision is adopted from the bill of 1832. For one, I should have been willing that a fixed per centage should have been paid, instead of this bonus, to be divided among the States, according to numbers; but others objected to this, and I have sought to avoid all new causes of difierence. , ‘ " t ‘ The next section authorizes Congress to restrain the Bank from issuing notes of less denomination than twenty dollars, if it shall see fit" so todo, any time. after Mai~ch,»18-36. This, too, is borrowed from the hill of 1832, and its object was fully discussed on that occasion. That object is to get rid of the circulation of all notes under five dollars, and, by. so doing, to extend the specie basis of our circulation. When the States shalldirect their own banltstto ‘issue no notes less than five dollars, then it is proposed that Con- The second section provides, that the public moneys, becoming due after. gress shall direct the Bank of the United States to issue no notes below, twenty dollars. The state of our currency will then be, as I explained the _ «other day, that, up to five dollars, the currency will be silver and gold; above five dollars, ittmay be silver and gold and notes of Statebanks; and above twenty dollars, silver and gold and notes of State banks and notes of the Bank of the United States.‘ This greater use of silverand ‘gold, for cornmon purposes, and small‘ payments, I have thought to be a desirable object, as I have often beforie said. i The next section looks to the winding up of the tafiairs of the Bank; and I it provides that, at any time within-the last three" years‘ of its -continuance, its directors may divide, among the stockholders, any portion of the capital which they mEly'hE1V'£§‘Wltl1ClfE1Wl1'fPOm active operation. The remaining se7c-‘-- ’ tions are only such as are ‘formal and nece’ssary;‘ one continues the acts of Congress connected Wltllwtho-Ba‘ntk, such as ‘ those providing for" forging its 15:. notes? nndthe other requires the acceptance of this bill bythe, Bank, in‘ ordet‘ to give it validityand -effect. Such, Mr. President, are the provisions of this bill. They are fevv’and-‘ ; simple. I I r 7 1. The Bank is to be continued forisixt-y»ears. » 2. The deposites are to berestored after the 1st of July. , 3. Congress is to be at perfect liberty to create’ any new bank, at any time after March, 1836. “ 4. 'I‘he Directors, ‘in order to wind up their concerns, may, three years before the six years expire, begin to divide the capital among the stockholders. Mr. President, this is the measure which I propose; and it is my settled belief that, if we cannot carry this, we can carry nothing. I have thus, sir, stated my opinions, and discharged my duty. I see the t country laboring, and struggling, and panting under an enormous political evil.. I ‘propose a remedy which I am sure will producerelief, if it be adopt- ed, and which seems to me most likely to obtain support. And now, sir, I put it to every member of Congress, how he can resist this measure, unless by; proposing another and a better. VV ho, among the agents and servants of thepeople assembled in these Houses, is prepared, in the present distressed state of the country, to say, that he will oppose every thing, and propose nothing’! i For one, sir, I can only say, that I have been driven to this pro- position by an irresistible impulse of obligation to the country. If I had been suddenly called to my great reckoning in another world, I should have felt that one duty was left unattempted, if I had had no measure to recommend, no expedient to propose, no hope to hold out to this suffering community. As to the success of this bill, sir, or any other, I have only to repeat what v I have so often said, that every thing rests with the people tltemselves. In the distracted state of the public councils, any measure of ‘relief canvonly be obtained by the decisive demand-of the public will. I I By an exercise of executive power, which I believe to be illegal, and which all must see to have been injurious, by an unrelenting adherence to the measure which has thus been adopted, in spite of all consequences,'and by the force of those motives which influence mento support the measure, though. they