REMARKS 
 
 OF THE 
 
 HON. JOHN C. CALHOUN, 
 
 DELIVERED IN THE 
 SENATE OF THE UNITED STATES, January, 13, 1834, 
 ON THE SUBJECT OF THE 
 
 REMOVAL OF THE DEPOSITES 
 
 \ 
 
 FROM THE 
 
 BANK OF THE U. STATES. 
 
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SPEECH OF MR. CALHOUN. 
 
 IN SENATE.—Monpay, January 13, 1834. 
 
 The Special Order now came up, The ques; utterly inconsistent with the first, 
 
 and equal, 
 
 ion being on Mr. Cray’s resolutions m regard’ ly untenable; and yet, as broad as his assump- 
 
 o the remoyal of the Public Deposites— 
 
 Mr. CALHOUN then rose. and said. that the 
 tatement of this case might be given ma very 
 sw words, The 16th section of the act corpora 
 mg the bank, provides that wherever there is a 
 ank or branch of the U. States Bank, the pub- 
 € moneys should be deposited therem, unless 
 therwise ordered by the Secretary ot the Trea- 
 ary, and that, in that case, he should report to 
 ‘ongress, if in session, immediatety; and ‘f not, 
 tthe commencement of the next session.. The 
 ecretary, acting under the provision of this sec 
 
 on, has ordered the deposites to be withheld | 
 
 om the bank, and has reported his reasons, in 
 snformity with the provisions of the section. 
 he Senate is now called’ upon to consider 
 ig reasons, in order to determine whether 
 ie Secretary is justified or not. 
 ied them with care and deliberation wnhout the 
 ightest bias, as far as I am conscious, per- 
 mal or political, TI have but a slight acquain- 
 nce with the Secretary, and tha ttle is not 
 favorable to him. I stand wholly disconnected 
 ith the’ two great parties now contending for 
 cendancy. My political connexions ave with that 
 aall and denounced party which has voluntarily 
 holly retired from the party stnfes of the day, 
 ith a view of saving, if possible, the liberty 
 \d-the Constitution of the country, im this great 
 isis of our affairs. 
 
 Ihave exam- 
 
 Having maturely considered, with these im- 
 rtial feelings, the reasons of the Secretary, I 
 i constrained to say, that he has entirely failed 
 make out his justification. At the very com 
 nee emoent he has placed His right to remove th 
 205 ‘ites on an assumption resting on a mi<con 
 rt 1 of the case. In the progress of his argu- 
 
 ¢ has entirely abandoned the first, and as- 
 
 sa “new _and greatly enlarged ground, 
 
 te ; Pe 
 
 tions are, there is an important payt of the 
 transaction: which he does not attempt to vin- 
 dicate, and to which he has not even alluded. i 
 shall, said Mr. Catnoux, now proceed without 
 further remark to make good these asfrtions. 
 The Secretany, at the commencement of his 
 argument, assumes the position tht, in the abe 
 
 sence of all legal provision, he, as the head of 
 
 the financial department, bac the right, in virtue 
 of his office, to designate, the agent. and place 
 for the safe keeping’ of the publie deposites. He 
 then contends that the 16th section does not re= 
 strict his power, which stands, he says, om 
 the. same ground thatit had before the passing of 
 the act incorporating the bank. It is unnecessary 
 to inquire into the correctness of the position as- 
 sumed by the Secretary; bui, if it were, it would 
 not be difficult to show that whenan agent, with 
 general powers, assumes, in the execution of his 
 
 agency, x power not delegated, the assumption 
 Bency, #oP ated, p 
 
 restson the necess ty of the case; and that ne 
 power in such case, can be lawfully exercised, 
 which was not n necessary to effect the ob- 
 ject intended. Nor would it be difficult to show 
 
 that, in this case, the power assumed by the Sen if 
 
 cretary would belong, not to him, but to the ‘Trea- 
 
 surer, who, under ay act organizing the. Treas : 
 ? b) 
 
 sury Departrzent, is expressly charged with the 
 safe keeping of the public funds, for which he is 
 responsible under bond, in heavy penalties But, 
 as strongly and directly as these considerations 
 bear on the question of the power of the Secre- 
 tary, I do not think it necessary to pursue 
 them, for tie plain reason that the Secretary has 
 entirely mistaken the case. It is nota case, ashe 
 
 upposes, where there is 10 legal provision in re- 
 lation to the safe keeping of the public funds, bu 
 one of precisely the opposite character. The 
 
 16th section expressly provides that the deposites 
 
 shall be made in the bank and its branches, and 
 
 wa «4 
 
\ 
 it 
 
 e lary, on his part, should abuse 
 
 4 SPEECH OF MR . CALHOUN. 
 
 z 
 
 of eaurse it is perfectly clear that all powers 
 which. the Secretary has derived frouy the gene- 
 yal and inherent powers of his office, in the ab- 
 sence ofsuch provision, are wholly inapplicable to 
 this vase. Nor is it less clear, that if the section 
 had terminated with the provision directing the 
 deposites to be made in the bank, the Secretary 
 would have had no more control over the 
 subject, than myself, or any other Senator; and it 
 follows, of course, that he must derive his power, 
 not from any general reasons connected with the 
 nature of his office, but from some express pro- 
 vision contained in the section, or some other part 
 efthe act. It has not been attempted to be shown, 
 that there is any such provision in any other 
 section or part of the act. The only control, 
 then, which the Secretary can rightfully claim 
 ever the deposites, ig contained in the provision 
 which directg thatthe deposites shall be made in 
 the bank, unless otherwise ordered bv the Secre- 
 tary of the Treasury; which brings the wuole 
 question, in reference to the dep sites, to the 
 extent of the power which Congress intended to 
 eonfer upon the Secretary, in these few words— 
 4anless otherwise ordered.” 
 
 In. ascertaining the intention of Congress, 
 ilay it down as a rule, which I suppose will 
 not be controverted, that all political powers un- 
 der our free institutions are trust powers, and not 
 vights, liberties or immunities, belonging  per- 
 sonally to the officer. Lalso lay it down asa 
 zule, not less incontrovertible, that trust powers 
 are necessarily Lmited (unless there be some ex- 
 Press provision to the contrary,) to the subject mat- 
 ser and object of the trust. This brings us to the 
 question—what is the subject and-object of the 
 trust, m this case. The whole section relates to 
 ¢eposites—to the safe and faithful keeping of the 
 public funds. With this view they are directed 
 % be made in the bank, With the same view, 
 «nd in order to increase the security, power was 
 conferred on the Secretary. to withhold the depo- 
 sites; and, with the same view, he is directed to 
 report his reasons, for the removal, to Congress. 
 All have one common object-—the security of the 
 public funds. To this point the whole section 
 eonverges. The language of Congress, fairly un 
 derstood, is—we have selected the bank because 
 we contide in it as a safé and faithful agent to 
 
 keep the public money; but. to prevent the abuse 
 
 ef so important a trust, we invest the Secretary 
 with power to remove the depasites, with a view 
 to their increased security. And lest the Se 
 
 © 30 important a 
 
  & 
 
 ‘ ¢ 
 ——_— bh 
 
 more faithful hands, 
 ‘not.a man who hears me, who-will not admit that | 
 ‘the public moneys are now less safe than they | 
 
 than in the place of deposite designated by law. 
 
 cre- | I 
 ‘limited by the subject and the object of the trust, 
 
 trust--and in order still further to increase that: 
 
 security, we direct, in case of removal, that he 
 It is obvious, under this: | 
 
 shallreport his reasons. 
 
 view of the subject, that the Seertary has no 
 
 view to their increased security. That he has nv 
 
 ‘right to act in relation to the deposites but with a. | 
 
 right to order them:to.be withheld from the bank so» | 
 
 long as the funds are umsaféety, and'the bank has: 
 faithfully performed the duties imposed in rela-- 
 tion to them ; and not even then, unless the depo- 
 sites can be placed in safer and more faithful 
 hands. That such was the opinion of the Execu- 
 tive, in the first instance, we have demonstrative 
 proof, in the message of the President to Congress 
 at the close of the last session, which placed the 
 
 subject of the removal of the deposites exclusive- 
 
 ly on the: question of their safety; and that such 
 
 was also the opinion of the H. of Representatives. | 
 
 then, we have equally conclusive proof, from the | 
 
 vote of that body, that the public funds in. the 
 
 | 
 
 bank were safe, which was understood,, at that 
 
 time,on.a'l sides, by friends and foes, as deciding | 
 the question of the removal of ‘the deposites, — it 
 The extent nok the power mitendad to be Gop 
 
 can scarcely be: necessary. to argue this point. 
 It is not even pretended that the public de- 
 posites were in danger, or that the Bank had_ 
 not faithfully performed all the duties imposed — 
 on it in relation te.thems ner that the Secre- | 
 tary hadplaced’ the money in a safer or in 
 
 So.far otherwise, there is 
 
 were in the Bank of the United States. . And t 
 will venture to assert, that not a capitalist can _ 
 
 be found who would not ask a considerably higher | 
 
 If these views are correct, and I hold them, to, be 
 unquestionable, the question is decided. The: 
 Secretary has no right to withhold the deposites: 
 from the Bank.. There has. been, and can be, 
 but one argument alvanced in favour of his rights 
 which has even the appearance of being tenable; 
 that the power to withhold is given in general 
 terms, and without qualification, “ unless the See- 
 retary otherwise direct.” ‘Those who resort to 
 this argument, must assume the’ position—that 
 the letter ought to prevail over the clear and ma- 
 nifest mtention of the act.’ They must regard 
 the power of the Secretary, not as a trust power) 
 
 per centage to insure them in their presenty,. 1 
 
 4 
 
SPEECH OF MR. CALHOUN. oe 
 
 ‘but as a chartered right, to be ued according to’ the idea that the safe and faithful keeping of the 
 public funds had any necessary connexion with wt 
 his removal of the deposites; his power to do 
 which he places on the broad and unlimited 
 ground, that he had a right to make such dispo- 
 sition of them as the public interest, or the con- 
 venience of the people might require. I have said 
 that the transition of the Secretary was as obscure 
 as it was rapid; but obscure as it is, he has said 
 
 ‘his discretion and pleasure. There is a radical 
 ~ defect in our mode of construing political pow — 
 ers, of which this and many other instances afford 
 striking examples; but I will give the Secretary 
 his choice; either the intention or the letter must 
 prevail; he may select either, but cannot be per- 
 mitted to take one or thé other as may suit his 
 purpose. If ms chooses the former, he has tran- 
 scended his | powers, aed have clearly demon- 
 strated. If he selects the fatter, he is equally 
 condemned, as he has clearly exercised ‘power 
 not comprehended in the'letter of his authority. 
 
 _ He has not coafined himself simply to withhold- 
 Mad the public moneys from t the Bank of the U. 
 States, but he has ordered them to be deposited 
 in other Banks, though there is not a word in 
 ~ the section to justify i it. e f do not intend to argue 
 "the question, whether he had a right to order the 
 funds, withheld from the United States Bank to 
 be placed i in the State Banks which he has select- 
 ed; t i ask, how has | he acquired that right? 
 4 it rests s wholly on construction—on the supposed 
 » intention of the legislature, which, when it gives 
 
 a power, intends to give all the means necessary 
 to render it available. But, as clear as this pria- 
 ciple of construction is, it is not more clear than’ 
 
 t which would limit the right of the Secretary 
 
 _ ‘to the question of the safe av 1 faithful keeping 
 of the public funds; and Ica. t admit that the 
 " Seeretary shall be permitted to1 «rt to the letter 
 
 enough to enable us to perceive the process by 
 which he has reached so extraordinary a positions 
 and we may safely affirm, that his arguments are 
 not less extraordinary than the conclusion at 
 which he arrives. His first proposition, which, a 
 however, he has not ventured to lay down ex- 
 pressly, is. that Congress has an unlimited cone 
 trol over the deposites, and ‘that it may dispose . 
 of them in whatever manner it may please, im 4 
 order to promote the general welfare and conve-_ 
 nience of the pecpie. He next asserts that Con- 
 gress has parted with this power, under the six- 
 teenth section, which directs the deposites ‘to ‘be 
 made in the Bank of the United States, and thea 
 concludes with affirming that it has invested the © 
 Secretary of the Treasury with it, for reasons 
 which he professes’ to be unable to uaderstand. 
 
 It cannot be necessary, before so enlightened 
 a body, that I should undertake to refite-an ar- 
 gument so utterly untrue in premises and con- 
 clusion—to show that Congress never possessed 
 the power which the Secretary claims for it— * 
 or to construction, as may best b. culated to 
 enlarge his power, when the right ’ struction 
 
 that it is a power, from its very nature, incapable 
 of such enlargement, being limited solely to the 
 is denied to those who would limit his power by 
 the clear and obvious intention of Congress. 
 
 safe keeping of the public funds—tha if itex- 
 isted, it would be susceptible of the most danger- 
 
 I might here, said Mr. Catuoun, rest'the ques-| ous abuses—that Congress might make the wild- 
 tion of the power of the Secretary over the de- 
 
 posites, without adding another werd. I have 
 
 est and most dangerous association the depository 
 
 ‘of the public funds—might ‘place them in the 
 
 placed it on grounds from which no ingenuity, | hands of the fanatics and the madmen of the 
 however great, or subtlety, however refined, can} North, who are waging war against the domes- 
 remove it; but such is the magnitude of the case, | tic’ institutions of the South, under the plea of : 7 
 | sand such my desire to give- the reasons of the | promoting the general welfare. But admitting 
 Secretary the fullest consideration, that I shall] that Congress possessed the power which the 
 ollow him through the remainder of his reasons. Secretary attributes to it, by what process of rea- 
 That the Secretary was conscious that the | soning can he show that it has parted with this 
 first position which he assumed, and which Ij unlimited power, simply by directing the public 
 have considered, was untenable, we have} moneys to be deposited in the Bank of the United 
 ample proof in the precipitancy with which} States? or, if it has parted with the power, by 
 | he retreated frem it. We had searcely laid} what extraordinary process has it been transfer- 
 it down, when, without illustration er argu-| red to the Secretary of the Treasury, by those 
 , ment, he passed witha rapid transition, and I|few and simple words, “unless he shall other- 
 | ‘must-say a transition as obscurejas, rapid, to an- wise direct ?” In support of this extraordin ve 
 -ather position wholly inconsistent with the first; | argument, the Secretary has offered nv ‘a single - 
 
 ~ 
 
= iD 
 
 SPKECH OF MR. CALHOUN. 
 
 blance of reason, but one, which L shall now pro 
 geed to notice. 
 He asserts, and asserts truly, that.the ban) 
 harter is a contract between the Government, or 
 tather the people of the U.S. and the bank,and 
 “heu ¢ .sumes that it constitutes him a common 
 agent or trustee, to superintend the execution of 
 the stipulations contained in that portion of the 
 contract comprehended in the sixteenth section. 
 Let us now, taking these assumptions t to be true, 
 ascertain what those stipulations are, the super- 
 imtendence of the execution of which, | as he af- 
 firms, are jointly confided by the parties to the 
 Secretary, The Government stipulated, on its 
 part, that the public money should be deposited 
 in the Bank of the U. S.—a great and valuable 
 privilege, on which the successful operation of the 
 institution mainly depends. 
 part, stipulated that the funds should be safely 
 kept—that the duties imposed in relation to them 
 should be faithfully discharged, and that for this, 
 with other privileges, it would pay to the Govern- 
 ment the sum of one million five hundred thou- 
 sand dollars. These are the stipulations, the ex- 
 ecution of which, according to the Secretary’s as- 
 #umption, he has been appointed as joint agent or 
 trustee, to superintend, and from which he would 
 
 assume the extraordinary power which he claims 
 over the deposites to dispose of them in such 
 manner as he may think the public interest or the 
 convenience of the people may require. 
 
 Is it not obvious that the whole extent of power 
 eonf.:red upon him, admitting his assumption to 
 be true, is to withhold the deposites in case that 
 the bank should violate its stipulations in relation 
 fo them on one side, and on the other to prevent 
 the Government from withholding the deposites, 
 to long as the bank faithfully performed its part 
 ef the contract, This is the full extent of. his 
 power. According to his own showing, nota 
 particle more can be added. But there is another 
 » Aspect in which the position in which.the Secre- 
 tary has placed himself may be viewed. It offers. 
 for consideration not only a question of the extent 
 ef his power, buta question as to the nature and 
 extent ofduty which has been imposed upon him. 
 #f the position be suchas he has described, there 
 has been confided to hima trust of the most sacred 
 eharacter, accompanied by duties of the most 
 solemn obligation. He stands by the mutual 
 
 onfidence of the parties, vested with the high 
 gadicial power to determine on the infraction or 
 observance of a contract in which government 
 
 __and a large and respectable portion of the citi- 
 
 * 
 
 | Has he protected the bank ‘against the agyressior 
 
 The Bank, on its | 
 
 ry } 
 sens are deeply interested; and, in the executio: 
 of this high power, heis bound,-by honor ani 
 conscience, so to act as to protect each of the par 
 ties in the full enjoyment of their respective por 
 ‘ion of benefit in the contraet, so long as the} 
 faithfully observeit. Alow has.the Secretary per 
 formed these solemn duties, which, according t¢ 
 his representation, have been imposed upon him. 
 
 of the > government, or the government against the 
 uafalthful conduct of the bank in relation to thi 
 deposites ? Or has he, forgetting his sacred ob 
 ligations, disregarded the interests, s of hoth—on 
 one side, divesting the bank of the deposites, anc 
 on the other, defeating the governmentin the in 
 tended security of the public funds, by seizing or 
 them as the property of the Exccutive, to be 
 cK isposed at pleasure, to favorite and pattizan 
 ‘banks. 
 
 But I shall relieve the Seeretary from this awl 
 ward and disreputable position ia which his 
 own argumen’s have placed him. He is not the 
 mutual trustee, as he has represented, of the gov: 
 ernment. and the bank; but simply the agent o| 
 the former. vested under the contract, with power 
 to withhold the deposites with a view,as has been 
 stated, to their additional security—to their safe 
 keeping : and if he had but for a moment reflect: 
 ed on the fact, that, he was directed to report his 
 reasons to Congress only, and not also to the 
 bank, for, withholding the deposites, he could 
 scarcely have failed to perceive that he was sim~ 
 ply the agent of one of the parties, and not, ag) 
 he supposes, a jointagent of both. 
 
 The Secretary having established, as he sup- 
 poses, his right to dispose of the deposites, as in 
 his opinion the general interest and convenience, 
 of the people might require, proceeds to claimand| 
 
 exercise power “with a boldness commensurate) 
 with the extravagance of the right which he haa 
 assumed. Ee commences with a claim to deter: 
 mine in his official character, that the Bank of the 
 United Siates is unconstitutional—a monopoly— 
 
 “but 8.0 he, acting in his official character, an 
 
 baneful to the welfare of the community. Having 
 determined this point, he comes to the conclusion 
 that the charter of the bank ought not to be req 
 newed, and then assumes that it will not be re 
 newed. Having reached this point he then dcter- 
 mines thatit is his duty to remove the deposites. 
 No one can object that Mr. Taney, as a citizen, 
 in his individual character, should entertain am 
 opinion as to the unconstitutionality of the banks 
 
 = 
 
 —_:6hUm fie * om 7 a sa . me | 
 
e." J .; 4 
 SPEECH OF MR. CALHOUN, adh iy w 
 
 TUF ip ° 
 
 v 
 
 bank, should ptake to determine that the in cee between the President and them un . 
 » stitution was unconstitutional, and that those who | known tothe Constitution and the laws. There zi 
 
 granted the charter, and bestowed upon him his 
 
 power to act under it, had violated the constitu 
 
 tion, isan assumption of power of a nature which 
 I will not undertake to characterize,.as-I wish not 
 
 a, 
 
 to be personal. 
 
 But he is not content with the power simply 
 to determine on the unconstitutionality of the 
 He goes far beyond—he claims to 
 
 eople. In 
 this high character he ronou nes tte ques-|s$ 
 
 bank. 
 oe the organ of the voice of the 
 tion of the renewal of tl 
 was put in issue at the 
 tion, and that the people had determined 
 that it should not be renewed. I do not, said 
 Mr. Caruovs, intend to enter into the argument 
 whether,in point of fact, the renewal of the char- 
 
 = bank charter 
 Kh 
 
 ter was put at issue at the last election. — That 
 
 point was ably and fully discussed by the honor. 
 
 able Senators from Kentucky, (Mr, Cuax,) and 
 
 New Jersey, (Mr. Souraann,) who conclusive 
 
 ‘ly proved that no such question was involved in 
 the issue; and, if it were, the issue comprehended 
 so many others that it was impossible to conjec. 
 
 I look to 
 
 ture on which the election turned. 
 higher objections, I would inquire by what au- 
 thority the Secretary of the Treasury consti- 
 tutes himself the organ of the people of the 
 United States. He has the reputation of being 
 an able lawyer, and ean he be ignorant that so 
 
 long as the’ Constitution of the United States 
 
 exists, the only organs of the people of these 
 
 States, as far as the action of the General Go- 
 vernment is concerned, are the several depart- 
 
 ments,legislative, executive, and judicial; which, 
 acting within the respective limits assigned Lh 
 
 thoritatively, the voice of the people. 
 on the part of the Executive to interpret, as the 
 Secretary has done, the voice of the people, 
 through any other channel, is to shake the foun- 
 dation of our system. Has the Sec’tary forgotten 
 ‘that the Jast step to absolute power is this very 
 assumption which he has claimed for that de 
 partment? I am thus brought, said Mr. C., to 
 allude to the extraordinary manifesto redd by 
 the President to the Cabinet, and which is so 
 intimately connected with the point imme- 
 diately under consideration, That document, 
 though apparently addressed to the Cabinet, 
 was clearly and manifestly intended as an ap- 
 | peal to the péople of the United States, and 
 -epensa new and direct organ of communi- 
 
 '? | ty 
 
 . Presidential elec- 
 
 the Constitution, have a right to pronounce au- 
 A claim 
 
 and all this in the face of an express provision, 
 investing the court wi'h power touching the in- 
 fraction of the charter, directing in what mannet> 
 the trial should be commenced and conducted, 
 
 are buttwochannels known to either, through. 
 which the President can communicate with mii 
 he people—-by messages to the two Houses of — 
 Congress, as expressly provided forin the Con- 
 stitution, or by proclamation, setting forth the 
 interpretations which he places upon a law it 
 has become his official duty to execute. Going 
 beyond, is one amongst the alarming signs of the 
 times which portend the overthrow of the Con- 
 ‘itution and the approach of despotic power. 
 ‘The Secretary, having determined that the 
 Bank was unconstitutional, and that the people 
 had pronounced against the recharter,concludes 
 that Congress had nothing to do with the sub- 
 ject. , With a provident foresight, he perceives 
 the difficulty and embarrasment into which the 
 currency of the country would be thrown on 
 the termination of the Bank charter; to prevent. — 
 which, he proceeds deliberately, witha paremes bs 
 tal care, to supply a new currency, ‘equal to, or” 
 better,” than that which Congress had supplied. 
 With this view, he determines on an immediate , 
 removal of the deposites; he puts them incertain - 
 State institutions, intending to organize them 
 after the fashion of the empire state, into a great 
 safety-fund system;but which, unfortunately, ww ~ — 
 doubtedly for the projectors, ifnot for the coune. 7 
 try, the limited power of the State Banks did not 
 permit him to effect. But a substitute was found — 
 by associating them in certain articles of age ens 
 ment, and appointing an inspector general of alt. 
 this league of banks! and allthis without law», 
 or appropriation! Is it not amazing, that it ne- ; 
 ver occurred to the Secretary, that the subject | 6% 
 of currency belonged exclusively to Congress, 
 and that to assume to regulate it was a plain 
 usurpation of the powers of that departing of. 
 the government? . 
 
 Having thus assumed the power officially to dex - 
 termine on the constitutionality of the Bank; have mf 
 ing erected himself into an organ of the RT 
 voice, and settled the sialon of regulation $4 
 of the currency, he next proceeds to assume f 
 
 Bh ash 4 
 the judicial powers over the Bank. He dec 
 that the Bank has transcended its powers, an@ 
 has therefore forfeited its charter, for which he - 
 inflicts on the institution the severe and exemes 
 plary punishment of withholding the depositesg 
 
 d 
 
 b Fo A ’ of. * 
 
and securing expressly to’ the bank the sacred 
 
 right of trial by jury in finding the facts. All 
 this passed for nothing in the eyes of the Seen 
 
 ; rétary, who was too deeply engrossed in provi- 
 ding for the common welfare to regard either 
 Congress the Court, or the Constitution. The 
 Secretary next proceeds to supervise the 
 general operations of the bank, pronouncing 
 with authority that, at one time, it has discount- 
 ed too freely, and at another, too sparmely, 
 without reflecting that all the control which 
 the government can rightfully exercise over the 
 ©perations of the institution, is through the five 
 directors who represent the Gove:nment in this 
 respect. Directors! Mr, Canmoun exclaim 
 ed, didI say, (alluding to the present.) No 
 spies is their proper designation. 
 
 I cannot, said Mr. C., proceed with the re-| 
 marks which I intended, on the remainder of 
 the Secretary’s reasons; I have not patience to 
 
 dwell on assumptions of power so bold, so law- 
 less, and so unconstitutional; they deserve not 
 the name of argument, and I cannot waste time 
 in treating themas such. There ave, however, 
 two which I cannot pass over, not because they 
 are more extraordinary or audacious than the 
 ethers, but for another quality,which I choose not 
 . so designate. 
 _ The Secretary alleges that the bank has in- 
 _ terfered with the politics of the country. If this 
 be true, it certainly is.a most heinous offence. 
 . The bank is a great public trust, possessing, for 
 : the purpose of discharging the trust, great power 
 and influence, which it could not pervert from 
 the object mtended to that of influencing the 
 polities of the country, without being guilty of 
 =: great political crime. In making these re- 
 marks, EF do not intend to give any counte- 
 nance to the truth of the charge alleged by 
 _ the Secretary, nor to deny to the officers of 
 he bank the right which belongs to them, 
 “in common with every citizen, freely to form 
 political prineiples, and act on them, in their 
 private capacity, without permitting them to 
 influence their official conduct, But it is 
 strange | it did not occur to the Secretary, 
 while he was accusing and punishing the 
 bank on the charge of interfering in the 
 politics of the country, that the Government 
 also was a great trust, vested with pow- 
 ers still more extensive, and influence im 
 measurably greater than that of’ the bank, given 
 
 y a ¥ ih ¥ wg ’ ~ is 
 8 SPEECH OF MR. CALHOUN. “$ 
 
 to enable it to discharge the object for which it 
 was created; and that it has no more right to. per- 
 
 ee 
 
 vertits power and influence into the means of con- 
 trolling the politics of the country, than the bank 
 itself. Can it be unknown to him that the Fourtl: 
 Auditor of the Treasury—(an officer in his ow 
 4epartment,) the man who has made so promi- 
 nent a figure in this transaction, was daily and 
 hourly meddling in politics, and that he is one 
 of the principal political managers of the Admin- 
 Can he be ignorant that the whole 
 power of the Government has been perverted 
 into a great political machine, with a view of 
 corrupting and controlling the country? Can he 
 be ignorant that the avowed and open policy of 
 the Government is to reward political friends, 
 
 istration? 
 
 and punish political enemies? and that, acting 
 
 on this principle, it has driven from office hun- 
 
 dreds of honest and competent officers. for opin- 
 ion’s sake only, and filled their places with devo- 
 ted partizans? Can he be ignorant that the reaf 
 
 offence. ‘he Bank, is not that it has intermed- 
 
 dled in pt: ics, but because it would not inter- _ 
 There is nothing — 
 
 meddle on ti side of power? 
 
 more dignifiea &.n reproof from the lips of inno- — 
 
 eence, or punisleent from the hands of justice; 
 but change the pieture let the guilty reprove, 
 andthe criminal punish, « what more odious, 
 more hateful, can be presentcd to the imagi- 
 nation ? 
 
 The Secretary next tells us, in tue same spirit, 
 that the bank had been wasteful of the public 
 funds. That it has spent some thirty, forty, or 
 fifty thousand dollars—f do not remember the 
 exact amount—(trifles have no weight in the 
 determination of so great a question) in circu- 
 lating essays and speeches in,defence of the 
 institution, of which sum, one-fifth ‘part— 
 soine seven thousand dollars —belonged to the 
 Government. Well, sir, ifthe bank has really 
 
 wasted this amount of the public money, it is a > 
 
 grave charge. It has not a right to waste a 
 single cent; but I must say, in defence of the 
 bank, that, assailed as it was by the Ex- 
 ecutive, it would have been unfaithful to its 
 trust, both to the stockholders and to the pubs 
 lic, had it not resorted to every proper means 
 
 in its power to-defend its conduct, and, among 
 
 others,the free cireulation of able and Jeciciou 
 ‘publications. ' 
 
 But admit that the bank has been. ae of 
 wasting the public funds, to the full extent charg. 
 ed by the Secretary, I would ask if he, the 
 head of the financial department of the Go- 
 vernment, is not under as high and solemn ob- 
 
 ligation to take care of the monied interest 
 
 ¢: 
 
 — ~ 
 
ee. aid 
 
 nT 
 
 all ae 
 
 a 2 ¥ ’ ‘we J ‘ 
 SPEECH OF MR. CALHOUN. © 9 
 
 os 
 
 of the public as the bank itself? I would 
 -ask him, to ianswer me a few simple ques. 
 tions: How has he performed this duty in rela- 
 tion to the interest which the public holds in the 
 bank? Has he been less wasteful than he has 
 charged the ba ik to have been? “Has he not} 
 wasted thousands where the bank, even ac- 
 cording to his own statement, has hundreds? 
 Has he not, by withdrawing the deposites 
 and placing them in the State Bans, where 
 the public receives not a cent of interest, 
 greatly affected the dividends of the Bank 
 of the United States,in which the Government, 
 as a stockholder, is a loser to the amount of | 
 one-fifth of the diminution?—a sum which ij 
 will venture to predict will many fold exceed 
 the entire amount which the bank has expended 
 in its defence. But this is a small, a very small 
 proportion of the public loss, in consequence 
 of the course which the Executive has pursued 
 in relation to the bank, and which has reduced 
 the value of the shares, from 130 to 108—(a 
 Senator near me says) much more. It may 
 be, I am not particular in such things )—and on 
 which the public sustains a corresponding loss 
 on its share of the stock, amounting to seven 
 millions of dollars—a sum more than two hun- 
 dred fold greater than the waste which he has 
 charged upon the bank. Other administra- 
 tions may exceed this in talents, patriotism,and 
 honesty, but certainly in audacity,in effrontery, 
 it stands without a parallel! 
 
 The Secretary has brought forward many and 
 grievous charges against the Bank. I will not 
 condescend to notice them—it is the conduct of 
 the Secretary, and not that of the Bank, which 
 is immediately under examination, and he has no 
 right to drag the conduct of the Bank into the 
 issue, beyond its operations in regard to the de- 
 posites. To that extent I am prepared to ex- 
 amine his allegations against it; but beyond 
 that he has no right—no, not the least—to ar- 
 raign the conduct of the Bank; and [, for one, 
 
 * will not, by noticing his charges beyoalastint 
 point, sanction his authority to call its conduct in 
 question. But let the point in issue be deter- 
 mined, and I, as far as my voice extends, will | 
 give to those who desire it the means of the 
 freest and most unlimited inquiry into its conduct. 
 I am no partizan of the Bank—I am connected 
 with it in no way, by monied or political ties. I 
 might say, with truth, that the Bank owes as 
 much to me as to any other individual in the 
 
 sountry ; and £ might even add that, had it not | strong to abuse and corruption as they cohtend-~ 
 
 \ a wan 
 
 been for my efforts, it would not have been char’ 
 tered. Standing in this relation to the institu 
 tion, a high sense of delicacy—a regard to inde- 
 pendence and character, has restrained me from 
 any connexion with the institution whatever, ex- 
 cept some trifling accommodations, in the way 
 of ordinary business, which were not of the 
 slightest importance either to the Bank or my- 
 self. 
 
 But while I shall not condescend to notice the 
 charges of the Secretary against the Bank, be- 
 yond the extent which I have stated, a sense of 
 duty to the institution, and regard to the part 
 which I took in its creation, compels me to notice 
 ‘two allegations against it which have fallen 
 from another quarter. It is said that the Bank 
 had no agency, or at least eflicient agency, in the 
 restoration of specie payment in 1817, and that 
 it had failed to furnish the country with a uniform * 
 and sound currency, as had been promised at its 
 creation. Both of these allegations I pronounce 
 to be without just foundation. To enter into.a 
 minute examination of them, would carry me too 
 far from the subject, and I must content myself 
 with saying, that having been on the political, 
 stage without interruption, from that day to this 
 —-having been an attentive observer of the ques- 
 tion of the currency throughout the whole period 
 —that the Bank has been an indispensable agent 
 in the restoration of specie payments; that, with= : 
 out it, the restoration could not have.been effect-. 
 ed short of the utter prostration of all the monied 
 institutions of the country, and an entire depre- © 
 ciation of Bank paper; and that it has not only 
 restored specie payment, but has given a currency 
 far more uniform, between the extremes of the: 
 country, than was anticipated or even dream lof 
 at the time of its creation. I will say for myself, 
 that I did not believe, at that time, that the ex- 
 change between the Atlantic and the West 
 would be brought lower than two and a half per © 
 eent.—the estimated expense then, including i ging, 
 surance and loss of time, of transporting specie 
 between the.two points. How much it was belo 
 the anticipated point, I need not state; the whole 
 commercial world knows that it was not a. fourth 
 part at the time of the removal of the depasite 
 
 But to return from this digression. Thou * 
 will not notice the charges of the Secretary i 
 reasons already stated, I will take the liberty of 
 propounding to those who support them en — 
 this floor, a few plain questions. If there be. 
 in banking institutions an inherent tendency so 
 
10 
 
 SPEECH OF MR. CALHOUN. 
 
 Me 
 
 mk 
 
 if, in consequence of this tendency, the bank of | Uaited States, where it is _placed under the pro- 
 
 the United States be guilty of the enormous 
 charges and corruptidns alleged, notwithstand 
 ing its responsibility to the Government and ou: 
 
 control over it, what is to be expected fix m irres- 
 
 ponsible league banks, as ca!led by the Senator 
 from Kentucky, (Mr Cxay,) over which we can 
 have no legal control? If our power of renewing 
 the charter of the Bank of the United States - 
 
 if our right to vacate the charter by scire facias, 
 ‘im case of misconduct--if the influence which the 
 appointment of five Government Directors gives 
 us; and, finally, if he power which we have of ap 
 
 pointing committesto examine into its condition, 
 are not sufficient to hold the institution in check; 
 if, in spite of all these, it has, from the innate cor’ 
 ruption of such institutions, been guilty of the’ 
 enormous abuses and crimes charged against it, 
 
 what may we not expect from the associated 
 banks, the favorites of the Treasury, over the 
 renewal cf whose charter the Government has 
 No power; against which it can issue no scire fa- 
 ias, in whose direction it has not a single indi- 
 idual and into whose conduct Congress can ap- 
 With these checks 
 all withdrawn, what will be the condition of 
 he public fands. ; 
 
 I, said Mr. Catnoun, stated in the outset 
 f my remarks, that, as broad as was the power 
 vhich the Secretary had assumed in relation 
 the deposites, there was a portion of the 
 
 oint no commit‘ee to lank? 
 
 ransaction of a highly important character, to 
 Which he has not alluded, and in«relation to 
 hich he has not even-attempted a justification. 
 1 will now proceed tomake good this assertion to 
 
 | There is a material difference between with- 
 oldinge’ money from going. into the bank, and 
 vithdrawing it after it has’ been placed there. 
 he former is authorized in-the manner which 1 
 ave stated, under the sixteénth section, which di 
 
 2cts, as has been frequently stated, that the 
 | blic money shall be deposited *in the bank, 
 less otherwise ordered by the Secretary of the 
 'reasury. But neither that section, nor any por 
 on of the act i Incorporating the bank, nor, in 
 thy anyother act, gives the Secretary any au- 
 ority, of himself, to withdraw public money de 
 
 Mbsited |in the bank. » There i is, I repeat, a mate: 
 
 | pm deposite and withdrawing it. When paid 
 to the place designated by law as the deposite 
 ithe public money, it passes to the credit of the 
 easurer, and then is in the Treasury of the 
 
 ul difference between withholding public money 
 
 tection of the Constitution itself,and from which, 
 by an express provision of the Consti tution, it 
 car only be wi hdrawa by an appropriation made 
 by law. So careful were the framers of the act 
 of 1816 to leave nothing to implication, that ex- 
 press authority is given*to the: Secretary of the 
 Treasury, in the fifteenth section, to‘transfer the 
 deposites from one plave to another, for the con-. 
 venience of disbursements; but which, bya strange 
 perversion, is now attémpted to be so-construed as 
 to confer on the Secretary the power to withdraw: 
 the money from thedeposite, and to loan it to fa- 
 vorite State banks.-—I express myself too favoras 
 bly, I should say give—(they pay no interest) 
 with a-view tov sustain their credits, or en- 
 large their profits—a power, not only far beyond 
 the Secretary, but which Congress itself could 
 not exercise without a flagrant breach of the Con- 
 stitution. But, it is» said, in answer to these 
 views, that money paid in deposite into the bank, 
 as directed by law, is notin the Treasury. I 
 will not stop, said Mr. C., to reply to such an 
 objection. If it be not in the treasury,where is the 
 Treasury? If it be not money in the Treasury, 
 where is the money annually reported’ to be in 
 the Trcasury? Where the eight or nine millions 
 which, by the annual report of the Secretary, is 
 said to be now in the Treasury? Are we to under 
 stand that none of this money is, in truth, in the 
 Treasury ?--that it is floating about at large, . 
 subject to be disposed of--to be given away, at 
 the will of the Executive, to-favorites and parti- 
 zans? So it would seem; for it appears, by a 
 correspondence between the Treasurer and the 
 Cashier of the bank, derived through the bank, 
 (the Seeretary not deeming it worth while to 
 give the slightest information of the transaction, 
 ag. if a matter of’ course,) that be has drawn out 
 two millions and a quarter of the public money, 
 without appropriation, and distributed it at plea- 
 sure among his favorites! ee 
 
 But it is attempted to vindicate the conduct 
 of the Secretary on the ground of precedent. I 
 will not stop to notice whether the cases cited 
 are in point; nor will I avail myself of the great 
 and striking advantage that I might have on the 
 question of precedent: this case stands alone and 
 distinct from all others. There is none similar to 
 it in magnitude and importance., Pwaive,all that; 
 { place myself on higher grounds—I stand on 
 the immovable principle that, ona qjtestion of 
 law and Constitution, in deliberative. sem ly, 
 
 there is no room—no place for *prees dents, Te 
 hus 
 
 i. hoe re) AK] 
 
SPEECH OF MR. CAT HOUN. Bs Wy 
 
 admit them would be to make the vlolution of 
 to-day the law and Constitution of to-morrow; 
 and to substitute in the place of the written and 
 sacred will uf the pople and the legisluture, th: 
 infraction of those charged with the execution of 
 the law. Such, in my opinion, is the relative 
 force of law and. constitution on one side, as 
 compared with precedents on the other. View- 
 ed in a different light, not in referen:e to the 
 law or constitution, but to the conduct of the of- 
 ficer, | amdisposed to give rather more weight 
 to precedents, when the question relates to an 
 excuse or apology for the officer, in case of 
 infraction. If the infraction be a trivial one, in 
 a case not calculated toexcite attention, an of: 
 ficer might fairly excuse himself on the ground 
 of precedent; butin one like this, of the ut- 
 most magnitude, involving the highest interests 
 and most important princip'es, where the at- 
 tention of the officer must be aroused to a most 
 careful examination, he cannot avail himself of | ¢ 
 the plea”of precedent to excuse -his conduct. — 
 It is a case where false precedents are to -be 
 gorrected and not followed. Anofficer ought to 
 be ashamed in such a case, to attempt to vindi- 
 ¢ate his conduct on acharge cf violating law or 
 constitution by pleacing precedent. ‘fhe prin- 
 ciple in such case 3 is obvious, If the Secretary’s 
 right to withdraw public money from the Trea 
 sury be clear, he has no need ef precedent 
 vindicate him. If not,he ought not, ina case of 
 so much magnitude, to have acted. 
 
 I have not, said Mr. Cannoun, touched a 
 question which has had so prominent a part in 
 the debate, whether the withholding the depo- 
 sites was the act of the Secretary or the Presi- 
 dent. Under myview of the subject, the ques- 
 tion is not of the slightest importance. It is 
 equally unauthorized and illegal, whether done 
 by President or Secretary; but, as the, question 
 has been agitated, and as my views do not en- 
 tirely correspond on this point with: those advo- 
 eating the side which Ido, I deem it due:to 
 frankne-s to express my sentiments, 
 
 Ihave no doubt that the President removed 
 the former Sectetary, and placed the present in 
 his place, expressly with a view to the removal 
 of the deposites, I am equally clear, under all 
 the circumstances of the case, that the Presi- 
 dent’s conduct is wholly indefensible; and, 
 among other objections, t fear he had in view, 
 l,an object eminently dangerous 
 nal --to give an advantage to 
 
 rer ee 2 a 
 
 a power intended asa shield, to prot ct the 
 
 4xecutive against the encroachment of the Le- 
 vislative department—to maintain the presen 
 stat» of things against dangerous or hasty inno- 
 vation, but which, 1 fear, is, in this case, in- 
 tended as a sword, to’ defend the usurpation 0 
 the Executive. I say U fear, for although the 
 circumstance of this case leads to a just appre 
 hensien that such is the intention, | will not ps 
 mit myself to assert that such is the fact —tha' 
 to lawless and unconstitutional an object is con. 
 semplated by the President, till his act shal 
 compel me to believe to the contrary. Bu 
 while I thus severely condemn the conduct 0 
 the President in removing the former Secreta 
 ry and appointing the present, [ must say, tha 
 in my opinion, it is a case of the ebuse and no 
 of the usurpation of power. [cannot doubt tha 
 the President has, under the Constitution, the 
 right of removal from office: nor can I doub 
 that the power of removal, wherever it exists 
 does, from necessity, involve the power © 
 general supervision; nor can L doubt cat 4 
 might be constitutionally exercised in refer ene 
 to the deposites, Reverse the present case— 
 suppose the late Secretary, instead of being 
 against, had been in favor of the removal , ane 
 that the President, instead of for, hac bee 
 against it, deeming the removal not only inet 
 pedient, -but, under circuinstances, illega 
 would any man doubt, that under such circum 
 stances, he had a right to remove his Secreta 
 ry, if it were the only means of preventing th 
 removal of the deposites?. Nay, would it na 
 be his indi-pensable duty to have removed him 
 and, had he not, would not he have been un 
 versally and justly held responsible? ¢ a 
 I have now (said Mr. C.) offered all the) re 
 marks I intended in reference to the deposi 
 question; and, on reviewing the whole grou Y 
 { must say, that the Secretary, in removing th 
 deposites, has clearly, transcended his owe 
 that he has violated the contract betwee n th 
 Bank and the United States; that, in 35 doint 
 he has eneeply acini that eo and on 
 
 nae a in the institution; whee at th 
 same time, he has deeply injured the public, q 
 its character of stockholder; and, finally, thi 
 he has inflicted a deep wound on the publ 
 faith. To this last, I attribute the present ¢ 
 
 barrassment in the currency, which has so in 
 ee re nD ea hetha oreant interests of + 
 
country. The currency ofthe country is the 
 | credit of the country—credit in every shape, 
 - public and private; credit, not only in the 
 shape of paper, but that of faith and confi- 
 | dence between man and man; through the agen- 
 | cy of which, in all its forms, the great and 
 ) mighty exchanges of this commercial country, 
 _ at home and abroad, are effected. To inflict a 
 | wound any where, particularly on the public 
 | faith, is to embarrass all the channels of cur- 
 rency and exchange; and it is to this, and not 
 ) to the withd:awing the few millions of do'lars 
 _ from circulation, that I attribute the present 
 | monied embarrassment. Did I believe to the 
 | contrary—if I thought that any great and per- 
 _manent distress would © itself result from 
 1! winding up in a regular and leyal manner the 
 present or any other Bank of the Unite: States, 
 T would deem it an evidence of the dangerous 
 power of*the institution, and, to that extent, an 
 f argument against its existence; but, .as it is, I 
 )), regard the present embarrassment not as an ar- 
 | Sument against the Bank, but an argument 
 || against the lawless and wanton exercise of pow- 
 ))er on the part of the Executive--an embar- 
 | rassment which is likely to continue long, if the 
 ! deposites be not restored. The Banks which 
 )| have received them, at the expense of the pub- 
 j) } dic faith, and in violation of law, will never be 
 j{ permitted to enjoy their spoils in quiet. No 
 one who regarls the subject in the light in 
 j which I do, can ever give his sanction to any 
 {law intended to protect or carry through the 
 } Present illegal arrangement; on the contrary, 
 ali such must feel bound to w age perpetual war 
 gainst an usurpation of power so. flagrant as 
 | that which controls the present deposites of the 
 ‘| public money. If I standalone, (said Mr.Cat- 
 Hown,) I at least will continue to maintain the 
 contest, so long as I remain in public life. 
 {| As important (said Mr. C. ) as I consider the 
 i! question of the deposites, in all its bearings, 
 {public and private, it is one on the surface—a 
 i Mere pretext to another, and one greatly more 
 
 be taken into consider. ation, to understand cor- 
 ectly all the circumstances attending this ex- 
 traordinary transaction. It is felt and acknowl- 
 
 ‘qtiestion, which has excited the pr ofound 
 a sensation and alarm which pietades the coun 
 ) ry. *. = 4 ‘ 
 
 If we are to believe what we hear from the 
 
 dvocates of the administration, we would be-. 
 
 | 12 SPEECH OF MR. CALHOUN. 
 
 bey ” 
 
 lieve at one time that the real question was, 
 Bank or no Bank; at another, that the question 
 was between the United States Bank and the 
 State Banks; and, finally, that it was a struggle 
 on the part of the administration to guard and 
 defend the rights of the States against the en- 
 croachments of the General Government. The 
 administration the guardians and defenders of 
 the rights. of the States! What shall I call it? 
 audacity or hypocrisy? The authors of the 
 Proclamation the guardians and defenders of 
 the rights of the States! The authors of the 
 War, Message against a member of this. con- 
 federacy—the authors of the “bloody bill” the 
 guardians and defenders of the rights of the 
 States! This a struggle for State rights! No, 
 Sir, State rights are no more. ‘The struggle is 
 over for the present. The bill of the last ses- 
 sion which vested in the Government the right 
 of judging of the extent of its powers, finally 
 and conclusively, and gave it the right of en- 
 forcing its judgments by the sword, destroy- 
 ed all distinction between deleguted and reser- 
 ved rights; concentrated in the Government the 
 entire power of the system, and prostrated the 
 States as poor and helpless corporations at the 
 foot of this sovereignty 
 
 _- Nor is it more true that the real question is - 
 Bank or no Bank. Taking the deposite questi n 
 in the broadest sense; suppose, as it is contended 
 by the friends of the administration, that it in- 
 volves the question of the renewal of the 
 charter, and consequently the existence 
 of the Bank itself, still the banking  sys- 
 tem would stand, almost untouched and unim- 
 paired. Four hundred banks would still remain 
 scattered over this wide republic, and on the 
 ruins of the United States Bank, many would 
 rise to be added to the present list. Under this 
 aspect of the subject, the only possible ques- 
 tion that could be presented for consideration 
 would be, whether the banking system ‘was 
 more safe, more beneficial, or more constitu- 
 
 ol on all sides, that there is another and al. 
 
 tional with or without the U. States Bunk ? i 
 portant, which lies beneath, and which must | 
 
 Pid said Mr. iC, this wasa question of Bank or no 
 Bank—if it involved the existence of the bank- 
 ing system, it w uld indeed be a great question 
 —one of the first magnitude, and, with my 
 present impression, long entertained and daily 
 increasing —I would hesitate—long hesitate,, he- 
 fore I would be found under the banner of the 
 system. Ihave great doubts, if doubts they 
 may be called, as to the soundness and tenden- 
 cv DEthetwhole Ststcuh ian aiden aibesticode atul 
 
t 0 . 
 SS a a ee eS 
 
 ‘ SPEECH OF MR. CALHOUN. 
 
 13 
 
 Lhave great fears that it will be found hostile 
 to liberty and the advance of civilization—fa 
 tally hostile to liberty in our country, where the 
 system exists in its worst and most dangerous 
 form. Of all insitutions affecting the great 
 question of the distribution of wealth—a ques- 
 
 tion least explored and the most important of 
 any inthe whole range of political economy, 
 the banking institution has, if not the greatest, 
 among the greatest influence, and I fear, most 
 pernicious influence on the mode of distribu- 
 tion. Werethe question really before us, I 
 would not shun the responsibility, as great asit 
 might be, of freely and fully offering my senti- 
 ments on these deeply important points; but, 
 asit is, [must content myself with the few re 
 marks which I have thrown out. 
 
 What, then, is the real question which now 
 agitates the country? I answer, it is a strug.le 
 between the Executive and Legislative depart 
 ments of the Government—a struggle, not in 
 relation to the exis'ence of the bank, but which, 
 Congress or the President, should have the 
 power .to create a bank, and the conse 
 quent control over the currency of the 
 country. This is the real question. Let us 
 not deceive ourselves—this league—this as- 
 sociation of banks—created by the Execu- 
 tive; bound together by its influence; united 
 in common articles of association ; vivified and 
 sustained by receiving the deposites of the 
 public money, and haying their notes converted, 
 by being received every where by the Trea- 
 airy, into the commen currency of the country, 
 is, to all intents and purposes, a bank of the 
 United States—the Executive bank of the U. 
 States, as distinguished from that of Congress. 
 Howeyer it might fail to perform satisfactorily 
 the useful functions of the Bank of the U. States, 
 as incorporated by law, it would outstrip it— 
 far outstrip it—in a'l its dangerous qualities, in 
 extending the power, the influence, and the 
 sorruption of the Government. It was impos. 
 sible to conceive any institution more admirably 
 calculated to advance these objects. 
 the selected banks, but the whole banking 
 institutions of the country, and with it the entire 
 money power, for the purpose of speculation, 
 peculation, and corruption, would be placed 
 under the control of the Executive. A system|a 
 af menaces and promises will be established - of 
 menace to the banks in possession of the depo 
 sites, but which might not be entirely subser- 
 vient to Executive views; and of promise of 
 
 re? 
 
 ¢ 
 a Sh ee 
 
 Not only | 
 
 future favors to those who may not as yet enjoy 
 its favors. Between the two, tie banks would 
 be left without influence, honor, or honesty; 
 and a system of speculation and stock-jobbing 
 would commence, unequalled in the annals of 
 our country. I fear they have already com- 
 menced--I fcar the means which have been put 
 into the hands of the minions of power by the 
 removal of the deposites, and placing them in 
 the vaults of dependant banks, have extended 
 their cupidity to the public lands, particularly 
 in the south-west, and that to this we must 
 attribute the recent phenomena in that quarters 
 immense and valuable tracts of land sold at 
 short notice-—sales fraudulently postponed to 
 aid the speculators, with which, if [ am not 
 misinformed, a name not. unknown to this body 
 (Gwin) has performed a prominent part. But 
 I leave this to my vigilant and able friend from 
 Mississippi, (Mr. Poinpexrer,) at the head of 
 the Committee on Public Lands, who, I doubt 
 not, will see justice done to the public. As to 
 stock-jobbing, this new arrangement will open 
 a field which Rothschild himself may envy. It 
 has been found hard work- -very hard, no doubt 
 ~ by the jobbers in stock, who have been en- 
 gaged in attempts to raise or depress the price 
 of U.S. Bank stock; but no work will be more 
 easy than to raise or depress the price of the 
 stock of the selected banks, at the pleasure of 
 the Executive. Nothing morewill be required 
 than to give or withhold deposites—to draw, or. 
 abstain from drawing warrants—to pamper them 
 at one time, and starve them at another.— 
 Those who would be in the secret, and. who, 
 would know when to buy and when to sell, 
 would have the means of realizing, by deale 
 ing in the stocks, whatever fortune they might, 
 please. a 
 So long as. the question is one between : 
 Bank of the United States incorporated by Con. 
 gress and that system of banks which has been 
 created by the will of the Executive, it isa 
 insult to the understanding to discourse on thd 
 pernicious tendency and constitutionality of the 
 Bank of the United States. To bring up th 
 ere? Sanly and eae: you must ‘gC 
 
14: SPEECH OF MR. CALHOUN. 
 
 ing them in your dues, or paying them away to | Executive upon the Legislative, he dates the 
 creditors, you have a right to create a bank. {commencement of the revolution but sixty days 
 Whatever the Government receives and treats previous to the meeting of the present Con- 
 gvess. I, said Mr, C., take a wider range, and 
 date it from an earlier period. Besides the dis- 
 tribution among the Departments of the Gene- 
 ral Government, there belongs to our system 
 another, and a far more important division or 
 
 as money; is money; and, if it be money, then 
 they have the right, under the Constitution, to 
 egulate it. Nay, they are bound: by a high 
 obligation to adopt the most efficiert means, ac: 
 cording to the nature of that which they have 
 pecognized as money, to give it the utmost sta- 
 bility and uniformity of value. And if it be in 
 e shape of bank notes, the most efficient 
 means of giving those qualities, is a Bank of the 
 U. States, incorporated by Congress. Unless 
 you give the highest practical uniformity to the 
 ralue of bank notes—so long 9s you receive 
 hem in your dues, and treat them as money, . 
 ou violate that provision of the Constitution 
 hich provides that taxation shall be uniform 
 ‘hroughout the United States. There is no 
 her alternative, I repeat, you must divorce 
 ‘2c Government entirely from the banking sys 
 2m, or, if not, you are bound to incorporate a 
 ank asthe only safe and efficient means of 
 living stability and uniform'ty to the currency, 
 nd should the deposites not be restored, and 
 he present illegal and unconstitutional connex- 
 im between the Executive and the league of 
 anks continue, [ shall feel it my duty, ifno one 
 |se moves, to introduce a measure to prohibit 
 jovernment from receiving or touching bank 
 otes in any shape whatever, as the only means 
 ft of giving safety and stability to the curren- 
 +, and saving the country from corruption and 
 lin. 
 Viewing the question in its true light, as a 
 \buggle on the part of the Executive to scize 
 the power of Congress, ani to ‘unite in the 
 esident the power of ‘the’ sword and the 
 \ rse, the Senator from Kentucky (Mr. Cray) 
 ‘d, truly, and let me add, philosophically, that 
 sare in the midst ofa revolution. Yes,the very 
 1 istence of free governments rests on the 
 ! per distribution und organization of power; 
 )) 1 to destroy this distribution, and thereby 
 }) neentrate power in any one of the depart- 
 mts, is to effect a revolution; but, while I 
 pee with the Senator, that we are in 
 ; midst of revolution, IL cannot agree with 
 as to the time at which it commenced, 
 | phe point to which it has progressed. Look- 
 ito the distribution of the powers of the Ge- 
 ul Government—into the Legislative, Exe- 
 e, and Judicial Departments—and con- 
 g his views to the encroachment of the 
 
 and the General Government—the reserved and 
 delegated rights,.the maintenance of which is 
 still more essential to the preservation of our 
 institutions, Taking this wide review of our 
 political system, the revolution in the midst of 
 
 which we are, began, not as supposed by the 
 Seaator from Kentucky, shortly before the com- 
 mencement of the present session, but many 
 yearsago, with the commencement of the re- 
 strictive system, an! terminated its first stage 
 with the passage of the force bill of the last ses: 
 sion; Which absorbed all the rights and sove- 
 reignty of the States, and consolidated them 
 in this Government. Whilst this process was 
 going on, of absorbing the reserved powers of 
 the States, on the part of the General Govern- 
 ment, another commenced, of concentra'ing, in 
 the Executive, the powers of the other two, the 
 Legislative and Judicial Departments of the 
 Government, which constitutes the second 
 stage of the revolution, in which we have ade 
 vanced almost to the termination. 
 
 The Senator from Kentucky, in connexion 
 with this part of his argument, read a striking 
 passage from one of the most pleasing and in- 
 
 self, sword in hand, into the treasury of the 
 Roman Commonwealth. We are at the same 
 stage of our political revolution, and the analo- 
 gy between the two cases is complete, varied 
 only by the character of the actors and the cir- 
 cumstances of the times. That wasa case of 
 an intrepid and bold warrior, as an open plun-— 
 derer, seizing forcibly the treasury of the coune 
 
 5 
 
 our case are of a different character —artful, 
 cumning, and corrupt politicians, and not fears 
 less warriors. They have entered the-treasu- 
 ry; not sword in hand, as public plunder. 
 ers, but with the false keys of sophistry, as pil 
 ferers, under, the silence of midnight. The 
 motive and object are the same, varied in like 
 
 7 
 
 distribution of power, that between the States — 
 
 structive writers in any language, (Plu: ~ 
 tarch,) the description of Czsar forcing him: — 
 
 try, which, in that Republic, as well as ours, — 
 was confided to the custody of the legislative | 
 department of the Government. The actors in 
 
 fe 
 
 A 
 
SPEECH OF MR. CALHOUN. 15 
 
 manner, by character and circumstances. “With|tucky, said Mr, C., that, if the present strug- 
 money I will get men, and with men, money,” | gle against Executive usurpation be successful, 
 ‘was the maxim of the Roman plunderer. Withhit will be owing to the success, with which we, 
 money we will get partizans, with partizans| the lifors.21 am not afraid of the word-- 
 votes, and with votes money, is the maxim of|imaintained the rights of the States against the 
 our public pilferers With menand money, Ce-jencroachment of the General Government at 
 sar struck down Roman liberty, atthe fatal bat-| the last sessi n. 
 tle of Phillippi, never to rise again; from which} ~A very few words will place this point be- 
 isastrous hour, all the powers ofthe Roman|yond controversy. To the interposition of the 
 Republic were consolidated in the person of|State of South Carolina, we are. indebted for 
 Cesar, and perpetuated in his line, © With mo-} the adjustment of the tariff question; without it, 
 ney and corrupt partizans, a great effort is now jall the influence of the Senator from Kentucky, 
 making to choke antl stifle the voice ef Amer-|/over the manufacturing interest, great as it 
 ican liberty, through all its natural organs; by|deservedly is, would have been wholly 
 corrupting the piess; by overawing the other|incompetent, if he haa even thought proper 
 departments; and, finally, by setting up a new/to exert it, to adjust the quesion, The 
 and polluted organ, composed of office hold-) attempt would have prostrated. hum, and those 
 ers and corrupt partizans, under the name of ajwho acted with him, a:d not. the system, 
 national convention, which, counterfeiting the|It was the separate action of the State that 
 yoice of the people, will, if not resisted, in siete gave him the place to stand upon; created 
 name dictate the succe sion; when the deed/the necessity for the adjus ment, and dis- 
 will be done—the revolution be completed—}posed the minds of allo compromise Now, I 
 and all the powers of our Republic, in like! put the solemn question to all wno hear me, if 
 manner, be consolidated in the President, and | the tariff had not then veen adjusted—if it was _ 
 perpetuated by his dictation. now an open question -wnat nope of successful. 
 The Senator from Kentucky, (Mr. C.) antici |resistance against the usurpations of the Ex. 
 pates with confidence that the small party who|ecutive, on the part of tnis or any other 
 were denounced at the last session as traitors/branch of the Governum2nt. could be enter. 
 and disunionists, will be found, on this trying} tained? Let it not be said. that this is the ree 
 occasion, standing in the front rank, and man-! sult of accident—of an unforeseen coatingency. 
 
 " fully resisting the advance of despotic power |It was clearly perceived. and openly. stated, 
 I, said Mr. Catuoon, heard the anticipation that no successful resistance could be made to 
 with pleasure, not on account of the compliment the-corruption and er croachments of the Exec. 
 which itimplied, but the evidence which it af-!utive, while the tariff question remained open— 
 fords that the cloud which has been so indus’ | while it separated the north from the south, and 
 trious!y thrown over the churacter and motive/wasted the energy of the honest and patriotic 
 of that sinall, but patriotic party, begins to be | portions of the conmunity against each other, — 
 - dissipated. The Senator hazarded nothing alin joint effort of whichis indispeasably ne- 
 
 ~ the prediction, That pirty is the determined, |cessary to expel those from authority, who are — 
 the fixed, and sworn enemy to usurpation, come |converting the entire powers cf Government 
 from what quarter and under what form it may |int» a corrupt electionecirng machine; and that, 
 
 _ .-whether from the Executive, upon the other} without separate State interposition, “the ad- 
 
 '-departients of this Government, er from this'justment was impossible. The truth of this 
 Government, on the sovereignty and rights of|position rests not upou the accidental state of 
 _ the States, The resolution and fortitude with ‘things, butona profound principle growing out — 
 which it maintained its position at the lust ses-!of the nature of Government and party strug 
 
 ~ sion, under so many difficulties and dangers, in! gles ina free State. History and reflection teach 
 _ defence of the States aguinst the encrvach-|us, that when great interests come into conflict 
 “ments of the. General Government, furnished!and the passions and the prejud ces of men are 
 evidence, not to be mistaken, that that party pp roueeys such struggles can never be cofnposed 
 the present momentous struggle, would b- Iby the influence of any individuals, however 
 found arrayed in defeace of the rights of Con- tobias andif there be not, somewhere in the 
 gress against the encroachments of the Pres-'system, some high constitutional power to ar- 
 leat. ‘And let me tell the Senator from Ken, ‘rest their progress, and compet te parties to 
 
 « 
 
 : 
 
16 
 
 SPEECH OF MR. CALHOUN, 
 
 — 
 
 adjust the difference, they go on ull the State) 
 falls by corruption or violence. 
 
 I will, said Mr. C., venture to add to these 
 remarks another, in commexion with the point 
 under consideration, not less true Weare not 
 only indebted to the cause which I have stated, 
 for our present strength in this body against the 
 present usurpation of the Executive, but! 
 if the adjustment of the taritt had stood alone, 
 as it ought to have done, without the odious bill 
 which accompanied it,--if those who led in the 
 compromise had joined the State Right party in 
 their resistance to that unconsututional measure, 
 and thrown the responsibilitv on its real authors, 
 the adininistration, their party would have been 
 so prostrated throughout the entire South, and 
 their power, in consequence, so reduced, that 
 they would not have dared to attempt the present 
 measure ; or, if they had, they would have been 
 broke and defeated. 
 
 Were I, said Mr. C., to select the case best 
 calculated to illustrate the necessity of resisting 
 
 usurpation at the very commencement, and -to 
 prove how difficult it is to resist itin any sub- 
 sequent stage, if not met at first, 1 would select this 
 What, he asked, is the cause of the 
 present usurpation of power on the part of the 
 Executive?-- What the motive?--the tempation, 
 which has induced them to seize on the depo- 
 sites? 
 
 very case. 
 
 What, but the large surplus revenue ? 
 the eight or ten millions in the public Treasury 
 beyond the wants of the Government? And what 
 has put so large an amount of money in the 
 Treasury, when not needed? I answer, the pro- 
 tective system--that system which graduated 
 duties, not in reference to the wants of the Go 
 verament, but in reference to the importunities and 
 demeuds of the manufacturers, and which poured 
 millions of dollars into the Treasury beyond the 
 most profuse demands and even the extravagance 
 of the Government --taken—unlawfully taken, 
 from the pockets of those who honestly made it. 
 T hold that those who make, are entitled to what 
 they make against all the world, except the Go- 
 vernment; and against it, except to the extent of 
 its legitimate and constitutional wants; and that, 
 for the Government to take one cent more is rob 
 bery. In violation of this sacred principle Von- 
 
 - grecs fir t removed the deposites into the public 
 Treasury, from the pockets.of those who made it 
 
 3 
 
 where they were rightfuiy placed by al! laws, ;Our institutions. io pause and reflect. Co 
 human and divine. The Executive, in his turn, fol |dence is daily witharawing froin the General Go: 
 lowing the example, has taken them from that|Vernment. Aitenation is hourly going on. Th ese 
 deposite, and distributed them among favorite! will necessaniv ereate a state of things inimical 
 ‘The means used have been|to the existence of our institutions, and, if nob) 
 the same in both cases. The constitution gives to|Speedilv arrested, convulsions must fo'low, an 
 vongress the power to lay duties with a view to/then comes dissolution or seapbtiann, when 
 revenue, This power, without regarding the|a thick cloud will be thrown over the cause of He 
 object for which it was intended, f irgetting that) bertv ana tne auvere: prospects of our country. — 
 
 ilv limited.| The Ssnate auwsouracd. |. } 
 
 and partisan banks. 
 
 it was a reat trust power. neceasa: 
 
 by the very nature of such powers, to the subject 
 and the object of the trust, was perverted to a use 
 never intended, that of protecting the industry 
 of oie portion of the country at the expense of 
 another; and, undér this false interpretation, the | 
 money was transferred fromits natural and just 
 deposite, the pockets of those who made it, into 
 the public Treasury, as I have stated. In this 
 too, the executive followed the example’ of Con-— 
 gress. 
 By the magic construction of a few simple 
 words—“unless ’ otherwise ordered,”—intended 
 to confer on the Secretary of the Treasury a lim: 
 ited power—to give additional security to the 
 public deposites, he has, in like manner, pervert- 
 ed this power, and made it the instrament, py 
 similar sophistry, of drawing the money from the 
 Treasury, and bestowing it, as I have stated, on 
 favorite and partizan banks. Would to God, 
 said Mr, €., would to God I could reverse the 
 whole of this nefarious operation, and terminate 
 the controversy by returning the money to the” 
 pockets of the honest and industrious citizens, — 
 by the sweat of whose ‘brows it was made, 
 with whom only it can be rightfully deposited. — 
 But as this cannot be done, | must content my-— 
 self by giving a vote to return it to the publi¢ 
 Treasury, where it was ordered to be deposited 
 by an act of the legislature. D 
 There is another aspect, said Mr. C., in which — 
 this subject may be viewed. We all remember 
 how early the question of the surplus revenue 
 
 oe 
 
 period, a Senator from New Jersey, (Mr. Dick: | 
 FRSON,) presented his scheme for disposing of it” 
 by distributing it among the States. The first 
 meseage of the President recommended a similar 
 project, which was followed up by a movement 
 on the part of the Legislature of New York, and” 
 { believe some or the other States. The pub 
 lic atten'ion was aroused—-the scheme scru- 
 tinized,—its gross une nstitutionality and injus 
 tice, and its dangerous tendency, —its tenden 
 
 to absorh the power and existence of the Stat 
 were clearly pereeived anddenounced. Th 
 nuntiation was too deep to be resisted, and the 
 scheme wasapandoned. What have we now in 
 heu af it? What is the present scheme but 
 distribution et tne surplus revenue? A distribt 
 tion at the sole wul and pleasure of the Executi 
 
 We have said Mr.C., arrived at a fearful crisis: 
 Thines cannot long remain as they are, It be- 
 hoves ali who love their country —who have affees 
 tion for their oftsoring, or who have any stake im 
 
 ee