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NILES' NATIONAL REGISTER--JAN. 21; 1843– QUINTUPLE TREATY, AFRICAN SLAVE TRADE. 327

into dust! And that, too, in walls consecrated

TRADE, &c.

ing the immunities of the Amertcan flag upon the

tions, to enter into the articles now submitted to the

to freedom-where the spirit-stirring tones of re- QUINTUPLE TREATY, AFRICAN SLAVE seas as they exist and are defined by the law of na sistance to tyranny have so often aroused the free and the brave? Would to God these sentiments could have originated with some one else than Daniel Webster.

1

MESSAGE FROM THE PRESIDENT,

IN SENATE, JANUARY 11.

Washington, January 9, 1843.

To the senate of the United States:

gov

senate.

trade."

"The treaty which I now submit to you proposes no alteration, mitigation, or modification of the rules of Time once was when every patriotic American the law of nations. It provides simply that each of felt proud that Daniel Webster was his countryman. I have received a resolution of the senate of the the two governments shall maintain on the coast of His gigantic and commanding talents had endeared 27th of December, in the following terms: Africa a sufficient squadron to enforce, separately him to every lover of his country's glory, his noble "Resolved, That the president be requested to in- and respectively, the laws, rights, and obligations of efforts in many a trying contest had equally endear- form the senate, if compatible with the public inter- the two countries for the suppression of the slave ed him to every lover of constitutional freedom. est, whether the quintuple treaty for the suppression What must have been the feelings of his friends- of the slave trade has been communicated to the These opinions were expressed by me officially cheered him on in so many conflicts-when on an And, if so, by whom? far what purpose? and what an-ed how the accuracy of this general statement can those friends who had cherished, sustained, and ernment of the United States in any form whatever? upon the occasion of making to the senate a communication of very great importance. It is not perceivoccasion they sought to do him honor, instead of re-swer may have been returned to such communica- be doubted by those who are acquainted with the viving their drooping spirits, and advising and en- tion? Also, to communicate to the senate all the in- debates of public bodies in Europe, the productions couraging them in their approaching struggle, he formation which may have been received by the of the press, and the other modes by which public met them with reproaches, revilings, and bitter government of the United States going to show that taunts. Sir, (said Mr. R.) he is gone-and let him go! He not only abandoned us in the hour of our triumph, but he was doing service in the ranks of those who had so often felt the force of his mighty arm. He might now, perhaps, console himself with the idea, that although he cannot save himself, yet, like Samson, he can bury beneath the ruins of our political edifice the object of his hatred. Still, if he posses ses the common sympathies and feelings of our nature, the day of remorse must come. Like Themis tocles, who tarnished the escutcheon of his fame by negotiating with his former enemies, he might perhaps receive his reward in some paltry office under his new allies; yet his declining years must be embit tered with his recollection of the bright hopes he has withered, the afflicting evils he has brought upon his country.

The third inquiry is:

the course which this government might take in relation opinion is manifested in an enlightened age. It is not
to said treaty has excited no small degree of attention and to be supposed that excited attention to public and na-
discussion in Europe.' Also, to inform the senate how tional transactions or general political discussions in
far the 'warm animadversions' and the great political Europe on subjects open to all the world, are known
excitement which this treaty has caused in Europe only in consequence of private information commu-
have any application or reference to the U. States.nicated to the government, and feeling a strong per-
Also, to inform the senate what danger there was suasion that it would be improper in the executive to
that the laws and the obligations of the United States go into any discussion or argument upon such a sub-
in relation to the suppression of the slave trade would Ject with the senate, I have no further remarks to
be executed by others' if we did not remove the pretext
make upon this part of the inquiry.
and motive for violating our flag and executing our laws,'
by entering into the stipulations for the African tions' of the United States in relation to the suppres-
"What danger there was that 'the laws and obliga-
squadron and the remonstrating embassies which are
contained in the 8th and 9th articles of the late Bri-sion of the slave trade would be 'executed by others,'
tish treaty. Also, that the president be requested to lating our flag and executing our laws,'"
if we did not 'remove the pretext and motive for vio-
communicate to the senate all the correspondence
with our ministers abroad relating to the foregoing
I have already quoted from the message the entire
points of inquiry. Also, that the president be re-
paragraph, to a part of which this portion of the in-
quested to communicate to the senate all such infor-quiry is supposed to refer.
mation upon the negotiation of the African squadron As to the danger there was that the laws and the
articles as will show the origin of such articles and obligations of the United States in relation to the
the history and progress of their formation."
suppression of the slave trade would be executed by
I informed the senate, in the message transmitting others, if we did not remove the pretext and motive
the treaty with England of the 9th of August last, for violating our flag, and provide for executing our
that no application or request had been made to this laws, I might say that this depends upon notorious
government to become a party to the quintuple trea-been in various forms before the country, and all the
facts and occurrences, of which the evidence has
ty. Agents of the government abroad, regarding the
signature of that treaty as a political occurrence of
some importance, obtained, unofficially, copies of it,
and transmitted those copies to the department of
state, as other intelligence is communicated, for the
information of the government. The treaty has not
been communicated to the government of the United
States from any other quarter, in any other manner,
or for any other purpose.

The next request expressed in the resolution is in these words:

What must be his reflections on contemplating the character and progress of this debate? His name, which was once so mighty, now become a byword and an object of jest and ridicule in that hall, which formerly echoed and re-echoed the sound or his voice! His name tossed about here with jeers and reproaches! One party mourning over his fall and his desertion, and the other rejecting his proffered all ance with scorn! Would to God, for the honor of their country, this cup could have passed them by. "The gentleman from Kentucky, (Mr. Marshall) spoke of the "scorn and contempt" with which Mr. Webster must have treated the denunciations which have been uttered against him. So far as the whig party in this house was concerned the gentleman had begged the question. He denied that he had been denounced and anathematized here. He called upon every one within the sound of his voice to say if Mr. Webster had not been treated with the greatest forbearance and moderation. It was with pain and regret that his present position was alluded to here by the whigs. It had until lately been in the language of apology for his course, and of hope that he would yet restore himself to the confidence of long tried and faithful friends, that his conduct has been spoken of by the whigs in this house. It was from the other party-from those whose cause he was aiding, that he had received denunciation most heavy. But if he had been denounced by the whigs, would not his denunciation be prima facie evidence that he deserved it? What interest could the whig party have in denouncing such a man? Would it not rather be their interest to preserve so strong an ally-to possess the aid and influence of his mighty mind? And after adhering to him so long, through so many event-government to become a party to this treaty; but the ful struggles, was it fair, was it reasonable to suppose that his former whig friends there should denounce him without sufficient cause? To suppose so was to reason against all the natural springs and impulses of human action.

"Also, to communicate to the senate all the infcrmation which may have been received by the government of the United States going to show that the course which this government might take in relation to said treaty has excited no small degree of attention and discussion in Europe. Also, to inform the senate how far the 'warm animadversions' and the great political excitement' which this treaty has caused in Europe have any application or reference to the United States."

These words quoted in this part of the resolution appear to be taken from my message above mentioned. In that communication I said:

"No application or request has been made to this

course it might take in regard to it has excited no
small degree of attention and discussion in Europe,
as the principle upon which it is founded, and the
stipulations which it contains, have caused warm ani-
madversions and great political excitement.

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branches of the government.

When I came to occupy the executive chair, I could not be ignorant of the numerous complaints which had been made on account of alleged interruptions of American vessels, engaged in lawful commerce on the coast of Africa, by British cruisers, on the ground of their being engaged in the slave trade. I could not be ignorant, at the same time, of the well-grounded suspicions which pervaded the country, that some American vessels were engaged in that odious and unlawful traffic. There were two dangers, then, to be guarded against; the one, that this traffic would continue to be carried on in American ships, and perhaps much increased, unless some new and vigorous effort should be made for its suppression; the other, that acquiescence in the capture of American vessels, notorious slave dealers, by British cruisers, might give countenance to seizures and detention of vessels lawfully employed, on light or groundless suspicions. And cases had arisen, under the administration of those who preceded me, well calculated to show the extent and magnitude of this latter danger: and, believing that very serious consequences might in time grow out of the obvious tendency and progress of things, I felt it to be my duty to arrest that progress, to rescue the immunity of the American flag from the danger which hung over it; and to do this by recommending such a provision for the execution of our own laws as should remove all pretence for the interference of others. Among the occurrences to which I have alluded, it may be useful to particularize one case.

As to the "scorn and contempt," of which the "In my message at the commencement of the pregentleman from Kentucky spoke, that was too easy sent session of congress, I endeavored to state the a way of answering a proposition, for one of his lo- principles which this government supports respecting The schooner Catharine, an American vessel. gical mind. Suppose they had indulged in com the right of search and the immunity of flags. De- owned by citizens of the United States, was seized plaints or censures, if you please-still, could sirous of maintaining those principles fully, at the on the coast of Africa by the British cruiser called scorn and contempt" answer the charge? Did they same time that existing obligations should be fulfilled, the Dolphin, and brought into the port of New York prove that our censures were not well founded? have thought it most consistent with the honor and in the summer of 1839. Upon being brought into Could they make atonement for the wrongs we have dignity of the country that it should execute its own port, Benjamin F. Butler, esq. district attorney of endured? "Scorn and contempt" were the cheapest laws, and perform its own obligations, by its own the United States for the southern district of New of all mental impulses; they afforded evidence nei- means and its own power. The examination or York, appeared in the district court of the United ther of intellect of the head nor feeling of the heart. visitation of the merchant vessels of one nation by States for that district, and in the name and behalf They were the impulses with which selfishness re- the cruisers of another for any purposes except those of the United States, libelled the schooner, her apgarded honest and unfortunate suffering; with which known and acknowledged by the law of nations, un-parel, and furniture, for a violation of the several acts heartless tyranny always looked on the complaints der whatever restraints or regulations it may take of congress passed for the suppression of the slave of the oppressed. The unfeeling miser felt scorn place, may lead to dangerous results. It is far better trade. The schooner being arrested by the usual and contempt" for the cries of suffering poverty; the cruel despot felt "scorn and contempt" for the complaints of injured innocence. Domitian no doubt felt the same for the cries of the agonized Christians when torn to pieces by ravenous beasts; he felt "scorn and contempt" for the very prayers which, in the struggles of death, they offered to heaven for his conversion- (Here Mr. Rayner's hour expired,

and he took his seat.

by other means to sepercede any supposed necessity or process in such cases, and possession taken of her
any motive for such examination or visit. Interfer- from the hands of the British captors by officers of
ence with a merchant vessel by an armed cruiser is the U. States, the cause proceeded, and by a decree of
always a delicate proceeding, apt to touch the point the circuit court in December, 1840, a forfeiture was
of national honor as well as to affect the interests pronounced. From this decree an appeal was taken,
of individuals. It has been thought therefore expe- which is now pending in the supreme court of the
dient, not only in accordance with the stipulations United States.
of the treaty of Ghent, but at the same time as re- It is true that in another case, that of the Tigris,
moving all pretext on the part of others for violat-of like general character, soon after arising, the

then secretary of state, on the 1st of March, 1841, informed Mr. Fox, the British minister, that, "however strong and unchangeable may be the determination of this government to punish any citizens of the United States who violate the laws against the African slave trade, it will not permit the exercise of any authority by foreign armed vessels in the execution of those laws."

government of the United States to fulfil its obliga-tection, except in the kind disposition of individuals. tions, entered into by the treaty of Ghent, to do its But, under the fostering influence, patronage, and utmost for the suppression of the African slave care of his majesty, and that of his predecessors, the trade, and to accomplish this object by such means as language has been reduced to visible and systemashould not lead to the interruption of the lawful com- tized form, and is now written by a large and remerce of the United States, or any derogation from spectable proportion of the people. Schools have the dignity and immunity of their flag. And I have been established throughout his dominions, and are the satisfaction to believe that both the executive, in supported, principally, by the government; and there But it is evident that this general declaration did negotiating the treaty of which these articles form are but few, among the younger people, who are unnot relieve the subject from its difficulties. Vessels part, and the senate, in advising to its ratification, able to read. They have now, in their own language, of the United States found engaged in the African have effected an object important to the government a library, embracing a considerable variety of books, slave trade are guilty of piracy under the acts of and satisfactory to the people. on a variety of subjects, including the holy scriptures, congress. It is difficult to say that such vessels can In conclusion, I hope I may be permitted to ob- works on natural history, civil history, church history, claim any interference of the government in their be- serve that I have, out of a profound respect for the geography, political economy, mathematics, and stahalf, into whosesoever hands they may happen to senate, been induced to make this communication in tute law; besides a number of elementary books. A fall, any more than vessels which should turn gene- answer to inquiries, some of which at least are be- regular monarchical government has been organized, ral pirates. Notorious African slave traders cannot lieved to be without precedent in the history of the of a limited and representative character, a translaclaim the protection of the American character, in- relations between that body and the executive de- tion of the constitution of which we herewith transasmuch as they are acting in direct violation of the partment. These inquiries were particularly unex-mit. A code of laws, both civil and criminal, has laws of their country, and stand denounced by those pected to me, at the present moment. As I have been enacted and published. laws as pirates. In case of the seizure of such a been so fortunate as to find my own views of the ex- The legislature holds an annual meeting, for the vessel by a foreign cruiser, and of her being brought pediency of ratifying the late treaty with England purpose of adding to and amending this code.into a port of the United States, what is to be done confirmed by a vote of somewhat more than four- Courts of justice have been established, and regular with her? Shall she be libelled, prosecuted, and con- fifths of the senators present, I have hitherto flatter- trials by jury required in all important cases. Fodemned, as if arrested by a cruiser of the United ed myself that the motives which influenced my con- reigners of different nations have testified their conStates? If this is to be done it is clear that the agen- duct had been fully appreciated by those who advis- fidence in these courts, by bringing suits in cases cy of a foreign power has been instrumental in exe-ed and approved it; and that if a necessity should where many thousands of dollars worth of property cuting the laws of the United States. Or, on the was involved, and that too in cases when, with but other hand, is the vessel, with all her offences flavery short delay, they could have been carried begrant upon her, to be released, on account of the fore the courts of other countries. agency by which she was seized, discharged of all penalties, and left at liberty to renew her illegal and nefarious traffic.

It appeared to me that the best if not the only mode of avoiding these and other difficulties, was by adopting such a provision as is contained in the late treaty with England.

ever arise for any special explanation or defence in
regard to those motives, it could scarcely be in that
assembly itself.
JOHN TYLER.

THE U. STATES AND THE HAWAIIANS.
DOCUMENTS ACCOMPANYING THE MESSAGE OF THE PRE-

SIDENT TO CONGRESS, DECEMBER 30, 1842.
Messrs. Richards and Haalilio to the secretary of state.
Washington, December 14, 1842.
SIR: The undersigned having been duly commis-
sioned by his majesty Kamehameha III. king of all
the Hawaiian islands, to represent his government,
and promote its interests in the United States, wish
to call the attention of your government to the ex-
isting relations between the two countries.

The senate asks me for the reasons for entering into the stipulations for the "remonstrating embassies" contained in the late treaty. Surely there is no stipulation in the treaty for any "remonstrating embassies," or any other embassies, nor any refer ence or allusion to any such thing. In this respect, all that the treaty provides is in the ninth article, and In the year 1826, articles of agreement, in the is in these words: "The parties to this treaty agree form of a treaty, were entered into between his mathat they will unite in all becoming representations jesty's government and Thomas Ap Catesby Jones, and remonstrances, with any and all powers within commanding the United States sloop of war Pea whose dominions such markets [for African slaves] cock. His majesty has never received any notice of are allowed to exist; and that they will urge upon that treaty's being ratified, nor intimation that it was all such powers the propriety and duty of closing such approved by the government of the United States. markets effectually, at once and forever."

treaty, in all his intercourse with citizens of the U.
States.

Subsequently to the above, similar forms of agree-
ment have been entered into between his majesty
and officers commanding vessels of war of different
nations of Europe; but so far as is known to the un-
dersigned, those agreements have never received the
sanction of their several governments.

His majesty has nevertheless, during the last sixteen It always gives me sincere pleasure to communi-years, governed himself by the regulations of that cate to both houses of congress any thing in my power which may aid them in the discharge of their high duties, and which the public interest does not require to be withheld. In transmitting the late treaty to the senate, every thing was caused to accompany it which it was supposed could enlighten the judgment of the senate upon its various provisions. The views of the executive, in agreeing to the eighth and ninth articles, were fully expressed; and, pending the discussion in the senate, every call for further information was promptly complied with, and nothing kept back which the senate desired. Upon this information, and upon its own knowledge of the subject, the senate made up and pronounced its judgment upon its own high responsibility; and, as the result of that judgment, the treaty was ratified, as the journal shows, by a vote of thirty-nine to nine. The treaty has thus become the law of the land, by the express advice of the senate, given in the most solemn manner known to its proceedings. The fourth request is, "That the president be requested to communicate to the senate all the correspondence with our ministers abroad relating to the foregoing points of inquiry."

If this branch of the resolution were more definite, some parts of it might perhaps be met, without prejudice to the public interest, by extracts from the correspondence referred to. At a future day, a communication may be expected to be made as broad and general as a proper regard to these interests will admit; but at present I deem any such communication not to be consistent with the public interest.

The fifth and last is, "That the president be requested to communicate to the senate all such information upon the negotiation of the African squadron articles, as will show the origin of such articles, and the history and progress of their formation."

These facts, viewed in connexion with their attendant circumstances, have led his majesty to feel considerable embarrassment in managing his foreign relations, and has awakened the very strong desire that his kingdom should be formally acknowledged by the civilized nations of the world as a sovereign and independent state.

It has, moreover, been the uniform practice of consuls and commercial agents resident in his ma jesty's dominions, and also of all commanders of national vessels visiting these dominions, to demand all that protection, both of person and property, which is demanded of sovereign and independent states; and this his majesty believes has been duly and efficiently extended. While, therefore, all is demanded of his government, and all is rendered by it, which is demanded of or rendered by the governments of sovereign and independent states, he feels that he has a right to expect his state to be acknowledged as such, and thus be formerly received into the general compact of sovereign nations. In the request which his majesty makes to the government of the United States, he has of course for his direct object the promotion of the interest of his own kingdom; but he is also very fully convinced that the important interests of all the great commercial nations will also be materially subserved by his dominions remaining, as they have hitherto been, independent.

Their position is such that they constitute the great centre of the whale fishery for most of the world. They are on the principal line of communication between the western continent of America and the eastern continent of Asia; and such are the prevailing winds on that ocean, that all vessels requiring repairs or supplies, either of provisions or water, naturally touch at those islands, whether the vessels sail from Columbia river on the north, or from the far distant ports of Mexico, Central America, or Peru, upon the south; and it should be further added that there is no other place in all that part of the Pacific ocean where repairs of vessels can be made to so good an advantage, or supplies be obtained in such abundance and on so favorable terms.

His majesty wishes also to remind the government His majesty considers that this acknowledgment of the United States that the amount of property behas already been tacitly but virtually made, both in longing to their citizens, which is either landed at the United States and Europe, by the appointment or enters the various harbors and roadsteads, of his of consuls and commercial agents to reside in his do- dominions, and is consequently more or less depenminions, and by the formal manner in which the com- dent on the protection of his government, cannot be manders of national vessels have transacted business less than from five to seven millions of dollars anwith him, many of whom have professedly acted un-nually. This property lies in some ninety or a bunder the express instructions of their several govern-dred whaling ships and their cargoes, and in some ments. But he is nevertheless of opinion that the twelve or fifteen merchant vessels, besides also a time has now arrived when both the interests and considerable amount of other property belonging to the honor of his kingdom demand a more formal acknowledgment than has hitherto been made by any foreign government. It is his majesty's request that the government of the United States will take into consideration the nature, the extent, and the rapidity of those changes which have taken place in his dominions during the last few years; changes which he has the happiness to believe are honorable, both to his government and to the people over whom it rules.

American citizens on shore. At some seasons there have been not less than three or four millions of dollars worth of American property, and some fourteen hundred American citizens at the same time, at the various ports of the island, requiring consequently, in some degree, the protection of his majesty; and he has the happiness of believing that efficient and satisfactory aid has always been extended to those who have required it. In evidence corroborative of many of the facts herein stated, the undersigned do Twenty-three years ago the nation had no written not hesitate to refer to documentary evidence, which language, and no character in which to write it. they believe must be among the papers in your deThese articles were proposed to the British minis- The language had never been systematized nor re-partment of state, recently furnished by masters of ter by the secretary of state, under my express sanc-duced to any kind of form. The people had no ac- national vessels, but more especially to the United tion, and were acceded to by him, and have since quaintance with Christianity, nor with the valuable States commercial agent residing at Honolulu. been, ratified by both governments. I might, without institutions or usages of civilized life. The nation His majesty is also desirous that there should be a disrespect, speak of the novelty of inquiring by the had no fixed form or regulations of government, ex- definite arrangement for the settlement of any future senate into the history and progress of articles of a cept as they were dictated by those who were in difficulties which may unhappily arise, and which, betreaty, through a negotiation which has terminated, authority, or might by any means acquire power. tween sovereign and independent nations, would orand as the result of which, these articles have be- The right of property was not acknowledged, and dinarily be the subject of diplomatic correspondence. come the law of the land by the constitutional ad- was therefore but partially enjoyed; there were no To carry into effect these desirable objects, the unvice of the senate itself. But I repeat that those ar-courts of justice, and the will of the chieftains was dersigned are authorized by his majesty Kamehameha ticles had their origin in a desire on the part of the absolute. The property of foreigners had no pro-III. to enter into negotiations with the authorities of

Accept, sir, the assurances of the high consideration with which the undersigned have the honor to be your obedient servants. TIMOTEO HAALILIO. WILLIAM RICHARDS.

Hon. Daniel Webster, secretary of state.

the U. States, by convention, treaty, or otherwise, by the all-absorbing questions of finance and curren-mitted this plan of an Exchequer, and in two sucwhenever the latter shall acknowledge the sover-cy. The question of finance involves an inquiry into cessive annual messages, urged its adoption by the eignty of the former; and, as evidence that the un- the best mode of collecting, keeping, transmitting, legislature. dersigned are thus authorized, they are prepared to and disbursing public revenue; and that of currency Under these truly embarrassing circumstances, the present official papers from his majesty whenever into the best mode of creating and regulating the cir- committee approach the consideration of this subject the way is open for them to be received. culating medium of the country. The former is all with the most anxious solicitude. They sympathize The undersigned will further state that they are important, both to the government and the citizen; most deeply with the sufferings of the community; directed to proceed from the United States to Europe, and the latter equally essential to the business pros- and notwithstanding their repeated but hitherto unfor the purpose of obtaining from some of the prin- perity of the country, and scarcely less important to availing efforts to relieve them in the way which a cipal governments there the same acknowledgments the successful administration of the government it- majority of both houses of congress thought best calwhich it is the object of this letter to obtain from the self. It is deeply to be deplored that questions of culated to effect that object, yet, being reluctantly government of the United States. such vital importance and all-pervading interest, convinced that there is now no hope of carrying out where a settled uniformity is so essential to prosper- their wishes, at least for some time to come, they ity, should ever be mingled up with the partisan and feel it to be their duty to examine carefully and dispolitical contests of the day. But in a free republic passionately the plan submitted by the executive; and like ours, resting upon popular opinion, this is inevi- if it promises even partial relief to the country, and table. If evil in some measure results from it, it is the price which liberty must ever pay for the greater good which it ensures. These agitations and convulsions, so disastrous for a time to the quiet and prosperity of the community, are often caused by a praiseworthy regard for the liberties we enjoy, and betoken a jealous apprehension of the encroachments of power. But let us console ourselves with the hope that the time will come, if it has not already, after the violence of the storm is over, and the troubled elements have sunk to rest, when the nation will take a calm survey of this matter, and settle upon some plan which will accomplish the desired objects, ir. a way that shall meet the approbation and ensure the ready acquiescence and cheerful support of the great majority of the people. To doubt that The advantages of your country to the navigators this may be done without conferring any dangerous in the Pacific, and in particular to the numerous ves- powers upon the executive or a corporation, would sels and vast tonnage of the United States frequent-be to doubt the perpetuity of our republican form of ing that sea, are fully estimated; and just acknowl- government. Heretofore three modes only have been ments are due to the government and inhabitants of suggested, and the committee readily concede that the islands for their numerous acts of hospitality to they cannot well conceive of a fourth not compounded more of less from these three.

Secretary of state to the agents of the Sandwich Islands.

Department of state, Washington, Dec. 19, 1842. GENTLEMEN: I have received the letter which you did me the honor to address to me, under date of the 14th instant, stating that you had been commissioned to represent, in the United States, the government of the Hawaiian Islands, inviting the attention of this government to the relations between the two countries, and intimating a desire for a recognition of the Hawaiian government by that of the United

States.

Your communication has been laid before the president and by him considered.

the citizens of the U. States.

The United States have regarded the existing auThe first is the sub-treasury, which, though last in its thorities of the Sandwich Islands as a government adoption here, is oldest in point of time, as it precesuited to the condition of the people, and resting on ded all banking institutions, and now dispenses with their own choice, and the president is of opinion their aid, and rejects the currency which they furnthat the interests of all the commercial nations require ish. Its essential features are, that taxes and dues that that government should not be interfered with to the government shall be collected and paid only by foreign powers. Of the vessels which visit the in gold and silver, and intermediate the time of colislands, it is known that a great majority belong to lection and disbursement, the money shall be kept in the United States. The United States, therefore, the hands of government officers. This is only fiscal are more interested in the fate of the islands and of in its character, intended for the treasury alone, as its their government than any other nation can be; and authors disclaim all authority and duty upon the part this consideration induces the president to be quite of the government to furnish a currency for the use of willing to declare, as the sense of the government of the people. Its model may be found in the imperial the United States, that the government of the Sand-institutions of Darius, the King of Persia, and its prinwich Islands ought to be respected; that no power ciples have descended, with little modification and ought either to take possession of the islands as a slight improvement, it is believed, through all govconquest, or for the purpose of colonization; and that ernments where banks do not exist, and are now no power ought to seek for any undue control over found in perfect operation in the island of Cuba.the existing government, or any exclusive privileges We are told that this system has been condemned by or preferences in matters of commerce. the people, and a majority of the committee concur in this condemnation.

Entertaining these sentiments, the president does not see any present necessity for the negotiation of a The second mode has been denominated the state bank formal treaty, or the appointment or reception of system. By this mode the taxes and public dues are diplomatic characters. A consul or agent from this collected and disbursed in specie or the bills of spegovernment will continue to reside in the islands.cie-paying banks, and between the time of collection He will receive particular instructions to pay just and disbursement, the moneys are deposited in cerand careful attention to any claims or complaints tain selected state banks for safe keeping. This plan which may be brought against the government or peo- was adopted in 1833, both as a financial and currency ple of the islands by citizens of the United States: measure-professing to provide a safe place of deand he will also be instructed to receive any composite for the public revenue and a good currency plaint which may be made by that government for for the people. Its signal and disastrous failure to acts of individuals, (citizens of the U.S.) on account accomplish either object, in consequence of a general of which the interference of this government may suspension of specie payments in the spring of 1837, be requested, and to transmit such complaint to this department.

It is not improbable that this correspondence may be made the subject of a communication to congress; and it will be officially made known to the govern ments of the principal commercial powers of Europe. I have the honor to be, gentlemen, your obedient servant, DANIEL WEBSTER. Messrs. Timoteo Haalilio and Wm. Richards, Washington.

REPORT UPON THE EXCHEQUER.

security for the public revenue, without endangering the liberties of the citizen and the purity of our free institutions, they are disposed to adopt it. In a case of such vast importance to the welfare of the community, they do not feel at liberty to indulge any pride of opinion, or permit any preconceived notions or prejudice to operate upon their minds or affect their actions. They have therefore carefully and patiently examined the proposed plan of exchequer, and deliberately considered and weighed the able arguments in its favor, contained in the report of the secretary of the treasury and in the two messages of the president recommending it, and now proceed to state the result of their deliberations.

The president, in his last message, after alluding to the distress of the country and his former recommendation, gives the synopsis of his “exchequer plan" in the following words:

"It was proposed to place it under the control and direction of a treasury board, to consist of three commissioners, whose duty it should be to see that the law of its creation was faithfully executed, and that the great end of supplying a paper medium of exchange, at all times convertible into gold and silver, should be attained. The board thus constituted was given as much permanency as could be imparted to it, without endangering the proper share of responsibility which should attach to all public agents. In order to ensure all the advantages of a well-matured experience, the commissioners were to hold their offces for the respective periods of two, four, and six years, thereby securing at all times, in the management of the exchequer, the services of two men of experience; and, to place them in a condition to exercise perfect independence of mind and action, it was provided that their removal should only take place for actual incapacity or infidelity to the trust, and to be followed by the president with an exposition of the causes of such removal, should it occur. It was proposed to establish subordinate boards in each of the states, under the same restrictions and limitations of the power of removal, which, with the central board, should receive, safely keep, and disburse the public moneys; and, in order to furnish a sound paper medium of exchange, the exchequer should retain of the revenues of the government a sum not to exceed $5,000,000 in specie, to be set apart as required by its operations, and to pay the public creditor, at its own option, either in specie or in treasury notes of denominations not less than five nor exceeding one hundred dollars, which notes should be redeemed at the several places of issue, and to be receivable at all times and every where in payment of government dues, with a restraint upon such issue of bills, that the same should not exceed the maximum of $15,000,000. has left this system without an advocate. Never- "In order to guard against all the hazards incitheless, it is believed to be no more strange than true dent to fluctuations in trade, the secretary of the that this universally condemned system has, from treasury was invested with authority to issue necessity, been in fact more or less used from that $5,000,000 of government stock, should the same at day to this-a most convincing evidence that even any time be regarded as necessary, in order to place state banks are considered a safer place of deposite beyond hazard the prompt redemption of the bills than the hands of individual officers. which might be thrown into circulation; thus, in fact, making the issue of $15,000,000 of exchequer bills rest substantially on $10,000,000, and keeping in circulation never more than one and one-half dollars for every dollar in specie. When to this it is added, that the bills are not only every where receivable in government dues, but that government itself would be bound for their ultimate redemption, no rational doubt can exist that the paper which the exchequer would furnish would readily enter into general circulation, and be maintained at all times at or above par with gold and silver; thereby realizing the great want of the age, and fulfilling the wishes of the people. In order to reimburse the government the expenses of the plan, it was proposed to invest the exchequer with the limited authority to deal in bills of exchange, unless prohibited by the state in which an agency might be situated, having only thirty days to The last bank charter, however, expired in 1836, run, and resting on a fair and bona fide basis. The and two bills, since passed by congress to create a legislative will on this point might be so plainly ansubstitute, have each been successively vetoed by nounced as to avoid all pretext for partiality or fathe president, and in lieu of them he has now sub-voritism. It was furthermore proposed to invest this

The third is denominated the United States bank system, by which the general government, instead of employing the banks chartered by the states, over which it has no control, and in which it has no interest, charters a bank, with a capital sufficient to ensure the safety of the public deposites, in which it is itself a large stockholder, sharing in its profits, and HOUSE OF REPRESENTATIVES, JAN. 9, 1843. then directs the taxes and public dues to be collected Mr. Fillmore, from the committee on ways and means, in specie or the bills of this bank or other speciemade the following report: paying banks, and, between the time of collecting and The committee on ways and means, to whom was re-disbursements, to be deposited in this bank. This ferred so much of the president's annual message and accompanying documents as relates to the "plan for an Exchequer," report:

That they have had the subject under examination and have given to it all that careful and dispassionate consideration which its admitted importance demands and which the time for action at this short session, and the multifarious duties imposed upon the committee would permit.

The country has not been agitated for many years

system professes not only to provide a safe place for
the keeping of the public money, but a sound uniform
currency for the people; and, for near forty years
during the fifty-three since the adoption of the federal
constitution, it has successfully accomplished both
these objects.

treasury agent with authority to receive on deposite, to a limited amount, the specie funds of individuals, and to grant certificates therefor, to be redeemed on presentation, under the idea, which is believed to be well founded, that such certificates would come in aid of the exchequer bills in supplying a safe and ample paper circulation. Or if, in place of the contemplated dealings in exchange, the exchequer should be authorised not only to exchange its bills for actual deposites of specie, but for specie or its equivalent, to sell drafts, charging therefor a small but reasonable premium, I cannot doubt but that the bene fits of the law would be speedily manifested in the revival of the credit, trade, and business of the whole country. Entertaining this opinion, it becomes my duty to urge its adoption upon congress, by reference to strongest considerations of the public interests, with such alterations in its details as congress may, in its wisdom, see fit to make."

watchful attention of individual self interest, and and pliant exchequer agent to buy the drafts of some though they might be no mere honest than govern- irresponsible political friend, and thereby pour out ment officers holding the same trust, yet it must be the national treasury for the basest of purposes; and apparent to all that the government was much more yet, when called to any account, he has committed safe, as there was a double set of sentinels upon their no crime; he has merely misjudged by purchasing a conduct, and they would be compelled to waste, draft not accepted, the drawer of which has proved embezzle, or squander the whole $28.000,000 of mo- irresponsible. Can it be pretended, then, that a ney belonging to the private stockholders before the power like this obviates the objections to the subpublic money would be in danger. It may be said treasury? We think not. that this was done in the case of the late state bank But this is not all. By the sub-treasury the goin Pennsylvania bearing that name, and that the same vernment only risked, in the hands of its officers, the thing might have occurred had it been a United amount of money that might be on hand between States Bank. In theory this is undoubtedly true, but the time of collection and the time of disbursement. our experience thus far warrants no such conclusion; As the supply is constantly flowing in from the dubut, even if it were so, it must also be borne in ties on imports and the sale of the public lands, and mind, that the process of decay in that institution constantly flowing out in payment of the public dues, was so slow, and the apprehension of mismanage the amount on hand at one time is not usually large. ment so universal, that ordinary vigilance would If we take the balance in the treasury on the 1st of have withdrawn all public deposites from its vaults January for twenty-one years, from 1820 to 1840, inIt must be obvious to every intelligent man, who long before it finally failed. Indeed, under, a real clusive, as the average amount on hand of available will carefully examine the plan here shadowed forth, or pretended apprehension, they were withdrawn means, exclusive of trust funds, it will average about that, if this institution be ever legalized and put in some four years before it suspended specie pay- $7,000,000. This, however, includes the time when operation under the executive authority of the go-ments. But it was not so with individuals who were a great surplus accumulated; and probably from two vernment, it will exert a power and influence, for entrusted with the public money. The mails that to three millions would, under ordinary circumstan good or for evil, upon the business and politics of brought notice of their defalcations usually brought ces, be the average amount. This amount, whatever this country, compared with which a bank of the intelligence that the delinquents were on their way it may be, is all the government risks under the subUnited States or the treasury would be impotent and to Europe or elsewhere, and already beyond the treasury. But by this plan it is proposed to set harmless. If it were possible to have such an insti- reach of either civil or criminal process. It would apart $5,000.000 in specie, to be held by these gotution without increasing executive power or en- seem to be a waste of words to argue a question so vernment officers as the basis of a paper circulation dangering the treasury, which should be administer plain. Experience especially in matters of this kind, of $15.000.000. Then this $15,000,000 of excheed by men of undoubted talents and integrity, endued is the test of truth, and the experience of near forty quer bills are also entrusted to the exchequer agents, with competent financial skill, and a cautious, vigi- years, out of fifty three since the adoption of the to be paid out for government dues, or in the pur lant sagacity, uncontaminated with political and par- federal constitution, during which we have had a chase of drafts. Here, then, are $20,000,000, in adtisan bias, it is undoubtedly capable of rendering national bank, has shown that not one dollar has dition to the ordinary revenue, entrusted to the keep some service both to the business wants of the coun- been lost by being deposited to its vaults, while ing of these public officers, where all experience try and the financial embarrassments of the treasury. millions have been lost that were entrusted to indi- has shown that it is not safe to entrust even the ordiBut to hope for this is to expect a change in human viduals. Can it be pretended, then, that, in the safe nary amount of money on hand in its transit from nature itself, and in the ordinary motives that go- keeping of the public money, this plan of an exche- collection to disbursement. vern the conduct of men, and especially political quer secures the good which was obtained by a Unitmen, little less than miraculous. Our institutions ed States Bank? are based upon no such theory of human perfectibility. They contemplate the possibility of error and vice in those who are entrusted with power, and therefore guard the trust by every limitation, as to time and amount, not incompatible with the object to be attained.

But even this is not all. This plan also authorises these public officers to receive on deposite gold and silver to the amount of $15,000,000, and give certificates of deposite, and also to receive money to an unlimited amount in payment for drafts sold; and all this is at the risk of the government. But this power to receive private deposites at the several agencies is liable to still greater abuse. If the agent be dishonest, he may issue these certificates to an unli

But it has been objected to the sub-treasury, and a majority of the committee think with great force, that that did not afford adequate security for the public moneys. That required the public moneys to be placed in the hands of public officers for safe keeping; this does the same. That required the Let us, then, first consider the benefits which it is public officer to give bond with sureties for its safe claimed by the executive will result from an adop-keeping, and that has heretofore been generally re-mited amount, and abscond with the avails before tion of this plan, and see how far they are likely to quired; this does the same. But that security has detection can take place, and leave the government be realized, and then consider the objections to it, and see how far there is reasonable ground to apprehend danger.

First, then, as to its benefits. The secretary of the treasury, in his report on the plan, says: "The bill now submitted may be considered as having three principal objects in view:

"3. A provision for supplying, to some extent, the means of a cheap and safe exchange in the commerce

not heretofore been found sufficient in all cases to
prevent loss, and we can only judge of the future by
the past. Nothing has ever been realised from the
sureties of Mr. Swartwout, and probably never will
be. Is it not clear, then, that the objection to the
sub-treasury of inadequate security, is obviated by
this plan?

to pay these certificates out of dues raised from the people by taxation. We ask, then, with emphasis, whether it can be said that a system like this, which gives unlimited power to use the public money in purchasing drafts, that deposites with these exchequer agents $20,000,000 in specie and bills belonging to the government, and permits them to receive in "1. The safe-keeping of the public moneys. But this is not all. So far from this objection be- deposite from individuals $15,000,000 more, and in "2. The furnishing, as well for safe and conveni-ing obviated, it is by this plan increased in a tenfold payment for drafts sold an unlimited amount, for all ent payments to the treasury as for the use of the proportion. The sub-treasury act declared it a felo- which, and for fraudulent certificates of deposite, country, a paper circulation always equivalent to py, punishable by fine and imprisonment not exceed the public treasury is eventually to be responsible, gold and silver, and of universal credit. ing five years, for any public officer to "use" or does not put at hazard all the revenues of the na"loan" any of the public moneys entrusted to him tion, and lay a foundation for the most dangerous pofor safe-keeping, yet this plan expressly permits him litical favoritism and universal corruption? Can the to use or loan it, in buying drafts which may have public money be safe in such an institution? We The secretary truly remarks that "no one can en- thirty days to run. It seems to the committee that think not; and venture to predict that, if it be adopttertain a doubt of the high importance of the first of this extraordinary power to use the public money, ed, before ten years have elapsed the national treasuthese. The public moneys are received by govern- raised by taxation on the people, in buying drafts ry will be overwhelmed with bankruptcy and ruin. ment from the people for the necessary uses of the drawn by one individual upon another, is most The second object of this plan is, as alleged by country, according to the constitution, and ought dangerous. Even if this power should be honestly the secretary in his report, "to furnish a sound paper ever to be esteemed a sacred trust. They are earn- exercised, it must inevitably lead to great loss. Such circulation, in which debts to the government may ed by the industry of the people, and while safely officers as will be entrusted with the execution of be paid, and which may also be useful to the comguarded, and applied only to really necessary and constitutional purposes, will be cheerfully contributed by a patriotic community. The people have a right to be as safe, as good laws, and a faithful administration can make them, against both waste and loss."

between the several States."

merce and general business of the country."

this power possess neither the vigilance nor sagacity
to guard the public treasure from loss. All expe- The manner in which this paper currency is to be
rience has shown that nothing short of that watchful furnished will appear by reference to the 7th, 8th,
caution which self-interest alone can inspire, can be and 9th sections of the proposed bill. It is to con-
safely trusted in loaning money. But it may be said sist of $15,000,000 or less of treasury notes or ex-
that this is not technically a power to loan, but an au- chequer bills, of denominations not less than five nor
thority to purchase. It is not material what name exceeding one thousand dollars, signed, countersign-
you give to the transaction, the danger is the same. ed, and endorsed, and issued by the exchequer board
It is an authority to part with the public money on and its several agencies, and redeemable at the place
the responsibility of any citizen who offers his draft where issued in gold or silver, on demand, and re-
for sale. This will be more clear by an example.ceivable in dues to the United States; but such is-
A, residing in New York, draws his draft on B, in sues are to be so limited, that the amount of gold
Philadelphia, at thirty days, and offers it at the ex- and silver on hand shall be equal to one-third the
chequer agency in New York for sale, and it is bought
and remitted to B, who refuses to accept it and it
comes back protested. Is it not plain that the go-
vernment money is gone, irrecoverably gone, and
the only security the government has for it is the
draft of A? Had the draft been accepted and not
paid, it would have been the same thing, with this
difference only, that the acceptor would also have
been liable for its payment.

He also says, as between a United States Bank and the sub-treasury, "the present plan is offered, seeking to avoid the objections which exist to each, and to accomplish, to some extent, the good designed by both." Does this plan, then, avoid the objections to those two condemned institutions in the safe keeping of the public moneys? What was the good intended to be secured by a United States Bank in the safe keeping of the public moneys? It was to establish an institution, with a capital sufficiently large, collected from individuals, and put under the control of persons interested in its preservation, to afford an ample fund for the security of the government for any money it should deposite in its vaults. For example: the late bank of the United States had a capital of $35,000,000, and $28,000,000 of this belonged This is the hazard with an honest agent. But to individual stockholders, all of which was pledged suppose the exchequer agent dishonest-suppose him for the repayment of any money belonging to the a warm political partisan: might not these favors be government entrusted to its keeping. In this mainly dealt out to our political friends and denied to politiconsisted the security for the government deposites. cal enemies? Or suppose money is wanted to corThe bank could not abscond. Its directors were rupt the fountains of elective power, or carry some under the eye of the government and the immediate political contest, how easy would it be for a dishonest

amount of such issues outstanding. These notes are to be put in circulation by being paid out for debts due by the government under the 3d section, or in the purchase of domestic bills of exchange, as provided in the 11th section. It is also authorised by the 5th section to receive private deposites in specie, not exceeding $15,000.000, and issue certificates therefor, which are redeemable at the place where

issued.

These treasury notes and these certificates of deposite are to constitute the paper circulation to be provided by the exchequer.

These banking powers, thus conferred upon the exchequer for the purpose of furnishing a paper cir culation, distinguish this plan from that of the subtreasury. That made no attempt at banking by is

timents.

suing a paper currency, though many objected to its ferent times and under different circumstances, had a specie, for the sake of depositing it with these excheadoption under the apprehension that, when once common end. The assignats, though based upon the quer agents, and that, too, at a loss of one-half of one established, it would be converted into a great go- avails of large estates which had been confiscated, per cent.? It must be borne in mind that these agenvernment bank, similar to that now proposed. and made a legal tender by severe penalties, gradual-cies will be established where there are banks.But the secretary says, "it cannot with any pro- ly sunk in the market, in consequence of excessive Every business man will prefer depositing in a bank, priety be called a government bank. The essential issues. until they became worthless. A similar fate for the obvious reasons-first, because it costs him elements of a bank are still wanting to it. Govern- attended the paper rubles of Russia; and the gover- nothing; secondly, by depositing with a bank, he often ment seeks not to fill its own coffers by discounts, or nors of the bank of Amsterdam, in violation of their obtains some favor useful to him in his business; and, to make gains by the use of its own credit, or to official duty and solemn oaths, secretly withdrew the thirdly, he can deposite all his money in a bank, make the issue of the exchequer a substitute for re-specie that had been deposited in its vaults; and this whether in specie or the bills of specie-paying banks; venues, in order to meet its own necessities." And fraud was not discovered for forty or fifty years. but if he deposited in the exchequer he would be the president, in substance, reiterates the same sen- But the attempts in our own country, by different compelled, before he could make his deposites, to states, to establish banks owned by the states, have convert all his paper, which may be issued by banks The committee regret that they cannot concur been equally unfortunate. Few, if any, have main-scattered all over the state, into specie, before the with these high functionaries in this opinion. On tained their credit, and the committee believe there exchequer will receive it. This very circumstance the contrary, after the most considerate reflection, is some inherent and insurmountable difficulty in gov- takes away the principal inducement which many the committee are constrained to say that they be- ernment banking, that cannot be overcome or obviated. men have to deposite at all; which is, that by sending lieve this to be, to all intents and purposes, a go- They cannot therefore, flatter themselves that this at- their paper money directly to the bank as soon as revernment bank; that no definition of a bank, by any tempt if it should be made, would prove more sucess-ceived, they may know whether any of it is counterrespectable writer on currency or political economy, ful than hundreds of others which have failed. The feit or on insolvent banks, being assured that if it is can be found that will not include this. That some cause of these failures has doubtless been different received by the bank, then it is good to them, and if banks may possess more power than is conferred in different cases. But there are certain causes, it is not received, they can at once return it to the upon this, will not be denied; but that they are es- obvious to all, well calculated to produce this fatal person from whom they received it. The exchequer sential to a bank, even in the modern acceptation of result. affords none of these inducements for making deposithe term, is by no means admitted. tes; and few if any, will consider it more safe than a bank in their own neighborhood; and we therefore think that this power, in practice, will be of little or no use.

What is a bank? McCulloch, in his Commercial Dictionary, says:

"Banks are commonly divided into two great classes: banks of deposite and banks of circulation. This division, however, is not a very distinct one; for there is no bank of deposite that is not at the same time a bank of circulation, and few or no banks of circulation that are not also banks of deposite. But the term banks of deposite is meant to designate those which keep the money of individuals and circulate it only; while the term banks of circulation is applied to those which do not thus confine their circulation, but issue notes of their own, payable on demand."

In the first place, the various officers and agents which would be selected to take charge of such an institution are not likely to have the requisite financial skill, even if they should have the requisite moral honesty. They will be selected from party and political considerations. Thus it ever has been, and thus it ever will be. But, even if they had the skill, they would not feel that watchful solicitude which self-interest alone can create, and which is indispensable to the successful management of a bank. But, among such agents appointed from such motives, there will be many whose moral integrity cannot be safely trusted. We have deplorable evidence of this in the numerous defaulters to the government, and the scarcely less numerous instances of bank officers, acting under the immediate eye of those interested, who have embezzled the funds which they were paid to guard.

The chief objection to dealing in exchange by buying and selling drafts has already been shown. It consists mainly in the hazards to which it exposes the treasury; and without dwelling upon that subject further, the committee feel bound to call the attention of the house and the country to another feature of this plan, and that is its effect upon the state banks.

One great object to be accomplished by issuing these exchequer bills, according to the report of the secretary, is "to furnish a safe paper medium, in which payments may be made to the government of all debts and taxes." This, the secretary thinks, would be of vast importance to the government in case all the banks should suspend specie payments. The committee cannot concur in this opinion. On the contrary, they think, in such an emergency, the government would be far better off if it had no exchequer bills outstanding. In that case, it might at The foregoing description may not comprehend once issue them, and thereby relieve itself and the every attribute ordinarily belonging to banks in this community. But if they were already out, every country. But the exchequer plan certainly does one that came into the treasury, either for debts or contain all the essential attributes of a bank. Like But, even if all these difficulties could be overcome, taxes, would avail nothing to the relief of the treaother banks, it receives public and private deposites, there is still another which admits of no remedy, and sury, as the receiving it would be merely paying a and is therefore a bank of deposite. Like other against which you can provide no security; and that debt previously contracted by the government in isbanks, it issues bills redeemable on demand in specie, is the dangerous increase in the issues of such paper suing the note. The treasury, at last, could only and is therefore a bank of issues. Like other banks, by legislative authority. It matters not that you limit find relief in reissuing these same exchequer bills, it puts its funds in circulation by paying them out for it by this act-the next congress has power to change and in the use of such specie as should be paid into public dues, or in discounting drafts having thirty it; and, having the power, if there should be a defici- the treasury. Little specie would be paid into the treadays to run, and is therefore a bank of circulation. It is true it does not discount promissory notes, but ency in the revenue, it will be exercised. All expe-sury if exchequer bills were abundant, and could anrience leads to this inevitable result. It was so in swer the same purpose. Hence the treasury would be this is not essential to constitute a bank. The dis- France. It was so in Russia. It was so in this coun- much more embarrassed, in such an exigency, by counting of drafts may be more safe and more pro- try during the revolution, when continental money having the market already supplied by these bills, fitable; but certainly the mode in which the money was poured out until it became worthless; and it was which it would be compelled to pay off by receiv of the bank is put in circulation, whether by paying so during the last war, when treasury notes were in-ing them for public dues, than if the channels of cirit out for public dues, or discounting drafts or pro-creased until they were twenty or twenty-five per culation were yet to be filled, and those paying dumissory notes, can be of no essential importance in cent. below the par value of non-specie paying banks; ties were compelled to pay in specie. We think the making up the clements that constitute a bank. and, even within a few months after this exchequer experience of the last few years has clearly demonBut the secretary has said that this is not a bank, plan was first recommended to congress, in a time strated this. because "government seeks not to fill its own coffers of profound peace, treasury notes were issued until by discounts, or to make gains by the use of its own they fell five per cent. below par; and the credit of credit or to make the issue of the exchequer a sub- the treasury was, at last, only saved by promising to stitute for revenue, in order to meet its own necessi-pay six per cent. interest on these notes semi-annuties." Whatever design may be avowed, there can ally, which converted them at once from currency, be no doubt of the fact that the exchequer will, like receivable in public dues, into a species of stock for other banks, ask compensation by way of interest for investment. Even we could not sell a six per cent. drafts discounted, and by way of premium for drafts stock, having twenty years to run, without a discount sold, both of which are provided for in the bill; and to meet these notes; and had they been issued under The sub-treasury was strongly objected to on the it is equally clear that it contemplates, like other this exchequer, the result must have been the same. ground that it required all public dues to be paid in banks, the use of its credit in part to effect these ob- All these facts lead to but one conclusion, and that gold and silver. Every merchant having duties to jects, and that all its issues in payment of govern- seems irresistible; which is that the government ought pay was compelled to pay them in specie. The spement dues are "a substitute of exchequer bills for re- not to engage in banking, but that it should be left to cie could only be obtained by drawing it from the venue in payment of its debs;" and that, while it is private corporations or companies, which may be banks; and hence it was apprehended that the draught compelled to borrow, it saves the payment of interest effectually restrained in their issues by penal laws, might be so great as to endanger the safety of those on the amount of its circulation, and in this way for the violation of which they may be made amena-institutions and greatly embarrass the business operamakes the same profit that a bank does that exchan-ble to the courts. Certainly nothing short of this can tions of the country. ges its credit in the shape of bills for a note on inte-prevent excessive issues, or ensure prompt redemp- If the sub-treasury was objectionable on that acrest. It would seem also that it was intended to tion; and even this has not always effected that object. count, it appears to the committee that the exchebank upon its deposites, public and private, and that Mr Ricardo, an eminent writer on this subject, says: quer is much more objectionable. It is true that by they were to be used in buying or discounting drafts. "Experience, however, shows that neither a state nor this exchequer plan the bills of specie paying banks The commitee, therefore, have no hesitation in pro- a bank ever has had the unrestricted power of issu-are receivable for public dues, but it must be borne nouncing this scheme a bank; and, as it is to be owneding paper money, without abusing that power; in all in mind that it is made the imperative duty of the and controlled wholly by the government, they have states, therefore, the issue of paper money ought to agent receiving them to settle with the banks weekas little hesitation in denominating it a government ly; and this settlement can have no other object than bank. to draw out the amount in specie. Although the provisions of the bill itself are a little ambiguous on that point, yet this must be the intent, for it would be absurd merely to exchange one set of bills for another on the same bank. All the advantage, then, which the banks have under the exchequer more than they had under the sub-treasury is, that their bills are to be held one week, or part of a week, by the exchequer before they are returned for the specie, and some inay be paid out during the week and therefore not returned. But the disadvantages are more preponderating: for by the sub-treasury no more specie was rendered necessary than to pay public dues, and that was required in all cases and from all men; but by the exchequer plan large additions are invited for deposites and drafts sold, and all re

As a bank, then, what are to be its probable effects upon the currency of the country? So far as it shall furnish a paper circulation of equal value with gold and silver, it would be beneficial. But, if we are to judge from past experience, this could not be done to any great extent, and would not be maintained for any great length of time. All government banking, in all ages and countries, has proved a failure. We believe there is no exception to this rule. To prove this, we need not resort to the assignats of France, or the Imperial bank of Russia, with its paper rubles, or even the far-famed deposit bank of Amsterdam, which was under the charge of the governors of the city annually elected by the citizens, and for whose fidelity the city itself was liable. All these, at dif

be under some check or control." As you cannot
check or control congress on this subject, it would
follow that we ought not to attempt to exercise this
power.

The committee have already considered the in-
creased liability which the treasury incurs by receiv-
ing private deposites, for safe keeping of which it is
responsible. That argument proceeds upon the
ground that private deposites will be made in the
exchequer in gold and silver, as contemplated by the
proposed plan. But the committee have great doubt
whether this power to receive deposites from indivi-
duals will not, in practice, be perfectly useless, espe-
cially if the depositor is compelled to pay one-half of
one per cent. for the privilege. What inducement
can there be for any man, and particularly a business
man, to be at the trouble of converting his money into

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