DEC. 10, 1832.]

The President's Message.

[H. OF R.

the Government to do. The Secretary of the Treasury, hasty and inconsiderate action of this House, furnish on the 17th of July, (he could not be absolutely certain them with an apology for so ruinous a measure. I invoke as to the day, but it was on the 17th or 18th,) had adver- gentlemen to be patient; the time will soon come, if the tised the intended payment of the three per cent. stock, people do not see abundant cause to reverse what is two-thirds in October, and the remaining third in Janua- claimed as their judgment upon this subject, when we ry. The bank was written to, apprizing it of this inten- shall have State banks and their notes in abundance with tion, and the suggestion was made to it, as a previous which to inflict and oppress the labor of the country, understanding between the Government and the bank, and which will soon increase to the amount of your “unthat, as the Government might not have enough disposa- available funds" in the public treasury. ble revenue to meet the whole sum of fifteen millions, Mr. WAYNE said, that though he desired not to enter being the amount of the three per cents., the bank at large into the debate at this time, and would not do so, should withhold the certificates of so much of the three yet gentlemen had compelled him, by the course of their per cent. stock as the bank might have the control of. remarks, to make some reply. It has been said that noThis Mr. W. understood to be the new sin charged thing was now before the House to make an inquiry into upon the institution. Of what amount the bank obtain- the condition of the bank desirable or necessary. He ed the control he had not been certainly informed, for would refer to the President's message, and to the report the 1st of January had not arrived; but if gentlemen of the Secretary of the Treasury, both suggesting an exwould look at the report they would find that, on the amination, to ascertain if the bank was, or would be in 1st of January next, the treasury would be minus, provi- future, a safe depository for the public funds. Mr. W. did ded the whole amount of three per cent. stock should be not say it was not, but an inquiry into the fact might be paid off. There would, therefore, be a necessity that very proper notwithstanding; and the President and Secrethe bank should obtain control of a part of the certifi-tary, in suggesting it, had imputed no suspicion of the insolcates. On the 1st of January there would be (including vency of the bank. Eventual ability to discharge all of its the money to be paid on account of Danish claims) a little obligations is not of itself enough to entitle the bank to over two millions of dollars in the treasury; deducting the confidence of the Government. Its management, and the Danish funds, (which were not revenue) the balance the spirit in which it is managed, in direct reference to the would not be equal to the unavailable funds of the Go-Government, or to those administering it, may make invernment. By unavailable funds is meant one million vestigation proper. What was the Executive's complaint and a half of dollars not worth one cent, which the Trea- against the bank? That it had interfered with the paysury lost by attempting to make State banks places of ment of the public debt, and would postpone the paydeposite for the public moneys, and by attempting to rely ment of five millions of it for a year after the time fixed upon State bank paper as a medium in which to collect upon for its redemption, by becoming actually or nominalthe revenues of the Government. Does the administra-ly the possessors of that amount of the three per centum tion now desire or hope to find in these State institutions, stock, though the charter prohibited it from holding such about which they know nothing officially, and have a stock, and from all advantages which might accrue from right to know nothing, greater safety for the public funds? the purchase of it. True, the bank had disavowed the Or is it the wish of the administration, and the desire of ownership. But of that sum which had been bought by gentlemen in this House, to appoint another investigating Baring, Brothers, & Co., under the agreement with the committee? For what? To raise the hue and cry against agent of the bank, at 914, and the cost of which had been the solvency of that institution, which the honorable Se-charged to the bank, who would derive the benefit of the cretary told us last session had been well managed, and difference between the cost of it and the par value, which which had rendered such important services to the Go- the Government will pay? Mr. W. knew this gain would vernment and country that he felt it to be a part of his official duty to urge Congress to recharter it.

Mr. W. said he had hoped that the bank would have been permitted to wind up its concerns, if the public judgment had been irrevocably pronounced upon the question in the recent election, with as little injury to public and private interest as possible for so delicate an operation to be performed.

be affected by what may be the rate of exchange between the United States and England, but still there would be gain, and who was to receive it? Baring, Brothers, & Co. ? No. The bank was, by agreement, charged with the cost of it, in a separate account, on the books of Baring, Brothers, & Co., and it had agreed to pay interest upon the amount, until the stock was redeemed. The bank being prohibited to deal in such stock, it would be well to In the time yet allowed the institution, with its present inquire, even under the present arrangement with Baring, ample means, if let alone, if left in the enjoyment of that Brothers, & Co., whether the charter, in this respect, was credit to which I believe its means and funds entitled, it substantially complied with. Mr. W. would not now go is in the power of the bank, and I would hope in the dis-into the question of the policy of the arrangement by the position of the directors, to mitigate the blow which the bank concerning the three per cents. It may eventuate downfall of a sound currency must ever inflict upon an in great public benefit, as regards the commerce of the honest community. Already, Mr. Chairman, has that country; but if it does, it will be no apology for the tepart of the country whence I come, said Mr. W., felt, merity of an interference with the fixed policy of the and heavily felt, the effects of the necessary curtailment Government, in regard to the payment of the national of the business of this bank since our last session. What debt; a policy, which those who administer the bank we are destined to suffer, time alone can develop. knew had been fixed by all who, by law, can have any agency in its payment. Nor can any apology be found for it in the letter of the Secretary of the Treasury of the 19th of July last to Mr. Biddle; for, at Philadelphia, the day before, on the 18th, he employed an agent to go to England, and had given instructions to make an arrangement, by which the payment of the public debt was to be postponed until October, 1833.

I entreat gentlemen to stay their efforts, at least for a time, that we may see what evidence the Secretary of the Treasury has collected upon this subject, and then it will be time enough to ask this investigation. Do not, by the sanction of a vote of this House, strike a panic in the commercial community, and beget distrust with all classes, when in truth and in fact there may not exist any well founded grounds for it.

Whatever solicitude there may have been to lessen the If it is the purpose of the administration to withdraw commercial distress which it was feared would be caused the public deposites from this institution, and place them by pestilence, the plan which the bank had in view in State banks, let them do it upon their own responsi- should have been communicated to the Secretary of the bility, as they have a right to do it; but do not, by the Treasury, as it could not be accomplished without the

H. OF R..]

The President's Message..

[DEC. 10, 1832.

protracted use of the Government funds, and by delaying | meet the cost of the banking houses; but does it appear, the payment of the public debt. The bank should not from the report of the agent, that all that accumulation, have coveted the exclusive merit of such an arrangement and such as may have been added since 1831, is not infor the relief of commerce. It would have had the praise cluded in the statement of available means? This item, of originating it, and it might well have acknowledged its too, of real estate, may be subject to another discount. situation would have prevented it from being completed We now have it stated at its full value; but accruing taxes, without the aid of the treasury deposites. But it is said expenses of sale, and the time it will take to dispose of it, that the report of Mr. Toland makes all inquiry unneces- will reduce the sum which it will bring, unless the rise of sary, and shows that the condition of the bank is better property where it is situated has been progressive, or than it has been at any time before. Mr. W. said he should suddenly occur. That such is not the fact, howwould controvert both declarations; but he disclaimed ever, may be inferred from the bank having continued to saying that the bank was not a safe depository of the pub-hold, for more than eleven years, its real estate in Cinlic funds. The bank might be a safe, and yet an impro- cinnati, or Ohio, and which, at cost, was, in a previous per depository for them. But he would now examine the statement of the bank, put down at one million two hunreport of the agent, to show that it did not prove the bank dred and thirteen thousand dollars; and this in the most to be a safe depository, and he insisted that the instruc- flourishing town and the most prosperous State in the Union. tions given to the agent had not been complied with. Will any gentleman here, and particularly some one of The agent was not in a situation to act them out to the them from Ohio, tell us if the landed estate of the bank complete intention of the Secretary. Mr. W. did not in Ohio is worth more now than it was in 1820, when the mean that there had been any dereliction of duty on the bank became owner of it? Now, sir, though the argu part of the agent. His character forbade such an insinua- ment just used may not show that the bank has less availtion. But the agent's conclusion is, that the bank has able means than is stated by Mr. Toland, it is strong seventy-nine millions to meet thirty-seven millions of debt. enough to prevent his report from being conclusive It consists of gold and silver, funds in Europe, real estate, against inquiry; and this is the point, Mr. W. said, beamounts due by State banks, and debts due by individuals. tween himself and gentlemen who were against inquiry. The excess of means over debt is represented at forty-two Nor will it or can it be denied, that the approximation of millions. Now, let us see if a single item of suspended indebtedness to means is not so close, that it would be debt, amounting to $7,851,281 82, as disclosed in the well to have an examination, to remove all doubt. It triennial report of September, 1831, (if the contingent matters not how the doubt has been raised; it exists in the fund to meet this loss, stated in that report, is included in public mind; and as the bank is to be the depository of the seventy-nine millions of available means, or has not millions of accruing revenue, it should be dispelled, if it been actually applied to the extinguishment of the sus- can be done by further inquiry. It must not only be safe, pended debt,) will not reduce the excess of forty-two mil- but it must be thought safe, by a full development of its lions below the capital of the bank, which is thirty-five management. Of this we have nothing in detail, as re

millions.

lates to the great national interests which the bank was intended to aid and to advance. The President, therefore, and the Secretary, did well in suggesting an inquiry; and they are not answerable for the follies of those who, from the fears of loss, or from party resentments, have converted their suggestions into declarations by both of the bank's insolvency. Neither has said so.

Is any information before us to show that the contingent fund is not included by the agent in his report of available means? Gentlemen are called upon to deny and to prove that it is not. May not also the amount of suspended debt have been increased since 1831, without any increase of the contingent fund? Or, what proof have we that the whole sum of sixty-two millions due by individuals is good, Mr. W. said, his object had been so far to make out a and will be ultimately collected? or, that no per cent case fit for inquiry, not in any way to give it as his opiage of loss upon it should be allowed? If the bank was nion that the bank was insolvent. Mr. W. made no accalled upon to say if the whole sum was due by solvent cusation of any kind against the bank, nor would he expersons, could it say so? And if none of them are known press any opinion of the ultimate soundness of it on acto be insolvent, does not prudence require that some dis- count of its thirty millions of discounts in the West and count should be allowed from the amount, for the vicissi- Southwest. Its debtors there might be perfectly good or tudes of trade and the casualties of fortune, to those who responsible, without constituting any present ability in the are not in trade? In this instance, it may be said, the re-bank to pay what it owed. Such large discounts in one port shows the bank's entire indebtedness and the extent of its means for payment. It ought to be remembered, that the first can only be lessened by payment, and that the second may be diminished by losses. Though we have no data from which an amount of loss can be correctly conjectured, we all know some will occur. But, further: the report rates the real estate of all kinds owned by the bank at three millions, or within two or three thousand dollars of it, as available means; the real estate consists of banking houses and lands acquired in payment of debts; the first was stated in May last, at their cost, to be one million one hundred and sixty-nine thousand dollars. Now, no one supposes that sum could be got for them. They are buildings for an exclusive purpose, inconvertible to other uses, but by alterations requiring heavy expenditures; and they were built at times when labor and materials were dear, and when the bank gave more for real estate than it will now bring. From this item of available means the bank will be satisfied if it does not finally lose some three or four hundred thousand dollars.

Mr. W. knew that there had been a reserved fund of one hundred and twenty thousand dollars per annum to

quarter of the Union might turn out to be advantageous to the stockholders and to the Government, so far as a dividend was concerned. But such anticipations, however well founded, did not gainsay inquiry; for, it might interfere with other and more important interests which the bank has undertaken to sustain and to discharge for the Government and the country; as, for instance, whether those discounts had not disabled the bank from being in a condition to carry on its ordinary operations on the first of July last without the Government deposites. What was its ability to do so on the first of October? and what will be its condition on the first of January, if Congress should insist upon the application of the Government deposites to the payment of the three per cents, of which the bank has the control; or upon withdrawing the deposites, if the bank shall not allow them to be redeemed?

As to the bank being in a better condition now than it ever had been, as Mr. W. understood the gentleman from Massachusetts [Mr. DEARBORN] and others to say, he must differ with them. This Mr. W. knew, that it had in effect to borrow five millions since July last; and this it would have been obliged to do without the apprehensions caused by the cholera. When all fears of pestilence had

DEC. 10, 1832.]

The President's Message.

(H. of R.

passed, the bank continued to owe the loan. Mr. W. sup- broken view of the whole condition of the institution posed it would do so as long as it could derive a better in- throughout the country. If Mr. W. had any agency in terest from its customers upon the use of the deposites the affair, he should be in favor of commissioning a numwhich were intended to pay the national debt than it paid ber of agents, who would examine on the same day, and upon the loan. This is the secret of the whole arrange- report simultaneously.

ment in regard to the three per cents. Because the bank Mr. W. observed, in conclusion, that he felt he had had now eight millions of discounts less than it had six been forced to do, although not more than he ought, unmonths since, gentlemen said it was in a better condition; der the circumstances, yet much more than he had wished and a parade of this was to be made for present effect. to do. He had touched only the prominent points; the Mr. W. would not say it was in a worse condition, or that exposition might be much further extended, but he trustit was bad: but he would prove that there had been no ed that he had done enough to show that he had not change in that time which made its condition now a sub- brought forward the measure he proposed without due ject of boasting. In May last, the total amount of dis- consideration. counts was seventy millions. The circulation of the bank, Mr. CAMBRELENG, of New York, observed, that he at the same time, was twenty-two millions. It owed a should not engage at present in a debate on this subject, debt then of two millions in Europe. Its circulation now though he did anticipate that there would be, at some is eighteen millions; its discounts sixty-two millions. time, a committee raised who would thoroughly investiFour millions of its reduced discounts have been applied gate the affairs of the bank; but he thought that as much to meet the return of so much of its circulation: two as could be expected to be effected, especially in a short millions to its debts in Europe; one million to pay de- session, would probably be accomplished by the adoption posites, which were then twenty millions, and are now of the resolution of the gentleman from Georgia. He nineteen. Thus, seven of the eight millions of reduced wished, now, to put a question to the gentleman from discounts are accounted for, and a million only is left to Kentucky, [Mr. WICKLIFFE,] who seemed to be as well, sustain the remark of the bank being in a much better and a little better, informed as to the affairs of the bank, condition now than it had ever been. The truth is, the than any other gentleman present. He wished to know bank stands now as it did then, with this addition to its whether that gentleman meant to say that the Governobligations: that it is paying to Baring, Brothers, & Co. ment had sanctioned, in any manner, or in any form, the an interest upon five millions, instead of upon a debt of purchase by the bank of stock abroad, and the postponetwo, which Mr. W. presumed it had to pay before it ment of the payment of the public debt until October, could negotiate the loan of five, or make the arrangements 1833? for withholding so much of the three per cents.

Mr. WICKLIFFE said, that before he replied to this Gentlemen remonstrated against inquiry, and said it question, he wished to notice what had fallen from the would agitate the public mind, and spread suspicions in-gentleman from Georgia, [Mr. WAYNE.] That gentlejurious to the bank, and to the commerce of the country; man seemed to consider him the advocate of the bank, as that the public mind had already been agitated by inti- a corporate being, or perhaps as the advocate of the mations from the highest source, which had been produc- stockholders. He disclaimed such an attitude, in and out tive of loss to the stockholders. It is true, Mr. W. said, of this House. that suggestions had been made by persons from whom the public would believe they never would have come, unless they could be sustained by facts. To stop inquiry would not remove the impression.

All Mr. W.'s acts, in relation to it, had arisen from a desire for the preservation of a sound circulating medium, for the benefit of the agricultural and commercial interests of the country. Mr. W. said he was not acquainted As to loss to the stockholders, Mr. W. remarked, those with any of those who held stock in the bank; and it was only could have been losers who were speculators in not on account of the loss sustained by the stockholders stocks; though they had rights which were not to be that he was most concerned. Though that loss was great, harmed by undue means, they had none such at this time he did not feel particularly concerned about it, more to complain of; and their gains or losses were never a sub-than he should feel for the losses of other citizens, in the ject of sympathy, as they were made by a never-ceasing diminution of the value of their estates; but what occarivalry of human sagacity carried to the utmost verge of sioned his anxiety was, an apprehension of what was to the boundaries of moral propriety. The aged, the wi- follow.

dow, and the orphan, and the man of moderate desires, It was the state of universal distrust that would speedistill continue to hold their stock. It was worth intrinsi- ly pervade the community, and which could not but be cally what it was before any suggestion of inquiry had followed by the most ruinous consequences. This was been made; and if the bank shall be well administered, it what alarmed him; and this must be the inevitable conwill regain all between its present market price and what sequence of suddenly calling in the immense debt that it has been, except so much of artificial value as it may was due to the bank in the Western States particularly. have acquired from the hopes of the holders of it that it Now for the answer to the question of the gentleman would be a permanent stock. To make it so, the Gov- from New York. Of any sanction given by the Governernment was never committed. As to the committee to ment to the postponement of the payment of the public which this inquiry was to be referred, Mr. W. felt no soli- debt until October next, or whether such an arrangecitude. He should have confidence in any committee the ment in fact was made, he had not spoken. What arHouse should appoint. He was very willing the investi- rangement, if any, had been made on that subject, he did gation should be confided to the Committee of Ways and not know, or how far it met the wishes of the Government. Means. He was confident it would be fairly and honor- What he had said was this: that the conduct of the bank, ably conducted. Besides, there was no committee of that in obtaining the control of any part of the three per cent. House which would dare to postpone action on the sub-stock, was done at the instance of the Government itself. ject without the very best reasons. It was objected that Mr. W. said he understood the state of fact in reference there was not time, during the residue of this session, to to this question to be this: He wished it understood he complete such an investigation. Admitting the fact to be did not read from an official document; but the language so, it furnished no argument against the appointment of a would be comprehended, and its correctness not disputed committee, because such committee might put matters in here or elsewhere. Previous to the publication of the train, by appointing agents who should examine into the notice by the Secretary of the Treasury, viz: on the 19th affairs of the several branches of the bank, and whose re-July last, he informed the bank of his intention to pay off ports would present to the next Congress one general, un-two-thirds of the three per cents on the 1st of October,

H. or R.]

The President's Message.

[DEC. 10, 1832

and the remaining third on the 1st of January, 1833. To this wished to let the public know it. If the bank was to be information was added the following declaration: "This wound up, as he believed the people had decided; or if has been adopted with the understanding had between it was to be continued in any form, which he hoped it us, that, if it should happen that the public moneys are would not; he desired in every case that the truth might insufficient to complete these payments, the bank will be made known. It must be the wish of all that the bank delay the presentation of any certificates, of which it may should enjoy as good a repute as it deserved. Let it be have the control, until the funds are sufficient to meet proved that public opinion with respect to it may rest on them; the interest to be paid by the United States during a firm foundation. But should the House shut the door the interval." On the 26th of July the bank replied to this request as follows: "The bank has taken the necessary steps to obtain the control of a considerable portion of those certificates, and will, very cheerfully, employ it in such manner as may best suit the convenience of the Government."

I trust I am now understood by the gentleman from New York; and if his question be not answered, he must

seek for a solution of it elsewhere.

on all inquiry; should they satisfy themselves with such a report as the agent of the Treasury might choose to make, and the ruinous insolvency of the institution should after wards stare them in the face, must they not stand com victed before the American people? Why incur such a hazard, when the plain, obvious, direct, straight-ahead course lay before them, which could do no harm, and might effect much good?

that the complaint adduced by the Executive against the bank was not that the bank had obtained control of part of the three per cent. stock, but that it had violated the tacit arrangement between the bank and the Govern ment, by holding that stock beyond the point of time st which the Government would be able to redeem it. The complaint was, that although the bank was fully apprized both of the wish and of the ability of the Government to redeem the stock within a certain limited time, the bank had, without authority, made an arrangement which trans cended that limit, and thus postponed the payment of the public debt for one year.

Mr. WAYNE said he wished to offer a single sugges Mr. HOFFMAN said that he agreed with the gentle- tion which seemed to be called for by the answer of the man from Kentucky [Mr. WICKLIFFE] that the public gentleman from Kentucky [Mr. WICKLIFFE] to the injudgment seemed to have decided that the term of the quiry proposed to him by the gentleman from New York, existence of the United States Bank should come to a [Mr. CAMBRELENG.] The gentleman accused the Gov close. But, so long as it continued in operation, it was ernment of having instructed the bank to do the very act important that its credit should be sound, and that it of which it now complained; and he rested this accusa should be rightly judged of by the country. On this tion on information derived from a letter, an extract of subject it was unnecessary and injurious to be too sensi- which he had read to the House, (and which, by the by, tive. The Executive had suggested to Congress the pro- was itself a strong presumptive proof that the gentleman priety of an inquiry into the condition of the institution; was not only very intimate with the affairs of the bank, and it was supposed by the gentleman from Kentucky but was the confidant of the institution.) Now Mr. W that this suggestion had injuriously affected the credit of would venture to affirm that when facts came to be i the bank; but he believed that an accurate comparison of vestigated, it would be found that the terms employed by dates would show that the decline in the stock had been the writer of that letter had been much too strong. He antecedent to the publication of the President's message. meant to convey no imputation against the veracity of the The decline had gone to a considerable, if not to the writer, but it would be found that he had gone farther whole extent, before the message was received. But than facts would warrant; but the House would observe though such was the fact, could any one deny--would the gentleman from Kentucky deny--that the Presidential communication might affect the credit of the bank? and should the House, after such a suggestion, refuse all inquiry into the state of its affairs, would the public mind be satisfied? If the bank was indeed sound, if the vast amount of discount which it had lately granted had not involved its concerns, and the debts due to it were all good, why, then, the sooner this was known the better. Let the public have the facts, that the credit of the bank might be indisputable, and that the holders both of its stock and its bills might rest satisfied in the assurance that it was sound and solvent. But if the fact were otherwise, Mr. BURGES said that he had hoped this bank question if there were any thing rotten in the state of its affairs, was settled, and that the corporation might have been if it had been extensively engaged in improper transac- suffered to pass into its obituary condition, without being tions, would any gentleman desire that such a state of farther baited and hunted by its enemies. The House had things should be concealed? After the suggestion had last year been deeply and anxiously engaged in the inbeen made, there remained to the House but one course, vestigation of its concerns, and yet, when the result was which was, to enter upon a thorough investigation, and known, the House had ordered no inquiry before a jury, bring the result before the country. If the bank should though that was what it would have done, and ought to prove sound, then no injury would result to the interests have done, had the bank been guilty of a violation of its of commerce; but should the House stifle inquiry, and charter. Did the Secretary of the Treasury now believe refuse to take the steps necessary to get at the truth, dis- that the bank had violated its charter? If he did, then it trust and jealousy must inevitably ensue; and the House was the duty of the President to send the inquiry to a would inflict extensive injury on all the various interests jury. Was the House about to take that question from a connected with the credit of the bank. Mr. H. did not jury to themselves? If the President had suspicions, why intend to hazard any opinion as to the soundness of the did he not send the bank to a jury? What benefit could institution; or whether it was or was not a safe deposi- result to the House, or to the nation, from this inquiry tory for the public funds. It was enough that that question It was said that the bank might possibly be in doubtful had been made. The exposure of the bank's concerns circumstances; and, if its circumstances were doubtful would not make them bad if they were indeed good. The would the House, by exciting a panic, and calling all House was informed that doubts existed, and it was only the gold and silver out of its vaults, enable it to pay its by evidence that their truth or error could be tested. debts? What did the House do last session? It examined Mr. H. said that when he reflected on the vast amount the bank, and then voted to renew its charter; and would of discounts which the bank had granted within a very they, the same men, who had voted to renew the charter short period on the decline of its stock, and the agitation of the bank, forthwith act on the supposition that the of the public mind connected with the institution, he was bank was not sound? Was it not most extraordinary not without apprehension that its affairs might be in an that the very Congress which had passed such an act unsound state, and, if so, he wished to know it, and he were now asked to raise a committee for the express and

DEC. 11, 1832.]

The Revenue Laws.

sole purpose of sanctioning the Presidential suggestion, that the bank was not trustworthy.

[H. OF R.

On motion of Mr. WATMOUGH, the resolutions and amendments were ordered to be printed. Whereupon, The House adjourned.

TUESDAY, DECEMBER 11.

THE REVENUE, LAWS.

The gentleman from the interior of New York, [Mr. IlOFFMAN,] had told the House that he was not without his doubts; the bank had discounted, and its stock had fallen. True; and what had reduced the stock? Not the suspicion that the bank was not solvent, but the settled belief that the bank would not be rechartered. Not a A petition was presented by Mr. DAVIS, of Massadoubt existed through the whole commercial community chusetts, from the merchants of Boston, praying for the as to the solvency of the bank; and, surely, commercial interposition of Congress to relieve them from the embarmen ought to be the best judges of such a question; bet rassments occasioned by the construction put upon the ter judges, certainly, than gentlemen from the interior of late amendment of the revenue laws, by the Secretary the country, who had no personal connexion with the of the Treasury. In presenting this memorial, Mr. D. bank or its transactions. Was this investigation designed observed that the law provided that goods imported beto make men cautious, and to enable the bank to pay its fore, as well as after the passage of that act, if, in the bills? He could believe no such thing. No man could original packages, and placed in the custom-house stores, be ignorant that every inquiry into a moneyed institution under the care of the officers of the customs, at any time tended to lower its credit, and unless the people scouted before the 3d of March next, should then be subject to the inquiry, conceiving it to be a mere political scheme, no higher duties than if imported after the 3d of March. the effect of the measure must, and would be, to produce The design of Congress unquestionably was, said Mr. a run on the bank, to destroy its means, to drain all the D., to extend relief to all persons who owned goods in specie from its vaults, and thereby occasion the utter the original packages, by refunding, or relinquishing the and inevitable ruin of millions of people in the course difference between the duties under the old and the new of a few months. No, cried Mr. B., give to the bank law; but it so happens that the late law is not very clear what you would give to a common highwayman and rob-in its terms, and the Secretary of the Treasury has put a ber-a trial by jury. Put it upon the country, and let construction upon it which has frustrated the intention of that country say whether it has, or has not, forfeited Congress, and does great injustice to many merchants. its charter.

The memorialists represent, and in this they are conMr. POLK said, that the proposition of this inquiry firmed by the letters of the Secretary, that no goods did not involve the question as to the necessity of the shall be entitled to the benefit of the act on which the present, or of any other national bank. That was not duties were paid, or wholly due at the time of the the question before the House; and it was mainly to passage of the act. This decision excludes from the recal the House to the real question before it, that he benefit of the act all holders of goods in the original had risen. They had been informed by the President in package where the duties were either actually paid, or his message, that serious doubt existed whether the pub. the bonds had become due, and were unpaid, although lic deposites in the Bank of the United States were safe the law seems to provide expressly that all goods importin that institution, and that the Secretary of the Treasury ed before the passage of the law shall stand on the same had taken steps to ascertain whether such were the fact; footing as those imported after. The injustice visited but that the powers of that office might prove incompe- upon merchants will be apparent, by looking at the tent to the task, and the question before the House was, credits given at the custom-house by law. On all goods whether such an inquiry should be prosecuted or no? from south of the equator, or beyond the Cape of Good And if it should, then whether it should be conducted Hope, the time of credit is eight, ten, and eighteen by a select, or by a standing committee? This was the months on the custom-house bonds. On all goods from question, and the whole question. The gentleman from Europe, eight, ten, and twelve months. On all goods Rhode Island had informed the House that he had hoped from the West Indies, six and nine months. If, therethe bank question was settled now, without raising the fore, a merchant had imported from Brazil a cargo of question whether Congress should recharter the present coffee within eighteen months before the passage of the bank, or should charter a new bank; if the House was act, he would be entitled to its provisions; but if he had informed that doubts existed as to the safety of the pub-imported a like cargo from Cuba only nine months before lic funds, it was beyond question their duty to ascertain its passage, he would lose the benefit of it. whether such doubts were well founded. The reasons The Secretary has further decided that none but imoffered by the gentleman from Kentucky, in opposition porters can have the benefit of the act, and, consequentto the inquiry, did not appear to him satisfactory. What ly, that all owners who are not importers of merchanare they? Why, that he had offered a resolution with a dise are excluded, though their goods are in the original view to getting the report of the agent of the Treasury package. If, therefore, one merchant imports a cargo, as to the bank affairs. Now, it did not occur to Mr. P. and, before it it is landed, sells one-half, the purchaser that such a report could greatly enlighten the House. At cannot deposite his portion in the custom-house; and the all events, the action of the House need not be suspend- consequence would be, if the goods pay no duty after ed to wait for it. The gentleman's second reason was, the 3d of March, the importer escapes that liability, while the delicacy of public credit, and the effect such an in- the purchaser pays the duty assessed by the old law. quiry might have upon the stock of the bank in market, The Secretary has also decided that, in order to get But did the gentleman forget that, by the charter, Con- the benefit of this act, the goods must be deposited in the gress had expressly reserved to itself this power of exami-custom-house before the first day of January next, though nation? and the delicacy of public credit was no argu- the law only requires that they should be deposited be. ment against its exercise; and he fully concurred with fore the 4th of March next. the gentleman from North Carolina, [Mr. SPEIGHT,] that Congress, Mr. D. said, never intended to make a law if there was to be any inquiry, it ought to be conducted by a select committee.

with such provisions as these. The act might be, and he thought was, rather doubtfully expressed in the 18th section, but the design was to treat all citizens alike; to extend its benefits to all holding goods in the original package, that there might be no complaints of injustice;

Mr. WATMOUGH said, that he rose, not for the purpose of entering into the debate, but to move that the committee now rise. He made the motion accordingly, which was carried, ayes 101; whereupon the committee and, as the memorialists could obtain relief in no other rose, and,

way, they sought the interposition of the Legislature to

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