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Aggregate statement of the condition of the banks of the state of New York, on the first day of April, 1835, taken from their reports made to the bank commissioners, pursuant to law:

Resources.

Discounts,

21

27

47

N. York N.river & Country
cty banks L Isl. bks.

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82,484

Expenses &per'nal est.

214,516

Bank fund,

403,889

Specie,

3,329,298

Bank notes,

4,637,553

Due from city banks,

Cash items,

"fm oth. bks & corp. Other investments,

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banks.

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ing avowal of a determination to persist in subject-[
ing the people of this country to the evils of an ir-
redeemable and depreciated currency, and by the
undisguised threat, that the vast moneyed power
subject to his control, will be brought in, with all
the strength of interest, of passion, and of fear that
he can combine with it, to arrest the efforts of the
sound banking institutions to stand once more be-
26,620,701 10,889,439 14,224,659 fore the world in the full discharge of their obliga- Maine,
Owing by our banks.
3,107,979 631,632 431,051 tions. The advantages which a successful return New Hampshire,
978,627 450,852
561,950 to specie payments on the part of the banks of this Vermont,
45,256 83,015
state would confer upon our great commercial em- Massachusetts,
68,644 119,480
124,403
183,394 poruim-and its reflection of indelible disgrace up- Rhode Island,
714,599
on the arrogant institution, which in contradiction Connecticut,
803,993
New Jersey,
403,537 of all its past assumptions, and regardless of every
680,816
Virginia,
225,372
174,967 obligation of morality and of sound banking, North Carolina,
394,297
4,067,080 1,424,779 2,892,143 shrinks from the fulfilment of all its high assuran-
4,886,923
384,025 ces to the public-leave no room to doubt that that Kentucky,
Flor da,
313,999
2,191,244 535,996 151,621 institution will pursue its purpose with the reck- Illinois,
lessness of faith and duty, which has, on too many Ohio,
50,745,666 16,274,712 20,423,885 occasions, marked its course of assault upon the
best interests of the American people.
Under these circumstances it becomes the duty,
18,111,200 7,085,260 9,155,000
2,322,186 2,334,529 6,300,900 not less than the pride of our state, to interpose
6983,014 124,413
136,521 "the use of its credit and the sanction of its name
1,698,908 514,147
632,064 to shield its institutions and its citizens from harm"
5,524
2,920 and in assuming the responsibilities demanded by
42,178 the occasion, governor Marry will be cheered, we
1,365,637 do not doubt, by the approval of the people, and
40,266 the unqualified thanks of all the friends of a sound
184,145
currency. Of the manner in which this executive
317,921 duty has been discharged, the message speaks for
4,480,682 1,683,632 2,084,322 itself in terms that place the measure upon an im-
1,937,732 88,180 112,011
pregnable basis.

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Total liabilities, 50,745,666 16,274,712 20.423,885
Total resources of the ninety-five banks.
Discounts,
Loans

Real estate,

Over drafts,

Expenses and personal estate
Bank fund,

Specie,

Due from city banks,

Bank notes,

Cash items,

Due from other banks,

Other investments,

The benign effect of the measure, however, if
carried out by the legislature, will be preventive.
It will hold out the assurance of an all-sufficient
51,734,799 aid, if the emergency shall demand it; and this as-
4,170,662 surance, teaching the futility of hostile attacks
1,991,429 from abroad, and inspiring confidence at home, will,
215,755 in all probability, render a resort to it unnecessary.
402,640
716,686 So that by its direct application, if need be, or
4,847,890 through its influence, it will serve, in the language
5,721,956 of the message, "to sustain our state institutions
794,636 against hostile attacks from whatever quarter they
8,384,002 may come, and to enable them to grant such assis-
5,534,947 tance as will invigorate all branches of industry,
2,878,861 call forth the energies of the state, and give an on-
ward movement to its business concerns."

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Wisconsin,
Canada,

1,585 71,592

The committee of banks in the Massachusetts legislature have reported in favor of a suspension of the law which subjects the banks to 24 per cent, on protest of their bills, on condition that the Boston banks pay specie for bills of and under five dollars, and country banks for bills under five dollars.

The associated banks of Boston in the week ending Saturday, April 14th, increased their specie $4,000, decreased their circulation $39,000, and their loans $456,000.

From the Albany Evening Journal of the 15th. ult.

THE RELIEF BILL DEFEATED. We doubt whether, in the annals of executive and legislative profligacy, a parallel can be found for the infamy and corruption which marks the course of the state administration upon the question of relief to the banks and the people, in anticipation of the resumption of specie payments.

Some time since, in view of the crisis which approaches, the bank committee of the assembly reported a bill authorising the banks to issue notes and to subscribe for the state stocks. In these measures there was aid to the banks and relief to the people.

The governor, ever ready to make political capital out of the distresses of the country, sent a special message to the legislature proposing an eight million loan to the banks, for the alleged purpose of

Statement of the condition of the Bank of England, sustaining them against the imaginary hostility of 6th March, 1838.

34,351,460
Liabilities.
10,957,615
959,842 Circulation 18,600,000 Securities
2,891,225 Deposite

8,444

Bullion

Mr. Biddle.

Assets.
This message was referred in the assembly to a
22,792,000 committee whose able and eloquent report, already
10,015,000 published, places the whole question in its true
light before the people.

11,535,000
77,055
30,135,000
32,807,000
14,441,554 They who estimate the gold and silver in this
112,780 country at $50,000,000, or $60,000,000 even,
4,423,167
can see that they are wild, if the bullion in the
8,776,562
Bank of England be a proper basis for a compara-
8,253,636
tive estimate.
2,187,923

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In the meantime the assembly passed its bill, which authorized the banks to take the state stocks in the same manner that they received $2,700,000 under a law of the last legislature. The same bill permitted the country banks to issue once and a half the amount of their capital, a measure of indispensable importance to the people. It further authorized an issue of post notes, a proper measure of protection to the banks and the people in the event of another pecuniary revulsion."

The Albany Argus says a comparative statement of the above report, with previous reports, shows the following results: June 1. March 1. April 1. Loans & disc❜nts, 64,391,299 52,288,288 51,734,799 Specie, 2,802,313 4,092,793 4,847,890 Circulation, 14,940,498 11,107,350 Due canal fund, 3,052,598 2,833,221 Due state treasurer, 2,152,950 31,169 Due U. S. treasurer, 4,143,389 174,996 8,444 other banks paid specie would be doubly fortified. of those stocks to the banks by the state officers, "Ind. depositors, 14,516.813 14,375,291 14,411,554 of a inan who is obliged to pay his own debts, when terms, contained in the 6th section of the bill sent 77,055 There is, however, a greater difference in the condition upon the following abject, degrading, and infamous Profits, 6,329,726 8,057,769 The above statement shows a diminution of loans ceive from those indebted more than he is required to 8,253,636 others do not pay him, than there is when he can re- from the senate:and discounts for the last month of $553,489; an pay. This is to a great extent the position of our increase of specie of $755,097; a diminished cir- banks. culation of $149,735; an increase of canal fund deposites of $61,004; of individual deposites $66,263; a diminution of the state treasurer's deposites of $22,725; and of the U. S. deposites $97,941.

This bill, liberal of relief and protection, and wise and guarded in its provisions was sent to the senate. That body, "true to its instincts," struck out both the post note section, and the section $44,425,203 which enlarged the issues of the country banks. 10,957.615 273. A large portion of which belongs to banks out of subscribe for the state stocks, provided for a loan The amount of deposite due individuals is $11,862,- The senate then, instead of allowing the banks to 2,894,225 the city. Our banks are strong in securities, and if

The "Argus" accompanied the publication of governor Marcy's special message, recommending the loan to the banks, with the following remarks. "This recommendation is made under circumstances of the highest interest and importance. The banks of this state, under a just appreciation of their obligations to the community, and in compliance with the public will and expectation, have announced their determination to resume the payment of specie on the 10th of the next month. In the discharge of this great duty, it is apparent that they will not only in all probability stand alone, but that they will encounter the active hostility of a powerful moneyed institution, and such as it can control. All doubt on this subject is removed by the published letter of Mr. Biddle, by his unblush

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against the hostile operations of any non-specie paying $2,571,633 bank or banks of any other state or country-such 2,541,397 492,013 proof shall be placed in the comptroller's office. This vile and corrupt proposition, from a party 2,388,733 which has made itself hoarse for an entire year in shouting for "separation" and a "divorce" of the $19.856,049 government from the banks, must fill the public mind with amazement! What is this proposition.

Assets and means of payment, besides real estate and stripped of its verbage and exposed in its naked

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deformity to the world? Why it is to place eight $3,449,890 millions of dollars in the hands of Messrs. Flag, 555,943 Dix & Co. as a political corruption fund! It is a 797,873 500,769 foul use of the money of the people, to lure the 659,215 banks into the service of the regency. It is a pros115,087 titution of the treasures of the state. It is a bribe offered to the cupidity and avarice of banks-a bribe, too, upon terms so infamous and degrading, 1,041,696 that no bank, not utterly insolvent and abandoned

in circumstances and character, would ever consent to take. It is scarcely necessary to add that this proposition-a proposition so foul in its design, so corrupting in its tendency, so dishonorable to the banks, so unworthy of the character and dignity of legislation, was promptly and indignantly rejected by the assembly.

The senate, utterly regardless of the common welfare, and intent only upon their grovelling party schemes, adhered to their own corrupt bill.

The house proposed a committee of conference. That committee met. The result of their conference will be found in another column. It will be seen that the committee from the assembly proposed to yield all the provisions of their bill except that one which authorized the banks to take the state stocks; and it will also be seen that the senate's committee refused to take that section without coupling with it their own 6th section, which required the banks to furnish written evidence of their insolvency, and put on the regency collar, before they could receive any portion of the corruption fund.

furnish the only evidence which it was in their trality with regard to Texas. But, as I have expower to procure. Mr. Henry C. Jones, with press orders to demand a prompt and categorical whom this charge appears to have originated, was answer upon both points, you will permit me, sir, permitted by the committee to be constantly pre- to request, earnestly, that you will immediately sent at the examination of the several witnesses, submit this note to the president, and that you will and to suggest all such questions as the committee entreat him to be so kind as to let me know the believed had any relation to the matters under in- result as speedily as possible. vestigation.

After all the witnesses had been examined, except general Wall, whom Mr. Ruggles stated would be the last he should call, Mr. Jones informed the committee that he wished to be discharged, that he might return home, where his business required his presence. He was informed that he could be discharged, if such was his wish, but that if he chose to remain, he would be permitted by the committee, after the evidence was closed, to make any additional statement or explanations he might think proper. He, however, preferred being discharged, and, as the committee suppose, went home. When the taking the testimony of the witnesses was closed, Mr. Ruggles informed the committee he was then willing to submit himself to an examination, on oath, touching any of the matters alThe assembly adopted the report of its commit-leged against him, if the committee wished such tee and insisted on its non-concurrence with the an examination. No member of the committee defoul and corrupt proposition of the senate. The siring to put any questions, Mr. Ruggles was not senate adhered to its profligate bill, and is left in sworn. He was informed the committee would reits infamy. ceive any observations or defence he might choose to submit to them in writing. He submitted the documents herewith presented, being a synopsis of the evidence, and his remarks upon the merits of the case.

The question is before the people, to whom their representatives are responsible. The course of each house will be scrutinized. That scrutiny will exhibit on the part of the assembly, an ardent and faithful devotion to the general welfare; while on the part of the senate, nothing will appear but a sordid, base, corrupt adherence to the views and purposes of a sinking, desparate party.

REPORT

IN THE CASE OF SENATOR RUGGLES.

In senate, April 12. Mr. White submitted the following report:

The committee have carefully considered all the evidence produced in relation to the charge which grew out of the transaction between Mr. Ruggles and Mr. Jones, relative to the lock, and the uses to which it was to be applied, and have unanimously come to the conclusion expressed in the following resolution, which they recommend to the senate for adoption:

Resolved, That there is no satisfactory evidence The select committee appointed in pursuance to sustain the charge made by Henry C. Jones of a resolution adopted on the 21st of February against the hon. John Ruggles, and that it is inexlast, by the senate, ask leave to submit the follow-pedient for the senate to take any further measures ing report, in part discharge of the duties assigned in relation thereto.

to them:

As soon after their appointment as they conveniently could, to wit, on the 23d of February, the committee met and organized themselves. Their first object was to ascertain what were the duties assigned them by the senate. To do this they had recourse to the resolution under which they had been appointed. That resolution contains nothing on its face which is specific, but refers to a letter written by the honorable John Ruggles, one of the senators from Maine, and addressed to another member of the senate.

By recurring to that letter, it was found that a charge of corruption had been made against Mr. Ruggles, in one of the newspapers published in New York. The resolution and letter, taken in connection, made it the duty of the committee to inquire into the truth of this and other similar charges against the said senator from Maine.

Upon inquiry, the committee ascertained that the substance of this charge consisted in the supposed corrupt conduct of Mr. Ruggles, while a senator of the United States, in endeavoring to acquire an interest for himself for corruptly assisting Henry C. Jones, a citizen of Newark, in the state of New Jersey, to obtain from the patent office of the United States a patent for a lock, and aiding him to procure a contract with the post office department, by which his patent locks and mail pouches or bags to which they might be attached, should be used to secure the mail of the United States in its transportation from one post office to another.

The committee having thus ascertained the specific charge inade, directed their chairman to notify Mr. Ruggles that they were ready to receive any written answer he might choose to make thereto. This duty the chairman performed, and a copy of his letter to Mr. Ruggles is herewith presented. Mr. Raggles furnished to the committee his answer, which is herewith presented.

The committee caused a subpoena to be issued for the said Henry C. Jones and such other persons as they had reason to believe could give any evidence tending to establish the truth of the said charge; and also caused subpoenas to be issued for all such witnesses as Mr. Ruggles alleged could give any useful evidence in his behalf.

The several witnesses thus summoned appeared before the committee, were sworn, carefully examined and cross-examined, their testimony reduced to writing and severally subscribed by them, and the testimony thus procured is herewith presented, in eighteen depositions.

These depositions, and the papers referred to in and attached to them, appeared to the committee to

From the Globe of Saturday night.

THE UNITED STATES AND MEXICO.

We present below the correspondence between the secretary of state, and the minister plenipotentiary of Mexico, in relation to a proposed reference to an arbiter of the complaints of the United Slates against the Mexican government.

MR. MARTINEZ TO MR. FORSYTH.
[TRANSLATION.]

Mexican legation, New Orleans, April 7, 1838. SIR: By the note which I had the honor to address to your departinent on the 23d of December, 1837, I communicated to you information of the law passed by the general congress of Mexico, on the 20th of May of the same year, fully authorizing the executive to propose the arbitration mentioned in the first article.

His excellency the president, being convinced that this is the most effectual means of terminating at once the evils to which Mexico and the United States are now subjected, and of re-establishing upon solid bases, the relations of friendship and good neighborhood between the two countries, has ordered me to propose it.

Therefore, in virtue of such order, and feeling certain that the United States are animated by the same sentiments with Mexico, I have the honora ble satisfaction to address you, and to assure you that my government will with pleasure, and with the utmost good faith, submit to the decision of the power which may be chosen by common accord. It is always disposed to a definitive and formal settlement, by means of which new difficulties between the two nations may be avoided, and the differences which have disturbed their harmony may be eradicated.

If the government of the United States should agree to adopt this arbitration, and should think proper to give assurances that it will continue to take effective measures for the preservation of the most strict neutrality during the Texan war, as well as for preventing, by all possible means, the supply of such aid as may be projected in these states; in such case, I will have the honor, agreeably to my instructions, to name to you, sir, the power to the judgment of which Mexico is ready to submit the decision of the differences now unfortunately subsisting.

I avail myself of this opportunity to have the honor to repeat to you, sir, the assurances of my most distinguished consideration.

FRANCISCO PIZARRO MARTINEZ. To the hon. JOHN FORSYTH,

Secretary of state of the United States.

Mr. FORSYTH TO Mr. MARTINEZ. Department of state, Washington, April 21, 1838. SIR: I have had the honor to receive, and have laid before the president, your note of the 7th instant, proposing a reference to a third power of the reclamations of the government of the United States on the Mexican republic. I am directed to acquaint you, in reply, that whatever may be the anxiety of this government, to obtain satisfaction for wrongs inflicted upon its citizens, it appreciates too highly those principles of philanthrophy to which yon allude, to be desirous of proceeding to extremities when they can be honorably avoided, and without doing injustice to those whose interests it is bound to protect.

Your proposition, which you state is based on the first article of the law of the Mexican congress of the 20th of May, a copy of which was communicated with your note to this department of the 23d of December last, which is in these words: “Se autoriza al Gobierna para que pueda transigir en la reclamaciones que haya heche, o hiciere el de los Estados Unidos del Norte, y para que en aquellas en que no puedan convenirse, sugite la decision al juicio de una potencia amega, conveniendo en esto los mismos Estados Unidos," is consequently accepted, and I will be ready to enter with you into the negotiation of a convention upon the basis of that article, for the purpose of arranging the parti culars of the arbitration, whenever you shall present yourself clothed with competent powers.

The posture of the relations between the two countries makes it proper that this should be done immediately, as the president will not feel himself authorized to recommend any suspension of the action of congress, to whom this whole subject has been referred, before a convention of arbitration has been concluded between the two governments.

The president has seen, with surprise, that in the absence of any new inducements to change the cardinal policy of this government, assurances appear to be expected of continued neutrality by the United States, in the war between Mexico and Texas. He directs me to refer your government for the security it desires in this respect to those principles of rigid impartiality between foreign powers at war which the United States have always avowed, and which the executive has endeavored to enforce by all the power which the laws confer for that pur

pose.

I embrace this opportunity to offer to you renewed assurances of my great consideration. JOHN FORSYTH.

Senor DON FRANCISCO PIZARRO MARTINEZ, &c.

MINORITY REPORT OF THE COMMITTEE

OF WAYS AND MEANS.

Mr. Sergeant, from the committee of ways and means, subinitted the following report, as the views of the minority of that committee upon the subjects to which it relates.

REPORT.

The minority of the committee of ways and means, dissenting from the report of that committee upon "various memorials relating to the currency and a national bank, and the report of the secretary of the treasury on the finances, recommending further provisions for the collection, safe-keeping, transfer, and disbursement of the public money,' submit the following report:

The measure proposed by the committee, in accordance with the views of the executive, contemplates a radical change in the system heretofore in use for the collection, safe-keeping, transfer, and disbursement of the money raised from the people. Its alleged necessity is founded entirely upon the suspension of specie payments by the banks in May last. Its end and object are, professedly, to separate the government from the banks; but, really and substantially, to separate the government from the There can be no doubt that the president will people; so that the disorder and embarrassment in admit without hesitation, the philanthropic means the currency, which are so disastrously felt in all now proposed for restoring the relations between the branches of industry and business, may be retwo nations which should be on friendly terms; or moved from the treasury and the officers of the gothat he will refuse to give the guarantee to which vernment, leaving them to operate, without check or my government is justly entitled, of rigorous neu, relief, and even increasing the intensity of their mis

66

chievous operations upon the community; and to accomplished this purpose, it would also be benefi- question is easily understood, in the aspect in which provide for a like exemption of the treasury in all cial to the government, was, in those days, believed it is now presented. Is this portentous novelty the future from any the least liability to the influence and accepted as a self-evident consequence, too worthy to be imbodied in the forms and clothed with of similar contingencies, however severely they may grateful to be contemned for its simplicity, or to be the powers of law, or is it not? That is the first press upon our fellow-citizens. rejected, because it did not require a dangerous re-question. A great question it certainly is; one The ground upon which this unequal and start- finement of argument to solicit its adoption. Com-which ought to be long and deeply pondered by the ling proposal is rested by the president in his mes- mon sense perceived, at once, that a method of pro-people before they consent to surrender to the gosage to congress at the opening of the special ses- ceeding in which the great interests of the people vernment the control of their interests and welfare, sion, is, that the government has nothing to do with were first consulted, could not be otherwise than to such an extent as the concession demanded would the currency and exchanges. Interpreted by the practically conformable to the injunctions of a con- imply. measures, he then recommended, and still persists in stitution which bars in its front the declaration that This, then, constitutes the first objection to the recommending, this exclusion of the obligation of it is established by the people of the United States new scheme proposed. It is to introduce a false and duty must be taken with an important limitation.-"in order to form a more perfect union and promote dangerous, and, as the minority of the committee The government, we are obliged to understand, has the general welfare;" words which plainly import think, very odious principle. They do not mean, at nothing to do with currency and exchanges for the that all the powers therein conferred were for the present, to discuss the nature of that principle. Still people. It is only to provide for itself, and, of benefit of the people, and not for the ease, conve- less do they intend to examine the character of the course, to provide the best. The people are to pro-nience, or benefit of the government. In a more re-machinery to be employed, or how it will work upon vide for themselves, and to get what they can, with- cent, and, perhaps, it may be termed a more memo- the interests and welfare of the people. These may out any aid from the government. They are to have rable instance, the same object, of improving the be considered hereafter. Their object, now, is to an inferior currency, and to manage their exchanges currency and the exchanges, was made the ground say that all the machinery is avowedly designed to as they now do, or worse; with the possible chance, of action by the government. The removal of work to one end; and that end is, to give life and when this new scheme shall have attained maturity, the deposites, and the overthrow of the Bank energy to a principle which they deem to be false of being able to buy a part from the government. of the United States, were to give us a better and destructive. Whether it be called a sub-treasury, Before entering further into the examination of currency. The connexion with state banks was jus- as it heretofore has been, or be designated by the this new, and, we must say, extraordinary and por- tified by the assurance that it would be efficacious to more significant appellative of an independent tentous scheme, a consideration forces itself irresis- this intent. It is not necessary here to inquire how treasury, as it now is; whether its authors set it tibly upon our attention, deeply connected with the far this purpose has been achieved. The object forth with a title importing only a new train of demost vital principles of our government, and inse-now is simply to note the fact, that, throughout the pendents upon the existing treasury, or more boldly parable from a just regard for the welfare of the whole period from the removal of the deposites to and truly proclaim it as an original and independent union. Is it, we are impelled to inquire, consis- the close of the year 1836, the currency and the ex-creation; there can be no doubt that independence tent with the purposes for which our government is changes were uniformly held forth as legitimate ob- is its most striking and cherished attribute in the esestablished is it reconcileable with the terms and jects of the care, concern, and action of the govern- timation of those with whom it has originated: indespirit of the constitution, to suffer a great link to be ment. In the eventful act of the specie circular, the pendence of the people, and, if we mistake not its thus broken, which connects the interests of the go-duty and power of the government guardianship nature, independence by elevation above them.— vernment with those of the people-to destroy the over the affairs of individuals were carried much This, it is confidently believed, is an insuperable obsympathy which, by its means, is established be- further, and, in the opinion of the minority of the jection, and, as such, the minority submit it. tween them, so that a shoek to the one is promptly committee, to a most unwarrantable length, as it Another, and, in the opinion of the committee, and sensibly felt by the other, and the instinct of professed to be intended to check speculation. Of most decisive objection to the measure, at the preselfishness is brought in aid of the suggestions of the same nature, and founded upon the same conces-sent time, is, that the people of the United States, duty, to quicken them into action? Is it expedient sion, were the efforts of the executive government to who are deeply interested in its fate, have not had to establish such an "independent treasury," or encourage, and even to force, the importation of spe- an opportunity allowed them to act upon it. If the whatever else it may be denominated, as will make cie, beyond the natural demands of trade. How- argument of the president in his message at the bethe government independent of the people, and dis-ever mistaken these measures may have been, and ginning of this session of congress be correct, they inclined to aid them in those matters in which its aid whatever untoward effects they may have produced, have not even been allowed an opportunity effecis essential and indispensable? If we look into the they still carry with them the acknowledgment of tually to deliberate or to express an opinion. In his constitution, we there find a duty enjoined, (for a a constitutional duty to care for the currency and judgment, as there expressed, it would seem that grant of power is an injunction of duty,) to regulate exchanges, as well for the people as for the govern- the will of the people cannot be so pronounced as to commerce; and every one acquainted with the his- mentor, rather, as it ought to be said, for the peo- be entitled to respectful attention, unless it be by tory of that instrument knows that the want of such ple first, and then for the government. an election held for the federal government." He a power was among the chief inducements for as. By a singular concurrence, it thus happens that proceeds to say that but one such election has been sembling the convention which framed it. No uan the Bank of the United States has been twice made held; and, to weaken or to destroy the force of the of sound mind can suppose that commerce can be the witness of the settled construction of the conclusion universally believed to be deducible from carried on without currency and exchanges, nor constitution. Its establishment, and its overthrow its ine, he adds, that "the early day at which it that commerce "between the states" can be well have both been accompanied by the same as- [the election] took place, deprived the measure unregulated by a government which takes no care of sertion of duty and of power, in the particular der consideration of much of the support it might currency or exchanges; and deems itself absolved now under consideration. To be sure, there is otherwise have derived from the result." Local from all obligation to aid in establishing and main-a striking distinction between the circumstances of elections, he intimates, may have been influenced taining them. If we regard the practice under that the two periods of assertion. In the first, there was mainly by local interest, to use his own language, constitution; if we will receive instruction from the admitted disorder in the currency and exchanges," far deeper and more immediate than the fiscal concurrent conduct and opinions of all the states- calling for a remedy. A remedy was accordingly plans of the national treasury." In particular, be men of the United States, from the time of its adop-applied, to relieve from palpable and dangerous dis- suggests that their interests in banks “ may have extion to the commencement of the last session of con- ease, according to its indications. In the last, the ercised a far greater influence over the result," than gress; if we are willing to be taught by the acts, currency and exchanges were in health. Being so, a question in the administration of the general gothe thoughts and opinions of fifty years, and abide they could not indicate a remedy. Any application, vernment; "more remote and far less important in by the construction they have established, we shall therefore, could only be an experiment; and that, its bearing upon that interest." be compelled to reject, as a manifest political heresy, not in corpore vili, but upon the whole circulation, and doctrine which teaches that indifference to these trade, industry, and interests of the country. Up to great interests is allowable in the governinent of the the end of the year 1836, it was alleged that the exUnited States, and, still more, any doctrine which periment had succeeded. No one thinks so now. inculcates disregard to them as a duty. No! From The proofs to the contrary are unfortunately too nuthe establishment of the constitution to the present merous and authentic. They are everywhere preday, the sympathy between the people and the go- sent; not requiring to be sought after, but obtruding vernment has always been regarded and maintained; themselves upon us. If it were possible to get back and the duty it inculcates, and at the same time into the position of 1833, effacing all that has since vigorates, of supporting, by all the means within the limits of the constitution, the inedium of circulation, so as to foster commerce and industry, has been acknowledged and obeyed as one of the first, if not the very first and plainest requirement of an American Upon this new principle, thus for the first time statesman. When the currency became deranged propounded, the new system, by whatever name it during the war with England, no one doubted that may be called, is manifestly founded. Its aim and The minority of the committee might have doubted it was the part of the government of the union to end are to give to this principle an active existence the propriety of entering into this inquiry, and still provide a remedy. President Madison, whose tho- and a living power in the affairs of our country If more of proceeding further in it, but for the examrough acquaintance with the constitution, and whose the principle itself be false and destructive, then it ple offered by the president in his message. Fortiimplicit obedience to its dictates, must be conceded must follow that the system which is to give to it fied by that authority, and instructed by him, from by every one who knows any thing of the character organic and enduring life, a capacity for action, and the careful attention he has bestowed upon this of that eminent citizen, of the power he exerted in overbearing power, so that it may work by itself, point, and the space he has allowed to it in such a bringing about the convention, the large share he and for itself, is also objectionable in the same de- paper, that, in his opinion, these demonstrations are had in its proceedings, and the distinguished stations gree, and ought to be condemned. Those, for ex- of great value, if their force be not counteracted by he afterwards held-president Madison felt so deeply ample, who are of opinion that a separation of the the objections he has made to them, we deem it the reality and importance of this duty, that he government from the people in the concerns of busi- right to dwell a moment longer on the subject. We yielded to it a scruple he had long entertained about ness and money, so that the government may have hold it to be certain that, in forming their opinions the power of congress, and gave the sanction of his a currency of gold and silver, and the people only a and expressing their will, the people had a due rehigh authority to the establishment of a national depreciated paper-that is, one currency for the gov-gard to their interests. We hold it to be equally bank. The late Bank of the United States was re-ernment, and another and an inferior one for the certain that this was a lawful and constitutional recommended, by the then secretary of the treasury, people-is repugnant to the genius of our institu- gard, which cannot justly expose them or their de(Mr. Dallas,) as the remedy for a deranged curren- tions, and will be mischievous in its operation upon cisions to reproach or disparagement, nor lessen cy; the bill for its establishment was reported by a the public interests, must of course be opposed to their claim to respect. We are satisfied. also, and committee on the currency; and the chief argument every system, to all legislation, and to all machinery we have never heard it doubted, that at the time of in its behalf was, that it would regulate the currency provided by legislation, which has in view to create the elections alluded to, they felt and believed that in a manner beneficial to the people. That, if it and maintain such a separation. Thus simplifed, the their interests had already been injuriously affected

occurred, and restoring all that has been lost, it is
believed that one great acclamation would instantly
break forth. "As you were," would be its simple
but emphatic import.

In this summary it will be seen, is comprehended every authentic mode of expressing the opinions or will of the people, by organic, constitutional means; and each and every of them is evidently, not to say studiously, disparaged, in a manner calculated, if not intended, to destroy its claim to attention or respect. The minority of the committee by no means concur in the view thus taken by the president of the demonstrations of the public opinion and the public will. To the common apprehension, they have been plain and significant, beyond doubt or question, and every where received as such. The same understanding still continues, and there is a daily accumulation of evidence to prove that it is correct.

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veyed as to be entitled to respect, (which is by no ❘ then, is to be thought of it, when it is still further means admitted,) then it will follow that they have aggravated by the fact, that the proposition thus to not since had the power even to express their opin-dissolve the fellowship of long standing between the people and the government, in the concern of circu

by the acts of the general government; and that this specific project of a sub-treasury, then recently for the first time propounded, if carried into an act, would work their ruin. Their attention was, there-ions. fore, closely drawn to this deeply interesting plan, If this were a matter in which the people had no lation and currency, is made when calamity and diswith unusual anxiety. The elections turned upon it. very obvious and direct interest, so that its decision tress are every where among the people, inviting Every other question was absorbed by it. Whole one way or the other would not be perceptibly felt sympathy and calling for exertion, on the part of the states, including the greatest state in the Union, by thein, such a course of proceeding would be like government, to administer relief? What is this, were almost simultaneously revolutionized, (no oth- that which is followed in the ordinary measures of but to say that it was only a sunshine connexion? er term will express the meaning,) with a rapidity, government. But such are not the characteristics When the storm comes, there is a shelter for the and to an extent, and with a harmony of purpose, of this measure. The alarm it has caused, the anx-government, but the people must abide its peltings. which disclosed, beyond a doubt, the agency of a iety it has produced, the loud and determined op- Such a proposition, at such a time, is susceptible of great and general cause, far surpassing in power, position it has encountered-among classes, too, but one further aggravation; and that is not wantand actually overcoming, all local causes, and even who do not generally take part in political contests; ing. It is brought forward and urged to a decision, breaking down the habitual combinations of party. the earthquake force with which it has shivered before the people can act upon it by their elections. A common feeling of danger from this very measure; party alliances, setting free individual opinion and As they have so deep an interest in the question, a a determined opposition to it, as threatening des feeling, and making them paramount to every other due respect for their rights demands that a decision truction to their interests and rights, and tending un- consideration; all these are proofs that the people should not be precipitated till their opinions can be duly to aggrandize the executive, by the union in feel, believe, and know, that their interests are authoritatively expressed, so as to enforce obedience. his hands of the purse and the sword; a clear and deeply involved. And surely they are not wrong. Perhaps it may be urged, in reply to this course of deep objection to the theory of a currency of gold Surely it must be conceded that such a change in remarks, that if the people are dissatisfied with the and silver for the government, and of depreciated the currency and circulation (to say nothing of its measure, they can hereafter rid themselves of it. paper for the people; a sure foreboding that a go- other evils) must come home to every individual, as In an ordinary case, such a reply would not, pervernment bauk, adininistered by the government offi- if the air they breathed were withheld or were haps, be without some weight. But the minority of cers, would ultimately grow out of this scheme, loaded with pestilence, or the waters were dried up the committee are of opinion that the measure in however it might now be hid under the humble dra- or poisoned. Starvation is the poor man's lot, if he question is of no ordinary description. They have pery of a few sub-treasuries, with safes and vaults; cannot be employed and paid. Employed and paid already referred to its probable (as they think, cera conviction that the system of credits, under which he cannot be, if trade and industry be palsied or tain) effects upon the interests and concerns of the they had prospered, was aimed at-these, with a paralyzed: and so they will be (as unhappily, we people, as giving to it an extraordinary character. sense of insecurity, and other like feelings and con- too well know from experience) if the circulation They might insist, also upon the change it is desvictions, raised that spirit which pervaded whole be withdrawn, or forced into unnatural distribution, tined to effect in the relation between the people and states, and sent their free citizens, in irresistible or driven into cavities where it contributes nothing their government, by aggrandizing the latter, and masses, to the first ballot-boxes that were open to to general health and vigor. A rapid increase is clothing it with new power and patronage, at the them, there to make known their will. If they eventually dangerous. A rapid diminution works at expense and to the detriment of the former, as encould then have elected representatives in congress, once violently and destructively. Property and pro-titling it to the same distinction. Whatever, indeed, no one can doubt how this house would now have duce fall, money rises, debtors are ruined, enter- they have hitherto submitted, or may hereafter subbeen constituted on the question of a sub-treasury. prise is checked, business and industry are prostra-mit, will be found to concur to the same end; that In point of fact it is certainly true, as stated by ted, and labor is without employment. Capitalists, is, to establish that what is now termed "an indethe president, that "for one state only has an elec- and those who have fixed salaries, are the only gain-pendent treasury" ought not to be set up in the land, tion been held for the federal government." The ers-the latter especially. If money be doubled in until the people's assent is first fairly obtained.-demonstration in that state was coincident and con- value, their income is doubled. But, to effect this, Desirous as they are to avoid recurring to topics current with that of the states before referred to. taxes also are doubled; the same amount expressing which may seem in any degree, to revive the irritaSupposing, as seems to be admitted, that such an twice the value. The creditor receives two-fold: tion of past conflicts, they are, nevertheless, obliged, election is a correct exposition of the views of the but the debtor pays two-fold. An estate that was in justice to the subject, to say, that all the measures state as to federal acts, and is the unquestionable re- inortgaged for half its worth, will not pay the mort- of the executive government for the last four or five sult of a general cause, then it must be obvious that gage. Stocks, accumulated from the produce of years, touching the currency and circulation, have such coincidence and concurrence become a new labor, will not pay the cost of production. Where, been in advance of the people, or contrary to their and powerful proof of the interpretation of the elec- then, the circulation is confessedly redundant, no opinions and wishes. More distinctly-they hope tions in the other states. How far the force of that one can deny that it is worthy of the care and con- inoffensively-they would be understood to mean election is weakened, if at all, by the suggestion, cern of a wise government, and, above all, of a re- that, if the people had been previously consulted, that "the early day at which it took place deprived publican government, to aid in guarding against the they would have been (and where they were conthe measure under consideration of much of the violence of reduction, and the extensive derange-sulted, they actually were) opposed to those measupport it might otherwise have derived from the re- ment, ruin, and misery, it would occasion. This sures. Both houses of congress passed a law to result"-meaning, it is supposed, that if the people can be done by a cordial co-operation between the charter the Bank of the United States. The presihad thought longer they would have voted dier- government and the business of the country; and it dent vetoed it. Here, the executive annulled the ently-it is not, perhaps, easy to say. On one side cannot otherwise be done. The government has an act of the people's representatives. The deposites there is a fact, and on the other an hypothesis. If interest in the circulation, by reason of the large were removed. This was the act of the executive the latter can outweigh the former, then there can, revenue it now collects and disburses. The people alone. A connexion was formed with state banks, in no case, be a certain conclusion; for, in every have an interest in it, by reason of its connexion and the public treasure confided to them, under the case, ingenuity may devise an hypothesis to raise a with their business. These interests are common, sole authority of the executive. A new function doubt. The election in question was more than two and they ought to be one. They are still more inti- was next assumed by the treasury, of directing the inonths after the sub-treasury message to congress mately and kindly connected. The government has management of the banks; telling them when they at its special session. Whether the judgment of the an interest in the circulation of the people; because were to grant facilities, and when they were to people of that state is so matured as to be worthy of it is essential to the general welfare, which is an in- strengthen themselves with gold and silver; both of reliance at the end of such a period, or how much terest of patriotism; and because it is necessary to which have proved disastrous to the banks and to longer they require to attain a maturity to be relied enable them to pay their dues, which is a treasury the country. Then came the specie circular, proupon, are questions which, for obvious reasons, it is interest. The government has a power over the fessing to have for its object to check speculation in not desirable to discuss, and which, therefore, are circulation, by the large amount which comes under public lands, since confessed to have been inadepassed over. Their will requires no time to ripen; its control. What it rejects, must be depreciated. quate to its purpose; but, unhappily, too sufficient in it is mature, and exacts obedience whenever it is What it receives, is thereby increased in value. Its producing public mischiefs, which were not intendlawfully expressed. own inconvertible paper, even its dishonored paper, ed. A bill passed both houses which repealed the But were it adinitted that all that is said in the (protested treasury drafts,) is maintained by this message is correct, still the fact remains, and would single circumstance. The people, individually or be even strengthened by the admission, that the peo- in the aggregate, have no such power. Hence the ple of the United States have not been allowed an necessity of co-operation, sincere and cordial coopportunity to act upon this question. By action, is operation, on the part of the government, for the meant election to congress; an election which will sake of the people as well as for the sake of the gogive them an opportunity, constitutionally and effec-vernment. There must be a coinmou circulation, in fually, to express their will, and to have that will sufficient abundance for both, or things will not go obeyed As yet, they have had no such opportu- well with either. As long as the door of the treasury nity; and if this act be passed, they may not have is the limit between two distinct currencies, there one. Let us see if this allegation be not true to the will inevitably be disorder and embarrassment.

letter.

circular. That bill was not returned by the president, and the circular still remains in force. Along with these measures came an increase of state banks, an increase of loans, an increase of circulation, and a general expansion of their business. And after them, came the general disorder in our commerce and currency; and, finally, the suspension of specie payments by the banks in May, 1837 which still continues. Whether these acts of the government did or did not produce, or aid in producing, the catastrophe, (and the minority of the committee In this community of interest, it must be evident firmly believe they did,) has been matter of controThe measure in question was first propounded in that the people, though they have the least power, versy. It is quite certain that, during the whole the message already referred to, in the month of have by far the largest stake. Their business, and period, the executive power of the government was September last. Before that time, it may be admit- the circulation it requires, in the aggregate, are in- actively, and in a most unusual manner, bearing ted that, among the projects which were afloat in an finitely beyond those of the treasury. But this is upon, disturbing, and agitating the business and ciratmosphere disturbed and darkened by severe dis- not all. The government itself is theirs, and the culation of the country, with a view to produce tress, something of the sort was dimly discerned. treasury is theirs. Both are established for their some results: it was not meant to be inoperative.-But it was not heeded; it passed as the scheme of benefit, and support by their contributions, from the Such a power, applied with great energy to a subsome visionary, not entitled to notice. In so regard-products of their property and their industry. Such ject so sensitive and delicate as credit and currency, ing it, there may have been error; possibly, its value being the incontrovertible construction of the con- could not be unproductive. If it did not work to ought to have been more highly appreciated, and stitution, it would be very strange, indeed, if the the end intended, it would be sure to work to some the dignity of its source better understood. Still the interests and welfare of the people, the encourage other end. It might fail to accomplish what was defact undoubtedly is, that, until its annunciation by ment and support of their lawful pursuits, could, by sired, but it could not fail to leave traces where it the president, the public mind was never seriously any perversion whatever, be deemed subordinate or had passed. What, then, are the monuments of its turned to it; and from that time to this, the people, secondary. How much more inadmissible is it to existence, if they be not the wreck and ruin we except in a single state, have had no elections for suggest that they are to be quite disregarded, and have witnessed? Where is the work, if this be the federal government." If it be true, as seeins to that the government and the treasury are only to not? be indistinctly intimated, that it is only through such take care of themselves! Such a proposal would at It is quite certain, too, that every step in the proelections the opinions of the people can be so con- any time be unconstitutional and unsocial. What, ceeding, the consequences were predicted exactly as

they have occurred. These predictions were un- | treasury, if established, has a dangerous capacity to
heeded; but now they serve to lead those who have strengthen itself, and thus to weaken and overcome
seen the issue, to the causes which have produced resistance-not to conciliate public opinion by a
it, and to confirm the conclusion drawn from the re- manifestation of its usefulness, which would be in-
trospect. Looking forward, and looking back, it is nocent; but to establish an independent power, for-
the same line of events; and the judgment upon midable from the first by its organization and means,
them, from both points of view, is the same. and tending, unavoidably, to become daily more
But let it be taken for debateable whether these powerful. That power would be wielded entirely
have been the results, in part or in whole, of the by the executive, without control, and subserviency
measures of the government: no one, it is believed, to his views. The mere patronage would be dan-
has ever been extravagant enough to assert that, as gerous, and even appalling; for no one can tell to
far as concerns currency and circulation, and a what extent it will finally be carried. But the spirit
wholesome state of business, those measures have of such a corps, and the weapons placed in its hands,
done any good. They have not checked, nor had are far more to be dreaded. It will be able both to
any tendency to check, the growth of disorder, nor seduce and to intimidate, by its command over the
to retard the approach of disaster and distress. The money of the public; to corrupt and to overawe, and
utmost efforts to defend them has not gone beyond thus to fortify itself in its position, so as to defy all
the denial that they had caused the disorder and resistance. What prospect will there be of over-
distress. A very large portion of our fellow-citi-throwing it, when once thus established? Its spirit
zens sincerely believe that they have been the sole may be discerned already. A newly appointed col-
cause, a much larger portion are convinced that lector of the port of Philadelphia, who has been in
they have contributed to these effects. All would office at Washington for several years, within a fort-
be satisfied, and a vast number of our fellow-citizens night after his appointment, is the first signer of a
most ardently desire that no more such experiments call for a meeting in favor of the independent trea-
should be made.
sury. The custom-house officers must obey his sum-
In this state of things, the plan of an independent mons. Other officers of the government, dependent
treasury is propounded, and pressed to a decision be- upon the executive, will do the same thing, from
fore the people can have an opportunity to act upon official sympathy, or because it is a service they
it.. Is it substantially true, that it is equally in their cannot refuse. The voice of such a meeting will,
power after its adoption as before? Let the experience of course, be in harmony with the voice of the exe-
of the past years answer. When a measure has been cutive. How can it be otherwise, when they are
once adopted, the question of overthrowing it is a very dependent upon his pleasure? Thus will something
different one from that of its adoption. In the latter be manufactured, to be called “public opinion," and
case, it is a simple question of the merits of the plan; sent here to support the executive. If such be the
in the former, it is complicated, connecting itself influence now, in the prospect only of official power
with many considerations entirely alien, but in their and independence, what will it be when they shall
nature powerful to counteract the free course of be realized and consolidated by a connection extend-
opinion. There are many obvious reasons for noting througout the whole United States? If the pro-
being more particular; nor is it needful, for they will blei were to make an independent executive-that
be readily perceived by every one who has attended is, an executive independent of the people and of
to the working of party, or witnessed what has oc-congress-we do not see how it could be better
curred within the last five or six years. Avoiding solved than by the method proposed.
such topics, however, there is one consideration of a But, besides all this, does it not require the same
general nature, and, therefore, free from the objec- concurrence to repeal a law as to enact one? May
tions just alluded to, upon which it seems proper to not the senate, or the house of representatives, or the
make a remark. When a measure has been adopted, president, prevent its repeal; whereas all must unite
and is found to work badly, one would suppose that to effect its passage? The passage of the law, there-
it would be laid aside and abandoned. But, no; its fore, would make a most serious change. The re-
want of efficiency is ascribed, not to its own inhe-presentatives sent here by the people to undo what
rent weakness or error, as it ought to be, but to some- had been done, would be unable to execute their
thing else which has disturbed its action. Instead will. The senate could defeat their purpose, or the
of being abandoned, it only gives rise to some new president alone could veto it.
project, equally promising, and equally destined to
fail. Thus the past, from which wisdom would seek
instruction, is never considered. The present and
the immediate future are made to occupy and to agi-
tate the mind, without repose or rest for thought.
And so, no doubt, or even worse, would it be with
this independent treasury, if unhappily, it should
ever become a law. Should it fail to answer a good
purpose, (as it assuredly would) it would be said
that its basis was too narrow; and then would follow
a scheme for enlarging its machinery and increasing
its magnificence and expense-more officers, more
offices, more safes and vaults, more salaries. Should
it be found that the gold and silver imprisoned in
these vaults, or supposed to be so, did not supply a
currency, the remedy would be an issue, or rather
an increase of the issue, of inconvertible govern-
ment paper. Should exchange be deficient, exchange
operations, on a greater scale than was required for
the tranactions of government, would be the ready
contrivance to supply the deficiency. Should the
hoards accumulate in the accounts, (for the reality
of accumulation would be past finding out) or should The whole circulation of the United States, as well
there be reason to appehend that, like the pension for the business of individuals as for the concerns of
agents, the sub-independent treasurers were making the treasury, consisted, at the time of the suspension,
profits for themselves and their friends out of the
public money, it would be quite natural to say that it
would be better to lend the money out at interest, or
to buy stock, (as has already been proposed by the
secretary of the treasury) or either, as might be most
profitable. Thus, the humble chrysalis, an indepen-
dent treasury, this golden grub of the earth, would
pass into a mighty government bank, and even some-
thing more; it would be a money-dealer and a stock-
jobber, in addition, far beyond what it has ever been
deemed wise to permit any bank to be; and so it
would continue, expanding and glittering, until some
such pressure as the vicissitudes of the world occa-
sionally bring forth, should bury it under heaps of its
own irredeemable paper.

In every stage of this progress, peculation and de. linquency would be the concomitants of the system, as surely, and to a much greater degree, than they have been in the little sub-independent treasuries of the post office, which afford the only example (a faint and feeble one, indeed) of the operation of the plan.

Besides all that has already been urged upon this point, it must be perceived that the independent

These, and many other considerations, seem to the minority of the committee to constitute decisive objections to present action upon a matter of such great moment. They do not perceive how it can be just or right, by a sudden movement, to place the executive in a position of advantage over the people, and by the same act to enfeeble, if not entirely to take away their power to dislodge him.

A further objection to this plan, partly embraced in what has already been said, is, that it proposes nothing for the relief of the people. But this is by no means the whole of its obnoxious character. It goes much further; for it proposes measures which will unavoidably increase their embarrassments, and make them perpetual. Assuming, for the present, that the suspension of specie payments, assumed by the president, the secretary of the treasury, and the majority of the committee, is the great evil in our affairs, then the resumption of specie payments is the point to be attained to bring back order. No one will question that this is desirable, nay, indispensable.

of state bank paper. There was no other medium;
that was the only money in use. The small amount
of coin employed for change, scarcely deserved to be
considered. In the larger concerns of trade, gold
and silver, while they formed the standard of value,
were no further required in circulation than to li
quidate balances. Being costly and inconvenient,
the employment of them, even for this limited end,
was reduced as low as possible, not by any concert
or contrivance, or deliberate design, but by the very
nature of the thing, always tending to simplicity and
econoiny in the operations of commerce. The use
of gold and silver, it must be remembered, is not for
the liquidation only of domestic balances, it performs
the same ultimate function in settling balances be-
tween different nations, so as to enter into the general
circulation.

Up to the month of May last, the United States
were able to pay their foreign balances. The banks
in the United States were able to pay their balances.
Thus, bank paper maintained an equality with gold
and silver at home; and the circulation, consisting of
bank paper, maintained itself, in comparison with
the circulation of other countries, at the same level

as if the currency had been entirely of gold and silver.

The circulation, it may be further remarked is also aided by credits in various forms, (not being a currency, properly so called, but performing some of its functions, and by exchanges) which superseded the necessity of actually transmitting bank paper or coin from place to place. These credits and exchanges rest upon the same ultimate basis, namely, the ability to liquidate balances.

The whole of this machinery, it will be seen, is contrived and employed to circulate exchangeable commodities, the product of the soil and industry, which constitute the real wealth of the nation, as they do of individuals. It is true, also, that, upon this foundation of exchangeable values, the whole of it rests for support. Our wealth, in trade with a foreign nation is made up of what we have to sell, and they desire to buy, and are able to pay for. If the whole exports of the United States were of cotton, and its price a fixed one, the quantity we had to sell, at any given time, would determine the amount we were able to buy; and if we exceeded that limit, we must contract a debt for the excess. But as the quantity and the price are both liable to fluctuations, calculations made upon them may fail, and anticipation of their sales by borrowing (one of the allowa ble modes of credit) may cause embarrassment and loss. Credit, however, if continued under these circumstances, in confidence of final security, will mitigate or finally prevent the mischief. It is when, in this state of things, credit, from any cause, suddenly gives way, or when, by giving way, it produces this state of things, that the whole extremity of disaster is brought about, and for a time is uncon trollable. Its first importunate demand is for gold and silver, in a tone unusually peremptory, and in extraordinary quantities. These metals yield readily to the invitations of trade; they flow gently when they are left free to obey their own law; but they shrink from the hand of force, and hide themselves from its enactions. Such a demand, therefore, when it is sufficient to weaken confidence, causes gold and silver to disappear, and, from the fear of a vacuum which they abhor, they absolutely make a vacuum.

That the suspension of specie payments by the banks was owing to some such cause, no one can question. Indeed, it is susceptible of proof, as a matter of fact. When the drain came upon the banks, which obliged them to stop the issue of specie, according to the repeated statements of the secretary of the treasury, gold and silver was more abundant in the United States than at any former period. They had been continually increasing for several years, under the influence of a policy designed to encourage their importation, which, it was boasted, had fulfilled its purpose. The same high authority assured us that the banks were not imprudent; they had ob served a due proportion between their specie and their liabilities-rather better, indeed, than before, and judging from former experience, sufficient to enable them to discharge their balances; they had extended themselves, but only according to the extension of the specie basis.

Avoiding a recurrence to the primary causes of the suspension of specie payments by the banks, and omitting for the present to refer to the action of the government, it seems to the minority of the committee to be very easy to discern the immediate agency which disturbed and disordered our circulation. While the United States were receiving specie, England was parting with it. Finally, the Bank of England discovered that her stock of gold was rapidly being diminished to an alarming extent, and, for her own protection from a continuance of the drain, sought to discover, and of course, to stop, the channel through which it was made. It was found to have been opened by means of credits of the United States upon England, ordered to be remitted in gold. The fact, as stated by the secretary of the treasury, is, that the stock of gold in the United States had, within a short time, been increased fifteen millions of dollars-the greater part of it, beyond a doubt, coming from England, and much of it (hew much cannot probably be ascertained) borrowed; that is, obtained by means of credits. The Bank of England, to stop this drain, frowned upon and discredited the bills drawn in the United States upon credits. They could no longer be discounted. Hence, the revulsion; the failure of some of the American houses (as they were termed) in England, and the excessive pressure upon all of them; the dishonor and return of bills, with all their consequences; and the sudden demand for a large balance, not expected to be called for. Exchange rose, specie became a better remittance, and specie began to rush out.

At the same time our great staple fell in England. The secretary of the treasury computes the loss to the United States upon the half of the crop then undisposed of at no less a sum than twenty millions of

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