NILES' NATIONAL REGISTER-APRIL 14, 1838-MR. WEBSTER'S SECOND SPEECH. the amount of the same which has been received in payment of the public dues up to this time; also the amount of moneys received on account of the customs, and the public lands, during the last quarter of the year 1837, and during the first quarter of the present year, so far as the quarterly returns, or other information in possession of the department, may show; also, what amount of moneys of every description, available for the public service, is now in the treasury, or in the han is of receivers, liable to draft, and at what points deposited." 1. In reply to the first inquiry, I would state; that "the amount of treasury notes issued under the authority of the act of the last session of congress" was, on the 24th instant, $7,116,638 75. 2. The amount of the same which "had been received in payment of the public dues, up to" that time, was, so far as then ascertained by actual returns, $3, 241,000. Undoubtedly some two or three hundred thousand dollars inore had then been received by the collecting officers, but time enough had not elapsed for the returns of them to reach the department. the mint and its branches, under provisions in two 101 cument. For particulars, reference may be had to the do- | of what he said on that occasion does not appear speech could not have got in by accident. Such been left out by accident, that which is in the in the printed speech; but, whatever may have accidents do not happen. A close, well-conducted, and conclusive constitutional argument, is not 780 02, it is computed that the treasurer, in an exi- perfectly conclusive. He founds the right of reguOf the aggregate coin in the mint, being $908,-gument on that occasion, as it seems to me, was the result of an accident or of chance; and his arout great inconvenience or delay, about $508,- age power. "The only object," he says, "the gency could draw out for the public service, with-lating the paper currency directly on the coin780 02. giving to congress the power to coin money, regu. framers of the constitution could have in view, in have been to give a steadiness and fixed value to late the value thereof, and of foreign coin, must the currency of the United States." The state of things, he insisted, existing at the time of the adoption of the constitution, afforded an argument ed, he said, a depreciated paper currency, which in support of the construction. There then existcould only be regulated and made uniform by giving a power, for that purpose to the general go Fifthly. The remaining sums amount to $670,- 3. In answer to the third inquiry, I would observe, that "the amount of moneys received on account of the customs and the public lands during Hon. JAMES K. POLK, the last quarter of the year 1837," was $3,016,816 77. Of this, $2,115,958 78 was from customs, and $901, 857 99 from lands. But, for reasons explained in the last report on Secretary of the treasury. Speaker of the house of representatives. ON THE SUB-TREASURY BILL. vernment. He proceeded to say that, by a sort of underney of the country had caved in, and upon its ruin current, the power of congress to regulate the mohad sprung up those institutions which now exercised the right of making money for and in the United States. "For gold and silver (he insisted) the finances from this department, and in a subse Delivered in the Senate of the United States, March are not the only money; but whatever is the me 12, 1838. The constitution confers on us, sir, the exclusive quent part of this report, the amount above stated as received from customs is the aggregate, without making all the usual deductions for debentures, dium of purchase and sale; in which bank paper bounties and other expenses, which it is customary alone was now employed, and had therefore, beto pay out of the current revenue before it is car-power of coinage. This must have been done foreign power, a sacred and important right, was exermaking money," he added "an attribute of sovercome the money of the country." "The right of ried into the treasury. 4. The fourth inquiry relates to the amount of uniform basis for the whole money system. Con- over every part of the United States." the purpose of enabling congress to establish one cised by two hundred and sixty banks, scattered money received from custons and lands during gress, therefore, and congress alone, has power the first quarter of the present year, so far as the over the foundation, the ground-work, of the cur-language; and, acting vigorously upon princiquarterly returns, or other information in posses-rency; and it would be strange and anomalous, hav- ples thus plainly laid down, he conducted the Certainly, sir, nothing can be clearer than this sion of the department, may show." That quarter not being completed, all the returns for it have, of course, not yet been received. But from the monthly returns, which had been received on the 23d instant, the receipts by the collecting officers since the first of January had been, from custoins and lands, about $2,945,260; of this, about $2,560,600 was from customs, and $334,860 from lands. It is computed that, when all the returns for the quarter are made, the customs will appear to be about $3,000,000, and the lands about $500,000. the edifice, to be raised on this foundation! Coning this, if it had nothing to do with the structure, vertible paper was already in circulation when the constitution was framed, and must have been expected to continue and increase. But the circulation of paper tends to displace coin; it may banish it altogether: at this very moment it has banished it. If, therefore, the power over the coin does not any thing which would supersede it, and abolish enable congress to protect the coin, and to restrain its use, the whole power becomes nugatory. If with paper which does not represent coin, of what others may drive out the coin, and fill the country use, I beg to know, is that exclusive power over coins and coinage which is given to congress by the constitution? It should be noticed, in relation to these receipts, as well as those in the last quarter of 1837, that most of them from customs have been in the treasury notes and drafts on banks returned through the custom-houses. As none of these can, by the existing laws, be re-issued to defray even the cost of tendency of paper circulation to expel the coin; but Gentlemen on the other side admit that it is the collection, and as very little money has been paid then they say, that, for that ve y reason, they will for custons during that period, it has followed that withdraw from all connexion with the general cura considerable part of the custom-house expenses rency, and limit themselves to the single and narin the United States, since last October, including row object of protecting the coin, and providing debentures, fishing bounties, and current charges, for payments to government. This seems to me has, by an act of congress then passed, been oblig- to be a very strange way of reasoning, and a very ed to be advanced from the treasury. These ad- strange course of political conduct. The coinagevances have amounted in all to $666,663; conse-power was given to be used for the benefit of the quently, the receipts from customs, during that period, appear so much larger than they otherwise would, it being customary to deduct the payinents for those objects from the current receipts before they are carried into the treasury. 5. The last inquiry is, "what amount of moneys, of every description, available for the public service," is "now in the treasury, or in the hands of receivers, liable to draft, and at what points deposited." In reply to this, I would observe, that the whole amount of money so available is, nominally, $2,299,544 03. But, deducting $592,212 of it, which belongs to certain trust funds, and $400,000 of what is deposited in the nint, (which, as explained in the last annual report, cannot, without great public inconvenience, be withdrawn,) and the balance, available and applicable to general purposes, is only $1,307,332 03. These "moneys of every description," consisted, Firstly, of the sums liable to draft in the present deposite banks, being $126,693 70. The amounts in each, and "the points" where the money in them is "deposited," will appear in the schedule annexed. Secondly. Another portion of them is money in such of the former deposite banks, on general deposite, as it is expected will be paid satisfactorily when drawn for, in a gradual manner, amounting to $516,697 17. For details as to each, with the "points where deposited," see the tabular statement. Thirdly. Another portion is money in special deposite by the treasurer in certain banks, amounting to $104,184 89. whole country, and not merely to furnish a medium On that occasion, he was the champion of the bank bill, through the house of representatives. power of congress over the currency, and others were willing to follow his lead. gentleman went much farther. The bank, it was hoped and expected, would furnish a good paper But the bank bill was not all. The honorable currency to the extent of its own issues; but there and it was possible that the mere influence of the was a vast quantity of bad paper in circulation, bank, and the refusal to receive this bad money at entirely from the country. The honorable member the treasury, might not, both, be able to banish it meant to make clean work. He meant that neither government nor people should suffer the evils of collection of the public revenue." By the provianother bill, entitled "A bill for the more effectual irredeemable paper. sions of this bill, he proposed to lay a direct stamp Therefore, he brought in tax on the bills of state banks; and all notes of nonspecie paying banks were, by this stamp, to be branded with the following words, in distinct and legible characters, at length" NOT A SPECIE NOTE." For the tax laid on such notes, there was to be no composition, no commutation; but it was to be specifically collected, on every single bill issued, until those who issued such bills should prove to his satisfaction, that, after a day named in the bill, all their notes would be paid in specie on announce to the secretary of the treasury, and demand. such a measure as this, to stand up and declare, that the power of congress over the currency And now, how is it possible, sir, for the author of is limited to the mere regulation of the coin? So admitted and acknowledged, under the coinage much for our authority, as it has heretofore been power. opinion, at all more questionable. Now, sir, is the other source of power, in my merce. dence over all the interests, agencies, and instruCongress has the supreme regulation of comments of commerce. This gives it, necessarily, a superintengiven, all the usual means are given. Money is they confer the whole power. When the end is the chief instrument or agent of commerce; there The words are general, and serves the name. Congress must, therefore, regu. can, indeed, be no commerce without it, which delate it as it regulates other indispensable commerend but such as are particularly enumerated, the cial interests. If no means were to be used to this whole authority would be nugatory, because no And now let me say, sir, that no man in our his- ships; their tonnage; their measurement; the shipmeans are particularly enumerated. Who regulate with more ability, or acted upon it with more deci- things belonging to them; and for all this we have tory has carried the doctrine farther, defended it ping articles; the medicine chest; and various other South Carolina. His speech upon the bank bill, commerce; none of these, or other means or modes sion and effect, than the honorable member from no authority but the general power to regulate on the 26th of February, 1816, is strong, full, and of regulation are particularly and expressly pointed conclusive. He has heretofore said that some partout. But is a ship a more important instrument of commerce than money? We protect a policy of insurance, because it is an important instrument of ordinary commercial contract; and our laws punish with death any master of a vessel, or others, who shall commit a fraud on the parties to this contract by casting away a vessel. For all this we have no express authority. We infer it from the general power of regulating commerce, and we exercise the power in this case, because a policy of insurance is one of the usual instruments, or means, of commerce. But how inconsiderable and unimportant is a policy of insurance, as the means or an instrument of commerce, compared with the whole circulating paper of the country? Sir the power is granted to us; and granted without any specification of means; and therefore we may lawfully exercise all the usual means. I need not particularize these means, nor state, at present, what they are, or may be. One is, no doubt, a proper regulation of receipts at the custom-houses and land offices. But this, of itself, is not enough. Another is a national bank, which I fully believe, would, even now, answer all desired purposes, and reinstate the currency in ninety days. These, I think, are the means to be first tried; and if, notwithstanding these, irredeemable paper should overwhelm us, others must be resorted to. We have no direct authority over state banks; but we have power over the currency, and we must protect it, using, of course, always, such means, if they be found adequate, as shall be most gentle and mild. The great measure, sir, is a bank; because a bank is not only able to restrain the excessive issues of state banks, but is able also to furnish for the country a currency of universal credit, and of uniform value. This is the grand desideratum. Until such a currency is established, depend on it, sir, what is necessary for the prosperity of the country can never be accomplished. On the question of power, sir, we have a very important and striking precedent. The members of the senate, Mr. President, will recollect the controversy between New York and her neighbor states, fifteen or sixteen years ago, upon the exclusive right of steam navigation. New York had granted an exclusive right of such navigation over her waters to Mr. Fulton and his associates; and declared by law, that no vessel propelled by steam should navigate the North river or the sound, without license from these grantees, under penalty of confiscation. To counteract this law, the legislature of New Jersey enacted, that if any citizen of hers should be restrained, or injured, in person or property by any party acting under the law of New York, such citizen should have remedy in her courts, if the offender could he caught within in her territory, and should be entitled to treble damages and costs. New Jersey called this act a law of retortion; and justified it on the general ground of reprisals. On the other side, Connecticut took fire, and as no steamboat could come down the sound from New York to Connecticut, or pass up from Connecticut to New York, without a New York license, she enacted a law, by which heavy penalties were imposed upon all who should presume to come into her ports and harbors, having any such license. Here, sir, was a very harmonious state of commercial intercourse! a very promising condition of things indeed! You could not get rom New York to New Haven by steam; nor could you go from New York to New Jersey, without transhipment in the bay. And now, sir, let me remind the country, that this belligerant legislation of the states concerned was justified and defended, by exactly the same arguments as those which we have heard in this debate. Every thing which has been said here, to prove that the authority to regulate commerce does not include a power to regulate currency was said in that case, to prove that the same authority did not include an exclusive power over steamboats or other means of navigation. I do not know a reason, a suggestion, an idea, which has been used in this debate, or which was used in the debate in September, to show that Congress has no power to control the currency of the country and make it uniform, which was not used in this steamboat controversy, to prove that the authority of this government did not reach the matter then in dispute, Look to the forensic discussions in New York! Look to the argument in the court here! You will find it every where urged that navigation does not come within the general idea of regulating commerce; that steamboats are but vehicles and instruments; that the power of congress is general, and general only; and that it does not extend to agents and instruments. livered on that occasion; a judge always distinguished but as so many efforts to give to the executive an un- These just sentiments prevailed. The decision of the court quieted the dangerous controversy; and satisfied, and I will add gratified, most highly gratified, the whole country. The unfortunate results of these executive interferet ces with the currency had made an impression on the public mind. A revolution seemed in progress, and the people were coming in their strength, as we began to think, to support us and our principles. Sir, may we not perceive at the present moment, In this state of things, sir, we met here at the comwithout being suspected of looking with eyes whose mencement of the September session: but we met, not sight is sharpened by too much apprehension-may we as we had done; we met, not as we had parted. The no: perceive, sir, in what is now passing around us, the events of May, the policy of the president in reference possible beginnings of another controversy between to those events, the doctrines of the message of Sepstates, which may be of still greater moment, and fol- tember, the principles and opinions which the honorlowed, if not arrested, by still more deplorable conse- able gentleman, both to my surprise, and to my infinite quences? Do we see no danger, no disturbance, no regret, came forward then to support, rendered it quite contests ahead? Si, do we not behold excited com- impossible for us to act together, for a single moment mercial rivalship, evidently existing between great longer. To the leading doctrines of that message, and states and great cities? Do we not see an emulous to the policy which it recommended, I felt, and still feel, competition for trade, external and internal? Do we a deep, conscientious, and irreconcilable opposition. not see the parties concerned enlarging, and proposing The honorable gentleman supported, and still supports, to enlarge, to a vast extent, their plans of currency, both. Here, then, we part. On these questions of conevidently in connection with these objects of trade and stitutional power and duty and on these momentous commerce? Do we not see states themselves becom- questions of national policy, we separate. And so ing deeply interested in great banking institutions? Do broad and ample is the space which divides us, and so we not know that, already, the notes and bills of some deep does the division run, touching even the very founstates are prohibited by law from circulating in others? dations of the government, that, considering the time of Sir, I will push these questions no farther: but I tell life to which we both have arrived, it is not probable you that it was for exactly such a crisis as this-for this that we are to meet again. I say this with unfeigned very crisis-for this identical exigency now upon us and deep regret. Believe me, sir, I would most gladly that this consutution was framed, and this government act with the honorable gentleman. If he would but established. And now, sir, let those who expect to get come back, now, to what I consider his former prinover this crisis without effort and without action, let ciples and sentiments; if he would place himself on those whose hope it is that they may be borne along on those constitutional doctrines which he has sustained the tide of circumstances and favorable occurrences, through a long series of years; and if, thus standing, and who repose in the denial of their own powers and he would exert his acknowledged ability to restore the their own responsibility-let all such, look well to the prosperity of the country, and put an end to the misend. chiefs of reckless experiments and dangerous innnova tion,-I would not only willingly act with him, I would act under him; I would follow him, I would support him, I would back him, at every step, to the utmost of my power and ability. Such is not to be our destiny. That destiny is, that we here part; and all I can say further is, that he carries with him the same feeling of personal kindness on my part, the same hearty good will which have heretofore inspired me. For one, I intend to clear myself from all blame. I intend, this day, to free myself of the responsibility of consequences, by warning you of the danger into which you are conducting our public affairs, by urging and entreating you, as I do now urge and entreat you, by invoking you, as I do now invoke you, by your love of country, and your fidelity to the constitution to abandon all untried expedients; to put no trust in ingenuity and contrivance; to have done with projects which There have been three principal occasions, sir, on alarm and agitate the people; to seek no shelter from which the honoroble gentleman has expressed his opinobligation and duty; but with manliness, directness, ions upon the questions now under discussion. They and true wisdom, to apply to the evils of the times their are, his speech of the 15th September, his published letproper remedy. That Providence may guide the counter of the 3d November, and his leading speech of the sels of the country to this end, before even greater dis- present session. These productions are all marked asters and calamities overtake us, is my most fervent with his characteris ic ability; they are ingenious, able, prayer! condensed, and striking. They deserve an answer. To some of the observations in the speech of September, I made a reply on the day of its delivery; there are other parts of it, however, which require a more deliberate examination. Mr. President, on the subject of the power of congress, as well as on other important topics, connected with the bill, the honorable gentleman from South Carolina has advanced opinions, of which I feel bound to take some notice. That honorable gentleman, in his recent speech, attempted to exhibit a contrast between the course of conduct which I, and other gentlemen who act with me, at present pursue, and that which we have heretofore followed. In presenting this contrast, he said, he intended nothing personal; his only object was truth. To this I could not object. The occasion re quires, sir, that I should now examine his opinions; and I can truly say, with him, that I mean nothing personally injurious, and that my object, also, is truth, and nothing else. Here I might stop: but I will even say something more. It is now five and twenty years, sir, since I became acquainted with the honorable gentleman, in the house of representatives, in which he had held a seat, I think, about a year and a half before I entered it. From that period, sir, down to the year 1824, I can say, with great sincerity, there was not, among my political contemporaries, any man for whom I entertained a higher respect or warmer esteem. When we first met, we were both young men. I beheld in him a generous charracter, a liberal and comprehensive mind, engrossed by great objects, distinguished talent, and, particularly, great originality and vigor of thought. That he was ambitious, I did not doubt; but that there was any thing in his ambition low or sordid, any thing approaching to a love of the mere loaves and fishes of office, 1 did not then believe, and do not now believe. If, from that moment, down to the time I have already mention ed, I differed with him on any great constitutional question, I do not know it. But in 1824, events well known to the senate separated us; and that separation remained, wide and broad, And what, sir, put an end to this state of things? until the end of the memorable session which terminatWhat stopped these seizures and confiscations? No-ed in March, 1833. With the events of that session, thing in the world, sir, but the exercise of the constitu- our occasions of difference had ceased; certainly for tional power of this government. Nothing in the world, the time, and, as I sincerely hoped, forever. Before but the decision of the supreme court, that the power of the next meeting of congress, the public deposites had congress to regulate commerce was paramouut; that it been removed from their lawful custody by the presioverruled any interfering state laws; and that these sident. Respecting this exercise of the executive power, acts of the states did interfere with acts of congress, the honorable gentleman and myself entertained the enacted under its clear constitutional authority. As to the extent of the power of regulating commerce, allow me to quote a single sentence from the opinion of one of the learned judges of the supreme court, de same opinions; and, in regard to subsequent transac- Mr. President, the honorable gentleman declares in that speech, "that he belongs to the state-rights party; that that party, from the beginning of the government, has been opposed to a national bank as unconstitutional, inexpedient, and dangerous; that it has ever dreaded the union of the political and moneyed power, and the central action of the government, to which it so strongly tends, that the connection of the government with the banks, whether it be with a combination of state banks, or with a national institution, will necessarily central ize the action of the system at the principal point of collection and disbursement, and at which the mother bank, or the head of the league of state banks, must be located. From that point, the whole system, through the connection with the government, will be enabled to control the exchanges both at home and abroad, and with it, the commerce, foreign and domestic, including exports and imports." Now, sir, this connection between government and the banks, to which he imputes such mischevious consequences, he describes to be "the receiving and paying away their notes as cash; and the use of the public money, from the ume of the collection to the disbursement." Sir, if I clearly comprehend the honorable gentleman, he means no more, after all, than this: that, while the public revenues are collected, as heretofore, through the banks, they will lie in the banks between the time of collection and the time of disbursement; that, during that period, they will be regarded as one part of the means of business and of discount possessed by the banks; and that, as a greater portion of the revenue is collected in large cities than in small ones, these large cities will, of course, derive greater benefits than the small ones from these deposites in the banks. In other words, that, as the importing merchants in a great city pay more duties to government than those in a small one, so they enjoy an advantage to be derived from any use which the banks may make of these moneys, while on deposite with them. Now, sir, I would be very glad to know, supposing all this to be true, what there is in it either unequal or unjust? The benefit is exactly in proportion to the amount of business, and to the sums paid. If individuals in large cities enjoy the incidental use of more money, it is simply because they pay more money. It is like the case of credit on duty bonds. Whoever imports goods with the benefit of be paid out or advanced to whomsoever it pleases, in more. The honorable member says, sir, that to make this sab-treasury measure successful, and to secure it against reaction, some sate and stable medium of circulation, "to take the place of bank notes in the fiscal operations of the government, ought to be issued;" that, "in the present condition of the world, a paper currency, in some form, if not necessary, is almost indispensable, in financial and commercial operations of civilized and I suppose, sir, it is the natural course of things in extensive communities;" that, "the great desideratum is every commercial country, that some place, or a few to ascertain what description of paper has the requisite places should go ahead of others in commercial busi- qualities of being free from fluctuation in value, and ness importance. This must ever be so, until all places liability to abuse in the greatest perfection; that bank possess precisely equal natural advantages. And I sup- notes do not possess these requisites in a degree suffipose, too, that, instead of being mischevious, it is rather ciently high for this purpose." And then he says, "I for the common good of all, that there should be some go farther. It appears to me after bestowing the best recommercial emporium, some central point, for the ex-flection I can give the subject, that no convertible pachanges of trade. Government, certainly, should not per, that is, no paper whose credit rests upon a proseek to produce this result by the bestowal of unequal mise to pay, is suitable for currency." "On what, then, privileges; but surely, sir, it would be a very strange (he asks,) ought a paper currency to rest?" "I would and indefensible policy which should lead the govern- say, he answers, "on demand and supply simply: which ment to withhold any portion of the capital of the regulate the value of every thing else the constant decountry from useful employment, merely because that, mand which government has for its necessary supplies." if employed, while all enjoyed the benefit proportion- He then proceeds to observe, "that there might be a ately, all would not enjoy it with the same absolute sound and safe paper currency, founded on the credit mathematical equality. of government exclusively." "That such paper only So much, sir, for concentration, arising from deposit- to be issued to those who had claims on the government, ing the revenues in banks. Let us now look to the would, in its habitual state, be at or above par with gold other part of the connection, viz: the receiving of bank and silver;" that "nothing but experience can deternotes for duties. How in the world does this "central- mine what amount, and of what denominations, might ize" the commercial system? The whole tendency and be safely issued; but that it might be safely assumed effect, as it seems to me, is directly the other way. It that the country would absorb an amount greatly excounteracts centralization. It gives all possible advan-ceeding its annual income. Much of its exchanges, tage to local currency and local payments, and there- which amount to a vast sum, as well as its banking bu by encourages both imports and exports. It tends to siness, would revolve about it; and many millions make local money good every where. If goods be im- would thus be kept in circulation beyond the demands ported into Charleston, the duties are paid in Charles- of the government." ton notes. New York notes are not demanded. Noth By this scheme, sir, government, in its disbursements, ing, certainly, can be fairer or more equal than this, and is not to pay money, but to issue paper. This paper is nothing more favorable to the Charleston importers. no otherwise payable or redeemable, than as it may be But how would that system work, which the gen-received at the treasury. It is expected to be let out tleman himself proposes? If his plan could prevail, he would have the duties collected either in specie, or in a government paper to be issued from the treasury. He would reject all bank notes whatever. If the gentleman, sir, fears centralization, I am astonished that he does not see centralization in all its terrors in this very proposition of his own. Pray allow me to ask, sir, where will this government paper, in the course of its issue and circulation, naturally centre? To what points will it tend? Certainly, most certainly, to the greatest points of collection and expenditure; to the very heart of the metropolitan city, wherever that city may be. This is as evitable as the fall of water or the results of attraction. If two-thirds of the duties be collected in New York, it will follow, of course, that two-thirds of any government paper received for duties will be there received; and it will be more valuable there than elsewhere. The value of such paper would consist in its receivability, and nothing else. It would always tend, therefore, directly to the spot where the greatest demand should exist for it for that purpose. Is it not so at this moment with the outstanding treasury notes. Are they abundant in Georgia, in Mississippi, in Illinois, or in New Hampshire? No sooner issued, than they commence their march toward the place where they are most valued and most in demand: that is, to the place of the greatest public receipt. If you want concentration, sir, and enough of it--if you desire to dry up the small streams of commerce, and fill more full the deep and already swollen great channels, you will act very wisely to that end, if you keep out of the receipt of the treasury all money but such paper as the government may furnish, and which shall be no otherwise redeemable than in receipt for debts to government while at the same time you depress the character of the local circulation. much faster than it comes in, so that many millions will country, and will be able to perform the great business Mr. President, toward the close of this speech of September, I find a paragraph in which several other subjects are brought together, and which I must ask permission to read. Having commended the wise and noble bearing of the little state-rights party, of which he says it is his pride to be a member thoughout the eventful period through which the country has passed since 1824, he adds: "In that year, as I have stated, the tariff system triumphed in the councils of the nation. We saw its disastrous political bearings; foresaw its surplusses, and then the extravagancies to which it would lead; we rallied on the election of the late president to arrest it through the influence of the executive department of the government. In this we failed. We then fell back upon the rights and sovereignty of the states; and, by the action of a small but gallant state, and through the potency of its interposition, we brought the system to the ground, sustained, as it was, by the opposition and the administration, and by the whole power and patronage of the government.' Every part of this most extraordinary statement well deserves attention. In the first place, sir, here is an open and direct avowal that the main object for rallying on general Jackson's first election, was to accomplish the overthrow of the protecting policy of the country. Indeed! Well, this is very frank. I am glad to hear the avowal made. It puts an end to all suspicions. It was, then, to overthrow protection, was it, that the honorable gentleman took so much pains to secure general Jackson's first election? I commend his candor, in now acknowledging it. But, sir, the honorable member had allies and associates in that rally. They thronged round him from all quarters, and followed his lead. And pray, sir, was his object, as now avowed by himself, the joint object of all the party? Did he tell Pennsylvania, honest, intelligent, straight-forward Pennsylvania, that such was his purpose? And did Pennsylvania concur in it? Pennsylvania was first and foremost in espousing the cause of general Jackson. Every body knows she is more of a tariff state than any other in the union. Did he tell her that his purpose was to break the tariff entirely down? Did he state his objects, also, to New York? Did he state them to New Jersey? What say you gentlemen from Pennsylvania? gentleman from New York? and gentlemen The whole commerce of the country, indeed, under from New Jersey? Ye who supported general Jacksuch a state of law, would be little more than a sort of son's election, what say you? Was it your purpose, incident to treasury operations-rather a collateral also, by that election, to break down the protective poemanation of the revenue system, than a substantial licy? Or, if it were not your purpose, did you know, and important branch of the public interest. I have nevertheless-pray let us understand that did you referred, also, to its probable consequences, upon that know, nevertheless, that it was the purpose, and the which the gentleman regards as so great an evil, and main purpose, of the honorable member from Caroliwhich he denominates "the centralization of commer-na? and did you, still, co-operate with him? cial action." In the first place, sir, I have suggested the complete union which it would form, if it were, in itself, practicable, between the political and the money power. And now I pray you to consider, Mr. President, in "In multitudes, like which the populous north what admirable restraint would be imposed on govern- The present chief magistrate of the country was a member of this body in 1828. He and the honorable member from Carolina were, at that time, exerting their united forces, to the utmost, in order to bring about general Jackson's election. Did they work thus zealously together, for the same ultimate end and purpose? or did they mean merely to change the government, and then each look out for himself. Mr. Van Buren voted for the tariff bill of that year, commonly called the "bill of abominations;" but, very luckily, and in extremely good season, instructions for that vote happened to come from Albany! The vote, therefore, could be given, and the member giving it could not possibly thereby give any offence to any gentleman of the state-rights party, with whom the doctrine of instructions is so authentic. Sir, I will not do gentlemen injustice. Those who belong to tariff states, as they are called, and who supported general Jackson for the presidency, did not intend thereby to overthrow the protecting policy. They only meant to make general Jackson president, and to come into power along with him! As to ultimate ob Such is the scheme of the honorable member in its But, sir, fortunately, very fortunately, a scheme so probable commercial effect. Let us look at it in a po- wild, and which would be so mischevious, is totally imlitical point of view. practicable It rests on an assumption, for which there The honorable member says he belongs to the state- is not the least foundation, either in reason or experi-jects, each had his own. All could agree, however, in rights party; that party professes something of an un-ence. It takes for granted that which the history of the first step. It was difficult, certainly, to give a plaucommon love of liberty; an extraordinary sensibility to every commercial state refutes, and our own, especial- sible appearance to a political union, among gentlemen all its dangers; and of those dangers, it most dreads the ly, in almost every page. It supposes that irredeemable who differed so widely, on the great and leading quesunion of the political and money power. This we learn government paper can circulate in the business of so- tion of the times-the question of the protecting policy. from the authentic declaration of the gentleman him-ciety, and be kept at par. This is an impossibility. But this difficulty was overcome by the oracular declaself. And now, oh, transcendental consistency! oh, The honorable gentleman rejects convertible bank ration that general Jackson was in favor of a "judicious most wonderful conformity of means and ends! oh, notes, which are equivalent to specie, since they will tariff." exquisite mode of gratifying high desires! behold, the always command it, and adopts, in their stead. governhonorable member proposes that the political power of ment paper, with no promise to pay, but a promise only the state shall take to itself the whole function of sup-to be received for debts and taxes; and he puts forth the plying the entire paper circulation of the country by imagination, as I have said, so often and so long refunotes or bills of its own, issued at its own discretion, to ted, that this paper will be kept in circulation in the Here, sir, was ample room and verge enough. Who could object to a judicious tariff? Tariff men and antitariff men, state-rights men and consolidationists, those who had been called prodigals and those who had been called radicals, all thronged and flocked together here, and with all their difference in regard to ultimate objects, agreed to make common cause, till they should get into power. The ghosts, sir, which are fabled to cross the Styx, whatever different hopes or purposes they may have beyond it, still unite, in the present wish to get over, and therefore all hurry and huddle into the leaky and shattered craft of Charon, the ferryman. And this motly throng of politicians, sir, with as much difference of final object, and as little care for each other, made a boat of "judicious tariff," and all rushed and scrambled into it, until they filled it, near to sinking. The authority of the master was able, however, to keep them peaceable and in order, for the time, for they had the virtue of submission, and though with occasional dangers of upsetting, he succeeded in pushing them all over with his long setting-pole. "Ratem conto subigit." Well, sir, the honorable gentleman tells us that he expected, when general Jackson should be elected, to arrest the tariff system through the influence of the executive department. Here is another candid confession. Arrest the tariff by executive influence! Indeed! Why, sir, this seems like hoping, from the first, for the use of the veto. How, but by veto, could the executive arrest the tariff acts? And is it true, sir, that, at that early day, the honorable member was looking to the veto, not with dread, but with hope? Did he expect it, and did he rely upon it? Did he make the raliy of which he speaks, in order that he might choose a president who would exercise it? And did he afterwards complain of it, or does he complain of it now, only because it was ill-directed-because it turned out to be a thunderbolt, which did not fall in the right place? measure. They, however, must speak for themselves. in the very crisis of our affairs, on the very eve of vicThey may have intrusted the bearing of their standard, tory, the honorable member cries out-to the enemyfor aught I know, to the hands of the honorable mem- not to us, his allies--but to the enemy-"Holloa! A ber from South Carolina; and I perceived last session, sudden thought strikes me! I abandon my allies! Now what I perceive now, that in his opinion there is a con- I think of it, they have always been my oppressors! I nexion between these projects of government and the abandon them, and now let you and me swear an eterdoctrines of nullification. I can only say, sir, that it nal friendship!" will be marvellous to me if that banner, though it be Such a proposition, from such a quarter, sir, was not said to be tattered and torn, shall yet be lowered in obei- likely to be long withstood. The other party was a litsance, and laid at the footstool of executive power. To tle coy, but, upon the whole, nothing loath. After the sustaining of that power, the passage of this bill is proper hesitation, and a little decorous blushing, it ownof the utmost importance. The administration will re-ed the soft impeachment, admitted an equally-sudden gard its success as being to them, what Cromwell said sympathetic impulse on its own side; and, since few the battle of Worcester was to him-"a crowning mer- words are wanted where hearts are already known, the cy." Whether gentlemen, who have distinguished honorable gentleman takes his place among his new themselves so much by their extreme jealousy of this friends, amidst greetings and caresses, and is already government, shall now find it consistent with their enjoying the sweets of an eternal friendship. principles to give their aid in accomplishing this con- In this letter, Mr. President, the writer says, in subsummation, remains to be seen. stance, that he saw, at the commencement of the last session, that affairs had reached that point, when he and his friends, according to the course they should take would reap the full harvest of their long and arduous struggle, against the encroachments and abuses of the general government, or lose the fruits of all their labors. The next exposition of the honorable gentleman's sentiments and opinions, is his letter of November 3d. This letter, sir, is a curiosity. As a paper, describing political movements, and exhibiting political opinions, it is without a parallel. Its phrase is altogether military. It reads like a despatch, or a bulletin from headquarters. It is full of attacks, assaults, and repulses. It recounts. movements and counter-movements; speaks of occupying one position, falling back upon another, and advancing to a third; it has positions to cover enemies, and positions to hold allies in check. Meantime, the celerity of all these operations reminds one of the rapidity of the military actions of the king of Prussia, in the seven years' war. Yesterday he was in the south, giving battle to the Austrian-to-day he is in Saxony, or Silesia; instantly he is found to have traversed the ElecIn this reliance on executive influence-sir, I declare torate, and is facing the Russian and the Swede on his I hardly can trust myself that I read or quote correctly, northern frontier. If you look for his place on the map, when I find, in what I read, or from what I quote, the before you find it he has quitted it. He is always marchhonorable member from South Carolina, by his owning, flying, falling back, wheeling, attacking, defendconfession, hoping or expecting to accomplish any thing ing, surprising; fighting everywhere, and fighting all by executive influence; yet so it was spoken, and so it is the time. In one particular, however, the campaigns, printed-in this reliance, or this hope, or expectation, described in this letter, differ from the manner in which founded on executive influence, the honorable gentle- those of the great Frederick were conducted. I think man and his friends failed; and, failing in this, he says, we nowhere read, in the narrative of Frederick's they fell back on the sovereignty of the states, and achievements, of his taking a position to cover an enebrought the system to the ground "through the potency my, or a position to hold an ally in check. These refineof interposition;" by which he means neither more nor ments, in the science of tactics and of war, are of more less than nullification. So then, sir, according to this, recent discovery. that excessive fear of power which was so much cher ished by the nullifiers, was only awakened to a flame in their bosoms, when they found that they could not accomplish their own ends by the executive power of the president. Mr. President, public men must certainly be allowed to change their opinions, and their associations when ever they see fit. No one doubts this. Men may have grown wiser, they may have attained to better and more correct views of great public subjects. It would be unI am no authorized commentator, sir, on the doc- fortunate, if there were any code which should oblige trines or theories of nullification. Non nostrum. But, men, in public or private life, to adhere to opinions if this exposition be authentic, I must say it is not cal-once entertained, in spite of experience and better culated to diminish my opposition to the sentiments of knowledge, and against their own convictions of their that school. erroneous character. Nevertheless, sir, it must be acknowledged, that what appears to be a sudden, as well as a great change, naturally produces a shock. I confess, for one, I was shocked, when the honorable gentleman, at the last session, espoused this bill of the administration. And when I first read this letter of November, and, in the short space of a column and a We are to understand, then, sír, first, that the com- half, ran through such a succession of political movepromise act of 1833 was forced upon congress by statements, all terminating in placing the honorable member interposition, or nullification. in the ranks of our opponents, and entitling him to Next, that its object and design, so far as the honor-take his seat, as he has done, among them, if not at able gentleman was concerned in, was to break down their head, I confess I felt still greater surprise. All and destroy, forever, the whole protective policy of the this seemed a good deal too abrupt. Sudden movements of the affections, whether personal or political, are a little out of nature. But the gentleman goes on to tell us that nullification, or interposition, succeeded. By means of it, he says, he did bring the protective system to the ground. And so, in his published letter of November 3d, he states that "state interposition has overthrown the protective tariff, and with it, the American system." country. And lastly, that it has accomplished that purpose, and that the last vestige of that policy is wearing a way. Now, sir, I must say, that, in 1833, I entertained no doubt at all that the design of the gentleman was exactly what he now states. On this point, I have not been deceived. It was not, certainly, the design of all who acted with him; but, that it was his purpose, I knew then, as clearly as I know now, after his open avowal of it; and this belief governed my conduct at the time, together with that of a great majority of those in both houses of congress, who, after the act of 1824, felt bound to carry out the provisions of that act, and to maintain them reasonably and fairly. I opposed the compromise act with all my power. It appeared to me every way objectionable: it looked like an atttempt to make a new constitution; to introduce another fundamental law, above the power of congress, and which should control the authority and discretion of congress, in all time to come. This, of itself, was a conclusive objection with me; I said so then, have often said so since, and say so now, I said, then, that I, for one, should not be bound by that law more than any other law, except that, as it was a law passed on a very important and agitating subject, I should not be disposed to interfere with it, until a case of clear necessity should arise. On this principle I have acted since. When that case of necessity shall arise, however, should I be in public life, I shall concur in any alteration of that act, which such necessity may require. That such an occasion may come, I more than fear. Ientertain something stronger than a doubt upon the possibility of maintaining the manufactures and industry of this country, upon Buch a system as the compromise act will leave us, when it shall have gone through its processes of reduction. All this, however, I leave to the future. Several years ago, sir, some of the wits of England wrote a mock play, intended to ridicule the unnatural and false feeling, the sentimentality, of a certain German school of literature. In this play, two strangers are brought together at an inn. While they are warming themselves at the fire, and before their acquaintance is yet five minutes old, one springs up and exclaims to the other, "A sudden thought strikes me! Let us swear an eternal friendship!" This affectionate offer was instantly accepted, and the friendship duly sworn, unchangeable and eternal! Now, sir, how long this eternal friendship lasted, or in what manner it ended. those who wish to know, may learn by referring to the play. But it seems to me, sir, that the honorable member has carried his political sentimentality a good deal higher than the flight of the German school; for he appears to have fallen suddenly in love, not with strangers, but with opponents. Here we all had been, sir, contending agains: the progress of executive power, and more particularly, and most strenuously, against the projects and experiments of the administration, upon the currency. The honor able member stood among us, not only as an associate, but as a leader. We thought we were making some headway. The people appeared to be coming to our support and our assistance. The country had been roused; every successive election weakening the strength of the adversary, and increasing our own. We were in this career of success carried strongly forward by the current of public opinion, and only needed to hear the cheering voice of the honorable member, "Once more unto the breach, dear friends, once more!" Having had occasion, Mr. President, to speak of nullification and the nullifiers, I beg leave to say, that and we should have prostrated, forever, this anti-conI have not done so for any purpose of reproach. Cer- stitutional, anti-commercial, anti-republican, and antitainly, sir, I see no possible connexion, myself, between American policy of the administration. But, instead their principles or opinions, and the support of this of these encouraging and animating accents, behold! At that time, he says, state interposition (viz. nullification) had overthrown the protecting tariff and the American system, and put a stop to congressional usurpation; that he had previously been united with the national republicans; and that their joint attacks had brought down the power of the executive; but that, in joining such allies, he was not insensible to the embarrassment of his position; that, with them, victory itself was dangerous; and that, therefore, he had been waiting for events; that now, (that is to say, in September last,) the joint attacks of the allies had brought down executive power; that the administration had become divested of power and influence, and that it had be come clear that the combined attacks of the allied forces would utterly overthrow and demolish it. All this he saw. But he saw, too, as he says, that in that case the victory would enure, not to him or his cause, but to his allies and their cause. I do not mean to say that he spoke of personal victories, or alluded to personal objects, at all. He spoke of his cause. He proceeds to say, then, that never was there before, and never, probably, will there be again, so fair an opportunity for himself and his friends to carry out their own principles and policy, and to reap the fruits of their long and aduous struggle. These principles and this policy, sir, be it remembered, he represents, all along, as identified with the principles and policy of nullification. And he makes use of this glorious opportunity, by refusing to join his late allies in any further attack on those in power, rallying anew the old state rights party to hold in check their old opponents, the national republican party. This, he says, would enable him to prevent the complete ascendancy of his allies, and to compel the southern division of the administra tion party to occupy the ground of which he proposes to take possession, to wit, the ground of the old staterights party. They will have, he says, no other alternaive. Mr. President, stripped of its military language, what is the amount of all this, but that, finding the adminis tration weak, and likely to be overthrown, if the opposition continued with undiminished force, he went over to it, to join it; to act, himself, upon nullification principles; and to compel the southern members of the administration to meet him on those principles?-- in other words, to make a nullification administration, and to take such part in it as should belong to him and his friends. He confesses, sir, that in thus abandoning his allies, and taking a position to cover those in power, he perceived a shock would be created, which would require some degree of resolution and firmness. In this he was right. A shock, sir, has been created; yet there he is. This administration, sir, is represented as succeeding to the last, by an inheritance of principle. It professes to tread in the foot-steps of its illustrious predecessor. It adopts, generally, the sentiments, principles, and opinions, of general Jackson-proclamation and all: and yet, though he be the very prince of nullifiers, and but lately regarded as the chiefest of sinners, it receives the honorable gentleman with the utmost complacency; to all appearance the delight is mutual; they find him an able leader, he finds them complying followers. But, sir, in all this movement, he understands himself. He means to go ahead, and to take them along. He is in the engine-car; he controls the locomotive. His hand regulates the steam, to increase or retard speed, at his own discretion. And as to the occupants of the pas senger-cars, sir, they are as happy a set of gentlemen as one might desire to see, of a summer's day. They feel that they are in progress; they hope they shall not be run off the track; and when they reach the end of their journey, they desire to be thankful! The arduous struggle is now all over. Its richest fruits are all reaped; nullification embraces the subtreasuries, and oppression and usurpation will be heard of no more. On the broad surface of the country, sir, there is a spot called "the hermitage." In that residence is an both in person and character. Suppos, sir, the occu Occupant very well known, and not a little remarkable pant of the hermitage were now to open that dcor, enter the Senate, walk forward, and look over the chamber to the seats on the other side. Be not frightened, gentlemen, it is but fancy's sketch. Suppose he should thus come in among us, sir, and see into whose hands I proceed, sir, to the speech of the honorable member, delivered on the 15th of February last, in which he announces propositions, respecting the constitutional power of congress, which, if they can be maintained, must necessarily give a new direction to our legislation, and would go far towards showing the necessity of the present bill. The honorable member, sir, insists that congress has no right to make general deposites of the public revenue in banks; and he denies, too, that it can authorize the reception of any thing but gold and silver in the payment of debts and dues to the government. How is it possible, sir, the gentleman could so far forget his own agency in these most important transac tions, as to stand up here, the other day, and with an air not only of confidence, but of defiance, say: "But I take a still higher ground; I strike at the root of the mischief. I deny the right of this government to treat bank notes as money in its fiscal transactions. On this great question I never have before committed myself, though not generally disposed to abstain from forming or expressing opinions." I will only add, sir, that this reception and payment of bank notes was expressly recognised by the act of the 14th April, 1836; by the deposite act of June of that year, and by the bill which passed both houses in 1837, but which the president did neither approve or return. In all these acts, so far as I know, the honorable member from South Carolina himself concurred. So much for authority. has fallen the chief support of that administration, that congress cannot, constitutionally, authorize the This amendment was opposed, and for a time dewhich was, in so great a degree, appointed by himself, receipt of bank notes, though they be notes of specie-feated; but it was renewed, and finally prevailed. It and which he fondly relied on to maintain the principles paying banks, in payment of debts to government; be- was incorporated into the resolution, became part of of his own. If gentlemen were now to see his steady cause, he says, that would make them money; and if the law of the land, and so remains at this very momilitary step, his erect posture, his compressed lips, his we make them money, then are we bound to control ment. Sir, may I not now say to the honorable memfirmly knitted brow, and his eye full of fire, I cannot and regulate that money. Most certainly, sir, I agree ber, that if the constitution of the country has been help thinking, sir, they would all feel somewhat queer. with the honorable member, that when bank notes be- violated by treating bank notes as money-"Thou art There would be, I imagine, not a little awkward mov- come money, we are bound to control and regulate the man!" ing, and shifting in their seats. They would expect them. I thank him for this admission; since it goes a soon to hear the roar of the lion, even if they did not great way to support that proposition, for which I have feel his paw. been contending That bank notes have become money in fact, that they answer the uses of money, that, in many respects, the law treats them as money, is certain. Why, then, are we not already bound to control and regulate them? The gentleman will say, because we have not, ourselves, made them money. But is that any answer? If they have become money in fact, they require the same regulation, and we have the same authority to bestow it, as if they had acquired that character by any acts of our own: because our power is general; it is to take care of the money of the country, and to regulate all the great concerns of commerce. But let us see how this opinion of the honorable These questions, sir, are questions of magnitude, cer- member stands upon the authorities in our own histainly, and since they have been raised, ought to be tory. answered. They may be considered together. Allow When the first bank was established, the right of me in the first place, however, to clear them from some congress to create such a corporation was, as we all But now, sir, what is the principle of construction extraneous matter. The honorable member puts the know, very much disputed. Large majorities, how-upon which the gentleman relies to sustain his docfirst question thus: Have we the right to make depos-ever, in both houses, were of opinion that the right ex-trine? "The genius of our constitution," he says, "is ites in the banks, in order to bestow confidence in isted, and they therefore granted the charter; and in opposed to the assumption of power." This is unthem, with a view to enable them to resume specie pay- this charter there was an express provision that the doubtedly true: no one can deny it. But he adds, ments? And, by way of illustration, asks the further bills of the bank should be receivable in all payments "whatever power it gives, is expressly granted." question, whether government could constitutionally to government. Those who opposed the bank did not But I think, sir, this by no means follows from the bestow on individuals, or a private association, the same object to this clause: on the contrary, they went even first proposition, and cannot be maintained. It is doubtadvantages, in order to enable them to pay their debts? much farther; and Mr Madison expressly insisted that less true that no power is to be assumed; but then powBut this I take not to be the question. The true in- congress might grant or refuse, to state banks, the ers may be inferred, or necessarily implied. It is not a quiry is, may not congress authorize the public revenue, privilege of having their notes received in revenue. In question of assumption, it is a question of fair, just, in the intervening time between its receipt and its ex- 1791, therefore, men of all parties supposed that con- and reasonable inference. To hold that no power is penditure, to be deposited in banks, for the general pur- gress, in its discretion, might authorize the receipt of granted, and no means authorized, but such as are pose of safe-keeping, in the same way as individuals bank notes. The same principle was incorporated into granted or authorized by express words, would be to deposite their own money? And if this mode of safe- the bank charter of 1816: indeed, it was in the bill establish a docrine that would put an end to the gov keeping be attended with incidental advantages, of which the gentleman himself reported; and it passed ernment. It could not last through a single session of considerable impor ance to the community, is not that without objection from any quar er. But this is not all. congress. If such opinions had prevailed in the bea reason which may properly govern the discretion of Mr. President, let us look into the proceedings of the ginuing, it never could have been put in motion, and congress in the case? To benefit the banks, or to bene- session of 1815-'16, a little more closely. At the com- would not have drawn its first breath. My friend, near fit the community, is, in this case, not the main object; mencement of that session, Mr. Madison drew our at- me, from Delaware, has gone so fully and so ably into it is only the incident; and as to the case put for illus- tention to the state of the currency; by which he meant this part of the subject, that it has become quite unnetration, it would not be expected of congress, certain- the paper currency of the country, which was then cessary for me to pursue it. Where the constitution ly, to make deposites with individuals with a view very much disordered, as the banks had suspended confers on congress a general power, or imposes a principally, of enabling such individuals to pay their specie payment during the war, and had not resumed. general duty, all other powers necessary for the exerdebts: it might, nevertheless, be very competent to con- Early in the progress of the session, the honorable cise of that general power, and for fuifiling that duty, gress, in some cases, and a very proper exercise of its member from South Carolina moved that this part of are implied, so far as there is no prohibition. We act power, to deposite money, even with individuals, in the message should be referred to a select committee. every day upon this principle, and could not carry on such manner as that it might be advantageous to the It was so ordered. The committee was raised, and the government without its aid. Under the power to depositary. This incidental or consequential advan- the honorable gentleman placed at its head. As chair- coin money, we build expensive mints--fill them with tage results, often, from the nature of the transaction, man of the committee, he introduced the bank bill, ex-officers-punish such officers for embezzleinent-buy and is inseparable from it. It may always be enjoyed, plained it, defended it, and carried it triumphantly bullion-and exercise various other acts of power. more or less, by any one, who holds public money for through the house, having in it the provision which I disbursement. In order to the necessary exercise of any have before mentioned. of its powers, government doubtless may make con- But there is something more. At the same session tracts with banks or other corporations as well as with the gentleman introduced the bill for the further colindividuals. If it has occasion to buy bills of exchange, lection of the revenue, to which I have already referit may buy them of banks. If it has stock or treasury red, and in which bill he carried the receivability of notes to sell, it may sell to banks, as the secretary of the bank notes much further, and provided that notes of The department of the post office is another, and treasury has lately proposed. It may employ banks, any bank or bankers which were payable and paid, on de- signal instance, of the extent and necessity of implied therefore, at its discretion, for the keeping of the pub- mand, in specie, might be allowed and accepted in all pay- powers. The whole authority of congress over this lic moneys, as those moneys must be kept somewhere. ments to the United States. So that the honorable gen- subject is expressed in very few words; they are mereIt can no more need a specific grant of power in the tleman himself drew, with his own pen, the very first ly to establish post offices and post roads." Under constitution for such a purpose, than one merchant, be- legal enactment in the history of this government, by this short and general grant, laws of congress have coming agent for another to receive and pay out mo- which it was provided that the notes of state banks been extended to a great variety of very important enney, would need a particular clause in his authority, should be considered and treated as money at the actments, without the specific grant of any power enabling him to use banks for these purposes as other treasury. Still further, sir. The bill containing this whatever, as any one may see who will look over the persons use them. No question has ever been raised in provision did not pass the house; and as I deemed some post office laws. In these laws, among other provi this government about the power of congress to author- provision necessary, indispensably necessary, for the sions, penalties are enacted against a great number of ize such deposites. Mr. Madison, in opposing the first state of things then existing, I introduced, I think, the offences; thus deducting the highest exercise of crimibank char er in 1791, argued, strenuously, that a bank very next day after the failure of the honorable gentle-nal jurisdiction, by reasonable and necessary inference, of the United States was not necessary to government man's bill, three resolutions. The two first were mere- from the general authority. But I forbear from traversas a depository of the public moneys, because, he in-ly declaratory, asserting that all duties, taxes, and im-ing a field already so fully explored. sisted, its use could be supplied by other banks. This posts, ought to be uniform, and that the revenues of the There are one or two other remarks, sir, in the gensufficiently shows his opinion. And in 1300, congress United States ought to be collected and received in the tleman's speech, which I must not entirely omit to nomade it the duty of the collectors of customs to de- legal currency, or in treasury notes, o the notes of the tice. posite bonds for duties in the bank and its branches for Bank of the United States, as by law provided. These collection. two resolutions I agreed to waive, as it was thought hey were not essential, and that they might imply some degree of censure upon past transactions. The third resolution was in these words: When the charter of the first bank expired, in 1811, almost every gentleman who opposed its renewal contended that it was not necessary for the purpose of holding deposites of revenue, because s ate banks could answer all such purposes equally well. A strong and prevailing tone of argument runs through all the speeches on that occasion, tending to this conclusion, viz. that government may derive from state banks all the benefit which a bank of the United States could render. In 1816, when the charter of the last bank was granted, it contained, as originally presented, no provision for making the public deposites in the bank. The bill was probably drawn, in this particular, from the model of the first charter, in which no such clause was contained, without adverting to the law of 1800; but a section was introduced, on my motion, making it the duty of collectors to deposite the public moneys in the bank and its branches. It was this section of the law which some of us thought was violated by the removal of the deposites. The main object of the deposite bill of 1836, as we know, was to regulate deposites of the public money with the state banks; so that, from the commencement of the government to the present time, nobody has thought of making any question of the constitutional power of congress to make such arrange ments. The gentleman's other proposition, and which he lays down with still more confidence and emphasis, is, "And resolved, further, That the secretary of the treasury be, and he hereby is, required and directed to adopt such measures as he may deem necessary to cause, as soon as may be, all duties, taxes, debts, or sums of money accruing or becoming payable to the United States, to be collected and paid in the legal currency of the United States, or treasury notes, or notes of the Bank of the United States, as aforesaid; and that from and after the 1st day of February next, no such duties, taxes, debis, or sums of money accruing or becoming payable to the United States as aforesaid, ought to be collected or received otherwise than in the legal currency of the United States, or treasury no es, or notes of the Bank of the United States, as aforesaid." The senate will perceive that, in this resolution of mine, there was no provision whatever for receiving bank notes, except of the Bank of the United States, according to its charter. Well, what happened thereon? Why, sir, if you look into the National Intelligencer of a succeeding day, you will find it stated, that Mr. Calhoun moved to amend Mr. Webster's resolution by "extending its provisions to the notes of all banks which should, at the time specified therein, pay their notes in specie on demand." The constitution says that the judicial power of the United States shail be vested in certain couris. Under this general authority we not only establish such courts, but protect their records by penalues against forgery, and the purity of their administration by punishing perjuries. In speaking of the beneficial effects of this measure, one, he says, would be, that "the weight of the banks would be taken from the side of the tax-consumers, where it has been, from the commencement of the government, and placed on the side of the tax-payers. This great division of the community necessarily grows out of the fiscal action of the government." Sir, I utterly deny that there is the least foundation, in fact, for this distinction. It is an odious distinction, calculated to inspire envy and hatred; and being, as I think wholly groundless, its suggestion, and the endeavor to maintain it, ought to be resisted, and repelled. We are all tax-payers, in the United States, who use articles on which imposts are laid; and who is there that is excused from this tax, or does not pay his proper part of it, according to his consumption? Certainly no one. On the other hand, who are the tax-consumers?Clearly, the army, the navy, the laborers on public works, and other persons in government employment. But even these are not idle consumers; they are agents of the government and of the people. Pensioners may be considered as persous who enjoy benefit from the public taxes of the country, without rendering present service in return; but the legal provision for them stands on the ground of previous merits, which none deny. If we had a vast national debt, the annual interest of which was a charge upon the country, the holders of this debt might be considered as tax-consumers. But we have no such debt. If the distinction, therefore. |