States, in stocks of States, bearing interest at the rate of not less than 5 per centum per annum, which said stocks shall be held by the said Secretary in trust for the uses specified in the last will and testament of said Smithson, until provision is made by law for carrying the purpose of said bequest into effect; and that the annual interest accruing on the stock aforesaid shall be in like manner invested for the benefit of said institution.

Mr. FILLMORE asked that as the bill contained no appropriation, and needed not therefore to be committed, it be put on its third reading then.

Passed.

September 3, 1841-Senate.

The bill from the House of September 2, 1841, to repeal the sixth section of the act entitled "An act to provide for the support of the Military Academy of the United States for the year 1838," etc., was read twice; and, on the question of reference coming up,

Mr. A. H. SEVIER said this bill was one of a most extraordinary character. It was to repeal existing contracts, and to violate treaty stipulations with the Indians without their consent. He moved to lay the bill on the table.

Mr. W. C. PRESTON appealed to the Senator to withdraw his motion. He was disposed to entertain a similar opinion of the bill, but thought it more respectful to the House to refer it to a committee. He would therefore move to refer it to the Committee on Finance.

Mr. SEVIER said, if it was to be referred at all, it ought to be referred to the Committee on Indian Affairs.

Mr. R. J. WALKER concurred in this view.

Mr. LEVI WOODBURY made some remarks to the effect that the bill could be only prospective in its character, and would have no effect on existing contracts.

Mr. J. C. CALHOUN said this bill involved questions of an important character, which it was very evident would require more time for their consideration than could be devoted to them at the present session. He would therefore move to lay the bill on the table.

The motion was negatived.

Mr. SEVIER then moved its reference to the Committee on Indian Affairs. Lost.

The motion of Mr. PRESTON was then agreed to, and the bill referred to the Committee on Finance.

September 4, 1841.

Act of Congress to appropriate proceeds of the sales of public lands and to grant preemption rights to States, enabling them to pay interest and principal of the State bonds held by the Government.

Included Ohio, Indiana, Illinois, Alabama, Missouri, Mississippi, Louisiana, Arkansas and Michigan.

(Stat. V, 453.)

September 8, 1841-Senate.

Mr. GEORGE EVANS, from the Committee on Finance, reported, with an amendment, the bill from the House to repeal the sixth section of the act for the support of the Military Academy at West Point for 1838, and to prohibit the investment of trust funds of the United States in the stocks of the several States.

The Senate proceeded to consider the same, and the bill was amended, so as to strike out all after the enacting clause, and insert:

That so much of the sixth section of the act to provide for the support of the Military Academy of the United States for 1838 as requires the Secretary of the Treasury to invest the annual interest accruing on the investment of the money arising from the bequest of the late James Smithson, of London, in the stocks of the States, be, and the same is hereby, repealed; and the Secretary of the Treasury shall invest said accruing interest in any stock of the United States, bearing a rate of interest not less than 5 per cent per annum.

Mr. A. H. SEVIER made some observations in relation to the amendment not distinctly heard in the gallery.

Mr. EVANS remarked that the repeal affected that portion only of the bill of 1838 which related to the investment of the funds of the institution, and accruing interest in State stocks; the investment to be changed to United States stock.

Mr. J. C. CALHOUN requested the bill and amendments would be read.

The bill was then read.

Mr. CALHOUN wished to know what was to be done with the funds when there was no United States stock to be had. If all authority to invest them and the accruing interest in other stocks was repealed, and there should be no United States stock in the market, or in existence, what was to be done with the money?

Mr. EVANS replied that all that had been taken into consideration in committee, and it was the unanimous impression that there would be a sufficient supply of United States stock in existence for the next three years at least, and that no difficulty could arise in that way. If, however, any difficulty of that nature should arise, provision could be made by Congress in time to meet it.

Mr. ARCHIBALD L. LINN considered the whole thing as a direct attack upon the credit of the States. Here was an act of Congress implying on the very face of it a discredit of State stocks. Was not this calculated to depress State stocks, both in the home and foreign markets?

Mr. EVANS observed that it was the standing of the State stocks in those markets which had called for the amendment of the act of 1838.

Mr. LINN called the attention of the Senate to this fact; that the Democratic party, during the last political struggle of the party now administering the Government to get into power, had been slandered,

vilified, and abused with the most unfounded charges of designs to discredit the States of this Union. The Democratic party had been denounced from one end of the Union to the other for having prostrated the whole credit system. They were pronounced traitors to their country, and a continued stream of vituperation was poured out upon them from June, 1839, to the close of the Presidential election, with a view of enlisting the prejudices of every one connected with State stocks against the continuation of the Democracy in power. Yet, what spectacle do we now see presented to the country? What but that to be expected from the Whig party, which had so notoriously proved to the world that their professions out of power were one thing and their performances in power quite another and a different thing? Now that they have the first opportunity, they offer the most outrageous, treacherous, and fatal stab to the State stock credit system that ever was attempted by any representatives of the people or the States. But he was glad the gentleman had shown the true character of their professions contrasted with their performances.

Mr. LEVI WOODBURY considered there were other things which ought to be taken in view. Besides the fatal stab thus offered to the credit of State stocks, the institution itself might be deprived of the advantage of investing its funds in stock no less secure than United States stock, though for temporary causes depreciated, but sometimes yielding an opportunity of purchase at 60 or 65, when United States stock might be at more than 100.

Mr. CLAY said the relation between the Government and the States, of the latter being debtors to the former, ought always to be avoided; for what means could be used to coerce the States if they refused to pay? We had stocks of our own in which this trust fund of the Government could be invested. He should prefer the adoption of this principle, that in all cases of trust funds an account should be opened with the Government of the United States, and that the fund should be held in the Treasury, and it pay an annual interest on it until its object was accomplished. He regarded this Smithsonian fund as a sacred trust which the Government would be bound to restore if it should ever be lost; and that being the case-the Government being responsible for them-it would be better that they should remain in the Treasury, under our charge.

Mr. BENJAMIN TAPPAN was understood to concur in this opinion, and after some further remarks by Mr. WOODBURY, Mr. CALHOUN, and Mr. SEVIER the amendment was engrossed, the bill read a third time, and passed.

On motion of Mr. EVANS, its title was amended so as to be, in effect, "an act to repeal a part of the sixth section of the act for the support of the Military Academy of the United States for 1838, and for other purposes."

September 9, 1841.

Report of T. Ewing, Secretary of Treasury.

State stocks held by the Treasury Department, in trust for the Smithsonian Institution.

On motion of Mr. J. Q. ADAMS, the House took up the bill providing for the repeal of so much of the sixth section of the Military Academy act of 1838, as provides for the investment of the Smithsonian funds in State stocks; and the Senate amendments thereto were amended in several respects, and the bill was returned to the Senate.

September 10, 1841-House.

The House considered the message from the Senate in relation to the amendments of the House to the amendment of the Senate to the bill H. 34, when it was

Resolved, That this House concur in the amendment of the Senate to the first amendment of this House to the amendment of the Senate to said bill, and recede from their second amendment to the amendment of the Senate to said bill, and that the bill do pass accordingly. September 11, 1841.

Be it enacted, etc., That so much of the sixth section of an act entitled "An act to provide for the support of the Military Academy of the United States for the year 1838, and for other purposes," as requires the Secretary of the Treasury to invest the annual interest. accruing on the investment of the money arising from the bequest of the late James Smithson, of London, in the stocks of States, be, and the same is hereby, repealed. And the Secretary of the Treasury shall, until Congress shall appropriate said accruing interest to the purposes prescribed by the testator for the increase and diffusion of knowledge among men, invest said accruing interest in any stock of the United States, bearing a rate of interest not less than five per centum per annum.

SEC. 2. And be it further enacted, That all other funds held in trust by the United States, and the annual interest accruing thereon, when

not otherwise required by treaty, shall in like manner be invested in stocks of the United States, bearing a like rate of interest.

SEC. 3. And be it further enacted, That the three clerks, authorized by the act of June 23, 1836, "to regulate the deposits of the public money," be, and hereby are, directed to be retained and employed in the Treasury Department, as provided in said act, until the state of the public business becomes such that their services can conveniently be dispensed with.

(Stat., V, 465.)

December 7, 1841-Senate.

*

*

Message of the President, John Tyler.

I suggest for your consideration the propriety of making, without further delay, some specific application of the funds derived under the will of Mr. Smithson, of England, for the diffusion of knowledge, and which have heretofore been vested in public stocks, until such time as Congress should think proper to give them a specific direction. Nor will you, I feel confident, permit any abatement of the principal of the legacy to be made, should it turn out that the stocks in which the investments have been made had undergone a depreciation.

* * *

December 10, 1841-House.

Mr. MILLARD FILLMORE offered a resolution for the appointment of a select committee on the Smithsonian legacy.

Adopted; and Mr. John Quincy Adams of Massachusetts, Mr. Richard W. Habersham of Georgia, Mr. Truman Smith of Connecticut, Mr. Joseph R. Underwood of Kentucky, Mr. Benjamin Randall of Maine, Mr. Charles J. Ingersoll of Pennsylvania, Mr. Robert M. T. Hunter of Virginia, Mr. George S. Houston of Alabama, and Mr. Samuel S. Bowne of New York were appointed said committee.

December 15, 1841-House.

Mr. WILLIAM COST JOHNSON presented the memorial of sundry citizens of Washington City, praying an early disposition of the funds of the Smithsonian bequest, in conformity with the wishes of the donor.

Referred to the select committee on the Smithsonian bequest. December 29, 1841-Senate.

On motion by Mr. W. C. PRESTON, it was ordered that the President's message, relative to the Smithson bequest, be referred to the Committee on the Library-Mr. W. C. Preston, Mr. Benjamin Tappan, Mr. Rufus Choate.

January 3, 1842-House.

Resolved, That so much of the message of the President of the United States as relates to the Smithsonian legacy be referred to the select committee on that subject.

H. Doc. 732-15