will be to place the relations between overthrow of the present ministers, and the United States and England on the bring in men prepared and pledged to grant most friendly basis. If you want us all that we ask, both in relation to trade Texas, take it. If you want Mexico, and to boundary.",

Mr. Calhoun was tendered and actake it. Our policy will be rich customers rather than poor colonies, and cepted the appointment as Secretary we know that both Texas and Mexico of State, and reference to his negotiawill be worth much more to us if you tion will show that his purpose was to have them than if we have them our-maintain our right in Oregon up to selves."

49°, intending, that being conceded, to extinguish the British claims on the MR. CALHOUN, TEXAS, AND MEXICO. Pacific coast by purchase. At his reThese facts and conversations were quest I went to Mexico to aid in concommunicated from London to Mr. ducting the negotiation for the acquisi Tyler and Mr. Calhoun, in letters urg- tion of Texas, New Mexico, and Caliing upon the President the appoint- fornia, and upon handing me his letter ment of Mr. Calhoun as Secretary of of instructions, he remarked: "If you State, and upon the latter, that it was succeed in this negotiation our comhis duty to accept, that he might con- merce in the Pacific will, in a few duet the negotiation for the annexation years, be greatly more valuable than of Texas, the purchase of California, that in the Atlantic." and the adjustment of our northwestern boundary.

The following is an extract from a letter to Mr. Calhoun, dated London 29th September, 1843 :.

INTERFERENCE OF THE BRITISH CHARGE.

Upon reaching Mexico I found Santa Anna at the head of an army opposed to Herera, who was at the head of Congress, and as nothing could be done without the concurrence of the President and Congress, an arrangement was made for a movement in Texas which would enable the United States to interpose, and thus obtain

"If you go into Mr. Tyler's cabinet you can control events. It will not do for you to say that you cannot consent to take a subordinate station. That is placing your self above the public interests. As a citizen of the republic you owe your services wherever they can be available. The the concessions wanted. I came to

crisis in which the relations between the

United States and England are placed, Texas, explained to the President of is such as to demand of you any sacrifice. Texas and to the Congress, the measI do not believe that there is any man who ures which had been agreed on, and cán render as much service to the country, which would have been approved and especially to the cause in which you have adopted but for the interference of Mr. so long labored, as you can do by coming Elliot, the British Chargé to Texas, who into the State Department, and it is mani-induced the President, Mr. Jones, to fest that being there you can do much if believe that he could and would induce you cannot accomplish all that we desire the Mexican government to recognize in relation to England. If you are in the the independence of Texas; and havState Department, and invite that government to send a commission, and they fail ing, by that assurance, defeated the to send them, or sending them fail satis- pending measures, did go to Mexico factorily to adjust all the points of difficulty and obtained a propósition of the between us, it will, I am sure, cause the Mexican government to treat with

Texas, for the recognition of her in- whence the British navy, which is dependence, upon the condition that to enforce and protect British mariTexas should not be annexed to the time and commercial supremacy in the United States. (See Appendix.)

THE PURPOSE OF THIS REFERENCE

Pacific, is to communicate with and receive the orders of the admiralty in London; and hence, Sir Morton To the past history of this country, Peto and his associates expended more as connected with the measures and than seventy millions of dollars in the policy of England, is to connect that construction of the Grand Trunk Railpast history with subsequent events. road of Canada. Hence, the elder son The war in the Crimea, and the de- of the Queen of England crossed the struction of the Russian fleet by the ocean and laid the capstone of the combined armies and navies of Eng- Victoria bridge; and hence, again, land and France, and the closing of Sir Morton and his associate capitalists the Black sea and the Dardanelles, com- have appropriated their hundreds of pelled Russia to look to the naviga- millions to build railways connecting tion of the Amoor river (the Mississippi their Grand Trunk Railway with the of Northern Asia), and a railroad con- Pacific; and hence, they promise to necting that navigation with Moscow give any sum that may be required to and St. Petersburgh, as the only means facilitate their communications with of participating in the trade with In- their navy and their commerce on the dia and China; and therefore the ink, Pacific. Does any one ask what conupon the treaty of Paris, was scarcely nection there is between the Grand dry before the agents of Russia were Trunk Railroad of Canada, Sir Morton found in Japan and China, and pro- Peto and the Pacific road, the British posals were issued for a loan of two naval depot in Puget's Sound, the hundred and fifty millions of dollars French movement in Mexico, and the to construct a railroad connecting St. anti-slavery conspiracy? In reply we Petersburg and Moscow with the refer to the fact, that France united Amoor and the Russian territory newly with England in the wars in the Crimea acquired from China. It will be re- and in China-that while England membered that during the Crimean war arrests the progress of Russia by a the British fleet were repulsed in their bloody and expensive war, she not only attack on the Russian fleet at the tolerates the acquisitions of France, mouth of the Amoor, and with this including the Suez canal, and her conknowledge of the purposes of Russia, quests in Cochin-China, but she recogand of England and France, we are at nises and approves the occupation and no loss to account for the wars in In-appropriation of Mexico, as part of dia and China. Who so blind as not the measures, which are intended to to see

THE INCREASED VALUE OF VANCOUVER'S

ISLAND AND PUGET'S SOUND?

Oregon is no longer the most remote part of the habitable globe to England. Its value is no longer estimated by the

prevent the maritime and commercial supremacy of the United States, who are admitted to be her only rival on the seas.

TRIBUTE TO FOREIGN CREDITORS.

Let us pause for a moment and sur

fur trade. It has become the depot vey our position. We have seen that

the annual contributions levied upon England," that "the only use of Ameri us by our foreign creditors, in the can colonies or West India islands is the shape of interest and dividends on monopoly of their consumption and the federal and state bonds, and railroad carriage of their produce." Then our bonds and shares, are at least one ancestors were compelled to send their hundred millions of dollars, which "sugar, molasses, ginger, fustic, tosum, compounded at six per cent. per bacco, cotton, indigo, coffee, hides, annum for thirty-two years, will give skins, iron, corn, lumber," &c., &c., “in nine thousand and eighty-eight millions British-built ships, to be laid upon the dollars. Suppose that by the use of British shore, before they could be forforeign capital to build our roads, warded to their final destination." The we treble this annual tribute, we will plan of restoring the control of the pay three hundred millions of dollars bank of England and of the "money per annum for the privilege of riding merchants" of England, over our credit on American railroads owned by Brit- and our currency, and surrendering to ish capitalists, and paying British them the construction and control of rates for the transportation of Ameri- our railroads, will enable them to levy can produce, purchased by British and collect a tribute upon our travel agents at British prices!! Will not and transportation by land, like unto such a system convert us into hewers the tribute they levied and collected of wood and drawers of water for the from our ancestors upon their travel benefit of British capitalists? We and transportation by sea. Why should have seen that the time once was we go to England and pay her a when our ancestors were compelled to tribute for the privilege of using her sell and to buy from our British task-public debt to build our railroads? masters and from them only. When Why should we not use our public "it was the decided opinion of almost debt as she has used hers? all the merchants and politicians of

CHAPTER XVII.

CONGRESS TO REGULATE THE VALUE OF MONEY.

OF WEIGHTS AND MEASURES.

THE HE Constitution gives to Congress sole power to determine whether our power to coin money and to reg- money shall be metallic or paper. ulate its value, and of foreign coins. It also provides that no state shall coin money, emit bills of credit, or As a further elucidation of the purmake anything else than gold and sil-pose of the Constitution, the same ver coin a legal tender in payment of clause which gives the power to coin debts, and it is obvious that, in the money and to regulate its value, gives construction of these provisions, we to Congress power to fix a standard of should refer to the contemporaneous weights and measures. It is manifest history of the times, as explanatory of that the purpose was to give to Contheir purpose. İn doing this, we find gress the control over the standard of that each of the states had issued values and of quantities so as to enpaper money, which under the Consti- able contracting parties to know pretution they were forbidden to do. We cisely what the one is bound to dealso find that the confederate congress liver and the other is entitled to rehad issued paper money, which, by ceive for money bears the same rela+ the federal constitution, the federal tion to the values of property that the Congress were not forbidden to do. yard-stick does to the quantity of It is, therefore, obvious that as the cloth, and that weights and measures unrestricted power to coin money and do to commodities. regulate its value, whether metallic or

paper, was given to Congress, and CAN CONGRESS REGULATE THE VALUE OF GOLD AND SILVER COIN, that although the states were forbid

den to issue paper money, no such re- So long as the Bank of England, by striction was placed on the power of refusing to renew the discount of comCongress, therefore Congress may is-mercial paper, and raising the rate of sue paper money. And why were the interest, can so increase the value of states forbidden to issue paper money? gold in London as to cause large shipIt was because, if each of the states ments of gold from New York to Lonwere permitted to issue "bills of don? Would it be a proper discharge credit," neither Congress nor the states of their duty if Congress were to percould regulate their value. The pur-mit the Bank of England to reduce the pose was to create a common money length of the yard stick one half when of like value in all the states, and the we buy English cloths, and double the sole power of coinage and of regula- weights when we sell them American ting its value was, therefore, given to cotton? If Congress permits the Bank Congress, leaving with Congress the of England to quadruple the value of

money, and to thus cause a correspond-gold or silver or in exchequer bills, ing depreciation in the exchangeable for an amount equal to the sum of the value of property, would that be a four-per-cent. bonds deposited for their proper exercise of the power to regu- redemption.

late the value of money?

5th. No one to be authorized to issue

In view of the obligations devolved bank notes who shall not have de upon Congress by the Constitution, posited the requisite four-per-cent. cou and the exigencies of the political, pon bonds as a security for their refinancial, commercial, and industrial demption in exchequer bills,

crisis in which we are placed, I prepared and submitted to the Secretary of the Treasury the following

6th. The bonds deposited as a security for the redemption of bank notes, the exchequer bills held by a bank, the capital stock and the profits of banks,

PLAN FOR NATIONAL BANKS AND NATIONAL to be exempt from taxation by author

CURRENCY.

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1st. All payments by the United States to be made in gold or silver, or else in exchequer bills or four-per-cent. coupon bonds.

ity of the federal or state government, 7th. The rate of interest charged by banks on loans and on advances of money, never to be more than five per cent. per annum.

2d. The exchequer bills to be re- 8th. Any person to be permitted to ceivable in payment of all dues to the deposite gold or silver in the Treasury United States; to be of denominations of the United States, and, with the assuited for currency; to be a legal sent of the Secretary, receive certifi tender in payment of debts, unless cates payable in specie, which certifi otherwise stipulated by special con- cates shall always be receivable at par tract; and at all times convertible, at in payment of customs duties. the will of the holder, into four-percent. coupon bonds of the United States.

9th. Customs duties to be payable with the assent of the Secretary of the Treasury, in exchequer bills, at

3d. The bonds to be of denomina- their current market value in gold.

tions not less than five hundred dollars, payable at the pleasure of the government, bearing interest, at the rate of four per cent., payable semiannually, in exchequer bills, and at all times convertible, at the will of the holder, into exchequer bills.

COMMENT.

A bank note is worth as much as gold if it be convertible into gold, and it is worth as much as gold because it is so convertible. The convertibility >. into gold, is therefore the principle 4th. Any person, or association of which regulates its value; and therepersons, who may have deposited fifty fore the value depends upon the value. thousand dollars or more with the of the gold into which it may be conTreasurer of the United States, in the vertible. We know that Mr. Cobb, four-per-cent. coupon bonds of the while Secretary of the Treasury, paid United States, as a collateral security off part of the national debt, at twenty for the redemption of their bank notes, per cent. premium; and therefore if our to be authorized to become bankers bank notes had then been convertible inand to receive from the Comptroller of to our six per cents., then our bank notes the Currency bank notes, payable in would have been worth twenty per

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