dollars. [H. OF R cently loaned to the banks which have suspended specie moneys. Now, I think I have clearly shown that her payments; if this be the case, to that extent, at least for whole probable available means do not exceed 620,774 the present, these balances are not available. Thus, then, it is seen that, so far from being able to There can be no doubt that, under the existing cir meet all its engagements, by a curtailment of 30 per cumstances of the country, the whole amount of the centum in three equal calls, at sixty, one hundred and public funds will be immediately required. In this twenty, and one hundred and eighty days, it will require event, the result is inevitable-a deficiency to meet the 63 per centum on $755,476, the amount of discounts, to Treasurer's drafts, of 192,621 dollars. And what now enable the bank to meet its just demands; and when or becomes of the holders of the notes and of the claims of where so large a sum can be raised to meet these demands, individuals? They must rely upon collections to be made is a question of fearful import, not only to the directors from the discounted debt, and from the sale of the stock of this institution, but, allow me to add, to this House, as of their own bank. I think I have clearly shown that well as to those who have assumed the responsibility of con- these are not to be relied on; but it must be further refiding the money of the people to such places of deposite. collected that the United States has a preference over But, sir, I have seen it stated that the Bank of the individuals; and as it is highly probable all the public United States has made repeated "runs," as they are moneys will be required in the course of the year for the technically called, upon the Bank of the Metropolis, with current expenses of the Government, the other creditors the view to destroy it by abstracting all its specie: I be- of this bank must look to it in due season; otherwise, lieve this is not true. I have sought the necessary infor- they will be left to get their pay as best they can. mation, and understand that there has been but a single Under all these circumstances, then, what claim has demand made for specie by the United States Bank on this or any of the deposite banks upon the forbearance that bank, and that for fifty thousand dollars only, while of the United States Bank? Surely none. And the the state of the balances between the two institutions more so, as further forbearance on her part can only Fould have authorized a demand of not less than half a tend to jeopardize the interests of her own stockholders, Elton: nor could this have been imputed to the Bank of and finally deprive her of so much additional means to the United States as an act of injustice, or as one she would enable her, when the great crisis shall at length arrive, not have been sanctioned in adopting, under the existing which is destined to convulse the whole community, if Fate of warfare waged against her; for I venture to as- not shake the very foundations of our Union itself, to resert that the deposite bank holds not a dollar of coin in main firm and unmoved at her moorings. her vaults that has not been directly or indirectly withdrawn from the Bank of the United States, or some one of her branches; the illegality and unconstitutionality of which have been so clearly demonstrated. Sir, the course pursued by the United States Bank, in this instance, is precisely that adopted by her in her relations with all the State banks an entire elevation above all personal animosities, and a regard solely to the credit of the country at large, and the convenience of all the great interests of Phe nation. "This will be seen, more distinctly, in the following parison of the business and deposites of the three pices where the present pressure is mainly ascribed to the reductions of the bank; that is, at Philadelphia, New York, and Boston. At those places Public deposites. The loans were Domestic bills. J. 2, $12,509,778 15 $6,317,700 28 Dec. 2, 11,639,130 47 4,037,642 70 Redact's, $870,647 68 $2,280,057 58 $4,040,761 83 making the actual reduction of loans only $870,647 68, a reduction of Government deposites, of $4,040, 751 83. "And taking the bills into consideration, the whole reduction of loans and bills will be only $3,150,705 26, for a reduction of deposites of $4,040,761 83; and all this at moment when secret drafts to the amount of $2,300,000 were hanging over the bank. That she will be enabled to do this, I firmly believe, and will now proceed to make manifest. (See end of speech.) The analysis I am about to make is one embarrassed by no difficulties. It presents itself in a form intelligible to the plainest understanding. It is purely a matter of official statement. It involves the vast concerns of a great and thriving nation. It develops the secret springs of all the great interests of society. It plainly exposes the nerves and fibres of all those springs, and shows what exquisite skill is necessary in the employment of them, and what exquisite skill has been brought to hear upon their past operation. I mean not, sir, to repeat all or any of the arguments which, in the course of this painful session, have been uttered with so much eloquence and effect upon this floor against the acts and the policy of the President of the United States. I leave them to operate their full effects upon the minds of the people; and I call upon them maturely and deliberately to weigh the consequences which have already sprung from those acts, and the effect which is likely to be produced upon their own welfare, and the future prosperity of their children, by the new relations towards them and the constitution which the President has thought proper to assume. Sir, let it not be supposed that the people of these United States will permit themselves any longer to be deceived. Political means, to ensure political results, involving great principles of national policy, they will sanction; but when it shall once become manifest to their minds that political means are only used to smooth the way to broad, and uncontrolled, and unconstitutional power; that the hue and cry of political demagogues is to be raised against every principle, and every institution of the coun$4,719,972 80 try, and every co-ordinate branch of the Government 4,083,260 15 that opposes the inroad, or does not lend itself to the advance of power, then, sir, my life on it, they will shake $636,712 65 off the infatuation which has hitherto palsied their ener gies, and in the bold and energetic language of the ironcrowned monarch of ancient Lombardy, exclaim, "Gare à qui la touche." Sir, they will not be satisfied with the means proposed and now offered to them by the majority of this House to silence their cries, and evade their petitions for redress; they will reject the bill offered by "It will be seen how little reason there is to complain of the reductions of the bank. In fact, the bank, so far from endeavoring to oppress the State banks, has treated ther with the greatest liberality. Thus: The debt from the State banks on the of October, was On the 2d December, A diminution of only phde the bank reduced its own business upwards of five millions." There is yet, however, one other view in which this tter strikes me as being of deep moment. It will be remembered that this Bank of the Metropolis holds at present an amount equal to 814,395 dollars of the public H. OF R.] Presentation of Memorials. [JUNE 23, 1834. 10,385,439 15 2,035,985 00 10,180,008 76 2,195,489 00 3,094,787 v 12,298,333 20 3,329,362 - $7,892,290 05 While the reduction of deposites has been 8,277,417 70 Being more than the reduction of loans by The notes and debts of $12,298,333 20 3,329,362 00 385,127 65 2,515,662 51 1,634,891 69 15,627,695 21 While the notes in circulation amount to 16,612,527 66 the honorable chairman of the Committee of Ways and March 1 18,523,189 00 Means. They are not yet reduced to that condition of April 1 17,521,264 39 vassalage and imbecility which this bill presupposes. May 1 16,604,147 90 What, sir, legalize the unconstitutional acts of the Presi- June 1 16,612,527 06 dent by a remedy proposed by himself? Leave the con- Now, sir, let us test the conduct of the bank during stitution to wither, become a dead letter, and the law to this period of severe trial, and see whether she has for be prostrate at the foot of the executive throne, while gotten her duty to the public, and given herself up to a they rivet with their own hands the chains he has at- wanton spirit of retaliation, or whether she has not regn tempted to throw around them? No, sir, never. If the lated herself by an extreme prudence, and kept her a great means by which the currency has been hitherto tion always within the line forced upon her by the Execu regulated and controlled is to be abolished, and an old tive. Since the removal of the deposites, and condemned political expedient substituted in their The reduction of loans has been place, let it be done at least under the sanction of the law, and with all the forms prescribed by the constitution. The constitution and the laws must be redeemed. The President must purge his own heart and his councils of that obdurate arrogance which refuses to confess a wrong, and, laying aside his personal animosities, and his military notions, submit himself to public opinion, and in his executive action confine himself modestly within the limits prescribed by the constitution and the laws; then, sir, all the evils of which we complain will be at once remedied: and if the people so decide, the great object of his unrelenting vengeance will expire by her own limitation, and it will become the duty of Congress to provide other means to promote the general welfare. But, Mr. Speaker, it is assumed that the bank is the cause of all the distress and want of confidence, and general derangement into which the country has been thrown. Sir, that this is not true, is susceptible of of presidential patronage, of executive venom, and mathematical demonstration. I proceed to the proof. every corrupt press in the country, was brought to bear No one has denied the existence of the most unparal-upon her; to break her was a matter of life and death with leled state of prosperity with which the year 1833 her persecutors; no matter what amount of ruin ensued opened. The people were buoyant with hope, and the no matter to what degree public confidence was pros year promised a most abundant harvest. On the first trated, or the national currency deranged, the prestig day of October the President of the United States issued of military firmness, of glory, of victory, must not be his mandate, without previous notice, or any of the previ- assault upon the general welfare and prosperity of the "Carthage was to be destroyed;" and the unch ous arrangements which the importance of the measure, and a common feeling of benevolence to his countrymen, people was persevered in. The bank has remained un ought to have dictated: the public deposites were at once she has been enabled, from her position, to extend the touched. The whirlwind has swept by her, and, whi withdrawn from the place which the law had appointed hand of relief whenever and wherever it has been claimed without regard to party distinctions, she has defied storm. The immediate claims against her were the de posites and her circulation. The means immediately t be relied upon to meet these claims, are the specie an the debts from banks. for them. What then, sir, was the situation of the Bank of the United States? That there may be no mistake in this matter, I ask the attention of the House to the following statement. I pledge myself for its entire authenticity, and only desire that it may be carefully perused. It contains the amount of loans, of public deposites, and of private deposites, on the day the deposites were withdrawn, and on each succeeding month, up to the 1st of June instant. It presents, likewise, a concise view of the circulation of the bank, the amount of specie in her vaults, and the amount of debts and notes of State banks due, for the same period of time. They will be found to be as follows: Loans. Oct. 1 $60,094,202 93 57,210,604 38 Priv. depos. Here, Mr. Speaker, you have presented to your view a more remarkable instance of skill, sound managemen', and solvency, in an institution, than perhaps have ever before been manifested. During the whole period whis the most unrelenting persecution. The combined force this statement contemplates, the bank was the object c lost. shows the condition of the bank in these particulars whe fect that which violence failed to consummate. Total, 6,715,312 60 At the same time, the specie was 6,734,866 06 - $37,005,487 54,842,973 64 3,066,561 72 10,653,441 5 The debts from banks, 4,719,979 May 3,251,345 64 7,022,820 10 Total, 6,867,892 15 On the 1st June, the deposites are -$15,383,413 5 9,599,882 16,612,5270 $26,212,407 12,298,355 3,329,362 9,818,529 25 4,083,258 00 - $15,627,695 Thus: Certainly, sir, we have before us a fine comment upon the wisdom of our rulers, and the sagacity of our minister of finance! In the midst of the general hurrah, the bank has quietly pursued the even tenor of her way, and has actually paid off nearly eleven millions of her liabilities, finding herself at this moment with more funds in her possession than when she sat out. [H. of R Since the 1st day of October, 1833, the Bank of the Making a total of $1,000,000 • 2,500,000 $3,500,000 The bank has imported this large amount of specie with a view to place her own solvency beyond all manner of doubt, and to enable her the better to sustain that crisis which must inevitably result from the measures of the Government. This importation has had the effect desired, and public confidence has increased towards that institu tion." Such, Mr. Speaker, is the general result of this war of persecution against the Bank of the United States. Calm, temperate, and just, her board of directors have But what becomes of the two million five hundred thouanticipated every blow aimed at the interests of the sand dollars over and above that imported by the bank? country, and have protected the institution over which What effect has it had upon the business of the country? they preside from the violence which has fallen with an To what degree has it restored, either generally or parron hand upon the people. tially, that confidence among the merchants and traders The following table fully develops the general condi-so essential to their welfare and that of the country at tion of the bank on the 1st day of June instant. It pre-large, and which has of late been so utterly annihilated? sents an argument in itself worth all that could be said or To what amount has it tended to increase the circulation written, and ought to convince the people of the benefits of values, or to afford facilities in the making of payments? which might be derived from an institution so regulated, None whatever, sir. The business of the country is at a and so solvent, under circumstances of general harmony stand; the whole year has been thrown away; confidence and prosperity, when it presents such results under cir- still holds aloof, and the means of employment are infinitecumstances of so widely different a character. ly diminished; nor do I believe, Mr. Speaker, that four On the 1st day of June, 1834, the bank times the amount would produce any effect whatever on owed to depositors, public and private, $9,599,880 66 the general concerns of the nation, until the proper remeOwed to holders of its notes, 16,612,527 06 dies are applied by Congress itself. Of this, sir, I have but little hope; and although there may be a redeeming 26,212,407 72 spirit in the country and her institutions sufficient to 73,180 98 carry her safely through the calamities ahead, yet, sir, I, for one, can never consent to prove the vigor of our con$26,285,588 70 stitution at the expense of so much individual distress. Before I conclude, I must be allowed to notice one more subject. Unclaimed dividends on its own stock, Total, This is every dollar which any man has a right to claim from the bank. Now, to pay them, the bank has- 1,662,076 Specie in its vaults, Notes of State banks, $1,707,286 Balances from State banks, Total, Among the many clamors raised against the bank, it has been attempted to arouse public indignation against $12,298,333 00 her for the republishing of valuable public documents and speeches of members of Congress. I cannot believe, sir, that, when this matter is temperately viewed, the people 3,329,362 00 will disapprove of it. What possible injury has it or can 1,995,290 00 it effect? Do these documents contain any thing preju 2,904,762 00 dicial to the interests of the people, or adverse to the in52,289,053 00 stitutions of our country, or to the soundest republican doctrine? No, sir; no one will dare to say they do. They 72,816,801 00 contain the best collection of facts, and the soundest po164, 110 00 litical views; and, without exception, they breathe the pu rest and most elevated principles of liberty. $72,980,911 00 Sir, we are now at the close of a long and most painful session of Congress. On the part of the friends of the Here, then, is a mass of property of more than seventy-administration, every argument has been used, and every two millions bound for the safe-keeping of the public effort employed, to sustain the administration in all its funds, and the performance of the duties of commissoiners policy, and especially the President in all his views and of loans and pension agents. Compare this security, Mr. Speaker, with that offered these deposite banks, and surely we may wonder how the wicked policy under which the country now groans an be permitted to continue. assumptions. These arguments have been distributed in large quantities, and public opinion has decidedly repprobated most of them. Still, sir, they continue to be disseminated among "the party," and every true liegeman is bound to receieve them as his rule of faith. Now, I must be allowed to notice one other matter. It is cer- sir, wherein consists the sin of the bank? She has spread tain that there have been large importations of specie into the antidote wherever the poison has reached; she has the country during the late winter and spring; and I have thrown light where it was sought to perpetuate darkness, beard it triumphantly announced on this floor as one of and the people have felt the influence of that light. the happy consequences of the President's measures. They have become acquainted with the great principles The gentlemen who used this language, if they knew of our constitution and of civil liberty, and have been no better, are grossly deceived. The whole amount sup-taught the danger likely to result from the unconstitutional posed to have reached our shores has been estimated at and alarming doctrines of "presidential protests." They about six millions; it has not probably been so much. This have acted accordingly, and the sin is visited upon the Specie comes either direct from England and France, or bank: with what justice, I feel confident I can rely upon more generally from Mexico to New Orleans, and thence the people to say. o New York and Philadelphia. I intended, Mr. Speaker, to have said much more on H. of R.] Presentation of Memorials. [JUNE 23, 1864. this subject. I desired to have laid before the country seen at a glance by those who understand its various and the views and principles which have governed the admin- ramified operations. The deposites and circulation of istration of the bank, as they are developed in the re- such an institution must necessarily be great in such a port of the 1st of April. I find, however, I cannot do it country, with such a population, and such extensive com better than it is already done by that report itself. I there-mercial resources. fore append it to my remarks, and ask for it a candid consideration. (See Appendix to speech.) In addition to this general outline, we beg leave to state that the banking capital employed in this district of With this, Mr. Speaker, I close. I believe, solemnly country is, by far, inadequate to its wants. We feel a and conscientiously believe, that in this great contest are confidence in stating that from two to five hundred thou involved every right dear to freemen, and every interest sand dollars more might be employed with profit to the connected with the happiness and welfare of the people. stockholders, and advantage to the country at large.. I have opposed the encroachments of executive power, We have, it is true, one bank, and the branch of another because in them I see the ruin of my country, and the more west, in operation here; but their capital is not corruption of all sound, moral, and political sentiment. I great, and they have always divided nine per cent., and have been startled at the influence of executive patronage, more than once have divided fifteen per centum per and have seen the most unquestionable principle of na-annum. tional policy abandoned at its bidding. I warn my countrymen to look to it in time. As we suppose that your honorable board will not enter into the measure of establishing a branch here, or at I have sustained the Bank of the United States as a any other place, without making particular inquiries into great conservative principle of national policy; as such, every fact and circumstance which may bear upon the confined by patriotic agents within the sphere of her le- subject, we do not at present enter into greater detail. gitimate duties, she has no influence; she can command We cannot forbear, however, to press upon your atten none; she is lost, simply because she neither can nor will tion the following points: That this place, being the local command any. What, however, cannot the Executive centre of the State, and from its flourishing condition command and effect? Need I warn my countrymen? now, containing about six thousand inhabitants, and from Let them carefully weigh the events of the last two years. its rapid progress in population and wealth, there is Let them look to the conduct of the majority of this every reason to believe it will be fixed upon, ere long, House, in reference to the votes on the sufficiency of the as the seat of the State Government; that, from its situa Secretary of the Treasury's reasons. Let them ask them- tion and capital, it cannot but continue to draw within its selves why this House has constantly refused to look into focus the mercantile business of a great surrounding the affairs of the Post Office Department; and then let country; that, from these and other circumstances, the them say to themselves, "Shall we for ever suffer our- circulation of the bills of the United States bank must be selves to be hoodwinked by this cry about the bank, the monster, while every principle dear to us is successively destroyed, and all the institutions of the country given up to the spoiler?" Sir, they will no longer be deceived. I rely upon their integrity, their patriotism, and their love of order. The country is in danger, the constitution is assailed, the law is trampled under foot, and they will fly to the rescue. APPENDIX TO MR. WATMOUGH'S SPEECH. of the United States: very extensive in every quarter, except the East, from this centre; that a branch here may be particularly subservient to the transactions of the General Government on an extensive frontier, and in offering a safe place of deposite for its funds, whether to be employed or collect ed in this section of the United States. We hope and trust that this slight view will draw the attention of your honorable board to this place, in select ing a proper position in this State for another branch bank; and we think we may safely refer you for informa tion on this subject to all the enlightened and disisterest ed bankers and merchants in the State of New York. Hoping to receive, in convenient time, a favorable an swer to this application, we would subscribe ourselves, most respectfully, your obedient servants, Edward Vernon, James Platt. To the Directors of the Bank of the United States: the memorial of the subscribers, in behalf of themselves and their fellow-citizens in Albany, respectfully show. eth: GENTLEMEN: The undersigned, inhabitants of the town William Williams, James Donell, S. Beardsley, J. S. of Utica, in the State of New York, would respectfully Porter, Moses Bogg, Kellogg Hurlburt, Alex. Seymour, solicit your attention while they lay before your board William Clarke, Robert Shearman, Charles E. Hardy, some of the grounds which present themselves in favor of B., B. Lansing, Joseph Kirkland, N. Williams, John C. locating a branch of the United States Bank in this place. Devereux, G. Bacon, Samuel Stocking, Ab. Varick, R. In the first place we would mention, what cannot have R. Lansing, A. Cooper, T. H. Hubbard, John Williams, escaped your observation, that this town has the advantage of being situated in the centre of the State, in the midst of a fertile country, and surrounded by a great, a growing, and a rich population; and although this people, in the main, are occupied in agriculture, yet there are among them a great many who employ their capital wholly in mercantile and manufacturing operations. That, since the completion of the northern and west The towns and villages in this great western district, and ern canals of this State, such facilities are given to trans especially on the line of the canal, are thriving and en-portation that the quantities of country produce brought terprising in a very great degree; and we think we may to this market from the interior of the State are increas say, without exaggeration, that Utica by far exceeds ed to an immense amount, and when to this is added the them all in the enterprise of their merchants and me- produce which will be brought to this market from the chanics, and in the amount of capital employed in busi- fertile regions of the northwestern parts of Pennsylvanis, the State of Ohio, and the Territory of Michigan, some Nor can it be overlooked that this country is surround- idea may be formed of the amount of business which ed by water communications, which extend its commerce might be done in this place, were a sufficient moneyed and moneyed circulation into the Canadian British domin- capital located here to give countenance and support to ions, the Michigan Territory, and several of the States commercial enterprise. The capital of the banks located bordering upon the great western waters-advantages to a here, under State incorporations, is entirely insufficient banking institution in extensive credit, which must be to afford those facilities to commercial enterprise which ness. JUNE 23, 1834.] Presentation of Memorials. [H. of R. the business of the place would warrant, and which the SENATE CHAMBER, January 29, 1811. most cautious prudence would justify. The limited capi- SIR: The committee of the Senate to whom has been tal of our banks forbids the extension of our trade. Mer-referred the memorial of the president and directors of chants of moderate fortune are discouraged from taking the Bank of the United States, praying for a renewal of up their abode amongst us, from a knowledge that the their charter, have directed me to request you to state to banking capital of the place is not adequate to the de- the committee, whether, in your opinion, the renewal of mands which are made upon it, for the prosecuting of a the said charter will greatly facilitate the collection of the sufficiently extensive business to render it profitable; and revenue, and promote the public welfare. In complying instances are not wanting of active, intelligent, aud enter- with this request, it is expected that you will furnish the prising merchants removing from this place to the city of committee with the facts and reasoning upon which your New York, to participate in the benefits of the increased opinion has been formed, together with such information banking capital there, although their business principally upon this subject as may be in your possession. I am, sir, respectfully, Your most obedient and very humble servant, has been continued with the interior of this State. The western world is pouring its treasure into the market at Albany; but its citizens are doomed, with tantalized feelings, to behold a rich and profitable trade float past them The Hon. ALBERT GALLATIN. to the city of New York, solely for the want of a sufficient banking capital located amongst them. Could the proTREASURY DEPARTMENT, January 30, 1811. duce brought to this place be purchased here, such porSIR: Having already, in a report to the Senate of the tion of it as is not wanted for home consumption might 2d of March, 1809, expressed my opinion in favor of a be exported directly from here to a foreign market, (as renewal of the charter of the Bank of the United States, far as the navigation of the Hudson would permit,) and an opinion which reinains unchanged, I can only add a return cargoes, calculated for the inerior of the country, few explanatory remarks in answer to the inquiries of the might be imported, without being subjected to the ex- committee, as stated in your letter of yesterday. pense of transhipment at New York, or the profits of the The banking system is now firmly established, and, in importing merchant there. These considerations have its ramifications, extends to every part of the United induced the citizens of Albany once more to ask for the States. Under that system, the assistance of banks ap. establishment of a branch or office of discount and de- pears to me necessary for the punctual collection of the posite of the Bank of the United States in this city. revenue, and for the safe-keeping and transmission of It is hoped this application will be favorably received, public moneys. That the punctuality of payments is as the same causes which render it desirable to the citizens principally due to banks, is a fact generally acknowledg of Albany to have a branch of the United States Bank es- ed. It is, to a certain degree, enforced by the refusal of tablished there conclusively show that it would be a source credit at the custom-house, so long as a former revenue of profit to the present institution. Indeed, it is believed bond, actually due, remains unpaid. But I think, neverthat a branch here would be more profitable, in reference theless, that, in order to ensure that precision in the col to the extent of business done, than several of the lection, on which depends a corresponding discharge of branches located in seaport towns. The local situation of the public engagements, it would, if no use was made of Albany renders it an entrepot between the Eastern banks, be found necessary to abolish, altogether, the States and the Western countries, between the South and credit now given on the payment of duties-a measure the North; and, consequently, a very extensive currency which would affect the commercial capital, and fall heavily would be given to the bills issued from a branch here; and on the consumers. That the public moneys are safer by the nature of the trade which would be prosecuted here being weekly deposited in banks, instead of accumulating would, in a great measure, render the bills of a branch, in the hands of collectors, is self-evident. And their established at this place, the circulating medium of the transmission, whenever this may be wanted, for the purextensive regions whose produce would be brought to this pose of making payments in other places than those of market. collection, cannot with any convenience be effected on a large scale, in an extensive country, except through the medium of banks or of persons acting as bankers. The question, therefore, is, whether a bank, incorporated by the United States, or a number of banks, incorporated by the several States, be most convenient for those purposes. State banks may be used, and must, in case of a non Inasmuch, therefore, as the establishment of a branch different arrangement. Nor will the United States have |