H. OF R.] Bank of the United States. [MARCH 2, 1832. connected with deposites as may be required, but not for dispute. 3d. Such as is conveyed to it in satisfaction of the purpose of discount. Now, if by the first power they debts. It is unfortunate that the charter did not specify establish a branch, it is obliged, by the terms of the char- what disposition the bank should make of real property ter, to be an office of discount and deposite; and the mo- thus acquired. But it is perfectly obvious, if they intended ment they cease to discount, their authority to receive to confer the right of an unlimited use of real estate after deposites ceases, for they are by the law inseparable. It acquiring it in the course of its dealings, and in the disis the boast of the bank that its end and object is to equal-charge of its debts, it was wholly idle to have inserted the ize the currency and to accommodate the whole commu- immediate foregoing clauses in the section, as they seem nity, and that it is not to make one part of the country to be by minute restrictions. supply the wants of another. If, then, it does not effect There is, however, another provision in this charter, in this, it surely does not answer the purpose of its institu- relation to personal property, which will entirely relieve tion. Now, when an office of discount and deposite is our doubts, especially when we bear in mind that the established, its purpose is as well defined as the mother charter would not establish two different rules as to the bank itself, and to all intents must perform that purpose manner of holding real and personal property. The within its sphere, as the parent bank is required to per-clause in relation to their holding personal property is in form her duty within her limits. This purpose is to dis- the following words, viz. "the said corporation shall not, count, and to discount is to furnish those very facilities directly or indirectly, deal or trade in any thing except which, in their money-lending capacity, they profess to bills of exchange, gold or silver bullion, or in the sale of possess, and which every body knows is the principal end goods really and truly pledged for money lent and not reof their institution, and, indeed, without which they would deemed in due time, or goods which shall be the proceeds not receive so vast a privilege. To stop discounts in the of its lands;" then the twelfth section declares "that if the branches, and continue the deposites, is a perversion of said corporation, or any person or persons, for or to the the law, and, to that extent, is not an honest user of their use of the same, shall deal or trade in buying or selling charter. Observe, Mr. Speaker, what would be the con- goods, wares, merchandise, or commodities whatsoever, sequence of such a course. Offices of deposite, only, contrary to the provisions of this act, all and every person would be fixed down by the side of the State banks, and, or persons, so offending, shall be punished," &c. Now, collecting the revenues of the country in State bank bills, taking these two clauses together, the intention is very they would have nothing to do but to call on the local in- manifest, they may take goods in pledge of payment stitutions, and drain off every dollar of their specie to the of debts, and dispose of them by a single and wholesale mother bank. Indeed, sir, in the seven years' famine of contract, or in parcels, as at auction, but they shall not the South and West, occasioned by the hoarding of the build upon such acquired goods a regular and continued branches which I have mentioned, they served only as commercial business. So with regard to real estate; they leeches upon the State banks, and as fast as they would may dispose of it by sale to reimburse them in their loans, fill themselves they dropped off to their parent monster but they shall not possess whole cities and counties for the for the purpose of emptying their distended contents into purpose of renting. Mr. Speaker, permit me to indulge her voracious stomach, whence it was disgorged upon Phi- in one reflection at this place, the application of which ladelphia and other Northern cities, to bloat their already will presently be made, and in a case which ought to overgrown wealth at the expense of the South, and for alarm every body, but more especially the Western peoanother very important purpose which I shall hereafter ple. We have always considered the condition of the show. This is not equalizing the currency, nor is it a just European people, and especially of Great Britain, as most and impartial distribution of those facilities it was intended deplorable, in consequence of their being tenants to great to confer. Nay, it was robbery of one section of country landlords. The scanty food they draw from the earth is for the benefit of another. at an enormous expense of rent; and if this country, inThe fifth charge is building houses to rent. The gen- stead of its present happy distribution of fee simple estates tleman said this idea was new to him, and that he would among the people, was in the hands of a few grandees, to be glad if I would show him from Coke or Blackstone be rented out at their will and pleasure, and for whatever how it can be lawful to purchase land, and not to build they might choose to exact, we would consider nothing so houses upon it, and lease it. I will show the gentleman detestable and ruinous to the prosperity of the country. from the charter, better authority than Coke and Black- Now, Mr. Speaker, this is not only the obvious tendency stone on this subject. Says the charter, "the land, tene- of the bank in point of fact, but it is in principle one of ments, and hereditaments, which it shall be lawful for the the very organic elements of its constitution. Money is said corporation to hold, shall be only such as shall be property, and in this hemisphere commands all kinds of requisite for its immediate accommodation in relation to the property, both real and personal; and if you would not convenient transactions of its business, and such as shall give a single corporation, or, more properly speaking, a have been bona fide mortgaged to it by way of security, few noble lords, the entire rental of lands of the United or conveyed to it in satisfaction of debts previously con- States, much less should you give them the entire control tracted in the course of its dealings, or purchased at sales of all the money in the country, which will finally draw to upon judgments which shall have been obtained for such itself all the lands of the country. In Great Britain, froin debts." Every one must admit that the above clause had its immense population, and the great disproportion besome motive in view--was intended as a restriction, it tween its necessitous people and the quantity of land, the seems, to guard against some dangerous consequence that latter is more valuable than money, because it yields a an unlimited possession of real estate in such a vast mo- higher profit; consequently those few who hold the landneyed institution might produce. There are two mean- ed interest of that country, hold the entire destinies of that ings to be placed alinost upon every thing--a right and a unfortunate people in their possession. They are, for all wrong one. Now, let us honestly inquire what was intended the purposes of moneyed contributions, the slaves of the by the above provision. I think I discover but three things. landlord, the true ar stocracy of Great Britain. Is it, Mr. 1st. They may acquire real estate for the immediate ac- Speaker, in the power of any one to draw a rational discommodation of the bank; and, as if this was not suff-tinction between a moneyed and a landed aristocracy? Is ciently restrictive, it is added, such only as shall be requi- there any difference between a needy debtor and a desite and convenient for the transaction of its business. On pendant tenant? Are they not both equally cramped, this point there can be no difficulty. 2d. Such as shall alike enslaved, similarly spirit-broken, and under the foot be bona fide mortgaged by way of security. Here, too, of a "hard master?" If the bank were to request, in there is no difficulty. But now commences the field of their present application for a renewal of their charter, to be permitted to buy up all the landed property in the and being, I suppose, a long time since he read the charUnion, for the purpose of erecting the British system of ter, it must have escaped his recollection how the hard landlord and tenant, every body would perceive the re- money foundation of that enormous structure was laid. volting character of the demand, and scout it accordingly; The third section of the charter requires "seven millions and yet they are asking for ten times worse, and are likely of dollars thereof in gold or silver coin of the United to obtain it! They are asking to make every man in States, or in gold coin of Spain, at a certain rate, &c., and America their debtor, instead of tenant, by which all his twenty-one millions of dollars in like gold or silver coin, or property is at their perfect control! Now, sir, for the in the funded debt of the United States.” This made twentyapplication of these reflections to the case I promised. eight millions, which was that portion of the stock intendIn the town of Cincinnati, I discover, by the monthly ed for individual subscribers. The Government's seven statements of the bank itself, that it owns, besides its millions was to be paid in gold or silver coin, or in stock banking houses, valued at 23,500 dollars, nearly one mil- of the United States, bearing interest at the rate of lion and a quarter of real estate. This, let me premise, five per cent. per annum. The funded debt was consiis greatly under its true value, for it has been received by dered equal to gold and silver, bottomed, as it was, upon the bank in payment of its debts, at two-thirds of its ap- the credit of the Government; seven millions of the latter praised value, by the law of that State, and has since was, however, indispensable, and, of course, a correspondrisen in value, as I am told, something like fifty per cent.; ing amount of the former. The ninth section declared, so that, at this time, it is confidently believed that they "that as soon as the sum of eight million four hundred own three millions of real estate in Ohio. But, sir, taking thousand dollars in gold and silver coin, and in the public the estimate as contained in their report, at twelve hun- debt, shall have been actually received on account of subdred thousand dollars, let us make a few calculations, for scriptions to the capital of the said bank, (exclusive of the the, consideration of reflecting men. This sum, divided subscription of the United States,") then the bank was by one thousand, which would be a fair average of bank authorized to go into operation. Now, it is very clear debts, would make twelve hundred debtors in that town, that this amount of eight million four hundred thousand who have been obliged to part with their homes, leaving dollars, exclusive of the Government's subscription, was out of view those thousands who have not yet arrived at the least amount of coin upon which the bank should that lamentable condition, but who are perhaps hurrying commence, and, therefore, constituted the true proportion to that catastrophe as fast as the lion claws of avarice can of coin in relation to its future issues, which, being limitdraw them. What a reflection! But this is not all-ed to its stock of thirty-five millions, was nearly one-fourth this same sum of twelve hundred thousand dollars would of the capital. If the bank could not be permitted to purchase twelve hundred tenements, severally worth a start without this amount, and that, too, in reference thousand dollars, and, renting only for one hundred dol- to the individual subscriptions, which was twenty-eight lars each, would produce an annual rental, in this city, of millions, surely it should never come below that amount two hundred thousand dollars, equal to ten per cent. in- after it gets into operation, and after seven millions more terest on their capital. No wonder that they are anxious of the Government's stock is added. If there was any to change their money-lending stock, at six per cent., good reason for such a provision a first, it must continue. into a leasing capital producing at least ten per cent. and There must have been some meaning in it, I apprehend, perhaps as high as thirty. I am aware that my calcula- or it would not be found in the charter. Every body will tions do not correspond with the actual fact, that what is perceive at once that a bank without some specie would true as to the particular divisor assumed, will be equally be soon without credit, indeed, would be broke, for spetrue as to any other; for, whether higher or lower, the cie is the only true means of payment of debts, and the rent of twelve hundred thousand dollars worth of real whole and sole credit of banks. It is the measure of value property will be the same in twelve or twelve hundred to every thing, though it has very many substitutes, some tenements, and either is too much for any one institution of which are extremely precarious. Then what amount to hold in the United States, especially when we remember of specie shall always remain in bank, is a question of the fate of Cincinnati may be that of every town in America. some difficulty, and depends very much upon its business, If, then, they are not restrained within the true intent its stock, its credit, and its management. If it were said and meaning of their charter, what is to hinder them the Bank of the United States had no specie, it would from becoming the great landlords of this country? and startle every man in the nation who had any demands upon what will prevent them from changing their thirty-five it. If it were said it had but one hundred dollars, that millions of six per cent. stocks into three times that amount, under a false valuation, of real property yielding an income of fifteen per cent? In my humble opinion, nothing.* The sixth charge is in the capital stock not having due proportions of coin. The gentleman says, “I am wholly at a loss to understand this charge." Taking him, as I did, upon surprise, would equally alarm its creditors! What amount, then, shall it have, to quiet all apprehension? I can give no better answer than to say, the charter required, at its beginning, it should have $8,400,000; and if at that time it was considered the proportion upon which public confidence might rely, there can be no good reason why it should not remain so. Now, sir, what is the fact as to the quantity of specie in the bank? By the monthly statements, it had on the 1st of January but $7,038,823, and Since the above speech was delivered, a gentleman of Ohio, of un- but $2,200 of funded debt; being, when added together, doubted respectability, writes from that State concerning the very many abuses and oppressions of the branch established at Cincinnati, $1,358,177 less than what the bank commenced with, and, among other things, states, "that you may form some idea of though the Government's stock has since been paid in. their speculations, I will mention the case of my late friend, Mr. He was indebted to them for himself and others to the amount of 50 Now, sir, I maintain that this is not, under any sound inor 60,000 dollars, and possessed a large estate in the city. But by our terpretation of the charter, a due proportion of coin to laws, real estate could not be sold unless it brought two-thirds of its the capital stock. I go further, and say that this result appraised value, to be ascertamed by a jury selected by the marshal. involves the principle, if not the actual fact, that the bank A judgment was obtained against him, which bound all his property. The bank agent could not get a jury to value so low as to enable him is broke. She has been compelled to use that portion of to take the whole; he would therefore take none. Situated thus, his her capital which was the prescribed security to the pubcredit destroyed, his whole estate locked up, which was not produc-lic of the bank's claims to confidence. It was the pledge tive, thrown out of business, and a large family to support, after years of repeated efforts, he was finally compelled to make a compromise, of the bank's credit, and the starting point of its operaby which he gave up a part of his estate, and for which they allowed tions, below which, if it should come, there was no safety 50,000 dollars. This property, or the greater part of it, they have since sold; and, estimating the residue of it at the same rates, it will as to its promises; for it must be obvious to all, if once produce a clear profit of more than 50,000, allowed to range below this limit, it may just as well con tinue business upon one dollar as one hundred, and upon Bills issued and now in circulation, [MARCH 2, 1832. To which add public and private deposites, 24,630,752 17,997,689 1,512,665 $44,141,106 I Though the gentleman has said "the bank is not only able to pay its debts, but is a great deal too able, to suit the views and wishes of its opponents," yet I dispute the The bank cannot make specie in the country, the defact, and will affirm, in opposition to his declaration, that upon true mercantile or banking principles, and that ception is in promising to pay specie. The best finanpunctuality which those respective relations require, it is ciers calculate that there is but about fourteen millions of not able to meet its engagements. He rests its capacity specie circulating in the country, out of the banks; and upon its capital and debts to discharge the demands that if the Bank of the United States could lap up every dol may be made against it. Now, sir, I say that this is not a lar of these, could insert its proboscis into those leather safe reliance; and I say more, that if the banks of New purses that have for many years concealed from the light York and Pennsylvania were disposed to unite and make of day dollars that have "grown dim" with age, it could a run upon the mother bank at Philadelphia, they could not, according to the usages of merchants, meet its engage. compel her to close her doors to-morrow, notwithstanding ments with that promptness which is the arterial circulaThis is what I meant the other day she might be able hereafter to pay thirty shillings in the tion of commerce. pound. He has said it can pay off all its debts in sixty by saying the bank was broke. I did not intend to use days. What! a bank asking sixty days to pay its debts? the term in its popular, but in its commercial sense. I Dreadful! Will banks dare to require of her poor debtors know too well its immense resources, to believe it is unto pay down the last farthing in the three days of grace, able to pay; the Government deposite will uphold her. It and then turn round and claim sixty days for themselves? has been too long wringing from the community the fat If they are are such clamorous sticklers for punctuality of the land, to be what would be termed insolvent. among their debtors that they protest them, stop their only wish to warn the nation that her late trading, as well credit in bank, nay, strip them of all their property, for the purpose of making friends, as for money speculaand fling their bodies into a dungeon, if they overgo those tions, especially in specie, as will hereafter be shown, said days of grace, can it be possible that they claim an has carried her over the boundary of safe transactions, exemption from a like punctuality? If, by the law mer- and she relies upon getting back by the indulgence of the chant, a strict compliance is required with the rule I have Government, and that most desired of all objects, a new And I make this remark, which I hope will be mentioned, and a failure to regard it involves the conse-charter. quence of bankruptcy, though the defaulter may be worth well remembered, that when this is accomplished, and she twice as much as the debt, how can the bank escape from makes the rebounding effort to gain her former position, this fundamental principle in all trading establishments? it will be a spring that will crush its thousands to death. Many a gilded Would the bank be content with such a reply as this from Many a nabob has broken full handed. one of her debtors, on the day his note became due? "Sir, sign hangs before a rich warehouse, all in confusion. I have not the cash to pay my note, but look upon my list And, drawing a figure from that best of books, the whited of property; see the notes due from other persons to me, sepulchre is filled with dead man's bones. The seventh charge is, foreigners voting for directors, to be paid in sixty days; the whole amount ten times more than I owe you; will you wait sixty days, when it will be through their trustees. entirely in my power to pay you?" Think you, Mr. Speaker, the bank would reply, "To be sure, my dear friend, we will wait; we are sorry you have troubled your self about it; give yourself no uneasiness; just pay us when it suits your convenience." If there is any such bank in this world, I will make at least one pilgrimage to it. Then, sir, if the bank must pay, like all other persons, when demanded, and in the three days of grace, let us see how far she is able to meet her present debts. Let it be borne in mind that her seven millions of specie does not lie in the parent bank, but is scattered all over the Union, in her several branches. The whole of her specie in the principal, and twenty- Funded debt, The gentleman states that he "knows nothing of this But the fact can easily be ascertained from the charge. bank itself." This, however, may not be the case. Books may show one thing, but oral testimony another; and the very object of an inquiry is to procure evidence of not only that which appears, but that which does not appear; and the last, always haunting secret places, can only be reached and searched through the powerful agency of an oath. The gentleman adds: "It may be that stock has been owned by a foreigner, and yet held in the name of "This," he consome citizen of the United States." tinues, is no abuse for which the bank is answerable, unless the bank has been conusant of the fact, and had To this, I most District of the power of correcting the abuse." $7,038,823 cheerfully acquiesce; but, for the best and most obvious 2,200 reason, that of not having such a tremendous institution, the moneyed lever of the nation, under the direction of foreigners, who, in time of war, might paralyze the whole 14,077,646 machinery of Government, it is wisely provided, in two 2,171,676 places (as if one was not enough) in the charter, that no 1,993,744 foreign stockholder shall vote in the choice of directors. And so anxious is the Government to prevent the exer2,114,365 cise of this dangerous influence, that, by an act of Congress, passed in 1819, some restrictions are imposed $27,398,454 upon the managers of elections, as well as the voters, strengthened by two solemn oaths, intended to prevent Now, sir, this is all the immediate available cash fund in a violation of these clauses of the charter. If, then, there the power of the bank to wield upon a sudden emer- are any secret trusts, as the gentleman insinuated, it apgency; and it is seen that one impossible item is allowed, pears to me, unless the persons concerned are of the that is, the whole of the circulating gold and silver most depraved order, they could be brought to light by When this and the virtue of the strong obligations just referred to. It is very currency of the United States. scattered condition of her own specie is considered, how evident the books will not show these secret trusts, but is it possible for her to meet the following debts, if it is not so clear the officers cannot; it is a most dangerous mischief, and well worthy of investigation. immediately pressed, to wit: To which add all the tangible silver and gold now circulating out of the banks in the United States, which is estimated at Add bills due her from other banks, MARCH 2, 1832.] Bank of the United States. [H. of R. This finishes the consideration of those grounds affect- place, they do it for the citizens in all sums of five doling the integrity of the charter, and which, if established, lars. Why no more? In the third place, in very many will amount even to a forfeiture of its privileges, much branches they do it without any premium, for any amount more its claims to renewal. I shall now proceed to the and to any person. Why this difference? In the fourth abuses of the charter, amounting to such breaches of place, they charge more at some branches than at others, good faith as ought to destroy all future or further con- and they require a greater premium upon some branch fidence in its operations. bills than others, and upon none does it exceed half per Before, however, I proceed to this branch of the sub-cent., the usual price being one-quarter of one per cent. ject, I hope I may be indulged with a few more reflections, connected with the facts I am about to offer. Now, can any believe that if they can receive their bills for the Government without premium, from the citizens, The several States are obliged to have money for their up to five dollars, can dispense with it at some of the wants, as well as the General Government. Institutions branches, make a difference in the bills, and finally reof Government, intended to protect such important inte- ceive only one-quarter to one-half per cent. upon what rests as the rights of persons, and the rights of property, they actually do in this traffick, they might not dispense must be supported by the same means as those that be- with it altogether? Can it be possible that this petty long to the Federal or any other Government. And it is shaving is indispensable to "sustain the soundness of the no bold assertion in me to say that the United States' currency," and the attempt to do which, in 1819, "led Bank cannot supply all the wants of the States. The to all the overtrading, and embarrassment, and ruin which people of the States must have money for their taxes as ensued?" If it is, the time has arrived, as I humbly conwell as for other purposes, and to local institutions they ceive, to sweep it from its connexion with this great Goare compelled to look for those facilities which it is said vernment, and to rely upon hard money currency, the the United States' Bank furnishes the General Govern- only one known to the constitution. ment. Is it desirable to prostrate these great convenien- In answer to the charge of making a difference beces? Will the representatives here, of their different tween the Government and the citizens, the gentleman States, so far forget their own establishments as to place says it is exactly what the charter stipulates to do. It is them in the power of an institution which its own presi-true there is a provision in favor of the Government to dent has declared can crush them whenever it chooses? receive its money and pay it out wherever wanted, but If the corporation of the United States' Bank had an in- there is no stipulation that the citizens shall not have this vincible army in Philadelphia, which it could send out by privilege. It would have been very unkind in the Godetachments to plunder and rifle the States of their pro- vernment, after contracting for an advantage for itself, to perty, conquer them whenever it suited either their in- exclude its citizens from the same, when such exclusion terest or ambition, and make them tributary to their could be of no possible benefit to it. It is not the fact, and avarice or power, every one would shudder at such a the privilege to the Government proves, as I said before, state of things. Now, sir, money is invincible power, it could have been extended to the citizens, and the dif and is to the moral what an army is to the physical world. ference is a capricious exercise of power, unwarranted The bank has nothing to do but to send out a detachment by any principle of common honesty. of ten millions of dollars into a State, demolish the State. So far as relates to the charge of partiality towards banks, desolate their fair fields of profit, make prisoners of members of Congress, it is not intended to convey any cenwar of their customers, obtain the allegiance of their sure or misconduct whatever against them, nor do I object debtors, establish a fort, and then march on to the next to any arrangements about their pay. But I understand State, conquering and to conquer. Who does not per- that it can be made to appear that members of Congress ceive this? And is there none who would not be willing can be accommodated, both in bills of exchange and in to divest such an enemy of this despotic dominion? loans, without the usual premiums and endorsers required from other citizens. If so, and into this fact I want to inquire, it is partial, and, therefore, wrong. If it is not so, there is no harm in the inquiry. The bank does not cash its notes, or receive in deposite at each branch, and at the parent bank, the notes of each other. This idea will be better understood by stating that the mother bank prepares the bills and sends them With regard to the accumulation of proxies, it is assertout to her respective branches. These branches then filled that bank officers have almost the entire election of them up and issue them, and, as soon as they are afloat, directors. If true, what mischief can be greater? What the parent bank knows them no more, though circulating control will be exercised by men who hold their offices in the country as her offspring and bound to support by the voice of the very men whose conduct it is their them, and can never be brought to recollect them again duty to watch with unceasing vigilance? till her memory is refreshed with something like a one The gentleman is much surprised at the charge of a per cent. remembrancer. And so with regard to these strong suspicion of a secret understanding between the branches; though sisters from the same parent, they know bank and brokers to job in stocks, contrary to the charnothing of each other's progeny, and will have nothing to ter, and wishes me to give up the witness. Grant the do with them, unless paid to entertain them. As I stated hearing first, and then we will see how far the fact can be before, the parent bank demands a premium for receiving established. All criminations are mostly made upon susthe notes of her branches, the branches of the parent picion, but it is very unusual for the accused to say the bank, and of each other. This, the gentleman says, is charge is false, but I do not wish to be tried. obliged to be done, and the attempt to do what the bank tleman says we are the guardians of the bank, and should is here assailed for not doing produced all its embarrass- protect it from a charge which is calculated to destroy its ments in 1819. If it cannot do it, the business ought to credit. It is very true, sir, we are the guardians of the be confined entirely to the mother bank, and the branches bank; but it is equally true we are the guardians of a withdrawn from the States, for, as at present organized, much higher interest, that of this vast community; and they are complete brokerage, or rather shaving shops, the best protection we can afford them or the bank is to selling and buying their own paper, and making a profit give the latter an opportunity to wipe off all suspicion as both ways. But there is good reason to believe the fact to its conduct, and entitle itself to the greater confidence is untrue. In the first place, they do it for the Govern- of the former. Does it want any other protection than ment; they receive at any branch the bills of the mother this? As to the credit of the bank resembling female bank or any of the other branches, without any discount, chastity, it is a most unhappy figure. Depend upon it, whenever demanded by the Treasury Department, and the bank is no virgin, and is greatly more like the why may they not on account of citizens' In the second" whore of Babylon," than the Diana of Ephesus. VOL. VIII.-125 The gen H. OF R.] Bank of the United States. [MARCH 2, 1832. The objection against the bank on account of subsidies times as much specie in proportion to its capital, as the and loans to printers and others, was so ably explained by my colleague, [Mr. FOSTER,] that I shall not attempt any thing further on this point. Bank of the United States now has, when it refused payment; and such was its influence over the Government, not greater, however, than is at present exerted by this bank, that it obtained relief by an act to suspend specie payments. When will nations benefit by experience? The gentleman treats the charge of the bank's making a distinction in selling bills of exchange very unceremoniously, by barely saying it is unfounded." Now this I come now to the charge which relates to the gold and charge is met exactly as all the other charges ought to silver that has been sent from the South and West, through have been. It is the general issue of not guilty, and the the agency of branch orders; and, before I answer the gennext thing is to proceed to trial. But to say not guilty, tleman's argument on this point, I will present some facts and then to walk right off from the investigation, is falsi- from a document lying before me, as to the amount and fying the plea, and leaves a strong conclusion of guilt. the time of its withdrawal. The branch orders commencIf the gentleman is satisfied with this mode of answering ed issuing on the 1st of July, 1827, and during the year accusations, I am sure I ought to be. But the truth is, ending on the 1st of July, 1828, $737,887 was carried to and can be established, that some of the customers of the the mother bank; the next year, $1,615,457; the next year, bank have obtained favors and loans at a very different $2,177,136; the next year, $2,461,000; and for the last per cent. from that of others. Her limit, by law, is six six months, ending 1st of February last, $1,326,303; makper cent.: she has been known to lend at four, at a long ing, in the whole, the enormous sum of 8,317,790 dollars, credit, and has divided seven to the stockholders. De- in the short space of four years and six months. What pend upon it, some one has suffered in such a curious country can bear this? As long, Mr. Speaker, as the combination of figures! branches would issue their own bills, which would circu The charge of inducing local banks to clamor for a re- late around the bank, and would pay them off with specie newal of the charter, is passed over with the same kind when demanded, the local banks, to use a homely plirase, of indifference. I will have the candor to own that this had a "living chance." To illustrate this matter, suppose rests in conjecture; but when I see not more than one a branch and a local bank side by side, and with equal local bank in ten asking for the continuance of a monster, capital: if they transacted any thing like an equal busiwhose keeper has said it could crush them whenever it ness, they would receive each other's bills in such an equal pleases, and when I see the other nine-tenths dreading degree, that upon making their weekly settlements there its power and desiring its subjection, I feel a great curi- would scarcely be any disturbance of their hard money osity to learn the cause; and, perhaps, when an inquiry boxes. But all at once the branch, having a parent of is made into the debts due by some, and the stock owned inexhaustible wealth and unlimited credit, a thousand by others of these petitioners, the mystery will all be ex-miles off, takes it into her head not to issue any more bills plained. of its own payable at home, but to draw checks or drafts Though the gentleman says that an inquiry into the ac- upon this mammoth mother, in such small amounts as tual management of the bank, to see whether safely and would scarcely ever reach her, and, of course, under this prudently conducted, contains no charge, yet he will ad-arrangement, having no further use for her specie, sends mit it has some reason; and when I ask him if he would it all off to this same mother bank. What is the consegive a new lease for twenty years to his tenant, without quence of this artful device? The local bank continues inquiring into the manner he had treated his lands under its business upon the faith of its specie, against the branch the old one, will he not perceive that I am asking him to bank, having no specie, and indeed wanting none, and do for his country what common prudence dictates he who has transferred it beyond the reach of the local bank; should do for himself? What merchant does not occa- it follows, as an inevitable consequence, that, at the end of sionally take an account of stock, that wants to know every week, the branch calls upon the local bank to rehow his affairs stand. And in so great a matter as that of deem its bills taken in payment of their own and the Gorechartering the bank, is it possible that we should evince vernment debts, and by this process gradually drains the less vigilance and caution than is manifested in the most local bank of every dollar it receives. By way, sir, of ordinary concerns of life? My wish is to know the true showing you the effect of this a thieving artifice, just let situation of the bank; to let the community know it; me give you the statement of the Fayetteville branch as to ascertain her debts and credits, and how much she contained in the monthly statements for December last, has lately increased the former, and why. If reports be premising that it is a fair sample of all the Southern and true, her issues have been a million a month for the last Western branches: nine months, and it is very important to know whether she has the ability to sustain such liberality, especially if an act of justice to the Southern States, in the reduction of the revenue, should compel a withdrawal or diminution of the public deposites.. Specie on hand, Notes issued, nearly half a million of which are Deposites on account of the Treasurer of the Deposites on account of individuals, $18,943 1,141,030 26,098 21,196 40,482 With regard to the allegation that the bank has made excessive issues on the faith of public and other deposites, the gentleman says, if it is obnoxious to censure in this respect, there is no bank in the whole Union that can escape One million and a quarter of paper to be paid with about condemnation. I would appeal to the good reason of nineteen thousand specie dollars! Wonderful! Not as every one, if the conduct of one person should be justifi- much hard money as perhaps hundreds of sugar planters ed by that of another; and if, as has been the fact, the might draw from recesses which have not been blessed necessity of this very bank has been claimed upon the with the light for the last ten years. Now, Mr. Speaker, ground of excessive issues of the local banks, it is right on let me present you with another picture, to show you where her part to commit the same identical sin. With but seven the specie has gone. And I shall take the statement for millions of specie, and that divided into so many parts, the month of July as being a fair average of the amount of and scattered all over the Union, where it is obliged to specie held by the banks hereafter mentioned, in each remain to answer the demands which may at short periods month of the whole year, and because, since that month, be made upon it, a sudden withdrawal of seventeen mil- vast quantities of specie have been exported by the bank lions of deposites would as certainly occasion the bank to to England for a purpose which shall be presently shown, stop payment, as that one dollar cannot pay a debt of two. and vast issues of bills have been made also since that time It is a well known fact that the Bank of England had six to quiet fast friends and to make new ones. |