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BYJOHf A. BACKHOUSE. -' ::..Aa , -,. .:,At-3Pi-vAnnnfe-,. '
s b w 8 e r n; -v. c-v ol:.xx i-x o: 3 7'" :''".";'' ; " ,v ' ,vr, K , v- , ,.- ' .' T'J:itgcgi .
. 1
TliKlS ,. , ..
The Sentinel i, published weekly at $3 per annum
Nimble in advance.
tlie numo:r, u , -s- ! g 2 mr sacn
coniinuanvB. , . . .
j .juiAfiiinfi until .u nrmmraira. a r, : J
.Jf t the discretion of the Editor, .r r: ! r - I
Uj- uii icucia m mo mmir, me tic 1
n"'1""' '
MESSAGE,,,,
: FROM THE. , ,
PRESIDENT OF THE UNITED STATES.
To THE TWO HOUSES OF CONGRESS, AT THE
rnYlMENCEMENTi OFj THE "FIRST SESSION OF
THE TWENTY-FIFTH CONGRESS. '"''V A
fcl MxCitizeris of the Senate v
1 " ani House of Representatives :
The act of the "23a of June,-1836 'regula-
i'h'S"ihe deposites of the public money,. and
itirfCimiC i!ic employ nieht of State;. District,
.. , I Tp r ri t o r i al b a n k s f o r l h a t : p u r h s e. ma u e
i-th duty of the t5ecretarv of t!i Treasury
,n fiisf.ontinuo the use of such of them as should
snouiu
in spe- J
-it anviime refuse to redeem their notes
cie, and to substitute nther hanks prbvidedii
sufficient number coul.- be obtained to; receiy
the public depositcs upon tne terms and con
ditions therein prescribed , Thf ;enernl and
almost simultaneous suspension of specie pay
meats bv the banks in May last, rendered the
performance of this duty imperative, in res
'pect to 'those which had bv en selected undel
ihc act, and made-it, at;the s - me time;" imprac
ticable to employ the requisite number of-others,-
opon the prescribe:l conditions. The
specific .regulations established by Congress
for the ue post te and saie Keeping oi tne puo
Uc moneys; having thus unexpectedly becomej
inoperative, I fell it mv duty to aflbrd you an
early 'opportunity' for the exercise of your su-
Ticrvisorv nowt-ib uvci mr oudjeti.
I was also lea to appreuenu mat tne suspen-
slap of specie payments, increasing tne em-
barrassments beiore existing in the pecuniary
aftalrs of the country, wouhl .o far diminish
.the puliUc levennc, that the accruing receipts
into the Treasury, would not, with the reserv
ed five millions, be sufficient to defray the un
avoidable .expenses of the Government, until
the usual period for the meeting o,f Congress;
(whilst lite authority to call upon the State
for a portion, of the sums deposited with them,
was too restricted .to enable the DeparttricuT
1) realize a. sufficient amount from that sourcv
Vjfse i pprehfiisions have been justified by
u'equeut. results, which, render it certain
i.Vju O.is iltficitncy will occur, if, additional
i:rjans be not provided by. Congress.
i The (iiCj.wil.ir.rs: expeiienced" Uj-thc i
rtiercan-
nrtcri'st, in 'meeting ;imir engagements.
i ufuced them to apply , to me, prevkusly. to
tru' actual suspension of, specie paynientsfor
i.i lulgeMra upon the bpn ls for duties and all
i!u relief authorized by law, was promptly and
cheerfully granted. The. dependence of trie
Treasury,', upon, the avails of these bonds, Ui
enable it'to make the depositC3 with the States
required by law, led me in the outset to limit
ithis indulgence to the first of September but
ii hus since been extended to the fir'st of Oc to
iler, that the matter might be submitted foryour.
nirisicr direction
Questions were also expected to arise in the
recess, in respect to the October instalment of
those deposits, requiring the interposition of
vjOiire?s
rA provision of another act, passed about
rue same time, and intended to secure a faith
fill compliancelwith tlie obligation of theUn-
Ueil btates, to satisfy all demands upon them
Aiisjecic or its equivalent, prohibited the offer
ol any bank note, not convertible on the spot
into go Hi or silver at tile will ol, the holder ;
aritlthe ability (of the Government, with mil
lions on deposlte, to meet its engaiiements in
the manner thu required by law, ivas render-
eti verydoubttul by the event to which I have
rcterred. V
Sensible that adequate provisions for' these
unexpected exigencies could only be made by
Ungress; convinced thatiome'of them would
pc indispensably necessary to the public ser
vice, before the regular period of your meet
-1 n.r, m , I . t : I . . - '
uiio ucsirous atso to enable you to exer-
-ise, une earnest moment, your full consti
vuuonai powers lor il rpi;f i
l could not, with, propriety, avoid kubjecting
you to the6; inconvenience of assemblinir at as
-a..y a uayas the state of the ; popular reprel
i . 7. . - s.v Mini m nave
done but lustice tn vnnri: . j"
- V M V Lf 1. 1 Hill K 11 r 11 irktsv -1 n
that tlutt . mi . . o
"'"'ciict; win be cheerfully en
countered, in the hope of rendering vonr ,
ms con iucive to the irood of ih n,.
nrrnif lltra . l:
unux mo earner SLno-p t ka. i? .
though which we have-just passed, mn.h
-w..u,ynious uucussion arose, and srreat diver
' t - w , - .
i v .is icai causes.
WBB not . filirnriainrr . " TK. :
treuu are nn riivoreiHort .k.ia.
wmcn anect them so numerous, aiid often so
SUOtie, that e-n imni!d I ,
ujuiuai ouu Hcii-iuiurtneu
persons are seldom found to agree in respect
io hem. To inherent difficulties were also
ahied other i-nrln,.;- .k:i. t..
'neans lavorable tn thA.Hi.nA..t n.
bs nardlv tn nvnoot.ri k4.u.. .. i i.
ffthe Policy of the Government in rela
ol ? n nh r 6 r!ienc would, in the excited state
fail to Z, I ; s Proauceu by the occasion,
u.io altrihiilo ia :!. :
emhar Fuiicy any extensive
SmS TKnlm the raonelarJrirairsot
-untry. ihe matter thus h
opiniona lhe Paswons and conflicts of party;
Pinions were more or less affected by pblitil
termin.A W1 raS'v otherwise have been de
of r.." ' - . art,BB, o lactsv oy me exercise
ho
stance. .if- eennS "fleclion.v that circum-
u,ceS Of this nil....
. lt
3Trivin,8,lnle',i8cnta8 ?urs ora ultimately
aviDgat correct mniu- J..
- : - tauiiai nrevpni rnmi
f bv the firm hpl!rv. 4.',i.'.-i.'..i;i .1.
state my viewsVsn ft, m-Z kL .I "
I . . ' t. "
in. .xjjr uuiy.iu propose, and ol tue reasons by
i.wiuuu x iiuve Deeir lea to recommend them.
, ne lustprv of. trade in lhe United Slat
fori;ine thsit tnree or four vears. affards the
most convincing evidence that our nresenteon
miuuu 13 cnjenj . to De attriouteU to, orcraction
,an mc ueuuriHienis 01 ousiness: an oer-ac
Hon denvinfir, perhaps, its. firs! impulses from
antecedent causes, but stimulated : to its des-
iruciiye consequences bv excessive issues of
bank paper, and by other facilities for the ac
quisiuon and : enlargement of credit. , At the
commencement of the vear 1834. the hank.
ins. capital of the United Slates mclndino-
thaof the 'national banlv 'then existing', amoun-.
leu 10 about two hundred millions of dollars:
wv uuu iiim's, men in circulation io about
ninety-five mSEIionsiand the laansard discounts
ol the banks to three hundied and twenlv-fonf
millions;
lietweeh that time and the first of
January,' 1838, beiag the latest period to which
accounts have been received.' our haiikiiWra-
pifal was increased ip more than two hundred
and fifty one millions; our paper circulation to
J'hjirer:thaii one hundreI and forty milli
the Joahs and discounts to tnore thahf
ions, and
four hun
dred fand fifty-seven imillionsr. To this vast
increase are to be added the many millions of
creuu, acquired uy means ot foreisrn loans
. V . . -
contmcted by the States.and Slate institutions
and,: above all, hy 1 the lavish accomodations
extended bv; foreijrn dealers to our' merchants.'
The 'consequences, of this redundancy of Cre
dit and of the spirit of reckless stiecnlntimi en-
ed by our citizens, estimated in March last at
more , than; thirl v millions of : dollars: the gs-
tension to traders m the interior of our coun
try of credits for supplies, greatly beyond ihi
wants of the people; .the investment of thirty-
uine anu a nan millions or dollars lnunpro-
ductive public lands, in the years 1835 and
193(, whilst in the preceding vear the sales
amounted to only four and a half millions: the
creation of debts, to an . almost countless
amount, for real estate in existing or anticipa
ted cities and villages, equally unproductive,
and at prices now seen to have been greatly
disproportionate to their real value, the expen
diture of immense sums in improvements
which, in many cases, hare been found to be
r u i u o u sly im p r o v i d e n t," t h e 1 i v ersio a toother
pursuits of much of the labor that should have
been applied to agriculture, thereby contribute
ting to the expenditure of large sums iu the
asportation oi grain fiom Europe an expen
diture which, amounting in 1834 to about t wo
lundred and fifty jhousahd dollars, was, in tlie
first two quarters ol tn present year, increased
to more than two millions of dollars: and.
inaliv, without enumerating other : injurious
resol'tV, the rapi I growih ainonjr all classes,
and especially in our great commercial towns,
of luxurious haUits, founded too often on mere?
y fancied wealth, and'dctrimenlal alike td the
j nd us t ryi the resources and the morals of our
people. 1 ' '-;''rv; . ..
It was so "impossible that such a state of
things could "long continue,' that the" prospect
of revulsion wa3 present to the minds of con
siderate men before it actually came.. None,
however, had correctly anticipated its severity.
A concurrence of ; circumstances' inadequate
of themselvei to produce such wide-spread
and ' calamitous embarrassments, tended so
to aggravate " them, that 'they "cannot
be overlooked in considering their history.
Among these may be mentioned,' as most pro
mine nt, the great' lossof capital sustained by
our? commercial emporium, in the fire of De
cember, 1 835 it loss, the ci effects ' of -vhich
ivpfo nnilrr9tit .it iftA timo. lfnnA'nnatnmi.
ed for a season bv lhe great facilities of credit
then existing; the disturbing cfledtSi in our
commercial cities, 01 tne iransiers of tne puonci
moneys required by the deposite law of June,
1836 and. the measures adopted by the foreign
creditors of our merchants to reduce their
debts, and to withdraw from the United States
a large portion of our specie. "
However. unwilling any of our citizens may
heretofore . have been to assign to those. causes
the chief instrumentality, in producing ; the
present .state'of; things,1 the developements
subsequently, made, and, the actual condition
of -other commercial countries, rnust ? as it
seems to me, dispel all remaining doubls upon
the.subject.i It has.' sine? appeared that evils,
similar to those, suffered by . ourselves, .have
been experienced in Great Britian, on the
continent, and indeed throughout the ;com
meicial world; and that, in other. countriest as
well as in our own, th y have been, uniformly
preceded by an undue, enlargement of the
boundaries of trade, prompted, as with us, by
unprecedented expansions of the : credit sys
tem.. A reference to the amount of banking
capital, and the issue of paper cret'its put in
circulation in Great Britian, by banks, and in
other . ways, during the years 1S34, 1833 and
1D.30, Will sno.W an augmeuiauoii oi uie paper
currency; there, as. much disprbporlioned,lo
the real wants of .trade in the United States.
With this: redundancy of the papr currency,
there arose in that country also a spirit "of ad
venturous speculation,, embracing, tne fwnoi
ra'iiiCot human enterprifC. A 'it vas proiuseiy
gi veh to projected improvements; large invest-
ments were made in foreign stocks ana loans;
credit? for goods were granted with unbound-
and all the means of acquiring and employing
credit Were put in aclive operalion, and exten
ded 1 n tlie i r effects to, every department of bu
siness, and to every-Quarter of the giooe
The reaction was proportioned in its violence
to the extraordinary characier of the events
which preceded iti." The eommercial commu
nity "of Great Britain were subjected to the
greatest difficulties," and their debtors in, this
country were hot onlv suddenly dennv
o
accustomed and expected credits,' but callodl
lure of. things, here 'could - onlv "b mVf
mrougn a general pressure, and - at the rnost
ruinous sacrifices. -' (
'In view of these facts,1 it would seenr imrjos
sible for sincere inquire i" after truth to Resist
the cohvietloft, that! the causes of the revulsion
in both countries have 7 tieeh substantially . tlie
same. ' Two natiohs.'the most commercial in
the world, enjoying butSrecehtly thehighest
degree of apparent prosperity and-maintaining
with. each other the closest relations, arc sud
denly, in a time of profound peace, and with
out any great riaiionaldisaster,arrested in their
career and plunged into a state of embarrass
ment and distress. In both countries we have
witnessed the samelredundaneyilof paper f rdo
ney and other facilities i et credit the same
spirit of speculation ; the same partial succes
ses ; .the same difficulties and reverses, aud at
1 e nlh, nearly ill e sam e io ver akelrni n g ; catas
trophe. 1 he most material dirteience between
the results in the two countries has xjnly Ibeea
that with us there has also occurred ita extent
sive derangement in the r fiscal affairs 'of the I
Federal and State Governments, occasioned
by the suspension of specie y pay ments Vy - the
banks.. - i ;.l'Vaij " iauii-iu ' JMv '
The history of these causes and 'effect, in
Great Britain and the vUnitedf Stales' i; Sub
stantially the. history of the - revulsion, in all
other commercial countries..: ' ' u ' v ---Vi
The present and visible elTectsof these cir
cumstances on the operations, of then Govern
ment, and on the industry, of the people, point
out the objects which call for vour immediate
attention. "--",' . ?x "r?
. They are to regulate byiaw thk safe-keep-
ing, transter, ana aisDursemeni, oi tne public
moneys ; to designate the funds lobe received
and paid ly the Government; to enable the
Treasury to meet promptly every djrnand upon
lo prescribe the terms of indulgence, t and
the mode of settlement to be adopted, as well
in collecting from individuals the revenue that
has accrued, as in withdrawing it from , former
depositories, and to devise and adct such fur
ther measures, within the coristitu ional com
petency of Congress, as will be bes calculated
to revive the enterprise and fji j. pmote tlie
prospeyitV of the country. V
" For the deposite, transfer and dii ursement,
of the revenue, National and State lauks have
always with temporary and limited xceptiuns,
been heretofore employed but, although ad-
vocalcs, of each system. are still lobe found,
it is an parent th
at the events of: tie last few
months havc greatly augmented lie desire,
long existing among the'people ofthe United
States,' to separate the fiscal operations of the
Government from those, of individuals or cor
porations. :." "'Ji '. -: .'- -:'' Ajl-X :--l'-T
Tf Agtrirt, t-era4 national balijU, oa ;b lEcal
agent, would be to disregard the popular will,
iwice soeranly and unequivocallv expressed.
On no question of domestic policy is there
stronger evidence that! the sentiments of a large
majority are deliberately fixed,; apd,-I cdnnot
concur "with those who think they see, in re
cent events, a proof that these sentiments are,
or a reason that they should be chaigedr
' Events, similar in their origin and character
have heretofore frequently becuned, . without
producing any such change ; and the lessons of
experience must be forgotten, if tve suppose
that the present overthrow of credit " would
have been prevented by the existence of a na-j
liunat oanii. i ruiientss iu cAttssoe , issues
has ever been the vice of the banting system
a vice as prominent in National asih Stater insti
tutions.' This propensity is as subservient to
the advancement of private interests in the one
as in the other; and those who direct them
botti being principally guided.. by the same
views, and influenced by the sam motives,will
be enuallv urged to stimulate extra vagance
of enierpiise by improvidence of tredit. - How
Istrifeingly is this conclusion sustaineu Dy , ex
nerience." l ne uanK pi tne unueu oiaies, wiw
mi I. -V.t fT.. !...! J. . J - I.I
thetvast powers conferred on it by Congress,
did not or could not prevent fortner and simi-
ar embarrassments; nor has the;stiliy greater
strptierth it has been said to possess, under - its
present: charter, enabledit,in the existing e
a ,
mergency,- to check other institutions, or even
to save itself. -In great Britain, where.; it has
beetreeUr the. same causes have i jbeea atten
ded with the -same effects, a national bank, pos
sessing powers far greater than are asked; for
by the warmest aavocdtes oi sj;cn an- lusuiu-
tion here, has also pioved unable Lto prevent
an undue expansion of credit, andUjhe evus
that now. from it. :nor can i unu any- tenauie
ffround for the reestablishmeut el a uatiohalVtions ofthe country have lately been exposed.
bank, in the derangement alleged at present to
exist in the domestic exchanges of the a coun-i
try, or in the facilities u may ue capaoie 01. ai-
. ..r.
,.rm iipm a I inniiirn in van ta (res oi in is
sort were anticipated when the first JJank rof
UtUIMK tllVUI. i i
the United States was created tney wereegar?
ded as incidental accommodations j not - one
which' the Federal Government' wasibound or
could be called Opon, to furnish. iThis accora-
mouation is now, iimeu'i uuer mc jojiac i uu
many years, demanded from it as among us
first duties ; and an .omission to aid and regu
late commercial exchange, . is treated as
ground of loud and serious complaint. -Such
results only serve to exemplify the constant
desire.amongoaieof bur citizens.lo enlarge the
powers ofthe Government and extend Us. con
lrol to subiects in which it should io interferei
They can ne ver justify the crealipn of an - in
stitutipn to promoie.such objects. . Qn the con
trary, they lustly excite among tne community
a more diligent inquiry into. the character of
those operations ol trade,, towards '.which it is
desired to extend such peculiar tavors'. .ur-
... j.ne.various trausamiuu wuiu uo mv
name of domestic exchanges, differ essential
ly in jneir nature operation arid utjlily ,-One
class of themTconsists of rbillsj ofj, ex?hanger
drawii; for Tthe purpose oC ,lransierring2aclual
capital from one part of the country, to anoth
er, of to arilicipale the proceeds, of. property
actually transmitted. Uills 01 mis uescnption
a nd. we! 1 deserve all the enc'o uragemen t Vhich
cart rightfully be given lo them." .Another class
is ;made.up of. bills f exchange,-notlntwn to
- - --.t yajJHai,uuf un tne creaiiTH pro
perty iransmitteVlhut'to 'reafAffUt?:hnV'r!n.
ite1? partaking a
uiscouuieu in DanK. and of bank nniM In o ri-
lation, and swellin v ih
to a vast exient in a most objectionable rrran
ner. i iTliese bill have formed far'Ati Uct rm
years, a, large portion of what are termed the
wv,u, cant cjcnanees ot ine country, servirxr as
-he means of usurious prjfit and constituting
the most unsafe and precarious tianpr in e.irrn.
JatlOft. IhlS -snecies' of-traffirli inlAnl nf
a . - . . . ' I 1 - -
bein g u pheld, o ugh t to be d iscoun tenahced by
footing
the privare citizen, ami ma resort la thf.'Mmn
legal means. It rriav:do So thrrf the
urn
of bills drawn by itsftlfV of purchased froinoth-
ers v and in those operations it mayin a man
ner undoubtedly constitutional and legitimate.
facilitate and assist' exchanges of individuals
founded oil real transactions of trade. LThe ex
ten to which : this r in ay be done, and the best
iiivaua i ciicuuug ii, are eiiiuicu to tue tuiiesi
cbisidration-C T bestowed by the
Secretary of the Treasury, and his views will
be submitted to you in his reports i '
V But' it was hot designed by the Consti to lion
tna t tne uo vera m e n t s h o u Id ass u m e th e m an
agemeht of domestic or foreign exchange. . It
is indeed authorized to regulate by "law ; the
commerce between the States and to provide a
general standard of value, or medium of ex4
change in gold, and silver i but it is not its pro
vince Id aid individuals in the transfer of their
funds, otherwise than through, the facilities af-
lorded. by the ; Post Utiice Department. As
justly might it be called on to provide for the
transportation of their, merchandise. These
are operations of trade. They ought to be
coifducted by those who ara interested in them,
ih the same manner that the incidental difficul
ties of other pursuits" are encouuiered by other
classes of citizens. Such aid lias hot be
deemed j Tieccssar riiV? other countries -Throughout
Europe,' the dotr estic as well as
the foreign exchanges are carried ou by private
houses, often generally, without the assistance
of banks, i Yet they extend throughout distinct
sovereignties, and far exceed in amount " the i
real exchanges of the t United - States JThere
is no reason why our own may not be conducted
in the same manner; with equal cheapness and
safety. Certainly this might be accomplished
if it were favored by those most deeply interes
ted ; and few can doubt that their own interest,
as well as the general welfare of the country
would be promoted by leaving such a subject
in the hands of those to whom it properly
belongs. : A system founded on private inter
est,"enterprise and compelion without the aid
of legislative grants or "regulations by Iawj
would rapidly prosper ; it would be free from
the influence of political agitation, and extend
the same exemption f. to. trade, ? itself ; and .it
would put an end to those complaints of neg
lect, partiality, injustice and oppression, which
are the unavoidable results of of interference
by the Government, in the proper concerns ol"
individuals! All former attempts of 4the Go
vernment to carry its legislatiou, in this res
pect, further "than was designed ' by the Con
stitution, have in the erid proved injuriousiand
have served only toconyincethea great ; body
ofthe peoplempre'andjnpre of the certain
dangers oi blending private interests with the
operations of public business t ahd there is no
reason to suppose that a repetition of them now
would be more successful. " ' !' . t
It cannot be concealed that there exist in
our community, opinion and. feelings ' on this
subject ing direct opposition to eacholher,
A large portion of them, combining- great in-
iplliffpnrp firtivitv and influence, are no doubt
sincere in their belief that the operations'- of dauceof our resources,;the general harmPny '
trade ought to be assisted by such a conncc- which prevailsewaen the different Stales
lion; they regard a national bank as necessary and with foreign Powers, all enable us now to
for Us purpose, aud they are disinclined lo select the system most consistent with the
every measure that does not tend, sooner or la- Constitulionj i.and .most conducive t to , the
te'r, to the establishment of such aiiJnsiitu- public welfare.:, Should we,' then, crhnect the
tion. On the other handa majority of the Treasury for a fourth time with the local
people are believed ;5 to be irreconcilably op- banks,it can only 1 be under a ' conviction that
posed to lliat measure; they consider such a past failures have arisen from accidentaiy not
concentration of power dangerous to their li- inherehW defects." . . .
beraesvandrnany of them Tegard it as5 viola- ; A danger,.difficult, if not impossible, to sb
tion of the Constitution This collision of o- avoided in such an arrangement, is made stri
pinion has ; deubtlesi., caused much 'of the em- kingly evident in the very 5 event by which it
barrassmeni to which the commercial transac- has now been defeated." v A ' sudden act of the
oanKtng nas Decome a pomicai topic 01 vne
highest interest,andtrade has suflered in he
. . -0w . . - ;
searceiy .io ue; cxpecteu.-' e nave seen ior
nearly half a century that those who. advocate
national Ifnnk. bv whatever motivc;thev mav
h inflnenced. constitute a portion of our com-
... -
m unity too numerous to alloiv us to hope for
n t-arlr abandonment of their favorite plan,
on the other hand, they must indeed form an
erroneous esiimate of theintelligence and
temper of the American people, who suppose
that they have continued," on slighrpr insul-
ficient grounds, their persevering i opposition
to such an institution-, or that they 1 can be in-
duced hy pecuniary pressure, or by any other
combination of t circumstances to ' surrender
principles they have so long and so inflexibly
lnaintained. Aja AA -vl
D My pwn views of the subject are unchanged.
They hive been repeatedly andf uureservedlyofaccpramodaiing tnetr transactions to such a
jinhaiineeJ lo my
leilowCitizens. wno, wun luiiicatasiropuc. :; . . 1 , t': 'vt.a
knowledge of : them, conferred upon me' the
the
On
hiorhpRt offices tif the Govern menl. -
tlie last, of these occasions, I felt it due to the
nannlA in Bnorize them distinctly, that, in the
,nnt f mv election. I would not be able to
operate in the re-eslablishmehtof a national
ir- V m Uou .,ni;,nonli I liavaiiinn nnlvl
oanti. : . otuuiusuwi ,
to add the expression of an increased cony ic
tion; that the re-establishment of sucft a uans,
beneficial purpose promised by jts advocates,
would, impair " therightful supremacy of , the
popular.wil); injure the ; character and xlimin
ish the influenca of our. political svstem; and
brjng; once, more into existence a concentrated
moneyed, power, :iiostiJe ? to the A spirit and
threatening the permanency, of our republican
institutions.", -. -;lr . .t. i
.Local -bauks have been employed.-forthe
deposite and distribution of the, revenue, at all
times, partially, and,on three different occa
sions exclusively;' first, anterior to the; estab
lishment pf tUp 3ank of the;U; States; second
ly, in the interyal between the terniiuation :ot
that institution and tbb i charter f 8 succes
sor; and .thirdly, during the .limited .period
wnicft has now. so. abruptly closed. - l he con
nection thus, repeatedly; attempted, proved un
satisfactory on each successive occasion not
withstanding the,, various measlirep: which.
were; adopted t: facilitate or insure its successT-
On . the last occasion, in the ryear 1 833, the
employment, of the Stale banks was guarded
m every way i which experience and catHion
cpuld - suggest. 'in Personal h security was ?re-
quired far, ; , the safe-keeping -.and " r prompt
payment . of the moneys ;, to be received, and
full returns of their condition were, from lime
to time,: to be made 1 by the; depositories. In
the j&rst stages, the measure was eminenil.y
successful, notwithstanding the violent oppo
sition of the Bank of the U.. States,' and - the1
unceasing efforts made to overthrow it.; The?
selected-banks: performed - with fidelity, . and-
withbut any embarassment to themselves or to
the community, ..their engagements : to the'
Government, and the system promised ;.to be
permanently, useful.. But- when it became
necessary, . under the . act ol June, isjb, to
withdraw from bem the public money, for the
purpose of placing it in additional institutions,
or of transferring it . to the States, they found
t, in many cases, inconvenient to.comply with
the demands: of the Treasury, and numerous
and pressing' a pplications were made for in
dulgence or relief ,, As the instalmens tinder"
the deposite law become payable, ...their own. .
embarrassments, and the necessity under which.
they, lay of curtailing their discounts andcal-
mg in their debts,-, increased the general
distress, and contributed, with other causes, to
hasten the revulsion in. Svhich, at length, they
in common with the other banks, were fatally
involved. , ,:- - . .. A , '' . .' .
Under? these circumstances, j U ; becomeai
our solemn duty to inquire whether there are
hot, in any connection, between the Govern-
ment anu oanus pi issue, vus ot great uiagui
mde, inherent in its . very .nature, and against
which no precautions can effectually guard:
, Un foresee n x i n the Organization of the j Go
Vernmenn and forced on the Treasury by ear
ly necessities, the practice of employing banks,
was In truth, from the beginning, more, a mea
sure f of ; emefgfencyl; than of scund policy.
When we started into existence as a nation, in
addition to the burdens of the new Govern
ment, we assumed all the large but honorable -i
load of debt which was the price of our liber -ty;
but we hesitated to weigh, down the infanf
industry ofthe country by resorting to ade- -quale
taxation forv the necessary , revenue.
The facilities of banks, in return for . the pri
vileges they acquire, were promptly offered,
and pernaps too - reaauy receivea oy an em-
barrassed Treasury.; During the long contin
uance of a national jdebt,, and .-the intervening'
difficuilies, of a : foreign war, the connection,
was continued from . motives of convenience;
but these causes have long since passed away,. '
We have r ho emergencies , that .make banks .
necessary to aid the wants ,t of the ; Treasury;
we have no load of national debt to provide
for, and we have.' oh actual deposite a large
surplus. No public interest, therefore, idovr
requires
the renewal ot a connection that
circumstances have, dissolved.; meci
The complete
organization of our , Government, the abhn-
banRs intrusieu wun tne iunus pi me peopier
jucpiic h, iu.,( a&uw -
fof tne- uovernment, 01 tue; aotiity 10 pay us
l-V - ... .:, . . t l 1 '
i uuciuatiuui ui uuiuiuvji u. v j. uicu,
it tne puDiic revenue uau uceu cuuectea in
the legal currency, and kept in that form bv.
Uiei.omcer pi ine 1 reasury. me - citizen
l . - - '.t . m . . mi ... -
whose money was la bank receives it back,
since the suspension, at a saennce in jts
amount; whilst he" who .kept it in the . legal
currency, and in ais own possession, pursues
without . loss, the . current or his business,
The Governmeit; placed in the situation of;
former, is involved in embarrassments it couldV
not have suffered had it pursued the corar5e pf-
the Jatter. . These embarrassments arr niore-
over, augmented, by those saluiary and just
laws which forbid'- it . to use a de preciated
i currency, ana, oy so oomg, ta from tho
Government the ability which indir iduals have 1
!v! A system which cany in a time of profound
peace, when there Is ft largr. revenue laid byl
thus suddenly prevent the application and thff
I use of the money of the r. eonte; in thp manner
col and for the objects the v Hirtod "nnfL
bewise; but who car 4 thinkVl without painful"
rpflftCtlon. that. UB'T'.il'ir' .11. i 1 J 2i
. T-r -- . .ucr, ii., mo came, un.ioreses;
- eventstnaghtt h'C; Vefallen us in the midstol
a war. ami en from us, at the moment when
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