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others is produced by the sudden stoppage of the circulation of money in consequence of the trauds committed in banks and the jealousy and fear which these institutions have of one another, powerfully assisted, too, liy the apparent determination of the Cnited States Bank to eat up all the State banks immediately.”
Same volume, page 274, June 19, 1819. “ BANKING.--We have prepared a pretty long article on the requalization of exchange,' as now practically felt by the operations of the Bank of the United States in refusing to issue its own notes, of wbicli, a lite while ago, enough could not be signed to fill up the currency, and isbout which Congress was petitioned, &c. But such things must not be expected! We have fallen on evil times.' We think we shall be able to show that by a procedure like this the bank is really invested with a more dungerous and destructive power than many of its most inveterate enemies expected. May it not be a new speculation? United States Bauk stock at Philadelphia, June 15, in the market at 91$; 90% offered-no sales.";
Same volume, page 417, August 21, 1819. " Never did an institution exist that more completely blasted the public expectation than this bank has done. It-policy, though founded upon opposite extremes, has been equally mischievous and malevolent. The original purpose of its framers was to get money; the object of its present managers is to acquire power. The former were a desperate set of speculators, the other is a conclave of tyrants. Gold was the god that the first worshiped; the second gives up all to ambition. Cæsar or nothing, is the device inscribed on the entrance of the council chamber.”
« Certain facts have just reached me from a source in which I have as much confidence as if the confession were
(Table referred to in preceding column.]
made by the Secretary of the Treasnry to me in person, that the Treasury of the United States is already in a sub servient condition to the bank. In April last the bank resolved that it would not receive of Government its own bills and credit them 918 cash, except when tendered at the places at which they were payable; that it would not pay the Treasury drafts at any place required,'except the publie moneys liad accumulated there to a sufficient amount, unless upon a notice given to allow the bank time to do so on commercial principles, &c. To which the Secretary submitted."
6 Everybody knows and feels the grand deception of this institution as to its pretension to furnish a circulating medium of an equal and certain value in all parts of the United States; but things like the preceding, in regard to the Government, were hardly expected by any one so soon."
Report of the Bank Committee, 1892, pages 16 and 18.
* The committee feel it their duty now to give their views as to the cause of the present distress in the trading community, and which they fear may greatly increase. It is an acknowledged principle that like causes in all cases produce like etfects; and, as in 1818, contraction followed the expansion of 1817 and 1818, so by the same rule must contraction follow the immense expansion of 1830 and 1831, and like effects and consequences succeed.''
“ The committee believe that the cause of operations by the bank, during the years 1830 and 1831, have been nearly of a similar character to those of the years 1817 and 1818."
Almost at the same time with the Bank of the United States commenced the internal improvement spirit, which, during Mr. Adams's udministration, received a new impetus, that was only checked on the part of the Federal Government by General Jackson's veto on the Maysville road bill. This did not affect the States, and most of them continued to carry on the system by raising money on the credit of their stocks. To this I oppose no objection while kept within the means of the State. Put the system was persevered in until, for this and banking, most of the States now find themselves largely in debt, as appears from the following table:
gold and silver and the paper of the bank to the difference between the paper of the Bank of the United States and the Sute banks, and you have, as in the last column, the true discount of the payer of the State banks from gold and silver, in 1€31, at the counter of the preat regulator. This was the condition of things in the most prosperous existence of the bank, and before the public densits were removed.
What was the price of produce during these bank operations? I refer to the following statement for an answer: Prires of Ikeat from 1920 to 1631, inclusive, and also from 1-31 to the 21st of February, 1810, in the eastern part of
15 to 25 cts, 20 cts. 1-21.
46 421 1.
50 50 13.
50 50 1-2.
53 61 531 1631
56 110 1- 36.
1 10 115 91 121
119 1 15 1.
1 00 110 1 05 19..
60 84 1.10.
50 50 This statement is furnished from two of the oldest milling establishments in Ohio-those of Kinsey and Patterson, in Belmont county-and taken in connection with the taxing system above shown, exhibits the gituation of the farming interest while the Bank of the United States was carrying on its operations, even to the time the deposits were removed. Wheat being the great slaple, the above table, with the following, shows pretty fairly the relative value of all other kinds of produce and provisions in different parts of the Union. From these the wages of labor may be fairly inferred, as they invariably go together. (See table in next column.]
These exhibits not only show the prices of produce from 1820 to 1840, but they fix the basis on which to ascertain the price of labor, which was during the first ten years of the period equally low. If proof beyond the recollection of ihose now living were necessary, the following extract from a speech of Hon. Henry Clay in 1824, is sufficient, at least with the Opposition, who now have so much care on this subjeci.
“In casting our eyes around us the most prominent circumstance which fixes our attention and challenges our der pest regret, is the general distress which pervades the whole country.”
“ The Iruth is that no class of society suffers more in the present stagnation of business than the laboring class. That is a necessary etfect of the depression of agriculture, the principal business of the community. The wages of ablebodied men vary from five to eight dollars per month; and such has been the want of employment in some parts of the C'nion, that instances have not been unfrequent of men working increly for the means of present subsistence. If the wages for labor here and in England are compared, they will be found not to be essentially different."- Arles's Reg. isier, vol. 26, pages 378 and 387.
The following additional extracts from the same authority add to the testimony on this subject, and show also the depressed and miserable condition of commerce and manufactures:
From Niles's Register, June 13, 1819, vol. 16, page 273.
“OCR MANUFACTORIES. We hear of the shutting up of several large mutacturing establishments. It is probabie that daring the present sunumer not less than fifteen iloueand persons, and it may be many more, who subsisted by employment in those establishments, in addition to the great numbers already discharged, will be thrown from the productive into the consuming classes of the people. The political economist will estimate the effect of this on the national wealth.”
Saine rolume, pages 356 and 357, July 24, 1819. “Want oF EMPLOYMENT.-The greatest evil to be dep. recated in the present deranged state of things will be the dead loss incurred by casting many thousands of productive persone into the consuming classes of the people. Most of our manufactories have stopped or are aboui to stop, and pyery tranch of mechanical industry is reduced from one third to one hall of its recent ain unt; the tirst by the great sacrifice that is made of imported goods by bankrupt owners in England or bankrupt importers here to raise money to riot upon until their accounts with their creditors are settled according to law;' the effect on tbe
12 00 88 90
States named below, in each period of five years from 1820 to 1835, and from 1835 io 1838. Statement showing the amount of Stocks issued, and authorized by law to be issued by the several
per barrel. bushel. pound. pound. Wheat, Cotton,
Flour at the same places in 1839, and the last of Nay, 1840. Table showing the Prices of different articles of Provisions and Produce in different sections of the Union, about the months of April, May, and June, of 1821; and of
554,976 16,130,003 $2,204,979
1830 to 1835. | 1835 to 1838.
co, per Brown Tobac-Coffee, pound. pound. pound. bushel.
The stocks on which these debts were predicated, during the period of the above fluctuations, mostly passed under the control of the Bank of the United States, and to that extent enabled it, as a vacuum was created by the payment of the national debt, to fill it up by sending those stocks abroad, principally to England; until, with what have since been contracted,
nearly the whole of the State debts are held by English bankers and brokers, and are supposed to amount to nearly two hundred million dollars. This operation has had a threefold effect: first, in stimulating to excessive importation, through the facility it afforded for payments and exchanges abroad, as is evident from examining the periods and amounts in the
26TH CONG....1st SESS.
Independent Treasury-Mr. Parrish.
HO. OF REPS.
table of exports and the table of loans; secondly, of Mr. Biddle)" by a bond of sympathy"in one by increasing the paper circulation in the coun common interest; and now, in all their operations, try, predicated on the money and credit obtained || conspiring to the present state of things, precisely abroad through the State stocks; and thirdly, in as the Bank of the United States did from 1817 to keeping up the credit
of the United States Bank, | 1820. This conclusion is sustained from the foland uniting it and the State banks
wing data: Expansions and contractions of the Bank of the United States from March, 1817, to July, 1820, and of all the banks from
January, 1835, to January, 1840.
direct laxation or equally odious discriminating duties. The first open avowal of this whole scheme of the party opposing the sub-Tyeasury in this House, is found in the Journals of the present session, page 222, January 18, 1840:
“Mr. GENTRY gave notice that he sliould in-morrow, or on the earliest opportunity which presented itselt, ask leave to bring in a bill providing for the assumption of certain debts of the States, and for the appropriation of the proceeds of the public lands for the payment thereof."
This proposition comes from a gentleman of acknowledged ability, from the State of Tennessee, and one who deservedly stands high with his party,
Again, on the Journals, pages 541 and 542, the following motion will be found, which was made by a member who has been some years in Congress, and may be considered a leader of the Opposition in this House:
“The States were now called for resolutions, commencing with Kentucky.
" Mr. Pope moved the following:
“Resolved, That it is necessary and proper to establish a national bank, with a capital of $70,000,000, to aid the fiscal operations of the Government, revive the foreign and domestic trade and business of the country, restore public and private confidence and credit, put into active and brisk circulation the moneyed capital of the nation, and thereby invigorate all branches of business and industry, give employment to the labering classes at fair wages in good nioney, relieve the people from the heavy burden of laxes now imposed on them by the present deranged condition of the exchanges and bank paper, reform the existing disorders in the currency, and secure to the nation a stable and uniform standard of value by excluding a spurious and ruinous paper currency from circulation, and to prepare in part the pecuniary means of war; $10,000,000 of the capital 10 be reserved for the United States; at least one half of the residue of the capital to be allotted to the States, and divided among them according to their representation in Congress, and the residue of the stock to be subscribed by American citizens and corporations, under proper rules and restrictions, who shall pay into the Treasury of tbe United States a premium of dollars on every hundred shares of stock
(Table referred to in preceding column.)
$11,251,406 $5,039,844 Inc. 5 to 1
Inc, 10 to 1 Dec.5to 1 Dec. 81 to 1
All the banks. January, 1835.... January, 1837... January, 1840...
March 31, 1840....
Now, if it'be true, as proved, that the opera and of what was in the country before, more than rions of the United States Bank, by increasing nine millions, in addition, being three times as its circulation in 1817 and 1818, and calling it back great as all the specie held by the bank at any in 1819 and 1820, produced the embarrassment one time during that period. Precisely so it has and distress that followed; and if it be true that been, commencing with the expansion of all the like causes produce like effects, is it not demon banks in '1835. In three years the imports into strated by the above table that the operations of the country exceeded the exports from it upward all the banks, in issuing and loaning so much of one hundred and thirteen million dollars; and greater amounts from 1835 to 1837, and from 1837 as the expansion of all the banks was greater than to 1840, calling in still more of their circulation that of the Bank of the United States, so the exand loans than it did, have produced the present cess against us in the last three years is much embarrassment and distress in the country? The || larger than the excess of the firsi three. Thus relative time of contraction to the time of expan the country, at the commencement of 1838, had sion, in each case, and the proportions which the a balance against it in amount nearly equal to the aggregate increase and decrease of loans and cir- | whole national debt in 1816; and as in the first culation bear to each other, at the respective || instance, so in the last, the gold and silver began periods, leave no room for doubt. But there is to go abroad; and in 1839 all that came in went additional evidence:
out, with an additional sum of nearly eight mil-
High tariffs could not prevent this excess, as I
The price of flour is taken from an Opposition paper in Cincinnati, Ohio, and the contractions from the monthly returns of the banks, made pursuant to law. The statement shows that as the banks called in their paper and reduced the circulation, the price of flour, which is always a fair average of other kinds of produce and labor, continued to fall, until, at the end of eleven months, the paper circulation in the State was reduced nearly one half, and the price of flour in the same proportion, even to a fraction. From this and other examinations I have made, I have no doubt, if the inquiry was carried out, the same results would be found in all the other States. This is fairly indicated by the last columns of the table, showing the prices of produce in 1821 and 1840.
Under these circumstances, it is now proposed by These tables show that, commencing with the the Opposition to renew the system, by creating expansions of the bank in 1817, in three years another bank with larger capital than the last, to there had been brought into this country and con do which it is necessary, and is proposed, to have sumed goods from other parts of the world, above a national debt equal in magnitude to the proall that was produced and sent abroad, upward of posed bank. This debt is to be created by the fifty-seven million dollars, an amount which had Federal Government assuming the State debis accrued in three years against this country, equal, and becoming paymaster to the British bankers, to more than three fourths of the whole sum spent who hold them. in the last war with Great Britain. This balance Cut off the only source from which the Govagainst us had to be paid, and you perceive from ernment receives money into its Treasury, withthe table, that immediately after, and in the midst out taxing the people, by giving away the public of the distress of our people, all the gold and sil lands, and this will necessarily require more ver which came into the country was carried out, money to be collected from the people, either by
in 1821 and 1822, after the ercessive importations of foreign goods in 1817,
and 1818, and of 1835 and 1836.
domestic products taken from it in consequence of the bank expansion of 1817 Statement of the ercess of Imports consumed in the country above the Exports of
of March, 1840. Table of Expansions and Contractions of Ohio banks; and also the prices of flour for eleren months, from the 301h of April, 1839, lo 31st
entscribed; one or more branchire to be established in each was recommended by the present Administration, this measure and take a United States Bank in Stale now existing, or which may hereafter be admitted into I have watched its progress before the country, preference, equally foolish would they act to take the t'nton; the interest on ivans by the bank not to exce:t six per cent. for the first tive yrans, and after the ex
in the hands of the present rulers, with immense a Democrat to do the work. Foreseeing all this, piraus of five years the said luk ia tive to take more solicitude. I look on it as involving directly an I told my constituents before they elected me than five pircent; no not' is the insurd hy the bank of a issue between the people and the bank corpora- | what rule would govern me, and that this rule les donnination than fiv. dobar; after five years the
tiors of the couniry: whether the former shall would make it my duty and their interest to elect bank sul not issue any nute of a less denomination than ten doliats, and alter the expiration of ten years the bank
keep their money, so as at all times to use it with “ Van Buren in preference to Clay or Webster; not to i**ur any note of a les do promination than twenty ont danger of detriment to themselves, or whether and that as for Harrison, he could not be thought dollars. No foreigner ball by i director or vote for a di the banks, by keeping and possessing it, shall of under any circumstances.” I appeal to my rector in said barik. Lach state in which a branch shall be liated and have the pain! Tut of one durctor in
dictate to the country the time as well as the mode colleagues whether I have not stated truly. HavS431bxancii, bride- ils due participation in the general and manner of using the public money.
ing truly stated, I appeal, sir, to this committee eley con ol directors. The details of the public money This is an inquiry of vast moment. On its in proof that in what I have done and said here, to be made iu the sad bank. t.' be disbuand may be re decision depend the future characteristics of our I have said and done neither more nor less than I quired and provided for. The bank, on reasonable notice, to lend to the Government any ut not exceeding 810,
Governmeni. By the adoption of this bill it may proposed to do before my election. My colleagues 09.WU without the consent of both parties. The bank
retain the form and substance of a republic; by and myself, at this very moment, have the same never to send sperle pigments without the consent of the adverse policy it may for a time preserve the difference in reality which we brought with us Congres, and never to bavno in circulation exceeding outward appearances, but in reality it will soon here. If there be any difference now which did Iwice the amount of perit in it- vaults.
become an unlimited consolidation of powers. not then exist, it is as to men, not as to measures. * Resolred. That to aid the public credit and finances of die several Sales, a lid the blirlo enable them to take
The gentleman from Pennsylvania, who has From this remark I ought to except two of the th. proportiota of bank ock alonted them in the first res just taken his seat, (Mr. Biddle,) always elo-six, who are opposed to this measure. Those olulin, the proceeds of the public lauds to be recrived
quent, promised us in the outset he would offer two have now a difference from me in regard to after the lat day of January next ought to be distributed among them accordug to the representation of each in
something for us, not for his constituents, and it which did not then appear. But I have not Congress atier the next apportionment of representation;
would address our understandings, not our pre- changed. one half of the land und paid to each State to be vested judices. This promise from one su competent to In regard to our opinions of parties, also, the and pledged for the supp vit ut common schools, and the
fulfill it was a pledge that we should receive light same two agreed with me once in that wherein other halt for internal improvements and such other pur and instruction. I therefore gave me pleasure. we now disagree. We then thought it would not pores as the states repctively may direct. * Mr. STAVLY mornito lay it on the table.
In the discharge of this obligation, however, he do lo amalgamate with the Whigs. On this point " Mr. Everer made the question of consideration, and has been unmindful of his duly under it, or else we now differ. I have not changed. In regard under that motion the resulution, according to a rule of the has placed an estimate on the good sense of mem to men, I thought and said it would be better to House, lies over."
bers by no means flattering to them. A very large choose Van Buren rather than Harrison. All The whole system is here developed; and the objects which are to be effected by it are those
proportion of his speech was devoted to eloquent my colleagues thought, and so said the party,
declamation on points secondary to the questions that they would vote neither for Harrison nor which I have shown neither tariff nor bank has
at issue. The apology for this may be that his Van Buren. Six of my colleagues now think ever yet been able to do. It assumes to relieve
distinguished colleague from Philadelphia, (Mr. they will vote for Harrison. They have changed, the people from embarrassment and taxation, but Sergeant,] who preceded him, in an able and not I. So that, whether in reference te measures instead of these will increase both. A few brief very elaborate manner, covered the whole ground or men, I have not changed, while six of my coireflections will prove this: of argument.
leagues have changed, either as to men or measThe State debts which are proposed to be assumed, are Two questions, however, were asked by the
shown by the above table to be more in amount than first-named gentleman, (Mr. Biddle,] very pertiany funuer debt owed by this Government, and the in
Here, then, is my apology for this digression. terest on them at five percent., which is rather below the nent, pointing to the merits of this bull:
At a recent convention of those who claimed to average, would amount to.......
$10,000,000 1. “ When you have gotten the specie into the represent the party whose nominees we all were, This sum would be required in gold and silver
Treasury, how is it ever to come out, since the it was thought advisable to proscribe that portion to pay the interest, which has to be done every six months, and added to the appropaper circulation will be less valuable ?
of their delegation who are now advocating this priations made this year.....
2. “ When, by this operation, the paper me measure. I have searched in vain for the polit
dium shall be discredited, how are you to restore ical grounds on which, consistently with their Which, if not annually hereafter increased, its credit?"
former action it has been done. I grant their would make the sum of....
33,750,000 Thus you see the necessary appropriations run
These I will, in the sequel, endeavor to answer. right to make this measure now a test, though not up nearly one half every year without paying
Besides these questions the main topics of this so made heretofore. But in doing it, they cannot any part of the debt. You liave given away
gentleman's remarks were the State banks, and a escape from the conclusion that it will be because your public lands, from which nearly one
defense of the administration of the late United they oppose it, and desire a bank. I know there fourth of the money is esumated to be re
States Bank. These points, too, shall receive are some who do not desire a bank, and prefer ceived at present, and the whole amount that could be calendaled upon to ineet this beavy attention from me.
even this measure to a bank; and yet, by force of appropriation would be.........
15,100,000 Before I proceed, sir, I must ask permission of party prejudice, join in the proscription. Against
the committee to digress for a moment or two, to such, and such alone, with justice I complain. Leaving an amount to be raised of.......... $18,650,000
touch a matter connected with this measure, but Against those who desire a bank we have only This sum, equal to what is already received,
somewhat personal to myself and colleagues. I this complaint, that they have subverted the anmust be ruised, and as the public lands are gone
have postponed an expression of my opinions on cient policy of the party, and are sending it adrift it can only be raised from the people; this can
this measure longer than I should have done, for into the broad channel of Federalism, swiftly puronly be done by levying a direct tax; or indirectly, tion from Georgia took their seats in Congress,
the following reason: when the present delega- suing the great idol of Alexander Hamilton; and by laying high duties under the tariff system.
while they worship at this idol's shrine they are This is the only alternative, and the tariff will be
they were affiliated members of one political fam bringing up to the altar, as a sacrifice and peacethe resort. To meet the demands of the Gov
ily. We then differed, as we still do, on this offering, every vestige of State rights; but, before ernment it will of necessity be one hundred per
measure. By consent, our friends at home agreed doing it, they will have rung the death-knell of cent. higher than at present. Here will be, then, it should not be cause of quarrel or mutual crimi the party, and to the grave have consigned its re
mains. a renewal of all that I have been describing. In
nation, but that either should carry out his views stead of little or no national debt, as at present,
in the most consistent and conscientious way. A difference, then, on this measure and its nethe country would be loaded with upward of two
In the progress of a faithful discharge of these cessary incidents, has separated the present delehundred million; instead of reduced iaxes through
obligations to the country, and to those who sent gation from Georgia. Feeling it to be a mournduties, higher taxes from tariffs than have ever
us here, we have found it indispensable to differ ful occasion, I have waited to the last hour, in been collected; instead of the sub-Treasury, a
in the choice of the men who shall be used to carry hopes that those who differ from us would give national bank with a capital composed of na
out our respective views. On us who advocate me the benefit of their views, that I might make tional debt; and instead of having the public
the sub-Treasury, the necessity of choosing a available that last hour as a day of repentance.
Democrat became as imperious as that which But notwithstanding two of us have given them money used for public purposes alone, it will be deposited with and used by bankers; and the
commanded my colleagues, who opposed that our reasons for supporting this bill, and I have whole system ends in completing what ils prin
measure, lo elect a Whig and a bank man. This privately requested them to answer our argu
I foresaw before I came here. It was known that ments and give us their own, they decline to do ciples tend to, laxing the many for the benefit of the few. Against this I oppose my vote in favor Treasury, and the party as a body were advo
every Whig was opposed to the Independent so, and seem content to see us go forth in our of the sub-Treasury.
way without an effort to convince us. Sir, my cates of the bank system; that system which the own opinions are my guide, but I hold no opin
distinguished gentleman from Philadelphia (Mr. ion too sacred to be yielded up to the force of INDEPENDENT TREASURY. SERGEANT) has truly and successfully traced to
truth and reason. Alexander Hamilton, and which the same gentle Mr. ALFORD here interrupted Mr. Cooper, SPEECII OF HON. M. A. COOPER, man so triumphantly and so bodly announced as and asked him to yield the floor for a short time OF GEORGIA,
Hamilton's favorite scheme. Would you expect and he would briefly state for his benefit his reaIN THE HOUSE OF REPRESENTATIVES,
to fee the bank-note engraver to shoe my horse? sons for opposing the bill.
To ask a blind man to distinguish between the Mr. COOPER, through courtesy to his colJune 26, 1840,
fixed stars and the planets; to invite the moon to league, consented. On the bill in establislı an Independent Treasury. shine without the sun, or to apply at midnight Mr. ALFORD then occupied the fioor for two Mr. COOPER said: I rejoice, Mr. Chairman, for the light of noonday? If I should act thus hours. After he closed, that an opportunity is at length afforded me to would you not justly say, that man is either a fool Mr. COOPER, Mr. Chairman, I would be assign the reasons why I support this measure or a knave?
greatly obliged to my colleague, who just spoke, Convinced of its propriety and rectitudc before it Sir, so long as my colleagues desire to oppose for the use of his lungs.
26TH CONG.... Ist SESS.
Independent Treasury-Mr. Cooper.
HO. OF REPS.
When I made the digression, I had referred to to make money without the use of money. How borrowing to do, puts his money on deposit for the speech of the gentleman from Pennsylvania is this done?
safe-keeping. What will be the surprise of this (Mr. Biple] and to the very able argument of 1. It is done by using the corporation credits || confiding portion of community when I assert the distinguished member from Philadelphia. To to the most unlimited degree consistent with the and prove that the entire circulation of the Union both I shall try to refer a few times more. I will safety of the stockholders.
is based on or governed, not by the specie in the now proceed, without further liberty to depart, and 2. By getting possession of as much of another's | vaults, not by the amount of capital paid in, but discuss the merits of the bill before the committee. money as possible, keeping it as long as possible, || by the average deposits held by the banks?
An honorable member has said he was at a loss making the best use of it for the time, and finally That this is not only true of the United States to know whether he understood the subject and paying for it in anything but money.
Bank, but that is aggregate annual circulation, nature of this measure, because of the differing Hence, he who can get hold of the inost money, during the twenty years of its existence, was govviews of members as to its effect and operation. || keep it the longest, make the most of it, and invent | erned by the aggregate amount of public money The objects I have in view, which commend the the most ways to return it, without giving up the held by it. This, sir, is literally true. And the bill to my support, may be reduced to two: thing itself, maintaining all the while a reputation average deposits during the period of that bank's
1. A limitation of the revenue to the econom for fairness, prudence, and safety, is esteemed existence were as true an index to the circulation ical wants of this Government.
the best modern banker. The keeping, receiving, as the dial is to the sun's course when no cloud 2. To keep the executive and legislative de and paying out the public money (independent of obstructs its shining; as just, sir, as the therpartments within their limits, as defined and pre banks) is ihe subject of this bill. The keeping mometer to indicate ihe heai-swelling as they inscribed by the Constitution, both in regard to the and using of the public funds by the banks, or creased, and contracting as they diminished. I nature and purpose of its policy and powers. through their agency, is the policy of the Oppo- will prove this by witnesses not to be distrustedI am not so sanguine as to expect this single sition, to wit, the Whigs.
the bank's own confessions, which are to be taken measure will guaranty these results in defiance The public deposits constitute the bone of con always most strongly against itself. This will of a willful propensity to pervert, common to all tention. I beg the committee to fix their eyes on furnish a true development of the real cause of all parties. This would be, by the potent energies this single idea, and follow it in all its applica our distress and suffering, and may serve to sug. of a single proposition, to make this Government tions; for siuriling results will be exhibited to gest the appropriate remedy. all that our forefathers desired and its enemies some at least when I shall have fully answered Now for the proof. It is taken from the bank deprecated. No; I should be a perfect enthu the following inquiry: why is it that the friends returns exhibited in the public documents. (Sen. siast, and overlook all the frailties of our nature. of the banks are so hot in pursuit of the deposits, | ate Document, second session Twenty-Fifth ConNo measure you can adopt, however polent or raising a great hue and cry when they are re gress, No. 128, page 208.) The proposition is, conservative, possesses such sanative properties. moved, charging Government with all the evils that the circulation of the United States Bank, The yearly perversions of our invaluable Consti resting on the land induced by superabundance from 1817 to 1836, was governed, not by its captution, so plainly written and fully expounded, of irredeemable currency? Do not ihe people be- | ital, not by its specie, but by the average amount warn me against the disappointment that might lieve that bank notes are based on, and their cir of public money on deposit. follow such anticipations of bliss.
culation governed by, the capital or money of the Here is a semi-annual statement of that bank My brightest hopes are that this measure, banks, a reasonable portion of which is supposed for January and July of the several years, taken honestly and faithfully administered, and untram to be specie? They do. Hence the universal from that document, under the respective heads of meled by obstacles unnecessary and willfully in idea with the mass that a bank is a strong, a safe capital, specie, deposils, circulation, loans, and terposed by those opposed to ii, will by its legit thing. Hence the planter or farmer who has no discounts: imate operation tend at all times to secure these two great objects, while every antagonist policy
Statement of the semi-annual returns of the United States Bank: circulation, deposits, specie, loans and discounts will render their attainment less and less hope
Circulation. limit the revenue and avoid a surplus, but it will
Capital. operate to diminish the indirect patronage of the Executive without increasing the direct. The former is more to be dreaded than the latter, be
91,911,200 $10,170,272 $1,724,100 $3,485,194 $35,000,000
4,759,861 24,746,641 2,129.368 26,235,536 35,000,000 cause it is more hidden and less understood.
8,339,448 7,369,911 2,517,949 41,181.750 35,000,000 The bill supersedes the agency of all banks, July.
9,0-15,216 7,967,775 2,357,137 41,158,985 35,000,000 and keeps the Government funds at command of 1819. January
6,563,750 2.855.312 2.666,696 35,786,263 35,000.000 July.
5,213,040 3.670,381 2,954,266 30,949.662 35,000,000 the people's Representatives, to be used when they
3,589,481 3,560,711 3,392,755 31,401,158 35,000,000 order it, without danger of a spasmodic effect on
4,005,382 2,925,802 5,821,495 30,207,579 35,000,000 the currency:
4,567,053 2,928,821 7,643,140 30.905,199 35,000,000 It will tend to make the paper money sounder July..
5,551,910 2,914,203 5,876.534 28,386,916 35,000,000 1822. January
5.578.782 2,617,554 4,761,299 28,061,169 by removing from the banks the pretext or most
5,620,960 3,388.217 3.350.443 31,795,700 35 000,000 fruitful cause of irredeemable issues;consequently 1823. January..
4,361,038 4.275,330 4,424,874 30,736,432 35.000.000 to that extent it will prevent convulsions in money
7,733,239 4,910,434 34,803,9:29 35,000,000 matters, changes in the relations of property and
4,647,077 10,181,864 5,813.694 33,432,084 35,000,000 July.
6,383,647 8,139,748 5,588,000 32,694,096 its owners, and will produce more uniformity in
35,000,000 1825. January
6,063,394 6,702,143 6,745,952 31,812,617 35,000,000 prices, and soundness of pay to labor and its prod
9,540,694 7,99-2,713 4,048,178 33.531,692 35,000,000 ucts,
1826. January ...........
9,474,187 5,769,795 3,960,158 33,424.621 35,000,000 It cannot injure any of the State banks, be
10,210,412 9,783,161 6,194,275 35,020,490 35,000,000 1827. January
8,549,409 8,982,242 cause it can only take and withhold from ihem
6,457,161 30,937,806 35,000,000 July..
10,198,760 9,448.989 6.381.225 34,131,166 35.000.000 what is not theirs, and deny them the power of 1828. January
9,855,677 8,385,223 6.170,045 44,682,905 35,000,000 abusing what they ought never to use the public July.
10,891,343 11.5.34,413 6.621,734 38,506,410 35,000,000 money. For the same reason it can never injure
11,901.656 10.696,966 6,698,138 39,219,602 35,000,000 July
13.691.783 the prudent and honest merchant or trader of any
11.657, 118 6,641,958 43,018.132 35,000,000 1830. January
12,924,145 9,654,777 7,608,076 40,663,805 35,000,000 description.
15,316,407 10,437,069 10,952.325 43,238,168 35,000,000 The benefits of this measure are not addressed 1831. January
16,951,267 9,131,604 10,808,047 44,032,057 35.000.000 peculiarly to any leading interest whatever. They
19,195,817 7,655,803 12,175,476 56,562,044 35,009,000 1832. January
21,355,724 12,138,362 are to be diffused more especially among the plant.
7,038,823 66,293,707 35.000.000 July..
20,520.068 11,872,105 7,519,083 67,416,081 35,000,000 ers, the farmers, the day laborers, and mechan 1833. January
17,518,217 12,752,543 8.951,857 61.695.913 35,000,000 ics; because the permanent circulation rests habit July.
6,511,502 10,098,816 63.369,897 35,000,000 ually in their pockets. Every loss on it is their
19,208,379 4,030,508 10,031,237 31,911,461 35,000,000 July.
16,641,997 2,075,439 loss, and the saving of a loss is their gain. What
12,823,997 31,024,972 35,000,000 1835. January
17,339,797 2.621,441 15,705.369 51,808,739 35,000,000 ever, therefore, diminishes the use of the article July
25,332,820 1,686.110 13,429,328 65,197,692 35,000,000 on which they must lose, and substitutes that by
1836. January ......
23,075,4:22 627,817 8,417,988 59,232,445 35,000,000 which they cannot lose, is interesing to them.
21,109,352 324,250 5,595,077 52,511,061 35,000,000 This measure does that.
It does not address itself to the interest of the shaver and broker as some, for effect, have de
$189,645,635 Total circulation to January, 1833.... $308,260,974 clared. They fallen on a multiplication of credits
Average during the same period ...
5,740.839 Annual average to the same date..
76,10-4,812 and the derangement of currency. Hence, in such Total circulation from June, 1833, to July,
Average during the same period...
10,872,116 1836.. times, every bank has its broker. Reduce the
263,730.497 former or make uniform the latter, you cut off Annual average during the same period.... 20.294,903
6,613,762 Grand total in July, 1836
450,335,296 their speculations, and make their business and
$1,254,768,908 profits as regular and uniform as those of the mer
Average during same period..
39.023.303 chant, the banker, or the planter.
Total deposits to January, 1833
398,0.6.237 If I be asked, sir, how I arrive at these and
Annual average to the same date....
56,865,184 Totul deposits from June, 1833, to July, 1836, 18,177,000 other conclusions, which I shall presently state, I
Annual average during the same period... 2,039,380 answer, by inquiring into the nature and objects Grand total to July, 1836.....
$1,652,895,195 of modern banking. First, I find the object to be
26TII CONG.... 1st SESS.
Independent Treasury-Mr. Cooper.
HO. OF REPS,
mint three millions, making near five millions in De to pay it to me and I will distribute it. If at
By this statement it appears that from 1817 to You here perceive, from January, 1820, to July, period was the circulation permitted in any ma1833 the annual Average 182, $4,300,000 came in and went out, at a great
terial degree to exceed the amount of the iwo, but Cirenlaun was
$9,341.946 expense, and did not vary the circulation $300,000; most uniformly made to correspond with one of Densito......
the two. Specie..
This conduct of the United States Bank can 38,023,303
From July, 1822, to January, 1824, deposits You will remember, sir, in 1833, the deposits lation and specie stood firm; almost identical.
ranged from $3,000,000 to $10,000,000. Circu only be equaled in willfulness by the conduct of were removed. That was a crisis with the bank
a party of wild Indians of the West, who, to and the country. Hence our estimates are made
During this year and a half specie did govern secure a single buffalo, will rush a whole herd to chat date, and from that date to the expiration
the circulation. The reason was, it was on the down a precipice. This, too, after using the pubof the charter.
eve of a presidential election; the contest was lic treasure for twenty years as the sole governor From 1833 to July, 1836, the time it expired,
warm, the issue uncertain, and it could not be and regulator of its circulation. I have shown the annual average
foreseen what would be the policy of the suc by its own returns that the bank supplied a curcessor.
rency not in proportion to its capital or its specie, Circulation was
But Mr. Adams was elected. Now mark the but only in proportion to the amount of money,
10,72,116 succeeding four years, and observe how well a which you, as the people's Representatives, would Loan.
56,007,184 Federal Administration coöperated with its favor put up and suffer it to keep. It fed and fattened Now, Mr. Chairman, the universal complaint ite Hamiltonian system. From January to July on the food you gave it; and when you asked it is the derangement of the currency, pressure, and circulation rose $2,000,000, specie stood firm. for food its reply was, work for it; order the peohard times. Whence arise these wailings, and From July, 1824, to July, 1825, circulation rose
ple how shall their true cause be shown? It is a vexed
any time your supplies grew short, and you drew question, out of which politicians expect much eighteen moths. Inchis time specie fell $1,800,000. on what you had in its vaults, you were squeezed profit to arise. The paper money has been aptly By July, 1826, crculation rose to $10,000,000, and pressed until, to relieve yourself, you were styled the circulating medium, from analogy to deposits $9,700,000, and specie only $6,000,000. || compelled to replenish the stomach of this gorthe blood in the human system. The'expansions From July, 1826, circulation rose to $13,600,000. | mandizer, whose increasing cry was, “Give! and contractions of the former correspond in efiect The reason was, deposits increased to $11,600,000, || give!” with the diminution and stagnation of the latter. specie stood firm ai $6,000,000.
You will remember that this bank's capital was As you would place the finger on the pulse to test Here you see that for five years, from July, || $35,000,000. It is therefore evident that this did the superabundant action in the arterial system 1824, 10 July, 1829, the circulation rose $9,000,000, not govern its circulation. Hence my proposition or approaching stale of collapse, so you may now the deposits from four to six millions, while spe is established that the circulation of the United place your finger on the column headed " circu cie did not rise or fall $500,000 on an average. States Bank, from 1817 to 1833, while it had the lation, and tracing its action from year to year, For these five years, then, the deposits governed Government funds, was based on and governed mark the coincidences. the circulation
by that fund and not by its capital or its specie. The experiment will prove what I have said, From July, 1829, there came into power an ad I ask you, sir, do the people understand this? " that the average annual circulation of the Uni ministrator of this Government opposed to the The intelligent merchant, banker, or broker may; ted States Bank, for the time it held the deposits, bank--General Jackson. He assailed this Ham but the unsophisticated and honest planters, farmwas governed by, and based upon, the public iltonian system with all the force of his energetic || ers, and mechanics where I live do not. I hope deposits;" not by its capital, not by its specie. character and unrivaled popularity.
they will put their fingers on this and feel assured How stands the case? The circulation was The bank defended by the power of its expan- | they touch the key that unlocks the grand secret 89,000,000, the deposits $8,000,000, and the specie sion and contractions. The policy of the bank of modern banking. was $5,000,000, in round numbers. The amounts, advocates was to increase the revenue and expend. From it we shall illustrate several propositions therefore, of the first two most nearly correspond. itures, to give the bank the deposits. The more interesting to all who are concerned in what you But, it may be asked, cannot $5,000,000 of specie revenue and expenditure, the more deposits and call currency-pressure, hard times, hard money, sustain $9,000,000 of circulation? limay be. But the more power.
&c. who knows but the $5,000,000 of specie is part From July, 1829, to January, 1830, deposits The proposition I have just proven in regard and parcel of the $8,000,000 of deposits, and so fell to $9,000,000. The circulation decreased also; to the circulation of the United States Bank and far is identical? I do not say it is, but have very but specie increased $1,000,000. The deposjis the public money is true of the aggregate local little doubı; because, in addition to the 88,000,000 still governed.
banks of the Union and their deposits, public of Government deposits, the bank had an aver The bank now discovers it must fortify itself and private. This will appear by an examinaage annual private deposit of $5,000,000 during for a bold effort to retain the deposits, or a sur tion of the facts set forth in a table of the condithe same time. But this is wholly immaterial. render without loss of credit. It prepares for both tion of the banks, which I hold in my hand, iaken I do not deal in surmise, for I will now show by events. And from January, 1830, to January, | from your documents and published in the first the tabular statement that the circulation ex 1832, the circulation ran upio almost double what volume of Hazard's Statistics, page 167. I now panded as the deposits increased, and contracted it ever had been; deposits fell to little more than give you those facts, to wit: as they diminished; while, in reference to the half what they had sometimes been; while spespecie, the circulation expanded when the specie cie swelled $5,000,000 above any previous examwas low, and contracted when it was high. This ple. During these two years circulation rose to will prove, beyond the power of contradiction, $21,000,000, deposits fell to $7,000,000, specie that the public deposits governed the circulation rose to $12,000,000. This was a preparation for of this bank.
the contest for a recharter and against the reThe bank started cautiously. In 1817 the range moval ofthe deposits. It also prepared the counfrom $10,000,000 to $24,000,000 was so wide as try for the disasters that followed. to furnish no criterion. During this and the next To sustain this unusual circulation the deposyear the circulation ran up to $9,045,448, on a its are made to rise, from July, 1831, till January, specie basis of $2,500,000. The practice of the 1833, to $12,700,000, while specie fell near $4,000,Government during these two years authorized a 000; so that in January, 1833, the circulation belief that it would have an average deposit of at was $17,500,000; the deposits, $12,700,000; the least $10,000,000; hence, in July, 1819, the cir. specie, $8,900,000; and this state of affairs is culation was over nine millions. But it turned out brought about by the bank with a full and fair that the deposits fell below eight millions; hence, intimation that the deposits would be soon deyou see, in the next six months, there was a con. manded; with what view the committee may traction of near three millions, and, for the next judge. six months, a further contraction of $1,500,000, After being deprived of the deposits in 1833, and by July, 1820, it was reduced to $3,500,000. the bank was driven to supply the defect of basis During this time, only eighteen months, there consequent upon their removal. This it did by was a total contraction of near six millions. The an increase of specie up to July, 1835, six months deposits decreased $4,400,000; but the specie de before the expiration of the charter. This was creased $1,000,000.
effected by drawing on the State banks or by putHere, you perceive, the deposits governed the ting into market some of its stocks; that being circulation.
the next most available means to supply a power After this collapse, the effects of which are in lo redeem its notes. Drawing on the Siate banks the recollection of many, specie rose in eighteen produced a contraction of the local banks, a panic months to $7,600,000, without any corresponding around them, while the negotiation of its stocks increase of circulation. Here you see $4,300,000 resulted in an importation of specie. added to specie, and but $500,000 to circulation. From July, 1833, to July, 1835, the circulation The reason was, deposils stood firm. You see, rose higher than it ever was-to $25,000,000; the also, the increase of specie did not govern the deposits fell to $1,600,000; the specie rose to $13,circulation.
400,000. Was there ever such a state of things In the next two years specie came down again known in the administration of this bank from the by precisely the $4,300,000; but this did not re beginning, in 1837, to this time? Nothing like it. duce the circulation; on the contrary, it increased Here are $15,000,000 specie and deposits to reby $1,000,000. The reason was, the deposits | deem $25,000,000 of bills, and this brought about were rising
at the very close of the charter, while at no former
January 1, 1811
counts. Loans and dis
Condensed statement of the condition at different intervals of all the banks in the United States.