Richmond enquirer. [volume], May 11, 1832, Image 2

About Richmond enquirer. [volume] (Richmond, Va.) 1815-1867

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ot the bank, prior to the first of Mji i'Ii lust, there was m
column showing those loans. In (hat month, tor the lirs
time, so tar ns the committee can discover, a netv cohimi
is exhibited, entitled "loans on ollnr stocks," and whirl
appeared, nt th.it time, to have been transferred fiom tin
line called "bills tliscountcil on jicrsonal swurity.'
This chanifc was made in consequence ot a call for stud
loans, by the llousu of Keprrsent.oives. A statement 11
the same was called for, marked No. 20. u Ilirh exhibits
list ol stocks pledged, consisting ol Theatre shares, Muse
tun stock, Arcade stock, Kail road and Canal storks, Coa
company stock, real estate in Louisiana, &c. iic., uiuo.int
inf to the sufnol $1,713,297 34.
The various transactions in specie, by the bank, lias brei
n subject ot special notice by the committee, and varum
statements called for, bowing the mngnittidc ol them.
The first statement, marked No. 21. shows the amoiin
ot specie exported by the Hank of the United States, dur
jug the year 1331 :
To London, in Mexican coin.$255,000, O'
To Paris, in Mexican coin. - . 620,000
To Paris, in gold,.217,000
i>o. in mixed bullion, ... 1*0,000
-1,G<7,000 0i
. r $1,302,000 0i
2d. The amount of specie exported since 1819, will hi
found in the statement marked No. 22.
To Falkland,.$2.5.93.357 Ol
To France,. 2,257,81)8 5(
$1,355,755 fit
2,337,927 01
596,717 Of
* 1,371,111 Ot
4,855,755 6t
^ 80. The amount purchased tinco 1.821, malted No. 23
$ <05,850 0<
17,596 OC
433,000 0C
. . . $1,001,446 0(1
■till. 1 he amount of specie sold since 1317, market!
$5,184,910 29
$34,731 II
- 18,291 35
8,051,884 50
, -$5,184,910 29
r>ih. 1 lie atuonnt of specie draw n from each of (ho
southern and western otliccs, since 1820, to the H ink ol
tho U. States and New-Vork, marked No 25, shows the
total amount to be - - . . $22,523,387 94
Ol which, $20,925,990 07 has been
drawn to those places since the first of
.January, 1323, - $20,923,990 07
6th. 1 he amount of specie, (in the name statement,)
sent to the southern and western branches
since 1919, is ’$596 IT> 10
The premium received on the specie sold, is " 97,1 to 56
The premium paid on the specie purchased, is 19,171,85
o. 21, snows it to be
Of which there was,
American gold,
Ibjtish, Kreneli and Spanish,
Silver, - - .
Ot silver,
gold coin,
gold bullion,
Of this amount, there was in cold.
In bullion,
In silver, .
.... , $77,9(18 71
" lint profits were made on the specie exported, the
committee did not call for documents to enable them to as
certain; it must, however, from the great quantity sent
away, have been considerable.'
The committee called lor a statement of all the specie
imported by the Hunk from abroad, since 181.0; but, as
none was returned, they presume none was imported.
What proportion of the gold exported, was American
coin, the committee have not before them the means to de
termine; it was expected to have been given in the state
ment; but, in looking into them, (lie gold exported is with
out a designatory name; it is believed, however, the
amount is considerable.
In examining this subject minutely, the committee find,
tliat l«wamounts of t!io spccio lifivc hern drawn ho n
the office at New Oi leans. Of this, there can be no com
plaint; it is the principle depot for returns ol goods shin,
ped to Mexico, w hich are almost exclusively paid for in
specie, and it cannot he expected that it w ill remain there
Jiut the committee suggest whether the withdrawal ol
the specie from most of the other parts of the country
and substituting paper In its stead, might not be highly
injurious to those scctious of country subject to its one ra
tion. 1
The subject of the bank’s furnishing bills of exchange
fot the trade of India, China, and South America, has
hern brought to the attention of the committee by docu
merit marked No. 2fi; and having been so strongly de
scribed as affording great ail vantages to the country, in
the triennial report of September last, as “economising”
the specie ol the country. The committee have felt it a du
ty to examine ami present the subject to the consideration
ol Congress and the commercial community, believing, as
they do, that there is something delusive in the operation,
i he result of their examination has led them to the con
viction that this new method or dealing in bills of cx
clungc docs not “economise” the specie of the country at
”,a universal law of drawing, that funds must
either go before or follow after the draft to honor it at ma
turity; and w hether it goes directly or circuitously.
funds to discharge it must, sooner or later, arrive at the '
place of payment. The e bills are lb be paid in Kngland;
but they go round the Capo of Good Hope before they
reach their place ol destination. Instead, therefore, ol
^vmlimr the specie directly to India and China, as for ’
K^Lhu docs not perceive that h "iii-i ■ -Mr-1 - -
i com M‘11* u F-"R*
land, tnS»dAd»is^^flfP)ff'f?WcTitlie«o Gills arc drawn, there
to meet them upon their arrival at the pheo w here they
are to be paid? The bank consequently becomes the ship
per of the specie to pay Its bills, in place of the merchant
to purchase bis merchandise in the East Indies. It i?
simply and purely nothing but a change of the destination
of the specie, with only the advantage of its going to Lon
don.
The mole in which these hills are drawn and disposed
of to the purchasers, having twelve months to run, as will
be seen by a copy of the obligation taken by the bank,
marked No. 27, the committee consider of doubtful utility
to the country. 'Flic legitimate objec t of banks, the com
mittee believe to be, the granting facilities, not loaning ca
pital. Tho supplying of bills appears even more objec
tionable than loaning capital; for it encourages an opera
tion which commences and ends without the employment
of any capital whatever, and is similar in their character
to respondentia securities. The buyer is enabled, within
the term of credit, to make the voyage, dispose of his goods
and obtain from the proceeds the funds to meet his obliga
tion, and the bank to transmit the same to tho place upon
which their bills are drawn, (which are at six months
sight,) long before they become due. It would seem to
produce a greater export of specie eventually, than would
otherwise take place if the operations were commenced
with specie, and not with bills purchased in the manner
described ; lor the merchant, relying upon bis immediate
resources, would not engage to such an extent in the busi
ness, and would combine in the operation much of the
produce of the country; whereas, relying upon an exten
sive credit, ho hazards every thing on the success ol the
enterprise. It is a species of speculation in trade leading
to great risks, and certainly terminating in overtrading—
the evils of which the country is now solely experiencing,
lly loans of a similar character, by insurance companies
providing funds for traders to China, Government lias sus
tained more loss than in any other branches of trade.
The increase of the number of brandies established
since 1832, oannot be passed over in silence by the com
mittee, and deserves, as a source of extended influence of
the bank, the most serious consideration.
In some few instances where new branches have been
established, perhaps they may have been called for by
the community, and may have been useful to them and
profitable to the bank; but, in most of the eases, the com
mittee doubt whether they were called for IV on public
utility, and their establishment will, in the end, not only
prove unprofitable to the bank, but very injurious to the
communities among v\ liicb they arc located. Mr. Chevcs
in a letter of the 27tli May, 1^19, to Mr. Crawford, then
Secretary of the Tre.i-tiry, says: ‘‘I am perfectly satisfied
that, with the present organization of the bank, il can ne
ver be managed well. //V have too mart}/ Lrnnthrn, and
the directors are frequently governed by individual anil
local interests and fedings. For a time we must bear with
tho brandies, but I hope (bey will be reduced.”
Again, in the same letter ho observes, “the real and
original ovil ander which the country i* sulfring i< over
hanking. This leads to excess in trading, mnnuliriTiring,
building, and the history of the ill-judged enterprise*: which
have heen tinder! ikon in the* ■ several concerns, would
give n full history of all (lie distresses of this country, ex
cepting a little agricultural distress growing out of the in
ordinate expectations which the other* excited.” These
opinions fully accord with the views of the committee, and
thoy consider them as peculiarly applicable to the present
time, as exhibiting similar causes now operating with ex
tended force Ir on which simitar effects must follow , aug
mented in proportion to the increase of its branches.
I he stockholders at the triennial meeting on the l*t ol
October, I'-'li, recommended a withdrawal ol room of the
branches then existing, in those words: “In taking into
view the business of the hank, as connected with it* oth
ers, the committee think it right to recommend to the con
tinued att» nlion of tin* Pre blent and Directors the neces
sity of withdrawing those branches which art* fotlli I to he
unprofitable, and transferring their fund.* to llm office*
which «h ill seem to reipiiro additional capital.” Since
this period /too have been discontinued, and nine other*
h ive heen established, as per triennial report ol 1831.
These opinions of Mr. f hi ves, in which the committer
have concurred, were approved by the stockholders, a«
will appear by the following extract from this same report
in 1822 /hey say, ‘•they take great pleasure in unani
mously declaring that the rircMinsiariees of the hank fully
realize their anticipations as expressed at their last meet
ing in regard to the President, (Mr. f'heves,) who. by hi*
talent*, disinterestedness, and assiduity, has placed its af
-tairs in art attitude «n sate and prosperous as that the bur
will be comp i
Tli* committee cannot but think that, hml the succeed
i tup direction ol the hank been guided more by the opinion*
and wishes o| tlie stockholders, as then expressed, and
i go':c on gradually growing with the growth, and tncrcas
i ing with the natural wants ot the country, great buildings
■ to the community wouhl have been avoided.
In the year 1*19, great abuses existed in the branches,
, lot which Mr. t'heves speaks without reserve, in his last
I1 report to the stockholders, as well ns in his eorrospon
i deuce with Mr. Crawford, and upon casting ihc eye over
the inon'hly statements, it is remark.ddc to observe what
I 1 losses have taken place at the branches compared w ith the
mother bunk. For instance: on the 1st of January lust, the
' loss ot the mother bank, on a gnpitsd ol sixteen millions and
, a hall wa<, in lotmd numbers. $32*,000; that ot the It.dli
moir Inancli was, $l,6‘22,000,oil a capital of one million
and a hull, m> (hat it lo«t more than its capital. That ot the
t Norfolk branch was $229,000, on a capital of $500,000,
. losing nearly one haltol its capital, and mi with all tho rest
ol the branches, their losses are out of all proportion to
) their capital, and ten times greater than the mother hank,
according tothe amount ol their respective capitals. These
losses, however, were principally incurred prior to 1*19.
I lie proper inference to he drawn from these facts is, that
i the worst ol mismanagement ban existed in the branches.
The “Contingent Fund” has claimed the attention ol the
1 committee. I lie object for which it was oiiglnally crea
ted, and the original amount provided, together with the
additional appropriations which have been made to it, and
I the manlier in w hich tho same have been applied tit ilif
i ferent pounds, will all he explained in the followingdocu
; met h.
i I lie report of the board of directors in July, 1821, nub*
I ; bsbed ill the gazettes at that time, marked No. 2*; the re
i port ol the stockholders at the triennial meeting in October,
1*22; the report ot the Dividend Committee, on the I'ilh
January, 1823, Marked No 29; a statement ol the particu
' ol the debts “cousidercd lo-t” marked No. 30; a state
ment ol tlie suspended debt and real estate, w ith tho pro
' liable loss thereon, marked No 31; the statement headed
C.>/itnigrnt Fund,” marked No 32; the sales of the for
letted hank stock, marked No. 33; and the dividend reports
lor July, 1829, January and July, 1S3!>, January and July
1S31, marked No. 31. To these the committee refer for
the particulars of the subjects to w hich they relate in
connection with the "Contingent Fund.** ’•
I ho committee feel it their duly now to give their
i 'ie"'sas to the causes ol the nresent distress in tl... i.-.- !
(ling community, and which they fear may greatly in
crease. It is .m acknowledged principle Unit like causes,
in all cases, produces like effects; and as in 181)) con
traction followed the c.\p.u>«.iou of 1817 and 1X18 so bv
the same rule must ronlraelion lollow the immense exi.aii
I sion ol 1830 a,id 1831, ;1Md life . fleets and conse„uenceS
*u‘ ° ,|l'*®t,ate more clearly the position, and brine
| t home to the minds ol every one, the following table ol
!,« stat,° „ ,I|U during some of the months of 1818
l.», and 18.11 and '32, are here exhibited, embracing items
Iron, which direct calls upon the .........j, "ml the
immediate means which remain to meet them viz: t he
lirst are the tlepo.«ites circulation and debts abroad, not on
permanent loan. The second, the specie, funded debt
and notes of other banks; the amount of each will* be
found under their proper heads at the various periods men
tioned.
I lie preceding table shows that, at no period in 1810.
when the bank was very near suspending payment, was it
less able to extend relit I to a snllering community than at
the present moment. In April of that year, the month
in wiueli its ditiienlties were the greatest, its means of spe
cie, notes of other banks, and funded debt (which could
have been turned into specie or notes ol other banks)
amounted to upwards of ten millions of dollars; and the
whole demands, which could conic against it in the same
month, of circulation, depoMtes, and debts owing abroad,
amounted only to about fourteen millions. lint the
Committee leel bound, in candor, to state, that this
was alter a number ol month* of constant contraction, not
only by the Hank ol the United States, |..,t also bv most
ot the other hanking institutions of the country, where a
genert ex 'anstion bad been produced. It was on the Cl,
Apttl, 1. Id, that Mr. ( rawlopl, then Secretary, id the
1 re asm y, writes to Mr. Oheves thus: -It is even doubt
I''! lT',e',,er n ,s practicable, with all the exerlmn* which
I is m your power to make, to continue specie payments
throng.i the year.” Under the same dale, he says- “My
impression i-, that (he safety of the bank can only be ef
fected by withdrawing nearly tho whole of its ,,'aper in
circulation. It the hank does this, all other solvent hanks
" 1 l,,; compelled to do the same. When this is effected
gold and silver will be introduced into the country, and
make a substantial part ol the circulation, and enable the
banning institutions gradually to resume their aceusiomed
operation. \\ liilst this is .(reeling, the community, in all
lis relations, will bo greatly distressed. Considering the
extent ol the suffering, it is greatly lobe desired that some
go(n| nmy result from it.”
I he Committee believe that tf»c course of operations
bv the bank, during (lie years 1830 and 18:11, have been
nearly of a similar character to those ol the years 1817
and lx 18. Drafts and not. s, payable at distant oilioes, were
then lively discounted at the Hank of the United States
an I the different olfires. Hank notes were issued by the
bank, without regard to the wants of the community, or
the effect upon the circulating mediin
preriHtei). driving *•»« •• ... r..\
an.l, until the reaction had operate r . k ti n
extravagant speculations, which en. V ! jo n:m- ,
was not obtained until the ciivtilatio , tb. t tllf
U. States had been reduced to about 1,
Itbu ^ Yvt,
to, of curtailing loans; and, w hile they w .! u.g ;ba(,
they continued the issue of bank note's, thereby con'.inu
iug the evil which they were striving to avert.
" hat is the state of the bank now/
.Ou tlie 1st ol March, (see monthly statement, marked
No. So,) the hank had $<>,800,000 specie, $2,840,000
notes ol other hanks, and of funded debt, nnnefi making
an aggregate ol $9,540,000, to meet its circulation of $23,
7 17,<100, deposites $17,050,000, and foreign debts owing
$ 1 ,87(1,000, making an aggregate of $12,643,000; and this
evil exists while a re-action or conti action is operating to
a considerable extent.
This contraction commenced on the 7th of October last,
and is evidenced I y the billowing circular, which indi
cates, beyond all doubt, that the bank had over-traded.
CIRCULAR.
Han), of the United States, Oct. 7, 18.71.
• Sir: flic unusually heavy reimbursements of six mil
lion* of funded debt, which was on the 1st insf. advertised
by the Government to take place on the 1st and 2d days of
January next, but which, according to subsequent notice
from the Treasury Department, under yesterday’* itate,
may, it appeal's, lie demanded ol tin- bank, by the public
creditors, at «»»/ period of the present quarter, is calculat
ed to press very inconveniently upon the present hank, and
upon the office at N. '» ork; the more so from our uncertainty
as to the lime when the necessary provision must be made,
j :<nd from the prevailing active demand for money. Ho
: pleased, therefore, so to shape your business immediately,
^ is that without denying reasonable accommodation to your
own customers, or sacrificing the interest ol your office,
you may tlnow, as early as possible, a large amount of
| available means into our hSnds in Philadelphia and Xew
I York, and at the s '.me time abstain, as far as practicable,
| from drawing upon either of those points; checks and short
drills on the local banks, and on individuals, will prove
• particularly acceptable for several months to conic, and
| whenever direct claims of lli.it kind, on those two places
I arc not to he procured, you might materially aid us, by tak
j iug drafts upon the large cities nearest to them.
I am, respectfully, your obedient servant,
W. McILVAINK, Cashier.
Addressed to the ( asm inns of all (hr. offices.
Since tho 1st of September last, the bank has diminished
its means to meet the demands which may come upon it_
First. Tho whole of the funded debt which
. it then held, $3,197,681 (ifi
i Second. i he difference between the spe- *
it then hold, 11,545,116 51
Arid the amount it possessed on the 1st
AJ"iL 5,799,733 6.1
Making an aggregate diminution of its moans to moot its •
1 momentary di mauds, since the 1st of September, of I
$8,2-13,0-13 111, whilst during tl,o miiic period, those do- I
mauds have increased $1,187,871 51; viz: fho circulation,'
depo-ites, ami foreign dohi, the aggregate «f which was |
on the hi September $38,152,758 07, andontho |.( wil
$12,050,030 18. I he inrnxures and the effect appear to
j ho similar to those preceding The extensive dis- j
counting of domestic hilts and drafts, payable at distnnt i
i branches,the an,mint bring onthr Idol April, per month- !
j '.V •»«»< $20,351,7 18 70. The orchis for curtailing !
.t the western hranehes, and the curtailing at the priori.
I pal offices in the Atlantic cities, and at the Hank ol the
I'ni'ed Stales, the amount ol whieh, at the Hank of the
| * "ited Sla'e-, between the 5th of .famiarv and the 28th
I day of March, is .>1,810,-108 37; at the office- of New York.
| between the 4th day of January and the 281 h clay ot Mareii,
$258,305 13; at the ofTire ol llodon, between the 5>h
] day ol J-mmiiy and the 2!) Ii day of March. Is $I0T,860 85;
| (ami ili.it, too, on n discount line of less than two.mil a half
j *|,,l|:,rS) It the olfic e of llaltlmore, between the
; Ifltll of January alid the 2d day of Apiil, ,$l»3,7ll 63, and ,
i on a discount line of little more than two millions of did- !
j i,‘‘ wi" '•'• f,,'rn by the weekly stalement of those of*
j bees and the Hank of the United Slates, marked No. .‘Ml.
I the mod remarkable tealnre ft hit'll presents itself to
the mew of the committee, connected with (lie present
l •‘■•nation ol th<- hank, and the course of operations upon it
l ‘bn’'' Ihe 1st of Neplc other last, is Ihe inrreaso in the cir
culation of its notes, which amount?d on the 1st Septem
ber to $22.388,117 52, and on the 1st April to .4(23,717,
III I 1, making the increase of $1 ,.317,883 62. * During
this period the hank undertook to c heck the exportation ol
spen.. by supplying hills at suc h a rate as left no induce*
; tin id lor individuals to ship it; |0 do which, they exhaust
ted all the funds which they could procure from every
j source Over $5,000,000 were remitted, ns p,-r .statement
marked No. 10. and still left them with a debt ot more
I than ijt1,700,000 in lairopa at this period. The pause
which led to this necessity still yet exists, with anincrca'c
to the extent of the increase of circulation, and hut for a
decline In the price of specie In Europe, it would still con
tinue to l>e exported.
Tlie committee would present another striking analogy
betwe ;n iuv situation of the bank in April, 1819, audits
present condition. At tlm first mentioned pciiod, Mr.
t'heves informed the Secretary of the Treasury that the
hank would not pay the l.uui-iana debt of three millions,
without negotiating a loan in Europe, and two millions
were actually borrowed in Europe, the indulgence of the
(Government t>eing obtained to that effect. The bank at
this time is precisely in the -am© situation; it lias asked
the Government to postpone the redemption of tho three
percents, from Mo! July to 1st of October, and has as
sumed the pay mentofone quarter’s interest on these s'orks,
• ring substantially equivalent to horrov iug seven millions
of the Government’s money for three months.
The supplying of exchange by the hank, as has been
done tor tin; last five months, and the curtailing of dis
counts, arc hut mere palliatives, as tho committee fully
belie' e; and they are per-uaded that no measure can be
invented to restore a sound currency, amt a tegular state of
tilings generally, and give a solid and permanent value to
property, but the withdrawal of a large portion of notes
no" in circulation, by tho bank, which will compel other
banks to do the same.
I he committee will here introduce a quotation from Mr
Kush, in his Treasury Report, in 1S&8; w hich fully ae
cords with their sentiments, "it is the preservation of a
goad currency which can alone impart stability to proper
ty, and prevent those lluctuatloiis in its value, hurtful
alike to individual and national wealth.” Again, he says;
“ 1 ,li' advantage tho bank h is secuieil to the community!
by routining within prudent limits its issues of p iper,
whereby a restraint has been imposed upon exccs.-ive im
portation, which are thus kept mere within the true wants
and capacities of tho country.” According to the Irieit
mal report ol the directors to the stockholders, of the I-t
ot Augu-t, ol 1828, the amount of circulation then was
$13,04-1,760 71; and on the 1st of April last, as before
staled, it was $23,717,4 11 14. presenting the astonishing
ihlierenco ol $10,671,780 -Id, in less than four years._
V."‘ 'm* ,,c c,,,,sidered. according to the sound doctrine of
. confining its issues of paper within prudent
IiiiiiN, whereby a restraint lias been imposed upon rxres
si\e importations? I hat great contiactions are ihjiiiiou'*,
the committee consider they have adduced an authority
that cannot well lie doubted, and that a groat one is now in
operation there are too mahy general evidences in confir
mation of the fact to be refuted. A particular one will
snthce, which is taken from the documents called lor by
the Senate, ami presented to that body by the Secretary
ol the Treasury, on the 12thol Match last; in which "ill
he found a communication from the President ol the bank,
•sta'ing that the amount of branch notes redeemed by the
Ibiitk ol the United States at Philadelphia, during the
month ol February last only, to be $726,000; and the
amount redeemed, in 1831, during the same month, was
only $368,910.
In a letter under date of the 26th of March last, to the
.JvTom ?Lll,c co,nn,ittee, the President of the bank
v>a. v■ i "mount ot branch notes redeemed at the
?v, ;V,k ,o!VC,0l,u r—’ 1S31. was $13,219,635
•md at Phihulclph.a, $o,398,800, making total ol $18.
t.lS. I.}.,, with an increase ol circulation between the 2d of
l;chr,,.uy, 1831, and the 2d of January, of .noro
man nix millions of dollars, as per monthly *tateinent«
and doercase of its means, between tin; 2d of February’,1
1831, and 1st of April, 1882, to meet immediate demands,
ol more than twelve millions of dollars, viz:
I n specie, funded debt, and notes of oilier banks, which,
at first named date, amounted, as per monthly statements,
t0 . , , , $21,756,668 10
Ami the last to 9,640,000 00
.r , . 15,COS 10
Making, a* just slated, a diminution in (he active mean*
immediately applied to (lie extinguishment of it* debts, of
considerably more than hall of it* former capacity, to cf
feet (lie same object.
With such an increase of issue*, and the influence or
a most powerful re-action now operating upon the fiscal
energies ol the country, as is exhibited l.y the ditfeicnce
ut the redemption ot branch notes at the periods and pla
ces above mentioned, together with such a reduction ol its
means, to meet its engagement*, must, wo fear, compel
them Mill further lo curtail (lirir iiruoinniodadoos.
It is evident, from the circulars addressed to the branch
ivs, and correspondence with them since October last, that
the chief object ot the bank lias been to sustain itself—the
statement* accompanying this report, clearly proving that
ihe bank has not increased its facilities to the trading com
munity, in any part of the Union.
I lie It ink ol the United States, among other conditions
d Its charter, is bound to make collections of the public
cyenue, to transfer the .same, or any part thereof, from one
[joint to another, that may he required; and to make any
md all payment* for the account of the government,
a nether for pi inrijuti, interest, civfl list, army, navy, pen
dons, or lor any other purpose whatever, free ol all and
iny charges for such services.
I' or pet forming this duty, the bank has claimed, and has
-cceived from the treasury department, and the country
generally, for some years past, merit to an extent that
mold ... > h ■•••• >■ sur I,even If ill th m *4 rvicea it
.. ''01 ins "ere gratuitous. This and other circumstance*
i n. led the committee to an investigation of the subject,
11 1,1 ** ”,c hunted lime would allow, before closing their
lo 8oe ho"' far the bank is entitled to the credit bc
'ovvtal Ityuf. ami wl.al extent TTie Lank ha-' nt<\eiT'\ITie
government m its liseal operations beyond the obligation
mposed m obedience to its charter,
i he Government, in its collect ions through the Hank of
he United States, receives nothing hut specie, or notes of
he Hank ol the l nited Slates, and makes its payments in
milling cl*e. If the notes of State Hanks are received by
lie bank in place of its own, it is u private matter between
inch Hanks and the Hank of the United States, and one
vith which the Government dors not concern Itself; and
t is to be presumed that the Hank of the U. States is too
.valcLful and vigilant in the protection of its own interests
lot to see that it obtains from the State Hanks, lor the
lotos thus taken, specie or its equivalent, or its own notes,
11 exchange, and thereby be provided with a fund from the
.•ollection of the revenue, equal, in value, to that in which
hey are required to pay.
The largest portion of the revenue, particularly from im
ports, as is universally known, is collected in the Atlantic
hies, north ot the Potomac. Those cities being the great
inarts of supply to nearly the whole of the United States,
md places to which remittances centre from almost every
(>art «.( .lie count, y, creates a demand for funds upon them,
Irom nearly every quarter, cunstnn(ly, and generally at a
premium. 1 herefore, so far as the bank is rolled ..,.nn to
transfer fund:. Irom those cities to other places, it becomes
1 mailer of profit, an I not of expense to it, and the greater
Ihe distance the greater the premium; and the larger the
amount thus required lo be transferred by the govern
ment, and the greater the distance, the greater the profit
and advantage to the bank.
That the bank ha* aided the Government thus far, the
committee are unable to discover, or that they are under
any obligations to the bank for those services, they are at a
loss to imagine. Mow far tin: hank lias aided the’ Govern
ment in its fiscal operations, as it claims to have done, will
lie seen by a communication from the President of the
Sank to this committee, hereafter adverted to in another
part of this report; and also in a report of the committee of
Ihe stockholders, at the triennial meeting on the Jst of
September, 1831, in the following words: “That the hank
through the whole course of its operations, has effectually
assisted the Treasury in the collection and distribution of
ihe public revenue, and that, of late years, it lias been
signally efficient in preventing the discharge of the public
debt from disturbing the operations of commerce, or the
v.uuc oi prcum.wy investments.
Now the committee are not aide to discover upon
whnt principles the foregoingdeclaration is made. Jiy re
ferring to the correspondence, in 18l«», between the then
1’iesident of the hank and the then Secretary of the
rrcasiiry, the committee discover that the hank was then
applying to the Treasury Department to aid it in its opera
tions, and was receiving all that it could promise.
fhi the 20t|> March, 1810, the President of the hank
clours a communication to the then Secretary, Mr. Craw
ford, thus; “I have ventured to trouble you with those
views with the hope that you will pardon the liberty, and
w ith the conviction that it you can serve this institution in
anv of them which you shall deem consistent with the
public good, you will feel a pleasure in doing so.” The
Secretary of the Treasury, in slo-mg his answer, under
date ol the 27lh March, 191??, says, “every (aeility which
it is in the power of this department to afford the bank, in
its efforts to support specie payments, and restore the cur
rency to a natural state, may he confidently relied upon.”
I’v a reference to a statement of the public desposllcs
in the f> m1< of the Dnifed States each monih, from March,
181s. to March 1932, inclusive, matked No. .17.it will he
seen that from the 1st of January, 1823, up to the month
f.l March, 1832, there has been only one period, (Novem
ber, 1825,) when the public dcposilcs did not exceed four
millions of dollars in the hands of the hank, and they fro
<|uently amounted to eight, nine, ten and eleven; and on
one occasion to twelve millions of dollars.
By reference to document marked No. 39, it will he
found that since (he month of March, 1821, at all the dif
ferent periods immediately following the redemption by
the fGovernment of portions of its funded debt, there is
no one time when the bank was not left w ith more than
one million and a half of dollar4 o| public depodtes; and in
many instances with four and five million*, which sums
were immediately after, increasing by the constant accu
mulated collection of the public revenue.
I he hank, a* it collects the revenue, knows, or ought fo
know, that it will he called upon by the floverntncn! to re
imburse it, and in all cants ol redemption of the funded
debt, three months notice is given by (tie Treasury of
such intention. IV ilh such notice, and with proper man
agement OH the part of the hank, the committee cannot see
that either the Oovernmcnt icipbrcs any n‘d, or that the
community can l.c affected by tlm course of the operation.
I he (tank has its legitimate hanking capital with which
to do its regular business, and accommodate the communi
ty As it collects the public revenue it i* enabled both to
avail its* If ol tbc advantage ot employing it to its own bene
fit, and the accommodation ot tbc commcrci.il Community,
« lio |mlnclpully contribute to lU payment, by commencing
ilio discounting ol' business paper, payable within or about
the lime they know they will be railed upon to make the
payment# on aceount ol the Government; and, as they
gradually appioacli that period, they must also shorten the
period which the buninefs paper has to run, until they ac
tive at the time the call Irom Government is made upon
! them, when the buniiusa paper will have been paid oil', the
bank then pays the Government, and the Government
immediately agtiu ci culutes it uiiiong the community.
I he opei at ion, as thus described, appears to the com
itiitteo too plain ami simple to rctfuirc any Inrlhcr illostru
lion; and it the principle is sound, and has been acted up
on by the hank, they cannot discover in what manner the
operations ot commerce could have been disturbed, or (he
value of pecuniary investments have been all'octcd by the
payment of the public debt by the Government.
Hut it the hank has, as the public revenue lias accu
mulated to the credit ol the Treasury Department, gone
| on discounting upon it, or loaning it out, disregarding the
peiiod when they would be culled on to reimburse it, the
committee can readily perceive that, when that order ar
med, they would be lound not only deficient in prepara
tion, hut in a state ol' surprise, and that the payments
would lirst embarrass tlm bank, and then lead it to press
and embarrass the commercial community.
. .u.ii mu ou-crvauons matte, ami (ho examination ol
documents during tho course of this investigation, tho
committee have strong reason to apprehend that tho course
pursued hy tho bank has hcon upon this latter principle.
If so, the bank has incurred a high responsibility.
The committee believing the subject ul the late post
poneinctit ol a portion ol the 3 per cent, stocks, intended,
as they understood, to have been paid on the 1st of July
by the Government, to he w ithin the province of their in*
quiric-; und believing, also, that it had a strong comicclion
with tho present state and situation of the affairs of the
li.mk, ami lor the purpose of enabling them to form a cor
reet and true opinion upon that subject, they made a call
upon the I resident ol tho hank for tho correspondence in
relation to the postponement of that payment in the follow
imr words: ill you please give a copy of the corres
pondence connected with your application in March last,
requesting a suspension by the Government ol the pay
ment ol a portion of its debt intended to have been made
on the 1st July next, or a statement of the arrangement
made in relation to that subject.” Which correspondence
was communicated hy the President ol the bank, with the
billowing remarks: “I have tnadu noapplication to the Go
vernment, nor have I requested any suspension of the
payment ot any portion of the public debt.”
“ 1 lie inquiry, I suppose, relates t« this circumstance,
received a letter from the acting Secretary of the Trea
sury, dated tho 2 tilt March, 1832, informing me that Go
vernment was about to issue a notice on the 1st ol April,
ol (heir intention to pay, on the 1st of July next, one-half
of the three per cent, stock, ami to do it by paying to each
sloe .{-holder one hall of the amount of his certificate.’
lie added,
ll any o ijoclion occurs to you cither as to the amount
or mode ol payment, 1 will thank you to suggest it.’
I lilts invited by the Government to a communication
marked 'confidential,’ to give my opinions on a measure
contemplated by the Government, I tell it my duty to ex
press my views ol its probable operation; in my reply,
therefore, dated 29tli of March, I stated, “that fco far in
the hank is concerned no objection occurs to me. it hointr
smm icm mai me uuvemnicnt lias the necessary amount
of funds in the hank to make the contemplated payments.”
I then proceeded to observe, that in the: picscnt situation
ot (lie commercial community, and with a very large
amount of revenue, (amounting to nine millions,) to be
paid before the 1st ot July, the debtors of the Government
would require all the forbearance, and all the aid that
could be given them; and that the payment proposed hy
creating a demand lor the remittance of several millions
ol dollars to Ku rope.in stock-holders, would tend to dimin
ish the usual facilities afforded to the debtors of the Govern
ment and might endanger tho punctual payment. For
this reason I thought it for the interest ul the Government
to postpone the payment till the . Ixt quarter. * I further
stated,.that the plan of paying to each stockholder only one
hall of liis loan, would not he so acceptable as it his whole
loin were repaid at once.
Ijaiing thus performed tny duty in giving the opinion
asked, I left it, of course, to the Government to decide. On
the pari of the bank, I sought nothing; I requested noth
ing. After weighing the circumstances, the Government
wuro desirous ot adopting the measure; hut the difficulty
I Understood to he this, that the sinking fund would lose
tho quarter’s interest, from July to October, of the sum
intended to he paid in July; and that the Government did
not feel itself justified in making the postponement, un
less that interest could be saved, hut that it would he made,
provided the bank would make the sinking fund whole on
the 1st October. To this I said, that, as the hank would
have the use ot the fund during the three months, it would
consent to save the sinking luiid harmless, hy paying the
three months interest itself; and so the matter stands.
“Now, it will he seen, that the bank, in all tliis, lias had
not the least agency, except to offer its opinion, when
it w as asked, in regard to a measure proposed by the Go
vernment; and then to offer its aid in cairyiii‘r that mea
sure into operation.” °
ch the
Ilai -
■ 1 >t
.>•, ui\ . but. the contrary, the) believe that such is
tie- situation oi the > ink now . u I such will be the de
1“ o .. !. ,v,|, J.r . .11 « , ,.. ,li.u n mi., .. -
quire me aid of all the accumulated collections for the Go
vernment, to sustain itself. Tho »” umiltcc are fully of
opinion, that though the hank neitner “sought” for, nor
“requested,” a postponement of the payment hy the Go
vernment, as stated in the declaration of the President;
yet if such postponement had not been made, the hank
would not, on the 1-d of July, have possessed the ability to
have met the demand, without causing a scene of great
distress in the commercial community.
1 he committee arc unable to discover in what manner
the hank could aflord aid to the Government, in carrying
into effect the measure they proposed, which the President
of the bank, in his remarks, speaks of bavin* proffered to
them. All that the Government could ask of the hank on
1st of July, or at any other time, would he, to pay over to
them the amount it had collected for their account, when
they wished to employ it—the same as a principal would
call upon his agent to pay to him moneys which he had col
lected lor his benefit.
By document marked No. 39, it would appear, that on
on flic 13th day of March last, the bank was aware or the
intention of the Government to payoff during the year a
great portion of die 3 per cent, stocks; and the subject of
making an arrangement with tint holders, was on that day,
referred by a resolution of the hoard as follows:
llcsuhteil, J hat the subject of die communication just
made by the President, he referred to the committee of
exchange, with authority to make on behalf of the hank,
whatever arrangements with the holders of the 3 percent,
stock of the United States, as may, in their opinion, best
promote the convenience of the public, and the interests
of (bis institution.
'H»is proceeding on the part of the hoard, tienrh/ two
weeks before they were officially informed of the intention
by lb** government to make the proposed payment on the
the 1st of July, demonstrates folly to the minds of the
committee, an acknowledgment on the part of the adminis
tration of the bank, of its inability to meet the demands
which the contemplated payments of the government 3
percents would bring upon it, without producing the dis
tress before alluded to.
In a letter to the Secretary or the Treasury, from the
IV-.sidcnt of the hank,dated the 29th March, 1832, marked
INo. 10, is the following:
“Owing to a variety of causes, hut mainly to the great
amount of duties payable for the last few mouths, there has
been a pressure upon the mercantile classes, who have
been obliged to make very great efforts to comply with
their engagements to the government. That pressure still
continues, and it may he prolonged by the same cause—
the amount of duties still payable during the next three
month*. ini* fflateof things nee in to recommend all the
forbearance and indulgence to the debtors which can he.
safely conceded. The inconvenience, then, of the pro
posed measure is, that the repayment of six or seven mil
lions of dollars, more than half of which is held in Kurope
may create a demand for the remittance ol these funds,
which would operate injuriously on the community, and
by abridging the faciliics which the debtors of the govern
ment are in the habit of receiving from the bank, may
endanger (he punctual payment of the revenue, as the
i hank would necessarily he obliged to commence early its
j pi rpai itions for the reimbursement of so large an nmount
j of public debt.
“My impression, therefore, is that, with a view (o the safe
| a'"1 punctual payment ol the public revenue, (lie govern
, incut would be benefitted by postponing the proposed pay
ment ot the public debt to another quarter, by which time
the country w ill sustain less inconvenience from demands
j on foreign account.”
The committee arc obliged to dissent from the views r i
pressed by the president in the foregoing extract.— 'flic
committee cannot believe that the pressure which has, and
; which continues to exist since October last, is attributable
mainly “to the qreat nmount of duties jun/ahlc Jor the
Inst ft ir months.'' The committee believe the operations
*he Hank of the United States in Philadelphia, and the
| offices of Baltimore, New York, arm .fasten, (the fottrprtn
clpal places where bonds are payable,) during the last
, quarter, furniih evidence to the contrary. By a reference
! 10 •I"’ weekly statements of the Hank of the United Stales,
, the offices at Baltimore, New York, and Boston, from Ju
ly, 1831, to April, 1832, marked No. 8fl, it will he seen,
ih.il the amount of reductions on discounts and loans at
] those four largest commercial cities, during the last quar
j ter, taking the maximum amount in January last, and end
ing or, the 1st of April, is $2,409,489 7fl,or in round num
hers, two millions and a half of dollars ; this reduction hv
; the hank and its branches, lias probably compelled a simi
lar reduction on the part of the State institutions, iri pro
portion to the amount of their loans in each of tho«e pla
ces. fn this, and in this alone, the committee are fully
persuaded is to he found Hie true soercl of the pressure
which has oxtatod, am! Jock arNI exist, opcratlug upon (ho
commercial comm unity.
Tli.it this pressure will continue for some tinio to come,
(lie committee tear; for the expansion has been so ('real,
i that the contraction which is now in operation cannot, in
| the opinion of the committee, be effectually checked or
, controlled, without a necessary curtailment of discounts.
It the hank possessed the ability to sustain itself without
curtailing its discounts, the revenue falling due the pre
I "«nt quarter, might bo collected, and facilities granted du
i the time upon the principle before pointed out to the
I commercial community, and disbursed again by the Go*
venunent, without any inconvenience being caused by
the operation. Hut such ability, the committee are well
satisfied the bank docs not possess, nor can it at present
command. Besides the diminished means of the bank, pre
viously' alluded to. through tho loss of live millions of its
specie, its torcign exchange and oilier resources, one of the
great difficulties under which it now labors, in paying the
public debt, is its being compelled to receive the public
revenue, in the Atlantic ports, in a currency to wit,branch
notes and drafts of the western offices not promptly convcrti
** to i,l,l,''° debt >» current money.
ithout a large abridgement of the usual accommoda
tions which will, of course, greatly distress the communi
ty, the committee are under the strongest conviction that
it will he little better able to meet the pressure the Go
vernnient payments will cause, on the 1st of October tli in
they would have been on the 1st of July. The words of
Mr. Craw lord, in a letter dated 6th of April, 1819, to the
President ot the bank, the committee consider peculiarly
appi opi iate here to introduce. " Palliations may prolong
ibe existing embarrassments, and by exciting the hopes
and fears ol the community, aggravate the existing evils,
hut cannot influence the final result.”
In another letter, dated the 9th of April, ISiD.lo the same
gentleman, he says: “Hanks, in older to secure specie pay.
inoiils, must approximate their circulation and individual
deposites, to a sum justly proportioned to tho amount of
specie in their vaults. Any t! i:ig short of this, will keep
them in a precarious state, and postpone the period when
tanking operations can he safely prosecuted upon ordinary
pi inciplcs.
W hen an institution With investments amounting to 75
millions, commanding the torcign and domestic exchange
ot the country, monopolizing the Government deposites,
cannot, at the moment, when wo are exporting our annual
crop of cotton, amounting, by tho udmKdsn of the Presi
dent ot the Hank, to 20 millions of dollars, (hut really near
30.) transfer » few millions of its funds abroad, to pay the
Government debt without einbarrar-ing its operations, and
seriously distressing trailers, is there not reason to believe
that its business lias been too much and too rapidly extend*
In the late letter of the president ot the hank to the Se
cretary of the Treasury, of the 29th March last, there is
the following postscript: “As an illustration ot the effect of
the measures I have suggested, I may mention, that in
the month of February last, the collector ot New York,
w ith a laudable anxiety to protect the public re\\*nuc, ap
plied to the hank to authori/.c an extension of loans in that
city, in order to assist the debtors of the government.—This
was promptly done; this I sMfenld desire to do again, as
tlie payment to the government during the next quarter,
will be very large.”
Upon a reference to tlie weekly statement of the office
at New York, from July, 1831. to April. 1932. m tore al
luded to, the committee Imd no aggregate increase ol loans;
but, on the contrary, they find that there has been a re
duction in tlie amount, viz: tlie amount on the 29th Feb
ruary being less (him on the 2d, and tlie 8th days of the
same month, and $1-10,000 lesson the 23th day of March,
than on the 20th ol February previous.
By examining the statement No. 86, it will he seen that
tlu total amount of discounts at the New York branch, be
tween tlie -1th ol October, 1831, and the 28th of March
1832, were actually diminished $168, 447 17, while during
the same time, the bonds paid at that port, amounted to bc
tween nine and ten millions of dollars.
, ^ he committee in order to ascertain the precise manner
in which the annual election of directors has been con
ducted, called at an early period of the investigation, for
the following document, viz: “A statement of the num
ber ol votes given at each annual election of directors
since that of 1923, the whole number of votes given, the
number given in person, and the number given by proxy,
and in the latter case, by whom;” which statement was
not furnished the committee, but the statement, marked
No. 41, was furnished. This shows the whole number of
proxies to be 7,633, of which the president holds, exclu
sively, 1,436, and as a trustee, in conjunction with othei-s,
1,684, which gives him, without intending to impugn the
exercise ol the power, decidedly, a preponderating control
in the election ol directors, a power which was never con
templated by the charter; so far from it, that instru
ment, as well as subsequent laws passed by Congress,
have studiously endeavored to prevent the very mischief
which this accumulation of proxies in tlie hands of
one person is most obviously calculated to produce.
i ue cnaruT has limited the votes of the largest stockhold
er, no matter what may be tlie number ol shares, to the
number of thirty, clearly tvitlt a view to prevent the whole
allairspt the hank from falling into the I'tmN ,»f a few in
dividuals. It is too |ioivp.i f"l an engine to he controlled by
one man alone, kns this must be apparent to the good sense
of everyone; yet, notwithstanding this restriction, by the
use ot proxies, individuals, with little or no immediate in
terest, can perform what those possessing a direct and
deep interest are prohibited from doing. Connected with
this subject, there is one which ought not to go unnotinul.
* *•“ eli-u-ter poaii1 -b uniuiiwi twenly-tivo directors; for
! some years pa-t, as appears by the list of directors, marked
j ‘No- **2, there have been but twenty-four: the president
ol the bank holding the appointment from the Government
| and the stockholders at the same lime.
1 he committee cannot pass over mentioning the subject
of the sums paid for printing. By reference to a statement
furnished the Senate, in March last, it will he seen, that,
fionrihe period of the establishment of the Bank, after the
year 1H17, up to the year 1829, the sum paid for printing,
in any one year, has not exceeded $867 19; anil in some
yen-, it has been reduced as low as $121 and $165 50.
But in 1830, the amount is swelled to the sum of $6,762 54.
and, in 1831, to $9,187 91. In the year 1817, the year in
which the Bank was established and went into operation,
and consequently a greater expense was incurred, the ex
pense for printing was $3,220 15.
\\ liat circumstances occurred or existed during the
years 1830 and Ml, to require such an unusual increase in
this branch of expense over the preceding years, in the
; ordinary course ot its business, the committee have been
unable to discover, though they called for (he accounts un
der this head of expenditure, hut have not yet received
them. In the same document is contained the sums paid
i? * * ttornoysi,” annually, since the establishment of the
i l> ink. I Ins subject, on mg to thoir limited time, the com
mittee were unable to investigate. Sufficient, however,
eatne to their knowledge to justify the belief that the sums
returned, as having been paid to “Attorneys,” embrace
only what was paid to them in that distinct character;
that the sums paid to solicitors and counsellors lor the
Bank, are not in the amount given.
| The committee addressed the following enquiry to the
1 President o. the bank, believing that it involved a fact
; which will he useful to Congress in its future legislation on
j the subjert of its charter:
"Did Mr. Ellsworth, or any one else of the State of Con
i ncclicut, as assessors of taxes of that State, write to request
i you to give him a list ot stockholder- belonging to that State,
lor the purpose of taxing them, according to a law therc
| ot?”
The President replied: “In December, 1829, Henry L.
i Ellsworth of 11 art lord, in Connecticut, addressed a letter
to me, requesting to he furnished with a li«t of stockholders
of the hank residing in Connecticut, for (lie purpose of tax
ing the slock. I lie request was declined, tor reasons
| which will appear in the correspondence hereunto annex
ed;” to which the committee refer,.marked No. 43.
I he committee, in calling lor various statements, have
collected a number of useful documents, not referable to
any partictllir head, hut as containing a mass of useful in
| formation; they present them to the I louse, subject to their
future order, and, it found necessary, to he appended to
this report, when it, together with tho papers to which it
refers, shall he published.
i lie majority 01 me committee feel Authorised to state
tlint they have not been able (o give even (lie parent bank
that investigation which its extensive operations deserve,
much less the branches—in some of which there have
been subjects ol complaint, hut which they have been
compelled to abandon for the want of time.
I he committee that Investigated the affairs of fhc hank
in when it had been hut two years in operation, with
its business much less extended than at present, were on*
j engaged, as it would seem from tlie records of that day,
: Irani the <*lOth of November to the Ififh ol January, before,
they reported,and (hen they had not made as thorough an
examination as the transactions of the institution seemed
to require. At the present lime, with a greatly enlarged
1 business of sixteen year’s accumulation, and twenty-five
branches whose operation# have been charged w ith signal
| instances of irregularity, the hank requires a much more
) minute examination (bun the committee have been able to
, K've if
f here have been many statements called for. which the
business of the batik and the shortness of (he time allow
ed for the investigation, would not admit to he furnished.
I he committee were particularly desirous o( ascertaining
how far the payment of the public debt, and throughout
the whole term of the existence of the hank, affected its
operations, and railed lor all I lie* resolutions and correspon
dence relating to that subject since 1SI7, but have only
' rece ived sueii as related to the three per cent, loan, and
j the circular of the 7th of October last.
On the subject of specie payments, domestic and fo
reign exchange, investments in public debt by the hank,
in 1821 and 1823, rind its ability to make loans to the fio
vernment—the influence of the operations of the hank
upon trade—on the increase of the paper circulation of the
bank—its agency in diminishing or enlarging tbo clrctila
I tion of local hanks, and that the means of permanently re
gulating our general circulation, so a# to prevent its inju
rious effects upon the trade and currency of the country;
alt matters of vital importance in the re-organi7.ation of
the bank; concerning which, the committee submitted a
number of luquhle* to (ho President of th« Bank. who
has not been able, from (he press of other indispensable du
Uea to answer; and which queries are appended to this re
port. I lie investigation*, however, which have been
made, imperfect a* they were, hilly justify the committee
leie ?1"8 ' ***1 '*l>ank ouK*1* ,lo,» at 1'ieaeut, to be re-clur
It i* obvious, fiom the stuteiiicnts submitted, and the
i correspondence with the lrei.su.y coneerning the publ.o
debt and .he fluctuations of the revenue of Government,
that these have hitherto essentially affected the general
{ circulation and operations ol the Hunk of the U. Slates.
U would, therefore, seem to your Committee to be most
judicious not to act upon the question of re-chartering
that institution, or ol chartering any other national bank,
until the public debt shall have been paid ofl, and tl,c pub
lie revenue shall been adjusted to itio measure ol our le
dcral expenditures.
Washington, May 7.
Congressional Analysis.—The Senate did not sit 0n
Saturday.
Ill the House oj Representatives, on motion of Mr.
‘ «*• ,"11 f'011* fhe Senate, authorizing (ho Secretary
ot the 1 re.isury to settle the accounts between the United
states and the Farmers’ and Mechanics’ Bunk of Indian
iij, was referred to the Committee on the Judiciary.
COU.ECTOU or W1SCASSET.
Alter some preliminary discussion between Mr. Irvin
and Mr. 8.ado, who was entitled to the floor on this sub
ject, upon a motion ol Mr. S. to po tponc the further dU
e.isMon till 1 uesday. which was eventually withdrawn.
Mi . 8. commenced hi* speech against the report of the Ju
• iciary Committee, which ho continued until tho expire
tton ot the hour allotted to morning business.
internal improvements >or 1S32.
Mr. Sutherland moved to suspend the rule appropriating
i 'ii 1 "*y,,,lvale lo1' *h« purpose of taking up tho
bill making appropriations for certain Internal Improve
ment* lor 1S31, which had been heretofore reported from
the Committee ol tho Whole on the state of the Union,
winch was carried. Several of the amendments, made in
t ommiMee having been concurred in, the clause appropri
aiing «io,8(.() lor the purpose of paying for certain repairs,
made to the Cumberland Itoud,. by L. W. Stockton, was
taken up; and, alter a short discussion in which Messrs.
Crawford, .Sutherland, Mercer, Arclicr,Stcwarl,andCoul
<*r, took purl, was carried. The appropriation for Oera
cock inlet, was di-eussed by Messrs. Hall, and Speight: and
"i'll ,,OC8 -An anicndinenl was inov
V'l I lall, for tfie improvement of the harbor ot
" aslungton, .North Carolina, which was lost. The clause
appropriating $50,000 for the improvement of the naviga
tion ol the Ohio and Mississippi rivers, as amended in
Committee, was taken up. Mr. Sevier moved to amend
it by adding $10;000 for the improvement of the naviga
tion ol the Arkansas rivor, w hich was adopted. Mr. Ash
ley moved to amend tin clause by extending its provisions
np the Missouri and Mississippi rivers above their con
11 iicnce, which was carried. Mr. Denny moved lo in
crease and extend tho appropriation up the Monongahela
rtver to Brownsville, which, after a discussion between
Messrs. Denny, Dewart and Bell, was lost. Mr. Wliito
ot Louisiana, then moved an amendment extending the
piovi'ioiis ot the act ol 1821, for Itic improvement of tUo
livers, to the mouth of the latter,.
som.. Un.,"i:i',“7lv. «■*« *,iU’* which liu advocated at
some length, and winch w as ailopie.j. The amendment
as amended, was then carried, ayes68, nocs 57. Sever
“I ame,,ll|,ieiits proposed in Committee lor the construc
tiou ol roads wore concurred in. Mr. Sevier moved:
an am. n h.K-.it appropriating $20,000 for the construction
0 ccitain roads in Arkansas Territory, which was agreed
r!i ? n«ovcd an amendment for the continua
non ol tho Cumberland Hoad, which, alter a discussion, in
which Messrs. Ashley, Vance, Duncan, McDuffie, Mer
cer, and I r\ iu look part, was lost, ayes 55, noes 60. Mr.
Vance then moved an amendment appropriating .-5(10,000
lor the purchase of a l oll Bridge on the Cumberland Road,
across the Sciota river at Columbus, which was lost. Mr.
belcher moved an amendment appropriating $50,000 for
tlie improvement ol Cumberland river, which, alter a dis
cussion, m which Messrs. Letcher, Ingersoll, Blair of
enncssoc, Mercer, and Lyon took part-, was lost, ayes 63,
I10!; - 1 1 * 1 crccr ibcn moved an amendment teUtivo
to the improvement ol the navigation or Savannah river, on
wlm h, bom the lateness of the hour, tho question was not
taken. Mr. ( .( . Johnston, moved a re consideration ol the
vote on Friday, rejecUng the bill authorizing nsubscrip
iion on thc part ol the United Slates, to a portion of (he
stock of the Alexandria Canal Company, which, on motioa
01 Mi. J. 8. Barbour, was postponed to Friday next. The
House (hen adjourned.— Globe.
. ., _ , Washingtout; May 8.
Jn the Senate yesterday, Mr. Foot laid on the table a
resolution, requesting the President to cause to be prepar
c<l and laid before the Senate, at the next session, a plan
lor the new organization and simplification of the Treasu
ry Department, cinbracng a reduction of officers, &c.
I lie resolution laid on the table on Friday by Mr. Smith,
calling on the Secretary of the Treasury to furnish a state
ment of the amount of duties which would be repealed by
the projet ol a tariff submitted by the Department; and
alsoot the amount repealed by the hill reported hy iho
< ommittec on Manufactures, was taken up and modified
on motion ot Mr. Ilayne, and with the assent of the mo
\ei, by introducing a provision that the statement should
comprise the amount of duties now annually collected; and
also the amount which would be rcncata/l l,v the ,.rnvis
lo.., „« hoiti the bills reported hv the ('ommittec on Manu
factures 'I ho resolution offered by M r. Benton on Friday
concerning Hie printing of extra copies of the Bank Re-”
po.t, and ol the report and documents, next came up. Ho
moved lor the printing of G.000 extra copies ol the report
Init (lie motion was negatived, Avcs, 16, Noes If)”
Mr. Benton then moved for 3,000, but before the question
was taken, on motion of Mr. Ewing, tho rcsolulion w i
ordered to lie on the table, Ayes 21, Noes 15. The bill*
to atiiboiizc the President of the United States to take tho
necessary steps for ascertaining the Northern Boundary of
0 no-for the relict of Hansom Mix—and for the relief of
Christopher Brookes, were read a third time mid passed.
On motion of Mr. King, the Committee on the Public
Bands were discharged from the further consideration of
the petition of.the trustees ot (lie Mississippi College The
bill for the relict of Stephen Plensantson was mad a third
time and passed, Yeas 21, Nays It. Mr. Buggies offered
a resolution, which was taken up and agreed lo, on iho
subject of a settlement ol ihe claims of the Wooster Bank
01 Ohio. Ihe bills for the relief of Prosper Marigny to
extend the patent of Jethro \N ood; and to remove the land
Olhco from mount Salus, Mississippi, to such place as llu>
President may direct; and the Land Office in Franklin to
l ayette county, Missouri; were severally read a third"
time and passed. The Senate then resumed the unfinish
ed business ol 1‘ riday, being the bill to construct certain
post offices and to discontinue others. Mr. Holmes then
concluded Ids observations in favor of the amendment of
liTcd by Mr. Bibb, to abolish the postage on newspapers
alffr the 1st July next, and the discussion continued till
tlur Senate adjourned.
Ill th.- House of Representatives, after the presentation
and reference of a few petitions—Mr. Cnmbrcleng report
ed a bill fiom Ihe ( ommittec,on Commerce making an ap
propriation lor a marine hospital at Portland, in Maine,
which was read twice and referred; also a bill authorizing
(he Secretary ol tho I rcusury to permit a wharf to he erect
ed at Stratlord Point, Connecticut, which was read twice
and ordered to he engrossed for a third reading to-morrow.
Mr. Everett presented a counter report fiom the minori
ty on the committee to whom the Apportionment bill, as
amended by the Senate, had been referred, accompanied
with an amendment; which were committed and ordered
i to he printed.
ivir. Ashley submitted a resolution directing <he Com
mitteo on Indian Adairs to inquire into the expediency of
j making an appropriation for the purpose ol procuring the
i extinguishment ol the Indian title to landstwithiii the
| Slates of Missouri and Illinois; w hich rvas agreed to.
I he resolution of Air. Wilde, respecting bullion, and the
making of it a legal lender, was, alter a lew brief remarks,
agreed to withont a division. [On this resolution, Mr. Ir
vin had previously demanded the Yeas and Nays, hut
which lie withdrew.]
I he resolution heretofore submitted by Mr. Drayton, to
authorize the Secretary ol War to have a revision ol tho
laws on military affairs, was also agreed to.
I he House proceeded to the consideration of a Kcsolii
tiou moved some days ago by Mr. Kveictt of Vermont,
I calling lor iufoirnation ol the prices paid for certain print
iug lor the Post Office Department, now, and formerly,
! under contract with persons in Boston and ■ Jfiium.i.i
upon which sonic conversation took place; when
Mr. Whittlesey of Ohio, rose, and prefacing Ins motion
by an appeal to the ready and unrestrained course of in
vestigation permitted to the Committee upon (lie Hank of
the I nited States, nnd the expre-sed determination ofono
I *•* members to oppose no inquiry proposed fcy jt, «ni,|
that ho had long been of opinion that a general inquiry
into the administration and present condition of tho Post
j Omce Dt p.u *luelit was expedient, and lie hoped no objec*
lion would he made to the motion he was now about to
submit. A her some furtfic r prefatory remarks, lie moved
to strike out the whole ol the motion now before the House,
| and insert a proposition for tho nppoinlmi lit ol a Commit
i "'c to examine the present condition of the Post Office
Department, tic. Sic. with power to send for persons and
papers.
Mr. Crawford, of Pennsylvania, in a shoit speech pro
tested against instituting Well an inquiry as this, at this
period ol I lie session, and at this particular time, without
•"iv specific allegation of malpractice. The appointment
| ol the proposed Committee, however intended, would, he
j argued, operate as a direct reflection on one ol the best of
j fleers of the government.
Mr. Johnson, ol Kentucky then made a few observations
■ against the amendment. He considered it out of the qnes
<lon to begin this fresh business now, when so much busi
ness of vast importance was already upon the table. If Mr.
W . would agree to waive his proposition until the earliest
(lay in next session, and then make it, Mr. J. pledged him
self that he would vote for it, nnd would act as the gentle
i uihii’s lieutenant, (« make the fullest examination that he
i might desire.
At this stage of the discussion, the hour of 12, appointed
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