MAY 19, 1834.]

Ontario county (N. Y.) Memorial.

1

[H. OF R.

The bank, by the terms of its charter, was entitled to as well as the bank; for one-fifth of the profits thus taken the public deposites, during the whole period of its legal from the bank would have belonged to them; but the existence, unless their safety was endangered. The bank measure could never render insolvent and destroy the was also, in equity and justice, entitled to the deposites, bank. As a punishment, it was inappropriate and imby reason of the large sum of money she paid, and the proper. Punishment is more appropriate to courts of valuable services she rendered the Government. They justice; and the mole in which such punishment for a were to begin and end with the charter and had it been violation of duty coube rendered effectual, was pointed intended they should have been removed at some period out by the charter. That remedy is, in my opinion, before the end of the charter, and withouty special un- more expedient, more consistent, more magnanimous. foreseen cause, would not such time have been fixed and Yet I do not believe the bank has done any act which is a ascertained by the charter? violation of its charter, or that justifies a removal of the Many millions, during the first years of the existence of deposites. the bank, were, from imperious necessity, deposited with Again: I consider the removal of the deposites was a the State banks, by the consent of the Bank of the United measure uncalled for, unwise, ill-advised; ruinous to conStates. On the 10th of January, 1817, more than eleven fidence, to credit, to agricultural, to manufacturing, and million dollars were deposited in State banks, and the de-commercial industry and enterprise. That it was unwise, posites were much increased that year, no considerable is shown by contrasting its effects, as predicted by the portion of which was deposited in the Bank of the United President in his famous message of the 18th of SeptemStates. Between the 1st of January, 1818, and the 13th ber last, with those verified by the experience of a few of February, 1822, in thirteen banks in Ohio, Illinois, short months. He believed there would not be any scarKentucky, Indiana, Missouri, and Mississippi, $4,958,997 city of money occasioned by the removal of the depos of the public revenue had been deposited. How much, ites. He said, "the funds of the Government will not during the same period, in other State banks, and how be annihilated by being transferred; they will immedimuch after that period, I have not been able to ascertain; ately be issued for the benefit of trade; and, if the bank but it was not until 1823 or 1824 that the bank realized of the United States curtails its loans, the State banks, all the advantages from the deposites intended by the strengthened by the public deposites, will extend theirs. charter. What comes in through one bank goes out through others, So much had the bank suffered by aiding the Govern- and the equilibrium will be restored. There would be ment to change their "special deposites" into current no derangement of trade or of business. Now try the wis money, the State banks to resume specie payments, when, dom of the measure by testing the truth of these reas the late Secretary Crawford said, "the State banks marks. Has there been no unusual embarrassment in were generally struggling for existence," and by being trade or business? Have the State banks, strengthened deprived of most of the deposites, that, to the 9th of July, by the public deposites, extended their loans and supplied 1819, it had not been enabled to realize more than two the country with a currency equal to that of the paper and a half per cent., and at that time "was unable to of the Bank of the United States. The safety-fund banks make any dividend." If the Secretary had any power to in New York had, between the 1st of January and the say the deposites should be removed two and a half years 4th of March last, reduced their circulation more than before the expiration of the charter, there was no limita- three millions of dollars. And to save those banks from tion to his power, and might have as well said six years is entire ruin, as must have been supposed, and supply the necessary; and then the bank would have been deprived place of the capital withdrawn, and the merchants with of the benefits of the deposites at the commencement and funds to purchase the products of the State and country, at the close of its charter for twelve years out of twenty. the governor, in a special message to the Legislature, reBut was there any necessity for the removal of the depos- commended the creation of a State stock of four or five ites before the termination of the charter? Could not all millions, to be loaned to the banks at five per cent., which the arrangements with State banks to receive the depos- would be loaned by the banks to the citizens of the State ites have been as well made in 1836 as in 1833? And at seven per cent., the legal rate of interest in the State. would it not have been much better for the public to have And, in pursuance of such recommendation, the Legisla had them made in 1836 than in 1833? The bank, know-ture passed a law creating a State stock of six millions, ing the period of its termination, would have been calling four millions of which was to be loaned to the banks at in and curtailing its discounts. Commercial and business five per cent. per annum. The banks could not help the men generally would have been closing their business people, and the people were solemnly called on to mortwith the bank, and opened accounts with and obtained ac-gage their farms and to pledge their entire fortunes, to commodations from the State banks. The bank would several millions, to sustain those institutions. And surely have been powerless. The State banks would not have the governor and Legislature, the friends of the adminisdreaded its rivalry or powers; they would have discounted tration, could not have wished to create a panic, or any liberally; the issue and the circulation of bills would not fictitious distress. Stern necessity compelled them to have ceased. There would not have been a stagnation admit the scarcity and the real distress that pervaded the and an almost entire suspension of business, a depreciation whole State. in the value of all the products of labor and of all personal and real estate. The manufacturers, the mechanics, the merchants, would not have been compelled to dismiss their laborers; the poor would not have been seen crowding the streets, asking for employment, and asking for bread.

The banks, in every State in the Union, of the whole country, have, since the first day of December last, reduced their loans and circulation to the amount, in the whole, of many millions. This is a proper illustration of the wisdom of the measure of the removal of the depos ites in all its parts.

The bank was entitled to the deposites, if a safe de- The public newspapers, private letters, memorials from pository, during the existence of the charter, and their tens and hundreds of thousands of citizens, from almost removal was a violation of its rights, and, I submit, an act every part of the Union, announce to us in strong, bold, of injustice that should not be tolerated by a people, wise, and energetic language, the distress that pervades the magnanimous, and just. The removal of the deposites is land; that confidence and credit, the life of a commercial not calculated to destroy the bank, if that was desirable; republic, are destroyed; that the spindle, the shuttle, and and, as a punishment, it almost entirely fails. It may cur- the loom have ceased to move; that tens of thousands of tail its discounts, and, consequently, diminish its profits; operatives are thrown out of employ, and are without the and even that is a blow that must strike the United States means of support; that millions of manufacturing capital

H. OF R.]

Ontario county (N. Y.) Memorial.

[MAY 19, 1834.

are unproductive; that millions of the circulating medium tain the losses arising from the stagnation of business and of our country are withdrawn from circulation; that money the pressure of the present times. The manufacturers, cannot be had; that property has a mere nominal value; the mechanics, and even the agriculturists, could more that there are few sales; that debts cannot be paid; that easily have paid twenty per cent. And let the men, let bankruptcies in many places overspread the land with the electors of this vast country, inquire and say whether gloom; that there is a general depreciation in the value there is any object to be attained by the late measures of lands and all marketable products; that the axe and of the Government, which calls for the payment of such the hammer are now hardly heard in our lately happy an enormous tax, for the endurance of such immense priand flourishing villages and cities, and in our shipyards; vations and losses, and for such sacrifice of their estates. that many of the vessels that wafted the star-spangled And again, I ask, why are the people called upon to banner over every sea, and spread their sails to every submit to such losses, to endure such an intensity of sufbreeze, freighted with the rich fabrics and products offering? Is it to change the whole course of the business of this and other countries, are dismantled; that agriculture this commercial country? Is it to banish all paper money, is languishing, and commerce is expiring; the retrospec-all bank paper? I will only say that we learn from his tion of the last five months is gloomy, and the anticipatory, the united testimony of all business and commercial tions of the future are alarming. men, and our own experience, that banks have proved By the removal of the deposites, the Government has highly useful in all the states and kingdoms in which they lost one-fifth of the avails of the interest of the discounts have been established, and are peculiarly adapted to proof at least ten millions for two and a half years, founded mote the interests of a commercial country like ours. upon the deposites, (as she gets no interest on deposites! Again: is it to banish all credit? Yes; the President from the State banks,) equal to $140,000 a year, and says, "all who do business on a borrowed capital ought about ten per cent. on $7,000,000 of the capital stock of to break." Banish all credit, is a part of his grand exsaid bank, equal to $700,000.

periment upon the rights, the property, and, 1 may add, the happiness of his fellow-citizens. Our worthy Presi dent seems to have adopted the ancient Persian maxim, that the first of all vices was that of owing money. He seems to have a great dread of the borrower. At the very thought of such a being he is alarmed, and proclaims that the republic is in danger, and is about to be ruined and undone. He does not consider that he is a borrower; that his fame, his honors, were lent him by his country, to be refunded and paid for in deeds of usefulness, that render a whole nation prosperous and happy. How hard hearted must he be, to wish to deprive the poor debtor of much of his importance, and of the rich man's prayers! For the debtor is sure to have the good wishes and the prayers of his rich creditor, for health, length of days, Granting the bank to be guilty, how small a punish- and increase in wealth. The debtor, when surrounded ment to the bank, what slight loss, what slight suffering by squadrons of creditors, is an important personage; he to that institution, compared with the hundreds of mil-may then assume airs, and his smiles to each are valued ss lions lost, and the intensity of suffering endured by a ready money. They are his flatterers and parasites, and whole people! Was ever such slight punishment of an salute him with good morrow, and all kindly greetings offender visited with such tremendous retributions on Besides, the relation of debtor and creditor teaches, in the whole people who inflicted the punishment? Were the most expeditious and easy manner, all the mysteries ever means so entirely disproportioned to the measure to of practical arithmetic. be accomplished? And all this, too, when, if guilty, the existence of the bank could have been speedily terminated by a scire facias, to be issued by order of the President, if he believed it guilty.

And why is the Government called on to suffer such losses? And why are the people of this country called upon to endure so much suffering? Is it to prevent the recharter of the Bank of the United States? The removal of the deposites has no necessary connexion with the recharter of that institution. So much pain, so much suffering by the body politic, is calculated to insure the recharter of the bank. Was it to destroy that institution? It must excite the sympathies of the people, react upon the authors of the measure, build up and re-establish the bank. Was it to punish the bank for its misconduct for the violation of its charter, by depriving it of four-fifths of the avails of the discounts upon the deposites for the short space of two and a half years?

But our worthy President would have this a world without debts. What a strange world it would then be-a world of disorder. The planets would cease to lend their influences to each other; the rays of Venus would be ob But what has the bank done? What part of the con- scured by darkness, and the sun would no longer warm stitution and the laws has she abrogated? What piles of and illuminate the earth; the hope of the husbandman injustice has she reared? What State institutions has she would fail; all benevolence, kindly feelings, and good destroyed, or attempted to destroy? What election has offices would be banished, and men would become mon she ever controlled? What political officer has she ever sters, a terror to each other. This world may be likened elected? What channels of trade, of commerce, and of to man; he is an epitome of the great world. And, wealth, has she ever obstructed? What blight has she upon the system of our worthy President, "the head will ever brought on a nation's credit, a nation's prosperity, not lend the sight of his eyes to guide the feet and hands; and a nation's fame? With what cloud bas she dimmed the bright halo of her country's glory, or the glory of her country's patriots, her country's heroes? I answer, none. The country was never more prosperous than during the ten years previous to October last, nor advancing with more firm and rapid steps to wealth, to arts, to literature, and science, and all those advantages that strengthen, elevate, dignify, and adorn an empire. But, oh! what a change has a few short months produced! And what gloomy prospects does the future present!

the legs will refuse to bear up the body; the hands will leave off working any more for the rest of the members; the heart will be weary of its continual motion for the beating of the pulse, and will no longer lend its assist ance.' In short, in such a world, owing nothing, lending nothing, borrowing nothing, we should see a more datigerous conspiracy than that which Æsop exposed in his apologue.

Such would be the world which the President desires. How different from this world of ours, where all are Had the people been annually taxed, by law, to the debtors, and all creditors; where no man is independent amount of one-tenth of all their real and personal estates, of his fellow-man; where every one is compelled to lead for any object, however necessary and useful to the na- and ask assistance; where even the savage borrows to pay tion, they would have deemed such a law oppressive and in kind, and where business men make much of their odious; yet, I submit, the great mass of the people of this profits in borrowing and lending; where even the plane country could more easily have paid such tax, than sus-tary system, and nature, through all her works, borrow

MAY 19, 1834.]

Lycoming county (Pa.) Memorials.

[H. OF R.

and pay in genial influence; where mankind have and and ordered it to be used to pay all the debts of the enjoy money, peace, love, and benevolence, and all Crown. The measure occasioned great losses in the forChristian charities; the rich, the poor, and the middling tunes of individuals, inflicted a severe wound on public classes, all ranks and conditions in life, feel a deep, a credit, impaired the trade and commerce of the Prussian lively interest in the business, thrift, and general welfare dominions, was condemned by his contemporaries, and of each other. Borrowing and lending, like the skill of has been by the historian, as highly reprehensible, as the the alchymist, changes every thing into gold. And who favorite resource of despotic sovereigns, and that it could in this world is so rich that he may not sometimes owe, "neither be defended for its honesty nor its utility." and who so poor that he may not sometimes lend? Was it to try some grand experiment? Ay-an exBanish credit! By whom, in what country, and in periment which inflicts instant pain, instant torture, upon what age, is this sentiment advanced? By the President a great people, to be constantly increasing, and yet to be of a free, commercial country, and in an enlightened endured for years to come; an experiment, which, like a period of the world; a country where indigence is en-tornado, the longer it endures, spreads wider and wider couraged by every honest means to amass wealth; and the its desolation. And now I would ask what justification low and the humble to aspire to the highest honors, and there could be for that zealous, that ardent, I had almost to become competitors for fame with the most wealthy, said that unhallowed prayer of my colleague [Mr. BEARDSthe most honorable, and the most powerful in the land. LEY,] "Perish commerce, perish credit, perish the State The President, from his admissions to various commit-institutions; give us a broken, a deranged, a worthless tees, knew his measures would injure all those who were currency;" and he might as well have added, perish a doing business upon a borrowed capital; and, in justifica-nation's prosperity, all the sources of national wealth, and tion of his conduct, founded on such knowledge, he con- a nation's renown?

demns all such, and declares "they ought to break." I leave the answer to his constituents, and to the intelAnd, sir, of what crime are they guilty? What injury ligent, free, and magnanimous people of the State we had they done to the Government that merits such both, in part, represent. But I will add, that, in my beseverity of punishment? And what member of Congress lief, no prayer was ever more grateful to the genius of would ever have presented a law to destroy and banish desolation, or followed by a more speedy and wideall credit? What Congress would ever have attempted spread devastation and ruin. Yet, notwithstanding the to pass such a law? What constitutional lawyer would great pressure on the community, and the sufferings they ever have advocated, and what court ever have sanction- endure, many are disposed to ridicule all memorials deed such law? Sir, such a law, thus approved, would tailing the sufferings of the people, and call them "dishave been the adoption of a state of barbarism by legisla- tress memorials," "panic memorials," and insist that, tive enactment and judicial sanction. It would have been although there are numerous individual cases of distress destroying, at one fell swoop, all vestiges of civilization; and bankruptcy, the people are prosperous and happy. and in the low, the humble, and the poor, all incentives I cannot well understand how private misfortunes can to industry and enterprise; all aspirations after a noble, constitute public benefits. Yet we learn, from history, an honest, and an enduring fame; all the pulsations of that the doctrine is not entirely new and original; that genius; and would in them have palsied "hearts pregnant with celestial fire," tongues that could speak well, and command the applause of senates, and hands fit for empire.

Doctor Pangloss, preceptor and oracle in the family of the noble Baron of Thunder Ton Tronckh, in Westphalia, taught "that it is impossible but that things should be as they are, for every thing is for the best in this best of all To the poor, it would forever have closed the books of possible worlds." He also thought that "private misknowledge, and effectually have prevented their ever fortunes are public benefits; and that the more private being able, in an elevated sphere, and in the exercise of misfortunes there are, the greater is the general good." wisdom and knowledge, a widely extended benevolence, He was hanged, whipped, kicked, kept tugging at the all the virtues of the heart, and all the energies of en-oar, and endured every torture, yet, "having once mainlightened and powerful minds,

"To scatter plenty o'er a smiling land,

tained that every thing went on as well as possible, in this best of all possible worlds, still maintained it, and at the same time believed nothing of it." Had that sublime philosopher lived in this country, and in these days, of this best of all possible administrations of our wise and happy Government, he would have found many followers, What a rich barwho sincerely believed his doctrines.

Yet his

And read their history in a nation's eyes." Sir, credit has not only increased the facilities for usefulness, but it has added millions to the number of the useful, and rendered countless millions prosperous, contented, and happy. A well-regulated credit has been one of the most powerful causes of the prosperity of the vest of glory he might have acquired! Poor man! he died Netherlands, of Holland, of France, of England, and of at too early a day for the maturity of his fame. this country. Banish all credit, and the poor will be-discovery, for its novelty, and his character, for persever come hewers of wood and drawers of water; mere slaves ance in his belief, will never be surpassed. to the rich; and they would be as completely confined to When Mr. DICKSON had concluded his remarks, on his the condition in which they were born, as are the slaves motion, the memorial, with the names thereto, and the of our own country, or the four orders or castes of India. resolutions, were ordered to be printed, and the memoriAnd again, I ask, why are the people called upon to sub-al laid on the table. mit to such losses? Is it to change the currency; to give us a depreciated paper currency, in payment of the debts due from the Government, and as the circulating medium Mr. ANTHONY, who had, on the last petition day, of the country? It is dangerous to attempt a change in presented memorials from Lycoming county, in favor of the currency of the country. It is like the sensitive a recharter of the Bank of the United States, and who plant; the touch of sovereignty, of the Executive, has often withered, and almost destroyed it.

LYCOMING COUNTY MEMORIALS.

had obtained leave to accompany the delivery of them by remarks on their subject-matter, now rose, and addressed the Chair as follows:

Frederick the Great, of Prussia, at the commencement of his seven years' war, which terminated in the year Mr. Speaker: Last Monday I presented to the House 1763, having first collected all the gold and silver he sundry memorials of citizens of the lower end of Lycomcould, and to increase his resources to carry on the war, ing county, Pennsylvania, in relation to the exciting subordered the gold and silver to be recoined, and debased ject which has occupied our attention, as well as that of by two-thirds alloy and one-third of the precious metals, l'our constituents, for these five months past.

H. OF R.]

Lycoming county (Pa.) Memorials.

[MAY 19, 1834.

The restoration of the deposites and the renewal of the misinformed, I have to state that forty of the names now charter of the Bank of the United States having become a presented against the bank are signed by citizens of the subject of general conversation, and I may say of contro- borough of Muncy.

versy, in the district which I have the honor to represent, I will mention another fact, to show the panic-makers I, for the first time since I have taken my seat, asked how little influence all their exertions for the last five leave of the House to submit such remarks as might sug- months have had on the memorialists-how those gentle. gest themselves to my mind on the presentation of those men calculate without their host when they imagine that memorials. Although I do not expect gentlemen to they will cause a revolution in public sentiment by their listen to what I shall say, as that is altogether unfashion- reiterated cries of distress, and ruin, and usurpation, and able, I hope to obtain the indulgence of the House while tyranny; and that, like the "war, pestilence, and fam I make a few observations. ine" outcry that was raised some time since by a distinThe memorials are signed by six hundred and twenty-guished Senator, they are full of sound and fury, signify. three voters of the county in which I have resided for ing nothing.

nearly sixteen years-that county which is endeared to In 1832, the whole vote given in the townships from me by those strong and heartfelt ties which bind every which these memorials are sent, for the democratic can man to his family, his friends, and his home. didate for Governor, was eight hundred and forty-five, Those gentlemen whose names are subscribed to the and already six hundred and twenty-three names are memorials are my neighbors and acquaintances, and many forwarded, and I am told that a number more will be of them my warmest personal friends; they are the free- transmitted. This has been done without any effort on men of the county-the tillers of the soil, the mechanics, the part of the friends of the administration. I have been the tradesmen, the laborers-the bone and sinew of the credibly informed by a very intelligent man, who is well country. I observe among them the soldiers of the Rev- acquainted with the lower end of Lycoming county, that olution, men who nobly aided to achieve the independence one thousand names could easily be obtained against the we now enjoy. They are the old-fashioned whigs of Ly- United States Bank below Loyalsock creek, and that coming county, not the new-fangled whigs of the present without hiring men to obtain signatures, and charging the day, who change their name as often as the chameleon does its color.

expense to the committee of vigilance, as was done in Oneida county, New York, by the friends of the bank.

That portion of the county in which the memorialists It has been repeatedly alleged, in memorials sent by reside embraces a most interesting and fertile country. the friends of the United States Bank from my district, The staple commodities are grain and lumber. The that the price of produce has fallen from one-fourth to beautiful valleys of White Deer Hole, Black Hole, and one-half, and that hundreds of citizens are thrown out of Muncy creek, as well as the rich bottom land along the employment. Knowing the respectability and integrity west branch of the Susquehanna, produce abundance of of those gentlemen who have given these assertions credthe finest wheat and other grain, while the surrounding it, by attaching their names to memorials containing them, hills are covered with the most valuable timber, of nearly I can only say that they could not have adverted to the every description. The Pennsylvania canal extends at facts set forth, or they were mistaken respecting them. this time as high up the river as the borough of Muncy, In the memorial from Northumberland county they say and affords the farmer, the merchant, and the dealer in produce has declined fifty per cent. or more; and in that lumber, every facility for a market. If there were pres- presented from Muncy, that the price had fallen onesure and distress in the county, those enterprising, indus- fourth; that the times are growing from bad to worse. trious, intelligent men would be the first to discover them. They are men who are not likely to be influenced by passion or prejudice. Panic and excitement have little control over those who live retired from the noise and clamor and excitement so prevalent in cities, and they are thus better enabled to form a correct judgment, without fear, favor, or affection, hatred, malice, or ill-will. My constituents, thus situated, "view with alarm and disapprobation the conduct of the United States Bank, in its attempt to abridge the liberties of the people, by endeavoring to control our elections; by subsidizing the press, and thus acquiring an influence which almost puts it beyond the control of the Government and the people; by an unjustifiable attempt to extort from the Government an extension of its privileges; by creating distress in the trading community; by destroying confidence, and creating panics, and producing ruin to hundreds of our fellow-citizens."

This is the light in which these respectable citizens view the course pursued by the bank. In presenting their memorials, I am not able to say that they are signed by men of all parties. In the county where I reside we have but two parties, the one in favor of, the other opposed to, the administration.

I hold in my hand an extract of a letter written by a gentleman from Pennsylvania, who has been a dealer in flour, grain, &c. for a number of years past, in Baltimore and Philadelphia. In it he gives a statement of the actual sales made by him for four years past.

do.
do.

do.

6.50

575

do.

do.

do.

In 1830, flour was from $4 75 to $5 00 per barrel. In 1831, 5 12 to 6 12 In 1832, 5 00 to In 1833, 5 12 to Making an average, during these four years, of from $5 to $5 84 cents per barrel.

I have not the price of grain, but it was, of course, in proportion to the price of flour.

Let us examine the present prices of flour, the staple, commodity of Pennsylvania, and particularly of the coun ties where those statements of the great reduction of price were made. In the State's Advocate of the 8th instant four is quoted thus:

"May 8, 1834.-Wheat sales have been made at Balti more, within the last week, at $1 11; at Philadelphia, from $1 05 to $1 10-flour, $5 25 to $5 374." The Miltonian of May 3, says:

"THE MARKET.-Superfine flour has advanced a little in Philadelphia since our last. Small parcels were sold this week at $5 25 and $5 374. Bicknell's Reporter says, the receipts are small, and the demand limited. A soull lot of wheat sold at 105 cents per bushel. Rye 60 cents per bushel; corn 58 cents; whiskey 23 and 24 cents.

An honorable Senator, in presenting two memorials, some time since, from Muncy and Muncy creek, Lycoming county, stated that "they were signed, as he was informed, by men of all parties; and that the one from the borough had the name of almost every voter in the "In Baltimore, sales of Susquehanna flour, for export, place attached to it." If I am not mistaken, the votes were made at $5 and $5 06 per barrel. Sales of Susquepolled in the borough, at the contested election in 1832, hanna wheat were made at 108, 110, and 111 cents per were about one hundred and ten, which were nearly bushel, varying according to quantity. Whiskey from equally divided. And, to show that the Senator was 21 to 24 cents per gallon.'

INDEX TO THE DEBATES IN THE SENATE.