dent. bank, on a general discretion, reposed in the the Bank? Can it be for one moment main-too, as the committee think, is, that the pubSecretary: for two reasons, first, because it has tained, that Congress intended that, in such lic deposites shall continue in the Bank, so not given him the appropriate instances: and a case, the Secretary should compel the bank long as they are safe, and so long as the bank secondly, because it has, in those instances, to adopt his own opinion by the exercise of fulfils all its duty in regard to them. The either expressly reserved those powers to it- a power, the very exertion of which deran-Secretary assumes a broader ground. He self, or expressly conferred them on the Presi-ges the currency, interferes with the industry claims a right to judge of the proceedings of of the people, and, under some circumstan- the bank on all subjects. Admitting the fund If the Secretary cannot prevent the notes of ces, would hazard the safety of the whole re-to be safe, and admitting that the bank has the bank from being received at the custom venue? performed all its duties in regard to it, he house, and the land offices, even after they The Committee think it cannot admit of ra- claims an authority, nevertheless, to remove should be discredited; if he have no power to tional doubt, that if Congress had intended to the deposites whenever he shall form an opintouch, in any way, the seven millions of stock give to the Secretary any power whatever, notion, founded on the conduct of the Bank, in belonging to the Government; if the power of directly touching the deposites themselves, not any particular whatever, and however unconexamination into the proceedings of the bank only would it have specially pointed out the nected with the public monies, that the genebe given, not to him, but to either House of cases, but it would also, most assuredly, have ral interest of the people requires such remoCongress; if he have no power, but Congress provided a remedy more suitable for each case. val. If, in his opinion, it discounts too little, and the President, each has power, to direct a The nature of the remedy, therefore, which is or discounts too much, if it expands or conlegal investigation into the conduct of the bank; prescribed, clearly shows the evils intended to tracts its circulation too fast, or too slow; if how can it possibly be maintained that a gene-be provided against. its committees are not properly organized; if ral inspection and guardianship over the public To admit the Secretary's conduct is subject it claim damages on protested bills, which it welfare, so far as it is connected with the bank, to no control but his own sense of the general ought not to claim; if, in his opinion, still, it is confided to him, and that his authority to re-interest and convenience of the people, is to ac-is guilty of a wrong meddling in politics, or if move the deposites, was given, not to protect knowledge the existence, in his hands, of a dis-it do any thing else, not consistent with his the deposites themselves, and secure their pro-cretion so broad and unlimited, that its conse-sense of the public interest; he has a right to per use, but to enable him to enforce upon the quences can be no less than to subject, not only visit it with a withdrawal of the public money bank, under penalty of their removal, such a all the operations of the bank and its offices, from its custody. course of management, as his sense of the pub-but its powers and capabilities, perhaps its very If this claim of power be admitted, it would lic interest, and the convenience of the people, existence, to his individual will. He is of opi-seem to the Committee to be a fair result that may require? Such a construction would give nion that the law creating it is in many of its the Secretary has power to withdraw the dethe law a strange and an undeserved charac-provisions unconstitutional; he may not unna-posites, for no other reason than that he differs ter. It would convert the power of removal,turally, therefore, esteem it to be his duty to with Congress upon its constitutional authoriintended for remedy and redress, into a mere restrain and obstruct to the utmost of his powerty to create any bank, or upon the constitutioninstrument of punishment; and it would autho- the operations of those provisions, thus deemedality of this particular bank, or upon the utility rize the infliction of that punishment without by him to be unconstitutional. He is of opinion of continuing it in the exercise of its charhearing, or trial, in the very cases in which the that the existence of such a powerful moneyed tered powers and privileges, till its term shall law yet says, that if violation of duty be charg-monopoly, is dangerous to the liberties of the expire. ed, the charge shall be heard and tried before people. It would result from this, that if in the The committee, therefore, are of opinion, judgment is pronounced, and the duty of pre-discharge of his official duty, he is to follow no that it was not the intention of the Legislature fering this charge, and of prosecuting it to guide but his own sense of the interest of the to give to the Secretary of the Treasury a judgment, is given, not to the Secretary, but to people, he might feel bound to counteract the general guardianship over the public interests Congress, and to the President. operations of this dangerous monopoly, dimin-in all matters connected with the Bank; but The contingent power given to the Secreta-ish its circulation, curtail its means, and pre-that his power is a limited one, and is confined ry to remove the deposites, evidently shows that judice its credit. To accomplish these very to the safety, and proper management of that Congress contemplated the possibility of the purposes, and these alone, he might withdraw portion of the public interest to which it exhappening of some sudden evil, for which,either the deposites. The power given him by Con-pressly relates, that is to say, to the public no other remedy was provided, or none which gress, would thus be used to defeat the will of monies in deposite in the Bank. could be applied with sufficient promptitude; Congress in one of its most important acts, by But the extent of the Secretary's discretion, and for which evil removal would be a just and discrediting and otherwise injuriously affecting as asserted by himself, reaches even farther appropriate remedy. The remedy prescribed, an institution, which Congress has seen fit to than the wide range which the committee has then, teaches us the nature of the evils which establish, and which it has declared shall con- here described. It is not confined to the protection were apprehended. We can readily understand tinue with all its powers to the expiration of of all the various interests which the Governthat threatened danger to the funds was one, its charter. ment of the country have in the bank, or to a and probably the chief of those evils; because The power conferred on the Secretary is a supervision and control over all the conduct of change into other hands is the ready and ap- trust power, and like other trust powers, in the the bank, but it embraces all branches of the propriate measure, which would rationally sug- absence of express terms, setting forth the oc- public interest, and touches every thing which gest itself to all minds, as the proper security casions for its exercise, it is to be construed in any way respects the good of the people.against such danger; and change is the reme- according to the subject and object of the trust. He supposes himself rightfully to possess the dy actually prescribed. Neglect to transfer the As in other cases of the deposite of monies in power of removing the deposites whenever deposites from one place to another, as the exi- Banks, the primary object sought to be accom-any causes, springing up in any part of the gencies of Government might require, and plished by Congress, by that provision of the whole wide field of the general interest, may thereby to furnish those facilities of exchange, charter now under consideration, is the safe appear to him to call for such removal. Notwhich the charter demands of the bank, with- keeping of the money. The Secretary's trust withstanding he may suppose all the great in. out commission and without charge, is another therefore, primarily and principally, respects terests confided to the bank to be perfectly evil for which, should it happen, the remedy this safe keeping. But another object is dis-safe; notwithstanding he may have no occawould naturally be the withdrawing of the tinctly disclosed in the charter, which object sion to complain of any part of its conduct; funds, and the placing of them in their former is intimately connected with the fund, and notwithstanding, even, it may so have de custody, so that they could be transferred or that is its transfer and exchange from place to meaned itself as to have become the object of exchanged by the Treasury itself. place, as the convenience of Government his favor and regard; yet, if his construction But who can see any connexion or relation, might require. The Secretary's trust, there- be admitted, he may remove the deposites such as ordinarily exists between an evil ap- fore, respects also this other object thus con- simply because he may be of opinion that he prehended, and a remedy proposed-between nected with the fund; and when either of these might place them, with a prospect of still such an evil as a supposed over discount, for objects requires a removal, a removal becomes greater advantage, in other hands. If he be instance, by the bank, at one time, or an un-a just exercise of his authority. To this ex-of opinion that the commerce of the country, der discount at another, and the abrupt remov- tent, none can doubt the existence of his power. or its manufactures would be benefited by with al of the deposites? And if no one can see the If, in truth, the money is believed to be unsafe, drawing the public money from one bank and connexion, how can it be supposed that, in giv- if, in truth, the Bank will not grant the facili-placing it in many, that would be an exercise ing the power of removal as a remedy, Con- ties which it has promised, in consideration of of authority entirely within the limits gress had in view any such evil? receiving and holding the fund, then, certainly, which he prescribes to himself. It would be A question may arise between the Govern- it ought to be removed. But here the power a case in which he would only follow his own ment and the bank, respecting the right of the must stop or else it is altogether unbounded. sense of what the general interests and conve parties to the sum of one hundred and fifty Here is a just and reasonable limit, consistent nience of the people required. He might thousand dollars, as in the case of the French with the character of the power, consistent think, too, that by withdrawing all the public with the general duties of the Secretary, and treasure from the Bank of the United States, It is a question on which different opinions consistent with the nature of the remedy pro- and placing it in the hands of twenty or thirty may be entertained, and which is, in its nature, vided. State banks, to remain there during his pleafit for judicial decision. Does any man ima- The charter of the Bank is the law; it is sure, and to be drawn thence, again, at gine that such a case as this was in the eye of the expressed will of the Legislature. That his will, he might be enabled effectually to Congress, when they granted the power of will is, that the Bank shall exist, with all its advance certain other objects, which, whatwithdrawing the whole public treasure from powers, to the end of its term. That will, ever others might think of them, he might bill. 92 consider to be essential to the good of the peo-law the Legislature will or will not pass res-should it be otherwise? Why should that be ple. All this, if he be right, is within his pecting matters of finance, from the election of done suddenly now which the Secretary thinks just authority. A power, necessarily running a particular person to be Chief Magistrate, im-could not be done suddenly hereafter, without to this extent, is a power, in the opinion of plies a consequence from such election which great inconvenience? Is it not the just infethe committee, which can never be admitted. the constitutional independence and dignity rence, from his own argument, that the thing Having thus expressed an opinion upon of the Legislature do not allow to be admit- should not have been done suddenly at all? the general extent of the power claimed ted. by the Secretary, the committee proceed to consider the reasons which he has reported tary had persuaded himself that the charter of the expiration of its charter, or that it would be But if for this, or other reasons, the Secrethe bank will be depreciated, near the time of As to the idea, that the credit of the paper of to Congress as the particular grounds on the bank would not be renewed, still, it cer-inconvenient for it, at that time, to be called on which the power has been exercised in the tainly did not follow that the deposites ought for the deposites, the committee are utterly at present case. The first reason assigned by the Secretary, the hands into which they should be transfer- an opinion. Experience is against it; and all to be removed before Congress had decided on a loss to see the slightest foundation for such is the near approach of the period when the red, and had made suitable regulation respect-reason, as the Committee think, is against it bank charter will expire. 4th of March, 1836, more than two years dis-ground for thinking that Congress would not gree doubtful, that the bills of the bank will be That period is the ing their future custody. If there were good also. There is nothing to render it in any de. tant; nearly two years and a half at the time re-charter the bank, for that very reason therein as good credit, the last day of its charter, of the removal. Three sessions of Congress, was equally good ground for supposing that in and even after that time, if any shall be outare, in the mean time, to be holden; and in- would make proper and suitable provision for standing, as they are now; and there is as asmuch as the Secretary himself says that the keeping of the public monies elsewhere. tle to render it doubtful, that then, as now, "the power over the place of the deposites How could the Secretary doubt that Congress the bank would be competent to answer all defor the public money would seem properly to would omit to do that which he avers to be one mands upor it. In the opinion of the Combelong to the legislative department of Govern-of its appropriate duties? The question is, not mittee, the withdrawal of the fund was both ment," the committee think it might reasona- what measures Congress might be expected to unnecessarily early, and unnecessarily sudden. bly have been expected by him, that Congress adopt-whether the re-chartering of the bank, it might have been made gradual; it might would not fail to make, in season, suitable re-or what other measures; but whether it ought have been deferred; and it might have been, gulations on a subject thus admitted to be not to have been presumed that it would adopt and onght to have been, as the Committee within the just exercise of its authority, and some measure, and that a seasonable and pro- think not ventured upon at all, until the attenproperly one of its duties. and whether, therefore, this anticipation of the subject. per one, according to its power and its duties; tion of Congress itself had been called to the action of Congress, on the eve of its session, is dissent from this first reason, reported by the The Committee therefore entirely taking this important step, at the moment it them the existence of the slightest occasion for Secretary. They see nothing which proves to son, the Committee hink the removal was made was taken. So far as it depends on this reawithout necessity; without caution or preparation; with a suddenness naturally producing mischievous consequences, and in unjustifiable anticipation of the legislation of Congress. the discounts of bills are made by the commitThis charge consists of two parts; first, that tee; and not by a quorum of the board; second, that the public directors are not allowed to be of this committee. Why, then, should he not have waited till Congress had seen fit to act upon the subject, or had manifested a disposition not to act?-to be justified. The matter of the deposites had been before Congress last session, and Congress had then of the public money shall be made in the bank The bank charter declares that the deposites thought no provision to be as yet necessary.Its undoubted sense was, that the public mo- till March, 1836. Where does the Secretary and its offices, and that the bank shall continue neys should remain where they were. This find his power to decide that the deposites was manifested by proofs too clear to be ques- shall be so made but for seventeen years from tioned. Another session was fast approaching, the date of the charter, instead of twenty? I and why was not the whole subject left where he may thus withdraw the deposites two or Congress had chosen to leave it at the end of three years before the expiration of the charter, its last session, to await the free exercise of its what should restrain him from exercising the reasons for the removal, growing out of the But the Secretary thinks there are other legislative power at this session? It might same authority five years before its expiration, manner in which the affairs of the bank have have been fit for the Executive to call the at-or ten years? A plain and cogent necessity, been managed, and its money applied, which tention of Congress, at this time, to the neces-the existence of a case which admits of no rea sity of some legal provisions respecting the fu-sonable doubt, and which is too urgent for de deposites, at any period of the charter. would have made it his duty to withdraw the ture custody of the public moneys; and it would lay till Congress can provide for it, can alone doubtless nave been proper for Congress, with- justify an interference with the public monies leged misconduct of the bank, the first is, that Of these reasons, thus arising from the al out such call, to take up and consider the sub- lodged in the bank by law for the double pur-many important money transactions of the ject at its own suggestion; but the committee pose of safe keeping, and fulfilment of solemn bank are placed under the control of a Comsee no reason whatever, in the approaching contract. expiration of the charter, for a change so sudmittee of Exchange, of which Committee, no den, and producing such important effects, tary to have expected the interposition of Con-ed, is allowed to be a member, instead of But supposing it not reasonable for the Secre- one of the public Directors, as they are callmade so long before that expiration, at a time gress, and admitting that he might consider the being transacted by a Board of seven Directors. when Congress had recently had the subject withdrawing of the deposites as an act which before it: and when, too, it was again about to was to be done at some time by himself, how assemble, and would naturally have reasonable can it, nevertheless, be argued that so early and and full opportunity to adopt any necessary so sudden a withdrawal was necessary? The legislative provisions. Committee can perceive no possible reason The Secretary has stated no reason satisfac-for this in any state of facts made known to tory to the Committee, for not deferring this them. First. It is not alleged that, in the discounts important step until the meeting of Congress. site from a bank whose charter is about to ex-in consequence thereof, any facility to the merof bills by this committee, any indiscretion has He sets forth no emergency, no sudden occaThe withdrawal of the money left on depo-been committed, or any loss incurred, or that sion, nothing which, in their judgment, made pire, is naturally one of the things longest cantile community has been withheld, or any immediate action by him necessary. postponed. It is as safe the last day of the duty of the bank to the Government violated. The Secretary supposes it to have been his any previous period. The bank expects the counted by a commitee. Supposing this to existence of the bank, in common cases, as at The objection is, simply, that bills are disduty to act on the belief that the bank charter recall of its deposites near the period of its ex- be an irregularity, or illegality, in the prowould not be renewed; and he refers to recent piration, and prepares itself accordingly. The ceedings of the board, how is it to be correctpopular elections in support of this opinion.The Committee believe it altogether unusual thus conducted, the least possible disturbances nexion is there between the two things? It is operation, if made gradually, produces, whened by withdrawing the deposites? What confor reasons of that kind to be assigned for pub-in the business of the community. Former not pretended that this mode of discounting lic and official acts. On such subjects, opinions experience would seem to have held out a sal- bills, endangered the deposites; it is not premay be very various. Different and opposite utary light for the guidance of the Secretary in tended that it made the bank either less able, conclusions may be drawn from the same facts this part of his official duty. by different persons. One man may think that a candidate has been elected on account of his of the former bank, Mr. Gallatin was Secreta-drawal of the deposites then be suggested, by At the time of the expiration of the charter duties to Government. How should the withor less willing, to perform every one of its opposition to the bank; another may see, only, ry of the Treasury, and the public deposites the discovery of such an irregularity, real or that he has been chosen, notwithstanding such were in the bank. The charter of the bank supposed? The committee are not able to opposition. One the support may regard the opposition or was to end on the 4th of March, 1811, and it perceive the least propriety, in applying the of any measure, by a particular can- does not appear that Mr. Gallatin thought it power of removal, to a proceeding of this didate, as having been, itself, a promoting cause necessary to make any provision whatever for kind, even if it were admitted to be irregular of the success of his election; another may es-removing any part of the deposites, except by or illegal. But is the practice illegal. It is teem it as a formidable objection, overcome, drawing on them for the common uses of go- believed to be not at all unusual? It is beliehowever, by more powerful reasons; and oth-vernment, until late in the very month prece-ved to be quite common, in banks of large buers, again, may be of opinion that it produced ding the expiration of the charter. A large siness, for bills of exchange, which are prelittle or no effect on the one side or the other. amount of those deposites remained, indeed, in sented every day, and almost every hour in the But if inferences, less uncertain,could be drawn the vaults of the bank after its charter had ex-day, to be discounted either by a committee from such occurrences, the committee still pired, and until they were wanted in the gene-of the directors, or by the president, or even think, that for a public officer to presume what ral operations of the Treasury. And why other officers; acting under such general or ders and instructions as the directors, at their twenty-five directors. Of those, twenty are tollers, of any violation of the charter committed stated meetings, prescribe. A large board of be chosen by the individual stockholders, and or threatened. fact, and relied on as the basis of other charges. directors cannot assemble every day, perhaps five appointed by the President, with the advice The Secretary of the Treasury has thought not oftener than twice a week. If bills of ex- and consent of the Senate. As the Govern- proper to observe, that the measures of the change could only be discounted at these peri-ment owned one-fifth of the stock of the bank, committee of exchange are, as it appears, deodical, meetings the business of exchange it was judged expedient to place in the hands of signedly and by system, so arranged as to concould not go on with the promptitude and de-the President and Senate the appointment of ceal from the officers of the Government transspatch so important to commercial men in one-fifth of all the directors. But they are not actions in which the public are deeply involved. such transactions. called public directors, nor officers of the Go-This, it must be admitted, is a very serious The committee suppose the truth of these vernment, nor public agents. Nor are they en-charge. It imputes a corrupt motive. The remarks will be at once admitted by all who titled, so far as the committee can perceive, to committee have sought for the foundation,either have knowledge of business of this kind. either of these appellations, any more than the in evidence or argument, on which this charge The general management and control, the other directors. The whole twenty-five direct-rests. They have found neither. They find authority of examining and supervising, of con-ors are jeint managers of a joint fund, each only the charge, in the first place; and then tracting or enlarging the amount of daily dis- possessing precisely the same powers, and they find the charge immediately stated as a counts, according to the state of the bank, and charged with the same duties as every other. of giving every other order and direction on the They derive their appointments, it is true, from The second reason specially reported by the subject, still remains with the directors, and different origins, but when appointed, their au- Secretary as arising from the conduct of the is constantly exercised by them. They still thority is the same. There is not one word in bank, respects the bill of exchange drawn by manage the affairs of the bank, in the lan- the charter intimating, in the remotest manner, the Secretary of the Treasury on the Govern guage of the charter, although they may de- that the five directors appointed by the Presi- ment of France, and purchased by the bank. pute to a committee the authority of inquiring dent and Senate have any particular duty, or The general facts connected with this case and deciding upon the credit of persons whose are the objects of any particular trust. The are these: names are on bills of exchange offered for dis- charter calls them not Government directors, By the late treaty of indemnity between the count, and on the rate of exchange, current not public directors, but simply the directors U. States and France, it was stipulated that the at the day. The legal question would be, appointed by the President and Senate. They French Government should pay to that of the whether the directors, by rule or by law, may are placed in the direction to consult with the U. States twenty-five millions of francs, to be not authorize a small number of their own other directors, for the common good of the distributed among those American citizens who board to discount bills. The bank has been bank, and to act with these others, and vote had claims against France for the unlawful advised that it might rightfully do this; and with them on all questions. They are, what seizure, capture, and condemnation of their if it be not clear that this opinion is right, it is the law calls them, directors of the bank, not vessels and property, the whole sum to be paid certainly far from clear that it is wrong; and agents of the Government. They are joint n annual instalments of four millions one hunin this state of the question, the general prac-trustees with others, in a joint interest. If any dred and sixty-six thousand six hundred aud tice of other banks, under similar provisions thing illegal or improper takes place in the sixty-six francs, each, into the hands of such in their charters, may well relieve the direc-board, they are bound to resist it by the duty persons as shall be authorized by the Govern tors from the imputation of intentional mis- which they owe the individnal stockholders, as ment of the U. States to receive it; the first inmuch as by the duty they owe the Government; stalment to be paid at the expiration of one year management. because they are agents of the individual stock-next following the exchange of the ratification. holders, and have the same authority to bind On the expiration of the year, the Secretary them by their acts, as to bind the Government; drew a bill of exchange, signed by himself as and, in like manner, it is the duty of those di- Secretary, on the French Government for the rectors who are appointed by the individual amount of this instalment, and sold it to the stockholders, to give notice, as well to Govern- bank, like any other bill of exchange, and rement as to the stockholders, if any thing illegal ceived the proceeds by credit of the amount to take place, or be threatened. All those direct-the account of the Treasurer in the bank. ors act and vote together on the smallest as well as on the highest occasions; and by their joint votes, bind the corporation, and bind both the Government and individual stockholders to the extent of their respective interests in the If, in all this, the bank has violated its charter, what other banks of extensive business have not done the same thing? But the other subject of complaint, and that which seems to be regarded as the more offensive part of this regulation, is, that the public directors, as they are called, were not allowed to be on this committee. corporation. On presentment of the bill at the French Treasury, payment was refused; the bill was accordingly duly protested, and it was then ta ken up by a third person for account of the bank. The damages accruing on this bill, according to law and to constant usage in such dollars. cases, are one hundred and fifty-eight thousand It may be observed, in the first place, that if the discounting of bills of exchange, by a commaittee instead of a whole board of directors, be illegal,it would hardly be rendered legal by plaeing any or all of these public directors on the committee as members. But the Secretary seems to suppose that there was some particu- and Senate had been excluded by the charter, If the directors appointed by the President lar object in this exclusion of these directors, as from any part of the power exercised by the If this bill had been transterred by the bank, if there had been something wrong to be done, others; if it had been forbidden them to inter-as probably it was, the bank itself would have and therefore secrets to be kept by this commit- fere, to the same extent, and with the same ef- been answerable for damages even at a higher tee. It is not easy to see what foundation there fect, as the rest, in the common business of the rate, if a third person had not taken up the bill can be for this opinion. All these discounts are bank, there might be some reason for suppos- for the honor of the bank. matter of record. They appear every day in the ing that an uncommon character, a character On receiving information of the protest of the books of the Bank. Every director, on or of not so much of action as of supervision and in-bill, the officers of the bank, as was their duty the committee, sees them, or may see them, spection, was intended to be conferred on them. gave immediate notice to the Treasury Depart at pleasure. There is no secrecy, nor any But they do interfere, and justly, in all transac-ment, and accompanied that notice with the motives for secrecy, so far as this committee tions of the bank. They do vote and act on all information, always made in such cases, that can perceive. Very proper causes may have subjects, like the other directors. Being then the drawers of the bill would be held answerexisted, for ought that can have been known possessed of this common character of direct-able for the damages. Such is the substance by the Senate, for the omission of these par- ors, and enjoying all its powers to the fullest of the facts in this case. ticular directors from this particular commit-extent, the committee know no form of argu- The bank it would appear, was willing to coltee. Their services might have been deemed ment, by which an uncommon and extraordina-lect the bill on the account of government, and more useful in other committees, or howev-ry character is to be raised by construction, and to credit the Treasury with the proceeds when er respectable in general character, or how-superadded to the common character of direct- received: a course of proceedings which had ever useful in other parts of the direction, ors, which thus already belongs to them. this to recommend it, that the money to be rethey may have been esteemed not so well ac By granting the charter, and by accepting it,ceived on the bill, was to be received by the gov. quainted as others with the business of foreign the Government on the one hand, and the indi-ernment simply in trust for claimants under and domestic exchange. And even if there|vidual stockholders on the other, have agreed, the French treaty, and was not ultimately des were, or are other causes for the omission, such that, of the directors, as joint agents of all par- tined to the ordinary uses of the Treasury. On as tend less to prove the existence of that ties, the stockholders shall appoint twenty, and the contrary, indeed before the dishonor of the harmony and mutual respect which it is so de- the Government five. The interest of all parties bill was known, it had been made, already, sirable should prevail in such a board, these is confided to this joint agency; and any dis- the legal duty of the Secretary to place the causes cannot furnish any just ground for as- tinction in their powers, as arising from their fund, so soon as received, at interest for the serting, either that the business of exchange different modes of appointment, is in the judg. benefit of the claimants. was illegally conducted, or that the constitument of the committee not to be sustained- But it was thought best to sell the bill, and ion of the committee was proof of the exist They regard such distinction as entirely incon-to realize at once its amount into the Treasury; ence of any motive not fit to be avowed. sistent with the nature of the agency created. and the bill was sold to the bank, in preference But the Secretary entertains an opinion re- and as deriving not the least countenance from to others offering to purchase, for no reason, it specting the character and duties of the direct-any thing contained in the law. is to be presumed, except that the terms of the ors appointed by the President and Senate, in The committee, nevertheless, to avoid mis-bank were more satisfactory. The bill was which the committee do not concur. He de-apprehension, wish to repeat, that it is un- thue purchased by the bank, and its proceeds nominated them "public directors"-" officers of the Government," &c. By the charter of the bank there are to be doubtedly the duty of the directors appointed credited to the Treasury. This was a mere transaction of the purchase and sale of a bill of exchange. There was no trust confided to the bank and no fiscal agency in the whole The last charge preferred against the bank,||sion of its loans? There is no evidence but matter Indeed the agency of the bank had been declined, the Secretary preferring to deal is, that it has used its means with a view to the mere fact itself of the extension, and it with it not as an agent, but as a purchaser, obtain political power, and thereby secure the cannot be denied that other and very different reasons for the extensions may have existed; proposing to it not to collect the bill, but to buy renewal of its charter. it. On being remitted to Europe, and present- The very statement of such a charge, as a so that the charge is proved no otherwise than ed for payment, the bill was protested. By the reason for removing the deposites, is calculated by inferring a bad motive from an act lawful universal commercial law, the Government, on to excite distrust in the wisdom and propriety in itself, and for which good reasons may the occurrence of this protest, became amena of that measure; because the charge, too gene- have existed, nor is it either acknowledged, ble to the bank for the amount of the bill, with ral to be proved, is too general, also, to be dis-nor, so far as the committee know, proved that damages. These damages may be ultimately proved; and since it must always rest mainly the bank took an open and direct interest, as olaimed, with justice from the French Govern- on mere opinion, it might be made at any time, a corporation, in the election referred to. The ment if the bill was drawn upon sufficient by any Secretary, against any Bank. It would bank certainly was much interested in certain grounds, and on proper authority; in other be, therefore, always a convenient cloak under accusations which had been brought against words, if the obligation of the French Govern- which to disguise the true motives of official it, and which became subjects of public discussion dnring the pendancy of that election. It ment was such that it was bound to accept pay the bill: but unless there be something in had been charged with great misconduct and the case to vary the general rule, which the gross violation of its charter. These accusacommittee do not perceive, these damages were If made before Congress, part of the debt which had become due to the tions must undoubtedly have called on the dibank, as much as the principal sum of the bill. rectors for answer. If this be so, how could the directors relinquish this part of the debt any more than the other? They were agents for the corporation; they act as trustees, and have no authority, without consideration, to release, either to the Government or to individuals, debts due, or properly belonging to the corporation. and conduct. may use All But on their right to defend themselves before the public against grave charges brought against them and urged before the public, the committee entertain no doubt, and they are the Treasury is not constituted the judge of equally clear in opinion that the Secretary of justly remove the deposites merely because the the mode of exercising this right, and cannot conduct of the bank, in this particular, has not happened to conform to his wishes. If proof be made out that the funds of the bank have been applied to illegal objects, the proper mode of redress and punishment should have been adopted, but what has this to do with the deposites? As in the case of the they were to answer before Congress; if made if made in an official and formal manner, and French bill, the Secretary cannot justify the judicially, they were to answer in the courts; removal of the deposites on any such ground in that manner submitted to the judgment of the country, the directors were bound to as this, unless it be conceded that he the power of removal as a punishment for any meet them before that country by every fair offence of any kind which the Bank in his opinion, may have committed. The commit- use of fact and argument, not only for the purIt has been suggested that the bank should tee have already expressed the opinion that no pose of defending themselves as directors, but have taken up this bill, when protested on gov assertion of such a power, for such a cause as such latitude of power belongs to him, and the for the higher purpose of maintaining the credit of the bank, and protecting the property If in thus defending ernment account. Two answers may be given now under consideration, shows that the entrusted to their care. the bank before the community, the directors to this suggestion: the first is, that the bill had is been taken up by a correspondent abroad for power ought never to belong to any Secretary, carried their measures beyond this fair object account of the bank, before it was known in because the offence, on account of which it is or indecorous modes of discussion; if they the United States that it had been protested. here proposed to be exercised, is a political of- of defence, or if they resorted to dishonorable sought rather to inflame than to reason; if The second is, that it would have been unlawful fence, incapable of definition, depending merefor the bank to have advanced such amount to ly on the Secretary's opinion, and necessarily the Government or on account of Government drawing into its consideration all the exciting they substituted personal crimination for argulence with corresponding invective and viofor the purpose of taking up this bill, or for controverted topics of the day. The bank, it ment; if, even, they met invective and violence; they followed bad examples, and are any other purpose, without an act of Congress. is said, "has sought to obtain political power.' What is the definition of such an offence as not to be justified. The express words of the charter forbid it. What acts constitute it? How is it to But, as a reason for removing the deposites, this? Who is to be the judge? What it appears to the committee quite immaterial be tried? whether the bank be right or wrong in claiming punishment shall follow conviction? these damages. If wrong, it will not recover must see that charges of this nature are but them. It is not to judge of its own rights, and loose and vague accusations, which may be if the appropriate tribunals shall decide that made at any time, and can never be either the bank was acting on this occasion, or ought proved or disproved; and to admit them as to have acted as the agent of Government, or sufficient grounds, or justify the removal of the that it was its duty to take up the bill on ac- deposites, weuld be to concede to the Secretary count of Government, then the damages will the possession of a power purely arbitrary. The main fact relied on for this cause of renot be awarded to it. And in the worst aspect of this case, how can its conduct in this re-moval shows how extremely unsafe all proceedspect be any possible reason to justify the re-ings on any such reasons must be. The main moval of the deposites? What connexion has fact is, that, between December 1880, and Dethis occurrence with the safe keeping of the cember 1831, the bank extended its loans twenpublic treasures, or with the remitting them ty millions of dollars; and it is further alledgfrom place to place, to meet the convenience of ed that, as if to leave no doubt on the motive of bank under the charter? The bank thinks it- rapidly to its loans, until in May, 1832, while the Government, according to the duty of the this extraordinary conduct, it continued to add self entitled to damages on a protested bill, its petition for renewal was pending, those purchased and held by itself, and drawn by loans amounted to seventy millions. And the Government. The Secretary of the Treasury Secretary declares that this extraordinary in If there be no reason to crease of loans made in so short a space of time, thinks otherwise. doubt the sincerity of the Secretary's convic-and on the eve of a contested election, in which tion, there is as little to doubt the sincerity of the bank took an open and direct interest, dethat entertained by the bank; and it is quite monstrates that it was using its money to obinconceivable to the committee that the pen-tain a hold upon the people of the country to dency of such a difference of opinion, on such a induce them, by the apprehension of ruin, to question, should furnish any reason whatever vote against the candidate whom it desired to for withdrawing the deposites, unless it be at defeat. This is a strong assertion, but, so far as the Committee perceive, it is assertion mereonce admitted that the Secretary holds the ly. It is but the Secretary's own inference er of removal as a perfectly arbitrary power, from facts, from which very facts his predeand may exercise it, by way of punishment, whenever, in any particular, the conduct or the cessors in office have drawn no such concluopinions of the bank do not conform to his sions. pleasure. pow The committee, therefore, consider this last reason of the Secretary equally insufficient with tionable of all in its principle, inasmuch as it the rest; and they regard it as the most objecproceeds on grounds which, if admitted, would leave a very high official duty to be exercised cal feelings and party contests of every day, with no guide but the individual opinion of the from considerations connected with the politi officer who is to perform the act; an opinion which, it is possible, may be no less tinctured with political motive and feeling than the conduct which it would reprehend. If an unlimited power be conceded to the Secretary to inflict penalties on the bank for supposed political motives in acts legal in themselves, where is the security that the judge may not be found acting under the same impulses which he imputes to the party accused? is The committee entertain no doubt that the immediate cause of the existing public distress to be found in the removal of the public deposites, and in the manner in which that removal has been made. No other adequate cause has been suggested; and those who justify the removal do not so much deny this to have been the cause, as insist that it was not necessary that any such effect should have followed from it. In other words, they argue that, notwithstanding the removal, the bank still possessed move the deposites? So, also, as to the a- the power, if it had chosen to exercise it, of mount of loans in May, 1832. That amount warding off the blow which has fallen on the was perfectly well known at the time, and if country, or at least of mitigating its severity. it proved any offence, why was not the pun- Nothing could have been rationally expected ishment inflicted then? How should all other but that the bank, deprived of the deposites, Secretaries have slept over this great mischief? and denounced by the Executive Government, It might further be well asked, what evi- would feel itself called on to take just care of Of the dence is there of the existence of any such mo- its own interest and its own credit. ive as is imputed to the Bank in this exten-"means necessary to the attainment of these This great extension of the loans, be it remembered, took place in 1831. Why was it not The Secretary does not argue this matter.He offers no reason in opposition to the legal then complained of? How should it have esright of the bank to the damages claimed.- caped the vigilance of the Secretary at that day Indeed, he hardly denies the right. He com- at the time it took place? And if it did not mences his observations on the subject by say-escape his vigilance, why did he not then re ing that the ruling principle of the Bank is its own interest; and closes them with another declaration, that, as fiscal agent of the public, it availed itself of the disappointment of its prin cipal for the purpose of enlarging its own profits. Assertions like these, however else they may be disposed of, cannot be made subjects of argument. RAILROAD CAR WHEELS AND BOXES, AND OTHER RAILROAD CASTINGS. at the Jefferson Cotton and Wool Machine Factory and Foun Also, Flange Tires turned complete. J8 ROGERS, KETCHUM & GROSVENOR. Builder of a superior style of Passenger Cars for Railroads No. 264 Elizabeth street, near Bleecker street, these Cars; a specimen of which may be seen on that part o J25tf NOVELTY WORKS, Near Dry Dock, New-York. THOMAS B. STILLMAN, Manufacturer of Steam and other Machinery. Also, Dr. Nott's Patent Tubular Bollrior to any thing of the kind heretofore used. The fullest assurance is given that work shall be done wel:, and on reasonable terms. A share of public patronage is respectfully ers, which are warranted, for safety and economy, to be supe. solicited. TO STEAMBOAT COMPANIES. I PROFESSOR RAFINESQUE, of Philadelphia, offers his services to render steamboats incombustible and not liable to sink, even by the bursting of boilers, or striking against snags, sawyers and rocks. This will save many boats, much property, and the lives of hundrede every year. Those who neglect this easy improvement, deserve to be neglected and derted by the public as unmindful of safety. Apply, post paid. SI RJ MM & F NOTICE TO MANUFACTURERS. ends, the directors alone were judges, and the than any State bank does possess. The credit committee have no evidence before them to or the Bank of the United States is equally soshow they have not exercised their judgment lid, its bills and notes received with equal con- Also, AXLES furnished and fiued to wheels complete fairly, and with a real solicitude to accommo-fidence for the purpose of circulation and re-dry. Paterson, N. J. All orders addressed to the subscribers date the commercial community in the altered mittance, in every quarter of the country. No at Paterson, or 60 Wall street, New-York, will be promptly attended to. Also, CAR SPRINGS. state of things as far as has been practicable, paper circulation, so far as the committee know, consistently with the security of the institu- which ever appeared in the world, has aption, which it is equally their duty to the pub-proached nearer to the value and uniformity of lic and the stockholders to maintain. They a specie currency than the notes and bills of are certainly under every obligation of duty, in the Bank of the United States. To the State the present distressed state of the country, to banks these notes and bills have performed the do every thing for the public relief which is office of specie. All the State banks have disconsistent with the safety of the bank, and counted upon the possession of them, with the with those considerations which the approach- same freedom and boldness as they would have ing expiration of its charter makes it impor-done on an equal amount of the precious metant for the directors to regard. tals. The curtailment of their circulation, The removal itself, and the matter of effect-therefore, if not merely a withdrawing of the ing it, are causes entirely sufficient, in the judg- amount curtailed from the general mass of cir-Engines, Boilere, Railroad and Mill Work, Lathes, Presses, ment of the committee, to produce all the con- culation, it is removing, rather to the amount sequences which the country has experienced, curtailed, the basis of the general circulation; and is experiencing; and these consequences, and although the actual amount of notes and they think, are to be referred to these causes as bills has not been recently greatly diminished, their just origin. How could any other result there is reason to suppose that the amount have been expected? The amount of the de- held by the State banks has been greatly diposites was nine millions of dollars. On this minished. amount in deposite there was sustained, no The removal of the deposites has operated doubt, a discount of far greater magnitude. directly on the amount of the circulating meThe withdrawal of this sum of nine millions dium, at a moment when that amount could not from the bank, necessarily compelled it to di- bear any considerable reduction suddenly made, minish its discounts to the full extent of all that without producing sensible effect. It has dipart which may be supposed to have been sus-minished prices, and, in some instances, it has tained by it. It is to be remembered, too, that had this effect to a very material degree. It this was done at a moment when business of has operated on the internal exchange, and every kind was pressed with great activity, and has most manifestly been attended with very all the means of the country fully employed. serious and heavy inconveniences in that imThe withdrawing of so large an amount at portant branch of the national interest. More such a time, from hands actually holding and than all, it has acted on opinion; it has disusing it, could not but produce derangement turbed the general confidence, it has weakened and pressure, even if it had been immediately the public faith in the soundness of the curren-chines as above, to any persons who may apply for them as soon placed in other banks, and if no unfriendly feeling, and no want of confidence, had attended Cy, and it has alarmed men for the security of property. As yet, we hardly know its effects the transaction. But, it is quite obvious that on the credit of the country in Europe. Perthe operation to which the Secretary has resorted has been attended with both these addi- but if causes which operate here should be found haps it is not easy to anticipate those effects: tional and powerful causes of derangement. It to have been efficient there also, a still greater has created unfriendly feelings, and it has di- degree of pressure and distress than has yet minished confidence. This change of the de- been felt may be expected. posites is made on the strength of charges The committee, therefore, cannot but regard against the bank of a very grave and aggra- the removal of the deposites, on the whole, as vated nature, such as, if true, would most seri-a measure highly inexpedient, and altogether ously affect its credit for solvency and stability. unjustifiable. The public monies were safe in It is proclaimed to the whole world as having the bank. This is admitted. All the duties of converted itself into a political partisan, misap- the bank connected with these public monies plied its funds, neglected its highest duties, and were faithfully discharged. This, too, is adentered on a career of electioneering against mitted. The subject had been recently before the government of the country. the House of Representatives, and that house These serious charges necessarily put the had made its opinion against the removal and Incorporated Governments, and the Drawback taken la bank on its defence, and the extraordinary spec- known by a very unequivocal vote. Another tacle is exhibited of a warfare by the National session of Congress was close at hand, when Gevernment on the National Bank, notwith- the whole matter would come again before it. standing that the Government is itself a great Under these circumstances, to make the remo proprietor in the bank, and notwithstanding val, with the certainty of creating so much that the notes of the bank are the currency in alarm, and of producing so much positive evil which the revenues of the country are by law receivable. and suffering, such derangement of the currency, such pressure and distress in all the branchThe true and natural relation between the es of the business of private life, is an act Government and the bank is altogether revers- which the committee think the Senate is called ed. Instead of enjoying the confidence of the on to disapprove. The reasons which have Government, it is obliged to sustain its most se- thus been stated apply to the whole proceedrious official assaults, and to maintain itself ings of the Secretary relating to the public deagainst its denunciations. The banks selected posites, and make it unnecessary to consider by Government as its agents are themselves whether there be any difference between his thrown, perhaps unwillingly, into an attitude power over monies already in the bank, and his of jealousy and suspicion with the Bank of the power to suspend future deposites. The comUnited States. They become cautious and mittee forbear, also, to consider the propriety fearful, therefore, in all proceedings; and thus of the measures adopted by the Secretary, those who should co-operate to relieve the pub-for the safe keeping of the public monies since lic pressure, are considering mainly their own their withdrawal from the bank. They for safety. Fearful of each other, and fearful of bear, too, from entering into any discussion, at the Government, they see the distress continue with no power of beneficial interposition. the county of Rensselaer, and state of New-York, has invented and put in operation a Machine for making Wrought Naild naile, and about forty 10d nails in a minute, and in the same with square points. This machine will make about sixty 6d proportion larger sizes, even to spikes for ships. The nail is redness, that its capacity for being clenched is good and sure. hammered and comes from the machine completely heated to One horse power is sufficient to drive one machine, and may easily be applied where such power for driving machinery is in operation. Said Fairman will make, vend and warrant ma as they may be made, and on the most reasonable terms. He machines throughout the United States. Any person desiring further information, or to purchase, will please to call at the machine shop of Mr. John Humphrey, in the village of Lan also desires to sell one half of his patent right for the use of said singburgh.-August 15, 1833. RAILWAY IRON. Ninety-five tons of 1 inch by inch, do. 1 do. A29 if RM&F 1 Flat Bars in lengths of 14 to 15 200 do. feet counter sunk 40 do. 1 do. do. holes, ends cut at an angle of 45 de grees with spllIcing plates, nails J to suit. 250 do. of Edge Rails of 36 lbs. per yard, with the requisite chairs, keys and pins. Wheels of Railway Cars, and of 60 inches diameter for LocoWrought Iron Rims of 30, 33, and 36 inches diameter for motive wheels. Axles of 24, 23, 24, 3, 34, 31, and 34 inches diameter for RailwayCars and Locomotives of patent iron. The above will be sold free of duty, to State Governments, part payment. A. & G. RALSTON. 9 South Front street, Philadelphia. Models and samples of all the different kinds of Rails, Chairs, Pins, Wedges, Spikes, and Splicing Plates, in use, both in this country and Great Britain, will be exhibited to those disposed to They have already in their possession the requisite appara. tus for the construction of three classes of engines, viz. en- not only to their efficiency in the conveyance of burthens, but plne wood, coke, or any other fuel hitherto used in locomotive engines. The engines will be adapted to the use of anthracite coal, present, of the course of legislation proper to pairs. It may be asked, why are not these deposite banks able to maintain at large a circulation on the nine millions of deposites as the Bank of the United States? And will they not be thus able when the present panic shall have subsided The committee think both the questions been expressed. easily answered. They recommend to the Senate the adoption The Bank of the United States has a credit of the resolution which has been referred to more general, it may be said more universal,them. The terms shall be quite as favorable, and even more modeprocured from abroad. rate, than those on which ergines of the same class can be All orders for engines, &c. and other communications in re- city of Philadelphia, and shall receive prompt attention. WILLIAM NORRIA, Secretary. For further information on this subject see No. 49, page 772 of this Journal. de |