Newspaper Page Text
“The ferment of a free, if preferable ttfrfhe torpor of a despotic, Ciovemmeut.”
VOL. III.
ATHENS, GEORGIA, MARCH 29, 1834.
NO. 2.
The Southern Banner,
JS rfBUSHEIl IN THE TOWN OF ATHENS, GEORGIA,
EVERY SATURDAY,
BY ALBO.\ CHASE.
TERMS.—Three dollars per year, payable in ad,
v^neo, or Four dollars if delayed to the end of the
year. Tho latter amount will be rigidly exacted of
ull who fail to meet their payments in advance.
No subscription received for less than one year, un
less the money is paid in advance ; and no paper will
ba discontinued until all arrearages arc paid, except
'at the option of tho publisher. A failure on the p irt
*of subscrilicrs to notify us of their intention of re.
liuquishmont, accompanied with the amount due, will
bo considered as equivalent to a new engagement, and
papers sent accordingly.
Advertisements will be inserted at the usual rates.
(E/“All Uttsn to tho Editors on matters connected
with the est ddishment, must be post paid in order to
secure attention.
IFF Notice of the sale of Land and Negroes by Ad
ministrators, Executors, or Guardians, must be pub
lished sixty days previous to the day of sale.
Tho sale of Personal Property, in like manner,
must be publ shed forty days previous to the day of sale.
Not ice to debtors and creditors of an estate, must be
published fortu days
©curjvcss.
SPEECH OF MR. FORSYTH,
OF GEORGIA,
In Vie Senate of the United States, Jan. 1834,
—on the subject of the removal of the dejtos.
ites j rota the Hank of the United States.
[comrDED.1
That difference of opinion should exist as to the
wisdom of the act of changing the place of depcsitcs,
is not surprising, but it is unaccountable that the
power of the head of tho Treasury Department over
them should be denied. Since the establishment of our
government tho Department, by its head, has excr-
1 cised precisely the same authority lately exerted by
j Mr. Taney. Gentlemen cannot rctiecl seriously
j when they tell u.s tli.it this subject beltings to the
j Treasurer, an*l not to tho Secretary of tho Treasury,
i They do not consider wliat is dejmsited, or who are
i the officers who make deposites. Bonds for the du.
! ties due to government given to col ectors, money
I paid to receivers for public lands, taxes paid to col-
j lectors—these are the deposites in places supposed to
! 1* safe. And who sir, can direct these officers ? Is
it tho Treasurer ? He lias no control over them, no
intercou rse with them, except to give the discharges
when t! o moneys are put into the Treasury hy tho
warrant of the Secretary. Originally these bonds
Notice th it Application will lie made to the Court , „ . ~ .
of Ordinary, for Leave to sell Land or Negroes, must ) and . mol,e 3 r8 1 w 4 crc lc ,n thc c “ re * h f * o!lector8 ’
be published four mouths. ! receivers and tax gatherers until paid into th.
Notice that Application will made for letters of! ur D an ‘.‘ wh «o there arc no t
, • •- .• i „„.i [ convenient distances from tho i.ico of code
Immigration must be published th.rty days, am! ... .. oflWrs . » hv
Admini
for letters of Dismission, sir months.
118 NEGROES, &C.
For Sale.
Ofire Superintendent of Roads, «J-r.
Eastern Division. January 11, 1831.
S N obedience to an Act of the Legislature of the
Mate of Georgia, approved by his Excellency the
Governor on tho 21st day of December, lb33, 1 will
sell at public outery, >o tho highest bidder, at the
cuurt house in tho COUNTY OF ELBERT,
On Monday the llth day of March next
Tho following named NEGROES belonging to tho
Stats of Georgia and attached to tho Lincoln station,
together with the .Mules, Carts, Tools, Ac. connect
ed thereto;
Kasha, (Mills,) Xich, (Zcllars,) Abraham, (F. Cul
hm«,) Lawson, (Watkins,) Armstead, (Glaze,) Thom
(Delias,) Moses, (Sims,) Richmond, (Burks,) Wal.
laeo. (Charlton,) Isaac, (Brown,) Torn,(llowell,) and
Jclf, (Wingfield;) and
On Monday, the 2 Ith day of March next,
!:i like manner, at tho court house in tho COUNTY
of MORGAN, the following named N KG HOES,
belonging to thc State ind attached to thc Grceuesbor-
ougli and Madison station, together with tho Mules,
one Horse, Carts, Tools, Ac. connected thereto :
London, Benjamin, (Bastin,) Willis, (Crosby,)
receivers and tax gatherers until paid into the Trcas-
hunks at
ction or
payment. All these officers, are by law subject to
tlic directions of thc head of the Department, end all
deposites made of hoods, notes or money under bis
directions, are mado in strict compliance with his or-
dinary duty. Ilis power over the deposites is con-
nccted in argument with tho regulation of tin* cur
rency, and the Secretary is severely censured for at
tempting to wrest all control over both from Con
gress, t:i place it in tho hands of tho Executive.
With a certain consumption of a portion of the >en-
ulc’s tii ic, and no lilt.*: danger of exhausting its pa
tience, I venture to give, by reference to public
dooume ts, a brief sketch of thc history of this
Sheplcy,) to collect the revenue as he should think
beet. The first Bank of tho United States
uld think ury then over tho money that is in the custody of the
being es- I 1 reasurer 1 Precisely what Air. Taney bn» since,
Ac., belonging to Government, were deposited in the J “ The Secretary of the Treasury or any other offi-
mothcr Bonk and its branches, and such other banks cer of the Department, never has the possession or
as tho Secretary chose to direct in the supposed or-1 custody of any part of the public moneys, (except in*
dinary exercise of his acknowledged power. The cases hereafter specified.) And the possession or
subject of thc control and accountability for public custody of tho Treasurer is, as already stated, excr-
inonejs, never was neglected by Congress ; and in I cised through thc Banks.”
February, 1794, a committee of tho House of Repre-1 Thus guarded was, and thus guarded is, the public
sentatives, by their chairman, Air. Sedgwick, put to Treasure. The report contains also an analysis of
Col. Hamilton these queries—5th rol. State Papers, I the duties of thc respective officers of the Department.
Finance 1, page 274, 275. I I will confine my reading to the duties of the Sccre-
“ 1. Whether money collected on account of the U. tary and Treasurer.
Stat ss, and deposited in Banks, is from the timo of “ The Secretary of the Treasury superintends tho
deposite, considered as in the Treasury ? I collection, and receipt, and the disbursements of pub-
“2. Arc any, and if any, what means necessary | lie moneys. In consequence of this, all authority
to subject money so deposited, to tho control of the J for transferring thain from ono public agent to an-
Treasurer. 1 other, or for the final disbursement of them, originate
“ 3. Iu case money so deposited is not considered I with him. He directs the drawing of moneys into
as in the Treasury from the time of deposite, who J the Treasury and regulates the time, manner, and
is, from that time until it passes into tho Treasury, circumstances, subject to thc sanctions prescribed by
responsible to the United States." law ; and judges exclusively, of the other officers of
The answers to these questions will show what tho Department, when and what disbursements arc to
then was the true theory on several points now un-1 bo made, subject nevertheless to the check of tho
di r discussion. I Comptroller, who in countersigning warrants, is
In his letter of February 25, 1794, Col. Harnil- jointly responsible with him for their being confurm-
ton answers— J able to appropriations made by law; and to tho fur-
Tj question first—“ All moneys collected on ac- ther chock and settlement of the accounts of all per-
count of tho United States, and deposited in banks sons to whom ho may have caused advances of public
to the credit of the Treasurer, are considered as in I money by the Auditor and Comptroller. All war-
tho Treasury from thc time of deposite. The steady I rants for the payment of money into the Treasury, or
course with regard to standing revenue, is, that the for the payment of money out of the Treasury are first
money deposited in banks passes immediately to the signed by him. It is also his duty to decide on thc
credit of the Treasurer. But it is necessary, to dis- forms of keeping all public accounts.”
charge the payers, that receipts of the Treasurer Such are the duties of the Secretary. Now, sir, to
should be endorsed upon warrants signed by the Sec- those of the Treasurer.
retary, countersigned by the Comptroller and regie. “ The Treasurer keeps and disburses the moneys
tered by the Register, which is the course regularly of tho United States. All his receipts and disburse-
obsorved.” _ I mer.ts arc sanctioned by warrants, of the description
To question second.—“ Afier moneys are deposi. j already given—as incident to these duties he draws
ted in banks to the credit of thc Treasurer, they are under the direction of the Secretary, all bills which
in A is control, though they may not legally be dis- I are drawn for public money arising from sources for-
bursed but upon warrants of the above description. I eign or domestic ; which bills, us already mentioned.
If deposited without passing, in thc first instance, to I are always registered, or entered aud countersigned
tho ere lit of the Treasurer, the means used for pla- J by tho Register.’
branch of our polity. By tho act of Congress of ! of the like kind.’
cing them in his custody and disposal, are warrants
1789, sec. 3 ), it is provided that no’hing shall be
received in payment of duties but specie. No.v, sir,
this first act on this subject has never been obeyed.
Tho :rctarv of tho Treasury not only directed
where t .e depository of bonds was to lie made by his
collectuis, Ac. as he had a right to do, but he disre
garded t ac provision of the act of Congress, and per
mitted t ink notes to be taken as s]>ecic. On thc 23d
of April, 1790, in otodiento to a call of the House of
Representatives, Mr. Hamilton made a detailed report
on th.c s abject of that act of 17S9, “ imposing duties
on goods, wares, Ac.” The part relating to sec. 3.1,
although, long, is so striking that I shall read thc
whole of it.
“Sec. 30. This section provides for the receipt
of the duties in gold and silver coin only. The Mcc-
To the third question.—“ la respect to any mon
eys of tho United States deposited in Banks, but not
to thc credit of the Treasurer, tho bauks arc consid
ered as directly responsible to tho United States ; in
the case of deposites to the credit of the Treasurer,
they are respoi sible in the first instance to him—ul
timately, to the United States.”
Thus it appears, Mr. President, that from the foun-
From this accurate account of the duties of the
Secretary and Treasurer, it is apparent that nothing
has been done by Mr. Taney which is not in strict
conformity with the views of the Committee of 1794.
They say in a subsequent part of their report, “ a
succinct idea of the duties of the officers of the Treas.
ury, so far as respects thc disposition of the public
moneys, and in regard to thc settlement of public
accounts, may be obtained by considering the Secre
tary of tho Treasury as responsible for the issuing of
dation of the Government, deposites were made in propter directions for the transferring and disposal of
bunks under tho direction of the Secretary of the all moneys, in the first instance, and that no expendi.
Treasury—were put by him afterwards in tho same ture be made except in pursuance of appropriations ;
banks under thc control of the Trc.isurcr, when, and the Treasurer as the sole agent for tho disposal of oil
not till then, they were considered as in the Treasury, moneys once placed in the Treasury ; thc Coinptrol-
subjcct to be drawii to answer appropriations, and for I ler as responsible that no warrant shall be counter,
no other purpose whatever. That in removing nion- i signed, for which there is not an c?usting appropria-
ey from one bank to another for the public couven. tion, and jointly with the auditor, xhat no illegal or
rotary has considered this provision as having for oh- j ience, either for the facility of paying the creditors improper charges shall lie admitted in the settlement of
ject the exclusion of payments in tho paper cumsions j of the nation, the money removed or transferred con- the accounts. The responsibility of tin: Register is,
Abraham, (Healing,) Billy, (Kcnnon,) Axuin, (Car- of the particular Stales, an I tiie securing tho im ne- J tinuing always to the credit of the Treasurer, was in I that the records be truly made, and the accounts and
Stfi'b) Torn, (M’Gar,) Ned, (Ramsay,) George, (Baas- j chute or ultimate collection of the duties in specie, as ! the Treasury until drawn out by regular warrants, to I voucbocs carefully preserved.”
ley,) I’oter, iCargilK:,) D.ck, (Dent,) Henry, (Smith,)
Joshua, (Al'Gar,) Jerry, (Ruunclls,) Larkin, (I’or-
ter,) Abraham, (Collins,) Nathaniel, (Berry,) Joseph,
(l’ope,) Joseph, (General Pope,) George, (Whiter,)
Joe, (Rowland,) Ixuidan, (Briant,) Caleb, (Rowell,)
Shade, (Jackson,) Joo, (Al’Gar,) Nathan, (Collins,)
Berry, ( Thompson,) Jerry, (Lumpkin,) Harry, (Tor-
ter,) Ellick and Alar!;, (Burton ;) and
intended to prohibit to individuals the right of pay-t be disbursed under appropriation laws. No one ever I These are still the respective duties of the officers of
ing in any thing except gold or silver coin, but not to I imagined that there was assumption or stretch of] the. Treasury, with some improvements for additional
On Fruity, the 'dSth of March next,
hinder the Treasury from making such arrangements
as its exigencies, the speedy command of the public
resource, and the convenience of thc community,
might dictate ; those arrangements being compati
ble with the eventual receipt of tho duties in specie.
power in those arrangements of tho head of thc
Treasury Department. No one ever imagined that j
such an exercise of authority by the Secretary cither
increased his own control, or that of tho Chief Mag-
istratc, over the public treasure, or diminished the
For instance, thc Secretary did not imagine that the ! proper responsibility ol tho Treasurer, or any other
provision ought to la: so understood as to prevent, if j officer in tho Department. These arrangements or
necessary, an anticipation of duties by Treasury | directions of tao Department wore in strict accor-
In like manner, at the court house in the COUNTY riceivablc at the several custom-houses. ' dance with the views of Congress. At the same ses-
of DEKALB, tho following named NEGROES, be- j And if it oug!lt to La un ,
appeared to him that thc principle of a different eon- j very elaborate report was made by a committee ap-
structic a would extend to the permitting the receipt j pointed to examine tho state of tho Treasury De-
oftho notes of public B inks, issued on a specie fund.
Unless it can be supposed that the exchanging of spe-
cio, aft:r it has been received, for tho Bank notes to
be reir :tted to the Treasury, is also interdicted, it
longing to the .Stale and attachud to tho Cherokee
station, together with thc AIulcs, Carts, Tools, Ac.
connected thereto :
John. (Jl.iptisi,) Adam, Z.ich, Jesse, Toney, Hamp
ton. Harry, Tom, (Drummer,) Tom (Jackson,) Walk
er, Jim, (Rutherford,) Aloses,(Akins,)Jacob,(Blount.b
Guy, York, Ben, Isaac, Alilcs, Ransom, l’cter, Jiu,
Beaver, ami Bob ; and
On Tuesday, the 1st of April next,
In like manner, at the court house in tho COUNTY '
of HALL, the following NEGROES, belonging to!
thc State, and attached to the Gainscvillo station to-
gothcr with the Mules, Carts, Tools, Ac. connected i
thereto: i
I’oter, (Bell,) Lowis (Lee,) Hardy, Jerry, (Edson,) !
Jim^ (Corlctt,) Frank, (Willis,) Abraham, (Ogle
thorpe,) Billy, (Kotchum,) Davy, (Mahoney,) Dick,
(Gilliam,) Amos, (Mahoney,) Isaac, (Hardeman,)
Matt, (Smith,) Arthur, (Drummond) Doctor, (Long-
street,) Essex, (Wood (‘Toney, (Toombs) Joe, (Sor-
row,) Jacob, (Freeman,) Adam, Larry, Freeman,
(Towns,) Sam, (Parks,) Jeff, (Walton,) i’oter, (Mills,)
Jeff, (Alihonoy,) Smith, Henry, (Mahoney,) llenry,
(Booker,) and Daniel (Toombs,) and
On Monday, thc 1th day of April next,
In like manner, at thc court house in the COUNTY
of BALDWIN, the following named NEGROES, be-
longing to tho State and attached to tho Milledgc.
vilie and l lawkinsvillo station, together with tho
AIulcs, Calls, Tools, Ac. connected thereto.
Scipio, Jesse, July, Andrew, Moses, Ellick, Au
gust, San , Philip, Sandy, Jim, (llunic,) Spanish
Town Roi ico, Gib, Luke, George, (Mann,) Mareh,
Joe, Anthony, Bratus, Ro'.icrt, Billy, and Gideon.
For the information of those persons who may
wish to purchase, the following sections of the before
niontior.ee act of the Ilegislature are herewith pub.
lished :
“Sec. 4. Re it further enacted by the authority
aforesaid, That thc said Superintendents and each
of them shall, and they are hereby authorized as tho
agent of the State, to execute to the purchaser or
purchasers of said slaves or cither of them, good and
sufficient titles (warranting the titlo thereof only) for
and to said slave or slaves, and deliver unto him or
them, the same, on 6aid purchaser’s paying in cash
one fifth of the purchase money therefor, and the bal
ance in thirty days thereafter, on tendering to tho
•aid Superintendent a certificate from the Cashier of
the Central Bank of Georgia, that the said purcha
ser’s note for thc said balance had been discounted in
said Bank, which tho said Bank is hereby directed
and authorized to do, in such manner and on such
terms us are usual iu discounting on loans: Provided
the same shall not exceed twcnty.five hundred dollars.
“ Sec. 5. Be it further _ enacted by the authority
aforesaid, That, on failure of said purchaser to pay
tho said onc-fifth of the amount of said purchase
money, at tho time of said purchase ; the said Super,
intendent. shall proceed forthwith to resell said
slaves, not crying again the bid of such defaulting
purchaser during said sale, and on failure of said pur.
chaser to pay the balance of said purchase money,
or tender said certificate as aforesaid, within the
space of thirty-days after said sale, said purchaser
■boll forfeit the said one fifth no paid, and said Su
perintendent shall, hn thirty days’ notice being
given thi reef, as aforesaid, resell said slave in the
manner, at tj® place, and on tho terms and condi
tions herein before prescribed.
WILLIAM C. LYMAN,
Superintendent, «t*. Eastern Division.
Jaa. 25—45-Ilt.
•in
security. Tho present Secretary has done no more,
claims power to do no more, than was deemed the
duty of his office by the committee of 1794. Money
in the banks is placed by his warrant to the credit of
thc Treasurer, and is then in the Treasury of the
United States; money on the banks in the Treasu
ry is transferred by his warrant to another bank, and
placed to tho credit of the Treasurer, and is and was
ill either and in transitu still in tho Treasury, intangi.
understood in this sense, it j sion in tho month of May (22d, 1794,) a detailed and | ble for disbursement or use unless previously appro
priated by law. This subject was again agitated in
le'Ul, and a reference made to the great accuracy of
partment, and to report generally and specially ] the details of that of 1794. That committee, Mr.
thereupon. Mr. Abraham Baldwin, a member from | Otis chairman, state, “ that theflepartmont is so orgu.
Georgia, distinguished for his unwearied application nized by law, and the mode of doing business so de-
to his public cutics, his extensive information, his vised as to afford the most perfect security to the na-
sober judgment, and perfect integrity, a political op. tion for the misapplication of the public moneys—
ponent, warmly attached to his party, of the Secre- These moneys do not, iu any instance, pass through
tary of tho Treasury, was the chairman of the coni-1 thc hands of thc Secretary of the Treasury ; he tncre-
xnittce. This report is to be found in the 5th vol. of I ly authorizes the receipts and disbursements by war-
thc AinericanfStatc papers, 1st vol. on finance, 281.1 rants in favor of and upon the Treasurer ; thorn war-
I recommend it to those who wish to understand thc I rants are issued by the Secretary and countersigned
relative duties and powers of the Secretary and all by tho Comptroller, and registered by the Register.”
tho subordinate officers of the Treasury Department. I “ All moneys received by the Treasurer aro depos-
The committee report tho rules prevail ng in thc I itod by him in tho Bank of tho United States and
Treasury Department, and modes of proceeding ob- other banks; and the actual amount of money in
served with regard to the collection, keeping, and the custody of tho Treasurer inay bo at any time as-
dishursciuent of the public money, aud accounting I ccrtaincd, independently of his own returns, by the
for the same. I will content myself with a few ex- statements which are constantly mads and conununi-
tracts bearing directly on tho questions before tho | catcd to the Secretary, by those who collect and ro-
Scnatc. ccivc public moneys into their custody in the different
“ It is a general rule that the Treasurer is the me- ports of tho Union." One would suppose, Mr. Pres-
diuin. of ull receipts and disbursements of public tnon-1 ident, from tho tono and language of honorable rep-
Trcast ry drafts, anticipating the duties, could hard. ] cys, which aro received and disbursed within the U. I rcsentatives, of the President of the United States,
ly !>c reads without some saciifice on tho part of thc I States, and that all receipts and disbursements must and tho Secretary of the Treasury, that there was no
public. As they would be drawn upon timo, and up- i be sanctioned by warrants in favor of, and upon 1 longer safety to the public moneys ; no longer inodes
on the expectation of funds lo bo collected, anJ of | that officer. These warrants are issued by tho Soc- used to prevent misapplication; that now money did,or
course contingent, it is not probable that they would retary o tho Treasury, countersigned by the Comp-1 could by possibility, pass through tho hands of the
‘ - J: * — 1 trol'er, and registered by the Register.” I Secretary. Yet all remains as it did, the duties of tho
This general rule, with regard to receipts, has j respective officers, and their mutual checks upon each
been carried into effect by five modes of proceeding. I other, described as they are in the report of 1794 and
“ 1st. By bills or drafts drawn by the Treasurer, I 1801, with minuto precision,
under the special direction of the Secretary of the I May I be pardoned sir, from respect lo the pccu-
Treasury, upon those who have in their hands pub- I liar position of the Secretary of the Treasury, for
lie moneys,” Ac. ' • I turning asido from tho question before us, to vindi-
“ 2d. By deposites made by the supervisors of the cate him for giving us an argument in answer to the
revenue, and tho collectors of the customs, in the I call for documents 1 I found in the current of rc-
sevcral banks, pursuant to a general direction from I search, a report made in 1793, February 1th, in an.
thc Secretary of the Treasury, which immediately swer to resolutions of inquiry directed to the head
upon their being made, are passed to the credit of of the Treasury Department, Col. Hamilton. Hoar
the Treasurer, the officer making the deposites ta- I what ho ventured to say, and said vrithout reproach :
king duplicate receipts from thc bank in which it is “ The resolutions to which I am to answer, were
made ; one of which is immediately forwarded to the I not moved without a pretty copious display of the
Treasury, and the bank making weekly returns, ono I reasons on which they were founded!. These reasons
to the Secretary of tho Treasury, another to the I are before tho public, through tho channel of tho
Treasurer, which specify the deposites made,” Ac. I press. They are of a nature to excite attention;
All tho five modes aro approved by the committee. I to beget alarm; to inspire doubts. Deductions of a
Those J have just quoted prove that thc Secretary I very extraordinary complexion may, without forcing
then exercised all the power since exerted over the I the sense, be drawn from them. I feel it incumbent
collection and deposite of public moneys. Now Sir, I on me to meet tho suggestions which havo been
as to the safe keeping, after collection. I thrown out with decision and explicitness. And
“ Tho Treasurer, pursuant to general directions I while I hope I shall let fall nothing inconsistent with
from the Secretary of the Treasury, keeps the pub-1 that cordial and unqualified respect which I feel for
lie money under his control, in the several banks. I the House of Representatives; while I acquiesce in
Formerly tho Banks of North America, New York, J the sufficiency of tho motives that induced on their
Massachusetts, and Maryland, were places of deposite. I part the giving a prompt and free course to tho in-
At present, the public moneys are kept in the Bank | vestigation proposed, I cannot but rcsoWc to treat
of the United States, and its several offices of dis-1 the subject with a freedom which is due to truth, and
count and deposite at Boston, New York, Baltimore I to thc consciousness of a pure zeal for the public in-
and Charleston, and in the Bank of Providence." I tcrcst.” Mr. Hamilton gives at length tho explana-
The Senate will perceivo that Mr. Hamilton changed I tion sought, and concludes : “ Is it not truly matter
the place of deposite after the United States Bank I of regret, that so formal an explanation, on such a
was chartered, as he had'directed the deposites to be | point, should have been made requisite 1 ’Could no
made in ihe State Banks previously, without legkla-1 personal inquiry, of either of the officers concerned,
live direction, os none was thought necessary, for no have superseded the necessity of calling the attention
one, even in the time of strong prejudice and hasty of the House of Representatives to an appearance in
excitement against him, considered it as even an act 1 troth so little significant ? Was it seriously suppoea.
of doubtfol propriety. ble that there could be any real difficulty in explain-
“ The Treasurer never has any public money in “B that when the very disclosure of it
bis possession or custody, which fa not in fact de-1 prooeeded from a voluntary act of the head of this
posited in Bank, from the moment his possession or I department r
custody commences till it ceases by the disbursement Such, sir, was the language of a man of high sen-
of it for public purposes, Ac." So it is now, and I sibility jealous of his reputation, to ncaU of the House
ever has been, from that hoar to the present day. I of Representatives. The temper it displays had bet-
But sir, what control had the Secretary of the Treas-1 ter have been subdued. Its display docs not diinin-
sccins difficult to conclude that the receipt of them,
in the :urst instance, is forbidden.
“ Such were thc reflections of tho Secretary with
regard to the authority to permit Bank notes to be
taken in payment of duties. The expediency of
doing it appeared to him to be- still less questionable.
Tho extension of their circulation, by tho measure,
is calculated to incrcaso both the ability and the in.
clination of the Banks to aid thc Government. It al
so accelerates the command of thc product of tlia rev
enues tor the public service, and it facilitates thc
payme nt of the duties. It has the first effect, becauso
the course of business occasions thc notes to be sent
beforehand to distant places ; and being ready on thc
spot, either for payment or exchange, the first post
after t io duties become |siyahlc, or are received, con
veys t'lom to tiie Treasury. The substitution of
obtain a ready * lc but at a discount, or upon long
credit. As thoy would also bo more or less liable to
accidc .t, from the failure of expected payments, there
would be a continual degree of hazard to public cred
it. And to other considerations, it may be added
that the practice of anticipations of this kind, is in
its nature, so capable of abuse, as to render it an in-
' eligible instrument of administration, in ordinary
cases, and fit only for times of necessity.
“Ifthe idea of anticipation should l>o excluded,
then tho relying wholly upon Treasury drafts would
lie productive of considerable delay. Thc knowl.
edge that funds were in hand must precede the issu
ing ol them. Here would, of cour.- c, be some loss of
time. And as the moment of demand, created by the
course, of business, would frequently elapse, there
would as frequently be a farther loss of time in wai-
ting far a new demand. In such intervals, the pub.
lie service would suffer, the specie would be locked
up, and circulation checked. Bank notes, being a
convenient species of money, whatever increases their
circulation, increases the quantity of current money.
Henc: the payment of duties is doubly promoted by
their aid; thoy at once add to the quantity of medium,
and serve to prevent the stagnation of specie.
“ The tondoncy of tho moasure to lessen the ne
cessity of drawing specie from distant places to the
scat cf Government, results from the foregoing con
siderations. Tho slow operations of Treasury drafts
would frequently involve a necessity of bringing on
specie to answer the exigencies of Government; the
avoiding of which, as much as possible, in tho par
ticular situation of this country, need not be insisted
upon.
“ Hut convinced, as the Secretary is, of the useful
ness of the regulation, yot, considering the nature of
the clause upon which these remarks arise, he thought
it Ills duty to bring the subject under tho oye of the
House. The measure is understood, by all concern
ed, tc be temporary. -
“ Indeed, whenever a National Bank shall be in
stituted, some new disposition of the thing will be a
matter of course."
This consti action of the act of Congress was qui
etly i.cquicseed in, indeed legitimated, by the singu
lar authority given to tho Secretary by the subsequent
act of 1799, quoted by tho Senator from Maim. (Mr.
ish our respect for the author. That it was dis-fay.
ed without reproof, will go far to reconcile those
disposed to complain of Mr. Taney’s calm and manly
argument. To return to the questions before Uic
Senate. The two reports to which I have referred,
were made during tho Administrations of General
Washington and Mr. Adams. The powor of the
Secretary of the Treasury in directing the places
where deposites should bo made, was exercised in the
same manner and to a like extent, under Mr. Jeffer
son’s administration, when Congress determined not
to ro-chartcr tho Bank of tho United States. Mr.
Gallatin did precisely what has been done by Mr.
Taney; he directed deposites to be made in the
State banks. His report in answer to a call made in
the House of Representatives, 13lh January, 1S12,
now is before gentlemen, who will find it in tho 2nd
vol. of Finance, Cih e^Amcric • State papers. Mr.
Gallatin selected tho banks; here is a fist of '.em ;
prescribed the Terms upon which tho deposites should
be received and held. Ho exercised this power with
out question or reproach. No one seems to have
considered that there was any dangerous encroach
ment upon tho duties of the Treasurer, or any usur
pation, any exertion of undelegatcd powers; It was
reserved for thc acuteness of tho present day to make
these important discoveries. I have already advert
ed to tho notices taken in Congress of the action of
the Treasury Department during the administration
of Mr. Madison and Mr Monroe. Mr. Rush, who was
at the Lead of the Department during tho Presidency of
Mr. John Q. Adams, is known to hold the same opin-
ions on this subject that governed all his predecessors.
Within the period oftime from 1789 to 1832, tho gov-
ernment deposites have varied from threo to fifty mill
ions of dollars per annum;and yet with theso vast sumB
to transfer from bank to bank at his discretion, not
even a suggestion was mode that tho Secretary of the
Treasury was exercising a dangerous control over
thc public treasure. Are we too sensible, or were our
predecessors too insensible, to tho consequences of
permitting tho Secretary of the Treasury to change
the place for safely and conveniently keeping our
money ? One thing cannot be disputed, that tho ac
cusation against tho present Secretary of assuming a
new, unheard of, and monstrous power, is as singular
as it is unjust.
The Senator from S. C. (Mr. Preston) who last
addressed the senate, imputes theqircsent distress and
the present pressure in the money market, to the
shock given to public confidence by the violations of
the chartered rights of thc Bank. Lot us examine,
Mr. President, thc violations enumerated by him—
The first on his list is thc correspondence of tho Chief
Magistrate with the Government Directors. The
honorable Senator alleges, that by the charter, the
private accounts of individuals aro sacred, and that
this provision has been disregarded in the secret in
vestigation required by the President of tho directors
made by them for his use. In point of fact, there
is a mistake fatal to the gentleman’s conclusion.—
No secret investigation was made by the Government
directors, nor was a secret investigation. required by
the President. The President called on those gen.
tleincn for information resting on their personal
knowledge of facts of whose existence there had
been rumour. To comply with this call, the direc
tors made un open investigation ; an investigation
known to all their brethren of the Board. Tire only
thing concealed' was the use intended to be made by
them of the facts discovered by their research. This
was concealed from an apprehension that thedisclo.
sure would' shut them out from the means of further
information. An apprehension but too well founded,
as was shown as soon as their purpose was made
known to the Board. Where does the gentleman
find any prohibition in the charter to tho examination
or disclosure of the accounts of individuals with tho
Bank by any of thc directors ? Tho Secretary of
tho Treasury, who is authorized to examine tho
bank books, is forbiddon to look into privato ac
counts ; but this prohibition does not extend to the
examinations made by Congress, nor to any tbe
Chief Magistrate m <y choose to institute for the ex
ecution of their respective trusts. Directors must
examine into the private accounts of all, in order to
do their duties to thc institution. It is true that
there is an understood obligation not to injure indi
viduals by disclosing the condition of their affairs
with the institution, but this is subordinate to higher
obligations to the institution and to the public. By
a clause in the charter this higher obligation is rec
ognized. If debts are created beyond a limited
amount, without a previous authority by law of tne
United States, a personal liability is incurred by the
directors; those who were not presont or who being
present dissented when this extended debt was con
tracted, are exempted from this liability—if within a
limited time the fact is made known to the President
of the United Slates and to tho stockholders at a
gencitil meeting, which they havo powor to call/or
that purjioso. Why, sir, every stockholder has a
right lo know how the affairs of the institution are
conducted, and any director has a right to disclose to
them in mass, or in detail, the transactions of thc
board in tbe instances of favoritism or imprudence in
granting aecommodal ions to individuals—it would
bo very strange if the directors of the government
have not the right to state to Congress, whon in ses.
sion, or to the President when Congress is not in ses.
sion, as the constitutional representatives of tho great
stockholders, tho United States, the general or the
particular mismanagement of tbe funds put under
their care. The President is authorized to order a
scire facias in the event of misconduct in the bank
justifying a forfeiture of the charter—so is Congress.
Congress have power to order an investigation by a
committee, the President has no specific authority
as to the mode of acquiring information. What is
he to do ? Is be to proceed on vague or uncertain
rumors, or newspaper publications, publications, in
the public journals notoriously decoptious, in the im
pressions they are calculated to produce, publications
in which falsehood is made to look like truth by art
ful concealments and studied misstatements in which
the beauty of truth itself, is deformed and sometimes
made odious by disgusting exaggeration 7 His only re
source is the government directors, they were crea
ted for that among other purposes, and have not
mistaken their true character when they considered
it as part of their duty to give tho Executive informs,
tion. It is deeply to be regretted, ?<Ir. President, that
gentlemen of acknowledged privato worth and high lit- -
crary attainments should staud to each other in the
relation in which now 6tand the government direc
tors, aud-tbo other directors of tho United States
Bank. I will not upbraid the directors appointed
by tho stockholders, bat I will endeavor to show
that the gentlemen appointed by the President and
Senate have not mistaken their true character in the
institution.
They claim to he Government officers—guardians
of thc public interest, to prevent any and every vio
lation of the duties of the Bank by their influence at
the Board, and by giving notice to the constituted
authorities. Appointed by the President, by and with
the advice and consent of the Senate, what can they
be, if they are not Government Officers ? Mere rep
resentatives of stock they are not; for their appoint
ment and continuance does not depend upon the
stock held by Government. If it is sold under an act
of Congress, the Government Directors are .still to
bo appointed, arid still to perform duties at the Board-
—not os the representatives of the stodt
ment, for that has passed into the bands of mawm.
uals, who are entitled to vote upon it to
the number of shares held by each—but as tho rep
resentatives of Gut ernment, for Government purpo-
ses. Now, sir, wlu.t purposes can Government have
for theso Director!, if it is not to watch over the con
duct of the Bank, and in the event of dangerous or.
improper practices Jo make tho immediate disclosure of
, m ’ “ ,nt in i u *y «*iy not be inflicted on tho country?
personal knowledge, when I
• t ^overmaent Directors aro mistaken
tak?fa. tUeLr duiies and powers,othat mfa.
take has been common to all the advocates and oppo-
sers of the introduction of them into the Bank, Mr.
Dallas, in his project for a bank in 1 BIG, proposed
he appointment or five out of tho twenty.five Direc
tors by the President and Sonate, one of the five
Government Directors was to be chosenl.y the twon-
ty-fivo Director*, es President of the institution -
The Directors! of the M other Bank were to
teen Directors for each branch ; one cf them was to
be selected by the Secretary of Treasury, with tho
approbation of tiie President of the United States, as
President of each Branch Bank. Tho committed
who reported the bill to charter the present bank, ad-
opted only the first provision—the appointment of
five Directors t no of whom was to bo President of
the bank. In the House of Representatives,a motion
was made to s rike cut the provision for tho appoint,
ment of the President of the Bank from tlio five Gov
ernment Directors. By tho acquicsccnco of the Chair
man, (Mr. Calhoun) the motion succeeded. Amo
tion was then made to limit the President in the ap
pointment of the Directors, obliging him to take not
more than three from the same place of residence ;
and that, too, ly the consent of the Chairman sue.
cceded. Both these amendments were resisted by
friends of thc b..:.l,
Mr. Robcrlscn, ol*Louisiana, particularly warned
the Chairman that h i might, in vainly striving to
canciliatc the opponents of the bill, render it obnox.
ious to its friends. Practically, for some years, in.
deed until after the appointment of Mr. Biddle, the
President of tin bank was always taken from the
Government Directors. Ho himself would nbt pro
bably hove bee:a chosen, but for his occupying the
place of Government Director. Ho subsequently
resigned, being chosen by the stockholders, and the
resignation was supposed to have bebn made with a
viow to strengthen tho Government at the Board.—
Tho opponents of any Government control in the di
rection of the bank were not satisfied with these
amendments, ar d a proposition was made to striko
tho wholo provision from the bill. In the discussion
of this amendment tho trud character of tho officers
was described. By ono party they were represented
as guardians of tho public interest; as watchmen to
awaken the sleepers when danger occurred; as sen
tinels bn high towers to look out and warn us of ap -
preaching peril. By the other party thoy were call,
ed informers, inquisitors, spies on tho Napoleon plan,
paid by the bank which they were set to watch, and
not by Government, for whom they were watching.
So highly imposing was esteemed their power, and
important their duty, that a member of South Caroli-
na, Mr. Mayrant, proposed an amendment, forbid
ding them to negotiate loans with the bank ; and, os
a compensation lor this inhibition, to give them a sal-
ary of $3009 per s-'iium each: a proposition, which,
although rejected, had a respectable support. As
late as the year 1830 the somo opinion was entertain,
cd of the character of these officers, and an attempt
mode lo carry them into the branches of the United
States Bank. By tbe second section of a bill report,
ed in tbs House of Representatives, to renew tho
bank charter in 1830, tho President was to have been
authorized to appoint a Director in each Branch
Bank of tho United States, as ho now appoints
five in the mother Bank. The committee, by their
Chairman, Mr. McDuffie, say in their report:
“ The authority given to the President of the Uni
ted States to appoint ono of thc directors of. each of
the branches, rests upon the samo principle with the
existing authority to appoint a portion of the direc-
tors of the mother bank.” They, state explicitly,
what that principle is. “ It may be a matter of
great convenience and utility to havo a sentinel to
give notice of any irregularities or abuses that may
creep into tho direction of the several branches.”
Sentinels in the branches as well as in the mother
bank, to give t.otice of irregularities or abuses! Give
notice to whom ’( Certainly to the Government of
the United Sta tes, through the President or to Con-
gross. I think sir, with this current of testimony,
I may assume that the chartered rights of the bank,
have not bcon infringed by any misapprehension of
the character and duties of the Government Direc
tors either by themselves or by the Chief Magistrate.
Tho next violation charged as to the Executive, is
in the assumption of judicial powers, in the infliction
of punishment, upon tiie bank for Offences for which
specific penalties ore prescribed, without the inves.
tigation of facts toforo an impartial jury. Hero
again the honoiable Senator has committed several
important mistakes. The deposites were not remov
ed to punish the bank for any past offences, nor on
a charge of criao. To prevent a continued misuse
of the public treasure, the Secretary alleges they
might rightfully have liecn taken away, but they were
taken away became the bank will expire in 1836—-
The specific prescribed penalties in the charter aro
not exclusive but cumulative, penalties upon tho di
rectors for urisina eagement or for ofiencos for all
consequences of wiich the bank is also liable. To
mention one, the directors are liable to heavy fino
fur lending money to a foreign government without
being previously authorized by act of Congress—
Suppose a loan to a foreign government on tho eve
of war with United States. Will the gentlemen
pretend that the public deposites should be permitted
by the Secretary to remain in the bank and trust to
the recovery of -.ho penalties from the individual di
rectors?
I imagine, sir, that the Senator himself would,
in that event, if in tho Treasury, think it his first du
ty to wrest tho money of tho nation from the vaults
of the institution bbf ere the close of that day on which
ho should obtain knowledge of tho fast. Strange as
it may seem, this part of the charter has been over-
looked by the bank. It is not long since it advan.
ced $600,000 b> a foreign Government, Groat Brit
ain, to meet its engagement with tho United fctates
for the settlement of tho dispute about deporteu
slaves under tbs. last treaty of peace. No wrong
was intended, and tbe transaction was one of conve
nience to the Governments of the United ^teo and
Great Britain, aid 1 should not have adverted to it
but for the etc use given here for the faffure of tho
busk to meet tin payment of tho bBi drawn by tho
Secretary of the Treuury on France, founded on the
same clause in tiie * haxter. Wo see, sir, tiiat when
a foreign govorn nont was concerned, this clause was
net thought olVUJt vhen our own fa alone concern-,
ed the penaltj’ i« reierred to as the justification of
the conduct of iJ*e present administrators of lbs
btlT ,h. But the Sonitor represents the President as
bent on vengeance against tne establishment, and yet
ebrinking from a jmy trial. Where has the Peed-
dent discovers! a deiiiro to abridge the bank of n por
tion of its allotted tine? If governed by a spirit of
hostility, the simile order and issue' of a scire facias^
oven should it hale failed to destroy the institution,
would have been dneply injurious to its credit, far
more fatal than tho removal of any amount of depos
it* the government haspvermadeic the bank.’ Does
the Secretary-imagine that plaolftl® ground for If