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- ’ Vie bad vanished. Not a trace of him *
tin titted, and the water bad left no token
iii.iiihl uTtt. a lew dro|i« of dew upou the
-lyrile-spTSy."WTHWL altera moment'* pause
vtoui-.uneut. Viola kissed olf, and then
I the graceful branch in her bosom,
i . t.iis moment, the music of the pipe
.«- nj,!., iie|r<l from *he neighboring tiers;
i • train wa* now more remarkable and
lii ii*r (inn before. A brilliant humifiiug
iir I ~ho; from the threat, ams hovered above
ti ■ and taer» ol the V i-e. None knew what
to expect; but after several minutes, all
Mailed and graapnd at those bedside them.
Toe Va.e itself was now changing its form.
A md the bowers appeared a human lace;
r ues red and white, bloomed o > the etieeks,
the lips were like a blown carnation; the
non brown bait hung in 'dusters on the neck,
aid was cm true I w.tli flowers; tue alaba?
te> si dp ure itself disappeared, and i ■
form .‘spa.lied, ail became that of a ligui
suitable to the lovely head. The vision ap
peared to uive v *ry gently to the sound of
t ie it isie. and t ) lie so s igiit. mat it might
have risen into the air upon the evening
broe/.e Suddenly one of the ladies ex
c at ne l —-‘lt is viola!” and Viola herself
rose hi a-n.izem uit from the turf, and con
fronted her image. They were exactly
similar, except that when the setting sun
shone oil the neck and shoulder of the
phantom, some of the spectators thought
tiie llesti was slight y transparent- V'iola
w is determined not to he daunted by the
eifo t of puver to which she had challenged
th ■ Magician, and looked .at the figure and
smiled. The blooming face smiled 100, aed
bent slightly towards her; and the ladv
could hardly refrain from Murmuring, while
s te beheld the copy of herself, “flow ex
quisite! How lovely!” With a swift im
pulse she stepped forward to touch the face
with Iters. The music made a loud and
vehement turn, and though to the bystan
ders it seemed that Viola kissed the mouth
of Viola, tire lips and lace that were present
to tile eve and feeling of tha maiden be
came at the instant those of the Magician.
She trembled t ltd shrunk back. The music
from :he thicket changed its and char
acter. . .1.1 became more irregular anil plain
tive. The in igic form lost its animation;
the flowers ami the alabaster returned, and
the N/rnplt and Iter thyrsus were fixed again
in sculptured beauty. Viola stepped close
to the Vase, and lent her brow among the
flow rs ou the brim, appneatly sunk in re
flection. The others expressed their won
der in hasty words and broken sentences,
a.. I when they could turn and look quietly
round, the Magician was again in their cir
cle. Viola raised her h“ad with a thought
ful suite still resting her hand upon the
V. an ! thanked him for his labor. “But,”
sa.d on. of the party to him, “could you
r re:se the charm, and turn Viola iuto a
vase ?”
“That also I would endeavor to do, if I
ha i l erjjPperinissior..”
“V vt have it,” she answered, “nrovided
yon < ill not leave me in that shape, beautiful
as ! is. fur 1 am more accustomed to my
o wo.”
••No,” he said, “if 1 may but approach
tljevase and touch it. 1 can answer for again
ace imnlishing your transformation."
She nodded Iter assent cheerfully, again
he touched hi* instrument. He stood be
fore her. and fixed his deep dark eyes on
her<, whi c h hardly sustained t v, e look. To
the thouc 1 of those around, the forms of
both exoa’>,|ed and grew half luminous in
the twilight. The music which he now
produced, t ongh not loud, was so and
melting that it passed through the very
hearts, and brains and limbs nt all, and
trembled in every fibre of their fingers. It
swelled a-d complicated its volume, and
seemed to grow upward fro u the pipe, and
spin around like i ling 1 ' pillar between earth
and *kv And now it was heard to come,
not merely from the instrument, but from
the hands, and head, and whole figure of
the nlnver, and every hair of his long black
locks gave forth a stream of melody; Viola
was rooted to the ground, but shook and
wavered like a tree in a strong wind. In a
few seconds the breathing, glowing maiden
«mk into a flower-crowned vase, as graceful
' noble as the other which it completely
i .Me I r The Mtg'cian seemed exhaus
ts and iv his efforts and fell snftlv on the grass
ivr '••* pipe beside him. One of Vio a’s
• c.ids whispered her companions, “Now
were it a jest to prevent him front approach
i id thus retain her for a time as she is.”
All assenting, and forming a ring between
t’ ; o \T p-oiati and the transformed damsel,
they dance I laughing around, .so ns to make
it impossible for hint <0 approach. He
• v/e l at them a moment, rose, and took
water in his hand from a fountain n“ ar him,
:nd scattered it over them. Instantly i- iev
sank in sleep on the green turf, tind the last
lon ray of sunset fell on their repose. i.Te
then begun to whisper music on his pipe,
rather than to play it, drew near gently lo
tha vase, and gathering a sprig of myrtle
o ,in (Vp. garland, placed it next his heart.
Ti e lady swiftly emerged from her enehant
niep:, and stood beside him in the clear
night.
Viola. can voti lorgive me ?”
• I’>r w at trim ’ressinn V’ she enquired
“T have beep but for a few moments in a
dream ”
*‘\V,i* it a' inn one?" said the Magi
clan.
She cast down her eyes, and it was a mo
jn-’Ui hel"o -e she replied.
‘•Not painful. But what is your offence ?”
“Have yon not Ins vnnr tnvttle ?"’
She felt for it, and blushed to find it mis
sing.
“Was it for this that you said it was ne
cessary von should approach me in order to
restore me to mv present form ?”
lie colored >mi!ed. and said, “von have
guessed well. Bn! you have not yet granted
me “anion.”
She h“ld out h"r hand ; he pressetl it to
hi* lios- and she qurs inned him anew.
‘ Tell me whv von selected rue for the
object of your art instead of calling some
g> ,H v *tr legion of phantoms out of noth
ing ?”
•‘Have you ” he replied, ‘nn feeling in
Vaor hear* which makes von of greater im
portance to me than the fairest spirit that
over *h it from t tat to earth He paused
Tor an i-tst io» : an I as s' e mn *e no answer,
h continued: 1 could indeed have called
ti multitude o r h dogs out of oir. all differ
ent, but 1 could n >t have give any of them a
human heart to love me: and von are the
first 1 have found whom T cont.l love, and
having in vourself answering affection.”
“Will you not release our friends ?” asked
Vt and >.
“They will awake,” said he, “at the rising
of the moon.”
When the mo in rose thev awoke, but
Viola md the Magician had departed from
the I'alace of Morgana Their friends
fun id T'-,sarlno in their ears the fragments
of aeh mi h"‘W *h“V imagined th<*v Ol'lst
■ "g 1 during tha'r sleep, and of which
r vis the purport : -
1
1 m » t t
! Clegs' teir./i tv >il!y **>f plcAfflt dr**vnsj
Though change ant] sorrow wc now shall
stray.
Where lime no longer a son-flash seems.
2
Away fr.im the blooming hours of joy
That ne’er were loaded wtlh care or pain ;
From a land where earth was all a toy,
Ami enough was real, enough for mau.
3
We shall struggle, and toil, an-' mourn.
t)nr sky will oilru be dark above,
But within us the flame ol song shall burn
And still it will be our bliss lo love.
PRESIDENT'S MESSAGE.
f Concluded.)
Ala ge and highly respectable portion of
■ iir banking institution* are. it affords me
ileigned pleasure to state, exempted trom
. blame on account of this seeonil delin
( icttcy. They have, lo their* great credit,
mi only continued to Intel then engage
ments. but hive even repudiated the
“rounds of suspension now reported to.—
It is only by such a course tuat the confi
dence and goodwill of the coo muuity can
be preserved, and, in the sequel, the best in
terests olthe institutions themselves promo
ted.
New dangers to the hanks .are also daily
disclosed from the extension of that system
••( extravagant credit of which tiny are the
pillars. Formerly our foreign commerce was
principally founded on an exchange of coni
uiodites, including the precious metals, and
leaving in its transactions but little foreign
debt. .Such is not now the case. Aided by
the fseilities afforded by the banks, mere
credit has become too commonly ihe basis
ol ir-ule. Many of the banks themselves,
not content with largely stimulating this
system among others, have usurped the bu
siness. while they impair the stability, of
the mercantile community: they ha>e be
come borrowers instead of lenders; they es
tablish their agencies abtoad; they deal
largely in stocks and merchandise; they en
cour ige the issue of State securities until
the foreign market is glutted with them;
and, unsatisfied with the legitimate use ol
their own capital and the exercises of their
lawful privileges, they raise, by large loans,
additional means for every vsriety of specu
lation. The disasters attendant on this devi
ation from the former course of business in
this country, are now shared alike by batiks
and individuals, to an extent of which there
is perhaps no previous example in the annals
of our country. So long as the w illingness
of the foreign lender, and a sufficient export
of out productions to meet any necessary
partin' payments, leave the flow of credit
undisturbed, all appears to be prosperous;
hut as soon as it is checked by any hesita
tion anroad, or by art inabi'ity to make
payment there in our productions, the evils
of the system are disclosed The paper
currency which might serve for domestic
purposes, is useless to pay the debt due in
Europe. Gold and silver are therefore
drawn, in exchange for their notes, (rout the
banks. To keep up their supply of coin,
these institutions are obliged to call upon
their own debtors, who pay them principal
ly in their own notes, which are as unavaila
ble to tbent as they areto the merchants to
meet the foreign demand. The calls nfthe
a.oiks, therefore; ':n suelt emergencies, ol
necessity, exceed that demand, and pro
duce a conesponding curtailment sf their
accommodations and of the currency, at
the very moment when the state of trade
renders it most inconvenient to be borne.
The intensity of this pressure on the com
munity is in proportion to the previous lib
erality of credit and consequent expansion
of the currency ; forced sales of property are
made at the time when the means of pur
chasing are most reduced, and the worst
calamities to individuals are only at last ar
rested, by an open violation of their obliga
tions by the banks, a refusal to pny specie
for their notes, and an imposition upon the
community ofa finetuating and depreciated
currency.
These consequences are inherent in tire
present system. They are not influenced
by the banks being latgt: or small, created
by National or State Governments. They
are the results ol the irresistible law sos trade
and credit. In the recent events which
have so strikingly illustrated the certain ef
fects of these laws, we ha»e seen the bank
of the largest capital in the Union, estab
lished under i National charter and lately
strengthened, as we were authoritatively in
formed, by exchanging that lor a Stale
charter, with new and unusual privileges—
iua condition too, as it was said, ol entile
soundness and great prosperity —not mere
ly unable to resist these effects, but the
first to yield to them.
Nor is it to be overlooked that there exists
a chain of necessity dependence among
tlies? institutions which obliges them, to a
great exfont, to follow the course of others,
notwithstanding its injustice to their own
immediate creditors, or injury to the par
ticular community in which they are placed.
This dependence ol a bank, which is in pro
portion to the extent u! i ,s debts for circu
lation and d<-posites is not purely on others
in its own vicinity, but on all tho‘ e
connect it with the centre of trade. Dis
tant ha ks may fail, without seriously affect -
in-i those m our principal commercial cities;
hut the failure of the latter is felt at the ex
tremities oft In* Union. The suspension at
New York, in 1837, was every where, with
very few exceptions, followed as soon as it
was known; that recently at Philadelphia
immediately affected the banks of the South
and West in a similar manner. This de
pendence of our whole banking system on
the institutions in a lew large cities, is not
found in the laws of their organization, but
in those of trade and exchange. Th., banks
at that centre to which currency flows, and
where it is required in payments for mer
chandize. liohi the power of controlling these
in regions whence it comes, while the latter
possess no means of restraining them, so
that the value of individual property, and
the prosperity of trade, through the whole
interior of the country, are made to depend
on the good or had management of the bank
in'.: institutions in the great seats ol trade on
the seaboard.
But this chain of dependence does not
stop litre. It does not terminate at Phila
delphia or New York. It reaches across
the ocean, and ends in London, the centre
of the credit system. The same laws of trade
which give to the banks in our principal
citi'-s power over the whole banking system
of the United States, subject the former,
i in their turu, to the money power in Gr at
Britain. It is not denied that the suspension
| of the New York banks in 1837, which wa*
followed in quick succession throughout the
i Union, was produced by an application of
that power; and it is now alleged, in exten
j uatinn of the present condition of so large a
portion of our banks, that their embarrass
ments have arisen from the same cause.
From this influence they cannot now en
tirely escape, for it has its origin in the
] credit currrn'des ol the two countries ; it is
i strengthen"''! by the current of trade and
exchange, which is centred in London, aud
. is rendered almost Mrrwiflrild* by the large
debts contracted there by our merchants,
our bank*, and our States, it is thus that
the introduction of anew bank into Ihe
most distant of our villages, places Ihe "bu
siness ol that village within the influence of
the inonev power in England. It is thus
that every new debt which we contract in
that country, seriouslv affects our own cur
rency, and exteuds over the pursuits of our
citizens its powerful influence. We cannot
escape from (his by making new banks;
great or sura.l, S'ate or National. The
same chains which bind those now existing
tu the centre of this system of paper credit
must equally fetter every similar institution
we create. It is only by the extent ta which
this system has been pushed of late, that we
have been made fully aware of its irresisti
ble tendency to subject our own batiks and
currency to a vast controling power in a for
eign land---»ml it adds anew argument to |
tlie-e which illustrate their precarious situ
ation. Endangered in the first place by
their own mismanagement, and again by the
conduct of every institution which connects
them with the centre of trade in our own
country, they are yet subjected, beyond all
this, to the effect of whatever measures pol
icy, necessity or caprice may induce those
who control the credits of England to re
sort to. I mean not to comment upon these
measures, present nr past, and much less
to discourage the prosecution of fair com
mercial dealing between the two cour.tries,
based on reciprocal benefits ; but it having*
now been made manifest that the power of
inflicting these and similar injuries is, by
the resistless law «fa credit currency and
credit trade,equally capahle of extending
their consequences through all the ramifi
cations of our bankine system, and by that
means indirectly obtaining, particularly when
our bauks are used as depositories of the
public moneys a d..r.gerous political it.flu
cure in the United Slates. I have deemed
it my duty to bring the subject to your no
lice, and ask for it your-erious considera
tion.
Is an argument requred beyond the exposi
tion of these facts, to show the impropriety of
using our banking institutions as depositories
of the public money ! Can we venture not
only to encounter the risk of their individ
ual and mutual mismanagement, b t, at the
same time to place our foreign and domes
tic policy under the control ot a foreign
moneyed interest ? To do so, is to impair
the independence of our Government, as
the present credit system has already im
paired t’tc independence of our banks. Jr
is to submit all its important operatio; s,
whether of peace or w ar, lo be controlled or
thwarted at first by our own banks, and
then by a power abroad greater than them
selves. I cannot bring myself to depict the
humililation to which this Government and
people might be sooner or later reduced, if
the means for defending their rights are to
be made dependent upon those who may
have t e most powerful of motives to im
pair them.
Nor is it only in reference to the effect of
this state of things on the independence of
our Government, or of our banks, that the
subject presents itsell for consider tion. It
is to be viewed also to its relations to the
general trade of our country. The time is
not Ion? past, when a deficiency of foreign
crops was thought to afford a profitable
market for tue surplus ofuur industry, but
now we wait with feverish anxiety the news
ol the English harvest, not so much from
motives of commendable sympathy, but tear
ful h-st its anticipated failure should narrow
the field of credit there. Does not this
speak volumes to the patriot 1 Can a sys
tem he beneficent, wise or just, which cre
ates greater anxiety fur interests dependent
on foreign credit, than for the general pros
perity of our own country, and the profita
ble exportation of the surplus produce of
our labor ?
The circumstances to which l have thus
adverted appear tome to afford weighty rea
sons, developed by late events, to be added
to those which I have ou former occasions
offered, when sttbmifing to your better
knowledge ami discernment, the propriety of
separating the custody of the public money
from banking institutions. Nor has any
thing occurred to lesson, in my opinion,
the force of what has been heretofore urg
ed. The only grounds on which that cus
tody ca tbe desired by the banks, is the
profitable use which they may make ol the
money. Such use would be regarded in
individuals as a breach of trust, or a crime
of great magnitude, and yet it may be,rea
sonably doubted whether, first and last, it
is not attended wi*h more mischievous con
s quencc.s, when permitted to the former
than the latter. The practice of permit
ting the | üblic money to be used by its k iep
ets as here, is belli ved to be peculiar to
this country and to exist scarcely any whete
else. Toprocuieit here, improper influ
ences are appealed to ; unwise connections
are established between the Government anil
vast numbers of powerful State institutions ;
other motives than the public good are
brought to bear both on the Executive and
Legislative departments, and selfish com
binations, leading to special legislation, are
formed.
It is made the interest of banking institu
tions and their stockholders throughout the
c7.nion to use their exertions for the increase
of taxation and the accumulation or asur
plus revenue; and, while an excuse is affor
ded, the means are furnished for those ex
cessive issues which lead to extravagant
trading and speculation, and are ( he torerun
ners of a vast debt abroad, a.ud a suspension
of the banks at home.
Impressed, therefore, as I am. with the
propriety of the funds of the Government
being withdrawn from the private use of ei
ther banks or individuals, and the public
money kept by duly appointed public age. is
and believing as 1 do, that such also is the
judgment which discussion, reflection and
experience have produced on the public
mind, I leave the subject with you. It is,
at all events, essential to the interests ol the
community and the business ol the Govern
ment, that a decision should be made.
Most of the arguments that dissuade u*
from employing banks, in the custody and
disbursemet of' the public money, apply with
equal force lo the receipt of their notes for
dues. The difference is only inform. In
one instance, the Government is a creditor
for its deposites. and in the other for the
notes it Ito'ds. They afford the same op
portunity for using the public moneys, and
equally lead to all the evils attendant upon
it, since a bank can as safely extend its di
counts on a depnsite of its notes in the
hands of a public officer as on one made
in its own vaults. Oil ihe other hand, it
would give to ihe Government no greater
security, for, in case of failure, the claim
ol the noteholder would be no better than
that of a depositor.
1 am aware that the danger ol inconveni
ence to the public,and unreasonible pres
sure upon sound hacks, have been urged as
objections to requinng the payment of the
revenue in gold and silver. These objections
have been greatly exaggerated. From the
best estimates we may safely fix the amount
ot specieinthe country at eighty-five mil
lions of dollars, aud the portion of that which
would be employed at any vue time in the
receipts and disbursement.- of t/ie Govern
ment; even ii the proposed change w■ r;
made at once, w-.ii ld not, it is now, alter toi
ler inveetig-ai on, b lievud, exceed tour or
five millions. It I lie «m ,-e were giadual,
several yea s would il.-qs'r before fnat sßin
would be required, wuh annual op(*orluni
ties in the meantim«to .tiler tlie law. saoiild
experience prove it to be oppressive or in
convenient. The portions ol Ihe coutmuni
ly on wboss ba-mess the change wool t im
mediately operate, are i omparaiiveiy small
nor is it believed that its effect would be m
the least unjast or injunoi s lo them.
Inthe payment ol duties, which consti
tute by far the greater portion ot the reven
ue, a very targe proportion is derived (ioin
foreign commission houses and agent* of
foreign manufacturers, who sell the goods
consigned to then , generally, at auction,
and alter paying ihe duties out ol t lie aval s,
remit t' c rest abroad in specie or its equiv
alent. That the amount ol duties should,
in such cases, he also returned in specie,
can hardly be made :> matter of complaint.
Out own impoitiug merchants by w hom ihe
residue ol the duties is paid, are not onl>
peculiarly interested in maintaining a sound
currency, which the measure in question
will especially promote, but are, liom the
nature of their dealings, hesi able to know
when specie wi-l ho reeded, and to procure
it with the least dificultv or sacrifice. Re
siding. 100 s'tuost universally in places
where the levenue is received and where
the drafts used by the Government lor its
disbursements must enure .irate, iiitv Ii vt
every opportunity to obtain and ’ use them
in I lace ol specie, should it be for their iu
t.-resi or convenience. Ol the number ol
these drafts, and the facilities they may af
ford, as well as of iiie rapidity with which
the public funds are drawn and disbursed,
an idea may be formed Irotn the fact that,
of nearly twenty millions ol dollars |>aici to
collectors ami receivers during the present
year, the average amount in their hands at
anyone time has not exceeded a million
and a half; and of the fifteen millions receiv
ed by the collecto.i of New York alone du
ring the present year, the average amount
held by him, sut.jc ct to draft during each
week, has been less than halt a million.
The ease and safety of the operations of
the Treasury in keeping the public money
are promoted by the application of its own
drafts to the public dues. The objection
arising from having them too long outstand
ing might be obviated, and they ye made to
afford to mere! ants and banks holding them
an equivalent for specie, and in that way
greatly lessen fheamount actually inquired,
it ill less inconvenience will attend t e re
quirement of specie in purchase of public
lands. Such purchase, except when made
on speculation, are. in general, but single
transactions, rarely repeated by the same
person; and it is a fact, that for the last year
and a half during which the notes of sound
banks have been received, more than a tno
iety ol these payments has been voluntarily
made in specie, being a larger proportion
than would have ... eu required i" three
years under the giaduation proposed.
It is moreover a principle than which
none is better seltl; b !;v experience, tiia.
the supply of the precious nieials w ill always
he found adequate to the uses for which
they are requited, 'i hey abound in coun
tries where no other currency is allowed. I a
our own States, where small m tes are ex
eluded, gold and silver supply their place.
When driven to their hiding phu es by hank
suspensions, a liit'e firmness in the commit
nity soon restores them iu a sufficient quail
tity for ordinary purposes. Postage and
other public dues have been collected in
coin without serious inconvenience, even
in States where a depreciated paper curren
cy has existed for years, and this, with the
aid of Treasure notes for a par'of th* time,
was done without interruption during the
suspension of 1837. At the present mo
ment, the receipts and disbursements of he
Government are made in legal currency in
thela-gest portion of the Union. No one
suggests a departure from this rule ; and it
it can now he successfully carried out, it
will be surely attended w ith even less difTi
c dty when bank notes a>e again redeemed
in specie
Indeed, 1 cannot think that a serious ob
jection would any where be raised to the
receipt and payment of gold and s.lver iu all
public transactions, were it n n t from an ap
prehension that a surplus in the Treasury
might withdraw a targe portion o! it limn
circulation, aid 10.-U ii up unprofi'abl in
the public vaults. It would not, m my o
pinion, be dit-rolt lo , irvci.t such an incon
venicucc. from occurring ; but the authen
tic statements v lot h I have alia ady si.l,mil
ted toyon in regaid to ihcaeiual rmotiut in
the public Treasury at any one time during
the period embraced iu them, and the lit.l *-
probability of a different state of the Trea
sury for at least son cye rs to con e, s: in
to render it unnecessary to dwell upon it.
Congress, horeover, as I have In (ere tb
servetl, will in t\\ ry year have an opportu
nity to guard against it, should the occur
rence of’ any circnmst;mc< s lead us to ap
prehend injury from 'his source. View
ing the subject in all its aspects, I cannot
believe that any period will be more susnic
cous than the present lor the adoption ofal
measures necessary to maintain the sancti
ty of our own engagements, and to aid in
securing the com nunily that abundant sup
ply of the precious metals wh'cli adds so
much to their prosperity, and gives such
increased stability to all their dealings.
In a country socommercial asours, banks,
in some foim, will piobably always exist;
but this serves only to render it the more
inc mbeut on us, notwithstanding the dis
couragements of the past, to strive, in our
respective stations, to mitigate the evils
they produce—to take from them as rapid
ly as the obligations of public faith and a ear
ful consideration ol the immediate interest
of the community «ill permit, the unjust
character of monopolies—to check, so lar
as may be nracticablc by prudent legislation
those temptations of interest, and those op
portunities for their dangerous indulgence,
which beset them on every side, and to
confine them strictly to the pt rfortnance ol
their patamount duty—that ot aiding the
operations of commerce, rather than con
sulting their own exclusive advantage.—
These and other salutary reforms may, it is
believed, be accomplished without the vio
lation of any of the great principles of the
social compact the observance ol which is
indespensable to its existence, or interfering
iu any way with the useful and profitable,
employment of real capital
Institutions so framed have existep and
still exist elsewhere, giving to commer
cial intercourse all necessary facilities,
without inflating or depreciating the cur
rency. or stimulating speculation. Thus
accomplishing their legitimate ends, they
have gained the surest gnarmtee for their
protection and encouragement in th good
w ill of the community. Among- a people
so just as ours the same results could not
fail to attend a similar course. The direct
supervision of the Bauks belongs from the
nature of our Gov -rmneni, to the States
who authorize liiem. It is to there Leg
islature* that the pebpb must mainly look
Icr action ou that subject. Bui as me cou
duc. ol the Federal lioveri'luent in the
management of it* revenue ha* also a pow
erlu! though less •iiitiiedia.e influence upon
them, u become- our and .iy to see dial a
proper uitectuu is g,ven lo it. VV mie die
ke< ptfcg ot die public revenue in a seper
ale anu imiepeii eul treasury, ami ol col
lecting it iu golU and silvei, will have a
salutary influence ou die system ol paper
cretin witn winch ail banks are connect, and,
aim tii ns aid (Hose Unit are sound ad well
managed, it will at die same tune sensibly
check such as are otherwise, by at once
withholding tiie means ol extravagance at
lorded by die public funds and restraining
tuero Irom excessive issues of notes whicn
they would be constancy called upuu lo
redeem.
I am aware it has been urged that this
control mm he b.-s attained and exerted
by means ol a National Bank. The Con
stitutional objections, which 1 am well known
to entertain, would prevent trie in any eveut
Irani proposing or assenting to that remedy ;
hut in addition lo this, 1 cannot alter past
experience bring myself to think that it can
any longer be extensively regarded as effec
tive lor such a purpose. Tiie history ol the
lid National dank diroUgll ail its muta
tions show* that it was not so. On the
contrary, it may, after a caretul consider
ation of the subject be, I think softly stated,
that at every period if banking excess it
look the lead ; liiat in 1817, and iBrB, in
18.23, ill 1831, and in iBJ4, us vast expan
sions, followed by distpesMi g contractions,
led to tho-.e ot the ijiate iiistu tious. L
swelled and maddened tiie tides of the
banking system, but seldom allayed or sate
ly directed them. At a lew periods only
was a salutary control exercised, bn*, an
eager desire on t t- contrary, exhibited for
prom in the ffrst place, and if afterwards,
its in asurcs w ere severe towards other in
stitutions, it was because it* own safety
compelled it lo adopt them, it did not (lit
ter horn them it. principle or in lorr' ; its
measures emanated from the same spirit ol
gain. i» li-lt the s:r,-ie tempt ition to over
issues. it suffered front and was totally un
able to avert, those inevitable laws ot trade,
by which it was itself affec-Tted equally with
them, and at least on one occasion, at an
early day, it was saved onl> by extraordinary
1 y r iot ", from the muh fat.'that attended
the weakest institution it prolcssitl to super
vise. In 1837 it lulled, equally with others,
in redeeming its notes, though the two years
allowed by its charter for that purpose had
not expired, a large amount of which re
mains to the present time outstanding. It
i< true, that having so vast a capital, and
strengthened by the use ofal! the reveuues
of the Government, it possesed more-power,
but while it uns'itself, by that circumstance
freed from th ■ control which all banks re
quire. i'« paramount object and inducement,
were left the same to make the most sot its
slock holders, i,ot tu regulate t t- currency
it ihe country Nor has it, as far as we are
a vised, been found to he greatly otherwise
els. where. The national character given
to h - Bank ofEengland, has not prt vented
excessive fluctuations iu tin tr currency,
and it proved unable te keep off' a suspen
ion i-T specie pavniett's, which lasted for
nearly a quarter of a century. And why
h leid we expect it to be otherwise? A
n-iioii.il 'it,'itutiou, though deriving ii
cliaractsr from a different source than the
S: u- hanks, is vet constituted upon the
me principles, is conducted tiy men equal
v exposed to temptation; ad is liable to
he same disaster; with ihe additional dis
advantage that its magnitude occasions an
t xtent of confusion and distress which the
mismanagement ol smaller institutions could
not produce. It can scarcely he doubted
that the recent suspension ol tlte United
.Stales Bank n| Penusyivani i- of which tlie
'fleets are felt not in that State alone, but
n'er half (lie Union—had its origin in a
course of business commenced while ii
was a national institution; and there is no
go -d reason for supposing that the same
onsequences would not have followed, hat.
it « 11 11 derived its powers from the Generai
Government. It is in vein, when the in
fluences and impulses are the same, to look
lor a difference in conduct or results By
sucii creations, we do therefore but 'ncreasc
the mass of paper ctedit aud paper currency,
,i in (In cumg their ..ue' iiaii evils and
fiuciuatious. The extent of power and the
efficiency of organization which we give, so
fur from being beneficial, are in practice
o-oivelv mju imi* !' ev strengthen the
claim ol dependence throughout the Union.
•ihjt ct ill | it more certainly to romnnm
disa*t r, and bind everv hand more eflcctoal
v in Hie fit i inst nee. to ihu-eut our com
mercial cities, and inthe end, to a foreign
power. In a word. I cannot but believe
that, with the full nndersta ding o - the op
erations of our banking syster , which ex
perietice has produced, public sentiment is
..nt iess oposed to the creation of a National
Bank for the purposes connected with cur
r m y and commerce, than lor those con
nected with the fiscal operations of the
Government.
Yet the commerce and currem yof t e
country are suffering evils from the opera
tions of the State Haul's which cotinot and
ought not to be overlooked. By then
means, we have been flooded wuh deprecia
led paper, which it was evidently the design
olthe framers of the Constitution o prevent,
when they required Congress to “coin mo
ney and regu'ate the value ol foreign coins,”
and when they forbade the States “to coin
money, emit bills of credit make any thing
but gold and silver a tender in payment of
debts,” or “pass any law impairing the ob
ligation of contracts.” If they did not
guard more explicitly against the present
state of things, it was because they could
not have anticipated that the few banks then
existing were to swell to an extent which
would expel to so great a decree tlte gold
and silver, for which they had provided,
liom the channels of circulation, and fill
them with a currency that defeatsthe objects
they had in view. The remedy for this
must chiefly rest with the States from whose
legislation it has sprung. No good that
mb'lit accrue in a particular ease from the
exercise of power not obviously conferred
on the General Government, would author
ise its interference, or justify a course that
might, in the slightest degree, increase at
the expense of the States, the power of the
Federal authorities —nor do 1 doubt that the
, States will apply the remedy. Within the
last few years, events have appealed to them
too strongly to he disregarded. They have
seen that the Constitution, though theoreti
cally adhered to, is subverted in practice,
that while on the statue books there is no
legal tender hut gold and silver, no law im
paring the obligations of contracts, yet that
in point of fact, the privileges conferred on
banking corporations have made their notes
the currency the country that the obligations
imposed by these notes are violated under the
impulses of interest or convenience ; and
that the number and power of the persoa
connected with these corporations, or
ed under their influence, give them a leartut
weigh} when their interest is in opposition to
the spirit of the constitution and laws. qq.
the people u i* immaterial whether these re
sults are produt eu by open violations of the
later, or by the workings ol a sysGtn of
which the tesulls is the same. An inflexi
ble execution even of the existing statut-*
ol most of the States, would redress many
evils now endured, sou and effectually show
the banks the dangers ot mismanagement
which impunity encouages them to repeat
and would leach alt corporations the uselui
lessons thal they are the subjects of Ihe law
and the servants of the people. Whati*
still » anting to effect these objects, must be
i sought in additional legislation; or, if that
lie inadequate, in sueh futher constitution
al grauts or restrictions as mav bring us
1 back into the path from which we hare so
widely wandered;
In tlte meantime it is the dnty of sh«
General Government to co-operate with the
S'ales, by a wise exercise of its constitution
al powers, and the enforcement ol its exis
ting laws. The extent to which it may dt>
so by further enactineuts, have already ad
verted to, and tlte wisdom of Congress may
yet enlarge them. But, above all, it is in
cumbent upon us to hold erect the prin
ciples of morality aud laws, constantly exe
cuting our own contracts iu accotdat.ee wi |»
the provisions of the Constitution, and thus
serving as a rallying point by which our
whole country may be brought back to that
safe and honorable standard. Our people
wjil not long be insensible to the extent of
the burdens entailed upon them by the
aisesvstem that has been operating on their
t.mguiiie. energetic, and i tdttstrious ch.it
seter, nor to the means necessary to ex
ar.cate themselves form these embarrass
ments. The weight which presses upon
a large portion ol the people and the Stall*,
is an enormous debt, foreign and domestic.
The foreign debt of our States, corporations,
and men of business, can scarcely be less
than two hundred millions of dollars, re
quiring more than ten millions of dollars
a year to pay the interest. This sum has
not been paid out of the exports of the coutt
tiy, ami must ol ueccssity cut off imports to
that extent, or plunge the country more
deeply in debt from year to year. It iseasy
to see that the increase of this foreign debt
must augment the annul demand on the ex
ports to pay the interest, and to the same
extent diminish the imports; and in propor
tion to the enlargement of tire foreign debt
and tlte consequent increase of interest,
must he the decrease ol the import trade.
In lieu of the comforts which it now brings
us, we might have our gigantic banking in
stitutions, and splended, but, in many in
stances, profitless, railroads and c mats, ab
sorbing to a great rxient, in interest upou
the capital borrowed to construct them, tffo
surplus fruits of national industry for years
lo come, and securing to posterity no ad
equate return for the comforts which the
labors of their hands might otherwise h ire
seeuied. It is not by tiie increase of this
debt ih.it relief is to be sought, but in its
diminution. Upon this point, there is, 1
am happy to say, hope before us; not s*
much in ihe return of confidence abroad,
which will enable tlte States to borrow more
money, as in a change of public feeling at
home, which prompts our people to pau*e
in their career, and think of the means by
which debts are to be paid before they art*
contracted. If we would escape embarrass
ment, public and private, we must cease to
run in debt, except for objects ol necessity,
or such as will yield a certain return. Let
the faith of tlte States, corporations, aud
individuals, already pledged, be kept
with the most punctillinu* regard. It is
due to our national character, a* well as to
justice, that this should on the part of each
be a fix' and principle of comluct. But it be
hoves ns all lobe more chary in pledging it
hereafter. By ceasing to run in debt, and
applying the surplus of our crops and in
comes to the discharge of existing obliga
tion-, buying less and selling more, am!
managing all affairs, public and private, with
strict economy and frugality, we shall see
our country soon recover from a temporary
dispression, arising not from natural and
permanent causes, but from those 1 have
enumerated and advanced with renewed vi
;ur iu her career of prosperity.
Fortunately for us at this moment, when
the balance of trade is greatly against us,
and the difficulty of meeting is enkanced|by
the disturbed stale of our money affairs, the
bounties of i’rovidence have tome to te
lir.ve us liom the cot.sequences of past er
rors. Alat.hlni arplicalion olthe immense
results ol the labors ol the last srsson will
afford partial relief f, t the present and per
s'verance in the same course will in due
season accom; iish the rest. We have had
full experience, in times past ol the extra
ordi results w hich can. in this respect.
be brought about iua short period, by the
united an! w ell directed efforts ol a rom
tnuniiy like ours. Our surplus profits, the
pueigv and industry of our population, and
the wonderful advantages which Providence
has bestowed upon our country, in its cli
mate. us various productions, indespensa
bie to oilier nations will, in due time, af
mrd abundant means lo perfect the most
useful of those objects, for which the Slates
have been plunging themselves of late in
embarrassment*and debt, without imposing
on ourselves or our children such fearful
burdens.
But let it be indelibly engraved on our
minds that relief is not to be found in ex
pedients. Indebtedness cannot be lessened
by borrowing more money, or by changing
the form of the debt. The balance of Irade
is not to be turned in our lavor by creating
new demands upon ns abroad. Our
cy cannot be improved by the creation of
new Banks, or more issues from those
which now exist. Although these devices
so uetitnes appear to give temporary relief,
they aliiiost invariably aggravate th<-0, in the
end. It is also by reirenchment and re
lortn, by curtailing public and private ex
penditures, by paying our debts, and by re
forming our banking system, that we are to
expect effectual relief, security for the fu
ture. and an enduring prosperity. In sha
ping the institutions and policy of the Gen
erai Government so as to promote, as far as
it can w-th its limited powers, these import
ant ends, you may rely on my most cordial
co-operation.
That there should have been, in the pro
gress of recent events, doubts in many quar
ters, and in some a heated opposition to eve
ry change, cannot surprise us. Doubts are
properly attendant on all reform ; and it is
peculiarly in the nature of such abuses as
we are now encountering lo seek to perpetu
ate their power by means ol the influence
they have been permitted to acquire. It is
their result, if not their object, to gain for
the few an ascendancy over the many, by
securing to them a monopoly o f the curren
cy, the medium through which most ofthe
wants of mankind are supplied—to produce
throughout society a chain ol dependence