!

::

for these distant operations of commerce, silver would be no more valuable than the bills of the bank for these would purchase a bill of exchange on either of the cities mentioned, precisely as well as silver. If the operation could be reversed and the planter of Louisiana or South Carolina should desire to place his funds in Philadelphia, with a view to purchase merchandise, he would find the bills of the branch bank in either of those States, entirely equivalent to silver in effecting his object. Even therefore, if the bank had not reduced the rate of the exchanges, it might be safely asserted, that its bills would be of equal value with silver at every point in the Union, and for every purpose, whether local or general.

est commendation.

[21st. CoNG. 1st Sess.

scrupulous punctuality, the stipulation to transfer the funds of the Government to any point where they may be wanted, free of expense, it must be apparent that the committee are correct, to the very letter, in stating that the bank has furnished, both to the Government and to the people, a currency of absolutely uniform value in all places, for all the purposes of paying the public contribu tions, and disbursing the public revenue. And when it is recollected that the Government annually collects and disburses more than twenty-three millions of dollars, those who are at all familiar with the subject, will at once perceive that bills, which are of absolutely uniform value for this vast operation, must be very nearly so for all the purposes of general commerce.

But it is impossible to exhibit any thing like a just view of the beneficial operations of the bank, without advert Upon the whole, then, it may be confidently asserted, ing to the great reduction it has effected, and the seadi-that no country in the world has a circulating medium of ness it has superinduced, in the rate of the commercial greater uniformity than the United States; and that no exchanges of the country. Though this branch of the country of any thing like the same geographical extent business of the bank has been the subject of more com- has a currency at all comparable to that of the United plaint, perhaps than any other, the committee have no States on the score of uniformity. The committee have hesitation in saying, it has been productive of the most seen the statement of an intelligent traveller, who has signal benefits to the community, and deserves the high-visited almost every part of Europe, exhibiting the great It has been already stated that it has variations of the currency in different parts of the same saved the community from the immense losses resulting empire or kingdom. In Russia, the bills of the Bank of from a high and fluctuating state of the exchanges. It St. Petersburgh have a very limited circulation. At now remains to show its effect in equalizing the curren- Riga, and throughout Courtland, Livonia, and all the cy. In this respect, it has been productive of results Southern parts of the empire, the currency is exclusivemore salutary than were anticipated by the most sanguine ly of silver coins. In Denmark, the notes of the Bank advocates of the policy of establishing the bank. It has of Copenhagen are current only in Zealand, the other actually furnished a circulating medium more uniform than islands, and Jutland, but will not pass at all in Sleswic specie. This proposition is susceptible of the clearest de- and Holstein, which constitute the best portion of the monstration: If the whole circulating medium were spe. kingdom. Since the Congress of Vienna, Germany is eie, planters of Louisana, who should desire to purchase divided into thirty nine separate States, each having a dismerchandise in Philadelphia, would be obliged to pay tinct currency, though represented in the Diet at Frankone per cent. either for a bill of exchange on this latter fort. Out of the territory in which these several curplace, or for the transportation and insurance of his spe. rencies are issued, they are mere articles of merchandise: cie. His specie at New Orleans, where he had pre- which circumstance has given rise in every town to a nusent use for it, would be worth one per cent. less to him merous and distinct class of tradesmen, called money than it would be in Philadelphia, where he had a demand changers. How far these separate and unconnected curfor it. But, by thea id of the Bank of the United States rencies have a tendency to embarrass commerce, may be one half of the expense of transporting specie is now sav inferred from the fact, that a traveller going from St. Pe ed to him. The bank, for one half of one per cent, will tersburgh to Calais, will lose upon the unavoidable give him a draught upon the mother bank at Philadel-changes of money, an average of six per cent. In France phia, with which he can draw either the bills of that bank or specie at his pleasure. In bike manner, the bank and its branches will give draughts from any point of the Union to any other where offices exist, at a per centage greatly less than it would cost to transport specie, and in many instances at par. If the merchant or planter, however, does not choo e to purchase a draught from the bank, but prefers transmitting the bills of the office where he resides to any distant point, for commercial purposes, although these bills are not strictly redeemable at the point to which they are transmitted, yet, as they are receivable in payment of all dues to the Government, persons will be generally found willing to take them at par; and if they should not, the bank will receive them frequently at par, and always at a discount much less than would pay the expense of transporting specie. The fact that the bills of the bank and its branches are indiscriminately re ceivable at the custom-houses and land offices, in pay. ment of duties, and for the public lands, has an effect in giving uniformity to the value of these bills, which me rits a more full and distinct explanation.

the bills of the bank are of such large denominations as to be adapted onlyto the greater operations of commerce, and are principally confined to the bankers and extensive traders in Paris. The general currency is silver; and, to avoid the trouble of carrying this to distant parts of the kingdom, gold pieces, or bills of exchange, which are preferable, are purchased at a premium of from one and a half to four per cent. After this brief review of the currencies of Europe, the committee will barely state, as a conclusive vindication of our currency from the impu tation of unsoundness, that there is no point in the Union at which a bill of the United States' Bank, issued at the opposite extremity of the country, is at a discount of more than one-fourth of one per cent.

In confirmation of the views here presented, as to the comparative uniformity of the currency furnished by the bank, and, also, as to the obligation of the bank to redeem its bills, indiscriminately, at all the offices, the comn.ittee will present a few brief extracts from the speech of a statesman, whose opinions have every title to authority on these important subjects. Mr. Lowndes, in discussFor all the purposes of the revenue, it gives to the naing the question, how far the bank had performed the tional currency that perfect uniformity, that ideal perfection, to which a currency of gold and silver, in so extensive a country, could have no pretensions. A bill issued at Missouri is of equal value with specie at Boston, in payment of duties; and the same is true of all other pla ces, however distant, where the bank issues bills, and the Government collects its revenue. When it is more over considered, that the bank performs, with the most

great duty for which it was created, used the following decided language in 1819, when the currency had not reached the point of uniformity it has now attained by half of one per cent.

"The great object of the Government in chartering the bank, was to provide a currency which should have that degree of stability and uniformity in its value which is required by the interests both of our commerce and

21st CoNG. 1st SESS.]

Bank of the United States.

[H. OF R

the plainest principle of the Constitution in doing soequality of taxation. The committee must 'well remem ber, that, before the establishment of the National Bank, such was the unequal value of currency in the different States, that the merchants paid duties, varying fifteen per cent. from each other, on the same articles."

On the question, whether the bank was bound to redeem, indiscriminately, the bills of all its branches, he said:

revenue. A currency, equally valuable at every place of a depreciated and unequal currency, it must neglect and every time, cannot be provided by human wisdom. The nearest approach to this object has been generally supposed to be afforded by the employment of gold and silver as the measures of value. The 14th Congress did not aim at ideal perfection; they wished to combine with the conveniencies of bank circulation, an uniformity of value equal to that which was possessed by the precious metals; and the means which they employed to secure this uniformity were simple and effectual, by enjoining, under a heavy penalty, the payment of all its notes in "He should not argue that the bank was not bound to coin, upon demand. In the report, indeed, the notes of pay its notes, indiscriminately, at all its offices. He be the national bank, are said to be now on the same foot-lieved that nobody now contended that it was." *** ing with those of local banks.' Of the footing on which "It was no unfair account of the practical operation of local bank notes stood, he should speak hereafter; but the system of which he was speaking, to say that it gave the price current upon his table informed him, that the to the branches where the exchange was unavoidable, greatest discount on branch notes of the United States the entire disposition of the specie of those branches was three fourths of one per cent. This was a value much where the exchange was favorable. Upwards of six milmore uniform than that which coin could be expected lions of specie have been sent to the branch of New York, to have in so extensive a country. He had heen lately besides the amount which has been paid by the subscri looking into a book on political economy, which had bers of the bank there; but, in issuing notes which the been published here, with high, and, in respect to its bank of New York has been obliged to redeem, every clearness and precision, with just commendations-the branch throughout the country has drawn upon a fund, work of Mr. Tracy. He inferred from one of his chap with whose condition at the time it could not be ac ters, that the difference of exchange between Marseilles quainted." # * "Such a system might and Paris, was often from two to three per cent. If, with be expected to produce inconvenient changes in the dis all the facilities afforded by the internal improvements in tribution of bank capital, an extreme facility of obtaining which France is so rich, with a currency consisting almost loans at one time, and unexpected contractions of discount exclusively of gold and silver, the variation in the value at another." "Whenever the state of ex of money is three times greater in her territory than on change is unfavorable, whenever the just principles of our continent, can it be said, that, in this respect, the banking require a reduction of discounts, then, under bank has not yet fulfilled the objects of its institution?- this system of indiscriminate payment of its notes, the Before its establishment, the value of bank notes, even in bank has nothing to fear from a draught of specie, and is the commercial States, had varied twenty per cent. from encouraged to lend to every applicant. Wherever the each other; and, as none of them bore a fixed proportion exchange is favorable, and on the sound principles of to the precious metals, or to any natural standard, it was banking, an enlarged accommodation might be given to impossible to assign any limit to their depreciation. You the community-there the flow of notes from every have required that the currency furnished by the nation- State whose exchange is unfavorable, contracts or sus al bank should be every where convertible into silver, pends all the operations of the bank. Thus, wherever and it is so. You have expected that it should be as uni- discounts should be enlarged, the tendency of this system form as coin, and it is more so. He would not detain is to reduce them, and to enlarge them wherever they the committee by reading a paper, which he had prepar should be reduced." ed with that intention, containing the state of exchange, since the establishment of the bank, with England, France, and Holland; for he found himself occupying much more of their time than he had expected. But he believed that any member who should turn his attention to the subject, would remark its steadiness during that period. He thought himself justified in drawing from this fact a conclusion highly favorable to the bank."

In reference to the great depreciation of the paper of the local banks, previous to the establishment of that of the United States, he said;

"Did the interests or duty of the Government of the United States permit that this currency should be receiv ed by it? Some dissatisfaction was expressed, because the branch notes of the United States' Bank were at a discount of three fourths of one per cent. He read from a price current the state of the market for bank notes, by which it appeared that notes, which were insisted to be in very good credit, varied from a discount of two and a half to one of seven, fifteen, twenty-five, and even thir ty per cent. Was our revenue to be received in these notes? How were they to be employed? They might be expended in the district in which they were issued But was the expenditure of every district to be exactly limited to its revenue? What became of the Union if it were so? He spoke of the thing and not the name. Our Union might dissolve in imbecility, as well as be destroyed by violence. Did not union imply, that the resources of one State, its money as well as its men, might be employed for the defence of another?

But, if the Government were willing to bear the loss

Independently of the gross injustice of requiring the bank to perform all the exchanges of this extensive con federacy without any compensation, these enlightened views show most conclusively its inexpediency and injustice, as it regards the different sections of the Union. It would inevitably render those parts of the Union where the bank issues were prudent and moderate, trisutary to those where the issues were injudicious and excessive. In this way, the very inequality in the currency, which the bank was designed to correct, would be perpetrated by the vain attempt to make it perform impossibilities. The power of annihilating space, of transporting money or any other article to the most distant points, without the loss of time or the application of labor, belongs to no hu man institution.

But the salutary agency of the Bank of the United States, in furnishing a sound and uniform currency, is not confined to that portion of the currency which con sists of its own bills. One of the most important purpo; ses which the bank was designed to accomplish, and which, it is confidently believed, no other human agency could have effected, under our federative system of go. vernment, was the enforcement of specie payments ca the part of numerous local banks, deriving their charters from the several States, and whose paper, irredeemable in specie, and illimitable in its quantity, constituted the almost entire currency of the country. Amidst a combi nation of the greatest difficulties, the bank has almost completely succeeded in the performance of this arducus, delicate, and painful duty. With exceptions, too incen. siderable to merit notice, all the State banks in the Union

H. of R.]

Bank of the United States.

have resumed specie payments. Their bills, in the respective spheres of their circulation, are of equal value with gold and silver; while for all the operations of commerce, beyond that sphere, the bills or the checks of the Bank of the United States, are even more valuable than specie. And even in the very few instances in which the paper of State banks is depreciated, those banks are winding up their concerns; and it may be safely said, that no citizen of the Union is under the necessity of taking depreciated paper, because a sound currency cannot be obtained. North Carolina is believed to be the only State where paper of the local banks is irredeemable in specie, and consequently depreciated. Even there, the depreciation is only one or two per cent. and what is more important, the paper of the Bank of the United States can be obtained by all those who desire it, and have an equivalent to give for it.

the

[21st CoNG. 1st Sess.

have done it, unaided by the Bank of the United States, without producing a degree of distress incomparably greater than has been actually experienced. They will conclude their remarks on this branch of the subject by the obvious reflection, that, if Congress, at the close of the war, had left it to the States to restore the disordered currency, this important function of sovereignty would have been left with those from which the Constitution has expressly taken it, and by whom it could not he beneficially or effectually exercised. But another idea of considerable plausibility, is not without its advocates. It is said that this Government, by making the resumption and continuance of specie payments, the condition upon which the State banks should receive the Government deposites, might have restored the currency to a state of uniformity. Without stopping to give their reasons for believing that specie payments could not have heen re The committee are aware, that the opinion is enter- stored in this way, and that, even if they could, a uni tained by some, that the local banks would, at some time form currency of general credit, throughout the Union, or other, either voluntarily or by the coercion of the would not have been provided, the committee will pro State Legislatures, have resumed specie payments. In ceed to give their reasons for thinking that such a convery nature of things, this would seem to be an im-nexion between the Federal Government and the State possibility. It must be remembered, that no banks ever banks would be exceedingly dangerous to the purity of made such large dividends as were realized by the local both. While there is a National Bank, bound by its institutions, during the suspension of specie payments. charter to perform certain stipulatied duties, and entitled A rich and abundant harvest of profit was opened to to receive the Government deposites as a compensation them, which the resumption of specie payments must in- fixed by the law creating the charter, and only to be for. evitably blast. While permitted to give their own notes, feited by the failure to perform those duties, there is bearing no interest, and not redeemable in specie, in ex- nothing in the connexion at all inconsistent with the inchange for better notes, bearing interest, it is obvious dependence of the bank, and the purity of the Govern that the more paper they issued, the higher would be ment. The country has a deep interest that the bank their profits. The most powerful motive that can ope- should maintain specie payments, and the Government rate upon moneyed corporations, would have existed, to an additional interest that it should keep the public funds prevent the State banks from putting an end to the very safely, and transfer them, free of expense, wherever they state of things, from which their excessive profits pro- may be wanted. The Government, therefore, has no ceeded. Their very nature must have been changed, power over the bank, but the salutary power of enforc. therefore, before they could have been induced to co- ing a compliance with the terms of its charter. Every operate, voluntarily, in the restoration of the currency. thing is fixed by the law, and nothing left to arbitrary disIt is quite as improbable that the State Legislatures cretion. It is true that the Secretary of the Treasury, would have compelled the banks to do their duty. It with the sanction of Congress, would have the power to has already been stated, that the tendency of a deprecia. prevent the bank from using its power unjustly and opted currency to attract importations to the points of pressively, and to punish any attempt, on the part of the greatest depreciation, and to lighten the relative burdens Directors, to bring the pecuniary influence of the instituof federal taxation, would naturally produce. among the tion to bear upon the politics of the country, by withStates, a rivalry in the business of excessive bank issues drawing the Government deposites from the offending But there remains to be stated, a cause of more general branches. But this power would not be lightly exercised operation, which would have prevented the interposition by the Treasury, as its exercise would necessarily be of the State Legislature to coirect those issues. subjected to be reviewed by Congress. It is, in its nature a salutary corrective, creating no undue dependence on the part of the bank.

The banks were, directly and indirectly, the creditors of the whole community, and the resumption of specie payments necessarily involved a general curtailment of discounts, and withdrawal of credit, which would produce a general and distressing pressure upon the entire class of debtors. These constituted the largest portion of the population of all the States where specie payments were suspended, and bank issues excessive. Those, therefore, who controlled public opinion in the States, where the depreciation of the local paper was greatest, were interested in the perpetuation of the evil. Deep and deleterious, therefore, as the disease evidently was in many of the States, their Legislatures could not have been expected to apply a remedy, so painful as the compulsion of specie payments would have been, without the aid of the Bank of the U. States. And here it is worthy of special remark, that, while the Bank has compelled the local banks to resume specie payments, it has most materially contributed, by its direct aid and liberal arrange ments, to enable them to do so, and that with the least possible embarrassment to themselves and distress to the community. If the State Leg slatures had been ever so anxious to compel the banks to resume specie payments, and the banks ever so willing to make the effort, the committee are decidedly of opinion, that they could not

But the state of things would be widely different, if there was no National Bank, and it was left to the discretion of the Secretary of the Treasury, to select the local banks in which the Government deposites should be made. All the State banks would, in that case, be competitors for the favor of the Treasury; and no one, who will duly consider the nature of this sort of patronage, can fail to perceive, that, in the hands of an ambitious man, not possessed of perfect purity and unbending integrity, it would be imminently dangerous to the public liberty.The State banks would enter the lists of political contro. versy, with a view to obtain this patronage; and very little sagacity is required to foresee, that, if there should ever happen to be an administration disposed to use its patronage to perpetuate its power, the public funds would be put in jeopardy by being deposited in banks unworthy of confidence, and the most extensive corrup tion brought to bear upon the elections throughout the Union. A state of things more adverse to the purity of the Government-a power more liable to be abused-can scarcely be imagined. If five millions of dollars were annually placed in the hands of the Secretary of the Treasury, to be distributed at his discretion, for the purposes

of internal improvement, it would not invest him with a more dangerous and corrupting power.

[H. of R.

decision of Congress, the committee consider it so far involved in the matter referred to them, as to render it their duty to present some considerations bearing on that question, in addition to what they have said on the general expediency of maintaining such an institution. If a National Bank, similar to the present, be a necessary and proper agent for the accomplishment of the great purposes heretofore indicated, the only remaining ques tion would seem to be, whether the charter of the pre. sent stockholders should be renewed, or a new set of stockholders incorporated.

In considering this question, Congress will, of course. be governed in some degree, by the terms on which the present stockholders will agree to accept a renewal of their charter. But, as the committee have satisfactory reasons for believing that terms eminently advantageous to the Government can be obtained, they will proceed to some other inquiries. What, then, would be the effect of refusing to renew the present charter? And, in the first place, what are the inducements for pursuing that course?

In connection with this branch of the subject, the committee will briefly examine the grounds of the complaint, sometimes made against the Bank of the United States. It is alleged that this bank, availing itself of the Government deposites, consisting in some places principally of local paper, makes heavy and oppressive draughts on the local banks for specie, and thus compels them to curtail their discounts, to the great injury of the community. In the first place, it is to be remarked, that one of the highest duties of the bank the great object for which it was established-was to prevent the excessive issues of local paper; and this duty can only be performed, by enforcing upon the State banks the payinent of specie for any excess in their issues. But the committee are induced to believe, that this complaint is principally owing, so far as it now exists, to the fact, that the operations of the Federal Treasury are mistaken for the operations of the Bank, because the Bank is the agent by whom those operations are performed. This institution receives the Government deposites in the paper of the local banks, It is sometimes alleged that the present stockholders certainly in no spirit of hostility to those banks. On the are large capitalists, and, as the stock of the bank is some contrary, it tends to give them credit, and is designed to twenty per cent above par, that a renewal of the charter have that effect. But the Bank of the United States is would be equivalent to a grant to them of twenty per not only bound to pay in specie, or its own bills, what it cent upon their capital. It is true that a small propor receives for the Government in local paper, but to trans- tion of the capital of the company belongs to very wealthy fer the funds to any part of the Union, where they may men. Something more than two millions of that owned be required for disbursement. Let it be assumed, that in the United States, belongs to persons holding upwards the Government collects annually, at the Custom house of one hundred thousand dollars each. It is also true, in Charleston, one million of dollars in local bank notes, that foreigners own seven millions, or one fifth of the and disburses in South Carolina only one hundred thou- capital. But, on the other hand, it is to be remarked sand, it would result from this, that the Government that the Government, in trust for the people of the United would have nine hundred thousand dollars of local bank states, holds seven millions; that persons owning less paper deposited in the Charleston branch, which the than five thousand dollars each, hold four millions six bank would be bound by its charter, and for the national hundred and eighty-two thousand; and that persons own benefit, to transfer, perhaps to Washington or Norfolk.-ing between five and ten thousand dollars each, hold upAs this paper would not answer the purposes of the Go- wards of three millions. It is also worthy of remark, vernment at those places, the Bank would be, of course that a very considerable portion of the stock-very nearly compelled to provide specie, or bills that will command six millions, is held by trustees and guardians, for the use specie at those places. It is obvious, then, that it is the of females and orphan children, and charitable and other inequality in the collection and disbursement of the reve institutions. Of the twenty eight millions of the stock nue, that produces the evil in question. If all the reve which is owned by individuals, only three millions four nue collected in Charleston were disbursed in the State, hundred and fifty-three thousand is now held by the orino draughts would be made upon the local banks for spe❘ginal subscribers. All the rest has been purchased at cie. The Bank of the United States, so far from being the market prices-a large portion of it, probably, when justly obnoxious to any complaint on this score, has those prices were higher than at present. Most of the greatly mitigated the action of the Treasury upon the investments made by wills, and deeds, and decrees in local banks, by means of the liberal arrangements which equity, for the use of females and minors, are believed to its large capital and numerous branches have enabled it have been made when the stock was greatly above par. to make with them. The degree in which that institu. From this brief analysis, it will appear that there is no tion has reduced the rate of exchange, may be fairly as thing in the character or situation of the stockholders, sumed as that in which it has mitigated the action of the which should make it desirable to deprive them of the adTreasury upon the State banks. If, for example, there vantage which they have fairly gained, by an application existed no National Bank, and the deposites of the reve of their capital to purposes highly beneficial, as the comnue collected in Charleston were made in one of the lo-mittee have attempted to shew, to the Government and cal banks, what would be the effect of transferring, annu people of the United States. If foreigners own seven ally, nine hundred thousand dollars to Washington or millions of the stock of the bank, our own government Norfolk? The local banks, having no branches at either owns as much; if wealthy men own more than two milof those places, instead of transmitting draughts, as is lions, men in moderate circumstances, own between sev now generally done, would be compelled to transmit speen and eight millions; and widows, orphans, and institu cie. The bank in which the Government deposites were tions devoted to charitable and other purposes, own nearmade, would consequently be under the necessity of de-ly six millions. manding specie from all the other banks, in a manner, and to an extent, much more oppressive than any thing that can be imputed to the Bank of the United States. If, to avoid these specie drauglits, the local banks should purchase bills on Washington or Norfolk, they would probably cost five or six per cent. even in a tolerable state of the currency, which would be a loss to the banks almost to the full extent of the premium.

Although the expediency of renewing the charter of the present bank is not a question now submitted for the

But the objection that the stock is owned by men of large capital would apply with equal, if not greater force, to any bank that could be organized. In the very nature of things, men who have large surplus capitals are the principal subscribers at the first organization of a bank. Farmers and planters, merchants and manufacturers, ha ving an active employment for their capitals, do not choose to be the first adventurers in a bank project. Accordingly, when the present bak went into operation, it is believed that most of the capital was owned by large

[H. of R.

Bank of the United States.

[21st CoNG. 1st Sess.

capitalists, and under a much more unequal distribution ease in the national currency. The nation, after having than exists at present. The large amount of stock now suffered the almost convulsive agonies of this necessary held in trust for females and minors, has been principally, remedy, is now restored to perfect health. In this state if not entirely, purchased since the bank went into ope- of things, it will be for Congress to decide whether it is Iration; and the same remark is generally applicable to the part of wisdom to expose the country to a degree of the stock in the hands of small holders. It is only when suffering almost equal to that which it has already sufferthe character of a bank is fully established, and when itsed, for the purpose of bringing back that very derangestock assumes a steady value, that these descriptions of persons make investments in it.

It is morally certain, therefore, that, if another dis tinct institution were created, on the expiration of the present charter, there would be a much greater portion of its capital subscribed by men of large fortunes, than is now owned by persons of this description, of the stock of the United States Bank. Indeed, it might be confidently predicted, that the large capitalists who now hold stock in that bank, would, from their local position and other advantages, be the first to forestall the subscrip. tions to the new bank, while the small stockholders, scattered over the country, would be probably excluded, and the females and minors, and others interested in trust, investments made by decrees in equity, would be almost necessarily excluded, as the sanction of a court could scarcely be obtained, after the passage of the new act of incorporation, in time to authorize a subscription. To destroy the existing bank, therefore, after it has rendered such signal services to the country, merely with a view to incorporate another, would be an act rather of cruelty and caprice, than of justice and wisdom, as it re gards the present stockholders. It is no light matter to depreciate the property of individuals, honestly obtained, aud usefully employed to the extent of five millions six hundred thousand dollars, and the property of the govern ment, to the extent of one million four hundred thousand dollars, purely for the sake of change. It would indicate a fondness for experiment, which a wise Government will not indulge upon slight considerations.

ment of the currency which has been remedied by a process as necessary as it was distressing.

If the Bank of the United States were destroyed, and the local institutions left without its restraining influence, the currency would almost certainly relapse into a state of unsoundness. The very pressure which the present Bank, in winding up its concerns, would make upon the local institutions, would compel them either to curtail their discounts when most needed, or to suspend specie payments. It is not difficult to predict which of these alternatives they would adopt, under the circumstances in which they would be placed. The imperious wants of a suffering community would call for discounts, in language which could not be disregarded. The public necessities would demand, and public opinion would sanc. tion, the suspension, or at least an evasion, of specie payments.

But, even if this desperate resort could be avoided in a period of peace and general prosperity, neither reason nor experience will permit us to doubt, that a state of war would speedily bring about all the evils which so fa tally affected the credit of the Government and the national currency, during the late war with Great Britain. We should be again driven to the same miserable round of financial expedients, which, in little more than two years, brought a wealthy community almost to the very brink of a declared national bankruptcy, and placed the Government completely at the mercy of speculating stockjobbers.

The Committee feel warranted, by the past experience of the country, in expressing it as their deliberate opin ion, that, in a period of war, the financial resources of the country could not be drawn into efficient operation, without the aid of a national bank, and that the local banks would certainly resort to a suspension of specie payments. The maxim is eminently true in modern times that money is the sinew of military power. In this view of the subject, it does appear to the committee, that no one of the institutions of the country, not excepting the army or navy, is of more vital importance than a national bank. It has this decided advantage over the army and navy: while they are of scarcely any value except in war, the bank is not less useful than either of them in war, and is also eminently useful in peace. It has another advantage, still greater. If, like the army or navy, it should cost the nation millions annually to sustain it, the expedi ency of the expenditure might be doubted. But, when it actually saves to the Government and to the country, as the committee have heretofore attempted to show, more millions annually than are expended in supporting both the army and navy, it would seem that, if there was any one measure of national policy, upon which all the political parties of the country should be brought to unite, by the impressive lessons of experience, it is that of maintaining a national bank.

But the great injury which would result from the refusal of Congress to renew the charter of the present Bank would, beyond all question, be that which would result to the community at large. It would be difficult to estimate the extent of the distress which would naturally and necessarily result from the sudden withdrawal of more than forty millions of credit, which the community now enjoys from the Bank. But this would not be the full extent of the operation. The Bank of the United States, in winding up its concerns, would not only with draw its own paper from circulation, and call in its debts, but would unavoidably make such heavy draughts on the local institutions for specie, as very greatly to curtail their discounts. The pressure upon the active, industrious, and enterprising classes, who depend most on the facilities of bank credit, would be tremendous, A vast amount of property would change hands at half its value, passing under the hammer, from the merchants, manufacturers, and farmers, to the large moneyed capitalists, who always stand ready to avail themselves of the pecuniary embarrassments of the community. The large stockhold ers of the present Bank, the very persons whose present lawful gains it would be the object of some to cut off, having a large surplus money capital thrown upon their hands, would be the very first to speculate upon the distresses of the community, and build up princely fortunes It is due to the persons, who, for the last ten years, upon the ruins of the industrious and active classes. On have been concerned in the administration of the bank, the other hand, the females and minors, and persons in to state, that they have performed the delicate and diffimoderate circumstances, who hold stock in the institucult trust committed to them, in such a manner as, at the tion, would sustain an injury, in no degree mitigated by the general distress of the community.

A very grave and solemn question will be presented to Congress, when they come to decide upon the expediency of renewing the charter of the present Bank. That institution has succeeded in carrying the country through the painful process necessary to cure a deep-seated dis

same time, to accomplish the great national ends for which it was established, and promote the permanent interest of the stockholders, with the least practicable pressure upon the local banks. As far as the committee are enabled to form an opinion, from careful inquiry, the bank has been liberal and indulgent in its dealings with these institutions, and, with scarcely an exception, now