20,000 A large proportion of my subscribers were 10,000 federalists. But I did not stop here, I pro10,000 ceeded to obtain additional subscriptions, and 10,000 made such further arrangements as would ena4,000 ble me to furnish five millions of dollars. 10,000 Having thus succeeded, I repaired to Wash20,000 ington to perform, what I then considered, the 10,000 most pleasing duty of my life. I was now ena20,000 bled to tender to the government of the coun23,000 try which gave me birth a loan of five millions 10,000 of dollars, at a period when it was in the utmost 5,000 distress for money, for the purpose of defending 25,000 the nation against the hostile attacks of a pow40,000 erful and implacable foe. On the day of my 20,000 arrival at that place, Alexander C. Hanson, a 100,000 member from Maryland, and the reputed editor 20,000 of the "Federal Republican," a newspaper 10,000 printed at Georgetown, Columbia, delivered a 6,000 very violent speech in Congress, in which, 5,000 among other things, he stated that the govern4,000 ment was destitute of funds, and unable to 5,000 procure a single million in all America; that 10,000 the merchants would refuse to make further 6,000 advances; and that the administration had 10,000 already obtained the last dollar in the power 4,000 of its friends to furnish. He also ventured to 6,000 declare, that gentlemen who had lent were sick 4,000 of their bargain and had been deceived by the 5,000 fallacious assurances of Mr. Gallatin that 5,000 peace would arise from the mission in which 2,000 he was employed, and in the fulfilment of the 75,000 duties of which he was on the point of embark2,000 ing for Russia. Mr. Hanson, in this speech continued to allege, that his information was derived from the best informed merchants in America, and that he was sensible he could not be mistaken. An alarm of that nature had, indeed, generally prevailed. It was apprehended that the government would not be able to procure resources to supply its necessities, or to prosecute its measures. Congress itself appeared dejected at the gloomy prospect which was presented. In the evening, I met with the honorable Messrs. Cheaves and Calhoun, of South Carolina, and Doctor Bibb, of Georgia, the latter a member of the committee of ways and means. In the course of conversation, I took occasion to mention the business which had brought me to Washington. He appeared highly pleased, and requested my permission to state the facts on the floor of Congress, in a reply which he, the next day, intended to make to Mr. Hanson's speech. I told him that I had not the smallest objection to his stating that an agent had arrived from New York, deputed by a large number of merchants, without any political distinction, and authorized to tender to government a loan of several millions of dollars. On the next day he, accordingly, made such a statement, which afforded the utmost satisfaction to the Republican members, and filled the opposition with astonishment and alarm. However surprising it may appear, it is not the less true, that neither party in Congress had been apprised of the association which I had succeeded in forming. The information was received with the greatest emotions, and the pleasures and regrets of that day will not be soon effaced from the recollection of the members who were present. Mr. Bibb is said to have rendered the utmost justice to the subject. Ignorant that he had afforded such statement, shortly after the conclusion of his speech, I attended in the gallery of the House, accompanied by my father-in-law, Thomas Hazard, jun., where we were met by several of the members, who were all anxious to learn the particulars of the business, of which I informed them without hesitation. Among the number were Elisha R. Potter, a Federal representative from Rhode Island, and Judge Benson,a Federal member from New York; they appeared distressed at the prospect of the administration obtaining money to carry on the war, and expressed an anxiety to ascertain the names of the federalists who had lent themselves for such purposes. I readily mentioned the most conspicuous characters among them, whom I knew him to be acquainted with, and added, that if they would call at my lodgings, they might examine the subscription book, where they would discover the signatures and names of many of their particular friends. They promised to do so, and we parted. Immediately after this, I became an object of denunciation, calumny, and persecution. The Federal papers were let loose upon me. The Federal Republican, at Georgetown, commenced the attack, which was followed throughout the eastern States, and even extended to the three penny sheet which is printed at the village of New Bedford. Several other of the towns in Massachusetts united in the warfare against an individual whose only offence was a performance of his duties to his country. The "Federal Republican," in particular, with the liberality for which it is so justly distinguished, proceeded to the length of declaring me an impostor, and insinuated that the names of my subscribers had been forged. The honorable Rufus King, a Federal senator from New York, called upon me, and requested to see the book of subscriptions, to which I consented without hesitation. After having examined it, he mentioned that the association was highly respectable; that among the subscribers he found many of his particular friends, whom he knew to be abundantly able to perform all the engagements into which they had entered. Such de cided testimony, however, was unable to shield me from slander. Many of the Federal nembers became extreme in their violence of hatred, and others attempted to intimidate me with respect to the safety of the money to be lent. Mr. Potter, a representative from Rhode Island, declared with great seriousness, that the Federal party would soon possess the powers of the gov ernment, and would never consent to impose taxes on the people to pay either the principal or the interest to carry on such a war. I had not repaired to Washington to obtain information, or to be schooled by individuals whose experience and acquaintance with the subject was not superior to my own. The orly effect produced by such conduct was, if possi ble, to strengthen my determination, and to increase my activity and zeal in supporting the administration. I accordingly waited on the acting Secretary of the Treasury, and tendered to him a loan of five millions of dollars, on the same terms as government had allowed for the sixteen million loan, observing, that although better terms might be obtained, we had determined to offer the money on such conditions as had recently been agreed to by the gov ernment. The acting Secretary replied that, inasmuch as no law authorizing a loan had as yet passed, he could not say anything decisive on the subject. In the course of a day or two afterwards, a bill to authorize a loan was introduced; while it was under debate in the Senate, the honorable Mr. King presented a resolution calling for the documents and papers in relation to the terms on which the sixteen million loan had been obtained. He stated, with great earnestness, that the most injurious conditions had been allowed, and that when papers came to light a more disgraceful transaction would appear than had ever been witnessed in the treasury department of any country. On taking his seat, he was asked by Jeremiah Mason, a senator from New Hampshire, how he obtained his information? he replied "from Mr. Sheldon, of the Treasury." nation, and the sooner they are made to resign the better." About this time there was an intrigue on foot to induce the President to dismiss his cabinet ministers, or a great part of them, appointing in their places his political opponents. Seven or eight Democratic members of Congress from New York, alarmed at the progress of the war and the condition of the treasury, had subscribed an address to the President to that effect. These men were led on by Jonathan Fisk, a member from Orange county, New York, and were opposed by a greater number of the New York democratic members, at the head of whom was John W. Taylor, a member from Saratoga, New York. Mr. Barker, having an intimacy with Mr. this new device to distract and destroy the Madison, had something to say on the subject; party did not succeed. The Federal party had opposed a proposed land tax, because the Democratic party would not reinstate the old Federal land tax; on that occasion, the Hon. Mr. Eppes, of Virginia, chairman of the committee of ways and means, said, the House would never agree to reinstate that law; the Democratic party had trouble enough to get rid of the odious tax when it was as long as it should be wanted, but the House would not again lose the power of saying when it should cease, which would be the case if made dependent on the vote of the Senate, or the not wanted; it was now wanted, and he would Mr. Barker and Mr. Hazard were in the gal-vote for it for one year and so on annually, and lery and heard this conversation; the former being a subscriber to the amount of $25,000 to Mr. Gallatin's loan, supposing himself, from the tenor of the advertisement for the loan, interested in the secret article, repaired immediately to the Treasury department and inquired of Mr. Sheldon how he came to allow Mr. Gallatin to make such a disgraceful contract with Messrs. Girard and Parish. Mr. Sheldon replied, that Mr. Gallatin was a thousand miles off before he found it out, and then by accident he came across the paper which had been endorsed and filed away by Mr. Gallatin himself, no doubt for the purpose of concealing it from the treasury clerks. Mr. Barker inquired of him if it was kind in him to expose the article to the political opponents of Mr. Gallatin, to be used against him in his absence; "yes," added Sheldon, "the good of the country requires it, the administration are incapable to conduct the affairs of the veto of a President. I consider Mr. King to be a man of too much intelligence and honor to have rested an accusation upon so groundless a basis, had he been acquainted with its imbecility; and, therefore, I still retain the impression, that he had been induced to attach more weight to the information of Mr. Sheldon, than it was afterwards found to merit. Mr. King's resolution was as follows: "Resolved, That the President of the United States be, and he is hereby, requested to cause to be laid before the Senate the terms upon which the loan made in pursuance of 'An act authorizing a loan for a sum not exceeding sixteen millions of dollars,' passed the eighth day of February last, has been obtained or contracted for, together with a copy of such contract." investigation to amount to nothing more than this precise condition allowed by Mr. Gallatin to Messieurs Girard and Parish, to wit: that if any more favorable terms should be allowed by the United States for money borrowed under any law which should be passed before the last day of that year to defray the expenses, that they should have the benefit of such more favorable terms. "PHILADELPHIA, April 5, 1813. "In consequence of the notice given by the Treasury Department under date of the 13th The perusal of the documents rendered it of March, 1813, that proposals will be received further evident that every possible exertion had by you for the whole or part of the residue of been made by Mr. Gallatin to obtain money without granting such a condition, but without success, and that no alternative had remained except either to allow the condition required or become unable to procure the money. the loan of sixteen millions of dollars, we here- "DAVID PARISH, "To Hon. ALBERT GALLATIN, "Secretary of the Treasury. So well satisfied was Mr. King, and every other member, of the propriety of Mr. Gallatin's conduct, that after the documents had been read not a single word of complaint was uttered in the Senate. My impression then was that Mr. Sheldon had barely communicated his own opinions of the transaction to Mr. King, without mentioning to him the precise nature or terms of the contract, or other circumstances upon which those opinions had been formed. On the 2d of August, 1813, a law was passed authorizing a loan of seven millions and a half of dollars. I immediately afterwards waited on Mr. Jones, and repeated my offer to loan five "To be paid at Stephen Girard's bank. Ste- millions upon the same terms which were phen Girard for self and David Parish." When this report from the President came into the Senate it was manifest that it had been made necessary to enable the treasury to get the money, and intended to have been kept a secret pending the period it had to run, lest it should affect the price of stock. It was an indemnity to the lenders which all governments have to make to support the price of their stocks. The acting Secretary of the Treasury in his report of the terms on which this loan was obtained, and the finances of the treasury generally, made to Congress on the 2d June, 1813, does not mention the condition, or in any way refer to it. That part of the transaction alluded to by Senator King, and with respect to which he had been evidently misinformed, appeared upon allowed for the sixteen million loan. He was friendly and polite, but declined to enter upon any decision for some days, and intimated that he expected to obtain it on better terms, and should probably advertise for it. He did so, and when I offered two millions, and my friend, Fitz G. Halleck, of New York, an additional four hundred thousand dollars in my behalf, a greater amount than seven and a half millions having been offered, only seventeen hundred and twenty three thousand dollars of the two millions four hundred thousand offered by us were accepted, this amount of money was promptly furnished. The "Federal Republican" and other newspapers were severe and lavish in their censures against those federal merchants of New York who were advancing their monies to govern. ment to support such a war. Shortly after the seven and a half million loan was closed, money became more scarce, and the wants of government appeared to increase. The alarm that it would not be able to obtain resources became general, when the solicitude I felt for the success of our arms induced me to meet and consult with several of my acquaintances for the purpose of devising some plan to render efficient and acceptable aid. Upon such consultation, we coincided in opinion that the establishment of a national bank would be the most beneficial measure which government could adopt to procure funds and to place its finances in a flourishing situation. A petition to Congress for such an institution was accordingly prepared. I presented it to many of our wealthy citizens, with out distinction of party, and obtained their signatures. In making this application, John Wells, esq., a distinguished federal lawyer of this city, was very active, and, with pleasure, I take this occasion to remark, that I consider him one of the most enlightened and honorable men in America, and one that would make as great sacrifices as any man to promote her best interest. Copies of it were transmitted to Boston, Philadelphia, Baltimore, Norfolk, Charleston, and Savannah, requesting a cooperation, which succeeded at Philadelphia, but not at the other places. Two petitions, one from the latter place, and the other from this city, were presented to Congress. I repaired to Washington in January, 1814, and remained there until after Congress adjourned, endeavoring to convince the members of both houses that, without the establishment of a national bank, government would be unable to obtain a sufficiency of money for necessary public purposes. Many of the members concurred in the same opinion, and endeavored to procure the passage of a law for such establishment, but all their efforts proved unavailing. I waited on the President, the Vice President, the Secretaries of State, the Treasury, of War, and of the Navy, and, by the strongest and most impressive arguments in my power to suggest, represented the impossibility of borrowing sufficient sums to answer national exigencies, and that if Congress should adjourn with a reliance upon loans they would be awfully disappointed. I frequently heard the late Vice President and the late Secretary at War converse with members of Congress upon the subject. They both repeatedly expressed their opinion that if Congress should adjourn without establishing a national bank that the President would be under the necessity of convening them in a few months for the express purpose of providing ways and means. Mr. Campbell, the new Secretary of the Treasury, entertained also serious alarms with respect to the inadequacy of the means which had been adopted to call forth the public resources, and used every argument in his power with the committee, and with individual members, to induce their exertions in favor of a bank. Being unsuccessful in relation to this measure, and believing that by prohibiting the exportation of specie the existing banks would be enabled to loan large sums, and that the public interest, for other reasons, required such prohibition, the measure was recommended by the President in a message to both houses of Congress. The subject was debated in the House of Representatives, and not agreed to; immediately after which Mr. Campbell applied to members of the Senate, and pressed upon them the necessity of the measure, when it was taken up in that body, and disagreed to by them. Most of the federal members in Congress opposed the establishment of a national bank with great vehemence. Some of them took occasion to reprobate the petitioners in its favor, and Dr. Seybert, of Philadelphia, a republican member, who was upon constitutional grounds averse to the measure, appeared to unite in the censure. He intimated that the alleged difficulty of procuring money was made as a threat with a view to coerce Congress to consent to it. Such insinuation I considered unkind. Nothing could be further from the fact. I had expressed my real opinions to that gentleman with perfect sincerity. The information I had afforded him and others, that money could not be borrowed, was not grounded on a reason that the possessors would withhold it for the purpose of compelling Congress to institute a bank, but because the money market was exhausted-because many commercial men were averse to loaning, and were equally averse to a bank, inasmuch as they knew it would furnish the government with means to borrow as much money as OF |