bank accommodations could be acquired, struggle, the New York banks gave way. and suspended the payment of specie. As fast as the news spread, the other banks followed their example, and in ten days there was scarcely a specie paying bank in the Union.

It is now the theme of every Federal orator and Federal press, that this result has been brought about by Gen. Jackson and Mr Van Buren.

encouraged men to become speculators. Merchandise, produce, city and village lots, new towns and public lands, every thing that could be bought and sold, were brought into the gigantic whirlpool. Men enough were not left at the plough to raise bread for the country all were accumulating fortunes by buying and selling. From extraordinary importations and excessive sales of public lands, the public revenue began to accumu- Did Gen. Jackson compel the Bank of the late beyond the wants of the Government. United States to make the panic curtailThe surplus being deposited in banks, be- ments? No: they were made by Mr. Bidcame immediately the basis of new bank is- dle, without necessity, to control the action sues, adding to the means of speculation, of Congress through the sufferings of the and aggravating the prevailing evils.

Gen. Jackson saw the banks, led on by the Bank of the United States, careering onward to destruction, and considered whether it was in his power to arrest them. The only mode by which he could reach them, was to reject their notes in payment of the public dues, and thus diminish their power to extend their issues still further, to the ruin of many honest men, with jeopardy to themselves and mischief to the country. In this disinterested and patriotic object originated the much abused Specie Circular. No measure could be more just or more appropriate to the state of the country; yet none was ever more abused. It checked the issues of banks and consequently lessened the means of speculation, and arrested the unnatural advance of prices, or rather the depreciation of the currency. Hence, it was denounced by the swarms of speculators which buzzed in every body's ear throughout the country, and was alleged to be the cause of numberless evils which it only could not prevent. If the banks, admonished by this measure, had given attentiou to their own condition and that of the country, and forthwith adopted a system of moderate curtailment, the catastrophe of suspension might have been avoided. But, though checked in their career, they did not recede. For months they appeared to stand still waiting for events. In the mean time, the excessive importations of merchandise, and the influx of bread stuffs from abroad, produced a demand for specie for exportation. This was immeasurably aggravated by the violent and unjustifiable course of the Bank of England, which suddenly destroyed American credit in that island, with the avowed object of forcing back the specie which had been forced out of England by the panic curtailments and reducing the price of cotton, the re-action of which is now again sending the specie of England to every commercial nation of the globe. After a short

country.

Did Gen. Jackson compel the State banks to curtail at the same time, and thereby increase the public distress? No: those banks were forced to curtail by the Bank of the United States?

Did Gen. Jackson compel the Bank of the United States to extend her loans about twenty millions of dollars as soon as the panic was over, and thereby open the floodgates of paper issues? No: this step was taken by Mr. Biddle without pretence of compulsion or counsel from the Administration?

Did Gen. Jackson compel or advise the State banks to follow this pernicious and fatal example? No: he advised against it; and when counsel was found to be of no avail, made an effort to arrest the impending ruin by the Specie Circular. ** tt

Did Gen. Jackson set on foot the ten thousand wild and reckless speculations which pervaded the Union? No: they were generated by the sudden and extravagant bank issues after the close of the panic in which the Bank of the United States led the way. The voice of that honest and fearless Chief Magistrate was always heard against them.

Did Gen. Jackson produce the excess of importations, and the influx of breadstuffs, which generated the demand for the exportation of specie to pay for them? No: the excess of importations was a portion of those speculations which originated in excessive bank issues, and the importation of bread stuffs was the consequence of untoward seasons, and the withdrawal from grain-growing of a large portion of our laboring people,. who thought they saw a shorter road to wealth in speculation or other employments.

Did Gen. Jackson induce the Bank of England to make its violent attack on American credit, and thereby augment the demand for specie to pay debts in England? No: that step, improper as it was, grew out

of a foolish desire to force back to England a portion of the specie which Mr. Biddle's panic curtailments had forced away, and put an end to the swelling bubble which was rising out of the interchange of credit between the two countries.

Did Gen. Jackson recommend the sudden displacement of large sums of public money which had entered into the banking operations of particular places, for the purpose of depositing it with the States, thereby increasing the embarrassments of the bank? No: it is well known that he was opposed to that measure, and signed the bill with reluc

*tance.

And what act of Mr. Van Buren produced or hastened the catastrophe? None whatever. He did indeed decline rescinding the Specie Circular, being satisfied that its operations were salutary both upon the country and the banks.

COURSE OF THE ADMINISTRATION THERE-
UPON.

The people had decided against having a Bank of the United States in the re-election of General Jackson, and Congress had provided by law for the safe-keeping of the public money in certain State banks. By the Constitution and laws of the United States, nothing but gold and silver, or their equivalent, could be received or paid out by the General Government; and the deposite law itself prohibited the employment of any bank as a depository, which did not pay its notes in gold and silver. All the funds of the Government, both of the Treasury and Post Office Departments, were deposited in State banks.

The causes of the suspension of specie payments, are not then to be looked for in the acts or designs of the Administration, but chiefly in the mismanagement of the banks, in which the Bank of the United States took the lead. That the design of Simultaneously, nearly every bank in the Mr. Biddle and his political associates was Union stopped payment. Treating the Govto produce this very result, is by no means ernment as they did the rest of their crediimprobable. It is a part of history that they tors, the bank refused to pay the warrants did, during the panic, coolly and deliberate of the Treasury and the Post Office in any ly, "calm as a summer's morning," pur- thing but their own notes-notes which sue a course which produced the suspension could not be legally offered to a public creditor of several banks, and put many others in in payment. Threats of violence were used jeopardy, with the single view of controll- in Boston, New York, and at other places, ing the Government through the distresses with the view of compelling the Executive of the people, producing a restoration of the to violate the plainest laws, in receiving de deposites, and a re-charter of the bank. preciated and irredeemable paper for all pubWhat would have been the extent of this lic dues. These threats were disregarded, suspension, had not the policy of the bank and the public dues collected in gold and silbeen counteracted by an immense influx of ver. But there was a difficulty in complyspecie, it is impossible to know; but men ing with the laws in paying the public cre- . who were capable of conspiring to accom- ditors, and the funds of the Government beplish their objects in one mode are not too ing shut up in the banks, from which nothing good to conspire its accomplishment in ano- but irredeemable paper could be obtained. ther. The throwing out of twenty millions By the Post Office Department, the diffiby Mr. Biddle, obtaining in Europe, and ex- culty was soon surmounted. The current tending his credit in every direction, was income of that Department being equal to the most insidious and at the same time the its current expenditure, it was only necessamost effective means to tempt the State ry to have its income paid in specie, to meet banks upon dangerous ground, which could all its expenditures in the same currency. have been devised. They had that effect, Prompt and successful steps were taken to and led the whole army of banks into a posi- effect that object, and not a warrant of the tion where they were unable to withstand Postmaster General has been returned profor a month the operations of an adverse tested since the suspension, which has not trade. To the banks themselves, therefore, been promptly paid in specie; and for several the whole mischief is to be ascribed, and months past, all payments have been made chiefly to the Bank of the United States. in that currency. This great establishment, The steps, taken by them which led to the having an income of about four millions of recent catastrophe, were neither the neces- dollars a year, now carried on, without the sary nor the natural result of the measures slightest difficulty, in the midst of the sus

pended banks, receiving and disbursing gold it is exacted from the people, the Adminis and silver only.

vy,

tration proposes no longer to entrust it to the custody of corporations, but to keep it in an independent Treasury. The following are some of the reasons upon which this proposi tion is sustained:

The difficulty would have been as readily surmounted by the Treasury Department, had not its necessary disbursements exceed ed its current income. The sales of public lands, and the importations of dutiable mer- 1. It is obviously the plan originally intendchandise, were almost stopped by the com- ed by the Constitution. It is a provision of mercial revulsion, and it was found necessa- that instrument, that "no money shall be ry to grant indulgence on duty bonds alrea- drawn from the Treasury except in pursu dy given. Thus the resources of the Trea- ance of appropriations made by law." What sury were dried up, while the army and na- does this mean, but that the public money the civil list and diplomatic corps, ne- shall, when collected, be put into a Treasu cessarily gave rise to heavy demands upon ry, and there remain until drawn out to pay it almost daily. It had no alternative, but appropriations made by Congress? Is it not was obliged to render available, as far as wholly inconsistent with the idea that it possible, the funds in bank, and anticipate can be taken out, and lent to the merchants its future receipts. The Secretary of the or others? Suppose that John Campbell, Treasury, therefore, continued to draw upon the Treasurer of the United States, had five the banks; and to enable the holders of his millions of dollars in the Treasury-in a warrants or drafts to use them in payments, vault, room, or chest under his own care if they preferred it to taking bank notes, could he lend $10,000 to Daniel Webster, and to give them the highest practicable $10,000 to Henry Clay, and $1,000,000 to value, made them receivable for duties and Nicholas Biddle, for their private purposes, public lands. This very operation, though pocketing the interest himself; without just to the public creditors, cut off the specie drawing it from the Treasury, in palpable receipts, by anticipating the revenue, and violation of the Constitution? Is not this an gave no effectual relief to the department. application of the public money to private, At their extra-session, Congress granted the illegal, and unauthorized uses, the very thing power to issue Treasury notes, as a means which the restriction in the Constitution of keeping up the credit of the Treasury was intended to prevent? To lend out the with a deficient revenue. It was believed public money is the only purpose for which by many of our most sagacious men, that the banks want it. They do not desire it to this paper would pass at specie par with a keep, but to use. Their peculiar friends very moderate interest, or none at all; but as will not even hear of a special deposite present value cannot be had for them, ex- which would restrict or prevent their using cept by paying them in for public dues, and it. The liberty of using it as they please as the disbursements of the department are is what they demand; in other words, they still greater than its receipts, it has been in claim the privilege of lending it out to their the power of a powerful party press, and customers for their own profit. And is it other hostile interests, to cry them down, not then out of the Treasury? Has it not below par at certain points. Efficient mea- been drawn out, without appropriation, in sures have, however, been adopted to raise palpable violation of the spirit of the Constithem to specie par, and at that rate it is con- tution?

fidently believed they will soon be negotiat- It is not a satisfactory answer to say this ed. In the meantime, the Treasury Depart- practice is of long standing. If it be a pal-, ment has paid specie as far as it had the pow- pable violation of the Constitution, its instant er, and, since the stoppage of specie pay- reformation is an imperative demand of ments by the banks, has actually disbursed principle and duty. The disasters which over six millions of dollars in gold and silver. have followed an abandonment of the ConIt is expected that all its future disburse- stitution on this point, require a return to it ments will be in coin, or its equivalent. as a matter of expediency as well as of prinReceipts are beginning to flow in, and in a ciple.

THE INDEPENDENT TREASURY.

short time they will probably exceed the 2. An Independent Treasury is necessary current expenditure, when all embarrass- to maintain the independence and efficiency ments will be at an end. of the Government. We have much in English history as well as in the productions To avoid the embarrassments encountered of our own statesmen, about the "union of the from the stoppage of the banks for ever purse and the sword" in the same hands. In hereafter, and secure the faithful application Great Britain, the power to declare war and of the public money to the purpose for which raise an army and marine, is vested in the

King, and that is called "the sword." The gone to speculators and others, with the ca power to raise money to pay the army and pital of the banks, the stoppage of the banks marine, is vested in the Parliament, and was necessarily the stoppage of the Treasuthat is called "the purse." ." The King holds ry. The Executive could not execute the "the sword" and the Parliament holds the acts of Congress; he could not pay a soldi purse." This arrangement checks the King, er or sailor, a clerk or contractor, in the and protects the liberties of the people from legal currency of the United States, though Executive aggression. nominally there were twenty-seven milli. In our Government, Congress only can ons of dollars in the Treasury, already apdeclare war and authorize the raising of an propriated for that purpose. And the efarmy and marine, and, therefore, Congress holds "the sword." Congress only can raise money to pay the army and marine, and, therefore, Congress holds "the purse" also. In these provisions is a double check upon Executive aggression. He has neither "the purse" nor "the sword" until Congress put them into his hands by law; and although, after they have given him "the sword" by declaring war, they cannot withdraw or close up "the purse" by refusiug to raise money.

forts made to fulfil the obligations and keep the faith of the Government, under circumstances brought upon it by these safe purseholders, have been the constant theme of abuse, taunt, and ridicule, by their organs and advocates ever since!

Now, are not the liberties of this people safe under the guardianship of the Legislative, Executive, and Judicial departments of their Government? Must we have a third power to step in between the Legisla tive and Executive departments, nullify the But modern avarice and ingenuity have laws passed by the former by obstructing introduced a new purse holder-it is the the constitutional action of the latter? Is banks. Congress or Parliament can no not the guardianship of Congress over the longer be trusted with "the purse"-it is public purse sufficient? When Congress safe only in the hands of banks! Such is raised money, and appropriated it, is it not the modern theory. Let us see what may safe to let the Executive have it to apply be the practical operation of this theory. to the designated objects? Must a third Congress declares war and raises twenty power, independent of both, be brought in millions of money to carry it on, which, in- to check the Executive, and refuse him stead of being deposited in the Treasury, the means to execute the laws of Congress, under charge of the appropriate officers, is and discharge the obligations of the Governput into sundry banks, which now become ment? the purse-holders of the Government. These It must not be overlooked that this foreign banks are opposed to the war, and think power is as much a check upon Congress as "the condition and circumstances of the upon the Executive. It is in vain that Concountry," will not justify its prosecution. gress raises money and appropriate it, if The Executive applies to them for the mo- there be a third power which can interpose ney provided by Congress to pay the army and prevent its expenditure. It is in vain and navy, and they withhold it for the pur- that Congress declares war, and raises mopose of putting an end to the war. Is this ney to carry it on, if they put it into the the check which the Constitution intended custody of an independent and irresponsito impose on the Executive? On the con- ble power, which has the will as well as trary, is it not a third power introduced into the ability to withhold it from the Executhe Government, unknown to the Constitu- tive and thus prevent its application to the tion, and subversive as well of the just support of an army and navy. This principowers of Congress as of the President? ple puts not only the Executive, but ConLook at what actually has happened. gress also, directly under the control of the Last May the deposite banks had on hand, banks, and without their consent, a ship about twenty-seven millions of the public cannot sail, and an army cannot march. money, every dollar of which was appro- This check upon popular government is priated by Congress, or directed to be de- of modern invention. It is not one of those posited with the States. These laws the safeguards of liberty which was fought for Executive was proceeding to execute, when in the Revolution. There was not a bank the banks suddenly stopped payment. If in 1776 within the limits of the thirteen the money had been in the Treasury, as the States. They are not, found to constitute Constitution requires, the Executive could a part of the State Government in their earhave drawn it out in pursuance of law, and ly constitutions; they formed no part of the carried into execution the will of Congress. General Government under the Articles of But as the money of the Government was Confederation; and they were directly re

pudiated by the Convention which formed our present Constitution. If the Continental Congress resorted to a bank, it was not for the purpose of keeping their money, (for none they had,) but as a means of getting money to carry on the war. The first Bank of the United States was not created for a depository of the public moneys, (for there is no such provisión in its charter,) but as a means of restoring and sustaining the public credit. In the charter of the second Bank of the United States, granted in 1816, is found the first gern of this power, which it is now insisted must interpose between the legislative and Executive Departments of the Government, in order to prevent an "union of the purse and the sword." Of ten and loudly has it been asserted by new lights of the age, that the United States Bank had an absolute right to the public moneys, and that it was usurpation in the Executive to deposite them elsewhere; and it has since been attempted to vest such a right in the State banks. Constituting no part of the Government, not elected to any office of the people, or appointed by the President or any public authority, independent of the people, and substantially irresponsible to the Government, it is maintained that they ought to be entrusted with one of the most delicate and resposible functions of the executive power.

centre of the solar system. When the banks at that point stop, they all stop, nor can they resume with any convenience in their business, unless the banks of the two great cities set the example. When the New York banks stepped payment in May last, the shock ran with electric speed through the whole credit system, and the banks of all the States were prostrated at a blow. And now we are told, that the banks of Ohio, Kentucky and the most distant States, cannot resume without a movement from the centre. Thus the eight hundred banks are one in their essential operations; they are a consolidated, concentrated power, though seemingly under various jurisdictions, yet effectually controlled by the few" men who govern and direct the banks in New York and Philadelphia. Nor does it materially alter the case in this respect, whether this controlling power be organized and regulated under the name of a Bank of the United States chartered by Congress, or left in the hands of banks, great or small. chartered by the States. Its organization under the name of a Bank of the United States undoubtedly increases its influence by concentrating its power in one head; but the seat of the mischief is in the laws of trade and the nature of our credit system. Though most fearfully illustrated in a Bank of the United States, its consolidated tendencies are equally palpable in the operations of the State banks. Passing scenes prove the dependence of the extremes upon the centre too clearly and conclusively to require argument as proof to satisfy the mind of the reader.

The Constitutions of the States, of the United States,establish Governn ents which when carried out by law, are complete in all their parts. The checks which the safety of liberty requires, are found in the adjustment of the several Departments in relation to each other, and various written Is it not apparent that as far as the Genprohibitions. The interposition of banks eral Governinent and State Governments as purse-holders is no part of the constitu- identify themselves with the banks, they tional plan; it is a modern innovation; it is become consolidated into one great whole? the intrusion of a new and irresponsible The General Government and State Govpower, subversive of the purity of the Governments had become dependent on banks ernment, fatal to its independence, and for their actual currency and the keeping dangerous to its existence. If it be suffer- of their treasures. By a single blow their ed to progress and confirm itself in its us- currency is depreciated and their treasures urpation, questions of peace and war, of commerce. trade, and taxation, will be'decided, not by the representatives of the people and of the States in Congress, but by the presidents and directors of banks in secret conclave assembled.

are rendered unavailable. By whom and where was this blow struck? Not by any legitimate authority in the General Government cr in the several States. The blow came through the banks of New York, and was felt in the most distant States in the 3. Another argument in favor of an In- Union. All the States and the Union it. dependent Treasury is found in the centra- self were found to be dependent on that lizing influence and consolidating tendency centre, there was concentrated the power of the bank power. New York and Phila- to control all our Governments and people delphia are so close together that they may in this respect; in relation to the currency be called the centre of our commercial and and credit system, the States were found monetary system. The interior banks, the to be consolidated already, and the ruling orbs of our credit system, are as dependent power sits enthroned in New York and on that centre as the planets are on the Philadelphia!