Thirty Years' View (Vol. II of 2)

"He had desired a long time to say this much to the House; and he said it now, although a little out of order, because he had never been allowed to say it in order. At the last session the House would not hear him upon any thing; and it was that consideration which induced him to offer the resolutions he had read, and which gave something like a sample of these things. He offered them after the very message calling for $50,000 for this very object, had come in. But no, it was not in order, and there was a gentleman here who cried out "I object!" He (Mr. A.) was not heard by the House, but he had now been heard; and he hoped that when he should again offer these resolutions, as he wished to do, they might at least be allowed to go on the journal as a record, to show that such propositions had been offered. Those resolutions went utterly and entirely against the system of purchasing State bonds above par, and selling them fifty or sixty per cent. below par."

These debates are instructive, as showing in what manner legislation can be carried on, under the silencing process of the previous question. Here was a bill, slipped through the House, without the knowledge of its vigilant members, by which a fund of one million two hundred thousand dollars was squandered at once, and a charge of about $100,000 per annum put upon the Treasury to supply the place of the squandered fund, to continue during the lives of the pensioners, so far as they were widows or invalids, and until twenty-one years of age, so far as they were children. And it is remarkable that no one took notice of the pregnant insinuation of Mr. Adams, equivalent to an affirmation, that, although he could not tell the whole story of the passage of the act of 1837, there were others in the House who could, if they would; and also could tell what private interests were provided for.

No branch of the public service requires the reforming and retrenching hand of Congress more than the naval, now costing (ocean steam mail lines included) above eighteen millions of dollars: to be precise – $18,586,547, and 41 cents; and exclusive of the coast survey, about $400,000 more; and exclusive of the naval pensions. The civil, diplomatic, and miscellaneous branch is frightful, now amounting to $17,255,929 and 59 cents: and the military, also, now counting $12,571,496 and 64 cents (not including the pensions). Both these branches cry aloud for retrenchment and reform; but not equally with the naval – which stands the least chance to receive it. The navy, being a maritime establishment, has been considered a branch of service with which members from the interior were supposed to have but little acquaintance; and, consequently, but little right of interference. I have seen many eyes open wide, when a member from the interior would presume to speak upon it. By consequence, it has fallen chiefly under the management of members from the sea-coast – the tide-water districts of the Atlantic coast: where there is an interest in its growth, and also in its abuses. Seven navy yards (while Great Britain has but two); the constant building and equally constant repairing and altering vessels; their renewed equipment; the enlistment and discharge of crews; the schools and hospitals; the dry docks and wet docks; the congregation of officers ashore; and the ample pension list: all these make an expenditure, perennial and enormous, and always increasing, creates a powerful interest in favor of every proposition to spend money on the navy – especially in the north-east, where the bulk of the money goes; and an interest not confined to the members of Congress from those districts, but including a powerful lobby force, supplied with the arguments which deceive many, and the means which seduce more. While this management remains local, reform and retrenchment are not to be expected; nor could any member accomplish any thing without the support and countenance of an administration. Besides a local interest, potential on the subject, against reform, party spirit, or policy, opposes the same obstacle. The navy has been, and still is, to some degree, a party question – one party assuming to be its guardian and protector; and defending abuses to sustain that character. So far as this question goes to the degree, and kind of a navy – whether fleets to fight battles for the dominion of the seas, or cruisers to protect commerce – it is a fair question, on which parties may differ: but as to abuse and extravagance, there should be no difference. And yet what but abuse – what but headlong, wilful, and irresponsible extravagance, could carry up our naval expenditure to 18 millions of dollars, in time of peace, without a ship of the line afloat! and without vessels enough to perform current service, without hiring and purchasing!

CHAPTER LXXIII.

HOME SQUADRON, AND AID TO PRIVATE STEAM LINES

Great Britain has a home squadron, and that results from her geographical structure as a cluster of islands, often invaded, more frequently threatened, and always liable to sudden descents upon some part of her coast, resulting from her proximity to continental Europe, and engaged as principal or ally in almost all the wars of that continent. A fleet for home purposes, to cruise continually along her coasts, and to watch the neighboring coasts of her often enemies, was, then, a necessity of her insular position. Not so with the United States. We are not an island, but a continent, geographically remote from Europe, and politically still more so – unconnected with the wars of Europe – having but few of our own; having but little cause to expect descents and invasions, and but little to fear from them, if they came. Piracy had disappeared from the West Indies twenty years before. We had then no need for a home squadron. But Great Britain had one; and therefore we must. That was the true reason, with the desire for a great navy, cherished by the party opposed to the democracy (no matter under what name), and now dominant in all the departments of the government, for the creation of a home squadron at this session. The Secretary of the Navy and the navy board recommended it: Mr. Thomas Butler King, from the Naval Committee of the House, reported a bill for it, elaborately recommended in a most ample report: the two Houses passed it: the President approved it: and thus, at this extra session, was fastened upon the country a supernumerary fleet of two frigates, two sloops, two schooners, and two armed steamers: for the annual subsistence and repairs of which, about nine hundred thousand dollars were appropriated. This was fifteen years ago; and the country has yet to hear of the first want, the first service, rendered by this domestic squadron. In the mean time, it furnishes comfortable pay and subsistence, and commodious living about home, to some considerable number of officers and men.

But the ample report which was drawn up, and of which five thousand extra copies were printed, and the speeches delivered in its favor were bound to produce reasons for this new precaution against the danger of invasion, now to be provided after threescore years of existence without it, and when we had grown too strong, and too well covered our maritime cities with fortresses, to dread the descent of any enemy. Reasons were necessary to be given, and were; in which the British example, of course, was omitted. But reasons were given (in addition to the main object of defence), as that it would be a school for the instruction of the young midshipmen; and that it would give employment to many junior officers then idle in the cities. With respect to the first of these reasons it was believed by some that the merchant service was the best school in which a naval officer was ever trained; and with respect to the idle officers, that the true remedy was not to create so many. The sum appropriated by the bill was in gross – so much for all the different objects named in the bill, without saying how much for each. This was objected to by Mr. McKay of North Carolina, as being contrary to democratic practice, which required specific appropriations; also as being a mere disguise for an increase of the navy; and further that it was not competent for Congress to limit the employment of a navy. He said:

"That the bill before the committee proposed to appropriate a gross sum to effect the object in view, which he deemed a departure from the wholesome rule heretofore observed in making appropriations. It was known to all that since the political revolution of 1800, which placed the democratic party in power, the doctrine had generally prevailed, that all our appropriations should be specific. Now he would suggest to the chairman whether it would not be better to pursue that course in the present instance. Here Mr. McKay enumerated the different items of expenditure to be provided for in the bill, and named the specific sum for each. This was the form, he said, in which all our naval appropriation bills had heretofore passed. He saw no reason for a departure from this wholesome practice in this instance – a practice which was the best and most effectual means of securing the accountability of our disbursing officers. There was another suggestion he would throw out for the consideration of the chairman, and he thought it possessed some weight. This bill purported to be for the establishment of a home squadron, but he looked upon it as nothing more nor less than for the increase of the navy. Again, could Congress be asked to direct the manner in which this squadron, after it was fitted out, should be employed? It was true that by the constitution, Congress alone was authorized to build and fit out a navy, but the President was the commander-in-chief, and had alone the power to direct how and where it should be employed. The title of this bill, therefore, should be 'a bill to increase the navy,' for it would not be imperative on the President to employ this squadron on our coasts. Mr. M. said he did not rise to enter into a long discussion, but merely to suggest to the consideration of the chairman of the committee, the propriety of making the appropriations in the bill specific."

"Mr. Wise said that he agreed entirely with the gentleman from North Carolina as to the doctrine of specific appropriations; and if he supposed that this bill violated that salutary principle he should be willing to amend it. But it did not; it declared a specific object, for which the money was given. He did not see the necessity of going into all the items which made up the sum. That Congress had no power to ordain that a portion of the navy should be always retained upon the coast as a home squadron, was to him a new doctrine. The bill did not say that these vessels should never be sent any where else."

"Mr. McKay insisted on the ground he had taken, and went into a very handsome eulogy on the principle of specific appropriations of the public money, as giving to the people the only security they had for the proper and the economical use of their money; but this, by the present shape of the bill, they would entirely be deprived of. The bill might be modified with the utmost ease, but he should move no amendments."

Mr. Thomas Butler King, the reporter of the bill, entered largely into its support, and made some comparative statements to show that much money had been expended heretofore on the navy with very inadequate results in getting guns afloat, going as high as eight millions of dollars in a year and floating but five hundred and fifty guns; and claimed an improvement now, as, for seven millions and a third they would float one thousand and seventy guns. Mr. King then said:

"He had heard much about the abuse and misapplication of moneys appropriated for the navy, and he believed it all to be true. To illustrate the truth of the charge, he would refer to the table already quoted, showing on one hand the appropriations made, and on the other the results thereby obtained. In 1800 there had been an appropriation of $2,704,148, and we had then 876 guns afloat; while in 1836, with an appropriation of $7,011,055, we had but 462 guns afloat. In 1841, with an appropriation of a little over three millions, we had 836 guns afloat; and in 1838, with an appropriation of over eight millions, we had but 554 guns afloat. These facts were sufficient to show how enormous must have been the abuses somewhere."

Mr. King also gave a statement of the French and British navies, and showed their great strength, in order to encourage our own building of a great navy to be able to cope with them on the ocean. He

"Alluded to the change which had manifested itself in the naval policy of Great Britain, in regard to a substitution of steam power for ordinary ships of war. He stated the enumeration of the British fleet, in 1840, to be as follows: ships of the line, 105; vessels of a lower grade, in all, 403; and war steamers, 87. The number of steamers had since then been stated at 300. The French navy, in 1840, consisted of 23 ships of the line, 180 lesser vessels, and 36 steamers; besides which, there had been, at that time, eight more steamers on the stocks. These vessels could be propelled by steam across the Atlantic in twelve or fourteen days. What would be the condition of the lives and property of our people, if encountered by a force of this description, without a gun to defend themselves?"

Lines of railroad, with their steam-cars, had not, at that time, taken such extension and multiplication as to be taken into the account for national defence. Now troops can come from the geographical centre of Missouri in about sixty hours (summoned by the electric telegraph in a few minutes), and arrive at almost any point on the Atlantic coast; and from all the intermediate States in a proportionately less time. The railroad, and the electric telegraph, have opened a new era in defensive war, and especially for the United States, superseding old ideas, and depriving invasion of all alarm. But the bill was passed – almost unanimously – only eight votes against it in the House; namely: Linn Boyd of Kentucky; Walter Coles of Virginia; John G. Floyd of New York; William O. Goode of Virginia; Cave Johnson, Abraham McClelland, and Hopkins L. Turney of Tennessee; and John Thompson Mason of Maryland. It passed the Senate without yeas and nays.

A part of the report in favor of the home squadron was also a recommendation to extend assistance out of the public treasury to the establishment of private lines of ocean steamers, adapted to war purposes; and in conformity to it Mr. King moved this resolution:

"Resolved, That the Secretary of the Navy is hereby directed to inquire into the expediency of aiding individuals or companies in our establishment of lines of armed steamers between some of our principal Northern and Southern ports, and to foreign ports; to advertise for proposals for the establishment of such lines as he may deem most important and practicable; and to report to this House at the next session of Congress."

This resolution was adopted, and laid the foundation for those annual enormous appropriations for private lines of ocean steamers which have subjected many members of Congress to such odious imputations, and which has taken, and is taking, so many millions of the public money to enable individuals to break down competition, and enrich themselves at the public expense. It was a measure worthy to go with the home squadron, and the worst of the two – each a useless waste of money; and each illustrating the difficulty, and almost total impossibility, of getting rid of bad measures when once passed, and an interest created for them.

CHAPTER LXXIV.

RECHARTER OF THE DISTRICT BANKS: MR. BENTON'S SPEECH: EXTRACTS

Mr. Benton then proposed the following amendment:

"And be it further enacted, That each and every of said banks be, and they are hereby, expressly prohibited from issuing or paying out, under any pretence whatever, any bill, note, or other paper, designed or intended to be used and circulated as money, of a less denomination than five dollars, or of any denomination between five and ten dollars, after one year from the passage of this bill; or between ten and twenty dollars, after two years from the same time; and for any violation of the provisions of this section, or for issuing or paying out the notes of any bank in a state of suspension, its own inclusive, the offending bank shall incur all the penalties and forfeitures to be provided and directed by the first section of this act for the case of suspension or refusal to pay in specie; to be enforced in like manner as is directed by that section."

Mr. Benton. The design of the amendment is to suppress two great evils in our banking system: the evil of small notes, and that of banks combining to sustain each other in a state of suspension. Small notes are a curse in themselves to honest, respectable banks, and lead to their embarrassment, whether issued by themselves or others. They go into hands of laboring people, and become greatly diffused, and give rise to panics; and when a panic is raised it cannot be stopped among the holders of these small notes. Their multitudinous holders cannot go into the counting-room to examine assets, and ascertain an ultimate ability. They rush to the counter, and demand pay. They assemble in crowds, and spread alarm. When started, the alarm becomes contagious – makes a run upon all banks; and overturns the good as well as the bad. Small notes are a curse to all good banks. They are the cause of suspensions. When the Bank of England commenced operations, she issued no notes of a less denomination than one hundred pounds sterling; and when the notes were paid into the Bank, they were cancelled and destroyed. But in the course of one hundred and three years, she worked down from one hundred pound notes to one pound notes. And when did they commence reducing the amount of their notes? During the administration of Sir Robert Walpole. When the notes got down to one pound, specie was driven from circulation, and went to France and Holland, and a suspension of six and twenty years followed.

They are a curse to all good banks in another way: they banish gold and silver from the country: and when that is banished the foundation which supports the bank is removed: and the bank itself must come tumbling down. While there is gold and silver in the country – in common circulation – banks will be but little called upon for it: and if pressed can get assistance from their customers. But when it is banished the country, they alone are called upon, and get no help if hard run. All good banks should be against small notes on their own account.

These small notes are a curse to the public. They are the great source of counterfeiting. Look at any price current, and behold the catalogue of the counterfeits. They are almost all on the small denominations – under twenty dollars. And this counterfeiting, besides being a crime in itself, leads to crimes – to a general demoralization in passing them. Holders cannot afford to lose them: they cannot trace out the person from whom they got them. They gave value for them; and pass them to somebody – generally the most meritorious and least able to bear the loss – the day-laborer. Finally, they stop in somebody's hands – generally in the hands of a working man or woman.

Why are banks so fond of issuing these small notes? Why, in the first place, banks of high character are against them: it is only the predatory class that are for them: and, unfortunately, they are a numerous progeny. It is in vain they say they issue them for public accommodation. The public would be much better accommodated with silver dollars, gold dollars – with half, whole, double, and quarter eagles – whereof they would have enough if these predatory notes were suppressed. No! they are issued for profit – for dishonest profit – for the shameful and criminal purpose of getting something for nothing. It is for the wear and tear of these little pilfering messengers! for their loss in the hands of somebody! which loss is the banker's gain! the gain of a day's or a week's work from a poor man, or woman, for nothing. Shame on such a spirit, and criminal punishment on it besides. But although the gains are small individually, and in the petty larceny spirit, yet the aggregate is great; and enters into the regular calculation of profit in these paper money machines; and counts in the end. There is always a large per centum of these notes outstanding – never to come back. When, at the end of twenty-five years, Parliament repealed the privilege granted to the Bank of England to issue notes under five pounds, a large amount were outstanding; and though the repeal took place more than twenty years ago, yet every quarterly return of the Bank now shows that millions of these notes are still outstanding, which are lost or destroyed, and never will be presented. The Bank of England does not now issue any note under five pounds sterling: nor any other bank in England. The large banks repulsed the privilege for themselves, and got it denied to all the small class. To carry the iniquity of these pillaging little notes to the highest point, and to make them open swindlers, is to issue them at one place, redeemable at another. That is to double the cheat – to multiply the chance of losing the little plunderer by sending him abroad, and to get a chance of "shaving" him in if he does not go.

The statistics of crime in Great Britain show, that of all the counterfeiting of bank bills and paper securities in that kingdom, more is counterfeited on notes under five pounds than over and it is the same in this country. On whom does the loss of these counterfeit notes fall? On the poor and the ignorant – the laborer and the mechanic. Hence these banks inflict a double injury on the poorer classes; and of all the evils of the banking system, the most revolting is its imposing unequal burdens on that portion of the people the least able to bear them.

Mr. B. then instanced a case in point of an Insurance Company in St. Louis, which, in violation of law, assumed banking privileges, and circulated to a large extent the notes of a suspended bank. Up to Saturday night these notes were paid out from its counter, and the working man and mechanics of St. Louis were paid their week's wages in them. Well, when Monday morning came, the Insurance Company refused to receive one of them, and they fell at once to fifty cents on the dollar. Thus the laborer and the mechanic had three days of their labor annihilated, or had worked three days for the exclusive benefit of those who had swindled them; and all this by a bank having power to receive or refuse what paper they please, and when they please. And the Senate are now called upon to confer the same privilege upon the banks of this district.

Mr. B. said it was against the immutable principles of justice – in opposition to God's most holy canon, to make a thing of value to-day, which will be of none to-morrow. You might as well permit the dry goods merchant to call his yard measure three yards, or the grocer to call his quart three quarts, as to permit the banker to call his dollar three dollars. There is no difference in principle, though more subtle in the manner of doing it. Money is the standard of value, as the yard, and the gallon, and the pound weight, were the standards of measure.

When he proposed the amendment, he considered it a proper opportunity to bring before the people of the United States the great question, whether they should have an exclusive paper currency or not. He wished to call their attention to this war upon the currency of the constitution – a war unremitting and merciless – to establish in this country an exclusive paper currency. This war to subvert the gold and silver currency of the constitution, is waged by that party who vilify your branch mints, ridicule gold, ridicule silver, go for banks at all times and at all places; and go for a paper circulation down to notes of six and a quarter cents. He rejoiced that this question was presented in that body, on a platform so high that every American can see it – the question of a sound or depreciated currency. He was glad to see the advocates of banks, State and national, show their hand on this question.

To hear these paper-money advocates celebrate their idols – for they really seem to worship bank notes – and the smaller and meaner the better – one would be tempted to think that bank notes were the ancient and universal currency of the world, and that gold and silver were a modern invention – an innovation – an experiment – the device of some quack, who deserved no better answer than to be called humbug. To hear them discoursing of "sound banks," and "sound circulating medium," one would suppose that they considered gold and silver unsound, and subject to disease, rottenness, and death. But, why do they apply this phrase "sound" to banks and their currency? It is a phrase never applied to any thing which is not subject to unsoundness – to disease – to rottenness – to death. The very phrase brings up the idea of something subject to unsoundness; and that is true of banks of circulation and their currency: but it is not true of gold and silver: and the phrase is never applied to them. No one speaks of the gold or silver currency as being sound, and for the reason that no one ever heard of it as rotten.