Thirty Years' View (Vol. I of 2)

All history tells of the throwing overboard of the tea in Boston harbor: it has not been equally attentive to the burning of the tea in Annapolis harbor. It was the summer of 1774 that the brigantine "Peggy Stewart" approached Annapolis with a cargo of the forbidden leaves on board. The people were in commotion at the news. It was an insult, and a defiance. Swift destruction was in preparation for the vessel: instant chastisement was in search of the owners. Terror seized them. They sent to Charles Carroll as the only man that could moderate the fury of the people, and save their persons and property from a sudden destruction. He told them there was but one way to save their persons, and that was to burn their vessel and cargo, instantly and in the sight of the people. It was done: and thus the flames consumed at Annapolis, what the waves had buried at Boston: and in both cases the spirit and the sacrifice was the same – opposition to taxation without representation, and destruction to its symbol.

CHAPTER CXV.

COMMENCEMENT OF THE SESSION 1834-'35: PRESIDENT'S MESSAGE

Towards the close of the previous session, Mr. Stevenson had resigned the place of speaker of the House of Representatives in consequence of his nomination to be minister plenipotentiary and envoy extraordinary to the court of St. James – a nomination then rejected by the Senate, but subsequently confirmed. Mr. John Bell of Tennessee, was elected speaker in his place, his principal competitor being Mr. James K. Polk of the same State: and, with this difference in its organization, the House met at the usual time – the first Monday of December. The Cabinet then stood: John Forsyth, Secretary of State, in place of Louis McLane, resigned; Levi Woodbury, Secretary of the Treasury; Lewis Cass, Secretary at War; Mahlon Dickerson, Secretary of the Navy; William T. Barry, Post Master General; Benjamin Franklin Butler, Attorney General. The condition of our affairs with France, was the prominent feature of the message, and presented the relations of the United States with that power under a serious aspect. The indemnity stipulated in the treaty of 1831 had not been paid – no one of the instalments; – and the President laid the subject before Congress for its consideration, and action, if deemed necessary.

"I regret to say that the pledges made through the minister of France have not been redeemed. The new Chambers met on the 31st July last, and although the subject of fulfilling treaties was alluded to in the speech from the throne, no attempt was made by the King or his Cabinet to procure an appropriation to carry it into execution. The reasons given for this omission, although they might be considered sufficient in an ordinary case, are not consistent with the expectations founded upon the assurances given here, for there is no constitutional obstacle to entering into legislative business at the first meeting of the Chambers. This point, however, might have been overlooked, had not the Chambers, instead of being called to meet at so early a day that the result of their deliberations might be communicated to me before the meeting of Congress, been prorogued to the 29th of the present month – a period so late that their decision can scarcely be made known to the present Congress prior to its dissolution. To avoid this delay, our minister in Paris, in virtue of the assurance given by the French minister in the United States, strongly urged the convocation of the Chambers at an earlier day, but without success. It is proper to remark, however, that this refusal has been accompanied with the most positive assurances, on the part of the Executive government of France, of their intention to press the appropriation at the ensuing session of the Chambers.

"If it shall be the pleasure of Congress to await the further action of the French Chambers, no further consideration of the subject will, at this session, probably be required at your hands. But if, from the original delay in asking for an appropriation; from the refusal of the Chambers to grant it when asked; from the omission to bring the subject before the Chambers at their last session; from the fact that, including that session, there have been five different occasions when the appropriation might have been made; and from the delay in convoking the Chambers until some weeks after the meeting of Congress, when it was well known that a communication of the whole subject to Congress at the last session was prevented by assurances that it should be disposed of before its present meeting, you should feel yourselves constrained to doubt whether it be the intention of the French government in all its branches to carry the treaty into effect, and think that such measures as the occasion may be deemed to call for should be now adopted, the important question arises, what those measures shall be."

The question then, of further delay, waiting on the action of France, or of action on our own part, was thus referred to Congress; but under the constitutional injunction, to recommend to that body the measures he should deem necessary, and in compliance with his own sense of duty, and according to the frankness of his temper, he fully and categorically gave his own opinion of what ought to be done; thus:

"It is my conviction that the United States ought to insist on a prompt execution of the treaty; and, in case it be refused, or longer delayed, take redress into their own hands. After the delay, on the part of France, of a quarter of a century, in acknowledging these claims by treaty, it is not to be tolerated that another quarter of a century is to be wasted in negotiating about the payment. The laws of nations provide a remedy for such occasions. It is a well-settled principle of the international code, that where one nation owes another a liquidated debt, which it refuses or neglects to pay, the aggrieved party may seize on the property belonging to the other, its citizens or subjects, sufficient to pay the debt, without giving just cause of war. This remedy has been repeatedly resorted to, and recently by France herself towards Portugal, under circumstances less unquestionable."

"Since France, in violation of the pledges given through her minister here, has delayed her final action so long that her decision will not probably be known in time to be communicated to this Congress, I recommend that a law be passed authorizing reprisals upon French property, in case provision shall not be made for the payment of the debt at the approaching session of the French Chambers. Such a measure ought not to be considered by France as a menace. Her pride and power are too well known to expect any thing from her fears, and preclude the necessity of the declaration that nothing partaking of the character of intimidation is intended by us. She ought to look upon it as the evidence only of an inflexible determination on the part of the United States to insist on their rights. That Government, by doing only what it has itself acknowledged to be just, will be able to spare the United States the necessity of taking redress into their own hands, and save the property of French citizens from that seizure and sequestration which American citizens so long endured without retaliation or redress. If she should continue to refuse that act of acknowledged justice, and, in violation of the law of nations, make reprisals on our part the occasion of hostilities against the United States, she would but add violence to injustice, and could not fail to expose herself to the just censure of civilized nations, and to the retributive judgments of Heaven."

In making this recommendation, and in looking to its possible result as producing war between the two countries, the President showed himself fully sensible to all the considerations which should make such an event deplorable between powers of ancient friendship, and their harmony and friendship desirable for the sake of the progress and maintenance of liberal political systems in Europe. And on this point he said:

"Collision with France is the more to be regretted, on account of the position she occupies in Europe in relation to liberal institutions. But in maintaining our national rights and honor, all governments are alike to us. If, by a collision with France, in a case where she is clearly in the wrong, the march of liberal principles shall be impeded, the responsibility for that result, as well as every other, will rest on her own head."

This State of our relations with France gave rise to some animated proceedings in our Congress, which will be noticed in their proper place. The condition of the finances was shown to be good – not only adequate for all the purposes of the government and the complete extinguishment of the remainder of the public debt, but still leaving a balance in the treasury equal to one fourth of the annual income at the end of the year. Thus:

"According to the estimate of the Treasury Department, the revenue accruing from all sources, during the present year, will amount to twenty millions six hundred and twenty-four thousand seven hundred and seventeen dollars, which, with the balance remaining in the Treasury on the first of January last, of eleven millions seven hundred and two thousand nine hundred and five dollars, produces an aggregate of thirty-two millions three hundred and twenty-seven thousand six hundred and twenty-three dollars. The total expenditure during the year for all objects, including the public debt, is estimated at twenty-five millions five hundred and ninety-one thousand three hundred and ninety dollars, which will leave a balance in the Treasury on the first of January, 1835, of six millions seven hundred and thirty-six thousand two hundred and thirty-two dollars. In this balance, however, will be included about one million one hundred and fifty thousand dollars of what was heretofore reported by the department as not effective."

This unavailable item of above a million of dollars consisted of local bank notes, received in payment of public lands during the years of general distress and bank suspensions from 1819 to 1822; and the banks which issued them having failed they became worthless; and were finally dropt from any enumeration of the contents of the treasury. The extinction of the public debt, constituting a marked event in our financial history, and an era in the state of the treasury, was looked to by the President as the epoch most proper for the settlement of our doubtful points of future policy, and the inauguration of a system of rigorous economy: to which effect the message said:

"Free from public debt, at peace with all the world, and with no complicated interests to consult in our intercourse with foreign powers, the present may be hailed as the epoch in our history the most favorable for the settlement of those principles in our domestic policy, which shall be best calculated to give stability to our republic, and secure the blessings of freedom to our citizens. While we are felicitating ourselves, therefore, upon the extinguishment of the national debt, and the prosperous state of our finances, let us not be tempted to depart from those sound maxims of public policy, which enjoin a just adaptation of the revenue to the expenditures that are consistent with a rigid economy, and an entire abstinence from all topics of legislation that are not clearly within the constitutional powers of the Government, and suggested by the wants of the country. Properly regarded, under such a policy, every diminution of the public burdens arising from taxation, gives to individual enterprise increased power, and furnishes to all the members of our happy confederacy, new motives for patriotic affection and support. But, above all, its most important effect will be found in its influence upon the character of the Government, by confining its action to those objects which will be sure to secure to it the attachment and support of our fellow-citizens."

The President had a new cause of complaint to communicate against the Bank of the United States, which was the seizure of the dividends due the United States on the public stock in the institution. The occasion was, the claim for damages which the bank set up on a protested bill of exchange, sold to it on the faith of the French treaty; and which was protested for non-payment. The case is thus told by the President:

"To the needless distresses brought on the country during the last session of Congress, has since been added the open seizure of the dividends on the public stock, to the amount of $170,041, under pretence of paying damages, cost, and interest, upon the protested French bill. This sum constituted a portion of the estimated revenues for the year 1834, upon which the appropriations made by Congress were based. It would as soon have been expected that our collectors would seize on the customs, or the receivers of our land offices on the moneys arising from the sale of public lands, under pretences of claims against the United States, as that the bank would have retained the dividends. Indeed, if the principle be established that any one who chooses to set up a claim against the United States may, without authority of law, seize on the public property or money wherever he can find it, to pay such claim, there will remain no assurance that our revenue will reach the treasury, or that it will be applied after the appropriation to the purposes designated in the law. The paymasters of our army, and the pursers of our navy, may, under like pretences, apply to their own use moneys appropriated to set in motion the public force, and in time of war leave the country without defence. This measure, resorted to by the Bank, is disorganizing and revolutionary, and, if generally resorted to by private citizens in like cases, would fill the land with anarchy and violence."

The money thus seized by the bank was retained until recovered from it by due course of law. The corporation was sued, judgment recovered against it, and the money made upon a writ of execution; so that the illegality of its conduct in making this seizure was judicially established. The President also communicated new proofs of the wantonness of the pressure and distress made by the bank during the preceding session – the fact coming to light that it had shipped about three millions and a half of the specie to Europe which it had squeezed out of the hands of the people during the panic; – and also that, immediately after the adjournment of Congress, the action of the bank was reversed – the curtailment changed into extension; and a discount line of seventeen millions rapidly ran out.

"Immediately after the close of the last session, the bank, through its president, announced its ability and readiness to abandon the system of unparalleled curtailment, and the interruption of domestic exchanges, which it had practised upon from the 1st of August, 1833, to the 30th of June, 1834, and to extend its accommodations to the community. The grounds assumed in this annunciation amounted to an acknowledgment that the curtailment, in the extent to which it had been carried, was not necessary to the safety of the bank, and had been persisted in merely to induce Congress to grant the prayer of the bank in its memorial relative to the removal of the deposits, and to give it a new charter. They were substantially a confession that all the real distresses which individuals and the country had endured for the preceding six or eight months, had been needlessly produced by it, with the view of effecting, through the sufferings of the people, the legislative action of Congress. It is a subject of congratulation that Congress and the country had the virtue and firmness to bear the infliction; that the energies of our people soon found relief from this wanton tyranny, in vast importations of the precious metals from almost every part of the world; and that, at the close of this tremendous effort to control our government, the bank found itself powerless, and no longer able to loan out its surplus means. The community had learned to manage its affairs without its assistance, and trade had already found new auxiliaries; so that, on the 1st of October last, the extraordinary spectacle was presented of a national bank, more than one half of whose capital was either lying unproductive in its vaults, or in the hands of foreign bankers."

Certainly this was a confession of the whole criminality of the bank in making the distress; but even this confession did not prevent the Senate's Finance Committee from making an honorable report in its favor. But there is something in the laws of moral right above the powers of man, or the designs and plans of banks and politicians. The greatest calamity of the bank – the loss of thirty-five millions of stock to its subscribers – chiefly dates from this period and this conduct. Up to this time its waste and losses, though great, might still have been remediable; but now the incurable course was taken. Half its capital lying idle! Good borrowers were scarce; good indorsers still more so; and a general acceptance of stocks in lieu of the usual security was the fatal resort. First, its own stock, then a great variety of stocks were taken; and when the bank went into liquidation, its own stock was gone! and the others in every imaginable degree of depreciation, from under par to nothing. The government had directors in the bank at that time, Messrs. Charles McAllister, Edward D. Ingraham, and – Ellmaker; and the President was under no mistake in any thing he said. The message recurs to the fixed policy of the President in selling the public stock in the bank, and says:

"I feel it my duty to recommend to you that a law be passed authorizing the sale of the public stock; that the provision of the charter requiring the receipt of notes of the bank in payment of public dues, shall, in accordance with the power reserved to Congress in the 14th section of the charter, be suspended until the bank pays to the treasury the dividends withheld; and that all laws connecting the government or its officers with the bank, directly or indirectly, be repealed; and that the institution be left hereafter to its own resources and means."

The wisdom of this persevering recommendation was, fortunately, appreciated in time to save the United States from the fate of other stockholders. The attention of Congress was again called to the regulation of the deposits in State banks. As yet there was no law upon the subject. The bill for that purpose passed in the House of Representatives at the previous session, had been laid upon the table in the Senate; and thus was kept open a head of complaint against the President for the illegal custody of the public moneys. It was not illegal. It was the custody, more or less resorted to, under every administration of the federal government, and never called illegal except under President Jackson; but it was a trust of a kind to require regulation by law; and he, therefore, earnestly recommended it. The message said:

"The attention of Congress is earnestly invited to the regulation of the deposits in the State banks, by law. Although the power now exercised by the Executive department in this behalf is only such as was uniformly exerted through every administration from the origin of the government up to the establishment of the present bank, yet it is one which is susceptible of regulation by law, and, therefore, ought so to be regulated. The power of Congress to direct in what places the Treasurer shall keep the moneys in the Treasury, and to impose restrictions upon the Executive authority, in relation to their custody and removal, is unlimited, and its exercise will rather be courted than discouraged by those public officers and agents on whom rests the responsibility for their safety. It is desirable that as little power as possible should be left to the President or Secretary of the Treasury over those institutions, which, being thus freed from Executive influence, and without a common head to direct their operations, would have neither the temptation nor the ability to interfere in the political conflicts of the country. Not deriving their charters from the national authorities, they would never have those inducements to meddle in general elections, which have led the Bank of the United States to agitate and convulse the country for upwards of two years."

The increase of the gold currency was a subject of congratulation, and the purification of paper by the suppression of small notes a matter of earnest recommendation with the President – the latter addressed to the people of the States, and every way worthy of their adoption. He said:

"The progress of our gold coinage is creditable to the officers of the mint, and promises in a short period to furnish the country with a sound and portable currency, which will much diminish the inconvenience to travellers of the want of a general paper currency, should the State banks be incapable of furnishing it. Those institutions have already shown themselves competent to purchase and furnish domestic exchange for the convenience of trade, at reasonable rates; and not a doubt is entertained that, in a short period, all the wants of the country, in bank accommodations and exchange, will be supplied as promptly and as cheaply as they have heretofore been by the Bank of the United States. If the several States shall be induced gradually to reform their banking systems, and prohibit the issue of all small notes, we shall, in a few years, have a currency as sound, and as little liable to fluctuations, as any other commercial country."

The message contained the standing recommendation for reform in the presidential election. The direct vote of the people, the President considered the only safeguard for the purity of that election, on which depended so much of the safe working of the government. The message said:

"I trust that I may be also pardoned for renewing the recommendation I have so often submitted to your attention in regard to the mode of electing the President and Vice-President of the United States. All the reflection I have been able to bestow upon the subject, increases my conviction that the best interests of the country will be promoted by the adoption of some plan which will secure, in all contingencies, that important right of sovereignty to the direct control of the people. Could this be attained, and the terms of those officers be limited to a single period of either four or six years, I think our liberties would possess an additional safeguard."

CHAPTER CXVI.

REPORT OF THE BANK COMMITTEE

Early in the session the Finance Committee of the Senate, which had been directed to make an examination into the affairs of the Bank of the United States, made their report – an elaborate paper, the reading of which occupied two hours and a half, – for this report was honored with a reading at the Secretary's table, while but few of the reports made by heads of departments, and relating to the affairs of the whole Union, received that honor. It was not only read through, but by its author – Mr. Tyler, the second named of the committee; the first named, or official chairman, Mr. Webster, not having acted on the committee. The report was a most elaborate vindication of the conduct of the bank at all points; but it did not stop at the defence of the institution, but went forward to the crimination of others. It dragged in the names of General Jackson, Mr. Van Buren, and Mr. Benton, laying hold of the circumstance of their having done ordinary acts of duty to their friends and constituents in promoting their application for branch banks, to raise false implications against them as having been in favor of the institution. If such had been the fact, it did not come within the scope of the committee's appointment, nor of the resolution under which they acted, to have reported upon such circumstance: but the implications were untrue; and Mr. Benton being the only one present that had the right of speech, assailed the report the instant it was read – declaring that such things were not to pass uncontradicted for an instant – that the Senate was not to adjourn, or the galleries to disperse without hearing the contradiction. And being thus suddenly called up by a sense of duty to himself and his friends, he would do justice upon the report at once, exposing its numerous fallacies from the moment they appeared in the chamber. He commenced with the imputations upon himself, General Jackson and Mr. Van Buren, and scornfully repulsed the base and gratuitous assumptions which had been made. He said: