H. OF R.] Bank of the United States. [NOVEMBER, 1814. which would have been thrown in the opposite | But even if such a disposition as was feared by scale to that of the United States. Mr. W. was desirous not only that the United States but that the agricultural interest of the country should hold a due proportion in the stock of this bank, to keep it out of the exclusive control of the commercial class, which he intimated was generally in the British interest, and not a few actually connected in business with British houses. The landed and manufacturing interest, he argued, ought to be at least equally interested in the bank with the commercial. It was necessary the Government should hold both stock and direction in the bank, to guard the United States against the operation of any foreign influence, &c. Mr. CALHOUN, finding, as he said, from the course of the debate, that the eyes of the committee had been so entirely directed to the main object of the amendment adopted yesterday, that they had overlooked the part of it to which this section had reference, rose to explain the reasons of his present motion. Whether the provision now under consideration should be struck out or retained, he contended, depended on the situation of the nation. He was clearly of opinion, that, in the present situation of the nation, it ought to be struck ought. One great object of this bank was to afford the means of relieving the nation from difficulties under which it now labored. By striking out this section, the Government would not, he said, lose the advantages it would derive from retaining it, inasmuch as the twenty millions, instead of being vested by the United States in stock, would assume the shape of Treasury notes, and in reality produce the effect, by their absorption in the bank, of an immediate loan to the Government. Which, he asked, does the United States now most want, a capital or the use of a capital? He said he should be glad, indeed, abstractedly, that the United States should possess a share in the capital of the bank; he should be glad the United States should possess a capital in the bank on which they could draw one, two, or three per cent. more interest than they had to pay for it. But we want still more the use of the capital. If any gentleman could conceive the situation of the country to be such that we could lock up instead of using these twenty millions of capital, he would vote against this amendment. The capital, he said, would not be lost to the United States, but would assume for them the most active and most efficient form, by means of the Treasury notes, which, being put into circulation and absorbed by the Government, would effect an immediate loan to the Government. But, it had been said, unless the United States held some share in the bank, it would fall into the hands of our enemies. Mr. C. said he did not think so harshly as the gentleman from Maryland of the commercial interest; in the large, he believed, that great interest to be American, notwithstanding some exceptions might be found to that character. the gentleman should exist, it would not be controlled by retaining the present provisions of the bill, because the twenty directors could always vote down the five proposed to be appointed by the Executive, if there should arise a contest between the Government and the bank. But there was another means of protecting the Government against the bank, more potent and certain than any such provisions; let the United States retain the power over its deposites, and over the receipt of the bank notes in payment of duties and debts to the Government, and it would possess a sufficient control over the bank. Mr. FORSYTH admitted an immediate loan would be an advantage to the Government; but was such a loan wanted, to the proposed amount, in addition to the taxes to be raised by the bills now before the House? He contended that it probably would not. But, if it would, he argued that part of the project was imprac ticable, because of the difficulty of throwing into market forty-four millions of dollars of Treasury notes; whereas, if twenty millions of that amount were subscribed in stock in behalf of the United States, the balance of twenty-four millions would be all disposed of, and would probably be sufficient for all the purposes of the Government. Even for the benefit of the gentleman's plan, therefore, this feature ought to be retained. Mr. CALHOUN said, that if fifteen millions of the forty-four millions of Treasury notes were applied, as he had suggested, to the purchase of stock, and five millions to the redemption of Treasury notes falling due at the commencement of the next year, there would be no difficulty in disposing of the remainder of them. He said, to invest twenty millions in the capital stock of the bank would be acting like a man without a dollar in his pocket offering to lend out money at an interest lower than he has to pay for it for his use. If the demands of the Treasury during the next year did not require the whole of these notes, Mr. C. said, a part could be retained until the year after, and thus provision be made for two years. If the subscriptions were received monthly, in twelve instalments, there would never be out at one time more than two millions, much less than the amount of Treasury notes now in circulation. There would be no doubt, he thought, of their being sought for with avidity. Mr. INGHAM, of Pennsylvania, said that, if the whole amount of Treasury notes now proposed to be issued should not be wanted in the course of the next year, it would unquestionably be more to the interest of the Government to invest twenty millions of the amount in stock in the bank, provided it would be an advantage to them to possess that stock. Allowing the stock of the bank to advance as it might be expected to do, it would afford a profit to the United States, in twelve months, of six millions of dol NOVEMBER, 1814.] Bank of the United States. [H. OF R lars; and the United States would, besides, dis- | amount. It almost necessarily followed, from the pose of the capital stock at its full value whenever they chose. Mr. FORSYTH still questioned the ability to circulate so large an amount of Treasury notes; because they were not like bank paper, which could at any time command specie; nor would they circulate even as well as the present Treasury notes, because not payable at the end of the year, but to be funded in six per cent. stock. The fact that money is not to be paid for the proposed issue of Treasury notes, would be as well known to the people of the United States as this House. The circulation of Treasury notes at present was principally among those who have money on hand for which they have not immediate use, which they invest in Treasury notes in preference to this public stock; because, at the same time that they produce an interest, they are payable at a day certain. The Treasary notes to be issued will not suit such persons, and will therefore probably have a very limited circulation. Mr. KILBOURN said he had voted for the amendment yesterday, without any idea that the other amendments indicated by its mover would necessarily follow. He hoped the section now under consideration would not be struck out. For, though he had ever believed the establishment of a National Bank one of the most important objects, yet, if this motion prevailed, he should greatly deprecate it. Was it true, he asked, that this nation was so embarrassed in its finances, was in such a critical situation, that to obtain money for a year it was necessary to establish a colossal institution, with a charter which it would be beyond the power of this Government to alter for twenty years; that might, in one year, if amended as proposed, fall entirely under the direction of the enemies of the Government? He trusted not. If, on the other hand, this stock was taken by the Government in the bank, it might be sold at any moment, if necessary, at twenty per cent. profit, or at least without a sacrifice, and thus furnish the United States with as much money as it would sell for. Mr. LOWNDES supported the motion to strike out this section. The reservation of twenty millions for the United States, of the capital of the bank, would, he said, unquestionably be attended with some advantages. It could not be denied that it would, by the strength of this capital, or by selling it at an advance, afford the means of obtaining money for the service of the Government in the year 1816. But the course proposed by gentlemen was to lessen the security of the loan for 1815, in order, with remarkable foresight, to provide the ways and means for the year 1816. Mr. L. said he differed from his colleague as to the application of fifteen millions of Treasury notes to the purchase of public debt, and five millions for the redemption of Treasury notes. The object of Mr. L. was nothing more than this to induce the House to reduce the capital of the bank from its present proposed main points of his colleague's plan, that the capital should be reduced. It was impossible every Treasury note thrown out should be absorbed in the bank at the times of subscription; and the amount to be issued must therefore, of necessity, exceed the amount to be paid in as a part of the capital stock of the bank. It was important, in giving additional value to the Treasury notes, that the bank stock should be made as valuable as it could. The success of the plan for immediately aiding Government by the means proposed, must depend on the value of the Treasury notes, which must depend on the value of the shares in the bank. The less valuable the shares in the bank, as they would be by the retention of so large a capital stock, the less temptation would there be to purchase the notes or stock, which is the basis of the subscription. Mr. L. said he hoped, before this subject was finally acted on, the committee would limit to thirty or thirty-five millions, to some moderate, some reasonable amount, the circulation of the bank, and thus guard against danger of the plan from the amount of capital, at the same time that it would increase the value of the Treasury notes. The plan of the gentleman before him, (Mr. FORSYTH,) he thought it obvious, provided for the demands of the public service in 1816, by rendering utterly hazardous, if not entirely defeating, the provision for 1815. He denied that the Treasury notes to be issued in pursuance of this plan would be less valuable than those now in circulation. It was impossible, he said, in the nature of things; but, in furnishing additional modes of application of them, the committee would increase instead of diminishing the value of Treasury notes, &c. After a few words from Mr. RHEA, of Tennessee, indicative of an impatience for the question, the committee agreed to Mr. CALHOUN's motion by the following vote: For the motion 79, against it 53. So the third section was struck out. The committee then proceeded in further examination and amendment of the details of the bill; in the course of which considerable debate took place, involving generally the minor principles of the art or science of banking. Among the amendments agreed to were the following, viz: To strike out so much as gives the Government a share in the direction of the bank; so much as prohibits the bank from selling the United States stock, which may come into its possession; so much as binds the bank to loan thirty millions to the Government, &c. A motion was made by Mr. LEWIS, of Virginia, and supported by Mr. PEARSON, to amend that part of the section authorizing the bank to establish offices of discount, deposit, and distribution, so as to require the bank, whenever the Government may direct it, to establish an office of discount and deposit at the city of Washington, with a capital (not less than five millions of dollars). After striking out the latter clause within parentheses, the motion was negatived. H. OF R.] Public Buildings. [NOVEMBER, 1814. When the committee rose for to-day, an | ship against the petitioners, moved that the reamendment was under discussion affecting the port should lie on the table. manner in which the bank shall pay specie for its notes, whether at all its offices, or at the Mother Bank only. Immediately on the committee's rising, the House adjourned. SATURDAY, November 19. The motion to lay the report on the table was negatived; and the yeas and nays thereon having been required by Mr. HANSON, of Maryland, the question on the adoption of the report was decided in the affirmative. For the report 80, against it 43. MONDAY, November 21. Mr. EPPES, of Virginia, from the Committee of Ways and Means, reported a bill to provide additional revenue for defraying the expenses of the Government and maintaining public credit, by laying duties on carriages for the conveyance of persons, and the harness thereof; which was twice read, and committed. Public Buildings. Mr. LEWIS, of Virginia, from the committee on the subject, made the following report: Mr. YANCEY, of North Carolina, from the committee of Claims, made an unfavorable report on the petition of Renner & Heath, of the city of Washington. The report is as follows: That the petitioners were owners of ropewalks in the city of Washington, in which were contained a large quantity of spun yarns and navy cordage, all of which was destroyed by the enemy in his late incursion into this city. On or about the 20th of July last, one of the petitioners, Mr. Heath, applied to Mr. Southerlan, the owner of some long boats then ly. ing in the Potomac, and engaged of him five of them to transport his cordage and yarns up the river, if the enemy should invade the city. On the 18th or 19th of August, it was deemed expedient, by General Winder, to impress the boats of Mr. Southerlan, for the purpose of transporting the troops across the Potomac, which were kept in the employment of the Government until after the invasion of the city. On the 20th of August the petitioners applied for the boats, according to contract, for the purpose of removing their property, when they were informed that they were impressed. It also appears to the committee, that on the 22d of August the petitioners employed a wagon and nine or ten carts, for the purpose of removing the property, but the wagon and two or three of the carts were impressed by the officers of the departments, to remove the public papers and property; and that seven of the carts employed, after taking loads from the ropewalks out of the city, refused to return to haul These reports were accompanied by estimates of any more for the petitioners, apprehending, if they various amounts, forming an average of $458,000. did, they would be impressed into the employment of The whole first cost of these buildings appears to the Government. It is also stated, and believed, that, have been $1,215,110 10. after that day, and before the enemy entered the city, carriages were not to be had in the city to remove the property. The loss of the petitioners, exclusive of the price of the ropewalks, is estimated at about thirty-four thousand eight hundred dollars; they ask of Congress to be reimbursed to the amount of their loss. The committee are of opinion the Government is under no obligation to pay for the property. The destruction of private property by the enemy, in the progress of the war, is much to be regretted and highly deprecated; but when it does happen, it is to be considered, between the Government and its citizens, as one of the calamities of war. It may be presumed, that the circumstance of the boats, wagon, and carts being impressed by the Government to perform services valuable to it, may create some equitable considerations in favor of the petitioners. It is, however, believed by the committee, not to be sufficient to authorize them to allow the claim; they, therefore, recommend to the House the following resolution: Resolved, That the prayer of the petitioners ought not to be granted. The committee to whom was referred a resolution directing them to inquire into the expediency of rebuilding or repairing the public buildings, &c., report that, among the first steps deemed necessary in discharge of the duties assigned them, they caused the Superintendent of the City to lay before them the reports of several architects and mechanics of reputed skill and character, who had, at his request, examined the remains of the public buildings, all of whom reported, as their opinion, that the walls generally had not been materially damaged, and were not rendered unsafe or insufficient to rebuild on, conformably either to the former plan, or to some variations sug gested, or such as may be adopted as improvements in the rebuilding. With the view of better understanding the grounds, and probable accuracy of the reports and estimates, the committee attended personally at the Capitol, and examined the state of that building, where, after a conference, and making such inquiries of an architect on the spot, as were considered proper, they were induced to believe that the walls of both wings of the Capitol may be safely built on, and that the estimated expense of about $250,000 for repairing the same, was as nearly accurate, and as much to be relied on, as could be reasonably expected, or as circumstances either admitted or required. With the foregoing information, the committee proceeded to a due and general consideration of the subject-matter referred to them, and readily came to the decision, that it was expedient, either to repair the late buildings, or to build others in their stead on different sites; but as it appeared that the latter could not be effected without incurring a great additional expense, so much greater, as the committee conceived, than would be counterbalanced by any "public interest or convenience" to be derived from a "change of sites," they were of opinion that it would be inexpedient to make such a change. ConMr. FARROW, of South Carolina, for the reason nected with this part of the duty prescribed by the that he thought the principles of the report committee, it may not be improper that they should questionable, and involving a case of great hard-state to the House the representations of sundry in NOVEMBER, 1814.] Remonstrance of N. Y. Banks against the proposed National Bank. Representatives of the United States: [H. OF R dividuals, who allege, and offer to prove, that the | To the Senate and House of The memorial of the subscribers, committees appointed by five of the banks in the city of New York, to take into consideration all matters relating to the state of credit in the city, respectfully represents That your memorialists, with great deference to the wisdom of Congress, presume that it will not be considered as unbecoming in them to express their opinions on a subject which they have practically under their constant view. That they see with great alarm the proposed incorporation of a Bank of the United States with a capital of fifty millions of dollars; not that they are insensible of the advantages of such an institution, but because they are persuaded, in their most deliberate view of the subject, that the present time is most inauspicious for the creation of such a bank, and that so far from aiding the fiscal operations of the Government, it will, in their opinion, tend to embarrass still more, than the adverse circumstances of the times have already done, all public as well as Your memorialists firmly believe that the proposed capital will be found too large. From the suggestions of the architects consulted, and also from the observations of the committee, they are of opinion that parts of the walls, arches, and columns, of the late buildings, are in a state requir-private credit. ing a small expense for workmanship and materials, to preserve them from injury by the weather, and from falling down, thereby endangering the vaulting which supports some of the floors, and which at present is very little, if at all, weakened by the burning; but as there is no money applicable to the payment of such expense, inconsiderable as it may be, the committee beg leave to suggest the propriety of an appropriation for that object. The committee think it not irrelative to the object of their inquiries, though it is not specifically enjoined, to state, also, that the several banks within the District of Columbia, desirous of facilitating an object so interesting to the District, have made a formal and binding offer, in writing, to advance on loan to the Government, upon reasonable terms, the sum of five hundred thousand dollars, to be applied exclusively to the purpose of rebuilding or repairing the President's house, Capitol, and public offices. Conformably to the foregoing statement, the committee ask leave to report a bill. Mr. LEWIS then reported a bill, making appropriations for repairing or rebuilding the public buildings in the city of Washington. [The bill proposes to authorize the President of the United States to cause to be forthwith rebuilt or re paired the public buildings, on their present sites; and for this purpose exclusively, to borrow such sum as may be necessary for the purpose, from the banks or individuals within the District.] Twice read, and committed. WEDNESDAY, November 23. Remonstrance of New York Banks against the proposed National Bank. Mr. IRVING presented the memorial of a committee appointed by five of the banks in the city of New York, to take into consideration all matters relating to the state of credit in that city, remonstrating against the proposed incorporation of the subscribers to the Bank of the United States of America; which was read, and ordered to lie on the table. The memorial is as follows: That six millions of dollars in specie cannot be obtained by any inducements which can be held out, and that a less sum will not afford a proper security to the public. That, even if six millions could be procured, the payment of the notes in specie could only be continued for a short period, under the present circumstances of the country. That if, by the exercise of the power proposed to be lodged in the President of the United States, the notes are not paid in specie, they will infallibly depreciate. That, if they depreciate, no existing bank can possibly take them without the greatest injury to their stockholders. That if the notes are not taken by the present banks throughout the United States, they cannot serve as a general medium of circulation. A full discussion of this subject, your memorialists are well aware, would transgress the proper limits of this memorial; they will therefore confine themselves to a few of the reasons which have induced them to form these opinions. They think that the capital will be found too large, because the ten millions of dollars at the period of our greatest late Bank of the United States had only a capital of commercial prosperity, and, since the expiration of the charter of that bank, the amount of its capital has been much more than supplied by the incorpo ration of other banks. It is believed to have been the opinion of the part of the community best informed on that subject, that this amount was abundantly sufficient. Your memorialists therefore cannot but dread the effects which a new banking capital of fifty millions must have upon the paper circulation of the country, particularly when it is considered, that the proposed bank is to be pledged to lend exigencies will probably very soon call for, withont to the Government thirty millions, which the public any power of refusal being left to those who are to manage the bank, even if convinced that the emission of so large a sum in notes must be ruinous to the bank itself. It is well known that a great and constant drain of the precious metals from the United States has H. OF R.] Death of the Vice President. It has been supposed that the want of a medium of general circulation rendered a National Bank necessary; but your memorialists beg leave to observe, that while they admit the want of a medium, they are quite persuaded that bank notes will not answer the purpose, unless they can be exchanged at pleasure for specie, or taken generally by the banks throughout the United States. If your memorialists are right in the opinions already stated, it appears to follow, as a necessary consequence, that the notes of the proposed bank will not supply the place of a general medium. [NOVEMBER, 1814. existed for a long time past, while supplies of them | own notes will nearly cease, and they will be left in have been cut off by the war; and that the alarms possession of notes redeemable at some future uncernecessarily existing during a war, have induced tain period and bearing no present interest. Can many timid and cautious persons to hoard specie, the such a sacrifice of the interest of their constituents consequence of which has been to render a suspen-be called for or expected from the present institutions? sion of specie payments necessary to the different banks in Baltimore, Philadelphia, New York, and in various other parts of the United States. Notwithstanding the utmost care has been taken to restrain the circulation of notes within moderate bounds, yet it has been found impossible to prevent a difference in value between specie and the notes of banks in the best credit. This difference is now, in the city of New York, from twelve to fifteen per cent., and in other places still greater. Your memorialists have therefore no hesitation in giving it as their opinion that six millions of specie cannot be procured; but they are persuaded also, that, if procured, that sum could not long supply specie payments, because, as the same causes are likely still to operate, and with increased effect, when the paper circulation is so much increased as it must be by the proposed loans to the Government, it is believed that as fast as the notes are issued they will be returned for specie; as they bear no interest, there will be no inducement for any person to hold them, to counteract the great advantage offered by the high price for specie, in sending them for payment. If it should be found necessary to restrain the bank from paying specie, your memorialists are convinced the notes will depreciate. The Treasury notes which have been issued have done so, although in much less quantity, and under more favorable circumstances, because bearing interest and being payable at definite periods. While Treasury notes have these obvious advantages, it is not perceived that the notes of the proposed bank will have any to balance them, the security having been presumed the same in both cases. The expenses of the war must, in the first instance, be paid in these notes, and of course they will be, to a considerable extent, in the hands of persons who must, of necessity, dispose of them for what they will bring. The late Bank of the United States, while redeeming its notes in specie and possessing the entire support of the Government and the confidence of the public, never had, it is believed, more than six millions of notes in circulation. The banks in the city of New York, whose aggregate capital is about fifteen millions of dollars, have not, upon an average, had a circulation of more than five millions, although possessing all the advantages to be derived from the business and support of the Government in this city. Presuming that the proportion of circulation to capital is nearly the same in other parts of the United States, and taking into view that the circulation is probably as great at the present period as, under the circumstances of the country and the removal of the check of specie payments, it can safely be, can it be doubted what the effect of an additional emission even of twenty millions of paper will necessarily be? As it appears evident to your memorialists that the notes of the proposed bank must depreciate, it appears equally so, that no existing bank can take them without the greatest injury to their stockholders. However disposed they may be to aid the fiscal operations of the Government, yet, from the moment the notes are depreciated, if they are taken either in payment or in deposites, all their debts will be paid in that description of paper, the circulation of their As your memorialists are persuaded that the best interests of the United States require that the suspension of specie payments, which has unfortunately been found necessary, should be continued for as short a period as possible, they dread the increased difficulty which an additional paper circulation probably of thirty or forty millions will occasion; they fear it will approach to an insuperable bar to the resumption of specie payments; while, on the other hand, a National Bank, founded upon proper principles, and at a more favorable period, when there was a reasonable prospect of continuing to pay specie, would offer the best remedy for the deranged state of the circulation, and a most powerful instrument to renovate the commercial credit of the United States. Your memorialists beg the indulgence of Congress when they add, that they have no doubt that Treasury bills, issued nearly in the way proposed by the Committee of Ways and Means of the House of Representatives, would be found of more service to the Government, be much less dangerous to the public, and tend much more to supply the want of a general medium of circulation. They believe that Treasury notes, issued for various denominations, redeemable at the pleasure of the Government, but not at any definite periods, bearing interest while in circulation at the present rate, but fundable at the opinion of the holder at a higher rate of interest, would be less liable to depreciation than the notes of a bank bearing no interest, and the security being the same. The present interest on the Treasury notes would offer an inducement to keep them, and, whenever the market was overcharged, the power to fund them at a higher rate of interest would take off the redundance. In this way the issue of Treasury notes would probably operate, to a considerable amount, as a constant loan at a reduced rate of interest: nor should it be overlooked that the consequences of a deprecation, if it unfortunately should take place, would neither be so extensive nor so lasting as in the case of a Bank of the United States. [Signed by the President and Cashiers of the Bank of New York, the Merchants' Bank, the Union Bank, and the Bank of America, and the New York Manufacturing Company.] THURSDAY, November 24. Mr. MACON, of North Carolina, rose and ob served, that, after the melancholy event record |