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Under the first supposed modification of our coinage, bullion? and, under such a seiniorage, would not the viz. by a seiniorage, the depositor receives $1,500, with United States have possessed, at tbis time, a more copiwhich he can discharge a previous contract of that amount; ous metallic currency? The solution of this question, es. under the latter, he receives from the same deposite pecially the latter branch of it, is vital to the whole inquiry. $1,485, with which he can discharge only that amount of It may, in the first place, be incidentally observed that a previous contract. It is manifest, in this latter instance, the shipment of the national coins is not the real evil unthat the depositor pays the charge of coinage; but who der which the country, in the case supposed, actually pays it in the former? The depositor, in the case sup- suffers. It is the one complained of generally, because posed, escapes. The first creditor, who receives the new it is a visible fact associated with that commercial distress coins in payment of a previous contract, and has no debt which results from importing too freely, in proportion to to discharge with them, it would appear, must pay it. the amount of exports. It may, however, be more corAll who receive more of these coins than they can ap. rectly regarded as a remedy for the real evil, and a reply on account of previous contracts, sustain a propor- straint on its progress. It is, perhaps, the only remedy tional sbare.

that can be steadily relied on; it grows spontaneously out All creditors under previous engagements, therefore, of the exigence, and is proportioned thereto. are liable to be affected injuriously by the change. The The effect of diminishing the amount of bullion in that Government is a creditor to the amount of the public coin which constitutes the measure of value, it appears revenue, which is generally receivable in coins by tale. manisestly, is to advance the price of foreign coins; the l's expenditures are also disbursed, to a certain extent, premium on which, in the market, exposes, the most imby a tale of coins previously setiled, and so far the effect mediately, the deterioration of a measure of value. Bills on the public Treasury is neutralized, by transferring it of exchange will be, in like manner; advanced in price, to other receiving pariies; but so far as its expenditures estimated on the previous par. It must be equally plaia embrace objects liable to the vibrations of price, the pub- that its effects will extend to every article between the lic Treasury pays, in the consequential advance on all shipment of which, and the exportation of the national supplies, a share of the seiniorage on coinage.

coin, a merchant may be balancing to make his choice, The Government can do its creditors justice by a when a remittance abroad is to be effected under a dischange of the tale they are to receive, and can reinstate advantageous state of foreign commerce. the public Treasury in the available amount of its re. If the national coin, consiituting the measure of value, ceipts, by a proportional advance on the contributions to had been made in any assignable proportion, say ten per the revenue. When all these adjustments have been made, cent. inferior in its weighi of fine silver to our present and prices have become conformed to the new measure coinage, the advance on foreign coios, bills, and proof value, the condition of things will be the same as if, .duce, would have been in proportion, and all the rela. instead of the dollar of 416 grains of standard silver, it tions of the question as to preference in making & remil. had been declared, in the original institution of the mint, tance, would have been the same; the national coins that 411.84 grains should constitute the dollar, so that would only have been, as they now are, among the last 1,309 ounces should be coined into $1,515 15, and that means resorted to in foreigo remittances. They tend one per cent, of the number of coins, viz. $15 15, should however to be employed, as they can be most efficient, be retained by the Government.

and will be exported io some extent, when it is perceiv. A small seiniorage would involve, indeed, a derange- ed that the bullion they contain, however small in proporment of existing relations nearly inappreciable in its ef. tion to that of other coins of which they are the measure, fec's. It does not, however, appear to be recommended will pay more debt abroad than can be effected with those by any advantage, as a device for supporting the mint, coins, with bills of exchange, or produce purchased, at which should entitle it to a preference over the more di- existing rates, by the national coin at home. rect mode of retaining an equal proportion of the coins The national Coira, therefore, it appears, will espel the of full weight. It is liable to specific objections, and its foreign under a seiniorage, and more promptly, perhaps aspects moreover, are wholly inauspicious.

to some extent, if the seiniorage be high; but when these A high seinorage must produce a corresponding dis. have been expelled, our own coins must, in some propos. turbance of existing relations, with obvious inequity in tion, follow them, if the exigence continue, and no seio. its first effects, and an eventual equivalent advance in all iorage can protect them further. prices. The results of this policy, when it has been tried The question s'ill, however, occurs, Would not the by an emb>prassed Government as a source of revenue, amount of silver in our currency, at this time, have or a relief from instant debis, are in confirmation of the been greater under a seiniorage than according to our above views. I am aware, however, that the inquiry does present system, and greater under a high seinjorage than not extend ihus far.

a low one? But may not a seiniorage produce a decided tendency It is all but certain that the amount would have been in the national coins thus minted, to remain in the circu- no greater under a seinivrage of one per cent., operating lation of the country?

from the commencement of the mint, and it can be renIf the above principles be true, the coins thug minted dered not a little probable that it would have been less will remain in ihe circulation until all coins containing by a higher seiniorage. more bullion, under a given legal value, bave been ex- To possess a full metallic currency, consisting of a coin pelled; or until such coins, and all other forms of bullion, which constitutes the measure of value, and is of course together with bills of exchange, and all production esti- a universal tender for all payments, requires not merely mated by the new measure of value, shall bave so ad. that the national coins should not be exported on slight vanced in price, that the bullion contained in the national emergencies, but that the bullion from which they are to coin will be considered as not less available in the foreign be supplied shall come freely to the mint. market than the coin is at home. When this state of our The mint was established in tbe year 1792. commercial relations has arrived, the national coins con- the first twenty years of the intervening period, ending stituting the measure of value will be shipped, as conve- with 1811, foreign exchange was below the real par, so nience shall suggest, 10 the party interested.

that no inducement existed to export specie in perference But would not this evil of an exportation of the national to buying bills. During nearly all that period, Spanish coin be deferred and restrained, if not wholly obviated, dollars commanded a premium of one to five per cent. under a seiniorage which should make the legal value of for the purpose of the China Trade; so that, in reference our coins more conspicuously higher than their value as to Spanish dollars, wbich formed ibe efficient excess of


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the metallic currency, the national coins were under the purpose, in regard to wbich our coins were deemed in. influence of a relation equivalent, in iis effects, to a sein- ferior, a consideration baving precisely the effect of a jorage of that range. Silver, moreover, was generally seiniorage in its influence to resirain Spanish dollars from very abundant in the country, yet the national coins did coming to the mint, few of those dollars were offered for not largely accumulate in the circulation. Silver was coinage. It is also observable that when Spanish dollars slowly offered for coinage. Few persons found adequate rose for this particular application of them to 4 per cent., motives to induce them to incur the loss of bringing it became equal to the shipper whether he should ship Spanish dollars to the mint. They were to the holder our own dollars, or buy Spanish dollars with them at that more available as foreign dollars than they would have disproportion. If, at that moment, a seiniorage of 1 per become in coins of the United States. When the pre-cent. had been directed to be taken from our silver coins, mium on Spanish dollars reached about four per cent., the premium on Spanish dollars would immediately have the dollar of the United States came into competition advanced to five; the new emissions would have been with them. This being about the extent to wbich they just as liable to be shipped along with Spanish dollars were underrated in China, their value as bullion for that under this premium, as the previous issues were at four market thus became equal to their use as coin inale pur. per cent., and the dollars previously coined would have chase of Spanish dollars.

accompanied them at a premium of 1 per centThe During ihe first ten years from the institution of the President, in 1805, interposed more efficiently, by directmint, ending with the year 1801, the amount of silver ing that the coinage of dollars should be suspended at the coined was, in round numbers, $1,574,000. Within the mint: this remedy met the particular exigence. The second period of ten years, ending with 1811, the amount Chinese, through prejudice, undervalued the dollar; the was $4,858,000. In the third period, ending with 1821, lower denominations they refused. the amount was $6,180,000. And within the last period Adverting to the facts of the last ten years, it appears of ten years, ending December 31, 1831, the amount was that when Spanish dollars are at a premium of about $18,325,000. During the last year alone it exceeded per cent. for exportation to Europe, the general bullion three millions of dollars.

market, it is about equal to the exporter whether these Within the first two periods, the exportation of our shall be shipped at this rate, or our silver coins substitunational coins must have been very inconsiderable, for ted for them; the preference would probably depend on reasons before suggested. But the ien'years ending with the circumstance of finding either class in convenient 1821, including the war, and the subsequent years of quantities, without trouble, or of a late emission, and extreme disturbance in the currency, present a different therefore to be relied on as free from impurities. If at aspect. An exhausting exportation of specie marked such a moment a seiniorage of one per cent. were or. this period, the result of causes surmounting all imagin- dered to be exacted, the premium estimated by the new able control of any seiniorage, or other system of legisla. emission, which will be the measure of value, instantly tive restraint.

rises to 1 per cent., and the question of preference reThe exportation of our silver coins within the last pe- mains the same; the inefficiency of the procedure beriod was not very important in amount. They have, du- comes apparent as to a protection of our own coins. ring the greater part of that interval, been protected by

The conclusion from these views, wbich seems consoforeign coins, which were preferred for exportation even

mant to reason, and sustained by abundant analogies, is, at a small premium. Besides supplying this demand for that even a small premium on foreign coin, or seiniorage remittance abroad, a large surplus of foreign coins bas on that national coin which is the measure of value, reannually been sent to the mine for cuinage. It is, on strains deposites in a proportional degree from coming to the whole, rendered exceedingly probable, on adequate the mint, and that a higher seiniorage exerts no adequate data, that the residue of previous issues, which remained influence to retain them in circulation. at the commencement of 1822, was greater than the It may therefore be reasonably inferred that the agamount which has been exported within the subsequent gregate of the silver coins of the United States, now in years, and that the silver coins of the United States, now our currency, is probably greater than it would have been remaining in our currency, exceed twenty-one millions of if a seiniorage equal only to the expense of coinage had dollars.

been, from the first establishment of the institution, ex One fact meriting notice, which is presented by this acted at ihe mint. The premium on foreign silver within comparative view, is, that, previous to 1812, when there the periods examined, it appears, bas very sensibly rewas no inducement to export our coins, bills being al. stricted the amount of coinage; a seiniorage would have most constanıly below the true par, the issues from the made the premium higher. mint were very trivial in amouni: less than half a million In the preceding illustrations, the Spanish dollar, un. of dollars annually, it appears, was added to our metallic der its various forms, bas borne a prominent share. They currency in our own coins, even within the last half of constitute a large proportion of our deposites. The rea. this period, although the mint had been in action, and soning is in no way less applicable to bars of silver, or inviting deposites, during a previous period of ten years. bullion in any other form. If foreign coins become the

Another fact presented is also instructive, and more material for the mint to operate on, they become so as encouraging. During the last period of ten years, be- bullion. When a merchant is hesitating whether he shall ginning wiih 1822, and ending with 1831, foreign ex- send to the mint his importation of silver, consisting part. change has been almost invariably above the true par, ly of Spanish dollars, and partly of silver in bars, or exand frequently to such an extent as to make a remittance port them to Europe, and draw bills for the value, he in silver preferable to that by bills. Spanish dollars, in- knows thal, in exporting them, they are alike available cluding Spanish American, have very frequently borne a by weight as bullion. And, universally, it may be stated, small premium, for this purpose, of 1 io per cent. that when, under any given regulation of our mint, forWithin this period, bowever, the exportation has fallen eign silver coins are repelled to a market where they are lightly on our silver coins, and the supply of silver for disposed of by weight, bars of silver of the same standard, coinage bas been nearly all the time copious. The two being equally available in the same market, at the same fold object, therefore, desired to be secured by a seinior. estimate per ounce, will be equally disposed to leave us. age, seems to have been attained by our present system

It will also occur that the remarks apply specifically to under existing circumstances.

silver. This is for directness of illustration in part, but But it has just been seen that when Spanish dollars chiefly in order to retain the idea steadily in view that were at a premium of ļ to 5 per cent. for a particular the coin proposed to be acted on is the measure of value,


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according to which premium and price are regulated. silver, which is about } per cent below the average pro. Whenever this conception is neglected, all deductions duct of the Spanish and Spanish American dollars when from other premises are to be viewed with some distrust. deposited at ibe mint for coinage; so that the depositor

It seems, therefore, that no advantage is to be derived of $100 of those coins will receive in return about $100 50 from a seiniorage on our silver coins which constitute the in coins of the United States. measure of value. A coin which is intended to perform This gain is not fully equivalent to the delay of coina subordinate office in the currency, as the silver coinage age, which has generally, within recent years, been from of England, from which a seiniorage is exacted of 6 per forty to fifty days, and therefore individuals rarely bring cent., and which has no pretensions to be a measure of those dollars to the mint: the principal depositors of silver value, can be thus retained in the country. It is not lia. in this form are the banks, and chiefly the Bank of the ble to be exported, but imitations of it, of the same in- United States. trinsic value, are liable to be manufactured abroad, and The effect of this small difference between our dollar added to the circulation. Tbe accruing emolument is a and those foreign coins familiar to us by that name, which consideration rendering the occurrence probable, and it are the principal forms under wbich deposites of silver is understood that it has, to a large extent, taken place. can be relied on, has been the chief cause, as it is confiIf the seiniorage, therefore, be intended to sustain the dently believed, of that auspicious promise which the reexpense of the mint, it appears liable to defeat from this sult of the last few years and the aspects of the present quarter, and in a manner subject to much irregularity. To time afford of filling our circulation with an abundant make spurious imitations of the legal coin, exposes to the metallic currency from deposites spontaneously offered. danger of detection; but when the character of any coin. This proportion was the result perhaps of inadvertence, age is such that it offers an adequate profit on manufac- through ihe want of skilful assayers; it is, however, sinTuring the genuine coin, the control of the nation over gularly well fitted, under existing circumstances, to invite its currency is thus liahle to be interfered with, and, at all supplies of silver for coinage without the direct action of events,the intended profit to the public Treasury defeated. the Government.

On reveiwing the preceding remarks, it seems mani. During the period when our commerce with China ex. fest that whatever charge is made on coinage should be erted its peculiar influence in the case, the difference made by a direct deduction of the proper per centage between our dollar and that of Spain bad little effect to from the coins themselves, and that in relation to our sil- induce deposites of the latter at the mint; but that disver coins, which are the measure of value, whatever may turbing force appears to bave been subjected effectually be the charge to be deducted, and whatever proportion to the control of other influences and new equivalents of alloy shall be preferred, the quantity of fine silver so that the various forms of the Spanish dollar, wbich, ia should remain rigorously the same.

the preceding remarks, are regarded as one family, bare If this principle be assumed and maintained, that the rarely, within recent years, commanded a premium above quantity of fine silver in our silver coin shall remain un- that which is due to the occasional irregularities of our changed, a charge for coinage will bave no influence on

commerce with Europe. In two instances within the two the measure of value.

last years, deposites of Spanish dollars have been received We may experiment on our gold coins without fear and at the mint direct from Canton, exceeding in amount with some resulting convenience: though a legal tender, $20,000: these, indeed, are special occurrences, but the they bave never been a measure of value; and while kept indication coincides with other known facts and obvious from interfering with the measure in silver, there is no tendencies. danger: but it is a grave question to disturb the quantity This difference of about 1 per cent between our dol. of fine metal in the silver coin.

lar and that of Spain, as the honorable Mr. Wilde observed The propriety of some charge, when the mint shall be in his remarks on introducing his resolution, has had the in operation with a force competent to effect thc payment effect of a seiniorage to that extent, of which the Govof deposites, with a delay merely nominal, seems recom. ernment does not receive the benefit: certainly the direct mended by considerations of adequate weight, indepen- and immediate benefit accrues to the depositor. It was in dently of the question as respects the public treasury. fact establishing a measure of value not precisely that

If coinage were free from charge, and payment of the which Mr. Hamilton had in view, but it could, under the amount made without delay, artists would send their bul circumstances, bave had no effect as a new measure; it lion to the mint for coinage, merely to procure its division was for some years neither known nor suspected to be into convenient portions of known fineness and weight. so; it was not, as you have noticed, observed instantly at The merchant, also, while hesitating in regard to the ex. the mint. portation of his bullion, would find a convenience in send. The peculiar value of this constitution of our dollar aping it to the mint for the purpose of receiving it divested pears to rest on this very fact, that it is almost insensibly of all extraneous matter, and its weight and fineness veri- inferior to the Spanish dollar; so that those coins, for fied; after which he would export it as before intended ordinary purposes, may be employed indiscriminately: it It consists, therefore, with a judicious regulation of the is only when their relation happens to be tested as forms mint, that coinage should not be wholly free: a charge of bullion, to be exported, or applied in the arts, that tends to protect the mint from deposites not designed to the difference becomes appreciable. The national coins enter into the currency; the charge should, however, be then assume their rank as the controlling measure of the reasonable, or deposites will be repelled from the mint. others, determine their premium, and, when this advan

It is important also that bullion, in our national coins, ces to about i per cent., accompany them reluctantly should be valued a little higher than in foreign coins, abroad, diminishing at the same time their own tendency which constitute our principal deposite at the mint; if 10 withdraw from us, by arresting the advance of the not, the national coins will be exported as freely as the premium thereon, and prices of other substitutes, as the foreign, for the bullion they contain: the difference, how currency, in which resides the measure of value, is conever, should not be inequitable, or bullion of that char. tracied. At this point ordinarily the state of commercial acter will not be offered freely for coinage.

exchange begins to recede, the national coins remain un. In relation to the latter principle, our existing mint disturbed, the foreign gradually reappear through other regulations have effected all that seems necessary in that avenues, mingled to some extent in the circles of our regard, by the proportion which the fine metal in our currency, in company with our own coins, and thencecoins bears to that of the Spanish dollar.

forward come freely to the mint, and assume the national The dollar of our coinage contains 3711 grains of fine costume.

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One important characteristic of this nominal seiniorage, circulation. These estimates proceed on the assumption it appears, therefore, is, that it is too small to be obvious; that the supply of bullion may be sufficient for an average our dolar, therefore, may associate with other coins of coinage of $6,000,000 annually for the next ten years. the same denomination in ordinary pursuits. Another The supply will not probably average this sum. Esti. characteristic of it is, the one before alluded to, that it mating the above amount, including wastage, at one per accrues to the depositor, and therefore does not repel cent, viz., $60,000, the one-half per cent. charge at him from the mint. On full reflection, it appears to me $30,000, and the supposed gain on copper at $10,000, manifest that this last condition is essential, and that, if would reduce the effective disbursement to $20,000. any further diminution of the coin should be adopted, After ten years, when it may be supposed that the curwith a hope of thereby increasing the permanent mass of rency will be satisfactorily supplied with coin, other regmetallic currency, in like manner it should accrue to the ulations adequate to sustain it might be devised in regard depositor; if otherwise, bullion will not come spontane-to the charge for coinage, if deemed judicious. ously to the mint.

One remark on another topic—the expediency of maOn the whole subject, it would seem that, having our king gold a tender in large payments, and silver a legal unit of money and standard of value constituted with so tender in small payments only, or the reverse. The first much felicity of effect as to offer, under existing circum. branch of this proposition, it is presumed, is merely a stances, a direct, sensible, and, as it appears, efficient in- transient though-an inquiry, not a recommendation. ducement to bring to the mint that form of silver bullion The conception would be fearful, if it were entertained. which is most abundant and accessible, and to exert, also, Our metallic currency is silver, exceeding, it is believed, a gentle but constant and controlling restraint on the ex. $20,000,000 in our own coins, and, in all, probably port of the national coins, it must be wise to leave this $30,000,000. We have not now half a million in gold to feature of our system undisturbed.

form the basis of a currency in which countless millions Our dollar remaining undis'urbed in its weight of fine in property and engagements are involved. The imme. silver, and a small charge being made at the mint for diate export of our silver, in exchange for gold at a high prompt payment, will, I apprehend, do all that would be premium, would be inevitable. The reverse proposed expedient now in regard in our silver coins. The charge would derange nothing, but it does not appear that it is light, and will be felt by individual depositors as being could be in any way preferable to the present system of for a consideration altogether favorable. It will not in our currency. Gold is not well fities for small payments. any sensible degree, it is presumed, cause deposites to be Even under the provision suggested, silver would prob. withbeld, though the banks, our chief depositors, would ably be employed in preference. find an interest in bearing the delay, rather than paying The occasion seems opportune to express, very respectthe discount for coinage.

fully, again, my perfect conviction that it is of the most There is, however, one point meriting consideration in grave public concern that we abide by our silver coinage regard to the foreign silver coins, in aid of the design of its present intrinsic value as a tender in all paymenis, of securing a copious metallic currency in coins of the and ruling measure of value. Steadfast to this principle, United States. It is, that the former be not made a legal gold may continue a general legal tender also, with pertender at a rate which would forbid their coming to the fect safety, and with probable convenience, ils ratio to mint without loss. This has been adverted to before. silver being so regulated as not to displace the latter.

The act of Congress of April 2, 1792, establishing the When iis market demand is above the ratio it will bear a mint, contemplated a charge, for prompt payment, of premium, and all parties interested will be secure of its per cent., leaving it, however, optional with the depositor equitable value. The letter of Mr. Gallatin, given in to decline. The banks having generally been the sources Mr. Ingham's report, is highly instructive in regard to from which bullion was received, ibis provision has rarely the effects of such an adjustment in France. been carried into effect; and, in no instance, within re. That the divisions of our silver coin, less than the hall cent years. The provision of the fourteenth section of coliar, should be a tender to a limited amount only, would the above act, which relates to this subject, would there be liable, it is conceived, to no exception, but might be fure require to be made positive.

regarded as improving our monetary system. This ques. The same allowance for prompt payment, it is pre- tion, however, with some others, belongs to the revision sumed, would be applied to both gold and silver. It of the general regulations of the mint, which have been would be advisable ibat this new regulation should not alloded to before. take effect until sixty days from the passage of the act, In regard 10 the expediency of a coinage of gold which as large deposites now occupy our vaults. The sum of siiall be a legal tender only to the Government, and at $150,000 to $200,000, made available in the Bank of the rates fixed from time to time, it is not apparent that any United States for the purposes intended, would be suffi- special efficacy can be derived to this system by making cient even at first, and subsequently, perhaps, a less sum. the proposed coins different in weight or fineness from A quantity of gold must, in the first instance, be procured our present ordinary issues. The peculiarity relied on is, on public account; but this, if the change of ra'io takes that the value at which these are received by the Gov. place, will be accomplished at a trivial premium, or at ernment shall be publicly announced for the assurance

of the otherwise uninformed, in regard to the rate at Prompt payment out of the dormant funds of the Gov- which they may safely receive the gold pieces. The obernment would be insensible to the public treasury. The ject is to promote the diffusion of gold through the cir. deductions would, however, bear a very considerable pro- culation; and it is probable that no gold pieces could be portion of the expense of the mint, and, together with devised, more acceptable by their convenience, than the the gain on the copper coinage, would, it is believed, several denominations now familiar toʻus. limit the effective annual disbursement for the mint to a Information is given, weekly, through the public prints, sum not exceeding $20,000; so that, if the appropriation of the rates paid for gold in our commercial cities, with were $30,000, the sum of $10,000, refunded out of the out the effect contemplated by this proposition; and it is copper cinage on an average, would reduce the effective derived 'rom the same authority on which the Govern. expense to the sum above mentioned. Any charge for ment would determine its periodical rates, viz., the dealcoinage, which could be devised to devolve further the ers in coins, bullon, and exchange. The official confirmexpense of the mint on the depositor, would have the aion of these rates, at given periods, is all of superior effect to lessen the supply of bullion, and thus deleat the efficacy, which the new regulation appears to contain. object, now so much desired, of expanding the metallic It is not, however, my object to inquire into the extent



234 Cong. 1st Sess ]

Public Deposites. of its probable success, but to recommend a mode of otherwise order and direct; in which case, the Secretary effecting the experiment, without disturbing the ordinary of the Treasury shall immediately lay hesore Congress, si arrangements of the mini,

in session, and if not, immediately after the commence. It is suggesteil, therefore, that the gold coinage remain ment of the next session, the reasons of such order or as a present, or be modified by the change contemplated direction." by the committee. By a distinct regulation, to be adopted By the twentieth section of the game act it is provideł when the occasion shall arise, the proper officer may be that, in cons deration of the exclusive privileges and ben. authorized to declare, periodically, the rate at which the efits conterred by the act, the bank should pay to the coins designated are received in payments due to the United States one mill on five hundred thousand dollars. Government. The experiment can ihus be made without This sum bas been paid in the instalments required, and defeating any other object, and may be suspended if it the Government of ihe United States has reccived and prove ineffectual. It may be that the readjustment of enjoyed its full benefit. The relative value will render a resort to this expedient The committee have expressed the opinion, on a forunnecessary, or other considerations may occur to induce mer occasion, that the custody or keeping of the public a cistrust of its success.

moneys was one of the benefiis in consideralion of which A few enactmenis, embraced within the scope of the the bank paid the million and a half of dollars; and, also, original resolution on which the committee was raised, to undertook to render facilities of exchange to the Treas. be followed by a systematic code of regulations, which ury. The correctness of this opinion, they suppose, can. might be submitted early next session, would, it is be. not be reasonably doubted. lieverl, be the most beneficial procedure now. The en: On the 1st of October last, ihe deposites of the public actments in view relate to the following subjects: The moneys were removed from the Bank of ihe United States, relative ratio of gold and silver; prompt payment of de and the reasons for this removal were reported 1o Cor. posites at a charge of one-half per cent; and the legal gress by the Secretary of the Treasury at the commerceiender of certain foreign coins regulated, and the limit ment of the present session. Those reasons have beto alion thereof, in regard to all foreign coins, defined. considered by the Senate, and, afier a discussion of al.

The above provisions would be somewhat experimental, most unprecedented lengih, the Senate bas decided, by a and might bear very instructively on the legislation con. clear and unequivocal majority, that they are unsatisfac. templated hereafter, when the effects may bave been so tory and insufficient. It has reaffirmed ibis opinion, on far developed as to afford a safe guide in establishing a a second occasion, by a majority of twenty-nii.e rotes to permanent system for the mint.

sixteen; and it has passed a joint resolution directing the I have thus, conformably to your request, communica. deposites to be made in the Bank of the United Statts ted freely the suggestions which occur to me on the subo and its branches, as beretofore, by a majority of twenty. jects referred to the committee, having specially in view eight votes to sixteen. thieir relation to the mint. You will please accept them Ilir be true that the deposi'es have been removed will.. as intended to promote the interests confided to this in- out sufficient reason, it certainly is true that injustice has stitution.

been done to the bank in a matter of privale right and With great respect, your obedient servant, private properly; and any bill which, like the present,

SAM. MOORE. disregarding the chartered rights of the bank, proposes 3 Hon. C. P. WHITE, House of Reps.

new custody for ihe public treasures, appears to the con. mittee in the light of a sanction to injustice and illegali y..

The bank purchased the privil ge of the public deposites IN SENATE, June 27, 1834.

for the whole term of its charter, and paid for the Mr. WEBSTER made the following report:

lege a valuable corsideration, both in money and stipulaThe Committee on Finance, to whom was referred, on tion for services. This right has not been surrendered, the 25th instant, the bill from the House of Representa- it has not been declared forfeited; and the charter of the tives entitled "A bill regulating the deposite of the bank has not yet expired. Until the charter shall expira', money of the United States in ceriain local banks," have or until the right be surrendered or forfeited, the bank, had the same under consideration, and are of opinion in the opinion of the committee, is entitled to the enjoy. that, in iis present form, the bill ought not to pass. ment of the benefits secured to it by plain and soleme

Its leading provisions are, that the Secretary of the provisions in the law which gave it existence. Treasury shall employ State banks as depositories of the moval of the deposites, therefore, was a wrong done to money of the United States, and that the banks at pres- the bank; the withholding them is a continuance of that ent employed shall continue to be depositories of the pub. wrong; and any confirmation either of the removal, or 11€ lic money until new selections shall be made under the further withholding, is, as it seems to the committee, a provisions of this bill. It is proposed that the bill, should sar.ction of that wrong. This objection to the proposed it become a law, shall go into immediate operation, nor bill appears to the committee to be insurmountable. is there any limit to iis duration.

But there is another consideration of still bigber jor. It cannot fail to be seen that the passage of this bill, if portance to the country, if any thing can be of higher not a legislative adoption of the act of removing the pub. importance than the preservation of ihe plighted fajibu lic moneys from the Bank of the United States by the the nation. To the judgment of the Senate, dangerous Executive, and the disposi'ion made of them by him in liberties have been taken with the constitution and the State banks, would be at least an acquiescence in that laws. On the 28th day of March, the Senate formally state of things which these proceedings of the Executive and solemnly res.lved that, "in the late executive pr.. have produced.

ceedings in relation to the public revenue, the President The committee are not prepared to recommend the bad assumed a power not conferred by the constitutioa adoption of any such measure to the Senale.

and laws, but in derogation of bo:h." These proceed. By the sixteenth section of the “ Act to incorporate ings were the removal of the deposites, and the placing the subscribers to the Bank of the United States," it is of the public moneys in those State banks where they sulemnly enacted and declared, in express terms, “that now are, and where this bill proposes to continue and lethe deposites of the money of the United States, in places galize their custody. in which the said bank and branches thereof may be es- It is not to be concealed that a great question of con tablished, shall be made in said bank or branches thereof, s'itulional power has arisen between the President and unless the Secretary of the Treasury shall at any time the Senate. Thal question has deeply agitated, and con

The te

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