Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-04-29
Twenty-third Congress.--Ist Scss
SPEECH OF MIR. WHITE OF TENN.

SPEECH OF MR.. WHITE OF TENN,
On me motion Of Mr.. Webster TOR ieove to bring in a
Biu for proionging the charter Of the Bank nj the
United States; deiirered in The Senate Of the United
States, March. 1884.
tCoNcLUpED
a depreciation IN the value OF the notes OF these Banks
was the necessary consequence OF suspending specie pay
ments, anu the same political party, which declared the
war, still constituted the majority, and endeavorcd TO de-
wise some plan to restore a sound currency 10 the country.
The plan devised was the insirumentshty Of this Bank
The object was not gain 10 the stockholders, but the high
purpose oil reg uiafing the currency. through the power OF
this agent. The Government had live directors, and the
stockholders twenty, and al the head of the directory, was
placed q man Of high respectabihty--one Of So much cha
racter. that il 1 mistake not. at one period during The war,
he acted as the head Of three Of the Executive Depart.
ments at the same time.
The Bank commenced its operations, and instead Of aim
ing, by a prudent, steady, and wise policy, TO attain the
ooJec, Tor which IT was created. il united with the State
bdnks, IN extending accommodations TO individuals, and in
increasing the issues of Bank paper TO a mos, unreasona-
Die extent. Specie payments were resumed, ii is true
Branches oil this Bank were established m several OF the
States: those established in the West, with which I had
the only acquaintance, were not furnished with one dol.
lar OF actual capital. The cashier was sent TO establish a
branch, furnished with drafts for the public. money Us depo.
stej in the State Banks. anil will, a power to collect the
floating capital i'm the country, by drawing upon the Ranks
in the Eastern cities. Ia place, then, oi aiding Safe
Banks to continue specie payments, when resumed, this
very Bank withdrew the means of enabling thea TO do so.
In place OF inducing them 10 curiaiI, by prudent means,
Their issues, already too great, they were encouraged to
increase their circulation still more. The Immense
amount OF money in circulation gave an artificial value
TO every thing. Overirading was carried TO such an ex-
tent, that all idea of the true standing and credit of men,
in society, was lost sight Of Cities were improved, and
villages sprung up, as il by enchantment: each little town
was furnished with more merchants than were St ificient
to have done the business OF the whole country in which,
il was situated. This artificial state OF things could not
last. As soon as there was a demand for specie, the
counter current commenced. The United States Bank
began a rapid curtaiimeni, 10 save itself from open bank.
ruptcy; it broke up State Banks aud inc. vidusl cusio.
mers. The State Banks broke up their customers :;
many Of them were forced TO suspend again specie pay
ments, and a deprecated currency was imposed upon The
community. Some OF the State Banks never afterwards
a g ntnn "a Snarip N and "A gnnpl ran 80 xyaG pnt
again restored 10 the country till from 1924 TO 1926
When, in 1917 and 1878 there appeared nothing but
wealth, prosperity, and comfort, in 1919, 1920, aud for
some time after, there was one scene OF pressure, distress,
bankruptcy and ruin. And all this grew out OF the incor
poration OF this Bank, and transferring to il the power OF
regulating the currency. The country was flooded with
a paper currency " henit suited The Bank TO make property
Highland the whole circulating medium was Withdrawn,
when it was the interest of the Bank 10 reduce property
in value. What assurance can we have that the operations
oil this Bank will not, again, be directed 10 individual gain,
should the charter be prolonged?
This Bank was vested with its extensive powers for high
governmental purposes. 1t is admitted that the State
Banks, generally, are completely in its power, and under
its control. All these immense powers have been, in some
instances, used Tor the purpose oil individual gain, at the
expense Of the community. Society at large is unsafe
while il is in the power OF a BoSrd of Directors of this
Bank TO fix what value they please upon property, by
making the common standard OF value, the circulating
medium, plenty or source.
Mr.. President, the conduct of This Bank well justified
the Secretary OF the Treasury in using The power given
him by the 10th section OF the act OF Incorporation, il he
thought il sound policy to Withdraw the public deposiie.
i Will not weary Tie senate by travelling over the
whole of the reasons he has assigned for the removal,
but advert briefly 10 some, which, 10 my niad, would
be satisfactory.
The Bank, as the fiscal agent, violated the trust reposed
IN II, by not paying the three per cent. stock, as dire cied.
A summary Of the leading facts shew This case The
administration determined to pay a portion OF this stock, at
a given time; the Bank was furnished with the necessary
funds, and instructed TO make the payment. Instead OF
complying with these instructions, il negotiated with the
owners Of the stock, to induce Them not 10 apply for
payment at The time specified, but TO delay the application
Tor some eight or twelve months, and promised hat il,
the Bank, would pay the accruing interest. Contend this
was a violation oil duty, for which the agent should have
been dismissed. An individual owes another a sum of
money bearing interest; he determines to pay the debt,
and lit the bond: lie furnishes his agent with the neces-
sary funds, and instTucIs him 10 make the payment at a
given period. The agent disobeys his Instructions, and
promises the creditor that if he will hold the bond twelve
months longer, he VII pay The Interest. What ought the
principal to do in SUCH case! i say, dismiss he agent.
And it should have been done in This case, with the less
hesitation, because here he agent sought its own interest,
at the time the instructions were violated. The uses TO
which the Bank applied HE money, yielded a profit Of six
per cent. And the stock bore an interest OF only three;
50 that Che Bank would pocket the difference.
Agoin.-As ! have already stated, this Baak was es-
tablished Tor the high purposes Of restoring a sOtnd cur.
rency TO iho.commnnhy. and keeping it sosn6. The Sc
cretary tells us III his Report, that it commenced rapid
curtaiIments in the Don'h OF August, and continued them
up 10 the first Of October; that these cuItJilmenfs compeI.
led the State Banks to cartsil likewise : HAT The depo-iies
Of public moneys enabled II 10 accumulate large balances
against the State Banks, and for those balances il was
drawing the specie tbat a continuance Of This system a
short time longer, would have compelled The State Banks
w udN SurpthutN Spt'N pdl heuc bhu FiSitcu iHe
ing part Of the community with bankruptcy and ruin
This state OF facts, the ttuih OF which : see 40 reason TO
doubt, furnished Two satisfactory causes for changing the
deposites.
LIST. One object Of vesting this corporation with these
extfsvagsDt powers, in fFast, was about 10 be violated
These powers were eSerted IN such a manner, as TO COM
pei a suspension Of specie payments, which would inevi.
tably have led Ia a deprecated currency. This was a
breach IF The trust, and The Secretary had a rightte ward
oil the mischief, by withdrawing the public funds, which
were the Instruments employed by the Bduk. for the ac-
complislment Of It's purpose. Upon principle, it see ms TO
me the Secretary had a wight 10 eSercfe his power to
maintain a sound currency, aud II has been abundantly
shown, that Mr.. Crawford, when Secretary, often exertet
The like power to accomplish the same object. But IL has
been argued, that Mr.. Crawford did not claim this power
by virtue Of this 18th section, but by virtue OF the DIN
resolution, adopted during the same session. 70 this ar
gument by our opponents, | submit two answers. Ist. 4
is a mistake 10 suppose hat Mr.. Crawford did not claim
this power in virtue OF he 18th section. Some Of hi.
letters referred to toy otbeg gentlemen, shsw expressly
al think. ina, This power was claimed and exercised il
virtue OF this veSy section. 2nd. II / am mistaken it
this, and the power was exercised In virtue Of The resolu
ton, the same power is situ continued TO The present Sc.
efetary. The resolution IS not Temporary, bur permanent
IL is unlimited as 10 time. IL authorizes the Secretar,
TO adopt such measures as he may jSige necessary Ia
procure = sound cuffepy y, " what use would II be 4
enable Banks 20 resume specie payments, and afford
The same means, therefore, which cOald lawfully be Elm.
ployed to procure a sound currency, mey lawfully be uset
10 continue such a currency. II, then, Mr.. CFaw fore
could righliully transfer The pabIic f0oneJs TO State Banks
TO enable them 10 establish a sound currency, so could Mr.
fancy to enable them TO Dtainf0in u.
AgaiD-uL am mistaken w Ills, from The same facts
another reason i furnished, which justiGes the removal
IT is admitted, by those who put the most limited con
etruclion upon Tie powers Of The Secretary, that he mal
and ought 10 remove the public moneys whenever Tie