Indiana Palladium, Volume 8, Number 19, Lawrenceburg, Dearborn County, 26 May 1832 — Page 2

demotion of the three per cent?, from 1st

of July to 1st of October and 1ms assumed

j these stocks, being substantially equivalent

to borrowing seven millions of the Governments money for three months. The supplying of exchange by the bank, as. has been done for the last five months, and the curtailing of discounts, are but mere palliatives, as the committee fully believe ; and they are pursuaded that no measure can bo invented to restore a sound currency, and a regular state of things generally," and give a solid and permanent value to property, but the withdrawal of a large portion of notes now in circulation by the bank, w hich compel other banks to do the same. The committee will here introduce a quota' ion from Air. Rush, in his Treasury Rciort, in 188; which fully accords with

their sentiments. llIt is the preservation of

a good currency which can alone impart stability to property, and prevent those fluctuations in its value, hurtful alike to individual and national wealth' Again, he says, 'This advantage the bank has secured to the community, by confining within prudent limits its issues of paper, whereby a restraint has been imposed upon excessive importations:, which are thus kept more within the true wants and capacities or the country.' According to the triennial report of

community, of the effect upon the circul.i- J is precisely in the same situation; it has ti rr in.imn. which lwranio denreciatpd. I :iL-od thi; trovernmont to postpone the ro-

drivmg the precious metal3 from the country; and, until the reaction hid operated to check then, led to extravagant speculations, which ended in ruin; and relief was not obtained until the circulation of the Dank of the United States had been reduced

to about 4,000,000 of dollar?. Before this WJ3 accomplished, tho expedient was resorted to, of curtailing loans; and while they were doing that, they continued the issue of bank notes, thereby continuing the cviJ which they were striving to avert. What U tiie state of the bank now? On .the 1st of March, (sec monthly statement milked No. 05,) the bank had $0,800,000 specie, $-J,8 10,000 notes of other banks, nnd of funded debt none!', making an aggregate of $'.yi 10,000, to rmet its circulation of .923,717.090, deposites $17,050,000, and foreign debts owing & 1,8 70,000, miking an Aggregate of-tti,01.tf,000; and this evil exisis while a reaction or contraction is operating to a considerable extent. This contraction commenced on the 7th of October last, and is evidenced by the following circular, which indicates, beyond all doubt, that the bank had overtraded. CIRCULAR. Jhink United States, Oct. 7, 1 831 . Sir: The unusually heavy reimburse

ments of rii:i millions of funded debt- which

was on the l3t inst. advertised by the Gov

eminent to take place on the 1st and 2d

days of January next, but which, according

to a subsequent notice from the treasury l)e

partment, under yesterday's date, may, it

appears, be demanded of the bank, by the the public creditor?, at any period of the present quarter, is calculated to press

very inconveniently upon the parent bank

and upon the office at new lork; the more so, from our uncertainty as to the time when the necessary provision must be made, and

from the prevailing active demand for mon

ey. Be pleased, therefore, solo shape your

business, immediately, as that without deny

ing reasonable accomodation to your own

customers, or sacraficingthe interest of your oflice, you may throw as early aa possible, a lanre amount of available means into our

h:ind3 in Philadelphia and New York, and

at. the same time abstain, as far as practi

cable, from drawing upon either of those points,- checks and short drafts, on the local

banks, and on individuals, will prove parti

cularly acceptable for several months to

come, and whenever direct claims of that

kind, on those two places are not to be procured, you might materially aid us, by

taking grafts upon the large cities nearest to

them. 1 am, respectfully, your ob't s.?rvt, W. M'cILVAINE, Cashier. Addressed to the Cashiers of all the offices. Since the 1st of September last the bank lias diminished its means to meet the demands which may come upon it First. The whole of the funded debt which it then held, $3,497,681 00. Second. The difference between the specie it then held, ($11,515,116 51,) and the amount it possessed on the 1st April, $5,799,753 63. Making an aggregate diminution of its means to meet its momentary demands, sine,- the 1st of September, of $8,243,043 94, whilst during the same period, those demands have increased $1,197-871 51.

viz: the circulation, deposites, and foreign debt, tho aggregate of which was, on the 1st September $38,452,758 67, and on the 1st April $42,650,630 18. The measures and the effect appear to be similar to those preceding 1819. The extensive discounting of bills and drafts, payable at distant

branches, the amount being on the first of

April, per monthly statement, $20,354,718 79. The orders for curtailing at the western branches, and the curtailing at the principal ollices in the Atlantic cities, and at the Bank of the United States, the amount of which, at the Bank of the United States between the 5th day of January1 and the 29th day of March, is $1,810,408 37; at the office of New York, between the 4th day of January and the 28th day of March, is "$259,305 43; at the office "of Boston, between tlie 5th day of January and the 29th day of March, is $167,860 85; (and that too, on a discount line of less than two and a half millions of dollars;) at the office of Baltimore, between the 16th of January and the 2d day of April, $123,741 03, and on a discount line of little more than two millions of dollars, as will be seen by the weekly statement of those offices and the Bank of the United States, marked No. 36. The most remarkable feature wh'ch presents itself to the view of the committee, connected with the present situation of the lank,and the course of operations upon it, since thelstofScptemberlast.isthe increase in the circulation of its notes which amounted on the 1st September to $22,399,447 52, and on ths 1st April to $23,717,441 11, making the increase of $1,317,993 62. During this period the bank undertook to check tho exportation of specie by supplying bilk at such a rate as left no inducement for individuals to ship it;- to do which they exhausted all the funds which they could procure from every source. Over $5,000,000 were remitted, as per statement marked No. 16, and still left them with a debt of mere than $1,700,000 in Europe at this period. The cause which led to this necessity still yet exists, with an increase to the extent of the increase of circulation, and but for a decline in the price of ppecie in Europe, it would still continue to be exported. The committee would present another striking analogy between the fituation of the bank in April, 1819, and its present condition. At the first mentioned, period, Mr. Cheves informed the Secretary of the Treasury that the bank would not pay the Louisiana debt of three millions, wilhout negotiating a loan, in Europe, and two millions were actually borrowed in Europe, the indulgence of the Government being obtained to that effect. The bank at this time

presumed that the Bank of tlu? United States tor loaning it out, d

th.--

A ' i rs,

in

is too watchful and vigilant in the protec-

tion ot its own interests, not to see that it

obtains from the State Banks, for the notes

the payment of one quarter's interest on J thus taken, specie or its equivalent, or its

tho directors to the stockholders of the 1st

of August, 1828, the amount of circulation then was $13,044,76071 ; and on the first of April last, as before stated, it was $23,717,441 14; presenting the astonishing difference of $10,671,780 43, in less than four years. Can this be considered, according to the sound doctrine of Mr. Rush, confining its issues of paper within prudent limits, whereby a restraint has been imposed upon excessive importations? That great contractions are injurous, the committee consider they have adduced an authority that cannot well be doubted, and that a great one is now in operation there are too many general evidences in confirmation of the fact to be refuted. A particular one will suffice, which is taken from the documents called for by the Senate, and presented'to that body by the Secretary of the Treasury, on the 12th of March list; in which will be

found a communication from the president

of the bank, stating that the amount of

branch notes redeemed by the Bank of the United States at Philadelphia, during tho month of February last, only to be $726,000; and tho amount redeemed, in 1831, during tho same month, was only $368,910. In a letter under date of 26th of March last to the chairman of the Committee, the president of the bank says, "that the amount of branch notes redeemed at the New York

office, during the year 1831, was $13,219, 035, and at" Philadelphia $5,398,800, ma

king a total of 18,618,435, with an increase

of circulation between the 2d of February,

1831, and the 2d of January, 1832, of more

than six millions of dollars, as per monthly

statements, and decrease of its means, be

tween the 2d of February, 1831, and 1st of April, 1832, to meet immediate demands, of more than twelve millions of dollars, viz:

In specie, funded debt, and notes of oth

er bank?, which, at first named date, amoun

ted, as per montly state

ments, to And the last to

$21,756,668 10 9,640,000 00

$12,116,668 10 Making, as just stated,- a diminution in the active means immediately applied to the extinguishment of its debts, of considerably more than half of it3 former capacity, to effect the same object. With such an increase of issues, and the influence of a most powerful reaction now operating upon the fiscal energies of tho country, as is exhibited by the difference of the redemption of branch notes at the periods and place? above mentioned,- together with such a reduction of its means, to meet its engagements, must, we fear, compel them still further to curtail their accommodations.

It is evident, from the circulars addressed to the branches, and correspondence with them since October last, that the chief object of the bank has been to sustain itself the statements accompaning this report.

clearly proving tlwitthc bank has not increased its facilities to the trading community, in any part of the Union. The bank of the United States, among other conditions of its charter, is bound to make collections of the public revenue, to transfer the same, or any part thereof, from one point to another, that maybe required; and to make any and all payments for the account of the government, whether for principal, interest, civil list,army, navy, pensions, or for any other purpose whatever, free of all and any charges for such services. For performing this duty, the bank has claimed, and ha3 received from tho treasury department, and the country generally, for some years past, merit to an extent that could not have been surpassed, even if all those services it performs were gratuitous. This and other circumstances have led the committee to an investigation of the subject, as far as the limited time would allow, before closing their labors, to see how far the bank is entitled to the credit bestowed upon it, and to what extent the bank has aided the the government in the fiscal operations be

yond the obligation imposed in obedience to its charter. The Government,, in its collections through the bank of the United States, receives nothing but specie, or notes of the Bank of the United States, and makes its payments in nothing else. If the notes of State Banks are received by the bank in place of its own, it is a private matter between such Banks and the Bank of the United States, and one vith which the government does not concern itself; and it is to be

own notes, in exchange and thereby be provi-

tied with a hind from the collection of the revenue equal, in value, to that in which they are required to pay. The largest portion of the revenue, particularly from imports, r.s is universally known, is collected in tho Atlantic cities, north of the Potomac. Those cities being the great marts of supply to nearly tho whole of the United States, and places to which remittances centre from almost every part of the country, creates a demand for funds upon them, from nearly every quarter, constantly, and generally at a premium. Therefore, so far as the bank is called upon to transfer funds from 'those cities to other places it becomes a matter of profit, and not of expense to it, and the greater the distance the greater the premium; v.id the larger the amount thus required to be transferred by the government, and the greater the distance, the greater the profit and advantage to tho bank; That the bank has aided the government thus far, the committee are unable to discover, or that they are under any obligations to the bank for those services, they are at a loss to imagine. How far the bank has aided the government in its fiscal operations, as it claims to have done, will be seen by a communication from the president of the bank to this committee, hereafter adverted to in another part of this report; and also in a report of the committee of the stockhold

ers, at the triennial meeting on the 1st of

September, 1831, in the following words: "That the bank, through the whole course of its operations, has effectually assisted the treasury in the collection and distribution of the public revenue, and thatof late years, it has been signally efficient in preventing the discharge of the public debt from disturbing the operations of commerce, or the valuo of pecuniary investments.' Now the committee are not able to discover upon what principles the foregoing declaration is made. By referring to the correspondence, in 1819, between the then president of the bank and the then Secretary of the Treasury, the committee discover that the bank was then applying to the Treasury Department to aid it in its operations, and

was receiving all that it could promise. On the 20th March, 1819, the President of the bank closes a communication to the then Secretary, Mr. Crawford, thus : "I have ventured to trouble you with those views with the hope that you will pardon the ,

liberty, and with the conviction that it you can serve this institution in any of them which you shall deem consistent with the public good, you will feel a pleasure in doing so. The Secretary of the Treasury, in closing his answer, under date of the 27th March, 1819, says, "every facility which it is in the power of this department to allbrd the bank, in its efforts to support specie payments, and restore the currency to a natural state, may be confidently relied upon. By a reference to a statement of tho pub

lic deposites in the Bank of the United

States each month, from March, 1818, to

3 larch 1832, inclusive, marked No. 37, it will be seen that from the 1st of January, 1823, up the month of March, 1832, there has been only one period, (November, 1825,) when the public deposites did not exceed four millions of dollars, in the hands of the bank, and they frequently amounted to eight, nine, ten, and eleven; and on one occasion to twelve millions of dollars. By reference to document maked No. 38, it will be found that since the month of March, 1824, at all tho different periods immediately following tlie redemption by the Government of portions of its funded debt, there is no one time when the bank was not left w ith more than one million and a half of dollars of public deposites; and in many instances with four and five millions, which sums were, immediately after, increasing by the constant accumulated collection of the public revenue. j The bank, as it collects the revenue, j knows, or ought to know, that it will be call- J

ed upon by tho Government to reimburse it,

and in all cases of redemption of the funded debt, three months notice is given by the Treasury of such intention. With such notice, and with proper management on the part of tho bank, the committee cannot see that either tho Government requires any aid, or that the community can be affected by the course of the operation. The bank has its legitimate banking capital with which to do its regular business, and

accommodate the community. As it collects the public revenue it is enabled both to avail itself of the advantage of employing it to its own benefit, and the accommodation of the commercial community, who principally contribute to its payment, by commencing the discounting of business paper, payable within or about the time they know they will be called upon to make the payments on account of the Government; and, as they gradually approach that period, they must also shorten the period which the

when they would be called upon to reimburse it, the committee can readily perceive that, when that order arrived, they would be found not only deficient in preparation, but in a state of surprise, and that the payments would first embarrass the bank, and then lead it to press and embarrass the commercial community. From the observations made, and the examination of documents during the course of this investigation, the committee have strong reason to apprehend that the course pursued by the bank has been upon this latter principle. If so, the bank has incurred a high responsibility.

'itkti 3 Trcr.su-

bill authorizing

ry to permit a whiif to be built near the site of the light-house at Station! Point, Connecticut, which was read twice and ordered to be engrossed for a third rending. Mr. lh:x( iu:i:, ficm the Committee en Claims, reported a bill for the relief of the legal representatives of John P. Cox. Mr. E. Everett, f;om tho minority of tlie Select Committee, to whom was referred tiie bill for the Appoit'oiunent of Representatives, ?nd tho Senate's amendment thereto, made a counter report, accompanied by an amendment to that proposed by the Senate, which was committed and ordered to be printed. Mr. Ashley offered a resolution directing the Committee on Indian Ailairs, to enquire in'o the expf diency of making an appropriation to treat with the several tribes of Indians residing within the limits of the States of Missouri and Illinois, with a view to the extini-uis':mci:t of their title to hml

. ;.ud removal from the limits of said States, ! which was asjrd to. The resolution here

tofore offered by Mr. WIlde on tlie subject of coins, was taken up and agreed to. The resolution heretofore proposed by Mr. De ayton, directing the Secretary of War to revise the sneral laws in relation to the army of the United States, make a digest ot the same, and lay it before Congress at its next session, was also agreed to. Tho resolution presented on a former day by Mr. II. Everett, after being modified so ns to call on the Post Master General. for certain information in relation to contracts fur furnishing post oflice stationary, was briefly debated by Messrs. Everett, R. at, Johnsox, &, Sj'KittiiT, when Mr. Whittlesey, i Ohio, moved an amendment for the tm ointment of a Select Committee tocr.qunv into the affiirs of the Post Office Department generally, with power to send for persons and papers, which amendment was debated by Messrs. Whittlesey, Crawford, and R. 31. Johnson. Before the latter had concluded his remarks, the hour allotted to morning business exp red. May 9. In the Senate, yesterday, the resolution offered by 3Ir. Foot, requesting the President to communicate to Congress, at tho next session, a plan for the reorganization of the Treasury Department, with a view to a reduction in tlie number of officers employed, was considered and agreed to. 3Ir. Dickkrsox moved that the bill to appropriate, for a limited time, the proceeds of the sale of tlie public lands amon the

several States, be now taken up, but he with-

Congrcssional Analysis. From the Globe. May 7. The Senate did not sit on Saturday. h the. IIav.sc of Representatives, on motion of 3lr. Carr, the bill from the Sr:?-fe. authorizing the Secretary of the Treasury to settle the accounts between the United States and tlie Farmers' and Mechanics Bank of Indiana, was referred to the Committee on the Judiciary. COLLECTOR OF WISCASSET. After some preliminary discussion between Mr. Ievin and Mr. Slaoe, who was entitled to the floor on this subject, upon a motion of Mr. S. to postpone the further discussion till Tuesday, which was eventually withdrawn. Mr. S. commenced his speech against the report of the Judiciary Committee, which he continued until the expiration of the hour allotted to morning busincss. Infernal Improvements for 1S32. Mr. Sutherland moved to suspend the rule appropriating the day to private bills, for the purpose of taking up the bill making appropriations for certain Internal Improvements for 1832, which had been heretofore reported from the Committee of the Whole on the state of the Unionwhich was earned. Several of the amendments, mado in Committee, having been concurred in, the clause appropriating $5,8(50 for the purpose of paying for certain repairs made to the Cumberland Road, by L. W. Stockton", w as taken up; and, after a short discussion in which Messrs. Crawford, Sutherland, AIercer, Archer, Stewart, and Coulter, took partj was carried. The appropriation for Ocracock inlet, was discussed by Messrs. Hall, and Speight, and was carried, ayes 110. noes 45. An amendment was moved

by Mr. Hall, for the improvement of the drow jt ",Pn suggestion that the Senate

harbor of Washington, North Carolina, which

was lost. The clause appropriating fifty thousand dollars for tho improvement of

31isjiss?ppi

the navigation of the Ohio and

rivers, as amended in Committee, was taken up. 3Ir. Sevier moved to amend it by adding .$15,000 for the improvement of the navigation of the Arkansas fiver, which was adopted. Mr. Ashley moved to amend the clause by extending its provisions up the Missouri and Mississippi

rivers above their confluence,- which was

carried. Mr. Denny moved to increase

and extend the appropriation up tho AIo

nongahela river to Brownsville, which, after

a discussion between 3Icssrs. Denny, Stew ¬

art and Bell, was lost. 3Ir. White, of

Louisiana,-then moved an amendment ex

tending the provisions of the act of 1S21,

lor the improvement of the Ohio and Mis-

sissippi rivers, to tiie mouth ot the latter,

with a view to remedy the bar, which he

advocated at some length, and which was

adopted. The amendment A3 amended,

was then carried, ayes 08, noes 57. Several amendments proposed in Committee for the construction of roads were concurred in. Mr. Sevier moved an amendment ap

propriating $20,000 for the construction of opposition to the amendment. Air. Clay

ton tnen took the floor and aficr

was not full. The bill providing the mean

of recording patents for the public lands, was read a. second time, and, after some discussion, it was laid on the table. Some private hills were forwarded. The Post Offvce Bill was taken up, and Mr. Holmes resumed and concluded his speech in favor of the amendment abolishing postage on newspapers. Mr. Grundy followed in reply to Air. IJo.vmks. and Air. Bir.n commenced a speech in support of the amendment. In tlie House of ReDresrutatirs th

whole sitting was spent in the discussion of the co.o of lien. Houston. May 10. In the Senate, yesterday,-several private bills were acted upon". On motion of Air. Diukurson, the bill appropriating for a limited time the proceeds of the sale of the public lands, was. taken up. Tlie motion of Air. Kit, to refcVthe bill to the Committee of Public Lands, was discussed and ihe question being taken, it was decided in the affirmative- bv the cast'r." vote of the Vice President. " The Post office Bill was taken up, and Air. Brmi in

cluded hi remarks in fivor of the amend

ment abolishing the'postagc on newspapers. Mr. Hill spoke at considerable leii'Mh in

certain roads in Arkansas Territory, which

was agreed to. Air. Ashley moved an amendment for the continuation of the Cumberland Boad, which, after a discussion, in which Messrs'. Ashley, Vance, Duncan, McDuffik, Mercer, and Irvix took part, was lost, ayes 55, noes 00. Air. Vance then moved an amendment appro

priating $10,000 for the purchase of a Toll

Bridge on tfie Cumberland Road, across

the Sciota river at Columbus, which was

lost. Air. Letcher moved an amendment appropriating $50,000 for the improvement

of Cumberland river, which, after a discus

sion, m which Alessrs. Letcher, Ingersoll, Blair, of Tennessee; Mercer, find Lvox took part, was lost, ayes U3, noes SO. Air. Mercer then moved an amendment relative to the improvement of the navigation of Savannah river, on which, from the late

ness of the hour, the question was not taken. Air. C. C. Johnston, moved the reconsideration of the vote on Friday, rejecting lite

bill authorizing a subscription on the part of the United States, to a portion of the Stock of the Alexandria Canal Company, which, on motion of Air. J. S. Bariuh r, was postponed to Friday next. The House then adjourned. May 8. In the Senate, 3Tcsterday, a resolution was adopted calling upon the Secre

tary of the Treasury for a statement of the

r.

avs

H 1 1 i'.l 1 Tt t C I . f 1 . . . ! , . ..'111 I. A. .VAw.J...l

7 i . .! .1 .liuuiuum lilt uuut'3 WHICH Hill utu wvuin business paper has to run, until they arrive , P ..r . . , . , , 1 . 4, 1 4, 11 r r- "V the lanlf prepared bv him and by the at thfl time tho mil trnm I invrrninent 1 . . J .

hills reported from the Committee of Manufactures of the Senate. Several private bills were passed. The bill establishing certain post routes and discontinuing others, was taken up the question being on tho amendment nbrilihinrr nnatnnri on neuvsMM-

rr,i . t , t ".-i I ft- .......

i lie operation, as thus described, appear? ?crSm jvIr Holmes resumed the speech, in

at the time the call lrom Government is

made upon them, when the business paper will have been paid olf; the bank then pays the Government, and the Government immediately again circulates it among the community.

to the committee too plain and simple to

require any further illustration; and if the principle is sound, and has been acted upon by the bank, they cannot discover in what manner, the operations of commerce could have been disturbed, or the value of pecuniary investments have been affected by the payment of tlie public debt by the Government. But if the bank has, as the public rcYenue has accumulated to the credit of the Treasury Department, gone on discounting upon it.

speak inir

some time, gave way to a motion to adjourn.

i mm s n

in ine louse ot Jienresfntutirpx. )

ERrLANUK, trom the Committee of W

v.nd Aleans, reported a bill making apr-ronri-

ations in conformity to the stipulations of treaties with certain Indian tribes, which was read twice and committed. Air. New

ton, irom the Committee of Commerce, re-

- X - 1 1 'II . . '

poneu a o.n making appropriations for building light houses,- light boats, beacons, monuments and placing buoys, which was read twice and committed. The balance of the d ly was consnrned in discussing the case of Gen. Houston, and the House adjourned without coming to a decision. s May II. In the Senate, yesterday, Alr. i agciaman introduced a bill.-on lonvV ;

the relief of Klishi Winter and rtl..

Several private bills worn mm, '

' v.iv.v.i x

'ltlL "in was taken un. the mie-

Mill oemLf Oil 1 0 n?nmi moi-t . '.-.e

'

postage on

1.1 1 !

continued ji:3 remaiKs in support of amendment, and Air. CurNnv made srine explanation in reply. Mr. Holmes spoke H. reply to tho remarks mndo en Wednesdayby Air. ILi.l. The question beinu then

uKen on me amendment, it was decided tne negative. :i iVJW.

Y FAS Alessrs. Bell. Bibb, Ciav, CI.iV. on Lw-ng, Foot, Frelinghuvsen, Havne,

j, .iiMiisron, iviugiit, vjiller, AI

-Namiam, J o:iuhxter, iTentiss

Ku'drs. l'nson.

XAVS

amendment abolish;,-: r

newspapers Air. Clayh.v

loore.

Bob!

ymour, fcuJobce, Sprague, Tom

X - i 1 l . I'll

iuvor oi uie amenurncnr, wnicn ne commenced on Friday hist, and, after speaking two hours and fifteen minutes without concluding, he gave way to a motion to adjourn. In tlie House of Representatives, several petitions and memorials were presented and referred. Air. Cambreltstg, from the Committee on Commerce, reported a bill making an appropriation for a Marine Hospital, at Portland, in Alaine, which was read twice and committed to a Committee of the Wpr-ie . oa the state of the Union. Air. Ca.miiti:- '

.vlr?5rs. IV'-nn r,.. t..?

1 WWII, J!CKner D:ili,s, D:ckeron, Dudley, Elhs, Forsyth, Grundy. Hendricks-, IV KaneKin", Alanm. Marcy, Rohi,o, niith, Taeweb I ipton, Jroup, Tyler, White. Wilkins.

and re

jected, and the bill was ri-r.v t.V u

Jjcnate; and Die amendment r.c r u - tlie Committee of the Whole, were an,-

( iii. i iie e':e:!:i,ri 1

in"1 1

rr ii n

v. . :t- I ; I Tl fill l.f-tl.-w ?

! .til mi ii i;ii' I i fill . j i-

r.ortrimenis to -,,.5 .r,A

uai io do read a third :tn

movco an ndioummmt

ov a vote ot ID to IS.

In tho House

wi::ci

Air. HoiiriJ i ws carried,

of ;;T:-

te.u