Western Sun & General Advertiser, Volume 24, Number 52, Vincennes, Knox County, 18 January 1834 — Page 1

3i7 BLSHU OTOOT.J

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.Tolin Vanlrees, do do. John Arbuthnot, Princeton, Ind. oVhn I. Needy do. Thomas Ciss;-ount Pleasant, Ind. Post-Master, Owl Prairie, Ind. Post-Master, Bloomfieid, Ind. Post-Master, Sandersville, Ind. Post-Master, Owensville, Ind. Post-Master, Stinkard's Mills, Ind. Jesse Y. Wilborn, Mount Vernon, Ind. Lev i Price, Evansville, Ind. John W. Davit, Carlisle, Ind. Isaac Ong, Merom, Ind. Post-Mister, Turmaii'.s Creek, Ind. John (J. itulev, Lawreneeville, 111. 'Vosr Master, Palestine, 111. Posi-M-ts:cr, Boonville, Ind. Pus'.-Master, Hock port, Ind. Lewi- vie, i. m. Ne'V-ilarmony, Ind.

REPORT 'Of the Secretary of the Treasury on the rrmoc.il of the Public Depoylfes from the Hani: of the United Stales mrtdc To both Houses of Congress, Dec. lih. 1833. Treasury DftartmentJ December 8d, 1833. ) (cONCLUDEn.) The facts and reasons above stated, appear to have established the following propositions: 1st. it was the duty of this department, not to act upon the assumption, that the legislative power would hereafter change the law, in relation to the bank of the U"nited States; and it was bound to regnlate its conduct upon the principle that the existence of this corporation would terminate on the 3d of March, 183o. 2d. The public interest required that the deposites of public money, should not continue to be made in the bank of the

United States, until the close of its existence; but should be transferred to some other place, at some period prior to that time.

I. The power of removal being re

public And still less, was it anticipated, that it would seek by its money to obtain political power, and corftrol the action of the government, by the favors it can showcr,or the fears of its resentment.

Its duty was simply that of an a?rent.

bound to render certain services to its principal, in consideration of the advantages panted to it. And like every other public agent or officer, its own separate interests were subordinate to its dutv to the

public. It was bound to consult the reu-

eral good, rather than its private cmolu-

mcnt,it they should happen to come into conflict with one another. If, therefore, it sought to obtain political power, or j increase its gains, by means w hich -would probably bring distress on the community, it violated its duty, and perverted t.?thj

pumic injury, the powers which were rven to be used for the public good. 9id in such an event, it was the duty of the public servants, to whom Iht trust was' reserved, to dismiss it, so far rs might lawfully be c-one, from the agency it had thus abused.. Regarding the bank, therefore, as the agent of the United States, and hound by the duties, and liai.ic to the obligations which ordinarily belong to the relation of

the officers of the government, transactions, in. which, the public interests are deeply involved. And this fact alone fur dishes evidence too strong to be resisted, that the concealment of certain important operations of the corporation, from the officers of the government, is one of the objects intended to be accomplished by means of this committee. The- plain words f the charter arc violated, in order to deprive the people of the United Stntes of one of the principal securities, which the law had provided to guard their interests, and to render more safe, the public money entrusted to the care of the bank. Would any individual of ordinary discretion, continue hi3 mcnev in the hand.- of

an agent who had violated his instructions

for the purpose of hiding from him the j

manner in whnm he was conducting the business confided to his charge? Wuuld he continue his property in his lianas when he had not only ascertained that concealment had been practised towards him, but when the agent avowed his determination to continue in the same course, and to withhold from him. as far as he could, rdl knowledge of the manner in which ho was employing his funds ? If an

individual would not be expected to con-

principal and agent, except where the j tinue his confidence, under such circumchnrtcr has otherwiso directed, I proceed j stances, upon what princip'es could a difto slate the circumstances, which shaw ferent line of conduct be required fr-m the

of the government, and that it ought not'th? care of the public interest.?

to nave occn tun her trusted as the depository of the public money. The United States, by the charter, reserved the right of appointing five directors of the bank. It was intended hv this means, not only to provide gi,;.r;Iiatis f the interests of the public, in the genera! administration of its affairs, but also to have faithful officers, whos siti.itbn would enable them to become intimately acquainted with all the tranaaciio;isof the institution, and whose duty it would be to apprise the proper atuhori'ies, of anCwis-

conduct, on the part of the ccrpornou. ! :j!:nnt had existed against the bank. The

tlu

shut nil nil ... r.i . . .

vrhiZ t . -examination,, and be; and direct interest, demonstrates that it tuaoieaioapply its money tothe most im-! was usin? it. mrmev f!,rth, n.,mo.-f

i C J - - u

proper purpose?, without detection nr ex

j posurc. When its conduct is impeached,

s--uu iUIU u nas used its great money power to obtain political influence, the investigation of the charge is in its ve rv nature, an inquiry intuits transaction? with individuals. And although the accounts brought forward on s ich occasions, may i-c Ihc accounts of individuals, yet they are also the accounts of the bank, and show its conduct. And being the fiscal agent of the government, with such immense power to be exercised, for good r (or ov il, the public safety requires, that all its proceedings should bo open to th3 strictest and most rigorous scrutiny. Its charter may be forfeited bv its misconduct.

and would be justly forfeited, if it sought

obtaining a hold upon the people of rhis cruntry, in order to operate npen tneir fears, and to induce them, by the apprehension of ruin, to vote against the can didate whom it desired to "defeat. 1c ouV cr words, this great monied corporition determined to enter the politic! arena and to influence the measures of the government by causing it weijht to be'Yelt in 'he election of & (.fliers. Rut if the circumstances above? stated were, of themselves, sufficient to t,rv c that the bank had sought, bv its monev, to obtain political power, and to exe-.ive. by that means a controlling influence on the measures of the eorrY.rnent, rce:it dcvelopntrnts hnv flir!::?!' u s..cn prf.f as to leave no room fyr do ibt. I have tfm

to o'.uam political influence in the affairs honor to transmit herewith an nili. nl

of the nation. And yet such attempts on statement (marked B.) tiiied hv I . t of

in- pan oi me oanK, can never nc proven inc punnc oiitjctors in the hank, showinr exi t pt by the examination and disclosure at the same time the unlawful manner in

which its business is cducted srJ tho unwarrantable purposes to which its mo-

. i

Ti'f Willi

The

P'Ki.ic money is surely cntilled to the same care and protection, as that of ati individual, and if the latter Would be bonnd, in justice to himself, to withdraw his money from the bands of an agent, thus rog:rd:ess of his duty, the same principle rcx -.iiv-s th r. the money of the United Suites unJer the like circumstances, be witi.urawn from the hands of their fiscal aeiit. And as the power of withdrawal v.'p-j confined to the secretary of the trcasurv it Was his dutv to remove it on this

ground nlone, if no other cause of co.n-

likely to afiec the public interest.Whe

fourth fimdamcntal ar.ic.le of the constitution of the corporation declares, that not less th iti seven directors shall constitute a board fr the transaction of business. At these mec:ings of die t.oard, the directors on the part of the United States had, of course, a right to be present, and, - consequently, if the business of the corporation had been transacted in tho manner which the law require, them was abundant security that tvthiug could l.e done, injuriously affecting the iuten s's of the people, without being immediately communicated to the public servants, who were authorised to apply the remedy. And ifrtltc corporation has so arranged its concoVis, as to conceal from the pul tic dirccttvs some of its most important operations, ai

his therein destroyed the safeguards i mv know. vdge. 1 have tho hon r to pre

which were designeil to secure the inter- sent hcrcwili report made b three ol ests of the United States, it would seem the pu !sc directors to the President of the

i

to bp very clear, that it has forfeited

id is no longer wor-

concerns

served exclusively to the Secretary of the

Treasury, ny the terms of tho charter, his action was necessary in order to etfect it, and the deposites could not according to the agreement made by Congress with the stockholders, have been removed by the legislative branch of the government, unfil the charter of the lank was at an end. lib. The near approach of the time when the charter would expire, as weli as the condition of the mercantile community. . rod need by the conduct of the iank. rendered the removal iudispensal !e, at the time it was begun; and it conk not have been postponed to a later day, without injury to the country. Acting on these principles I should have felt 'myself bound to follow the course I have pursivd in relation to the deposites, without any reference to the misconduct of the bank. But there are other reasons for the removal, grow ing out of the manner in which the affairs of the

bank have been managed, and its monev applied, which would have made it mv duty to w ithdraw the deposites, af anv period of the charter. It will, I presume, be admitted, on ail hands, that the bank was incorporated, in order to create an uselul and convenient p.i; !ic agent, to assist the government in its ti-'al operation. The act of incorporation w as not designed merely as an act c f favor to the stockholders, nr were exclusive pri ileges given to them for the purpose of enabling them to attain political power, or to amass wealth at the expense ot the people of the United Stales. TIk? motive for establishing this vat monopoly, was the hope that it would conduce to the public good. It was created to ! e the agent of the public, to be cmp!oed for the benefit of the people, and

the peculiar privileges and means ot j ri

claim to confluence

thy of trust, in the ordinary

of life, anion; individuals, no prudent man would continue to place his funds i:j tho hands of an agent, after ho discovered, that ho was studiously concealing fr'm him the manner in which thev were employed. The. public money ought not to

eon-met of the ban, in relation to

throe per cent. t ;.ek of the United Sutes, is a mem-r d ie instance of the power exercised in secret by the i-x mange committee, and the abuses to which it is incident. The circumstances attending that transaction havo been so fully laid before congress and the public, that it is useless to

repeat tneir. here. It was a casein which this committee not only mmaged m secret a monied transaction of vast amount, intimately connected with the interests of the peoplo of this country, but one where the measures of the government were thwarted bv the bank, and the nation cm polled to continue for a time, liable for a debt, which it was ready and desired to extinguish. Nor is this thconlv measure ot the ki. id which has come officially to

its i Lntteu bta'cs -..a the I ot Anri,

A.) in winch, in compliance wi ti

of its dealings with individuals.

2d. It is not merely by its concealments that the bank has proved itself regardless of the duties of its agency Its

own uueresis w in oc icurci to i-c its ru

ling principle and the just claims of the o:::uic to i-e treated with hut little regard vlirm tliey have cme into collision with tje interests of the corporation. This w as but toe piamiy the case it. the affair of the three per cents abov mentioned. A recoal instance pr ves its ride of action is uoi cluu.gc i,i dmt respect. And the n.ib re f the French government to pay the t ill drawn for the first instalment due

by the treaty, has been made the occasion of endeavoring to obtain from the public, die sum '.-f ,vjl5,812 77, to vhich no principle cf justice appears to entitle it. The money for yvhieh the bill was sold

remained in the bank. The expenses it incurred were of small amount, and these the government are willing to pay. But hi corporation, not content with tho prof

it it was deriving from the millions of

pui-uc money then in its vaults, and which it was daily usi jg in its discounts, endeavors to convert the public disappointment iuio a gainful transaction for itself, and demands the largo sum above mentioned, w ithout pretending that it sustained any loss or inconvenience, commensurate with

the amount it seeks to obtain from ihe

government. 1 he fiscal agent ot the puh-

nev lias been and still is applied. will be seen by the proceedings therein stated, that the whole capital of t!'ie bank is placed at the disposition ot ihe Preside . of that institution. He is authorised to expend what he pleases in causing bo prepared and circulated such documents and papers as may com nnmra'v u. dio people information in regard to the nature and operations of the bank." Ai l he may therefore, under tho very indefinite

terms cf tho resolutions, employ as many persons, as he pleases, at such saS.-io as he thinks proper, cither to prepare ''aily paragraphs fi r newspapers in favor r f tho bank, or to write pamphlets and essavs to influence the public judgment. An.: he may even provide tor thiTpublicati'., by salar: s.- to printers, or by purchasing presses and types, and placing them in tho hands of agents employed a .d paid by the bank. There is no limitation, shn of tho capital of the bank, as to the sun of money he may thus expend in diillrent parts of the United States. From the 'iescription of articles which appear to have le paid for under this resoimi i: 3rvn,5

that the president of tin? institution has supposed that put iicalkns contaiuhv attacks upon v.fiiccrs of the government who are supposed io sand in tho way of

the renewal of the charter, is ono of tho

ie ia-

li , attempts to avail itself of th", unex-i modes of 'communication toth nco

pecied disappointment of the principal, for j formation in regard to tin natvre anf .jc the purpose of enhancing its oyvn profits ; rations of th(t iank. This construe ? i -r

at the expense of the community.

3d. There is sufficient evidence to prove

wo

eommuuic.te 1

(iriru1

his roqun'-l that they would o him such information a

their personal knowledge relative to the-e uu js'ial proceeiiings "i'thc ! oar! of director, thev disclose die exceptionable manner in whieli the powe-onferrcd by law on the board has ben wrrendereJ to the

nc guarded wim less vigilance, than tht exchange committee ;th.tt this has tjcc;-; of an individual. And measures of con-j ' tc evidently with thciiCtigH-of prev. ntceulment, on die part of the coroni -ati i i ?z a or ner and contemplated exanun -

was, as it appears, approved by the board, s t!i-y continued die au horiiv in hie

'bat the bank has used its means with a hand?, unchanged, after the manner in

view to obtain political power, and there-; which a portion of the money had lcen

i.y secure the renewal ot its charter. The documents which have been here oforc laid before congress-, and are now on its files, will show, that on the 31st of December, 180, die eg; eg.ite debt due t. 'he bnnk, was 5 , KrJ.;5v) 1 and that o: the : ! of Dvc.unoer, S31, it was

X'lo,i2 0i, being anextention of its

.s in a sitigle vear of twenty millions

arc not only contrary to tho duties d

agency; but are -also in direct violation of the law, to which it owes us cr;.or;,.te e-

:e

.1 . . 1

t!oti nito t jo accounts ot ners ns wn

ruper was offered for discount; that u minority of the joard annarcntlv sufficient

istence. And tho same misconduct, which. ; to have prevented the to in, it tho securiin the case of private irulividuais, would ! ty was bad. yvere deprived of their votes

was v.n!uujol (ioliare, and tin increase tf nearly fifty

percent, on i-s previous accommodations. Aodasif to leave us no room to doubt as to the motive of this extraordinary conduct, it continued to add rapidly to its loans and on the 1st of May 163 w hile its petition for the renewal of ir--jarter was yet pending before congrcssuiey am v.mted to 70, 12.N,07U 72, being an in-c-roase -f Sfi .-101,(517 70, in the four preceding iuen;li, s nd making altogether an addi'i(u .f si ;,02i,70G d, in the short space of sixteen months, and beins an ex-

induce a nrudeut m.in to dismiss an aent

from his employment, yvould require a similar course tow ards the fiscal anenl of

the government, by the officer to yvhom

the law has entrusted the supervision of its c -nduct, and given the poyver ef removal. Tried by these principles, it will be bund that the conduct of the bank made it the duty of the secretary of the treasury to yvithdraw from its car ilhe public finds. , 1st. Instead of a board constituted of a: least seven directors, aecoyling" to the charter, at which those appointed bv the

! United States have a right to be present,

manv r.t the must important money transmi actions of the bank have been, and still are placed under the control of a committee denominated the exchange committee, of which no one of tho public directors, has I cen allowed to be a member since the commencement ot the present year. This committee is not even elected by the beard, and the public directors have no voice in their appointment. Ttiey Trrc chosen by the president of the bank; and the business of the institution which ought to he decided on bv the hoard of directors, is in many instances transacted by this committee, and no one has a right to be present at their proceedings but the President and those y horn he shall please to name as members of this committee. Thus loans are made, unknown at the time to a majority of the board, and pa

per discounted which might probably be

1 a

upon trie question; and mat the long established bye laws of the institution yvere set aside for the purpoe of carrying these designs intoeffuc with less difficulty cr

embarrassment.

If proceedings like this are sanctioned by the constituted authorities of the United States, the appointment of directors on their part is an idle ceremony, and affords o safeguard to the public treasure, in the custody of the eank. And even legislative cnactmenis, in relation to this corporation, are of but little value, if it may, at its pleasure, disregard one of the fundamental articles of its constitution, and transfer to a secret committee, the business which by law, ought to be transacted bv the boarn. It is scarcely necessary in presenting this document to the consideration of congress, to notice au e jection, w hich has oeen sometimes put for-

applied was laid belore them. And

are left to conclude, that this institution is now openly in the field a political partisan, and tht one ot i;s means of warfare is the destruction of the political standing of those who are opposed t . tho renewal of the charter. The sum actually charged to the expenses is sufficiently startling. How much more may bavo been already squandered, wc are yet to learn, and the work' of "preparing and circulating" such publications is sTill, it is presumed, going on under the last resolution of the board. It is moreover impossible to ascertain the specific purpo-rs to yvhieh ihe money may in fact have been applied, since vouchers are no' re.j an d to show the particular ervbxs fjr whi it was given. With these peiiive pr U of the efforts of the bank fo obtain p-.wcr, and to infl.icnco the measures of ih j v-

eminent, I hnvc not hesitated as he

tension of m.re hi; U5 per cent on i's! path of duty. If, when thi3 eyjdeo e as

vate emolument given to it, bv the act of rejected at a regular mee;...g of the direc

incorporation, yvere intended as rewards ' tors, the most important operations of the

fur the services it was expected to perform

It ws never supposed, that its ow n separatc inteiests would be voluntarily fcro'Jgdit into collision with those of the

bank are sometimes resolved on, and exe

cuted by this committee; and its measures

are, it appears, designedly , and by regmar

ward against the publication nf any proceedings which relate to the acj ants of

private individuals. The circftfcisianccs detailed, are the regular and oifiei il trauactions of the board of diree.ors, -nor do thev involve the private dchtoi an! creditor account of persons dealing with the bank, yvhieh is alone included in the distinction taken hy the charter m n-gard to private accounts. It thj argument thus brought forward were a sound one, there could be 00 such thing as an examination of any yalue into the conduct ot the bank. Lecu;ie tho business of the bank being with individuals, its misconduct ouid uev cr be show n without bringing before the

public tho individual transaction in w hich

previous loans. Such an increase at such

a period of its charter, is without example in the history of banking institutions. On the 31st of December, 1830, when its

! loans am vunted as above stated to only

$ 102,301 '-il, the corporation hail been in existence fourteen years. The sudden and great increase was made yvheu the charter was drawing to a close, and when it had nut little more than four ears to rm. It cannot bo supposed that these immense loans were made, from a confi dent expectation that the charter yvoyld be renewed. On the contrary it is r.j'.v an historical fact that the bank itself denned the chances of renewal so doubtful, that in the session of congress beginning in December, 1831, it petitioned for a richartcr, and th; reason generally assigned for pressing fur a decision, at that tune, was the grc:U extent of its business; and the necessity .f preparing to bring it to a

close if the charier was not to be renew- j Can it bo permitted to a great monied crr-

befcre me, I had failed to withdraw the de

posites of public mony from tin? tukt it would have been lending the co i.;;euance and support of this dcpartmer.t to ' measures which arc but too well calrula ted to destroy the purity of our indurations, and endanger thereby the liberties of

j the people. It cannot be suppose-: hit

these expenditures are justifiable on the ground that the bank has a right t-. da.fend itself, and that the money 1,1 que-ti .rt was therefore properly expended S um of the items accounted for, siitiicicnllT show in what manner it was cw'.civosiiiz to defend its interests. It had entered tho fiel i of political warfare, and as a political partisan, was endeavoring to defeat the election of those who were opposed to its views. It was striving by means of its money to control the course of the government, by driving from power those

wno were obnoxious to ita resentment.

ed Tiiur, with but little more than four

years to r in, with doubtful chances of re

newal, and aware af the necessity of be

poration to enter on such a controversy, and then justify its conduct on the ground

mat 11 is intending its own interests f

the conduct of the hank was iuineached.

And if it co dd make g i 'tie that such nr. eeeuiugs are n-ver

V W1 I HI

ginning to arrange its vast transactions,! The right of such an institution to later

al ue leases its loans in sixteen months,; fere in the political cunceru of the counmore than twenty eight millions of dol-j try for nny cause whatever, can never be lars. Was this imprudence only ? It can ! recognized, and a defence like this, on ihf

m 1 ' y

not oe believed that tho?e who managed its concerns, could hive committed such au oversight. Can any proper reason bo assigned for this departure from the course yvhieh the interests of a monied corporation, as yvel1 as that of the country, obviously required. lam not aware that any sufficient justification ha been offered. And this extraordinary increase of its I aus, made in so short a space of time, at

to u? ex -' sjlu a period 01 its charter, and upon ihc

posed to tbe puehe, Lecai.M: individuals ! eve of a severely contested ejection of

syMeroj so anutigtd as to couccl from j arc concerned in them, it would at once Resident, in whisb ihe ban!; ook ao cnen

part wt the bank, comd no; tj .o. crated even if tiiO individ aal stockholders 1 oc w ere thus using their own money to promote their owu interests. U,.t n"'n ,. 1ly the money of individual, whi ii is thus applied. The oue-titdi ol" die f '.(n' of the bank, amounting to devt-u u.n.ir.51 of dollar, belongs to the L7nitl S 4t?s, and toe one lifin of tho money whicn ha o'".i expended, an! i- yet a cpt'.. -;d, under ibis resolution, is the propert)' cf the public and :n j not belong to pivalc tudWiduali. )k4l itc Uord of dblvUV5