Western Sun & General Advertiser, Volume 25, Number 21, Vincennes, Knox County, 14 June 1834 — Page 1

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BY STOUTJ VSKTOBSXrEJBS, (LfiL.) SATURDAY, JUSTS 2835.

EIic 22?cstcru Sun

IS published at $2 50 cents, for 52 numbers; which may be discharged by the payment of 2 at the time of subscribing. Payment in advance being the mutual interest of both parties, that mode is elicited. 'A failure to notify a wish to discontinue the expiration of the time subscribed for will be considered a new engagement; and no subscriber at liberty to discontinue, until all arrearages are paid. Subscribers must pay the postage on their pa pcrs when sent by mail. Letters by mail to the Editor on business must be paid, or they will not be attended to. Produce will be received at the cask market price, for subscriptions, if delivered within the year. Adveutisements not exceeding one square, will be inserted three times for one dollar, and twenty five cents fur each after insertion longer ones in the same proportion. (-Persons sending advertisements, must specify the number of times they wish them inserted, or they will be continued until ordered out, and must be paid for accordingly. LIST Or AGENTS. John Murphy, Washington, Ind. John Vantrees, do do. John Arbuthnot, Princeton, Ind. John I. Ncely, do. Thomas Cissell, Mount Pleasant, Ind. Post-Master, Owl Prairie, Ind. Post-Master, Bloomfield, Ind. Post-Master, Sandersville, Ind. Post-Master, Owensville, Ind. . Post-Master, Slinkard's Mills, Ind. Jesse Y. Wilborn, Mount Vernon, Ind. Levi Price, Evansville, Ind. John W. Davis, Carlisle, Ind. Isaac Ong, Merom, Ind. J'ost-Master, T-irman's Creek, Ind. John C. Reilcv, Lawrenceville, 111. Post-Master, Palestine, 111. Post-Master, Boonville, Ind. Post-Master, Rock port, Ind. Lewis Gex, p. m .New-Harmony, Ind. REPORT Of the Committee of the House of Representatives, appointed to investigate the affairs of the Bank of the United States. ' Presented May 22, 1S34. The committee appointed in pursuance of the resolution of the House of Representatives, passed on the 1th day of April, by which it wa9 Resolved, That for the purpose of asceriaining, a3 far as practicable, the cause of the commercial cmbarrassmcat and distress cbmplained of by numerous citizens of the United States, in sundry memorials, which have been presented to Congress at the present session, and of inquiring whether the charter of the Bank of the United States has been violated, and also what corruptions and abuses have existed in its management, whether it has used its corporate power, or money, to control the press, to interfere in politics, or influence elections; and whether it has had any agency, through its management or monev, in producing the existing pressure, a Select Committee be appointed to inspect the books, and examine into the proceedings ol the said Bank, who shall report whether the provisions of the charter have been violated or not; and, also, what abuses, corruptions, or mal-practices. have existed in the management of said Bank; and that the said committee be authorized to send for persons and papers and to summon and examine witnesses on oath and to examine into the alfairs of the paid Bank and branches. And they are further authorised to visit the principal bank, or any of its branches, for the purpose of inspecting the books, correspondence, accounts, and other papers connected with its management or business; and that the said committee be required to report the result, of such investigation, together with the evidence they may take, at as earlv a day as practicable. Respectfully submit tho following Report, in part ol their proceedings, so far us thev have found it practicable to discharge the duties devolved on them. Charged, particularly, to examine into the conduct and condition of the Bank ot" tht? United States, they have endeavored most anxiously to ascertain correctly tiie true character of that highly responsible and delicate trust. j To judge rightly of the proceedings of the House of Representatives, and of its committee towards the Bank, it must be borne constantly in mind, that that corporation differs essentially from an ordinary banking company, incorporated for private benefit. The Bank of the United States was chartered for great public purA poses as an agent, deemed necessary to 'the Federal Government, in the efficient Vercise of its high prerogative, to fix the value of money, and thereby secure the benefits of a sound circulating medium to the confederacy. It wai designed to aid the Treasury Department to collect conveniently and disburse the national revenue of its stock the United States hold seven million of dollari. And its notes are by law made receivable at par value, in payment of ull du to the goFcrameiit. Ounoie, we

must, that the Bank was established for

great public ends, and that the House of Representatives is the grand inquest of the Union, and as such has power to visit and inspect all Departments of the Federal Government, to correct their abuses, reform their errors, and confine the exercise of their powers within the limits prescribed by law to each, and it follows that the House has power to appoint a committee to make a minute and full inquiry into all the multiform operations of this powerful corporation. But that there might be no doubt of the existence of the power here contended for, it has been expressly reserved in the 23d section of the charter of the Bank, which provides, "That it shall be at all times lawful for a committee of either House of Congress appointed for that purpose to inspect the books and examine into the proceedings of the corporation hereby created, and to report whether the provisions of its charter have been violated or not.v The language in which this authority of the House is described, is so plain and so full, that an attempt to illustrate it appears to be supererogatory. The commit tee to be appointed are to inspect the books and examine into the proceedings of the corporation1 without exception. The section contains no reserved power t the Bank to designate the place where, or the persons in whose presence the examination shall be made. These modes of exercising the main power are necessarily, as its incidents, dependent on the discretion of the sovereign with whom it is lodged. A contrary construction would make either or both Houses of Congress dependent on the agents whose conduct is to be the subjects of inspection. If the Bank can attach any condition to its exercise, not found in the charter, then it could render nugatory the powrer, by which it was intended it should be checked and controlled. That the great conservative purposes for which sue). Committees of investigation were to be appointed might not be thus defeated, the extent and character of their inquiries are rightly made to depend on the wisdom, patriotism, and justice, of either House of Congress. The only restriction to bo found in that clause of the Bank charter which we are considering, is that which relates to the committee, and not to the House; and has reference not to the extent of the examination, but to the character of the report to be made. The committee is directed to report amongst other things, "whether the provisions of this charter have been violated or not." The object of this specifiic requirement is to be found in another clause of the same section of the charter, which provides "whenever any committee as aforesaid shall find and report, or the President of the United States shall have reason to believe that the charter has been violated, it may be lawful for Congress to direct, or the President to order a scire facias to be sued out of the Circuit Court of the district of Pennsylvania, in the name of the United States, calling on the said corporation to show cause wherefore the charter hereby granted shall r.ot be declared forfeited. tsut it ever mere naa oeen a wen iotuided doubt as to the true and fair constr tion of this reserved power of the Hon the committee did suppose it had been long since yielded. In ISIS, Mr. Spencer of New York, offered to the House of Representatives a resolution providing for the appointing a committee to inspect tho books, and examine into the proceedings of the Bank. In the debate to which that resolution gave rise, the opinions now entertained by your committee were well expressed by many distinguished gentlemen. For presenting short extracts from one of the speeches then made, no apology, it is supposed, will be needed. Mr. Lowndes said, he had no "apprehension of delect of power in the House to prosecute the inquiry in the terms proposed. He had no doubt of the power of the House, if the public interest required it, to direct a committee to make such a report. The nation, said he, has a deep interest in the conduct and management of the Bank; our duty to the people whom we represent, tho nation's interest as owners of a large portion of the stock, its interest in the revenues being wholk payable in the notes of the Bank, will justify a constant and vigilant attention to its proceedings. If there had been a doubt whether the conduct ot the Bank had been proper or not, the House va fully justified in investigating into tho facts, and inquiring whether abuses had been commit td or not. He would vote for any inquiry in its broadest shape " The resolution of Mr. Spencer was adopted,and a committee, appointed who visited the principal bank aVPhilade lnhu and some of its branches. TJicv had free unrestrained access to the bo"ks and papers of the bank. They were furnished by the officers with such extracts and copies from the books and papers of the Bank as they called for. They summoned before them the Directors and officers of the bank and examined them on oath touching their conduct and proceedings. And the committee made to tho house pn the the 16ih January, 1810, an eabora3 report, from which we learn that their inquiries bad been chief! directvd Uo the

jzeneral management cf the bank and the

conduct of its officers." The transactions of private citizens with the bank were then freely and fully examined. Individual transactions of the president and directors of the bank, in the purchase of its stock were fully investigated, and those officers sworn and required to testify before the committee. Though deeply affected personally and officially with those (ieveiopemenis, mey never hesitated or on jected to obey the process or to give their l mr--testimony. . The names of the borrowers nf flip - . -. ...w bank were published without scruple, with whenever, and not otherwise, such a publication was deemed necessary to illustrate the improper conduct or mal-administra-tion of its officers. This precedent, to which the Committee of lSt'i'J strictly conformed, is entitled to high respect from the eminent character of those by whom it was established, and who have justly enjoyed hih reputation for purity of purpose aud distinguished attainments. If any additional reason for deference to this cotemporaneous construction of the J3d section of the charter be necessary, it may be found in the fact that the directors of the Bank in 1810 themselves assented to it. They conceded to the committee of the House the right to inspect all their books and papers in such manner as that committee thought just and proper. Besides those who now have the managemerit of the Bank in 1830, without question of right, without hesitation, without protest, produced for the inspection of the committee of the House, all their books, papers, correspondence and accounts, and appeared when summoned, and testified on oath touching the transactions of the institution under their control. "With these preliminary observations for which it is believed ample apology, if any be reauired. will be found in the subseauent portion of this report, the conimittco will proceed with a bnet analysis ot their proceedings in the execution of the duties devolved on them, showing the unexpected obstacles interposed by the managers of the Bank, to tho progress of the examination, and their repeated refusals, in violation cf their charter, and in contempt of the authority ot the laws and ot the House ot Keprci sentatives to permit their books and papers to be inspected or, their proceeding to be examined. The purposes for which vour commit tee were appointed, are stated so distinct Iv in the resolution of the House that they have experienced no embarrassment in de ciding on the character of the duties impo sed. Thev are required 1st, to ascertain A ' if practicable, the cause of the commer cial embarrassment and distress com plained of bv numerous citizens of the U niteu states, in sundry memorials wnicn irf.. 1 -l l have been presented to Congress at the prcsent session, and whether the bank has had any agency through its management i i and money in producing the existing pres sure. 2d. To inquire whether the charter of the Bank of the United States has been violated, and what corruptions and abuses have existed in its management. 3d. To examine whether the bank has used its corporate power and money to control the press to interfere in politics, or influence elections. The powers designed to be conferred on the committee, if they could have been exercised, are adequate to the performance of the duties enjoined; they were authorized to send for persons and papers; to summon and examine witnesses on oath to visit if necessary tho principal Bank and its branches and to inspect the books, correspondence, accounts and other papers connected with its management. Such are the duties and powers of the committee, conferred on them by the house with extraordinary unanimity, and winch your committee felt hound to regard, as consistent with the chartered rights of the corporators and their debtors. Under a deep sense of respectful obedience to the decision of the House of Representatives thus solemnly expressed, and feeling that they had no right to question its j istioe or propriety, your committee proceeded to Philadelphia on the 2'M April, to commence the performance of their duties. -, , I addressed to the President of the Bank, a communication, enclosing a copy of the resolution of tho House of Representatives, and notifvin him of the readiness of the Committee to visit the Bank on the ensunm dav, at any hour anre cable to him. In reply, the President informed the Committee that the nnoers thus received Hioi.ld Lc submitted to the ... . . . . .. Board to Le of Directors, at a special meeting called for that purpose. It appears, in too journal of the proceedings of the ! Committee, herewith presented to the Houe, that this was done, and that the Directors appointed a committee of seven of iheir board, to receive the committee of th House of Representatives, and to of-1

for for their inspection such bocks and pa-! the room they expected to find set apart pcrs of the Bank, as may bo necessary to j for their use preoccupied by the commitcxhilitthe proceedings ufthe corporation,! tee of directors, aud others, officers of the rrronlinf to tho riMlUirements of tlif r!nr-I lt.mlr And instead nf isiirh nunnn.

I o , , I ter. Ia iho Utter vl Joan fccr-wat, &q.

as chairman of the committee of director?,

commuiiicating the proceedings of the board, he says that he was directed to inform the chairman of this committee, that the committee of the directors "will immediately direct ihe necessary arrangements to be made for the accommodation of the committee of the House of Representatives," and would attend at the Bank to receive them the next day, at 1 1 o'clock. lour committee attended, and were received by the committee of Directors. IT -t 1 -t II Up to this period nothing had occurred t instiff iKnKaiiorint n roM n iujuJk-, I' 1 1 1- I 14111b u U ICJJUl I IUII 10 felt, on the part of the managers of the I - Bank, to embarrass the Droceedinirs of the committee, or have them conducted dilTeVently from those of the two preceding committees of Investigation. On assembling, however, the next morning, at the Bank, thev found the room which had been offer ed for their accommodation, pre-occupicd by the committee ol the board, with the rresidentot the Hank, as an ex officio as an ex officio member, claiming the rizht to be present ! at the investigations and examinations of this committee. This proceeding the com " rp, mittee were not prepared to expect. When the appointment of the committee of seven was first made, it was supposed that the measure, however designed, was not well calculated to facilitate the exam ination. The officers of the Bank were believed to be the most appropriate agents of the board of directors to exhibit their books and papers. By them the entries in the books are made, and by them such entries are most readily explained. It is their duty, too, to be daily at the Banking j , , i, house, and on that account thev could asdot in fhn .vnm;o,;rt "j.u, the committee of direetnrs. The objections to the speoial agents of the Board were felt and expressed, but they were waived, and no disposition had been manifested or felt bv vour committee, to conduct the examination in any manner Qot entirely acceptable to the board. Under these circumstances, your committee did think that a decent respect for their rights and privileges, and much more for the dignity of that body from which all their powers were derived, might have induced the committee of Directors to forbear to make them feel an entire want of control over their own room. With a pre. vious determination to be present when their books were to be inspected, they could have waited to avow it until these books were called for, and the attempt made to inspect them in their absence. These circumstances are now reviewed, because they then excited an apprehension, wnicn me sequel tormeu into conviction, that this committee of directors had been formed to supervise the acts and doings of your committee, and to limit and restrain their proceedings, not according . -i i 10 inc aireciions coniainea in tne resoiu tion of the House, but at the will and judgment of the board of Directors. Your committee have chosen to ascribe this i i- . ... i . . claim of the committee of directors, to sit conjointly with them, to the desire to prevent them from making use of the books and papers, for some of the purposes pointed out by the resolution of the House. They are sensible that this claim to be present at all examinations, avowed prematurely, and subsequently persisted in with peculiar pertinacity, could be attributed to very different motives; but respect for themselves, and respect for the gentlemen who composed the committee of directors, utterly forbids the ascription to them of a feeling which would merit compassion and contempt much more than resentment. This novel position, voluntarily and deliberately taken by the committee of the Directors, predicated on an idea of equality of rights with vour committee, under m 7? m your resolution, rendered it probable, and in soma measure necessary, that your committee should express its opinions of the relative rights of the corporation and the House of Representatives. To avoid all misunderstanding and future misrepresentations, it was desirable that each question should be decided separately. Contemplating an extended investigation, but unwilling thatan apprehension should exist of improper disclosures being made of the transactions of the Bank and its customers, your committee, following the example of the committee of 183,1, adopted a resolution declaring that their rroreedinrr ID r- p , should be confidential, until otherwise oruered by the committee, and also a resoJution that the committee would conduct its investigations "without the presence of any person not required or invited to attend A copy of these resolutions was furnished to the committee of directors, in the hope that the exclusivo control of a room at the Bank during its hours of business, would thereafter be conceded to your committee, while the claim of the committee of directors to bo present when their books were submitted fr inspection, should be postponed for decision, when the books were called fwr and produced by them. On the2Sth ult. this committee assem bled at the banking house, and agpin found j -- uiauvi.o j they bid a ri$ht lo cipc:t, they reccir-i

ed copies of two resolution adopted by the Board of Directors, in which they were given to understand that their continued occupation of the room must bo

considered a favor, and not a matter of right; and in which the Board indulge in unjust commentaries on the II. of Representatives; and intimate an apprchensioa that your committee design to make their examinations secret, partial, unjust, op. pressive,and contrary to common right. When this communication hadbcen read, your committee adjourned to meet at its own chamber, at thej North American Hotel. Notwithstanding all that had occurred, the correspondence with tho committee of directors was continued If in so doing an error was committedlet it be imputed to the belief that great forbearance well became the committee of the immediate representatives of the People. While it was thus doubtful whether room roum h nKt-im house, without nnn,v.,; v- . deroatorv tn tl ri,,. j j- - .. ,T J. 6'"u uigniryoi th House, and a concession in advance of a cam bei up oy the liank, which might senously incommode your committee in their business, tney determined to execute your resolution, if practicable, without intruding on the directors of the Bank; they therefore, required of the President and Directors, in writing, to submit for the in. spection of the committee, at their com rnittee room, on the 3d day of May, certain' books and papers of the Bank, which might have been thus produced without interruption to the ordinary business of tho i -v.iujgiuuu in terms implied the I : '1 w or iiieir comOn the day named, the board nAA a written communication to tho commit tee , declaring, "that they cannot comply with that part of tho resolution of tho committee of investigation which requires that certain books of the Bank be sent to the IWh American Hotel iK;a , j , eleven o'clock. our committee are of opinion thatthit refusal of the board of directors to submit the books of the Bank to the inspection of your committee, is a violation of the Bank charter, and a contempt of the laws and authority of the House of Representatives. The reasons for this opinion need not be here repeated or enlarged. It has been maintained, and is insisted, that the right to inspect the books of tho Bank, carries with it the power to perform that office out of the banking house, if it cannot be done conveniently and elTectually therein, and your committee cannot perceive that just ground of complaint exists against a claim of power, in a comrnittee of either House of Congress, which, by the laws, and with a wise regard to tho public interest, is conceded to tho judicial tribunals of both the Federal and St&to government?. The facts already stated, demonstrate that a room could not be procured in tho Bank for the use of the committee, without a concession not to be recalled, which would have made your committee dependent on the courtesy of the Directors of tho Bank at every step of the inquiry, and tho various communications received from tho directors and their committee, annexed to this report, will corroborate this statement Having failed to accomplish the object of procuring the books of the Bank for inspection, at their committee room, vour committee felt it to be their duty 0 da. mand their submission for that purpose at tho Bank, of the President and Cashier of :he Bank, the usual and general agents of the corporation. For that purpose" on tho oth day of May, having apprised the commi.ucu ui uireciors oi their intention, at one o clock they repaired to the Bank and then required the President and Cashier each of them respectively, to produce cer! tain books of the Bank, for the inspection of the committee. This was refused byeach of those officers, for reasons stated in wnting,and to be fjund in tho oppendix of this report. In this refusal your committee beliertf there was a substantial violation of tho Bank charter, and a contempt against tho authority of the House committed. They are of opinion, that your commit, tec are under no obligation of right to recognize any agent of the Bank other thaa those generally known as tuch,an.l mako their duty and right to inspect the booko depend on the convenience or caprice of such deputation. If jjch I the fact, then the cxamina. tion of the Bank will in all cases depend on the disposition of the Directors to haro their proceedings examined. Having been thus denied, by the officer, of the Bank, and having ' been informed by he directors, that they were not aware ot havmg declined to furnish a room for the exclusive cso of the committee, your committee, sincerely desirous to meet tho wisht and directions of th Houe, believed it to be their duty to seek another interview with the committee of directors, and by arrangement met the coamittea of the Board, at tho Bank, on the 7th day cf May, at an hour fixed by therosslreo Your committee then and there, in n ting, required of the coeaniitteo cf tho Board, to produce to your committee lor : insictuuu, cctiaiu uwtkj &qu papers 01 tiV9 bank, to enable the coraoittca to iauirti inspection, certain books and papers of tho