University of South Carolina Libraries
VOL. ?3--NO; 40. COLUMBIA, S. C.OCTOBER 7, 183?. $8 PER ANNUM. the 30L7S^SIA 7SL2S30P3 IS PUBLISHED BY A. S. JOHNSTON, Every Saturday Morning-, *J*!> EVERY WEDNESDAY 15D SATURDAY M0RNI5G D7&I.VG THE SESSIOS OF THE LEGISLATURE. TERMS : Three dollars per annum, if paid in advance, or Fbur dollars at the end of the year. Advixtisixexts conspicuously inserted at 75 eet~s per square for the first insertion, and 37 i cents for every subsequent insertion. All advertisements ordered in the inside every publication ? or inserted otherwise than regularly, to be charged as new for every insertion. Advertisements not having the number of insertions marked on them will be contin ued till ordered out, and charged accordingly. All accounts for advertising, above $25 and under $50, 25 per cent, deduction ? above $50, 40 per cent, de duction. Virginia State Lottery, CLASS .Vo. 8. To b; drawn at Alexandria, on the 21st October. HIGHEST PRIZE, $40,000. SCHEME. 1 Prize of $40,000 1 " " 10, 1 " 1 ? " 3000 5^ of 1500 5 " 1200 150 '4 1000 &4 * 100 i u 4* >'940 *1 ?4 " 90 &c. Whole Tickets, $10 ; Halves, $5 ; Quarters, $2 50. To be had at the Managers Office, No. 26 Broad street, Charleston, S. C. Sept. 23 38 Notice. ALL persons having any demands against the ? estate of MICHASL HARK INS, deceased, will rencer them to the subscriber, duly attested ; I and all those indebted to the estate of the said Mi- j chaei Harkins will please make immediate payment, ; or their notes and accounts will be placed in the hands of a proper officer for collection. S. C. DEBRUHL, Adm'r. i Sept, 3th, 1837. 36 Ranaway FROM the Subscriber on the third of July, 1837, a negro man of ordinary size, rather lwjht colored, he is known by the name of JURDONT- ? Has a burn on his thigh or near the knee, burnt when quite young, the hair is quite thin on the top of his head, nearly bald. The subscriber thinks he will make his way to Va. The subscriber will pay to any person or persons ten dollars, who may apprehend an4 lodge the said negro in any jail in the States of South Carolina. North Carolina, or Virginia WM. STACK. Sept. 15 37 Notice. ALL persons indebted to J. Black late merchant of Columbia, deceased, are requested to make ^payment without delay, and those to whom the es tate is indebted, are requested to render in their ac rtKrats forthwith legally attested. * ALEX. BRODIE, Administrator. TO RENT. Tile Store at the corner of Richardson street where the deceased formerly reaidetif and to be sold, the Stock of G$ods now on hand, at private sale to ap proved purchasers at a liberal credit, they giving bond and security for the payment thereof. Also to rent, the store adjoining Mr. John M'CuIly's, on Main street, with two rooms and celler attached. Also the large Store Room attached to the lot on which Dr. Ogier now has his Apothecary's Store Possession of the whole will be given by the first of October next. For terms apply to ALEXANDER BRODIE, Administrator. Sept. 15 37 Wanted. A MILLER or Sawyer to attend a Steam Saw Mill ; to an industrous, experienced and steady persoala liberal salary will be given. Apply to LOMAS <fe DAVIS. Steam Saw Mill near Columbia, Sept. 1st 35 6t Dentist's Instruments. THE subscriber has a splendid set of scaling and cleansing Instruments, with a complete set of Extracting Instruments, of the most approved form and highest finish, which he will disL ^e of at rea sonable terms. S. ^LANDING, Dec 13 53 tf Sale of Lands* Margaret Jordan, ) vs. r Bill for Partition. R. H. Jordan, et al. ; BY virtue of a decretal order of the Court of Equity made in the above case, the Commis sioner al the Court of Equity for Chester district will -sell at the Court House of said district on the first Monday in November next, the plantation belonging rto the estate of Dr- Uriah Jordan, decd'd. Said plantation contains seven hundred acres, five hundred of which are well timbered woodland, most of the remainder is under fence and fit for cultivation The plantation is situated in Chester district about three miles above the Cedar Shoals on Fishing Creek. Terms of sale : so much of th e purchase money as will satisfy the costs of sale, must oe paid on the day ?of sale, on the balance a credit of one, two and three years, will be given, with interest. The purchaser must give bond with approved per sonal security, and a mortgage of the premises to se cure the purchase money. Persons wishing to examine the land, are referred James Guthrie, Esq , residing near the premises. SAMUEL 3TALILLY, C. E. C. D. Commissioner's Office. ) Sept. 6. 1837. S 37 tds ZEBULON RUDULPH, Sen. offers for sale his Landed interest in South Carolina, of about 3700 acres, lying on the head of Little Saluda River ' and ifs tributaries, in Edgefield District. A seventh par: ot" which is under good fence, nearly the whole Land suited for cultivation, and susceptible of high impro\ ement- Besides the usual improvements of a Dwelling, Gin House, Cotton Screw, and all neces ,sary Out Buildings for a complete Establishment, rehire is a very superior Corn and and Flour Mill on J ?fee premises, now in complete repair, the dam of i ?which consists, in great part, of a solid rock, extending iiieariy across the nver, and the water in the pond is i never above the natural banks. A mile and a half j down, is another excellent mill seat, where a Saw Mill ' was -in successful operation a few years ago. The j place has a fine summer ranee for all kinds of Stock, j good Water, a high, healthy Residence near the road ; Reading from Edgefield Court House, via Lorrick's Ferry Cattle, Hogs, Sheep, Corn, Oats, Fodder and Cotton Seed, can be supplied to the purchaser, I if wished, and possession given about the 1st of Jan nary. An extensive credit can by given on the grea- ' ter pail of the purchase money. Address >fount ! Willing Post Office, Edgefield District, (S. C.) In formation can also be had of D- Ewart, Esq. Colum- j bia. Edgefield Distriet, Sept. \ 1837. 4t37 C>MMERCIAL BANK ? Checks for Sale, on Mobile, Alabama. March 4 9 Notice. rl hereby given that a petition wHI be presented to the Legislature at its next session, for a new Rood to rqa from the neighborhood of Sim's Mill, on Broad River, and intersect with the Union road at Faulk's Tavern, three miles from Union ville. A. WILSON, ii* ? ? v for~himself and neighbors 31 (By the Steam Packet Home.) LATEST FROM EUROPE. New York, Sept. 22. The Packet Ship Pennsylvania, Captain Smith, from Liverpool, whence she sailed on the 24th of August, arrived at one o'clock this morning, bringing us our tull files of Liver pool papers to that date; London files to the 23d, and Lloyd's List to the 23d. We make ?uch extracts as the lateness of the hour per mits, of course necessarily limited. The Liverpool Cotton market remained firm at previous quotations but with no advance in price. From the London Morning Post Aug. 23. It appears certain that Don Carlos has left the mountains above Cantaviega, and march ed towards Madrid, most probably by Cuenca. The Moniteur of Monday has the following telegraph despatches: ? " Nurboune . Aug. 29. 5 A.TVf. t4On the 14 th it was known at Valencia that the Pretender has passed through Alfambra, moving upon Madrid. Oraa occupied Ru bielosde Mora and Teruel, not having been able to prevent the insurgents under Sanz and Tallada from joining Don Carlos, with an ! immeans convoy. '?On the 17th at Barcelona, nothing was known of the movements of Baron de Meer. who had sanctioned the creation of the Cen tral Junta. The mobilisation of unmarried men and widowers between eighteen and for ty years of ege was suspended." 44 Bayonne , Aug. 20. " Espartero's troops entered Mardrid on the 13th. to the number of nine to ten thou sand men. The Carlist have retired towards Segovia. The General in Chief is shortly to march against them. k< Madrid is quiet. 44 Nothing new respecting the Pretender." Advices from Sarragossa of the 15th also confirm the Telegraph's statement of Charles the Fifth having proceeded through Alfambra and La Cella, where he was on the I2tfc to wards Albarracia, where various Chiefs had been sent for to Benevarre, Buerens was 9aid to have been ordered to approach Madried. ? With regard to the state of affairs in that cap ital and in its neighborhood the Journal Gen eral de Franre has accounts of the 14 th, which are rather at variance with those conveyed by the Bayonne telegraph. I affirms that at that period the Carlist occupied not only Segovia but also the heights of Guadarama, adding that Espartero had declared to the Queen that he would not march against them if the Cala trava Ministry continued at the head of affairs. The Generai, backed by the Moderate party, is represented by the same print as aiming at a dictatorship and a reaction, an allegation which the strange manner in which he has conducted his military operations is certain ly not calculated to disprove. There is no domestic news of interest in the Paris papers. One of them mentions the arrest of an individual from whose garments a pistol fell on Friday evening, just as Louis Philippe was leaving the Tuileries by the Point Royal gate, if but a half of the mur derous reports which have been circulated in the French capital for months past, the Citzen King's diadem is not an enviable one. The Marseilles papers concur in stating the cholera to have reappeared in that city, though with little intensity. Of its havoc in Sicily we perceive no recent tidings in the journal before us. On the 5th it continued to Subside at Naples, but we regret to find in the Augsburg Gazette a confirmation of a military conspiracy having been detected in that capital. According to our German con temporary, the plot which extended to the Neapolitan regiments quartered in and about Naples was discovered on the 3d. A number of non-commissioned officers almost all Sicil ans,who had received money from an unknown quarter, were immediately called to arms. It will be seen by our Paris correspondent's let ter, published elsewhere, that this intelligence, coupled with the rumoured advance of an Austrian force into the Neapolitan dominions, produced some effect upon the F rench Funds on Monday afternoon. Madrid , August 13th. ? Nothing of any importance has occured here since I wrote yes terday. The Queen's troops continue at Los Rozas, covering the road from the Escurial to Madrid. On arriving in the city last night, Esparte ro was introduced to the Queen by Senor Cal atrava. He was warmly greeted by the peo ple as he proceeded to the palace. This evening at five o'clock the infantry who have come with him are to enter Madrid, and ap pear before the palace. He is, I understand, to proceed immediately, with all the forces in the neighborhood of Madrid, in pursuit of the factious expedition. In three days the voluntary enlistment mentioned in my former letters has produced a body of 2,323 men, who are in progress of being drilled and equipped for service. The greatest spirit and enthusiasm prevails among the people. The only official account published in the Gazette of to-day, is a short notice from Men dez Vigo dated the 12th, from Las Rozas, in which he states that the rebels have retired to the Fonda do la Trinidad, having abandoned Torre Lodones, after plundering the village of all the property it contained. The Queen, Inspector General, and corporation, have sev erally addressed the National Guards on the firmness and fidelity displayed by them on the trying occasion. Germany. ? Frankfort , Aug. 14. ? The cholera is at Berlin, and a severe typhus at Warsaw. It was apprehended that the latter was the plague. Russia, it was said, was about to draw a sanitary cordon round Warsaw, and at Berlin every necessary step was taken to cut off communications between the frontier and Poland. At Dantzing the cholera is making terrible ravages. At Munich, they were also apprehensive of a fresh visitation of cholera. Whilst some of the French journals have accounts of partial actions with the Arabs on the road to Constantinaple, the correspon- ' dence of the Journal dcs des Debates from Bona, dated the 22d, says: "The expedition wili not take place ; this is now certain. The governor sets out to-day for Guelma, to have a tete-a-tete with Achmet Bay. The following draught of the proposed treaty is written in the Cabyle languages Achmet to be the supreme the vince of ConsfctfUiaW-TfleTre'" ociU$ lowed to circulate merely between the river Sey bouse and the mountains. The produc of the provinces shall be brought to Bona for sale. Achmet is to pay so many head of cattle, so much corn, <fcc. Achmet shall ex I ercise authority from Cape Hatifaux to Tabaca. The French will furnish him with power to chastise those who rebel against him." From the London Mercantile Journal of Aug. 22. General Improvement in the Markets. At length the time has arrived when the mar kets generally shew symptoms of solid im provement. In particular we may notice Cotton, Sugar, Coffee, Timber, Metals, j Oils, Silk and wool. True it is, that the season has far advanced, and much business for export cannot be expected to be done this year, yet still an extensive business may be calculated upon next ye$r. The foundation for such -business seems to be laid. An in clination generally exists amongst holders to be firm, and there is the appearance among speculators to invest. At present there is a great difference in discounts, some are done at three per cent, others at 8. This state of things can only last during times of great dis trust, such as we have recently gone through, and now it may be expected gradually and shortly to disappear. Without presumption, we think we can see an end to our present calamities. Time has at length brought us to this desirable event. It has been a matter anxiously wished and deligently sought after. Many have been the palpitations of hope and the pulsations of desire on this matter. The time has now arrived to put aside our mourn ing, still at the same time we wish to guard against an impression that we wish to encour age speculation. We are anxious that all parties who have invested capital in mercan dize should get remunerating prices. The stock of dealers must now be low, and conse quently we may expect that transactions will be very large. What we are most afraid of, is that our recent calamities will soon be forgotten and that iir the joy of returning prosperity no remedy against a recurrence of our late calamity will be desired. We shall not forget this, and if the mercantile world do, we will remind them of it. REMARKS OF MR. CALHOUN, On the BUI authorizing the issue of Treasury Notes. In Senate of the U. S. ) September 19, 1837. $ Mr. President ? An extraordinary course of events, with which all are too familiar to need recital, has separated in fact, the Gov ernment and the Banks. What relation shall they bear hereafter? Shall the Banks again be used as the fiscal agents of the govern ment ?? be the depositories of the public mo ney?? and above all, shall their notes be considered and treated as money, in the re ceipts and expenditures of the government . This is the great and leading question; oneot the first magnitude and full of eonaequeiiee*. I have given it my most anxious and delibe rate attention; and have come to the conclu sion that we have r cached the period when the interest of both the Government and the Banks forbids a re-union. I now purpose to offer ray reasons for this conclusion. 1 shall do it with that perfect frankness due to the subject, to the country, and to the position 1 occupy. All that I ask is, that I may he heard with a candor and fairness correspond ing to the sincerity with which I shall deliver my sentiments. . n , Those who support a re-umon of the Banks and the Government, have to overcome a pre liminary difficulty. They are now separated bv operation of law, and cannot be re-united while the present state of things continues, without repealing the law which has disjoint ed them. I ask, who is willing to propose its repeal? Is there any one, who during the suspension of specie payments, would advo cate their employment as the fiscal agents of the Government; who would make them the depositories of the public revenue, or who would receive and pay away their notes in 'the public dues? If there be none, then it results that the separation must continue for the present, and that the re-union must be the work of time, dependmg on the contin gency of the resumption of specie payments. But suppose this difficulty to be removed, and that the Banks were regularly redeeming their notes, from what party in this body can the proposition come, or by which can it be supported, for a re-union between them and the Government? Who, after what has hap pened, can advocate the re-union of the Gov ernment with the league of State Banks. Can the opposition, who for years have been denouncing it as the most dangerous instru ment of power and efficient means of corrupt ing and controlling the Government and coun try ? Can they, after the exact fulfilment of all their predictions of disastrous consequen oes from the connexion, now turn round and support that which they have so long and loudly condemned? We have heard muc from the opposite side, of untried experin*611 on "he currency. I concur in ^ - the censure. Nothing can be in(*e delicat than the currency. Nothing c*n be more delicately handled. Il 0US^ ?e? to be tampered with, nor touched, until it be comes absolutely necessary. But if untried experiments justly deserve censure, what con demnation would .<? repetition of an expen ment that has .ailed deserve? An "Pen nient that has so signally failed, both in th opinion of supporters and opponents ^^o call down the bitter denunciation of tho* ho tried it. If to make the experunent-sfojly the repetition would be m'1<Jnes^ h opposition cannot support the ir<;asure, no "L it be expected to recei* support from the friends of the adminis?-atl?n' hands the experiment ha- *> 81gna?y fa'led as to call down from t*m execrations deep a" I f!?Mr-' Preside^ there be any one point fully established experience and reason, I L" ?? -t to be *ie utter incompetency of the nanbs o furnish, of themselves, a sound fnTstfbk Agency. They may succeed in rosneroi* ^mes, ^ut ?rs.t a(*verse cur" ? ^issarily throws them into utter con rent ne ^as aDy device been found to Jjfivhem the necessary strength and stabili tr out a great centtal controlling bank, m ??vter fhe authority of this Govern ment. I go farther. If we must continue our connexion with the Banks ? if we must receive and pay away their notes as money, we not only have the right to regulate and give uniformity and stability to them, but we are bound to do so, and to use the most effi cient means for that purpose. The consti tution makes it our duty to lay and collect the taxes and duties uniformly throughout the Union, to fulfil which we are bound to give the highest possible equality of value through out every part of the country, to whatever medium it may be collected in; and if that be bank notes, to adopt the most effective means of accomplishing it, which experience has shown to be a Bank of the IJnited States. This has been long my opinion. I entertain ed it in 1816, and repeated it in my place here on (he deposite question in 1834. The only alternative, then, is, disguise it as you may, between a disconnexion, and a Bank, of the U: ited Stat es. This is the real issweto which aH must come, and ought now to be opetriy " and fairly met. But there are difficulties, in the way of a National Bank, no less formidable than a re connection with the State Banks. It is ut terly impracticable at present to establish one. There is reason to believe that a majo rity of the people of the United States are deliberately and unalterably opposed to it. At all events, there is a numerous, respecta ble, and powerful J)arty, who are, and ever have been, from the beginning of the Gov ernment, opposed to the Bank, and whose opinions thus long and firmly entertained, ought at least to be so much*respected as to forbid the creation of one without an amend ment to the constitution. To this must be added the insuperable difficulty, that the Ex ecutive branch of the Government is openly opposed to it, and pledged to interpose his veto, on constitutional grounds, shpuld a bill pass to incorporate one. F or four years at least, then, it will be impracticable to charter a Bank. What must be done in the mean time? Shall the Treasury be organized to perforin the functions, which have been re cently discharged by the Banks, or shall the State institutions be again employed until a Bank can be created? In the one case we shall have tlie so much villified and denoun ced sub-treasury, as it is called; and in the other, difficulties insurmountable would grow up against the establishment of a bank. Let the State institutions be once reinstated and re-united to the Government as their fis cal agents, and they will be found the first and most strenuous opponents of a National Bank, by which they would be overshadowed and curtailed in their profits. I hold it certain, that in prosperous times, when the State Banks are in full operation, it is impossible to establish a National Bank. Its creation, then, shoujd the reunion with the State Banks tak/e place, will be postponed until some disaster, similar to the present, shall again befall the country. But it requires lit tle of the spirit of prophecy to see, that such another disaster .would be the death of the whole system. Already it has had two pa ralytic strokes ? the third would prove fatal. But suppose these difficulties were over come, I would still be opposed to the incor poration of a Bank. So far from affording the relief, which many anticipate, it would ke the most disastrous measure that could ke adopted. As great as is the calamity un der which the country is suffering, it is noth ing to what would follow the creation of such an institution, under existing circumstances. In order to compel the State institutions to pay specie, the bank must have a capital as great, or nearly as great, in proportion to the existing institutions, as the late Bank had when established, to those of that day. This would give it an immense capital, not much less than one hundred millions of dollars, of which a large proportion, say twenty millions, must be specie. F rom what source is it to be derived? From the State Banks? It would empty their vaults, and leave them in the most helpless condition. From abroad, and England in particular; it would produce that revulsive current, which has lately cov ered the country with desolation. The tide is still running to Europe, and if forced back ky any artificial cause, before the foreign debt is paid, cannot but be followed by the most disastrous consequences. But suppose this difficulty overcome, and the Bank re-established, I ask what would be the effects under such circumstances? Where would it find room for business, commensu rate with its extended capital, without crush ing the State institutions, enfeebled by the withdrawal of their means in order to create the instrument of their oppression? A few of the more vigorous might survive; but the fer greater portion, with their debtors, credi tors and stockholders, would be involved in common ruin. The Bank would, indeed, give a specie currency, not by enabling the existing institutions to resume, but by des troying them and taking their place. Those who take a different view, and so fondly anticipate relief from a National Bank, areifleceTved, by a supposed analogy between the present situation of the country, and that of 1816, when the late Bank was chartered, afte*the war with Great Britain. I was an actor in that scene, and may be permitted to speak in relation to it with some little autho rity. Between the two periods there is little or no analogy. They stand almost in con j trast. In 1816, the Government was a debtor | to the banks, now it is a creditor; a difference of the greatest importance, as far as the pre sent question is concerned. The Banks had over issued it is true, but their over issues were to the Government; a solvent and able debtor, whose credit held by the banks in the shape of stock, was at par. It was their ex cessive issues to the Government on its stock, which mainly caused the suspension; in proof of which, it is a remarkable fact, that the de preciation of bank paper under gold and sil ver was about equal to the proportion which the Government stock held by the banks bore to their issues. It was this excess that hung on the market and depressed the value of their notes. The solution is easy. The banks took the Government stock payable in twelve years, and issued their notes for the same, payable on demand, in violation of the plainest principles of banking. It followed of course, that when their notes were presented for payment, they had nothing but Govern ment stock to meet them. But its stock was at par, and all the Banks had to do was to go into market with the stock they held, . and j take up their notes, and thus the excess j which hung upon the market and depressed i their value, would have been withdrawn from \ circulation, and the residue would have risen i to par, or nearly par with gold and silver, when ! specie payments might he easily resumed, i This they were unwilling to do. They were ! i profiting every way; by drawing interest on j j the stock; by discounting on it as capital, and j by its continued rise in the market. It be i came necessary to compel them to surrender | these advantages. Two methods presented | themselves; one a bankrupt law, the ether a j National Bank. I was opposed to the former, then, as am now. ? I regarded it as a harsh, unconstitutional measure? oppose^ to the rights of the States. If they have not sur rendered the rights to incorporate banks, as is conceded, its exercise cannpfcl>ei&wifrolled tyy the action of this Governmeat* wiiieh has no power, hut what. expressly granted, and no authority to control the States ia ifo -tx-' ercise of theTr reserved powers. It remained to resort to a National Bank, as the means of compulsion. It proved effectual. Specie payments were restored, but even with this striking advantage, it was followed by great pressure in 1818, 'I(J and '20, as all who are old enough to remember that period must recollect. Such in fact, must ever be the consequence of resumption, when forced un der the most favourable circumstances; and such accordingly it proved even in England with all her resources, and with all the cau tion she used in restoring asj?ecie circulation, after the long suspension of 1797. What then would be its effects in the present condi tion of the country, when the Government is a creditor, instead of a debtor, where there are so many newly created banks without es tablished credit; when the over issues are so great; and when so large a portion of the debtors are not in a condition to be coerced? As great is the tide of disaster which is pass ing over the land, it would be as nothing to wliat would follow were a National Bank to be established as the means of coercing specie payments. I am bound to speak without reserve on this important point. My opinion then is that, if it should be determined to compel the restoration of specie payments by the agency of banks, there is but one way, but to that I have insuperable objections : I mean the adoption of the Pennsylvania bank of the U. S. as the fiscal agent of the gov ernment. It is already in operation, and sus tained by great resources and powerful con nections, both at home and abroad. Through its agency specie payments might undoubt edly be restored, and that with far less disas ter than through a newly created bank : but not without severe pressure. I cannot, how ever, vote for such a measure: I cannot agree to give a preference, and such advantages to a bank of one of the members of the confed eracy, over that of others ? a bank dependant upon the will of a State, and subject to its influence and control. I cannot consent to confer such favors on the stockholder, many of whom, if rumor is to be trusted, are foreign capitalists, and without claim on the bounty of the government. But if all these, and many other objections were overcame, there is still one which I cannot surmount. There has been, as we all know, a conflict between one of the departments of the gov ernment and that instituaou, iu which, in my opinion, the department was the assailant ; but I cannot consent, after what has occurr ed, to give to the bank a triumph over the Government, for such its adoption as the fis cal agent of the Government would necessa rily be considered. It would degrade the Government iu the eyes of our citizens and of the world, and go far to make that bank the government itself. But if all these difficulties were overcomel there are others, to me, wholly insurmounta ble. I belong to the State Rights Party, which at all times, from the beginning of the government to this day, has been opposed to such an institution, as unconstitutional, in expedient, and dangerous. They have ever dreaded the union of the political and mo Died power; and the central action of the gov ernment, to which it so strongly tends; and at all times have strenuously resisted their junction. Time and experience have con firmed the truth of their principles; and this above all other periods is the one at which it would be most dangerous to depart from them. Acting on them, I have never given my countenance or support to a National Bank, but under a compulsion which I felt ot be imperious, and never without an open dec laration of my opinion as unfavourable to a bank. In supporting the bank of 1816, I openly declared that as a question de novo, I would be decidedly against the bank, and would be the last to give it my support. I also stated that in supporting the bank then, I yielded to the necessity of the case, growing but of the then existing and long establised connection between the Government and the banking, system. I took the ground even at that ear ly period, that sif long as the connection ex isted; so long as the "Government received and paid away bank notes, as money, they were bound to regulate their value; and had I no alternative but the establishment of a National Bank. I found the connection in existence and established before my time, and over which I could have no control. I yielded to the necessity in order to correct the disor dered state of the currency, which had fallen exclusively under the control of the States. 1 yielded to what I could not reverse, just as any member of the Senate now would, who might believe that Louisiana was unconsti tutionally admitted into the Union, but who would nevertheless, feel compelled to vote. to extend the laws to that State, as one of its members, on the ground that its admission was an act, whether constitutional or uncon stitutional, which he could not reverse. In 1834 I acted in conformity to the same principle, in proposing the renewal of the bank charter for a short period. My objett, as expressly avowed, was to use the bank to break the connexion between the Government and the banking system gradually , in order to avert the catastrophe which has now be fallen us, and which I then clearly perceived. But the connection which I believed to be irreversible in 1816, has now been broken by operation of law. It is now an open question. I feel myself free for the first time to choose my course on this important subject, and, in opposing a bauk, I act in conformity to prin ciples which 1 have entertained ever since 1 have fully investigated the subject. Hut my opposition to a reunion with the banks is not confined to objections limited to a National or State banks. It goes beyond, and comprehends others of a more general nature relating to the currency, which to me are decisive. I am of the impression that the connexion has a most pernicious influ ence over bank currency; that it tends to disturb that stability and uniformity of value which is essential to a sound currency, and is among the leading causes of that tendency to expansion and contraction, which experience has shown is incident to bank notes, as a cur rency. They are in my opinion, at best without the requisite qualities to constitute a currency even when -unconnected with the Government, and are doubly disqualified by reason of. that connection, which subjects them to-?udcten expansions aad-cqotraetions, and exposes them to fatal catastrophes, adfch as the present. I will explain my views> A. bank note cir culates not merely on accounts the credit of the institution by which it is iss&ed, bnt because GoveriAnent receives it like golct ujjd silver in all its dues, aud thus adds its own credit to that of the bank. It, in feet, virtu ally endorses on the note of every specie pay ing bank 44 receivable by Government iu its dues." To understand how greatly this adds to the circulation of bank notes, we must re member that Government is the great money dealer of the country, and the holder of immense public domains, and that it has the jMjwer of creating a demand against every citizen as high as it pleases, in the shape of a tax or duty, which can be discharged, as the law now is, ouly by bank notes or gold and silver. This, of course, cannot but add greatly to the credit of bank notes, and con tribute imjch to their circulation, though it may be difficult to determine with any pre cision to what extent. It certaiuly is veiy great. For why is it that an individual of the first credit, whose responsibility is so indispu table, that his friend of equal credit endorses his note for nothing, should put his name with his friends, being their joint credit, into a bank, and take out the notes of a bank, which is in fact but the crediX of the bank itself, and pays six per cent discount between the credit of himself and friend ar.d that pf the bank? The known and established credit of the bank may be one reasou, but there is another and powerful one. The Government treats the credit of the bank as gold and silver in all its transactions, and does not treat the credit of individuals in the same manner. To test the truth* let us reverse the case, and suppose the Government to treat the joint credit of the individuals as money, and not the credit of the bank, and is it not obvious that instead of borrowing from the bank and paying six per cent, discount, the bank would be glad to 1 borrow from them on the same terms. F rom, this we may perceive the powerful influence which bank circulation derives from the ?*&"? nection with the credit of the Government It follows as a necessary consequence, that to the extent of this influence, the issues of the banks expand and contiact with the. ex pansion aud contraction of the fiscal action of the Government; -with the increase of its duties, taxes, income and expenditure; with the deposites in its vaults acting as additional capital, and the amount of bank notes with drawn, in consequence, from circulation; all of which must directly affect the amount of their business and issues, and bank currency mnst of course partake of all those vibrations to which the fiscal action of the Government is necessarily exposed, and when great aud sudden, must expose the system to catastro phes, such as we now witness. In fact, a more suitable instance cannot be selected, to illustrate the truth of what I assert, than the present; as I shall proceed to show. To understand the causes which have led to the present state of things, we must go back to the year 1824, when the tariff system tri umphed in Congress ? a system which impos ed duties, not for the purpose of revenue, but to encourage the industry of one portion of the Union at the expense of the other. This was followed tijp by the act of 1828, which consummated the system. It raised the du ties so extravagantly, that out of an annual importation of sixty-four millions, thirty-two passed into the treasury: that is, the Gov ernment took one half for the liberty of intro ducing the other. Countless millions were thus poured into the treasury beyond the wants of the .Government, which became iu time the source of the most extravagant ex penditures. This vast increase of receipts and expenditures, was followed by a corres ponding expansion of the business of the banks. They had to discount and issue free ly to enable the merchants to pay their duty bonds, as well as to meet the vastly increased expenditures of the Government. Another effect followed the act of 1828, which gave a still farther expansion to the action of the banks, and which is worthy ol notice. It turned the exchange with England in favor of this country. That portion of the pro^ ceeds of our exports, which in consequence of the high duties, could no longer return with profit, in the usual articles, which we had been in the habit of receiving principally from that country in exchange for our ex |>orts, returned in gold and silver, in order to purchase similar articles at the north. This was the first cause, which gave that western direction to the precious metals, the revulsive return of which has been followed by so ma ny disasters. With the exchange in our fa vor, and consequently no demaud for gold aud silver abroad, and the vast demand for money attendant on au increase of the reve nue, almost every restrainst was removed on the-discounts and issues of the banks, espe cially in the northern section of the Union, where these causes principally operated. With their increase, wages and price of every description rose in proportion, followed of course by au increasing demand on the banks for furthes issues. This is the true cause of that expansion of the currency, which began about the commencement of the late admin istration; but which was. erroneously charged by it to the Bank of the United States. It rose out of the action of the Government. The bank in incseasing its business, acted in obedience to the condition of things at the time, and in conformity with the banks gene rally, in the same section. It was at this