Historical Newspapers of South Carolina

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. . rv v" ^ .i . politic altt ! Treasury Departmnt, ) .7 imp 12. 1841. > 1 7\> the President of the United States: i Sir: In obedience to the directions of i the Senate, contained in their resolution ( %. of the 7th instant, the Secretary of the J Treasury has prepared, and herewith submits, a plan of a Bjnk and Fiscal Agent. < In the general plan and fra-ite of said j institution, he has endeavored to free it from the constitutional objections which h have been urgedigainst tliose heretofore created by Congress, and as fur as prac- ; ticable, without impairing its usefulness. I to guard it in details against the abuses to < which such institutionsare liable. And he i now respectfully submits it to the Senate with the hope that, in the process of coij' tideration and enactment, it may become 1 what'he did not presume to promise, but ( which he earnestly desires to see in the ? possession of the nation, a Bank and Fis- I ?' * * r.n? <Vnm <?rinctitiiliminl olltec.. Crtl /Igcillf IICC liVIII J lions, and adapted to the wants of the e country and conveniences of the Government. ' - r It is proposed to incorporate a Bank in the District of Columbia by the name of r the Fiscal Bank of the United Slates, hav- n ing a capital of thirty million of dollars, r L - with power to establish branches or offices c of discount and depesite in the several < Stoles, with the nssent of the States; that 1 the Government subscribe one-fifth part of s the capital: and on the supposition that p it is the purpose of Congress licareafler to direct that ..the fourth instalment, appro- <| priated hv the deposite act of June 23d, s 1836. shall be paid into the treasuries of p the several Stales, it is also proposed that o a subscription to that amount be made in p the name of the United States, for the s use of the States respectively; the stock p to be assigned to, and become the proper- c ty of such States as shall acrept the same, | il in ifio nunnnp and in the nronortioos and | s subject to all the conditions provided and <> P imposed by the act. II And for 'he amount of the six millions i< to be subscribed by the United Stales on si rjjj& their own account, and also for the a- w mount to be subscribed for the use of the c . ieveral States, it is proposed that a stock lie cl created, bearing an interest of five per cent tt per annum, redeemable at the pleasure of s< the Government at any time after fifteen di years. e: In case Congress should not see fit to make such a provision as is proposed for p paying to the States the fourth instalment b under the deposile act, it may be well worth while to consider whether the States ti might be permitted to take the slock of ], the Bank according to their respective a-. y mount of population, to the extent of ten millions in all, issuing therefor slock of C their own, bearing such interest, and re- t< itnbttrsable at such periods, as might be prescribed; the dividends on the shares e thus held by the States, respectively, to q be applied, in the first place to the pay- tl roenl of the interest on their stocks; with c a further provision, if thought necessary, n that in case the proceeds of the public k lands should be assigned to the Slates, r those proceeds should he applied to the reimbursemnl of the principal of their debts, or stocks, created or issued for the ?r. :.i jjui aiwi rsam. In the opinion of the Secretary, it is desirable that the States should he permitted to take an interest in one of the foregoing modes, or some other mode, in the t new institution, but, if Congress should t think otherwise, then it is recommended d . that the Government of the United States n subscribe for ten million* of stock, leaving ! a twenty to be subscribed by individuals. j I It is proposed that the affairs of the j li Bank be managed hv seven directors, two f of them to be appointed by the President, | by and with the advice and consent of the j Senate, and five to be elected bv the stock- j: holders, at their annual meeting. A presi- j dent to be chosen by the directors out of T their own body. I That the branches be managed by not I more than seven, nor less than five direc- t tors, two of them to be appointed by the ; f States in which the branches may be situa- t ted, if such State be a Stockholder, and t the rest to be appointed by the directors of the bank. C Itis proposed that the. Bank be the fiscnl t agent of the Government. That the pub- e Jic moneys be deposited in it; and when11 there, that they be deemed and taken to g be in the Treasury of the United Slates,1] and that .the dtp -sites be not removed ex-1 a . V ^ cept by !aw% and thai the notes of the said r ; -Bank be receivable in the payment of pub- f lie dues, and.that payments made by tliejc Treasurer of the United States may be by i i checks on said Bank. ;( That the said Bank receive the funds of j the United States; (fiat it transmit them i from one part of the Union to another, 1 and distribute them for the payment of | ; public creditors, anil perform the duly * of pension agent free of charge. ? The ordinary powers and privileges of 'linking institutions being conferred upon 8 it and the ordinary liabilities and duties t imposed in order to prevent over banking, t excessive issues, fluctuations in the price t of slocks, ami .consequent speculations ( therein and to secure the bill holders and 1 other creditors of the Bank from danger ? of loss, it is proposed? ( To limit the dividends to six per cent, i per annum, but if they full short in any \ year, the deficiency; with interest thereon; ? - 7 to be afterwards ntade^gnpd and when ;> f surplus accumulates, exceeding two mil- I lions, the excess to he passed to the crt-ditjof the Treasurer of the United States, i That the amount of debts which it mav ' ; < j it any time 6we, shall not exceed twenty millions over and above its deposits.? r11at the debts at any time due to the bank shall not exceed the amount of its capital and seventy-five per cpnt. thereon; and that when the amount of its bills in circulation shall exceed three limes the amount of specie in its vaults, no new loans shall be made. That it shall not deal in any thing ex:ept coin, bullion, promissory notes, and inland hills of exchange. That it shall lake no more than six per rent, upon loans. Thai it shall discount no promisory note Mid purchase no bill of exchange which las more than one hundred and eighty lays to run, or make any loan for a longer inie. That no debt shall be renewed. That it shall not at any time loan the United Slates more than three millions of iollars. nor any Slate more than 100,000 lollars, either for a longer time than one Kindred days unless authorized by law. That it shall contract no <T&t for a Jongir time than one year. That it shall issue no note of a less demraination than ten dollars. That the officers of the institution shall ml be permitted to borrow money from, r contract any debt therein, in any manler whatever: a note or bill of which such iflicer, is maker, drawer, endorser or aceptor, is forbidden to be discounted.? The directors of the branches not to be conidered oflicers within the meaning of this irovision. To prevent or expose any fraud or iniscrelion in the management of the inlitlltion; to prevent. also, large and imroper loans to individuals, to the injury f the stockholders and the public, and to revent likewise, false imputations when iich irregularities do not exist, it is proosed that (he books of the institution inloding the accounts .of all individuals l?? nt all times nnened to the in rl V,'M "' M* "" - I flection nf the Secretary of* the Treasury f the Unite.!; to a committee of either louse ot Congress; to each of the directs of the Hank, anil to a committee of the ocklioldcrs, with power to make public hatsoever they think fit. It is proposed to provide llt.it the branlies shall not issue notes or bills adapted ? and intended for, circulation; but may ;ll drafts, not less in amount than fifty nllars, for the purpose of transmission and (change. That the Bank shall not suspend specie, ayinent; that it shall not pay out any thing ut coin or bullion or its own notes. That its existence as a corporation connue for twenty years?but tlint it he slaved to use its corporate name for two ears longer in settleing up its affairs. That no other bank be established by longress during the existence of the chari r. And providing that it shall not be deem* * ** * ? * ^ uriiM Inrroc rr *???f_ (i an iniringenieui. ?'i m<-^ d by the charter, if Congess shall order lie said corporation to place offices of disount and dcposiie wherever the same lay he necessary for the rollection, safeecpihg, and disbursement of the public e venue. All which is respectfully submitted. T. EVV1NG, Secretary of the Treasury From the Brother Jonathan. McLEOD CORRESPONDENCE. Among the documents accompanying lie President's Message to Congress, are he Letter of Mr. Fox to Mr. Webster, emanding, in the name of his govern lent, the immediate release of McLeod; nil the answer of the Secretary of Stale, 'he British Minister's Letter states that lis movements in the premises have been ully approved by his government, and re eats the oft-repeated argument that dcLeod cannot be held personally resmnsible fot the acts of his government. Her Majesty's Uovernment ^says .tit. ??x) cannot admit for a moment the vaidity of the doctrine advanced by Mr. f'orsyth, that the Federal Government of he United Slates has no power to inter* ere in the matter in question, and that the Iccision thereof must rest solely and eniVely with the State of New York. With the particulars of the internal :ompart which may exist between the se* 'eral states that compose the Union, lor ign Powers have nothing to do; the realions of foreign Powers are with the ag;rugate Union; that Union is to them re* iresenltd by the Federal Government; tod of that Union the Federal Governnenl is 10 them the only organ. Thereore, when a foreign power has redress to lemand for a wrong done to it by any state of the Union, it is to the Federal lovernment, and not to the Separate stste, that such power must look for reIress for that wrong. And such foreign ?owcr cannot admit the plea that the se>araie Slate is an independent body over vhich the Federal Government has no loulrol. It is obvious that such a doctrine, if idmitted', would at once go to a dissolu. ion of the Union as fur as its relations vith foreign Powers are concerned; and hat foreign Powers, in such case, instead >f accrediting diplomatic agents to the federal Government, would send such [gents not to that Government, but to the iiiverurnent of each separate Slate; and vouM make their relations of peace and var with each State depend upon the remit of their separate intercourse with such State, without reference t<? the relations hev uiiL'hl have "with the rest; Iler Majesty's Government formally demands through iIs minister, the release of McLeod. The minister then proceeds to . 'V% ' " ,'i %" w ' V :yv.. a - vv. 'jpv . - '."J-. jiA v ' ''-'- W1- Tm ' '?C: . > ' I . - 'W/. ~ '< say that there are the strongest reasons t believe that McLeod was not concerns < in that affair; and that though the circum stances makes no difference in the puliti cal and international question at issue the Government of the United Slate . must not disguise from themselves th 1 fact that Mr. McLeod was not engaged i the transaction must necessarily tern greatly to inflame that national resent I mpnt which any harm that shall be suffer ed by Mr McLeod at the hands of th ' authorities of the State of New York wil - - - ti infallibly excite throughout the wnoie o the British Empire. In his reply, after recapitulating th contents of Mr. Fox's lett'-r, Mr. Web sler says that the President is not certaii that ht understands precisely , the mean ing intended by Her Majesty's Govern tnpntto be conveyed by the foregoing in slruction. This doubt has occasioned with the Pre sidrnt 6nme hesitation, but he inclined t< take it for granted that the main ptirpos of instruction was to cause it l:> be sig nified to the government of the Unitei States that the at tick on the stearnbos ' Caroline" was an act of public force done by the British colonial authorities and finally recognized by the Queen'i Government at home, and that conse quently no individual concerned in lha transaction can, according to the jus principles of nations, he held personam answerable in the ordinary courts of lav as for a private "offence; and that upor this avowal of her Majesty's Government Alexander McLend, now imprisoned 01 an indictment for murder alleged to havi been committed in that attack, ought to b( released by such proceedings as are usuu and are suitnble to the case. Mr. Webster next proceeds to saj\ ii substance, that persons held in the Unit ed Stales under judicial process, can, n: in England, only he released by jutlicia process?by a nolle prosqui, on examin alion of the charge under a writ of habea; corpus. The Secretary does not supposi that in England the Eexcuiive could in< terferc in any more direct manner. Aftei alluding to the civil suit, [withdrawn sinc< the date of this leltei,] the Secretary pro c.eeds to say, "If, therefore, any course different from ^uch as have heen now men tinned was in contemplation of Her Ma jesty's Government, something wonlc seem to have been expected from th? Government of the United States as little conformable to the laws and usages of th< English Government as to those of tlx United Stales, and to which this Gov eminent cannot accede." The Government of the United States therefore, acting upon the presumptior which it already adopted, that nothing ex trnordinary or unusual was expected 01 e . ? I _ .1 a | requested 01 11, ucciueo, ?m me rercp lion of Mr. Fox's note, to take such mcaI sores as the occasion and its own duty appeared to require. The American gov. ernment entertains no doubt that after the avowal of an act by a government, individtinl^ate no longer responsible. And the President presumes that itgcan hardly be necessary to say that llnr American People, not distrustful of their ability tc redress public wrongs by publjc means cannot desire the punishment of individuals when the act complained of is declared to have been an act of the Goveriv ment itself. * . Soon after the date of Mr. Fox's note an instruction was given to the Attorney General of the United Slates from this Department, by direction of the Presi dent, which fully seis/orth the opthinns o this Government on the subject" of Mr McLeod's imprisonment, a copy of whicl instructions the Secretary encloses in hii letter. Altera history of the legal proceeding! in the case, alieady I nown to the reader the Secretary proceeds to pay a high en comium on the Supreme Court of th< O. . C NT I .1 oiuiKiii new iutk, ?iii11 iiirn oaja. " The undersigned has now to signify to l\Ir. Fox that the Government of tht United States has not changed the opinioi which it has heretofore expressed to Hei Majesty's Government, of tire charac'e of the act of destroying the "Caroline." The Government of the United Statci does not think ihat the Caroline affair cat he justified by any reasonable applicatioi 'of lite right of self-defence under the law of nations. But not having been advisee if the reasons under which the British Government considers the attack jusiifia ble, the Secretary earnestly renewing the remonstrance of this Government agains the transaction, abstains, for the present from any extended discussion of tlx question. After alluding to the term " permitted,' used by Mr. Fox, in reference to the or ganization of force in the United States saying that the President is willing to be lieve no intimation is intended that the United States Government afforded any countenance to the acts of the patriots the Secretary proceeds to remark tha upon a line of frontier long enough to di vide the whole of Europe into halves that irregularities, violences, and conflicts should sometimes occur, equally against the will of both Governments, is certain ly easily to be supposed. This may be mor< possible, perhaps, in regard to the Uniter J State's, without any reproach to theii i f*r?vf?rnmpni- Kirtrp Ihpin insiitiltittns pn. tirely discourage ihe keeping up of largi standing armies in tlie time of peace, am their sitnaiion happily exempts them frorr the necessity of maintaining such expensive and dangerous establishments. This Gov eminent acknowledges no delinquency ii the performance of its.duties. The letter takes exception against the ^ jr: , "v ' " ; ; ' v 0 term " pirates," as applied to the Amerid can volunteers, and says that though they were already violating the laws of their - country, they were certainly not pirates, nor does the.undersigned think^thaf it can s advance the purpose of a friendly disf cussion, or hasten the accommodation of n national difficulties/so to'denominale them, d Their offence, whatever it was, had no - analogy to cases of piracy. The fact that - for the last two centuries subjects of the e British crown have been permitted to en1 gage in foreign wars, and the recruiting f of whole regimentsfor the Spanish service, openly in England is forcibly alluded to; e and yet it has not been imagined that Eng. - land.at any time allowed her subjects to ii (urn pirates. The Government of the United States i- has not, front the first, fallen into doubts, - elsewhere entertained, of the true extent of the duties of neutrality. It has held - that, however it m.iv have been in less Q enlightened ages, the just interpretation a of the modern law ol nations is, that - neutral states are hound to be strictly neu1 tral; and that it is a manifest and gross t impropriety for individuals to engage in , the civil conflicts of other states, and thus i, to be at war, while their Government is s peace. "War ami peace are high national - relations, which can properly be establisht ed or changed only' by nations themt selves. r After quoting instances from the whole v history of the republic, to show the sint eerily with which the United States have i carried out the principle above stated, the i letter of Mr. Webster thus concludes: J Under these circumstances, and under * those immediately connected with the I transaction itself, it will be for Her Ma, jesty's Government to show ,up0n,-.what i stale of facts and tfltat rolesrof national - law the ile<f ruction nf thtr'-'VCarolilie" T ~ ~ "" ' i is lo be defended. It will be for thal:Gov1 ernment to show a< necessity "of s?-If-de fence, instant, overwhelming, leaving no ? choice of means and no moment for deli1 beralion. It will be for it to show, also, that the local authorities of Canada, even r supposing the necessity of the moment 2 authorized them to enter the territories of - the United Stales at all, did nothing un2 reasonable or excessive; since the act justified by the necessity of self-defence, - most he limited by that necessity, and 1 kept clearlywilliin it. 2 It must be shown that admonition or ? remonstrance to the persons on board the J ' Caroline," was impracticable, or would 2 have been unavailing; it must have shown. that day-light could not be waited for; that there could bono attempt at discrimin? ation between the innocent and the guilty; > that it would not have been enough to | seize and detain the vessel?but that there r was a necessity, present and inevitable, for attarking her, in the darkness of the night, while moored to the shore, and ' while unarmed men were asleep on board; : killing some and wounding others, and 21 then drawing her into the current, above ;the cataract, setting her on fite, and, I! careless lo know whether there might not ' | be in her the innocent with the guilty, or > | the living with the dead, committed her to ?! a fate which fills the imagination with hor 11 ror, a necessity for all this Government of the United Stales cannot believe to have existed. All will see that if such things be allowed to occur, they might lead to a bloody and exasperated war; and when an* individual comes into the United States from Canada, and to the very place on which (his drama was performed, and there chooses to make public and vain glorious boasts of the part he acted in it, it is hardly wonderful that great excitement should be created, and some commotion arise. This Republic does not wish to disturb the tianquility of the world. Its object is peace, its policy peace. It seeks no aggrandizement bv foreign conquest, because it knows that no foreign acquisition could augment its power and importance so rnpitlly as they are already advancing I by its >wn natural growth tinder the propitious circumstances of its situation. But it cannot admit that its Government has not both the will and the power to preserve its own neuirility, and to enforce the observance of itsown laws upon its own citizens, it is jealous of its rights, j and among others, and most especially, of i the right of the absolute immunity of its 1 territory against aggression from abroad; ) and these rights it is the duty, and the dp.tprminntion of this Government fullv ' j and at nil times to'maintain; while it will', t at the same time, as scrupulously refrain . from infringing on the rights of others. 5 The "resident instructs the undersign( cd to say, in conclusion, that he confidently trusts that this and all other ques*j tions of difference between the tiyo Govi ernments will he treated by both in the full exercise of such a spirit of candor, ! justice, and mutual respect as shall give assurance of the long continuance of ' peace between the two countries. 1 The undersigned avails himsdf of this opportunity to assure Mr. Fox of his 5 high consideration. 5 DANIEL WEBSTER. , Henry S. Fox, Esq., &. &c. &c. ! These letters are dated, Mr. Fox's on i the 12ih March, and Mr. Webster's on r the 24th of April. The circumstances - which delayed the answer are too well - known to be here repeated. We have I endeavored to present an abstract, emboi dying all the material points; and have gi* ven to the subject all the space which could . possibly be spared. i It is creditable to the Secretary, and worthy of j the dignity of the Government, that Air. vreDBiori t' makes no reply whatever to Mr- Foa'a childish re- j .tf - *sr * .pi,, c . v'^&r ' ' * : -v ' .' ' - M . >>1 -'"U>;:5a>^ > *-' r'4-v; - *..^, uij I marks raktive to the internal,compact between (be several States and the Federal Government. . ... . / ': MR. CRITTENDEN'S INSTRUCTIONS. In Mr. W ebstePa letter to' Mr. Fox he^j^rsf-^m. structions which had been given to the U. S. Attorney GeneraL We subjoin. some extracts, wishing. to place all the most importani portions of the dt\J~ _ " cumentary history of the hffiur before oor-rcaders; as tho business may, at some da1', prove a matter '-j.. . of national moment: ' " ; There is, therefore, now, an authentic, vdeclaration on the part of the.. British, A Government that the attack on the Caroline was an act .of public force, done fcf A military men, under the orders ol theirsuperiors, an'd'is recognized hs siclr under the Queen's Government. The'im-' . portance of this declaration is not-to"t>e;.' ^ doubted, and the President is ol opinion that it calls upon him for the performance of a high duty. . That an individual forming pari 0'a pufc. lie force, and acting umler the authority: of his Government, is not to he held answerable, as a private trespasser or factor, is a principle of public law, sanctioned by the usages oi all civilized- ha?- ' tions, and which the Gvernmeni of States has no inclination to dispute. ThU hag no connection whatever with the queslion whether, in this case, the altacK. the Caroline was as the British Govern- ^ ment think it, a justifiable employment of -? force for the purpose, of defending the ' British territory from unprovoked attack,' or whether it was a most unjustifiable fa-^ vasionin lime of peace of the territory of the United States, as (his Government Ifas' regarded it. ' . ' Ail'that is intended to be said, at presnt, is, that since the attack of the CaroHoft*. ' is avowed as a national act which may- ' justify reprisals, or even general war, if the Government of the United -States, ill the judgement which it.shall form of-ttfer ?3 transaction, and of its own duty, -shouftt?*V- 'rf% see fit to decide, yet thal.it raises a qtteiW; tion entirely public and political, a ques.;^ lion between independent nations, . and ' that individuals concerned in it cannot bo x ariested and tried before the ordinary' Jr't*./ ' btir.als, as for the violation of munic>R^i|^?S law. If the attack on the Caroline was: > unjustifiable, as this Governmeb^iia^.as^^P serted, the law which has been violated 13 the law of nations, a^ d the retlrVss \v|i|[chis to be sought is the redress authorized 'ttk? ' such cases by the provisions of thait'eodfe^ The two questions are essentiaH^ different; andr while acknowledging that " an individual may claim immunity from^tbftf^ . J" consequences of acts done by bim, . bjM" : showing that he acted under national .ail- , thority; this Government.is not to be tfhV derstood as charging the opiniorii wiut:i^> it has heretofore expessed in regard tollMj aeal nature of the trrnsaction "which , re.* suited in the destruction _of the Carqjinfc". Tlict subject is not necessary for any/tyer*:" posp connected with tin's communicatropi to discuss. The "views", of this- GovefrnV mcnt in relation to it are known to that of . England; and w.e are expecting the answer <>t mat tiove^jment to iiie cjrnmumcatftra which has beew made to it. After stating that lite President Kas >io ? -A power to a Crest the proceeding^! the'eU * vil and criminal courts of New York, and" that, were the case.pendt ing in one of the LJ. S. Courts,.3 ndife prosequi would have been enieredlm-t, mediately'on the receipt of Mr. Foi'S; ' ; lettpr, the Secretary proceeds to^ say that the Governor of the Stale ol^New-York cannot interfere in a civil suit. These^O" structions, hnwevwL are dated March 16, . ? since which time Ira reader is aware, the civil suit has been discontinued. The in-, structions are as follows: Yon will he furnished with a enpyr of this instruction for the use of thei?xeculive of New York amVlhe A It orney General of that State. Yoii tyill carry with you also authentic, evidence of-the Ffctcgniilon by the Britti?h Govei nmcnt-of the destruction of the Caroline as Bn nrti nf-pubH^ force done by national authority. 1 The president is impressed wltVfWOprt* *\y of transfering the trial from the scehe "!. of the principal excitement to.snme other . ^ and distant county;:You wrU take care that this be suggested to the prisoner's ^ counsel. The President is grajifiedN-td. learn tliat the Governor of New .York 1 , , j .... ... ' > -1 ! nns aireaay gireciea tnat we inar. snal| 3 lake place before the Cbeif Justice of lira State. g Having consulted with the Goveflor, % you will proceed to Lock port, or wherever else the trial may be hold'en, and furnish the prisoner^ counsel with th'e^evi^ dence of which you will be in* posessioa material t<? his defence. ^YoioWilVsee that ^ he h ive skilful and., eminent. counsel if ^ such he not already retained; and, though ' Jj vott are not desired to act as council yourself, you will cause-it to signify tii~him,. - ( and to the gentlemen who may conduct . -4't his defence; that it is the wish of this Go vernment. that in case his defence be overruled in the court in which he shall be' taken immediately for removing the cause, . I by writ of error, to the Supreme Court of - .^jn| the United States. The President hopes you will nse.sueh v "3 despatch as to make your arrival at the; I S place of trial sure before the trial --come* ? on; and he trusts you will keep him in- Jj formed of whatever occurs by- meane.ofa.;' I corrt^piMnimtje inrougn mis i/epartment." . i I have the honor to be, Mr: Attorney / ; I General, your obedient fervant, " 'i iS DANIEL WEBSTER. "* 1 Hon. John J. Crittenden, Attorney/ General of the United States. jjj^ From these documents it appears that whatever may be the decision "( the Su- \? P re m e C <ni r t o f t h i s S ta te, it may no t bje J final: Either party mayVcflirry the eaaa^ Jjjl - - .J\ * I ,1v