Buch lesen: «Thirty Years' View (Vol. I of 2)», Seite 85

The case of the western branches was next adverted to by Mr. B. Among these, he said, the business of exchange was broken up in toto. The five western branches were forbid to purchase exchange at all; and this tyrannical order was not even veiled with the pretext of an excuse. Upon the North Atlantic cities, Mr. B. said, unlimited authority to all the branches was given to purchase bills, all at short dates, under ninety days; and all intended to become due during the shipping season, and to increase the demand for money while the curtailment was going on, and the screw turning from day to day to lessen the capacity of getting money, and make it more scarce as the demand for it became urgent. Thus were the great commercial cities, New Orleans, New-York, Baltimore, and Philadelphia, subject to a double process of oppression; and that at the precise season of purchasing and shipping crops, so as to make their distress recoil upon the planters and farmers; and all this upon the pretext of new measures understood to be in contemplation. Time again becomes material, said Mr. B. The bank pressure was arranged in January, to reach its climax in March and the first of April; the debate in the Senate for the condemnation of President Jackson, which commenced in the last days of December, was protracted over the whole period of the bank pressure, and reached its consummation at the same time; namely, the 28th day of March. The two movements covered the same period of time, reached their conclusions together, and co-operated in the effect to be produced; and during the three months of this double movement, the Senate chamber resounded daily with the cry that the tyranny and vengeance of the President, and his violation of laws and constitution, had created the whole distress, and struck the nation from a state of Arcadian felicity – from a condition of unparalleled prosperity – to the lowest depth of misery and ruin. And here Mr. B. obtested and besought the Senate to consider the indifference with which the bank treated its friends in the Senate, and the sorrowful contradiction in which they were left to be caught. In the Senate, and all over the country, the friends of the bank were allowed to go on with the old tune, and run upon the wrong scent, of removal of the deposits creating all the distress; while, in the two-and-twenty circular letters dispatched to create this distress, it was not the old measure alone, but the new measures contemplated, which constituted the pretext for this very same distress. Thus, the bank stood upon one pretext, and its friends stood upon another; and for this mortifying contradiction, in which all its friends have become exposed to see their mournful speeches exploded by the bank itself, a just indignation ought now to be felt by all the friends of the bank, who were laying the distress to the removal of the deposits, and daily crying out that nothing could relieve the country but the restoration of the deposits, or the recharter of the bank; while the bank itself was writing to its branches that it was the new measures understood to be in contemplation that was occasioning all the mischief. Mr. B. would close this head with a remark which ought to excite reflections which should never die away; which should be remembered as long as national banks existed, or asked for existence. It was this: That here was a proved case of a national bank availing itself of its organization, and of its power, to send secret orders, upon a false pretext, to every part of the Union, to create distress and panic for the purpose of accomplishing an object of its own; and then publicly and calumniously charging all this mischief on the act of the President for the removal of the deposits. This recollection should warn the country against ever permitting another national bank to repeat a crime of such frightful immorality, and such enormous injury to the business and property of the people. Mr. B. expressed his profound regret that the report of the bank committee was silent upon these dreadful enormities, while so elaborate upon trifles in favor of the bank. He was indignant at the mischief done to private property; the fall in the price of staples, of stocks, and of all real and personal estate; at the ruin of many merchants, and the injury of many citizens, which took place during this hideous season of panic and pressure. He was indignant at the bank for creating it, and still more for its criminal audacity in charging its own conduct upon the President; and he was mortified, profoundly mortified, that all this should have escaped the attention of the Finance Committee, and enabled them to make a report of which the bank, in its official organ, declares itself to be justly proud; which it now has undergoing the usual process of diffusion through the publication of supplemental gazettes; which it openly avers would have insured the recharter if it had come out in time; and to which it now looks for such recharter as soon as President Jackson retires, and the country can be thrown into confusion by the distractions of a presidential election.

Mr. B. now took up another head of evidence to prove the fact that the curtailment and exchange regulations of January were political and revolutionary, and connected with the proceedings of the Senate for the condemnation of the President; and here he would proceed upon evidence drawn from the bank itself. Mr. B. then read extracts from Mr. Biddle's letters of instructions (January 30, 1834) to Joseph Johnson, Esquire, president of the branch bank at Charleston, South Carolina. They were as follows: "With a view to meet the coming crisis in the banking concerns of the country, and especially to provide against new measures of hostility understood to be in contemplation by the executive officers at Washington, a general reduction has been ordered at the several offices, and I have now to ask your particular attention to accomplish it." * * * * "It is as disagreeable to us as it can be to yourselves to impose any restrictions upon the business of the office. But you are perfectly aware of the effort which has been making for some time to prostrate the bank, to which this new measure to which I have alluded will soon be added, unless the projectors become alarmed at it. On the defeat of these attempts to destroy the bank depends, in our deliberate judgment, not merely the pecuniary interests, but the whole free institutions of our country; and our determination is, by even a temporary sacrifice of profit, to place the bank entirety beyond the reach of those who meditate its destruction."

Mr. B. would invoke the deepest attention to this letter. The passages which he had read were not in the circulars addressed at the same time to the other branches. It was confined to this letter, with something similar in one more which he would presently read. The coming crisis in the banking concerns of the country is here shadowed forth, and secretly foretold, three months before it happened; and with good reason, for the prophet of the evil was to assist in fulfilling his prophecy. With this secret prediction, made in January, is to be connected the public predictions contemporaneously made on this floor, and continued till April, when the explosion of some banks in this district was proclaimed as the commencement of the general ruin which was to involve all local banks, and especially the whole safety-fund list of banks, in one universal catastrophe. The Senate would remember all this, and spare him repetitions which must now be heard with pain, though uttered with satisfaction a few months ago. The whole free institutions of our country was the next phrase in the letter to which Mr. B. called attention. He said that in this phrase the political designs of the bank stood revealed; and he averred that this language was identical with that used upon this floor. Here, then, is the secret order of the bank, avowing that the whole free institutions of the country are taken into its holy keeping; and that it was determined to submit to a temporary sacrifice of profit in sustaining the bank, which itself sustains the whole free institutions of the country! What insolence! What audacity! But, said Mr. B., what is here meant by free institutions, was the elections! and the true meaning of Mr. Biddle's letter is, that the bank meant to submit to temporary sacrifices of money to carry the elections, and put down the Jackson administration. No other meaning can be put upon the words; and if there could, there is further proof in reserve to nail the infamous and wicked design upon the bank. Another passage in this letter, Mr. B. would point out, and then proceed to a new piece of evidence. It was the passage which said this new measure will soon be added, unless the projectors become alarmed at it. Now, said Mr. B., take this as you please; either that the projectors did, or did not, become alarmed at their new measure; the fact is clear that no new measure was put in force, and that the bank, in proceeding to act upon that assumption, was inventing and fabricating a pretext to justify the scourge which it was meditating against the country. Dates are here material, said Mr. B. The first letters, founded on these new measures, were dated the 21st of January; and spoke of them as being understood to be in contemplation. This letter to Mr. Johnson, which speaks hypothetically, is dated the 30th of January, being eight days later; in which time the bank had doubtless heard that its understanding about what was in contemplation was all false; and to cover its retreat from having sent a falsehood to two-and-twenty branches, it gives notice that the new measures which were the alleged pretext of panic and pressure upon the country were not to take place, because the projectors had got alarmed. The beautiful idea of the projectors – that is to say, General Jackson, for he is the person intended – becoming alarmed at interdicting the reception of illegal drafts at the treasury, is conjured up as a salvo for the honor of the bank, in making two-and-twenty instances of false assertion. But the panic and pressure orders are not countermanded. They are to go on, although the projectors do become alarmed, and although the new measure be dropped.

Mr. B. had an extract from a second letter to read upon this subject. It was to the president of the New Orleans branch, Mr. W. W. Montgomery, and dated Bank of the United States the 24th of January. He read the extract: "The state of things here is very gloomy; and, unless Congress takes some decided step to prevent the progress of the troubles, they may soon outgrow our control. Thus circumstanced, our first duty is, to the institution, to preserve it from all danger; and we are therefore anxious, for a short time at least, to keep our business within manageable limits, and to make some sacrifice of property to entire security. It is a moment of great interest, and exposed to sudden changes in public affairs, which may induce the bank to conform its policy to them; of these dangers, should any occur, you will have early advice." When he had read this extract, Mr. B. proceeded to comment upon it; almost every word of it being pregnant with political and revolutionary meaning of the plainest import. The whole extract, he said, was the language of a politician, not of a banker, and looked to political events to which the bank intended to conform its policy. In this way, he commented successively upon the gloomy state of things at the bank (for the letter is dated in the bank), and the troubles which were to outgrow their control, unless Congress took some decided step. These troubles, Mr. B. said, could not be the dangers to the bank; for the bank had taken entire care of itself in the two-and-twenty orders which it had sent out to curtail loans and break up exchanges. Every one of these orders announced the power of the bank, and the determination of the bank, to take care of itself. Troubles outgrow our control! What insolence! When the bank itself, and its confederates, were the creators and fomenters of all these troubles, the progress of which it affected to deplore. The next words – moment of great interest, exposed to sudden changes in public affairs, induce the bank to conform its policy to them – Mr. B. said, were too flagrant and too barefaced for comment. They were equivalent to an open declaration that a revolution was momently expected, in which Jackson's administration would be overthrown, and the friends of the bank brought into power; and, as soon as that happened, the bank would inform its branches of it; and would then conform its policy to this revolution, and relieve the country from the distress which it was then inflicting upon it. Sir, said Mr. B., addressing the Vice-President, thirty years ago, the prophetic vision of Mr. Jefferson foresaw this crisis; thirty years ago, he said that this bank was an enemy to our form of government; that, by its ramification and power, and by seizing on a critical moment in our affairs, it could upset the government! And this is what it would have done last winter, had it not been for one man! one man! one single man! with whom God had vouchsafed to favor our America in that hour of her greatest trial. That one man stood a sole obstacle to the dread career of the bank; stood for six months as the rampart which defended the country, the citadel upon which the bank artillery incessantly thundered! And what was the conduct of the Senate all this time? It was trying and condemning that man, killing him off with a senatorial condemnation, removing the obstacle which stood between the bank and its prey; and, in so doing, establishing the indissoluble connection between the movement of the bank in distressing the country, and the movement of the Senate in condemning the President.

Mr. B. said that certainly no more proof was necessary, on this head, to show that the designs of the bank were political and revolutionary, intended to put down General Jackson's administration, and to connect itself with the Senate; but he had more proof, that of a publication under the editorial head of the National Gazette, and which publication he assumed to say, was written by the president of the bank. It was a long article of four columns; but he would only read a paragraph. He read: "The great contest now waging in this country is between its free institutions and the violence of a vulgar despotism. The government is turned into a baneful faction, and the spirit of liberty contends against it throughout the country. On the one hand is this miserable cabal, with all the patronage of the Executive; on the other hand, the yet unbroken mind and heart of the country, with the Senate and the bank; – [in reading these words, in which the bank associated itself with the Senate, Mr. B. repeated the famous expression of Cardinal Wolsey, in associating himself with the king: 'Ego et rex meus;'] – the House of Representatives, hitherto the intuitive champion of freedom, shaken by the intrigues of the kitchen, hesitates for a time, but cannot fail before long to break its own fetters first, and then those of the country. In that quarrel, we predict, they who administer the bank will shrink from no proper share which the country may assign to them. Personally, they must be as indifferent as any of their fellow-citizens to the recharter of the bank. But they will not suffer themselves, nor the institution intrusted to them, to be the instruments of private wrong and public outrage; nor will they omit any effort to rescue the institutions of the country from being trodden under foot by a faction of interlopers. To these profligate adventurers, whether their power is displayed in the executive or legislative department, the directors of the bank will, we are satisfied, never yield the thousandth part of an inch of their own personal rights, or their own official duties; and will continue this resistance until the country, roused to a proper sense of its dangers and its wrongs, shall drive the usurpers out of the high places they dishonor." This letter, said Mr. B., discloses, in terms which admit of no explanation or denial, the design of the bank in creating the pressure which was got up and continued during the panic session. It was to rouse the people, by dint of suffering, against the President and the House of Representatives, and to overturn them both at the ensuing elections. To do this, now stands revealed as its avowed object. The Senate and the bank were to stand together against the President and the House; and each to act its part for the same common object: the bank to scourge the people for money, and charge its own scourging upon the President; the Senate to condemn him for a violation of the laws and constitution, and to brand him as the Cæsar, Cromwell, Bonaparte – the tyrant, despot, usurper, whose head would be cut off in any kingdom of Europe for such acts as he practised here. Mr. B. said, the contemplation of the conduct of the bank, during the panic session, was revolting and incredible. It combined every thing to revolt and shock the moral sense. Oppression, falsehood, calumny, revolution, the ruin of individuals, the fabrication of false pretences, the machinations for overturning the government, the imputation of its own crimes upon the head of the President; the enriching its favorites with the spoils of the country, insolence to the House of Representatives, and its affected guardianship of the liberties of the people and the free institutions of the country; such were the prominent features of its conduct. The parallel of its enormity was not to be found on this side of Asia; an example of such remorseless atrocity was only to be seen in the conduct of the Paul Benfields and the Debi Sings who ravaged India under the name of the Marquis of Hastings. Even what had been casually and imperfectly brought to light, disclosed a system of calculated enormity which required the genius of Burke to paint. What was behind would require labors of a committee, constituted upon parliamentary principles, not to plaster, but to probe the wounds and ulcers of the bank; and such a committee he should hope to see, not now, but hereafter, not in the vacation but in the session of Congress. For he had no idea of these peripatetic and recess committees, of which the panic session had been so prolific. He wanted a committee, unquestionable in the legality of its own appointment, duly qualified in a parliamentary sense for discovering the misconduct they are set to investigate; and sitting under the wing of the authority which can punish the insolent, compel the refractory, and enforce the obedience which is due to its mandates.

6. The distress of the country occasioned by the Bank of the United States and the Senate of the United States. – This, Mr. B. said, might be an unpleasant topic to discuss in the Senate; but this Senate, for four months of the last session, and during the whole debate on the resolution to condemn the President, had resounded with the cry that the President had created all the distress; and the huge and motley mass, throughout the Union, which marched under the oriflamme of the bank, had every where repeated and reiterated the same cry. If there was any thing unpleasant, then, in the discussion of this topic in this place, the blame must be laid on those who, by using that argument in support of their resolution against the President, devolved upon the defenders of the President the necessity of refuting it. Mr. B. would have recourse to facts to establish his position. The first fact he would recur to was the history of a reduction of deposits, made once before in this same bank, so nearly identical in every particular with the reduction which took place under the order for the late removal of deposits, that it would require exact references to documentary evidence to put its credibility beyond the incredulity of the senses. Not only the amount from which the reduction was made, its progress, and ultimate depression, corresponded so closely as each to seem to be the history of the same transaction, but they began in the same month, descended in the same ratio, except in the instances which operate to the disadvantage of the late reduction, and, at the end of fifteen months, had reached the same point. Mr. B. spoke of the reduction of deposits which took place in the years 1818 and 1819; and would exhibit a table to compare it with the reductions under the late order for the removal of the deposits.

Here, said Mr. B., is a similar and parallel redaction of deposits in this same bank, and that at a period of real pecuniary distress to itself; a period when great frauds were discovered in its management; when a committee examined it, and reported it guilty of violating its charter; when its stock fell in a few weeks from one hundred and eighty to ninety; when propositions to repeal its charter, without the formality of a scire facias, were discussed in Congress; when nearly all presses, and nearly all voices, condemned it; and when a real necessity compelled it to reduce its discounts and loans with more rapidity, and to a far greater comparative extent, than that which has attended the late reduction. Yet, what was the state of the country? Distressed, to be sure, but no panic; no convulsion in the community; no cry of revolution. And why this difference? If mere reduction of deposits was to be attended with these effects at one time, why not at the other? Sir, said Mr. B., addressing the Vice-President, the reason is plain and obvious. The bank was unconnected with politics, in 1819; it had no desire, at that time, to govern the elections, and to overturn an administration; it had no political confederates; it had no president of the bank then to make war upon the President of the United States, and to stimulate and aid a great political party in crushing the President, who would not sign a new charter, and in crushing the House of Representatives which stood by him. There was no resolution then to condemn the President for a violation of the laws and the constitution. And it was this fatal resolution, which we now propose to expunge, which did the principal part of the mischief. That resolution was the root of the evil; the signal for panic meetings, panic memorials, panic deputations, panic speeches, and panic jubilees. That resolution, exhibited in the Senate chamber, was the scarlet mantle of the consul, hung out from his tent; it was the signal for battle. That resolution, and the alarm speeches which attended it, was the tocsin which started a continent from its repose. And the condemnation which followed it, and which left this chamber just in time to reach the New-York, Virginia, and Connecticut elections, completed the effect upon the public mind, and upon the politics and commerce of the country, which the measures of the bank had been co-operating for three months to produce. And here he must express his especial and eternal wonder how all these movements of bank and Senate co-operating together, if not by arrangement, at least by a most miraculous system of accidents, to endanger the political rights, and to injure the pecuniary interests of the people of the United States, could so far escape the observation of the investigating committee of the Senate, as not to draw from them the expression of one solitary opinion, the suggestion of one single idea, the application of one single remark, to the prejudice of the bank. Surely they ought to have touched these scenes with something more than a few meagre, stinted, and starved lines of faint allusion to the "new measures understood to be in contemplation;" those new measures which were so falsely, so wickedly fabricated to cover the preconcerted and premeditated plot to upset the government by stimulating the people to revolution, through the combined operations of the pecuniary pressure and political alarms.

The table itself was entitled to the gravest recollection, not only for the comparison which it suggested, but the fact of showing the actual progress and history of the removal of the deposits, and blasting the whole story of the President's hostility to the bank. From this table it is seen that the deposits, in point of fact, have never been all taken from the bank; that the removal, so far as it went, was gradual and gentle; that an average of three millions has always been there; that nearly four millions was there on the 1st day of January last; and before these facts, the fabricated story of the President's hostility to the bank, his vindictiveness, and violent determination to prostrate, destroy, and ruin the institution, must fall back upon its authors, and recoil upon the heads of the inventors and propagators of such a groundless imputation.

Mr. B. could give another fact to prove that it was the Senate and the bank, and the Senate more than the bank, which produced the distress during the last winter. It was this: that although the curtailments of the bank were much larger both before and after the session of Congress, yet there was no distress in the country, except during the session, and while the alarm speeches were in a course of delivery on this floor. Thus, the curtailment from the 1st of August to the 1st of October, was $4,066,000; from the 1st of October to the meeting of Congress in December, the curtailment was $5,641,000 – making $9,707,000 in four months, and no distress in the country. During the session of Congress (seven months) there was a curtailment of $3,428,138; and during this time the distress raged. From the rise of Congress (last of June) to the 1st of November, a period of four months, the curtailment was $5,270,771, and the word distress was not heard in the country. Why? Because there were no panic speeches. Congress had adjourned; and the bank, being left to its own resources, could only injure individuals, but could not alarm and convulse the community.

Mr. B. would finish this view of the conduct of the bank in creating a wanton pressure, by giving two instances; one was the case of the deposit bank in this city; the other was the case of a senator opposed to the bank. He said that the branch bank at this place had made a steady run upon the Metropolis Bank from the beginning to the ending of the panic session. The amount of specie which it had taken was $605,000: evidently for the purpose of blowing up the pet bank in this district; and during all that time the branch refused to receive the notes, or branch drafts, of any other branch, or the notes of the mother bank; or checks upon any city north of Baltimore. On the pet bank in Baltimore it would take checks, because the design was to blow up that also. Here, said Mr. B., was a clear and flagrant case of pressure for specie for the mere purpose of mischief, and of adding the Metropolis Bank to the list of those who stopped payment at that time. And here Mr. B. felt himself bound to pay his respects to the Committee on Finance, that went to examine the bank last summer. That committee, at pages 16 and 22, of their report, brought forward an unfounded charge against the administration for making runs upon the branches of the United States Bank, to break them; while it had been silent with respect to a well-founded instance of the same nature from the Bank of the United States towards the deposit bank in this district. Their language is: "The administrative department of the government had manifested a spirit of decided hostility to the bank. It had no reason to expect any indulgence or clemency at its hands; and in this opinion, if entertained by the directors, about which there can be but little question, subsequent events very soon proved they were not mistaken. The President's address to his cabinet; the tone assumed by the Secretary (Mr. Taney) in his official communication to Congress, and the developments subsequently made by Mr. Duane in his address to the public, all confirm the correctness of this anticipation. The measure which the bank had cause to fear was the accumulation by government of large masses of notes, and the existence thereby of heavy demands against its offices" (p. 16). "In persevering in its policy of redeeming its notes whenever presented, and thereby continuing them as a universal medium of exchange, in opposition to complaints on that head from some of the branches (see copies of correspondence), the security of the institution and the good of the country were alike promoted. The accumulation of the notes of any one branch for the purpose of a run upon it by any agent of the government, when specie might be obtained at the very places of collection, in exchange for the notes of the most distant branches, would have been odious in the eyes of the public, and ascribed to no other feeling than a feeling of vindictiveness" (p. 22). Upon these extracts, Mr. B. said, it was clear that the committee had been so unfortunate as to commit a series of mistakes, and every mistake to the advantage of the bank, and to the prejudice of the government and the country. First, the government is charged, for the charge is clear, though slightly veiled, that the President of the United States in his vindictiveness against the bank, would cause the notes of the branches to be accumulated, and pressed upon them to break them. Next, the committee omit to notice the very thing actually done, in our very presence here, by the Bank of the United States against a deposit bank, which it charges without foundation upon the President. Then it credits the bank with the honor of paying its notes every where, and exchanging the notes of the most distant branches for specie, when the case of the Metropolis Bank, here in our presence, for the whole period of the panic session, proves the contrary; and when we have a printed document, positive testimony from many banks, and brokers, testifying that the branches in Baltimore and New-York, during the fall of 1833, positively refused to redeem the notes of other branches, or to accept them in exchange for the notes of the local banks, though taken in payment of revenue; and that, in consequence, the notes of distant branches fell below par, and were sold at a discount, or lent for short periods without interest, on condition of getting specie for them; and that this continued till Mr. Taney coerced the bank, by means of transfer drafts, to cause the notes of her branches to be received and honored at other branches as usual. In all this, Mr. B. said, the report of the committee was most unfortunate; and showed the necessity for a new committee to examine that institution; a committee constituted upon parliamentary principles – a majority in favor of inquiry – like that of the Post Office. The creation of such a committee, Mr. B. said, was the more necessary, as one of the main guards intended by the charter to be placed over the bank was not there during the period of the pressure and panic operations; he alluded to the government directors; the history of whose rejection, after such long delays in the Senate to act on their nomination, is known to the whole country.