CHAPTER LVI.

INDEPENDENT TREASURY-AGAIN DEFEATED.-TALLMADGE'S SPEECH.-IN

CIDENTAL DEBATE BETWEEN CLAY, CALHOUN AND WEBSTER.-SPECIB CIRCULAR REPEALED.

THE 2d session, being the first regular session of the 25th congress, began the 4th of December, 1837. The establishment of the independent treasury was again recommended by the president; and on the 16th of January, a bill for that purpose was reported to the senate by Mr. Wright. This bill proposed the gradual collection of all revenues in specie, requiring on and after the 1st of January, 1839, the payment of one-sixth part in coin, and an additional one-sixth annually thereafter, until the 1st of January, 1844, when the whole would become thus payable. The bill was discussed with great ability at this session; being supported mainly by Messrs. Wright, Benton, and others, and opposed by Messrs. Clay, Webster, Rives and White. On the 2d of February, Mr. Rives offered a substitute, containing a provision similar to the one proposed at the preceding annual session, requiring the payment of the revenues in coin and the notes of specie paying banks issuing bills of the larger denominations only.

This scheme of finance did not appear to have increased in the public favor since the extra session. On the 6th of February, Mr. Grundy presented resolutions of the legislature of Tennessee, by one of which the senators of that state were instructed to vote against the measure proposed by the president; and believing in the right of instruction by the legislature, he should comply. Mr. Buchanan also presented resolutions of the legislature of Pennsylvania, instructing the senators and requesting the representatives from that state, to vote for the postponement of the bill to the next session. Accompanying the resolution of instructions, were numerous reasons of the senate for concurring in the same. Mr. B. also declared his intention to comply with the instructions. Mr. Wall, of New Jersey, having been instructed to vote against the bill, declared his disregard of the instructions of the legislature of his state.

The bill, before it was ordered to be engrossed, was amended by striking out what was deemed its most obnoxious section—"the specie clause,” which required all revenues to be ultimately paid in gold and silver. An amendment moved by Mr. Webster, was adopted, prohibiting the secretary of the treasury from issuing any general order (as the specie circular) making any discrimination as to the funds or mediuni in which debts to the United States should be paid : ayes, 37; noes, 14.

The vote on the final passage of the bill in the senate, was taken the 26th of March : ayes, 27; noes, 25. Mr. Grundy and Mr. Buchanan, friends of the bill, voted in the negative, in obedience to instructions. The vote on its passage in the same body at the extra session, was 26 to 20. In the house, the bill of the senate was reported the 27th, and laid on the table, 106 to 98.

The speeches in the senate on, and incidental to the sub-treasury bill, were among the ablest efforts of these distinguished gentlemen ; and not a little interest was given to the debate by charges of political inconsistency and efforts at self-vindication.

Mr. Hubbard, of New Hampshire, had, in his speech, read approv. ingly from that part of the president's message which ascribed the unex. pected results of the late elections to bank influence; and had undertaken to explain the result in New York. Mr. Tallmadge, who had separated from his democratic friends, and was now one of those called “ conservatives," in his reply to Mr. Hubbard, vindicated the people against the charge of the president, and ascribed the result to the principles adopted by the president and his party, from the creed of a faction (called “locofoco") which had its origin in the city of New York, in 1829. This faction, he said, was turned out of Tammany Hall in the pure days of the democratic republican party, and held meetings in the open air whenever it was necessary to take measures to reduce the price of flour, or to carry out any other great principle in political economy! After their principles had received the countenance of the administration, they returned to the wigwam, displaced the ancient sachems, and there they now illustrate their ideas of freedom of speech and free discussion, by forcible interruption of the assemblages of orderly citizens, who happen to entertain opinions on matters of public policy contrary to their own. They are now the leaders of the party, and the prominent candidates for executive favor. [Appendix, Note J.]

The leading feature of their creed, Mr. T. said, was THE DESTRUCTION OF THE WHOLE BANKING CHARTERS AND THE ABROGATION OF VESTED

And this was understood by the people to be the policy of the administration. En. couraged by their successful war on the bank of the United States, they had commenced a ruthless warfare against the state banks; not thinking that they might not be able to bring the same force into the field in the one case as in the other. They seemed to have forgotten that they had during the first war, persuaded the people that there were monstrous cvils connected with the one bank, and equal benefits to be derived from the others; that they had assured the people, that the state institutions could perform for the government all that had been done by the national bank, and could give even a "better currency."

SYSTEM

OF

THE COUNTRY—THE REPEAL OF

RIGHTS.

One evidence of the meditated destruction of the state banks by the administration, was, that the proceedings of the meetings of the locofocos in the great cities, where resolutions were adopted against the whole banking system, and in favor of an exclusive metallic currency, had been responded to by men in high official stations, and their responses were perfectly satisfactory. With this high sanction, these wild doctrines began to spread. Many changed their opinions; others adopted this radical creed, because it was approved by those who held the reins of party, and had the power of party dispensation. Another evidence of the prevalence of this radical spirit was seen in the treatment of the subject of suspension of specie payments. By the law of New York, (the old safety-fund law,) when a bank did not for ten days redeem its notes in specie, the chancellor was directed to issue his injunction, close its doors, appoint a receiver to collect its dues and pay its debts. There was then due the banks from the people about $70,000,000. The collection of this amount would have produced general distress and ruin. The legislature being in session, a law was forthwith passed, almost unanimously, to suspend for a year the forfeiture of the charters which had been incurred by their failing to redeem. This act had been openly denounced by public meetings in the city of New York, composed of persons claiming to be the exclusive friends of the administration. And this denunciation had been resterated by the official organ of the

government here.

And why was the act denounced? Because, without it, the banks would have all been prostrated, and we should have been at once brought to the “golden age” which had been so long desired. The great interésts of the country would have been sacrificed; but what of that? We should have had the “constitutional currency"_" a hard money government "_" a successful experiment !" The suspension act was not a boon to the banks; it was a favor to the people, while it saved the bank charters from forfeiture. Other states passed similar laws; and thus were frustrated the designs of those who deemed the suspension of specie payments the proper occasion to carry out their favorite plan of breaking down the whole banking system of the states. that the president entertained this design. But the people judged him by his measures. He convened congress for an extra session. The message was delivered; and the people believed that the administration intended to destroy the banks. This belief had been confirmed by the result.

Farther : The banks having been saved by legislative enactments, the president recommended " a uniform law concerning bankruptcies of corporations, and other bankers," as a measure "fully authorized by the

He did not say

constitution.” What would have been the effect of such a law ? Every bank in the union would have been handed over to commissioners, and its concerns closed up; for all had suspended, and would of course have come within its provisions: and the effect would have been ruin from one extremity of the union to the other. Fortunately, congress did not adopt the recommendation, although it was urged with great power by one of the most prominent friends of the administration, (Mr. Benton.) This subject was not new to the president. In 1826, standing on that floor, he maintained on this subject the same principles which he (Mr. T.) was now endeavoring to maintain. On the discussion of the bank. rupt bill, then before the senate, Mr. Van Buren, as senator, opposed its application to banking incorporations," as an odious exercise of power not granted by the constitution." But in 1837, as president, he proposes “a uniform law concerning bankruptcies of corporations and other bankers," as a measure “fully authorized by the constitution."

The people foresaw what would have been the effect of the proposed bankrupt law; and they saw the effect of the sub-treasury scheme. They knew both to be equally fatal. They saw, by the official organ, after it was defeated in the house, at the extra session, that it was to be again forced upon congress. Its adoption would have prevented the resumption of specie payments; or, if the banks should resume, it would compel them to stop again.

But there was another cause of the results of the late election. The people saw the treatment received by those who opposed these measures. They saw some of their representatives here, pursuing the straightforward track of principle, refusing to turn about at the word of command, and opposing the measure which the whole party, with Gen. Jackson at their head, opposed in 1834, and which the official organ then pronounced “disorganizing and revolutionary.” They saw all this ; and they saw also that for this adherence to principle, their representatives were denounced and proscribed by this same official organ of the administration! They saw established at the seat of government, by the discipline of party, a despotism, the most perfect on earth—the DESPOTISM OF OPINION !

This system of dictation and proscription, Mr. T. said, commenced during Gen. Jackson's second term. He would not tolerate a difference of opinion on any subject in which his feelings were enlisted. It might have been owing to the infirmity of age. Witness the distribution bill, the specie circular, and the currency bill. In these measures, the great body of his friends in both houses were opposed to him, still, the official organ maintained the executive will, and denounced the action and opinons of those who constituted the legislative branch of the government.

The present executive had promised to "follow in the footsteps of his illustrious predecessor.” This sub-treasury scheme was the darling project of the late president; and it was presumed that it was now brought forward in pursuance of this pledge.

Mr. T. said his colleague, (Mr. Wright,) had spoken of that portion of the friends of the administration who opposed this scheme, as a small party, and intimated that they ought to give up their opinions to the majority. That small party were maintaining the principles which the whole party recently maintained ; and the difference between them being a matter of principle, it could not be compromised. The opinions of his colleague had, in all matters in difference, always coincided with those of the executive. And, had the executive recommended the state bank deposit system, they would have seen his colleague, with himself, (Mr. T.,) and his friend from Virginia (Mr. Rives) by his side, leading on his faithful troops; and instead of the golden banner under which he was now fighting against the institutions of the states, and the rights of the states, he would raise aloft the stars and stripes of his country, the emblem of those rights; and under that sign he would have conquered.

Under the present system of party discipline and executive intimidation, Mr. T. said, the liberty of speech and of the press had been virtually abrogated. The executive department had become too powerful for the legislative branch. The great apprehension of the framers of the constitution was from the legislative power. But the theory of the constitution had, in the short space of half a century, been reversed. The executive department had become so formidable as to overawe the legislature, and dictate to it the measures which the president himself was to execute. Add to that strength the powers of a treasury bank, which were contained in the bill, and there would have been given all that could define a despot.

From this sketch of the speech of Mr. Tallmadge are seen, both the principles of the “conservatives," and the feelings which they entertained towards the party they had abandoned. Though comparatively small in numbers, they contributed much to the overthrow of that party at the succeeding presidential election.

Mr. Calhoun, who had, since the removal of the deposits, or during most of the period of the “war upon the currency," as it was called, coöperated with the opposition, again united with the administration, and advocated the sub-treasury project, as a plan for separating the government from all banks. In the course of his speech, he mentioned the fact that the opponents of this scheme, now supported the state bank system which a few years before they opposed. He said, however, that ne made no charge of inconsistency, being aware that, as a national bank