MR. WEBSTER'S PLAN OF RELIEF.
It has already been seen that Mr. Webster took no direct part in promoting the adoption of the resolutions against General Jackson. He had no private grief to incite him against the President; and, as first drawn up, it would have been impossible for him, honored with the titles of "expounder and defender of the constitution," to have supported the resolve: bearing plainly on its face impeachable matter. After several modifications, he voted for it; but, from the beginning, he had his own plan in view, which was entirely different from an attack on the President; and solely looked to the advantage of the bank, and the relief of the distress, in a practical and parliamentary mode of legislation. He looked to a renewal of the bank charter for a short term, and with such modifications as would tend to disarm opposition, and to conciliate favor for it. The term of the renewal was only to be for six years: a length of time well chosen; because, from the shortness of the period, it would have an attraction for all that class of members—always more or less numerous in every assembly—who, in every difficulty, are disposed to temporize and compromise; while, to the bank, in carrying its existence beyond the presidential term of General Jackson, it felt secure in the future acquisition of a full term. Besides the attraction in the short period, Mr. Webster proposed another amelioration, calculated to have serious effect; it was to give up the exclusive or monopoly feature in the charter—leaving to Congress to grant any other charter, in the mean time, to a new company, if it pleased. The objectionable branch bank currency of petty drafts was also given up. Besides this, and as an understanding that the corporation would not attempt to obtain a further existence beyond the six years, the directors were to be at liberty to begin to return the capital to the stockholders at any time within the period of three years, before the expiration of the six renewed years. The deposits were not to be restored until after the first day of July; and, as an agreeable concession to the enemies of small paper currency the bank was to issue, or use, no note under the amount of twenty dollars. He had drawn up a bill with these provisions, and asked leave to bring it in; and, asking the leave, made a very plausible business speech in its favor: the best perhaps that could have been devised. In addition to his own weight, and the recommendations in the bill, it was understood to be the preference of Mr. Biddle himself—his own choice of remedies in the difficulties which surrounded his institution. But he met opposition from quarters not to be expected: from Mr. Clay, who went for the full term of twenty years; and Mr. Calhoun, who went for twelve. It was difficult to comprehend why these two gentlemen should wish to procure for the bank more than it asked, and which it was manifestly impossible for it to gain. Mr. Webster's bill was the only one that stood the least chance of getting through the two Houses; and on that point he had private assurances of support from friends of the administration, if all the friends of the bank stood firm. In favoring this charter for twelve years, Mr. Calhoun felt that an explanation of his conduct was due to the public, as he was well known to have been opposed to the renewed charter, when so vehemently attempted, in 1832; and also against banks generally. His explanation was, that he considered it a currency question, and a question between the national and local banks; and that the renewed charter was to operate against them; and, in winding itself up, was to cease for ever, having first established a safe currency. His frequent expression was, that his plan was to "unbank the banks:" a process not very intelligibly explained at the time, and on which he should be allowed to speak for himself. Some passages are, therefore, given from his speech:
"After a full survey of the whole subject, I can see no means of extricating the country from its present danger, and to arrest its further increase, but a bank, the agency of which, in some form; or under some authority, is indispensable. The country has been brought into the present diseased state of the currency by banks, and must be extricated by their agency. We must, in a word, use a bank to unbank the banks, to the extent that may be necessary to restore a safe and stable currency—just as we apply snow to a frozen limb, in order to restore vitality and circulation, or hold up a burn to the flame to extract the inflammation. All must see that it is impossible to suppress the banking system at once. It must continue for a time. Its greatest enemies, and the advocates of an exclusive specie circulation, must make it a part of their system to tolerate the banks for a longer or a shorter period. To suppress them at once, would, if it were possible, work a greater revolution: a greater change in the relative condition of the various classes of the community than would the conquest of the country by a savage enemy. What, then, must be done? I answer, a new and safe system must gradually grow up under, and replace, the old; imitating, in this respect, the beautiful process which we sometimes see, of a wounded or diseased part in a living organic body, gradually superseded by the healing process of nature.
"How is this to be effected? How is a bank to be used as the means of correcting the excess of the banking system? And what bank is to be selected as the agent to effect this salutary change? I know, said Mr. C., that a diversity of opinion will be found to exist, as to the agent to be selected, among those who agree on every other point, and who, in particular, agree on the necessity of using some bank as the means of effecting the object intended; one preferring a simple recharter of the existing bank—another, the charter of a new bank of the United States—a third, a new bank ingrafted upon the old—and a fourth, the use of the State banks, as the agent. I wish, said Mr. C., to leave all these as open questions, to be carefully surveyed and compared with each other, calmly and dispassionately, without prejudice or party feeling; and that to be selected which, on the whole, shall appear to be best—the most safe; the most efficient; the most prompt in application, and the least liable to constitutional objection. It would, however, be wanting in candor on my part, not to declare that my impression is, that a new Bank of the United States, ingrafted upon the old, will be found, under all the circumstances of the case, to combine the greatest advantages, and to be liable to the fewest objections; but this impression is not so firmly fixed as to be inconsistent with a calm review of the whole ground, or to prevent my yielding to the conviction of reason, should the result of such review prove that any other is preferable. Among its peculiar recommendations, may be ranked the consideration, that, while it would afford the means of a prompt and effectual application for mitigating and finally removing the existing distress, it would, at the same time, open to the whole community a fair opportunity of participation in the advantages of the institution, be they what they may.
"Let us then suppose (in order to illustrate and not to indicate a preference) that the present bank be selected as the agent to effect the intended object. What provisions will be necessary? I will suggest those that have occurred to me, mainly, however, with a view of exciting the reflection of those much more familiar with banking operations than myself, and who, of course, are more competent to form a correct judgment on their practical effect.
"Let, then, the bank charter be renewed for twelve years after the expiration of the present term, with such modifications and limitations as may be judged proper, and that after that period, it shall issue no notes under ten dollars; that government shall not receive in its dues any sum less than ten dollars, except in the legal coins of the United States; that it shall not receive in its dues the notes of any bank that issues notes of a denomination less than five dollars; and that the United States Bank shall not receive in payment, or on deposit, the notes of any bank whose notes are not receivable in dues of the government; nor the notes of any bank which may receive the notes of any bank whose notes are not receivable by the government. At the expiration of six years from the commencement of the renewed charter, let the bank be prohibited from issuing any note under twenty dollars, and let no sum under that amount be received in the dues of the government, except in specie; and let the value of gold be raised at least equal to that of silver, to take effect immediately, so that the country may be replenished with the coin, the lightest and the most portable in proportion to its value, to take the place of the receding bank notes. It is unnecessary for me to state, that at present, the standard value of gold is several per cent. less than that of silver, the necessary effect of which has been to expel gold entirely from our circulation, and thus to deprive us of a coin so well calculated for the circulation of a country so great in extent, and having so vast an intercourse, commercial, social, and political, between all its parts, as ours. As an additional recommendation to raise its relative value, gold has, of late, become an important product of three considerable States of the Union, Virginia, North Carolina, and Georgia—to the industry of which, the measure proposed would give a strong impulse, and which in turn would greatly increase the quantity produced.
"Such are the means which have occurred to me. There are members of this body far more competent to judge of their practical operation than myself, and as my object is simply to suggest them for their reflection, and for that of others who are more familiar with this part of the subject, I will not at present enter into an inquiry as to their efficiency, with a view of determining whether they are fully adequate to effect the object in view or not. There are doubtless others of a similar description, and perhaps more efficacious, that may occur to the experienced, which I would freely embrace, as my object is to adopt the best and most efficient. And it may be hoped that, if on experience it should be found that neither these provisions nor any other in the power of Congress, are fully adequate to effect the important reform which I have proposed, the co-operation of the States may be afforded, at least to the extent of suppressing the circulation of notes under five dollars, where such are permitted to be issued under their authority."
The ultimate object proposed to be accomplished by Mr. Calhoun in this process of "unbanking the banks," was to arrive eventually and by slow degrees, at a metallic currency, and the revival of gold. This had been my object, and so declared in the Senate, from the time of the first opposition to the United States Bank. He had talked his plan over to myself and others: we had talked over ours to him. There was a point at which we all agreed—the restoration of a metallic currency; but differed about the means—he expecting to attain it slowly and eventually, through the process which he mentioned; and we immediately, through the revival of the gold currency, the extinction of the Bank of the United States, the establishment of an independent treasury, and the exclusion of all paper money from the federal receipts and payments. Laying hold of the point on which we agreed, (and which was also the known policy of the President), Mr. Calhoun appealed to Mr. Silas Wright and myself and other friends of the administration, to support his plan. He said:
"If I understand their views, as expressed by the senator from Missouri, behind me (Mr. Benton)—the senator from New-York (Mr. Wright); and other distinguished members of the party, and the views of the President, as expressed in reported conversations, I see not how they can reject the measure (to wit: his plan). They profess to be the advocates of a metallic currency. I propose to restore it by the most effectual measures that can be devised, gradually and slowly, and to the extent that experience may show that it can be done consistently with due regard to the public interest. Further, no one can desire to go."
The reference here made by Mr. Calhoun to the views of the senator from Missouri was to conversations held between them; in which each freely communicated his own plan. Mr. Benton had not then brought forward his proposition for the revival of the gold currency; but did so, (in a speech which he had studied), the moment Mr. Calhoun concluded. That was a thing understood between them. Mr. Calhoun had signified his wish to speak first; to which Mr. Benton readily assented: and both took the opportunity presented by Mr. Webster's motion, and the presentation of his plan, to present their own respectively. Mr. Benton presented his the moment Mr. Calhoun sat down, in a much considered speech, which will be given in the next chapter; and which was the first of his formal speeches in favor of reviving the gold currency. In the mean time, Mr. Webster's plan lingered on the motion for leave to bring in his bill. That leave was not granted. Things took a strange turn. The friends of the bank refused in a body to give Mr. Webster the leave asked: the enemies of the bank were in favor of giving him the leave—chiefly, perhaps, because his friends refused it. In this state of contrariety among his friends, Mr. Webster moved to lay his own motion on the table; and Mr. Forsyth, to show that this balk came from his own side of the chamber, asked the yeas and nays; which were granted and were as follows:
"Yeas.—Messrs Black, Calhoun, Clay, Clayton, Ewing, Frelinghuysen, Hendricks, King of Georgia, Mangum, Moore, Naudain, Poindexter, Porter, Prentiss, Preston, Robbins, Silsbee, Smith, Southard, Sprague, Swift, Tomlinson, Waggaman, Webster.
"Nays.—Messrs. Benton, Brown, Forsyth, Grundy, Hill, Kane, King of Alabama, Morris, Robinson, Shepley, Tallmadge, Tipton, White, Wilkins, Wright."
The excuse for the movement—for this unexpected termination to Mr. Webster's motion—was that the Senate might proceed with Mr. Clay's resolution against General Jackson, and come to a conclusion upon it. It was now time for that conclusion. It was near the last of March, and the Virginia elections came on in April: but the real cause for Mr. Webster's motion was the settled opposition of his political friends to his plan; and that was proved by its subsequent fate. In his motion to lay his application on the table, he treated it as a temporary disposition of it—the application to be renewed it some future time: which it never was.