CHAPTER CXXV.
BRANCH MINTS AT NEW ORLEANS, AND IN THE GOLD REGIONS OF GEORGIA AND NORTH CAROLINA.
The bill had been reported upon the proposition of Mr. Waggaman, senator from Louisiana, and was earnestly and perseveringly opposed by Mr. Clay. He moved its indefinite postponement, and contended that the mint at Philadelphia was fully competent to do all the coinage which the country required. He denied the correctness of the argument, that the mint at New Orleans was necessary to prevent the transportation of the bullion to Philadelphia. It would find its way to the great commercial marts of the country whether coined or not. He considered it unwise and injudicious to establish these branches. He supposed it would gratify the pride of the States of North Carolina and Georgia to have them there; but when the objections to the measure were so strong, he could not consent to yield his opposition to it. He moved the indefinite postponement of the bill, and asked the yeas and nays on his motion; which were ordered.—Mr. Mangum regretted the opposition of the senator from Kentucky (Mr. Clay), and thought it necessary to multiply the number of American coins, and bring the mints to the places of production. There was an actual loss of near four per cent. in transporting the gold bullion from the Georgia and North Carolina mines to Philadelphia for coinage. With respect to gratifying the pride of the Southern States, it was a misconception; for those States had no pride to gratify. He saw no evil in the multiplication of these mints. It was well shown by the senator from Missouri, when the bill was up before, that, in the commentaries on the constitution it was understood that branches might be multiplied.—Mr. Frelinghuysen thought that the object of having a mint was mistaken. The mint was established for the accommodation of the government, and he thought the present one sufficient. Why put an additional burden upon the government because the people in the South have been so fortunate as to find gold?—Mr. Bedford Brown of North Carolina, said the senator from New Jersey, asked why we apply to Congress to relieve us from the burden of transporting our bullion to be coined, when the manufacturers of the North did not ask to be paid for transporting their material. He said it was true the manufacturers had not asked for this transportation assistance, but they asked for what was much more valuable, and got it—protection. The people of the South ask no protection; they rely on their own exertions; they ask but a simple act of justice—for their rights, under the power granted by the States to Congress to regulate the value of coin, and to make the coin itself. It has the exclusive privilege of Congress, and he wished to see it exercised in the spirit in which it was granted; and which was to make the coinage general for the benefit of all the sections of the Union, and not local to one section. The remark of the gentlemen is founded in mistake. What are the facts? Can the gold bullion of North Carolina be circulated as currency? We all know it cannot; it is only used as bullion, and carried to Philadelphia at a great loss. Another reason for the passage of the bill, and one which Mr. Brown hoped would not be less regarded by senators on the other side of the House, was that the measure would be auxiliary to the restoration of the metallic currency, and bring the government back to that currency which was the only one contemplated by the constitution.
Mr. Benton took the high ground of constitutional right to the establishment of these branches, and as many more as the interests of the States required. He referred to the Federalist, No. 44, written by Mr. Madison, that in surrendering the coining power to the federal government, the States did not surrender their right to have local mints. He read the passage from the number which he mentioned, and which was the exposition of the clause in the constitution relative to the coining power. It was express, and clear in the assertion, that the States were not to be put to the expense and trouble of sending their bullion and foreign coins to a central mint to be recoined; but that, as many local mints would be established under the authority of the general government as should be necessary. Upon this exposition of the meaning of the constitution, Mr. B. said, the States accepted the constitution; and it would be a fraud on them now to deny branches where they were needed. He referred to the gold mines in North Carolina, and the delay with which that State accepted the constitution, and inquired whether she would have accepted it at all, without an amendment to secure her rights, if she could have foreseen the great discoveries of gold within her limits, and the present opposition to granting her a local mint. That State, through her legislature, had applied for a branch of the mint years ago, and all that was said in her favor was equally applicable to Georgia. Mr. B. said, the reasons in the Federalist for branch mints were infinitely stronger now than when Mr. Madison wrote in 1788. Then, the Southern gold region was unknown, and the acquisition of Louisiana not dreamed of. New Orleans, and the South, now require branch mints, and claim the execution of the constitution as expounded by Mr. Madison.
Mr. B. claimed the right to the establishment of these branches as an act of justice to the people of the South and the West. Philadelphia could coin, but not diffuse the coin among them. Money was attracted to Philadelphia from the South and West, but not returned back again to those regions. Local mints alone could supply them. France had ten branch mints; Mexico had eight; the United States not one. The establishment of branches was indispensable to the diffusion of a hard-money currency, especially gold; and every friend to that currency should promote the establishment of branches.
Mr. B. said, there were six hundred machines at work coining paper money—he alluded to the six hundred banks in the United States; and only one machine at work coining gold and silver. He believed there ought to be five or six branch mints in the United States; that is, two or three more than provided for in this bill; one at Charleston, South Carolina, one at Norfolk or Richmond, Virginia, and one at New-York or Boston. The United States Bank had twenty-four branches; give the United States Mint five or six branches; and the name of that bank would cease to be urged upon us. Nobody would want her paper when they could get gold.
Mr. B. scouted the idea of expense on such an object as this. The expense was but inconsiderable in itself, and was nothing compared to its object. For the object was to supply the country with a safe currency,—with a constitutional currency; and currency was a thing which concerned every citizen. It was a point at which the action of government reached every human being, and bore directly upon his property, upon his labor, and upon his daily bread. The States had a good currency when this federal government was formed; it was gold and silver for common use, and large bank notes for large operations. Now the whole land is infested with a vile currency of small paper: and every citizen was more or less cheated. He himself had but two bank notes in the world, and they were both counterfeits, on the United States Bank, with St. Andrew's cross drawn through their faces. He used nothing but gold and silver since the gold bill passed.
In reply to Mr. Frelinghuysen, who asked where was the gold currency? He would answer, far the greatest part of it was in the vaults of the Bank of the United States, and its branches, to be sold or shipped to Europe; or at all events, to be kept out of circulation, to enable the friends of the bank to ask, where is the gold currency? and then call the gold bill a humbug. But he would tell the gentleman where a part of the gold was; it was in the Metropolis Bank in this city, and subject to his check to the full amount of his pay and mileage. Yes, said Mr. B., now, for the first time, Congress is paid in gold, and it is every member's own fault if he does not draw it and use it.
Mr. B. said this question concerned the South and West, and he would hope to see the representatives from these two sections united in support of the bill. He saw with pleasure, that several gentlemen from the north of the Potomac, and from New England were disposed to support it. Their help was most acceptable on a subject so near and so dear to the South and West. Every inhabitant of the South and West was personally interested in the success of the bill. From New Orleans, the new coin would ascend the Mississippi River, scatter itself all along its banks, fill all its towns, cities, and villages, branch off into the interior of the country, ascend all the tributary streams, and replenish and refresh the whole face of the land. From the Southern mints, the new gold would come into the West, and especially into Kentucky, Ohio, and Tennessee, by the stock drivers, being to them a safe and easy remittance, and to the country a noble accession to their currency; enabling them quickly to dispense with their small notes.