This recommendation gave rise to proceedings in Congress, which will be noted in their proper place. The intimation of insolvency was received with scorn by the friends of the great corporation—with incredulity by the masses—and with a belief that it was true only by the few who closely observed the signs of the times, and by those who confided in the sagacity and provident foresight of Jackson (by no means inconsiderable either in number or judgment). For my own part I had not suspicioned insolvency when I commenced my opposition to the renewed charter; and was only brought to that suspicion, and in fact, conviction, by seeing the flagrant manner in which the institution resisted investigation, when proposed under circumstances which rendered it obligatory to its honor; and which could only be so resisted from a consciousness that, if searched, something would be found worse than any thing charged. The only circumstance mentioned by the President to countenance suspicion was the conduct of the bank in relation to the payment of five millions of the three per cent. stock, ordered to have been paid at the bank in the October preceding (and where the money, according to its returns, was in deposit); and instead of paying which the bank secretly sent an agent to London to obtain delay from the creditors for six, nine and twelve months; and even to purchase a part of the stock on its account—which was done—and in clear violation of its charter (which forbids the institution to traffic in the stocks of the United States). This delay, with the insufficient and illegal reason given for it (for no reason could be legal or sufficient while admitting the money to be in her hands, and that which the bank gave related to the cholera, and the ever-ready excuse of accommodation to the public), could only be accounted for from an inability to produce the funds; in other words, that while her returns to the treasury admitted she had the money, the state of her vaults showed that she had it not. This view was further confirmed by her attempt to get a virtual loan to meet the payment, if delay could not be obtained, or the stock purchased, in the application to the London house of the Barings to draw upon it for the amount uncovered by delay or by purchase.
But the salient passage in the message—the one which gave it a new and broad emphasis in the public mind—was the part which related to the attitude of South Carolina. The proceedings of that State had now reached a point which commanded the attention of all America, and could not be overlooked in the President's message. Organized opposition, and forcible resistance to the laws, took their open form; and brought up the question of the governmental enforcement of these laws, or submission to their violation. The question made a crisis; and the President thus brought the subject before Congress:
"It is my painful duty to state, that, in one quarter of the United States, opposition to the revenue laws has risen to a height which threatens to thwart their execution, if not to endanger the integrity of the Union. Whatever obstructions may be thrown in the way of the judicial authorities of the general government, it is hoped they will be able, peaceably, to overcome them by the prudence of their own officers, and the patriotism of the people. But should this reasonable reliance on the moderation and good sense of all portions of our fellow-citizens be disappointed, it is believed that the laws themselves are fully adequate to the suppression of such attempts as may be immediately made. Should the exigency arise, rendering the execution of the existing laws impracticable, from any cause whatever, prompt notice of it will be given to Congress, with the suggestion of such views and measures as may be deemed necessary to meet it."
Nothing could be more temperate, subdued, and even conciliatory than the tone and language of this indispensable notice. The President could not avoid bringing the subject to the notice of Congress; and could not have done it in a more unexceptionable manner. His language was that of justice and mildness. The peaceful administration of the laws were still relied upon, and if any thing further became necessary he promised an immediate notice to Congress. In the mean time, and in a previous part of his message, he had shown his determination, so far as it depended on him, to remove all just complaint of the burthens of the tariff by effecting a reduction of many millions of the duties:—a dispensation permitted by the extinction of the public debt within the current year, and by the means already provided, and which would admit of an abolition of ten to twelve millions of dollars of duties.
CHAPTER LXXV.
BANK OF THE UNITED STATES—DELAY IN PAYING THE THREE PER CENTS—COMMITTEE OF INVESTIGATION.
The President in his message had made two recommendations which concerned the bank—one that the seven millions of stock held therein by the United States should be sold; the other that a committee should be appointed to investigate its condition. On the question of referring the different parts of the message to appropriate committees. Mr. Speight, of North Carolina, moved that this latter clause be sent to a select committee to which Mr. Wayne, of Georgia, proposed an amendment, that the committee should have power to bring persons before them, and to examine them on oath, and to call upon the bank and its branches for papers. This motion gave rise to a contest similar to that of the preceding session on the same point, and by the same actors—and with the same result in favor of the bank—the debate being modified by some fresh and material incidents. Mr. Wickliffe, of Kentucky, had previously procured a call to be made on the Secretary of the Treasury for the report which his agent was employed in making upon the condition of the bank; and wished the motion for the committee to be deferred until that report came in. He said:
"He had every confidence, both from his own judgment and from information in his possession, that when the resolution he had offered should receive its answer, and the House should have the report of the agent sent by the Secretary of the Treasury to inquire into the affairs of the bank, with a view to ascertain whether it was a safe depository for the public funds, the answer would be favorable to the bank and to the entire security of the revenue. Mr. W. said he had hoped that the resolution he had offered would have superseded the necessity of another bank discussion in that House, and of the consequences upon the financial and commercial operations of the country, and upon the credit of our currency. He had not understood, from a hasty reading of the report of the Secretary of the Treasury, that that officer had expressed any desire for the appointment of any committee on the subject. The secretary said that he had taken steps to obtain such information as was within his control, but that it was possible he might need further powers hereafter. What had already been the effect throughout the country of the broadside discharged by the message at the bank? Its stock had, on the reception of that message, instantly fallen down to 104 per cent. Connected with this proposition to sell the stock, a loss had already been incurred by the government of half a million of dollars. What further investigations did gentlemen require? What new bill of indictment was to be presented? There was one in the secretary's report, which was also alluded to in the message: it was, that the bank had, by its unwaranted action, prevented the government from redeeming the three per cent. stock at the time it desired. But what was the actual state of the fact? What had the bank done to prevent such redemption? It had done nothing more nor less than what it had been required by the government to do."
The objection to inquiry, made by Mr. Wickliffe, that it depreciated the stock, and made a loss of the difference to its holders, was entirely fallacious, as fluctuations in the price of stocks are greatly under the control of those who gamble in them, and who seize every circumstance, alternately to depress and exalt them; and the fluctuations affect nobody but those who are buyers or sellers. Yet this objection was gravely resorted to every time that any movement was made which affected the bank; and arithmetical calculations were gravely gone into to show, upon each decline of the stock, how much money each stockholder had lost. On this occasion the loss of the United States was set down at half a million of dollars:—which was recovered four days afterwards upon the reading of the report of the treasury agent, favorable to the bank, and which enabled the dealers to put up the shares to 112 again. In the mean time nobody lost any thing but the gamblers; and that was nothing to the public, as the loss of one was the gain of the other: and the thing balanced itself. Holders for investment neither lost, nor gained. For the rest, Mr. Wayne, of Georgia, replied: