USA > Ohio > History of Ohio; the rise and progress of an American state, Volume Three > Part 22
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The historian, Bancroft, writing comparatively of the two squadrons, says:
"In ships, the British had the superiority, their vessels being stronger, and their forces being more concentrated; the American gunboats at the right of the American line, separated from each other by at least half a cable's length, were not near enough for good service. In the number of guns, the British had sixty-three, the Americans fifty-four. In action at a distance, the British, who had thirty-five long guns to fifteen, had greatly the advantage; in close action the weight of metal would favor the Americans. The British commander had 150 men from the Royal Navy, eighty Canadian sailors, and 240 soldiers, mostly regulars, and some Indians, making, with their officers, a little more than five hundred men of whom at least 450 were efficient. The American crews, of whom about one-fourth were from Rhode Island, one-fourth
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OF AN AMERICAN STATE
regular seamen, American and cosmopolitan, about one-fourth raw volunteers, from Pennsylvania, Ohio, but chiefly Kentucky, and about one-fourth blacks, numbered on the muster roll 490, but of these, 116 were sick, nearly all of whom were too weak to come on deck, so that the efficient force of the squadron was a little less than 400."
On the morning of the 10th of September, at sunrise, the enemy was bearing down from Malden. Perry's squadron immediately got under way. The wind was light and the day was beautiful, and not a cloud obscured the horizon. Commodore Perry was aboard the "Lawrence." He had privately prepared a beau- tiful flag to be hoisted at the masthead of his flagship. On this flag was painted in letters legible to the whole fleet the dying words of the immortal Lawrence, "Don't give up the ship." Turning to his crew he said, "My brave lads, this flag contains the last words of Captain Lawrence. Shall I hoist it?" The effect was electrifying. "Ay! ay! sir!" came from every man on the ship, and amid the cheers of his men he ran up the battle signal. All the vessels were ready and the decks were cleared for action.
At fifteen minutes to twelve there was a mellow sound of a bugle from the "Detroit," and the enemy's ine cheered. There broke upon the air the sounds of sweet music; it was the British band on that vessel playing "Rule Britannia." Then the crash of cannon; he "Detroit" and the "Queen Charlotte" had opened ire on the "Lawrence." She received the fire without eply, as she was not within distance to do any execu- ion with her short guns. At five minutes before
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THE RISE AND PROGRESS
twelve the "Lawrence" opened upon the enemy. The other vessels were ordered to support her, but the wind at this time was too light to enable them to come up. Every brace and bowline of the flagship were soon shot away; she became unmanageable, and in this situation, she was the target for upward of two hours, within canister distance, until every gun was ren- dered useless, and but a small part of her crew left unwounded upon the deck.
In the general action between the other vessels, the carnage was terrible, and from mid-day until three in the afternoon, the conflict was a desperate struggle for supremacy. Both sides realized the value of a victory and the disaster of defeat. Perry acted with reckless bravery throughout the engagement. There was but one moment when his cool intrepidity experi- enced a shock. This was on seeing his brother, a youth of but twelve years, who served aboard as a midshipman, knocked down by a hammock, which was driven in by a cannon ball. The first impression of the Commodore was that he was killed; but the active boy jumped up unhurt and unafraid, thus much relieving Perry, who went on as before.
The "Lawrence," after the terrific attacks she had sustained, now became useless and unmanageable. Her crew was literally mowed down and her guns crippled. Perry himself, assisted by his chaplain and purser, had fired the last gun. It was evident that the "Law- rence" could no longer be of service to the fleet. Perry ordered the pennant with the historic words of Captain Lawrence to be lowered, and wrapping it about him, he was transferred to an open boat bound for the
MAJOR GEORGE CROGHAN The Defender of Fort Stephenson.
Born near Louisville, Kentucky, November 15, 1791; graduated at William and Mary College in 1810; entered the army and was at Tippecanoe in 1811; was brevetted lieutenant colonel for his gallantry at Fort Stephenson; resigned from the army in 1817; appointed postmaster at New Orleans in 1824; in 1846, joined General Taylor's army in Mexico and served with credit at Monterey; died at New Orleans, January 8, 1849.
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THE RISE AND PROGRES
twelve the "Lawrence" opened upon the .
The other vesscis were ordered"
wind. this time was too light to enable them to
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wwwoutried upon the deck.
La the general action between the other vessel smager was terrible, and from mid-day until in the afternoon, the conflict was a desperate su ha sipremacy Both sides realized the value victory and the disaster of defeat. Perry actell heckler braven throughout the engagement. Was but one moment when his cool intrepidity es enced a shock. This was on seeing his broth youth of but twelve years, who served aboard midshipman, knocked down by a hammock, which driven in by a cannon ball. The first impressi the Commodore was that he was killed; but the boy jumped up unhurt and unafraid, thus relieving Perry, who went on as before.
The "Lawrence," after the terrific attacks sh sustained, now became useless and unmanageable crew was literally mowed down and her guns cr Perry himwell, assisted by his chaplain and had fired the last gun. It was evident that the rence" could no longer be of service to the fleet. ordered the pennant with the historic words of C Lawrence to be lowered, and wrapping it abou. he was transferred to an open boat bound
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OF AN AMERICAN STATE
"Niagara." He went off in gallant style and full of ardor. The enemy, observing this movement, saw the design immediately. It meant a fresh start by an indomitable commander. They directed all the fire of their great guns and musketry at Perry's boat to destroy it. Several of the oars were splintered, and the crew were covered with spray from the round shot and grape which were striking the water on every side. Perry stood erect, unmindful of danger; his crew begged him not to expose himself, and they threatened to lay upon their oars unless he sat down. He yielded to their wishes and they pulled with an extra will. It took fifteen minutes to reach the "Niagara." With the Commodore aboard, it became his flagship and the pennant was again run up. To the dismay of the British, they saw him on the quarter-deck fresh for a continuance of the contest.
Then followed close and deadly action. The "Niag- ara" under command of Perry seemed to take on new strength. She bore down on the British line, and reserving her fire for close range, raked with broad- sides the "Detroit" and the "Queen Charlotte," and at the same time from the other side of his vessel he poured shot into the "Lady Prevost" and the "Little Belt." The enemy stood the punishment as long as he could, and at three o'clock in the after- noon the British flagship "Detroit" lowered her flag, and for the first time in the history of Great Britain she surrendered a fleet. And this, too, to a young man of twenty-eight.
This splendid and complete victory, brilliant in its character and important in its consequences, was
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THE RISE AND PROGRESS
announced by Commodore Perry in a remarkable spirit of modesty. He sent two reports. Both of these are dated from the "U. S. brig Niagara, off the western Sister head of Lake Erie, Sept. 10th, 4 o'clock, P. M." The first was to William Jones, the Secretary of the Navy, as follows :
"Sir-It has pleased the Almighty to give to the arms of the United States a signal victory over their enemies on this lake. The British squadron, consist- ing of two ships, two brigs, one schooner, and one sloop, have this moment surrendered to the force under my command, after a sharp conflict.
I have the honor to be, sir,
Your obedient servant,
O. H. Perry."
The second, laconic and historic, was to General Harrison :
"Dear General-We have met the enemy, and they are ours. Two ships, two brigs, one schooner, and one sloop.
Yours with great respect and esteem, O. H. Perry."
The result of this victory was of great advantage to the Americans. The only barrier between General Harrison, who was on the south side of Lake Erie near Sandusky Bay, and the British base of supplies, Fort Malden, was destroyed. It left Detroit and the territory of Michigan at the mercy of his army. Sub- sequent events proved that this was all true, for the victory achieved at the Battle of the Thames destroyed
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OF AN AMERICAN STATE
British power in upper Canada, and resulted in the recovery of the Territory of Michigan.
The Battle of Lake Erie was the last engagement of the War of 1812 that occurred within the territorial limits of Ohio. In song and story and on painter's canvas, Perry's Victory has been celebrated as an event of gallantry and patriotism that has added to the glory of the Republic. "We have met the enemy and they are ours" became an epigram of our National literature, and it will live in the memory of the American Navy, for around it cluster some of the bravest deeds of her seamen.
To the expenses of the War of 1812, Ohio contributed verylargely through taxation levied by the Government. Under the act of August 13, 1813, she contributed $104,150, and under that of January 9, 1815, she raised $208,300. This tax was in the nature of internal duties on the manufacture and sale of distilled spirits, licenses on carriages and auctions, and bank stamps. Governor Meigs won for himself the approbation of his State and country by his energetic and patriotic efforts in behalf of his flag. The legislature of Ohio encouraged and supported the Governor with all the measures and means necessary to make the proper military movements. Governor Meigs resigned his office March 25, 1814, to become Postmaster-General in President Madison's Cabinet.
The general effects of the war in Ohio were good. Upon the declaration of peace, December 24, 1814, a great many of the soldiers remained in the State, or removed here after they had passed through it in their marches. This additional population stimulated the
308 RISE AND PROGRESS OF AN AMERICAN STATE
markets, and greatly increased trade. While in the East the war brought depression in business, in Ohio it was just the reverse. It is true, though, that specu- lation followed the successful years subsequent to the war, and much distress and financial ruin resulted.
CHAPTER X. THE CONFLICT BETWEEN THE STATE OF OHIO AND THE BANK OF THE UNITED STATES
A FTER the war of 1812 the tide of immigration poured into Ohio a large population. Specu- lation ran into the most extravagant excesses. Over-improvement and unrestrained invest- ment soon brought on the inevitable result. The state banks which had issued excessive notes found themselves unable to redeem them on demand, and soon the currency began to depreciate.
The condition that prevailed in Ohio obtained throughout the United States. After the War, this country was deluged with the importations of foreign manufacturers. The cost of the War was about $80,000,000 which had been paid by Government notes at a discount of twenty per cent. with a heavy burden of interest. There was no specie in circulation. One of the means of relief proposed was a Bank of the United States.
The first Bank, the Charter of which expired in 18II, proved of great benefit to the country. And it was now argued that a similar institution was an imperative necessity to remedy the financial evils resulting from the War. Henry Clay who had hereto- fore opposed the renewal of the charter of the first Bank favored it at this time. John C. Calhoun who reported the bill "to incorporate the subscribers to the Bank of the United States of America," said that it would "put an end to the suspension of specie payments, and restore to the people the national currency-that of gold and silver, alone recognized by the Constitution, of which they had for years been deprived."
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THE RISE AND PROGRESS
After an extended debate Congress incorporated the "Bank of the United States" in April, 1816 by an act which was promptly signed by President Madison. It was to be established in Philadelphia with branches over the country, and was chartered for twenty years. Its board of directors was to con- sist of twenty-five persons, five of whom were to be appointed by the President and confirmed by the Senate. Its capital stock was $35,000,000, one fifth of which was to be subscribed by the Government, and it was to be the depository of the public moneys, which it was to disburse without charge. These could be removed at any time by the Secretary of the Treasury. The Bank was to pay the Government one and a half million dollars for its charter.
The Bank of the United States established two branches in Ohio, one at Cincinnati, January 28, 1817, and another at Chillicothe, October 13 of the same year. These branches issued notes extensively which had a ten- dency to depreciate the currency of the state banks. They also in due course of business acquired the notes of these banks in large quantities, and in calling upon them to redeem their paper, strained the solvency of those institutions. The result was that the notes of the state banks continued to depreciate, and many of them became valueless. This situation developed a clamor in opposition to the United States Bank that soon became widespread throughout the State. The politicians and the local banks, some of which were the "wildcat" institutions of a later day in em- bryo, joined in a popular crusade. In those days the banks formed the moneyed aristocracy of the
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OF AN AMERICAN STATE
State, and they owned many a rotten borough, for they had a great influence in saying who should go to the Legislature, as well as who should remain at home. They railed at the big Bank with all the venom of political opponents, and the commercial rancor of business rivals. Filled with the spirit of the silver- smiths of Ephesus against Paul, they cried that under the new financial regime "our craft is in danger to be set at naught."
The war on the Bank of the United States com- menced almost as soon as the Legislature assembled. On December 13, 1817, a resolution was proposed in the House of Representatives and adopted (Journal of the House of Representatives. Sixteenth General Assembly. 1817. Page 90.) appointing a committee to inquire into the expediency of taxing such branches of the Bank as were or might be established within this State. The committee reported against the expediency of levying such a tax; but the House of Representatives reversed its report by a vote of 37 to 22. A substitute for this report was then offered, asserting the right of the State to levy such a tax and the expediency of doing it at that time. The constitutional right of the State to levy such a tax was asserted and adopted by a vote of 48 to 12, and the expediency of proceeding at once to levy the tax was carried by 33 to 27. A bill was immediately reported to the House providing for the tax. It was engrossed for the third reading and final passage, but upon the third reading was postponed to the second Monday of December, 1818.
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THE RISE AND PROGRESS
The movement inaugurated in the Legislature met with the approval of its various constituencies. The feeling against the Federal Bank was stirred up to a fever point. Instigated by the local banks, and led by the politicians of a school opposed to anything like a United States Bank, the unmistakable public sentiment of the State was for the legislation left over from the last session. There was a conservative element that was not opposed to the Bank, but thought it ought to be taxed. But the overwhelming majority hated the institution as the last remnant of Federalism, and it was their purpose, if they could, to drive the Bank of the United States out of Ohio with the strong and resistless whip of taxation.
At the next session of the General Assembly, on February 8, 1819, the law imposing the tax was passed. In the preamble was stated the reason, and it was there declared that, "Whereas, the president and directors of the Bank of the United States have established two offices of discount and deposit in this State at which they transact business by loaning money and issuing bills in violation of the laws of this State"; therefore it was enacted (Chase's Stat- utes, II, 1072), that "upon the fifteenth day of September, annually, the Auditor of State shall proceed to charge the Bank of the United States with a tax of fifty thousand dollars upon each office of discount and deposit, at which they may continue to transact banking business, within this State, after the first day of September next, and so long as the Bank of the United States shall continue to transact banking business at any office of discount and deposit within this State."
GRESS TO
COLONEL
MEDAL
Awarded to Colonel George Croghan by Resolution of the Congress of the United States, February 13, 1835.
Obverse: PRESENTED BY CONGRESS TO COLONEL GEORGE CROGHAN, 1835. Bust of Colonel Croghan, in uniform, facing the right. FURST. F. (Maker).
Reverse: PARS MAGNA FUIT. (His share was great.) Major Croghan is defending, with one hundred and sixty men, Fort Stephenson against the attack of the British army and the Indian allies. In the background, three gunboats on Lake Erie. Beneath: SANDUSKY 2 AUGUST, 1813. FURST. F. (Maker).J 1835
PARS
MAGNA FUIT
SANDUSKY 62. AUGUST 1813 FURST F.
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THE RISE AND PROGE
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it ought to be taxed. Bu (idsM) ErTanulniEISI hated the institution as the last remnant of Fede and it was their purpose, if they could, to dri Bank of the United States out of Ohio with the and resistless whip of taxation.
At the next session of the General Assembly February 8, 1819, the law imposing the tax passed. In the preamble was stated the 1. and it was there declared that, "Whereas, the presi and directors of the Bank of the United State established two offices of discount and deposit in State at which they transact business by lo money and issuing bills in violation of the la this State"; therefore it was enacted (Chase's utes, II, 1072), that "upon the fifteenth d September, annually, the Auditor of State proceed to charge the Bank of the United States tax of fifty thousand dollars upon each office of di and deposit, at which they may continue to tr banking business, within this State, after the fin of September next, and so long as the Bank of the L States shall continue to transact banking busines office of discount and deposit within this State
GRESS TO COLONEL
BY CONGRES
EL GEORGE
FURST. F. CRO GHA NASHUd -183
PARS MAGNA FUIT
SANDUSKY 2: AUGUST 1813 FURST F.
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OF AN AMERICAN STATE
To the Auditor of State was committed the duty of enforcing this law. He was authorized to appoint "any person" he might choose to collect the tax, and in case payment should be refused, and such person could not find in the banking room any money, bank notes, goods, chattels or other property whereon to levy, he should go into each and any other room in such banking house, "and every closet, box or drawer in such banking house to open and search," and take possession of whatever might be found. With this limitless right of search he was authorized to take as much money from the places mentioned as would pay the tax. No such law was ever passed by any other State before or since. It was popularly known as the "crowbar law" from the weapon used in its enforcement.
Prior to the date on which the law was to go into effect, which was September 1, 1819, the Bank filed a bill in Chancery against the Auditor of State, Ralph Osborn, to enjoin proceedings under the law. The Auditor of State was advised by his counsel that the papers served on him did not act as an injunction, and he thereupon issued a warrant to one John L. Harper for the collection of the tax. On September 17, Harper, with Thomas Orr, his assistant, proceeded to Chillicothe, and entering the Bank's branch office, levied upon and forcibly took possession of the sum of $100,000, of which $19,830 was in specie and $80,170 was in bank notes on the office of Discount and Deposit of the Bank of the United States at Chillicothe. Harper paid $98,000 to the Treasurer of State, retaining two per cent. of the amount levied for his compensation.
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THE RISE AND PROGRESS
He, with his assistant, was shortly afterwards im- prisoned for their action at Chillicothe.
The bold conduct of the State authorities created intense excitement throughout the Union. It was regarded as open defiance of the settled law of the land expressed by the Supreme Court of the United States. Some time before this forcible levy upor the property of the Bank, the very same questior. had been decided under similar circumstances and conditions by the highest tribunal in the country The officers of Ohio knew it, and what they did was in open contempt of the Supreme Court.
The case of Mccullough vs. the State of Maryland (4 Wheaton's Reports, 316) was an exact parallel to the Ohio situation. The Legislature of Maryland about a year before Ohio passed its tax law, had passed a law taxing the branches of the Bank of the United States in that State. The law was contested by Mccullough, the cashier of the United States Bank, in a case involving its constitutionality, and was decided at the February term, 1819, of the Supreme Court. The whole ground was carefully gone over by the Court, and an elaborate opinion delivered by Chief Justice Marshall. Concerning the gravity of the question involved, he said in the opening of his decision :
"In the case now to be determined, the defendant, a sovereign State, denies the obligation of a law enacted by the Legislature of the Union, and the plaintiff, on his part, contests the validity of an act which has been passed by the Legislature of that State." Continuing, the Chief Justice said:
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OF AN AMERICAN STATE
"The Constitution of our country, in its most interesting and vital parts, is to be considered; the conflicting powers of the government of the Union and its members, as marked in that Constitution, are to be discussed; and an opinion given which may essentially influence the great operations of the govern- ment. No tribunal can approach such a question without a deep sense of its importance, and of the awful responsibility involved in its decision."
Proceeding then to a thorough and learned dis- cussion of the powers of the States and the Govern- ment, especially in relation to the Bank, the Court solemnly declared:
"After the most deliberate consideration, it is the unanimous and decided opinion of this Court that the act to incorporate the Bank of the United States is a law made in pursuance of the Constitution, and is a part of the supreme law of the land."
It was further decided that:
"The Bank of the United States has, constitution- ally, a right to establish its branches or offices of discount within any State.
"The State, within which such branch may be established, cannot, without violating the Constitu- tion, tax that branch.
"The State Governments have no right to tax any of the constitutional means employed by the Govern- ment of the Union to execute its constitutional powers.
"The States have no power, by taxation or other- wise, to retard, impede, burthen or in any manner
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THE RISE AND PROGRESS
control the operations of the constitutional mean: enacted by Congress to carry into effect the power! vested in the National Government."
It was in the face of this decision that the Ohio authorities collected their tax. In the meantime the Bank secured an order of the United States Circuit Court sequestrating the money in the State Treasury until the final decision of the Supreme Court. Thwart- ed in the courts, the enemies of the Bank turned again to the Legislature. Ralph Osborn, the Auditor of State, reported all the proceedings had against him since the last session, and this report was referred to a joint committee of the House and Senate.
On December 12, 1820, this committee made a very remarkable and elaborate report. It may be found in its entirety in the House Journal of the Nineteenth General Assembly of Ohio. It denounced and repudiated the decision in the Mccullough case. The committee referred to it thus: "This agreed case was manufactured in the summer of 1818, and passed through the county court of Baltimore county, and the Court of Appeals of the State of Maryland, in the same season, so as to be got upon the docket of the Supreme Court of the United States, for adjudi- cation, at the February term, 1819." The decision was obtained, said the committee, through "a maneu- ver of consummate policy."
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