USA > Pennsylvania > The Register of Pennsylvania : devoted to the preservation of facts and documents and every other kind of useful information respecting the state of Pennsylvania, Vol. XII > Part 111
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Tables are annexed to this report showing the amount of toll received by each collector within the past year, and also the tonnage, &c. conveyed upon the canal and rail-way as required by law.
New Lines.
Since the commencement of the improvement system of Pennsylvania, there have from time to time been.intrc- duced into the laws making appropriations, restrictions with a view of guarding against frauds and preventing abuses. Some of these prudential guards around the Treasury have produced evils which the Canal Com- missioners consider it their duty to present to the Legis- lature for their consideration. And among these is the provision in the several acts passed within the last three years, for prosecuting the public works, which prohib- its the Canal Board from incurring debts for the com- pletion of new work under contract, on the faith of the State.
However wise and salutary such a prohibition may seem to be in principle, yet in practice it has delayed the completion of the canals and rail-ways, and greatly enhanced their cost. It is believed that the evils produc- ed by this provision in the canal laws, are much greater than any that could have taken place without it. It is evidently the wish of the public and the interest of the State, that the improvements should be completed as soon as possible after they are commenced.
Wben an appropriation is exhausted the whole line is broken up. The retained per centage, which is design- ed as a security for the faithfulness of contractors, has to be paid to them. And those contractors who have unprofitable jobs are certain to abandon them. Labor- ers are scattered, and make engagements elsewhere ; and they do not willingly return to a line where em- ployment is so uncertain.
The laws making appropriations are always passed late in the session of the Legislature. After which the scattered corps of Engineers have to be collected and reorganized. Jobs have to be advertised and let-and contracts entered into. Contractors have to collect la- borers, teams, provisions, &c .; by which the best sea- son for doing work is wasted, and of course their prices for the work must correspond with the disadvantages.
Every thing which encourages re-letting is most per nicious in its effects. It destroys the responsibility and laudable pride which good contractors take in complet- ing their jobs faithfully. It encourages a spirit of spe- culation or gambling in chances. It covers such lines with many bad contractors, and it enhances the cost and delays the work unreasonably.
While the public works are constructing, they are subject to many casualties which cannot be foreseen or estimated; such as floods, quicksands, hill-slips, a rise in labour or provisions, and a difficulty in procuring materi-
als: and as a necessary consequence, numerous re-lettings at much higher prices-by which the appropriation may be exhausted before the line is completed. A ca- nal may be nearly ready to receive the water, when the remaining work undone must be suspended, and the completion and use of the line postponed until an- other season.
The evil effects of the restriction are still more obvi- ous on the rail roads. The iron rails, pins, and wedges, and a large proportion of the chairs have to be procur- ed in England. And it has been found almost impossi- ble to advertise for proposals-make contracts-send out orders-get the iron manufactured to pattern-have it imported and laid on the railway during the same sea- son in which the law is passed making the appropria- tion.
The legal impediments which caution or perhaps prudence has thus erected in the path of the public agents, have delayed the completion of all the lines au- thorized by the act of the twenty-first of March, 1831, (except the Frankstown line of the Juniata division) for at least one year longer than was anticipated at their commencement, and, owing to causes just detailed, have greatly increased their expense. But while duty has enjoined a rigid compliance with legal requirements, however embarrassing they may have been, patience and perseverance have surmounted the numerous ob- stacles met with in the prosecution of the work; and it now only requires the efforts of another season, to finish all the canals and rail roads of the State, which the laws at present authorize.
As soon after the passage of the act of the sixteenth of February, 1833, as was practicable, operations were recommenced on all the lines for which appropriations were made in that act; since which time, the works have been prosecuted steadily, and upon several of the lines, with great zeal and energy towards completion. A more particular statement of the condition of each line, will be given under their respective heads.
(Remainder next week. )
From the Columbian Spy. MINERALOGY.
On the farm of Mr. Joel Jackson, of Little Britain township in this county, is found octahedral magnetic oxide of iron, in the serpentine ridge.
Massive and crystallized ferruginous oxide of Chrome, or chromate of iron, occurs on a minor ridge of ser- pentine, about a mile north of the main serpentine ridge, on the property of McKim, Sims & Co. of Balti- more, adjoining Joel Jackson's farm. The d'sintegrat- ed crystals of chromate of iron, are found coating the cavities of all the ravines made in the sides of the hill, and indicate the existence of this valuable material in quantity.
Magnesite. An extensive locality of this valuabl mineral occurs, forming veins in the serpentine of con siderable thickness, same locality; and is now exten- sively quarried and manufactured by McKim, Sims & Co. into sulphate of magnesia, (Epsom Salts.) These gentlemen have succeeded in making a purer salt at a much less price than it can be imported; and the Unit- ed States are now almost entirely supplied from this es- tablishment. Several hundred tons of magnesite have been obtained from this locality, and Wessrs. McKim & Sims manufacture 1,500,000 lbs. of Epsom salt annu- ally.
Actynolite, in green compressed crystals, in talc, serpentine ridge on Joel Jackson's farm.
Noble Serpentine, with delicate veins of amianthus, serpentine ridge on Jackson's farm.
Chalcedony. An interesting locality of this mineral occurs near the magnesite and chromate of iron, above described.
November 15.
391
DEPOSITS-BANK OF THE UNITED STATES.
1833. ]
THE REGISTER.
PHILADELPHIA, DEC. 21, 1833.
A desire to place the two important papers which are commenced in the present number, in this volume which will terminate next week-precludes an inser- tion of many miscellaneous articles properly belong- ing, in point of time, to this portion of our work-and compels us to postpone them till the next volume-as the remainder of the two documents before alluded to, will occupy the whole of our space in the subsequent number.
Gen. M'Kean has been elected by the Legislature, a Senator of the United States. The vacancy in the office of Secretary of State occasioned thereby, has, by the appointment of the Governor, been filled by the nomination of James Findley, late Speaker of the House of Representatives.
On Saturday night last, a severe snow storm occur- red-and on Sunday night a most violent northeaster commenced, which did great damage to shipping at the wharves, and to many houses in the city.
PUBLIC DEPOSITES.
The importance of the questions which are under discussion not only in the legislature of the United States, but in the mind of every reflecting citizen, of all parties, in relation to the public deposites, is so unusu- ally great-and the necessity of reference to documents is of such constant occurrence, that we have thought we could not render a greater service to our subscri- bers, than to publish in continuity, and consequently with the advantage of juxtaposition, every official pa- per bearing upon this topic. The peculiar duty of the " Register" being to preserve a record of all public acts of general interest, the absence of these papers might justly be deemed an unwarrantable departure from its proper course. The reasons of the Chief Magis- trate, and the report of the Government Directors have been already published. We now proceed to the re- port of the Committee of the Bank of the United States, in reply to those two documents. The reasons assign- ed by Mr. Taney, Secretary of the Treasury, to Con- gress, and other official papers will follow in due course.
BANK UNITED STATES, Tuesday, Dec. 3d, 1833.
At an adjourned meeting of the Board of Directors held this evening,
Present, N. Biddle, President.
Messrs. Willing
Fisher
Lewis
Eyre
Lippincott Holmes
Bevan
Chauncey Gilpin
White
Newkirk
Sullivan
Sergeant
Macalester
Wager
Mr. Chauncey, from the special committee appointed on the 24th September, presented the following Re- port, which was read.
Whereupon, Mr. Chauncey moved the following re- solution,-
Resolved, That the said report with the accompany- ing resolution, be adopted.
Upon this motion the yeas and nays were called for, when it was carried by a vote of 12 !o 3, as follows.
Yeas-Wessrs. Willing, Eyre, Bevan, White, Ser- geant, Fisher, Lippincott, Chauncey, Newkirk, Lewis, Holmes, Biddle, 12.
Nays-Messrs. Gilpin, Sullivan, Wager, 3.
On motion it was Resolved, that 5000 copies of the said report be printed for the use of the Stockholders of the Bank.
Extract from the minutes. S. JAUDON, Cashier.
REPORT.
The Committee to whom was referred on the 24th of September, a paper signed "Andrew Jackson," pur- porting to have been read to a Cabinet on the 18th, and also another paper signed "HI. D. Gilpin, Jolın T. Sullivan, Peter Wager, and Hugh M'Elderry," bearing date August 19th, 1833-with instructions to consider the same, and report to the Board "whether any, and what steps may be necessary on the part of the Board in consequence of the publication of said letter and re- port," beg leave to state-
That they have carefully examined these papers, and will now proceed to report the result of their reflec- tions in regard to them.
In order, however, to render them more intelligible, it will be proper to recall to the attention of the Board, the actual relations which the Bank has for some years past borne to the Executive.
Since the establishment of the Institution it has de- voted itself anxiously and exclusively to the purposes of its creation, the restoration of the currency, the maintenance of the general credit, and the accommoda- tion of the internal and foreign trade of the country. That it has not failed in these objects-that it has in- deed realized more than the anticipations of the most sanguine, is attested by all parts of the community. It was in the midst of this career of inoffensive useful- ness, when soon after the accession to power of the pre- sent Executive, the purpose was distinctly revealed that other duties than those to the country were requir- ed-and that it was necessary for the Bank in admin- istering its affairs, to consult the political views of those who had now obtained the ascendency in the Execu- tive. It is understood that soon after that event a meeting was held in Washington of the principal chiefs, to consider the means of perpetuating their new au- thority, and the possession of the Bank was among the most prominent objects of the parties assembled. The first open manifestation of this purpose was in June, 1829, when a concerted effort was made by the execu- tive officers to interfere in the election of the Board of Directors at Portsmouth, At the head of this attempt was Mr. Levi Woodbury, now a member of the present Cabinet at Washington, who did not hesitate to avow in a letter to the Secretary of the Treasury, which, though marked "confidential" was consequently ordered to be published by the Committee of Investigation in 1832- that he wished the interference of the Government to remove the President of the Branch at Portsmouth, of whom he says :-
" The new President, Jeremiah Mason, is a particu- lar friend of Mr. Webster, and his political character is doubtless well known to you,"-and he requests the Secretary of the Treasury " to communicate with some of the Directors of the Mother Bank in favour of such a change."
392
DEPOSITS-BANK OF THE UNITED STATES.
[ DECEMBER
This letter of Mr. Woodbury was transmitted to the Bank by the Secretary of the Treasury, who stated that "from some expressions in his letter, it may be inferred that it is partly founded on a supposed application of the influence of the Bank, with a view to political ef- fect"-in consequence of which he deemed it his duty to present it to the Bank, " with the views of the admin- istration in relation to it." At the same time, Mr. Isaac Hill, acting as the Comptroller of the Treasury until rejected by the Senate, and now a Senator of the Unit- ed States, sent a memorial from the members of his po- litical party in the Legislature of New Hampshire, re- questing the removal of Mr. Mason. In another com- munication presented to the Bank, he gave it as his opinion, that no measures short of Mr. Mason's remov- al would tend "to reconcile the people of New Hamp- shire to the Bank," and that " the friends of General Jackson in New Hampshire, have had but too much reason to complain of the management at Portsmouth." Finally, the Secretary of War ordered the transfer of the pension fund from the Branch Bank at Portsmouth to another Bank in Concord, an act so obviously in vio- lation of the laws, that it was first resisted by the Bank, and then retracted by the Secretary.
It became then manifest to the Bank, that there was a combined effort to render the Institution subservient to political purposes; and that it was necessary to cone to some immediate and distinct understanding of its rights and duties. This was done in the correspondence of the President of the Bank with the. Secretary of the Treasury, of which the following passages will indicate the general purport.
"Presuming that we have rightly apprehended your views, and fearful that the silence of the Bank might be hereafter misconstrued into an acquiescence in them, I deem it my duty to state to you in a manner perfect- ly respectful to your official and personal character, yet so clear as to leave no possibility of misconception, that the Board of Directors of the Bank of the United States, and the Board of Directors of the Branches of the Bank of the United States, acknowledge not the slightest re- spunsibility of any description whatsoever to the Sec- retary of the Treasury touching the political conduct of their officers, that being a subject on which they never consult, and never desire to know the views of any ad- ministration."
Again :- " Accordingly the act of Congress simply declares, 'that for the management of the affairs of the said Corporation, there shall be twenty-five Directors.' When these are chosen, the whole administration of the Bank is committed to their exclusive care. Their re- sponsibility for the management of it is to Congress, and to Congress alone: but no Executive Officer of the Go- vernment, from the President of the United States downwards, has the slightest authority to interfere in it; and there can be no more warrant for suggesting the views of the administration to the Bank of the United States than to the Supreme Court of the United States."
Finally :- " For the Bank, which has specific duties to perform, and which belongs to the country and not to any party, there is but one course of honour or of safe- ty. Whenever its duties come in conflict with the spirit of party, it should not compromise with it, nor capitulate to it, but resist it-resist it openly and fearlessly. In this its interest concurs with its duty, for it will be found at last, such is the good sense of the country, that the best mode of satisfying all parties is to disregard them all."
These extracts reveal the whole secret of the hostili- ty to the Bank of those, who, finding it impossible to bend it to their purposes, have resolved to break it. For this purpose, all the poisoned weapons of political warfare have, for the last four years, been unsparingly and unceasingly employed against the Institution. Thus far their efforts have failed-they have been defeated before Congress, and discountenanced by the commu-
nity. But now, being relieved from the presence of Congress, and the legal guardian of the public revenue being removed, they have ventured on this last act of violence.
To justify this measure is the purpose of the paper signed, "Andrew Jackson." Of the paper itself, and of the individual who has signed it, the Committee find it difficult to speak with the plainness by which alone such a document, from such a source, should be describ- ed, without wounding their own self-respect, and vio- lating the consideration which all American citizens must feel for the chief magistracy of their country. Subduing, however, their feelings and their language down to that respectful tone which is due to the officer -they will proceed to examine the history of this mea- sure, its character and the pretexts offered in palliation of it. Of these in their order --
1st: It would appear from its contents and from oth- er sources of information, that the President had a meeting of what is called the Cabinet, on Wednesday the 18th Sept., and there read this paper. Finding that it made no impression on the majority of persons assembled, the subject was postponed, and in the mean time this document was put into the newspapers. It was obviously published for two reasons. The first was to influence the members of the Cabinet by bring- ing to bear upon their immediate decision the first pub- lic impression excited by misrepresentations, which the objects of them could not refute in time-the second was, by the same excitement, to affect the approaching elections in Pennsylvania, Maryland, and New Jersey. The first design is apparent from the fate which has be- fallen these counsellors. Whilst something was hoped from their fears, it was expedient to flatter them, keep- ing in reserve behind these blandishments, the power to punish disobedience. "By the terms of the Char- ter," the President says, "the public money is to be deposited in the Bank during the continuance of its Charter, unless the Secretary of the Treasury shall otherwise direct." "Unless, therefore, the Secretary of the Treasury first acts, Congress have no power over the subject, and consequently the public money must remain in that institution until the last hour of its existence, unless the Secretary of the Treasury shall remove it at an earlier day;" and again, "the power of the Secretary of the Treasury over the deposites is un- qualified."
Having thus argued the Secretary of the Treasury into an exclusive control of the deposites, the President proceeds to give his reasons why the Secretary should remove them, concluding with this remark-"Far be it from him to expect or require that any member of the Cabinet should at his request, order, or dictation, perform any act which he believes unlawful, or in his conscience condemns." Yet notwithstanding these ex- pressions of humility, the moment the Secretary of the Treasury dares to resist this intrusion into his Depart- ment, and refuses to do what "his conscience con- demns," he is immediately dismissed from his office, and denounced in the official Gazette as a "refractory subordinate." The same official announces to the oth- er two offending ministers, "that however he may re- gret the difference of opinion," the President still thinks "that the measure is one upon which the mem- bers may conscientiously differ from the President and from each other;" that is to say, that they are not yet to be dismissed for expressing their opinions, the Pre- sident being appeased by the sacrifice of the most con- tumacious of the opposition.
Its purpose to influence the elections is attested by the triumphant exultation of the Official Gazette, that-
"We have received intelligence which authorizes the belief, that, in the late election in Pennsylvania, the Legislature of that State has undergone a change which will give the Jackson party a majority of two-thirds, and the same result has been accomplished in Mary - land. We learn from sources to be relied on, that the
.
1833.]
DEPOSITS-BANK OF THE UNITED STATES.
393
success of the Jackson ticket in some of the Anti-Jack- son counties in Maryland, was secured by the late ex- positions of the corruptions of the Bank, read by the President to his Cabinet-and we have no doubt that it had its effect on all the recent elections."
2d. The indelicacy of the form of these proceedings corresponds well with the substance of them, which is equally in violation of the rights of the Bank and the laws of the country.
The Bank of the United States was chartered by Con- gress for certain national purposes; and as it was thought expedient to obtain the skill and vigil ince of private in- terest in managing the institution, the citizens general- ly were invited to unite their private fortunes with the public capital. They did so, and the charter of the Bank is in fact an act of partnership between the Go- vernment and the Stockholders, specifying the rights and duties of each party. In the charter of the first Bank of the United States, there was on the part of the Bank no payment of a bonus-no obligation to transfer the public funds-no performance of the du- ties of the Loan Office-while on the part of the go- vernment there was no stipulation to give the use of the deposits. This defect was supplied in the charter of the present Bank by positive agreement. Thus the Bank, in addition to its arduous duty of resorting and sustaining the general currency, agreed by the 15th section, "to give the necessary facilities for transferring the public funds from place to place within the United States or the territories thereof, and for distri- buting the same in payment of the public creditors, without charging commission, or claiming allowance on account of difference of exchange; and shall also do and perform the several and respective duties of the Commissioners of Loans for the several states, or of any one or more of them, whenever required by law."
And again, the 20thsection declares-"That in con- sideration of the exclusive privileges and benefits con- ferred by this act upon the said Bank, the President, Directors, and Company thereof, shall pay to the Unit- ed States out of the corporate funds thereof, the sum of one million and five Hundred thousand dollars."
Such was the consideration to be given by the Bank. The consideration to be given by the Government, was "that the deposits of the money of the U. States in places in which the said Bank and Branches thereof may be established, shall be made in said Bank or Branches thereof,unless the Secretary of the Treasury shall other- wise order and direct; in which case the Secretary of the Treasury shall immediately lay before Congress, if in session, and if not, immediately after the commence- ment of the session, the reasons of such order and di- rection."
This contract was deemed so unfavourable to the cit- izens generally, that on the opening of the books, the subscription was not filled, from a belief that the in- vestment upon such terms could not be advantageous- an anticipation too well realized by the fact that the stockholders have never yet received the legal rate of interest on the principal subscribed. But the only temp- tation by which they could be induced to unite with the Government was, that while on the one hand they paid in advance to the Government a million and a half of dollars, and performed certain stipulated duties, they should have the benefit of the deposit of public funds until they were wanted in the public disbursements. These were the two essential stipulations -nay, they were in fact almost the only ones. This was the opinion of the Committee of Finance of the Senate, when on a proposition to make the Bank pay for the use of the Deposits, they reported on the 21st of April, 1828, that "the 16th section directs that the deposits of the mo- ney of the United States shall be made in the Bank and its branches. No change can be made therein without a direct violation of the charter, which the faith of the nation is bound to sustain. No view of that kind could be contemplated by any person, and none, it is presum- VOL. XII. 50
ed, has been contemplated"-and they further declare their opinion, that in the bonus and the services render- ed by the Bank, " the United States have been amply paid for all the advantages derived from the deposits of their funds in the Bank and its branches." The same views are expressed in another report of the Committee of Finance of the Senate on the 20th of February, 1829. "The Committee repeat their opinion that the charter gives to the Bank the use of the public deposits without any other remuneration than such as are distinctly au- thorized in that instrument; that the exaction of any other would, in the opinion of the Committee, be a direct vi- olation of the charter. The 16th section says distinctly, that the deposits of the money of the United States "shall be made in the Bank of the United States and its Branches." This is positive and can not be misun- derstood. The 20th section says, 'that in considera- tion of the exclusive privileges and benefits conferred by this act upon the said Bank, the President and Di- rectors, and Company thereof, shall pay to the United States $1,500,000.' The Bank was to pay and has paid the million ard a half of dollars. For what? For the exclusive privileges and benefits conferred by this act. What are the benefits? The Committee can perceive none except the deposits for which the Bank has actu- ally paid already."
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