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 60
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There are other important facts not in the contem- plation of the House of Representatives, or not known to the members at the time they voted for the resolu- tion.
Although the charter and the rules of the Bank both declare that "not less than seven directors" shall be ne- cessary to the transaction of business, yet the most im- portant business, even that of granting discounts to any extent, is entrusted to a committee of five members, who do not report to the Board.
To cut off all means of communication with the Go- vernment in relation to its most important acts, at the commencement of the present year, not one of the Government Directors was placed on any one Commit- tee. And although, since, by an unusual re-modelling of those bodies, some of those directors have been placed on some of the Committees, they are yet entirely excluded from the Committee of Exchange, through which the greatest and most objectionable loans have been made.
When the Government Directors made an effort to bring back the business of the Bank to the Board, in obedience to the charter and the existing regulations, the Board not only overruled their attempt, but altered the rule so as to make it conform to the practice, in di- rect violation of one of the most important provisions of the charter which gave them existence.
It has long been known that the President of the Bank, by his single will, originates and executes many of the most important measures connected with the management and credit of the Bank, and that the Com- mittee, as well as the Board of Directors, are left in entire ignorance of many acts done, and correspondence carried on, in their names and apparently under their authority. The fact has been recently disclosed, that an unlimited discretion lias been, and is now, vested in the President of the Bank to expend its funds in pay- ment for preparing and circulating articles and purchas- ing pamphlets and newspapers, calculated by their contents to operate on elections, and secure a renewal of its charter. It appears from the official report of the Public Directors, that, on the 30th of November, 1830, the President submitted to the Board an article publish- ed in the American Quarterly Review, containing favo- rable notices of the Bank, and suggested the expedien- cy of giving it a wider circulation at the expense of the Bank; whereupon the Board passed the following reso- lution, viz.
"Resolved, That the President be authorised to take such measures in regard to the circulation of the con- tents of the said article, either in whole or in part, as he may deem most for the interest of the Bank."
By an entry in the minutes of the Bank, dated March 11th, 1831, it appears that the President had not only caused a large edition of that article to be issued, but had also, before the resolution of 30th November was adopted, procured to be printed and widely circulated, numerous copies of the Reports of General Smith and Mr. McDuffie in favor of the Bank, and on that day he suggested the expediency of extending his power to the printing of other articles which might subserve the purposes of the institution. Whereupon the following resolution was adopted, viz.
"Resolved, That the President is hereby authorised to cause to be prepared and circulated, such documents and papers as may communicate to the people informa- tion in regard to the nature and operations of the Bank."
1831 and 1832, were about $80,000. For a portion of these expenditures vouchers were rendered, from which it appears that they were incurred in the purchase of some hundred thousand copies of newspapers, reports and speeches made in Congress, reviews of the Veto Message, and reviews of speeches against the Bank, &c. &c. For another large portion no vouchers what- ever were rendered, but the various sums were paid on orders of the President of the Bank, making reference to the resolutions of the 11th March, 1831.
On ascertaining these facts, and perceiving that ex- penditures of a similar character were still continued, the Government Directors a few weeks ago offered a resolution in the Board, calling for a specific account of these expenditures, showing the objects to which they had been applied, and the persons to whom the money had been paid. This reasonable proposition was voted down.
They also offered a resolution rescinding the resolu- tions of November, 1830, and March, 1831. This also was rejected.
Not content with thus refusing torecal the obnoxious power, or even to require such an account of the ex- penditure as would show whether the money of the Bank had in fact been applied to the objects contem. plated by those resolutions, as obnoxious as they were. the Board renewed the power already conferred, and even enjoined renewed attention to its exercise, by adopting the following in lieu of the propositions sub- mitted by the Government Directors, viz:
"Resolved, That the Board have confidence in the wisdom and integrity of the President, and in the pro- priety of the resolutions of 30th November, 1830, and 11th March, 1831, and entertain a full conviction of the necessity of a renewed attention to the object of those resolutions, and that the President be authorized and requested to continue his exertions for the promotion of said object."
Taken in connexion with the nature of the expendi- tures heretofore made, as recently disclosed, which the Board not only tolerate but approve, this resolution puts the funds of the Bank at the disposition of the President for the purpose of employing the whole press of the country in the service of the Bank, to hire writers and newspapers, and to pay out such sums as he pleases, to what persons and for what purposes he pleases, without the responsibility of rendering any specific account. The Bank is thus converted into a vast electioneering engine, with means to embroil the country in deadly feuds, and, under cover of expenditures, in themselves improper, extend its corruption through all the ramifi- cations of society.
Some of the items for which accounts have been ren- dered, show the construction which has been given to the resolutions, and the way in which the power it con- fers has been exerted. The money has not been ex- pended merely in the publication and distribution of speeches, reports of Committees, or articles written for the purpose of showing the constitutionality or useful- ness of the Bank. But publications have been pre- pared and extensively circulated, containing the gross- est invectives against the officers of the Government; and the money which belongs to the stockholders and to the public, has been freely applied in efforts to de- grade, in public estimation, those who were supposed to be instrumental in resisting the wishes of this grasp- ing and dangerous institution. As the President of the Bank has not been required to settle his accounts, no one but himself yet knows how much more than the sum already mentioned may have been squandered, and for which a credit may hereafter be claimed in his ac- count under this most extraordinary resolution. With these facts before us, can we be susprised at the torrent of abuse incessantly poured out against all who are supposed to stand in the way of the cupidity or ambition
1833.]
THE PRESIDENT'S REASONS FOR REMOVING THE PUBLIC DEPOSITES.
205
of the Bank of the United States? Can we be surprized at sudden and unexpected changes of opinion in favour of an institution which has millions to lavish, and avows its determination not to spare its means when they are necessary to accomplish its purposes? The refusal to render an account of the manner in which a part of the money expended has been applied, gives just cause for the suspicion that it has been used for purposes which it is not deemed prudent to expose to the eyes of an intel- ligent and virtuous people. Those who act justly, do not shun the light, nor do they refuse explanations when the propriety of their conduct is brought into question.
With these facts before him, in an official report from the Government Directors, the President would feel that he was not only responsible for all the abuse and corruptions the Bank has committed, or may commit, but almost an accomplice in a conspiracy against that Government which he has sworn honestly to administer, if he did not take every step within bis constitutional and legal power likely to be efficient in putting an end to these enormities. If it be possible, within the scope of human affairs, to find a reason for removing the Go. vernment deposites and leaving the Bank to its own resource for the means of effecting its criminal designs, we have it here. Was it expected when the moneys of the United States were directed to be placed in that Bank, that they would be put under the control of one man, empowered to spend millions without rendering a voucher or specifying the object? Can they be consi- dered safe with the evidence before us, that tens of thousands have been spent for highly improper, if not corrupt purposes, and that the same motive may lead to the expenditure of hundreds of thousands, and even milllons more? And can we justify ourselves to the people by longer lending to it the money and power of the Government, to be employed for such purposes?
It has been alleged by some as an objection to the removal of the deposites, that the Bank has the power, and in that event, will have the disposition, to destroy the State Banks employed by the Government, and bring distress upon the country. It has been the for- tune of the President to encounter dangers which were represented as equally alarming, and he has seen them vanish before resolution and energy. Pictures equally appalling were paraded before him when this Bank came to demand a new charter. But what was the re- sult? Has the country been ruined, or even distressed? Was it ever more prosperous that since that act? The President verily believes the Bank has not the power to produce the calamities its friends threaten. The funds of the Government will not be annihilated by being transferred. They will immediately be issued for the benefit of trade, and if the Bank of the United States curtails its loans, the State Banks, strengthened by the public deposites, will extend theirs. What comes in through one Bank, will go out through others, and the equilibrium will be preserved. Should the Bank, for the mere purpose of producing distress, press its debtors more heavily than some of them can bear, the consequences will recoil upon itself, and in the attempts to embarrass the country, it will only bring loss and ruin upon the holders of its own stock. But if the President believed the Bank possessed all the power which has been attributed to it, his determination would be only rendered the more inflexible. If, indeed, this corpora- tion now holds in its hands the happiness and prosperity of the American people, it is high time to take the alarm. If the despotism be already upon us, and our only safety is in the mercy of the despot, recent devel- opments in relation to his designs and the means he employs, show how necessary it is to shake it off. The struggle can never come with less distress to the people, or under more favourable auspices than at the present moment.
All doubt as to the willingness of the State Banks to undertake the service of the Government, to the same i
extent, and on the same terms, as it is now performed by the Bank of the United States, is put to rest by the report of the agent recently employed to collect infor- mation; and from that willingness, their own safety, in the operation may be confidently inferred. Knowing their own resources better than they can be known by others, it is not to be supposed that they would be wil- ling tu place themselves in a situation which they cannot occupy without danger of annihilation or embarassment. The only consideration applies to the safety of the pub- lic funds, if deposited in those institutions. And when it is seen that the directors of many of them are not only willing to pledge the character and capital of the corporations in giving success to this measure, but also their own property and reputation, we cannot doubt that they, at least, believe the public deposites would be safe in their management. The President thinks that these facts and circumstances afford as strong a guaran- tee as can be had in human affairs, for the safety of the public funds and the practicability of a new system of collection and disbursement through the agency of the State Banks.
From all these considerations the President thinks that the State Banks ought immediately to be employed in the collection and disbursement of the public revenue, and the funds now in the Bank of the United States drawn out with all convenient despatch. The safety of the public moneys, if deposited in the State Banks, must be secured beyond all reasonable doubts; but the extent and nature of the security, in addition to their capital, if any be deemed necessary, is a subject of de- tail to which the Treasury Department will undoubted- ly give its anxious attention.
The Banks to be employed must remit the moneys of the Government without charge, as the Bank of the United States now does; must render all the services which that Bank now performs; must keep the Go- vernment advised of their situation hy periodical re- turns; in fine, in any arrangement with the State Banks, the Government must not, in any respect, be placed upon a worse footing than it now is. The President is happy to perceive by the report of the agent, that the Banks which he has consulted have, in general, con- sented to perform the service on these terms, and that those in New York have further agreed to make pay- ments in London without other charge than the mere cost of the bills of exchange.
It should also be enjoined upon any Banks which may be employed, that it will be expected of them to facili- tate domestic exchanges for the benefit of internal com- merce; to grant all reasonable facilities to the payers of the revenue; to exercise the utmost liberality towards the other state banks; and do nothing uselessly to em- barass the Bank of the United States.
As one most serious objection to the Bank of the United states, is the power which it concentrates, care must be taken in finding other agents for the service of the Treasury, not to raise up another power equally for- midable. Although it would probably be impossible to produce such a result by any organization of the State Banks which could be devised-yet it is desirable to avoid even the appearance. To this end it would be ex- pedient to assume no more power over them, and inter- fere no more in their affairs than might be absolutely necessary to the security of the public deposites, and the faithful performance of their duties as agents of the Treasury. Any interference by them in the political contests of the country, with a view to influence elec- tions, ought, in the opinion of the President, be follow- ed by an immediate discharge from the public service.
It is the desire of the President that the control of the Banks and the currency shall, as far as possible, be entirely separated from the political power of the coun- try, as well as wrested from an institution, which has already attempted to subject the Government to its will. In his opinion, the action of the General Govern-
206
THE MAD RIVER AND LAKE ERIE RAIL ROAD.
[SEPTEMBER
ment on this subject, ought not to extend beyond the grant in the Constitution, which only authorizes Con- gress, "to coin money and regulate the value thereof;" all else belongs to the States and the people, and must be regulated by public opinion and the interests of trade.
In conclusion, the President must be permitted to re- mark, that he looks upon the pending question as of higher consideration than the mere transfer of a sum of money from one Bank to another. Its decision may affect the character of our Government for ages to come. Should the Bank be suffered longer to use the public monies, in the accomplishment of its purposes, with the proofs of its faithlessness and corruption before our eyes, the patriotic among our citizens will despair of success in struggling against its power; and we shall be responsible for entailing it upon our country for ever. Viewing it as a question of transcendent importance, both in the principles and consequences it involves, the President could not, in justice to the responsibility which he owes to the country, refrain from pressing upon the Secretary of the Treasury his view of the considerations which impel to immediate action. Upon him has been devolved by the Constitution and the suffrages of the American people, the duty of superin- tending the operations of the Executive departments of the Government, and seeing that the laws are faith- fully executed. In the performance of this high trust, it is his undoubted right to express to those whom the laws and his own choice have made his associates in the administration of the Government, his opinion of their duties under circumstances as they arise. It is this right which he now exercises. Far be it from him to expect or require, that any member of the Cabinet, should, at his request, order or dictation, do any act which he believes unlawful, or in his conscience condemns. From them, and from his fellow citizens in general, he desires only that aid and support which their reason approves, and their conscience sanctions.
-
In the remarks he has made on this all important question, he , trusts the Secretary of the Treasury will see only the frank and respectful declarations of the opinions which the President has formed on a measure of great national interest, deeply affecting the charac- ter and usefulness of his administration; and not a spir- it of dictation, which the President would be as careful to avoid, as ready to resist. Happy will he be, if the facts now disclosed produce uniformity of opinion and unity of action among the members of the administra- tion.
The President again repeats that he begs his Cabinet to consider the proposed measure as his own, in the support of which he shall require no one of them to make a sacrifice of opinion or principle. Its responsi- bility has been assumed, after the most mature deliber. ation and reflection, as necessary to preserve the morals of the people, the freedom of the press, and the purity of the clective franchise, without which all will unite in saying that the blood and treasure expended by our forefathers in the establishment of our happy system of Government will have been vain and fruitless. Under these convictions, he feels that a measure so important to the American people, cannot be commenced too soon; and he therefore names the first day of October next as a period proper for the change of the deposites, or sooner, provided the necessary arrangements with the State Banks can be made.
ANDREW JACKSON.
MAD RIVER AND LAKE ERIE RAIL ROAD.
and will, unless counteracted, direct to that city much of the trade of the fertile and improving country through which it passes. Fortunately, however, for this state, this counteraction may readily be effected; and all the expense, and enterprize, and labor of the citizens of New York, may readily be converted to the advantage of Pennsylvania. Several different plans have been suggested for this purpose. One, which has been stre- nuously urged by the citizens of Columbiana and Starke counties, Ohio, and by many of the citizens of this city, is the completion of a rail road from this city to Massil- lon, and its extension in a line nearly due west, to the Mad River Rail road, near upper Sandusky, passing through, or near the county towns of Wooster, Mans- field, and Bucyrus. The distance from Massillon to the rail road would be about ninety miles, making the whole distance from Pittsburg, a little less than two hundred miles. Another plan, is to complete the most eligible connection with the Ohio canal, and then extend a rail road from Cleaveland to Sandusky city, along the lake, a distance of about fifty-seven miles by the present road. A third plan is, to complete the best connection with the Ohio canal, and to rely upon the advantage which na- ture gives us, in contending for the trade afloat on lake Erie, by its earlier opening at Cleaveland in the spring, and its long continued navigableness at that place in the fall. The latter plan has the recommendation of being the least expensive, and it can be the more safely adopted because it is of itself a most important improve- ment, and because, if it should prove insufficient to se- cure the trade of the Mad River rail road, it would at least secure that of the country- through which the ca- nal passes, and might afterwards be perfected by a rail road, either from Massillon, or Akron, or Cleaveland, if deemed necessary.
The New York editor takes great credit to his fellow citizens, for their enterprize and public spirit-they well deserve it; and we trust their example will be fol- lowed by the citizens of the metropolis of Pennsylvania. -Pitts. Gazette.
From the New York Spectator of Sept. 9. -
Owing to the fortunate position of our city by nature, and the aids she has received from art and industry, it happens that almost every improvement that is made in the interior, whether in this or in the remoter states, redounds to the benefit of New York. All the canals and rail roads that are constructed, do, in effect, by their connection with existing means of communication, facilitate the conveyance of goods from this city to their places of consumption, and of the produce of the coun- try in return. Hence it is, that the people of New York have a direct and palpable interest in giving encourage- ment to works of internal improvement, far beyond the local limits of our state.
This subject has been brought more directly under our consideration in consequence of perceiving that ef- forts are about being made to carry into effect a law of the state of Ohio, which was passed in January, 1832, to incorporate " the Mad River and Lake Erie Rail Road Company."
Its style does not disclose to the superficial reader the true character and object of the work, which is to unite the waters of Lake Erie with those of the Ohio river.
The route of this road, as we learn from a western correspondent, will be nearly parallel with the great Ohio canal, seventy or eighty miles west of it, and passes through a section of country unsurpassed for the rich- ness and fertility of its soil, by any other in the union. The beauty of the country may be managed by those acquainted with western scenery; but to such as are unacquainted with the capacity and inexhaustible fer-
We select to-day, from the New York Spectator, a very full account of this great and important contem- plated improvement, and of the country through which it passes. This Rail road is a work well worthy the en- terprize and public spirit of the citizens of New York; tility of our southwestern states, their noble rivers and
1833.]
ROBERT ORR.
207
streams, fitted for navigation and hydraulic purposes, its boundless prairies and plains, and its majestic fo- rests, an attempt at description would be labour lost. The distance from Sandusky to Dayton, by the course of the road, as laid down in the preliminary survey, which has been completed by the corps of the United States' Engineers detached for the purpose, under the direction of Col. Stansbury, is 153 miles. From Dayton it connects with the Ohio river, at Cincinnati, by means of the Miami canal, sixty-five miles. The principal places on the route of the road are Tiffin, Bellefontaine, Urbana, Springfield, and Fairfield. The four first men tioned places are seats of justice, of the counties of Se- neca, Logan, Champaigne,and Clark, respectively. The route passes near to Upper Sandusky, in the Wyan- dot Reserve, the head quarters of the Wyandot Indians. Tiffin is on the Sandusky river, thirty-five miles south- west of Sandusky city, (as Sandusky on Lake Erie is called, to distinguish it from Lower Sandusky, Upper Sandusky, Little Sandusky, and several other places in the state, bearing the same soft cognomen, )-thirty- nine miles south of Tiffin, the route crosses the Scioto river, which is here quite a small stream, and from thence to Bellefontaine is twenty-three miles. Urbana is eighteen miles south of Bellefontaine. Between the two last mentioned places, the route crosses the Mad River, along the fertile valley of which it runs for most of the distance to Dayton. Springfield is fourteen miles south of Urbana, and is distant forty-three miles from Columbus. This is a delightful and flourishing town, containing about 1,500 inhabitants, enjoying the ad- vantage of considerable water power, derived from Buck creek, on which are situated several mills; and receiving, at its eastern entrance, the great national road, which passes through the centre of the states of Ohio, Indiana,and Illinois. The route of the road then continues from this point fourteen miles to Fairfield, which is situated nine miles north of Dayton, the point of its proposed termination.
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