August, they were posted in front; the loss sustained by the enemy was produced, in a great degree, by its militia, and some amongst the best of its citizens bled or fell. The enemy next threatened Baltimore itself, upon which its people, old and young, of all classes, exerted themselves to the utmost, and with the most FEBRUARY, 1815. Mr. TAYLOR, from the committee to whom was referred the bill, entitled "An act to amend the act laying duties on licenses to retailers of wines, spirituous liquors, and foreign merchandise," reported it without amendment. The Senate resumed the consideration of the amendments of the House of Representatives to the bill, entitled "An act to extend the time of Oliver Evans's patent, for his improvement on steam engines," and concurred therein. BANK OF THE UNITED STATES. uncommon energy, in erecting works of defence, and making preparations to meet him, and, by the most unremitting and indefatigable labors, their city was put into a tolerable state of defence by the time he appeared before it. And the city feels great pride in the rocollection that, on the day so memorable to it, the 12th of September, the constancy, fortitude, and courage of its citizen soldiers will bear a comparison with bill, passed by the two Houses, entitled "An act those of any other people on earth. Its citizens, some of whom had borne arms in their country's defence in to incorporate the subscribers to the Bank of the the war of the Revolution, and her youth, met the enUnited States of America," which was presented emy in advance, and were everywhere the first among to the President of the United States for approthe foremost in every perilous encounter. The bank-bation, on the 23d of January, and returned by ing institutions and the citizens of Baltimore, it is be- him on the 30th of the same month, with oblieved, have been as prompt and as liberal in their jections. loans to the Government as those of any other portion of the Union. Such are the people for whom your memorialists beg and entreat aid, protection, and defence. The Government may yet provide means in time, if prompt and vigorous measures are adopted; but there is no time to be lost. And your memorialists cannot, for a moment, entertain the painful thought that the constituted authorities of their country will turn with apathy from the earnest entreaties of a people so highly deserving their regard, and leave them to the mercy of a brutal enemy, whose hostility against them, in particular, has been so lately manifested, and so strongly excited. THURSDAY, February 2. WILLIAM T. BARRY, appointed a Senator by the Legislature of the State of Kentucky, in the place of George M. Bibb, resigned, and ISHAM TALBOT, appointed a Senator by the Legislature of the same State, in the place of Jesse Bledsoe, resigned, respectively, produced their credentials, were qualified, and they took their seats in the Senate. The bill to authorize a detachment from the militia of the United States was read the second time. The bill, entitled "An act giving the right of pre-emption in the purchase of lands to certain settlers in the Indiana Territory," was read the second time, and referred to the committee appointed the 21st September, on the memorial of the Legislature of the Indiana Territory, to consider and report thereon. The bill, entitled "An act to authorize the payment for property lost, captured, or destroyed. by the enemy, while in the military service of the United States," was read the second time. The PRESIDENT laid before the Senate a report of the Secretary for the Department of the Navy on the petition of William Elliot, referred to him on the 6th ultimo; and the report was read. Mr. KING rose and submitted the following observations: The proposed bank would have a capital of thirty-five millions of dollars, composed of five millions specie, ten millions six per cent. stock, funded since the commencement of the war, fifteen millions Treasury notes, and five millions four per cent stock, to be created for this purpose. to be held by the United States, and paid for in The President of the United States objects to the bill scribed to the bank is insufficient to raise and sustain the public credit. st. Because the amount of stock to be sub 2d. Because no adequate public advantage will arise from the subscription of Treasury notes. 3d. Because the full aid and co-operation of the bank, in the furnishing of permanent and temporary loans, is not secured to Government during the war. 4th. Because the bank cannot be relied upon during the war to provide a circulating medium. How the public credit could be revived, and sustained by the transfer of any sum of war stock from one citizen to another, or from the present holders to the proposed bank, is not obvious. If the war stock be taken at fifty millions, a demand for one-fifth, or ten millions of it, to be united to the bank capital, would have a temporary influence upon the stock market; and if any except stockholders become subscribers to the bank, this increase of price would be advantageous to the sellers. But the advantage would be a private one, no part of which would accrue to Government. As soon as the requisite sum is transferred to the bank, the stock will be precisely as valuable, and no more so, than it was before such transfer. Government will be obliged to make the same annual provision to pay the interest after the transfer as before. The public credit, which, after employing all the cabalistical words and manoeuvres of stock jobbers, always did, and always will, depend upon the ways and means, or the ability of Government, to fulfil its engagements, or to pay its debts in equivalent values, will be little, if at all affected by a transfer of stock from individuals to a corporation within the country, especially as these transfers are to be made at different times, and at periods of considerable distance from each other. The same debt would continue to exist, yielding the same dividends and representing the same sum of American capital as it now represents. No addition to domestic capital would be made by this operation. If it releases the capital of A who sells the stock, it will employ the capital of B, who purchases it; and the only difference will be, that A becomes the owner of a disposable capital, which before belonged to B. The raising of the price of stocks may prove beneficial to a Government in two ways, if it wants to borrow; the permanent, not the casual raising of the prices of the stock market, will enable it to sell new stock dearer. If foreigners come into the market, the raising of its price increases the money which must be brought into the country to purchase stocks. It was to meet the latter case, that an operation was undertaken by Colonel Hamilton, which proved to a limited degree advantageous. But although Government desires to obtain loans, it is not probable that any permanent application of the public credit would have been produced by the transfer of a given sum of the war stock to the bank, especially when the deep wound given to the public credit, by the extraordinary terms upon which the late loans were negotiated, is considered. More favorable times; a revival of industry and of commerce; an im proved state of the finances, with a public income commensurate to the public expenditures, are necessary to the revival and re-establishment of the public credit. The discrimination which is proposed to be carried still further than the bill carries it, in favor of the war stock, is impolitic. Were Government at liberty, for its own advantage (a case not now existing) to make such discrimination, the holders of war stock ought not now to desire it in their favor, as the example might be hereafter cited as a precedent against them, and in favor of the now postponed, though equally meritorious stock of the Revolution. There should be no discrimination; the public faith knows no favorites; the holders of the war stock ought not to contend for preferences. They ought to be satisfied that the public faith, whether formerly or recently pledged, is equally precious to an honest Government, and will be alike redeemed. If there still remains a doubt concerning the correctness of the first objection contained in the President's Message, can there be any respecting that of the second? Will no adequate public advantage arise from the subscription of Treasury notes ? Public credit, as has already been observed, depends upon the ability and inclination of Government to fulfil its contracts. Treasury notes are contracts, promising to their holders the sums, and at the times, mentioned in them. The bill provides that fifteen millions of dollars, in these SENATE. notes, shall be receivable as a part of the bank capital, and when received shall be converted into fifteen millions of six per cent. stock. If not received by the bank and converted into six per cent. stock, this sum of fifteen millions of Treasury notes will fall due, and must be paid off, in the beginning of the next year. To this end money must be borrowed; and assuming the rate of the last loans, to borrow fifteen millions of dollars Government must give eighteen millions and three-quarters of a million of dollars of six per cent. stock. So that the difference between paying them off, or allowing them to be subscribed to the bank, and then converted into six per cent. stock, would be a clear saving to the public of three millions seven hundred and fifty thousand dollars six per cent. stock. Moreover, by this conversion of Treasury notes into an equal sum of six per cent. stock, room would be made for a further issue of Treasury notes-the finances would also be relieved by releasing Government from the obligation to pay off their notes at a fixed day, and the ways and means, whether from loans or taxes, to the amount of fifteen millions, which would have been required for this purpose, would be left at the disposition of Government. no adequate public advantage will arise from the Is then the objection correct, which alleges that subscription of Treasury notes to the bank? The third objection alleges that the bank is under no legal compulsion to afford that full aid and co-operation to Government, which the Message declares to be both indispensable and necessary in the administration of the finances, the bank being neither obliged to make temporary nor permanent loans to Government. Temporary loans to Government, in advance or anticipation of the taxes, are without doubt among the chief advantages that Government derives from a National Bank; as portions of the annual expenditure are required to be made before the taxes are collected, the bank, with mutual advantage to itself and the Government, is commonly able to make the advances wanted for this purpose, waiting for their repayment until the taxes come in. In ordinary times every bank of circulation finds its interest in affording to the Government this accommodation; which is made pursuant to the correct maxims of commercial credit, being a loan made upon "good pledges" or undoubted security, which at a fixed, and no distant period, will repay it. But it must be evident that such advances in anticipation of the taxes, and which are to be repaid by them, can be made only upon the faith that the currency in which the taxes are paid will be of equal value with that in which the bank makes its advances. If, as in the instance of this bank, its notes are convertible into specie, and the taxes are payable either in them or a Government paper, which is at a discount, no one will suppose that the bank can, in such case, make advances to Government, and receive in payment thereof the depreciated paper in which the taxes are paid. If the bill pass, the bank must redeem its notes with cash; the taxes will be receivable in bank notes or Treasury notes; the latter being at a discount, the taxes will be paid in them. Ought any one to expect that the bank will advance to Government a million of dollars in its notes, as an anticipation of the land tax, and receive in payment a million of dollars in Treasury notes, which may be at a discount of ten or fifteen per cent? Is it not plain that, instead of receiving a compensation for the loan, the bank would in such case suffer a positive loss, equal to the depreciation of the Treasury notes? It results, that neither this bank, nor any other, whose notes are of greater value, as a currency, than Treasury notes, can make advances in anticipation of taxes, payable in Treasury notes. The objection, therefore, against the bank amounts to this, that it cannot do what can only be done by a bank which is released from those indispensable restraints, without which no bank can with safety be established. FEBRUARY, 1815, conclusion; it would require much time and de- Lastly, it is objected, that the bank cannot be relied upon during the war, to provide a circulating medium. No bank which is obliged to redeem its notes with specie, can in the present state of commerce, credit, and alarm, issue the same beyond a very limited sum. If to the distrust which the war, and a real, or supposed scarcity of specie, create, be united an unusual demand for specie to be hoarded, or sent abroad for security, or to compensate unfavorable balances of trade, in lieu of the produce usually exported for this purpose; and if at the same time a considerable depreciation of the public credit takes place, a case will exist in which banks of circulation are reduced to the necessity of either a total suspension of business, or such an abridgement of it, as to render them incapable of circulating their notes in quantities commensurate to the public demands. This objection goes further, and urges the rejection of the bill because the bank is not obliged to make permanent loans to Government. No bank doing business, upon securities of short dates, can make permanent loans, and all banks of circulation are obliged to require such securities. If any exception to this rule exist, it can only be for moderate sums. Banks, acting upon the principle, that cash advance must be upon a security or pledge, which, at a short date, enables the bank to recall its advance, are called commercial banks. Those which make loans of long duration, or of a permanent character, do so with a reliance solely upon the public credit; and without the specific pledges, demanded by banks of circulation, and which enable them to recover their money, in all cases of failure. These are called financial or governmental banks. So long as banks confine their business, whether with Governments or with individuals, to the maxims of commercial credit, receiving for their advances notes and bills of undoubted credit, and payable at early periods, or pledges of specific funds or effects-so long are they of advantage to Governments, as well as to individuals employed in any kind of business requiring the aid of credit. But all experience has proved, and the exam-lation. ples are numerous throughout Europe, and as is believed without a single exception, that whenever banks become what is called financial banks, making permanent loans upon the mere pledge of the public faith, when they become the mints employed by Governments to fabricate paper to such amount, as often, and for such periods, as their wants frequently recurring, and always urgent, demand; they never fail to accomplish an extensive revolution in personal property, sometimes produce the abolition of debts, and after preying upon the credulous and unprotected, end in their own, and the nation's bankruptcy. It has been supposed that the Bank of England is a financial bank, and an exception from this The objection, therefore, is not against the structure of the bank, but against the condition of the country, and the state of the public credit, which may compel the bank to curtail its circu In effect, the objection amounts to the confession that no bank which confines its business to the only safe and practical test of a paper circulation will, or can afford, important aid in the furnishing of a circulating medium, in times and circumstances like the present; that no bank, except one which is released from the obligation to pay its notes in specie, can now afford a circulating medium; in a word, that none but a bank which would circulate a depreciated currency, and which it would be dangerous to create, ought now to be established. It might suffice to have shown that the President's objections ought not to prevent this bill's becoming a law; but a few words may be added concerning the bill. The amount of the capital of the bank has already been mentioned. Its duties and general provisions are conformable to those of the late Bank of the United States; they have had a fair trial, and have been approved; whatever that bank would have done, this would be able to do; and advantages such as it afforded to Government in the management of the finances, this bank would in due time be equally or more capable of affording. SENATE. country is already reduced to this situation, and the President announces the same to Congress, will they prove themselves the faithful friends of the people, unless they seasonably apprize them of the fact, however humiliating? If paper money be necessary, avow it, prepare it, issue it; but under every caution and guard which can be devised to mitigate its evils. All experience, public and personal, demonstrates that every object is attained with more certainty and greater advantage by a direct than by an indirect course. It has not been contended, that at this time, owing to the condition of the finances and credit of the United States, as well as to the general stag- Why, then, will Congress by the creation and nation of trade, and the distrust of every kind of employment of a bank attempt to conceal their credit, any safe bank that might now be estab- actual condition and real object? Why established, could afford to Government or to individ-lish a bank which, dealing only in paper, will uals much, or important assistance by loans, even fabricate and lend as many millions as Congress of a temporary kind. may desire to borrow? Why pay to this bank But the agency of this bank would now be of an interest of six per cent. for the loan of their service to Government; whatever it should be notes, which in no single ingredient will, or able to do would be well done. Its operations ought to be thought, to be of greater value than would all be solid, and of standard character; its Treasury notes. The people of this country have business must be limited, but it would be safe much natural sagacity, and will not long be deand exemplary; and with regard to every other ceived by this or any similar contrivance. Rather moneyed institution, conducting its affairs hon-devise an improved scheme for the immediate estly, it would cherish and sustain it. currency will be better than that of the notes of such a bank as it is desired should be created. issue of Treasury notes, let them be convertMoreover, by the establishment of this bank ible at pleasure into a public stock, bearing a upon sound and approved maxims, although it high interest; fund this stock by pledging spemay not now do what no safe bank can do-cific taxes to pay the interest; the credit of this much good-it will do no injury. It will not contribute still further to depreciate public and private credit; and during the term of its charter, it will prevent, a circumstance worth much, the establishment of a bank upon false and dangerous principles. On the return of peace, the agency and influence of this bank will become invaluable in the recovery and re-establishment of the credit and finances of the nation. For these reasons, therefore, which had their influence in the passage of the bill by the Congress, and the force of which remains not only undiminished, but the latter of them is increased by the objections made by the President, it is earnestly to be wished, although scarcely to be hoped, that the bill may become a law. The concluding paragraph of the Message of the President is incomparably the most important. It is this which opens and interprets the object desired to be attained by the rejection of this bill. Congress are here admonished by the President to make haste "to substitute" (in lieu of the bill) "a more commensurate and certain provision for the public exigencies." The President of the United States, after alluding to the exigent and perilous condition of the country, after insinuating to Congress in language not to be misunderstood, that the resources of the Treasury were exhausted, that extraordinary succor from loans were no longer attainable, that a bank created upon safe and approved principles could afford no public assistance, plainly intimates that paper money, and only paper money, will, or can assist the nation in the further prosecution of the war. If this be so, if by the neglect and mismanagement of the finances and profusion in the public expenditures, the If a paper circulation alone will enable us to defend the country, prepare and make use of it; but spare us the expense of paying interest for it to a company, whose faculties, without our contributions, will enable them to make dividends equal to their utmost desires. When Mr. KING had concluded, the question was taken, Shall this bill pass? and was determined in the negative-yeas 15, nays 19, as follows: SENATE. Public Buildings in the City of Washington. tled "An act for the better regulation of the Ordnance department," reported it with amendments; which were read, and considered as in Committee of the Whole; and, having been agreed to, the President reported the bill to the House accordingly; and the amendments were ordered to be engrossed and the bill read the third time as amended. FEBRUARY, 1815. Whole, the consideration of the bill, entitled "An act to amend the act, entitled 'An act to provide additional revenues for defraying the expenses of Government, and maintaining the public credit, by laying a direct tax upon the United States, and to provide for assessing and collecting the same;' and the act, entitled 'An act to provide additional revenues for defraying the expenses of Government, and maintaining the public credit, by laying duties on household furniture, and on gold and silver watches," together with the amendments reported thereto by the select committee. And the amendments having been agreed to, in part, the President reported the bill to the House accordingly. And Mr. KERR moved to amend the bill, by adding thereto a new section, as follows: A message from the House of Representatives informed the Senate that the House have passed a bill, entitled "An act for the relief of Saltus, Son, and Company, merchants of the city of New York;" a bill, entitled "An act to authorize the President of the United States to receive into the service of the United States certain corps which may be raised and organized by any State, to serve in lieu of the militia thereof;" a bill, "And be it further enacted, That, if either the States entitled "An act for the regulation of the courts of Ohio or Louisiana shall pay its quota of the direct of justice of Indiana;" a bill, entitled "An tax, according to the provisions of the aforesaid act, act to amend and extend the provisions of the the Legislatures thereof shall be and they are hereby act of the sixteenth of April, 1814, entitled 'An authorized and empowered to collect of all the purchas act confirming certain claims to land in the Illi-ers of public lands, under any law of the United States, nois Territory, and providing for their location;" also, a bill, entitled "An act making appropriations for the support of the Government for the year 1815," in which bills they request the concurrence of the Senate. The five bills last mentioned were read, and passed to the second reading. a just and equal proportion of the quota of said States, respectively, the compact between the United States and the said States to the contrary notwithstanding." The further consideration of the bill was postponed till to-morrow. PUBLIC BUILDINGS. The Senate resumed, as in Committee of the The Senate resumed, as in Committee of the Whole, the consideration of the bill, entitled "An Whole, the consideration of the bill making apact to alter and amend the several acts for estab-propriations for repairing or rebuilding the publishing a Navy Department, by adding thereto a lic buildings within the City of Washington. Board of Commissoners," together with the amendments reported thereto by the select committee; and, the amendments having been agreed to with further amendment, the President reported the bill to the House accordingly. On the question, Shall the amendments be engrossed, and the bill read a third time as amended? it was determined in the affirmative. The Senate resumed, as in Committee of the Whole, the consideration of the bill, entitled "An act to authorize the purchase of a tract of land for the use of the United States," together with the amendment reported thereto by the select committee; and on motion, by Mr. BROWN, the further consideration thereof was postponed until to-morrow. The Senate resumed, as in Committee of the Whole, the consideration of the bill, entitled "An act concerning Weston Jenkins and others;" and, no other amendment having been proposed, it passed to the third reading. The Senate resumed, as in Committee of the Whole, the consideration of the bill, entitled "An act concerning Matthew Guy, John Woodward, Samuel Tennison, and Wilfred Drury," together with the amendments reported thereto by the select committee; and, the amendments having been agreed to, the President reported it to the House accordingly. On the question, Shall the amendments be engrossed and the bill read a third time as amended? it was determined in the affirmative. The Senate resumed, as in Committee of the Mr. FROMENTIN had moved yesterday to recommit the bill to a select committee. On this motion Mr. F. addressed the Chair as follows: Mr. President: I am called upon to give the reasons which prompted me to make the motion now under consideration. I will endeavor to give to the Senate such an account of my motives as will enable them to judge of the propriety of the reference. It may, perhaps, not be useless on this occasion to take a retrospective view of the length of time which has elapsed, after the erection of those buildings was determined on, before they could be used for the purposes for which they were intended, and of the sums of money which have been spent upon their construction. We shall be the better able to anticipate the probable time when these buildings may again be occupied by Congress, and to form a correct estimate of the sums of money which we may have to appropriate for those purposes. Sir, it is more than twenty-three years, if I am correctly informed, since the public edifices, proposed now to be rebuilt, were begun to be erected. None of them, at the time of their destruction by the enemy, were completely finished; and I believe, the south wing of the Capitol was not ready for the reception of the House of Representatives more than four or five years before it was destroyed. If it be found necessary to rebuild, instead of repairing, the other hopeless alternative offered by the bill on your table, you may reasonably expect, taking into consideration the pre |