most dangerous instrument in the hands of any Chief Magistrate. It would enable him to tamper with the pecuniary affairs of the States; and though its management might require more address than would be requisite to attain the control of a single institution, yet the consequences would be equally dangerous to the security of liberty. Whichever way the friends of a limited and constitutional Government turned their eyes they saw equal dangers in the prospects before them. Let them, then, endeavor to simplify the fiscal machine: let them endeavor to get a simple system, which should be subject to the control of Government alone, (he meant the control of Congress,) and which should be wholly disconnected with all paper money of every description. If the various and conflicting opinions of the House could thus be compromised, an achievement would be effected in favor of a limited and constitutional Government such as had never been witnessed before. It must be evident to all, that the whole tendency of Government was to accumulate power. Whenever an election of President was approaching, (and when was it at a great distance?) all great questions of policy were made to bear upon that all-agitating topic. All good men began to tremble for our institutions. Amidst the strife and rude war of such mighty interests, virtue and patriotism shrank back in dismay. But would gentlemen make no effort to diminish this danger? Must there still be a war against internal improvements, a war against the tariff, a war against the Bank of the United States, or against the State banks, altogether distinct from any regard to the happiness of the people? Was the President and the bank left to be in deadly conflict? Must there be no end to these political contests? Who could go home, and leave things in their present condition, and not apprehend the worst consequences? He called upon the House to make a generous, magnanimous effort to free the country; he invited, he invoked them, to give up something of their party prejudices, and to unite together to steer in a safe, middle course, the vessel of state, now in such imminent danger of rocks on the one side and whirlpools on the other. He observed that the measure he had proposed was one of extreme simplicity. He should not now attempt to go into the details which belonged to it; if the principle were approved, the details might be easily arranged. He simply proposed to make those who received the revenue the agents for its custody, when not exceeding a given amount, and constituting them the agents, also, for its disbursement. He was aware, indeed, that the members of the House had so long been in the habit of considering matters of revenue as matters pertaining to a bank, that it was difficult, perhaps, for them to admit of any other idea. But Mr. G. did not propose to interfere with the banking principle; he had nothing to do with their notes, whether small or large. Let them regulate [H. OF R. that as they could, He did not interfere with the Bank of the United States. He went only for what was originally intended, and what alone was contemplated by the framers of the constitution, viz.: that the revenue should be collected in coin. Coin was the only legal tender now, yet Government had made paper substantially such. He was for putting an end to this. He was most clearly of opinion that the hard-money system was the simplest and best the Government could ultimately adopt. There might be some objections urged against it. Some gentlemen might apprehend that it would withdraw too large an amount from circulation. But this objection was not well founded. As the duties on imports should decrease, the amount of surplus revenue would be less and less; it would soon be but a few millions. It might be said that the transfers of money could not be made as easily as by a federal bank with branches. All that would be requisite would be drafts from the Treasury, specifying the place where the money should be paid. These drafts would not be at premium, but would pass as money. They would be a substitute for bank paper, and the Government would thus be delivered from its connection with the system of banking; a system which all knew to have a corrupting tendency, and which must be a perpetual instrument of party spirit. The whole world recognized gold and silver as the representative of property; it was the only real money in existence. He hoped to see it the money of this Government. The amendment of Mr. GORDON was ordered to be printed. SATURDAY, June 21. Death of Lafayette. Mr. J. Q. ADAMs rose to state that, on coming to the House, he had been informed that, since the last adjournment of the House, intelligence had been received of the occurrence of a calamity which had befallen the whole race of civilized man. He had not time to prepare a resolution fitting such an occasion, but he presumed it would be obvious to every person that it was an occurrence peculiarly becoming the Congress of the United States to adopt some suitablo measure to express the deep sense they entertained of the misfortune involved in the decease of one of the most eminent benefactors of the age and of mankind. It occurred to him that such a duty should be discharged in a manner suitable at once to the dignity of the representatives of the people and States of this Union, and to the merits of him to whose memory this tribute should be paid. This he supposed would be in the form of a joint resolution of the two Houses of Congress. He would now, therefore, submit a motion that a committee should be appointed to consider in what manner a tribute of affection and respect may be shown by the Congress of the United States, expres sive of the sensibility of the nation on the event of the decease, and of their veneration for the memory of the illustrious General Lafayette. Mr. A. then offered the following resolution: Resolved, That a committee of be appointed on the part of this House, to join such committee as may be appointed by the Senate, to consider and report by what token of respect and affection it may be proper for the Congress of the United States to express the deep sensibility of the nation on the event of the decease of General Lafayette. Mr. ARCHER rose to suggest that the blank for the number to be appointed on the committee should be filled up with "five" or "seven." Mr. J. Q. ADAMS would assent to any number the House might think proper to name. Mr. WATMOUGH suggested the number of thirteen. Mr. CAMBRELENG proposed that the committee should consist of one member from every State in the Union. Mr. E. WHITTLESEY expressed his hope that every State would be permitted to be represented on the committee in paying this tribute of respect. After some further verbal modifications, at the suggestion of Mr WAYNE, The committee on the part of the House was, on motion of Mr. HUBBARD, ordered to consist of twenty-four. The following gentlemen were appointed to compose the said committee: From Massachusetts, John Quincy Adams, chairman; from Maine, Rufus McIntire; from New Hampshire, Henry Hubbard; from Rhode Island, Tristam Burges; from Connecticut, Noyes Barber; from Vermont, Heman Allen; from New York, C. C. Cambreleng; from New Jersey, James Parker; from Pennsylvania, Henry A. Muhlenberg; from Delaware, John J. Milligan; from Maryland, Isaac McKim; from Virginia, William S. Archer; from North Carolina, Lewis Williams; from South Carolina, Henry L. Pinckney; from Georgia, James M. Wayne; from Kentucky, Richard M. Johnson; from Tennessee, John Blair; from Ohio, Elisha Whittlesey; from Louisiana, Philemon Thomas; from Indiana, John Carr; from Mississippi, Harry Cage; from Illinois, Joseph Duncan; from Alabama, John Murphy; from Missouri, William H. Ashley. Gold Coin Bill. After considerable struggle for precedency of business, Mr. C. P. WHITE succeeded in getting a vote of two to one to take up the gold coin bill. Mr. WHITE, of New York, chairman of the committee on coins, moved to amend the bill by striking out all after the enacting clause, and substituting a new bill, fixing the ratio of the value of gold to silver as 16 to 1. Mr. WHITE made a speech explanatory of his reasons [JUNE, 1834. for the proposed change, which opened a discussion of much learning and great interest. Mr. SELDEN went into an elaborate argument in defence of the bill as at first reported, and in opposition to the amendment. He argued to show that the practical effect of the latter be, in a short time, to banish the existing silver currency of the country. He considered the proportion proposed to be established as false in fact, and contended that the true ratio was, not 1 to 16, but 1 to 15 5-8; and he offered an amendment to that effect, as follows: "Strike out 232 grains, the quantity of fine gold in an eagle, and insert 237 6-10-strike out 258 grains, the quantity of standard gold in an eagle, and insert 264 grains. Strike out 116 and 129 grains, the quantity of fine and standard gold in a half eagle, and insert 118 8-10 and 132 grains, and standard gold in a quarter eagle, and insert Strike out 58 and 64 grains, the quantity of fine 59 4-10 and 66 grains." Mr. CLOWNEY said: Mr. Speaker, I am truly glad that the honorable chairman of the special committee on coins has thought proper to offer the substitute now on your table, which abandons the scheme of a debased subsidiary currency, as reported in the original bill, and enhances the value of gold relatively to silver in the proportion of one to sixteen. By this amendment, all my objections to the original bill are entirely removed. To raise gold in these United States from its present degraded state as a mere article of merchandise to the rank of a coin destined to become a part of our currency, meets with my most decided approbation, I fully concur in sentiment with the present Secretary of the Treasury, in his late letter to the Committee of Ways and Means, that "the great evil of our present currency is the disproportion between the paper in circulation and the coin prepared to redeem it; and that the first step towards a sound condition of the currency is to reform the coinage of gold." In these views, the Secretary of the Treasury stands supported by the high authority of several of his predecessors in office, such as a Gallatin, Crawford, Dallas, and Ingham, each of whom in his day, directed his attention to this important subject. He also stands supported by the very able directors of our mint, Messrs. Patterson and Moore, in their various communications to the committees of this House and the heads of the Treasury Department; and also by the repeated reports of committees in both Houses of Congress for the last fifteen years. Why all these efforts to reform the coinage of gold have heretofore entirely failed, it is not my object at this time to inquire. It is sufficient for my present purpose to show that, in the opinion of the most competent judges, a necessity for a change in our coinage has existed, and that it must still exist, as nothing has been done to remove it. I believe I may still go further, and assert, without fear of contradiction, that this necessity not only exists, but that it is JUNE, 1834.] Gold Coin Bill. [H. OF R. greater now than at any former period in the history of our country. What is the fact with regard to our present currency? It is, sir, literally a paper currency. The notes of the local banks and the Bank of the United States, now in actual circulation, are estimated by the Secretary of the Treasury at eighty millions of dollars. Out of about seven thousand millions of specie now in circulation in the world, the silver (for gold we have none) in the vaults of all the banks of the United States, fed-gold has evidently risen in value relatively to eral and local, with which to redeem this eighty millions of paper, does not exceed twentyfive millions. This fact, in connection with the recent numerous bank failures, and the consequent evils every class of the community throughout the Union is now suffering, afford the most convincing proofs of the rotten condition of our present currency, unsupported as it is by a firm and broad metallic basis. Therefore, to restore the currency to a sound condition, and furnish a medium of exchange adequate to the wants of the people, when the Bank of the United States ceases to exist in 1836, and its notes are necessarily withdrawn from circulation, I hold to be amongst the first, highest, and most imperative duties of the present session of Congress. Hamilton, the Secretary of the Treasury, in 1792, to recommend this ratio of gold and silver in our coinage, and Congress to adopt it, was because they considered it the average value of the two metals at that time, amongst the principal commercial nations. While I admit the soundness of the principle, and do not feel disposed to deny the correctness of the calculation at that time, yet does the calculation no longer hold true. Since that period silver, until their average relative value in the commercial world may be fairly estimated at one to sixteen. The truth of this fact will satisfactorily appear from a table furnished by the director of our mint, to be found in the report accompanying this bill. According to this table, we find that in the coinage of the two metals, in Antwerp, Netherlands, Portugal, Brazil, Spain, and her former colonies in South America, the proportion of gold to silver is 1 to 16; while in Hamburg it is 1 to 164; in Denmark 1 to 16; in Sweden 1 to 16 3-7; in Russia 1 to 17; and in Vienna and Trieste 1 to 18. It is true, standard gold to silver, in England, is 1 to 15.7, in France 1 to 15.5, and in Holland 1 to 15.8. But, notwithstanding this legal or standing value of The particular evils, which it is the object gold to silver in England and France, yet has of the bill now under consideration to remedy, the relative market value of gold to silver, in are to traced to the act of Congress passed in these two nations, for a number of years past, 1792, establishing a mint and regulating the considerably exceeded its value at the mint. value of coins. According to this act, three Mr. Ingham, in his report to this House, while denominations of gold coins are directed to be Secretary of the Treasury, in 1830, lays it minted: the eagle, half eagle, and quarter eagle, down as a rule that "it is only from the all of equal fineness; the eagle to be valued at market price of both metals, without regard to ten, the half eagle at five, and the quarter the mint price, the true relative value is to be eagle at two and a half dollars. The eagle is found." He also states the historical fact, made to weigh two hundred and forty-seven that the average value of gold to silver in and a half grains of pure gold, or two hundred England, for the last five years preceding his and seventy grains of standard gold, eleven-report, was 1 to 15.81; and in France, for the twelfths fine; and the half eagle one hundred and twenty-three and three-fourths grains pure gold, or one hundred and thirty-five grains standard; which, added together, makes the weight of these two coins, valued at fifteen Here we find, according to our present mint dollars, equal to three hundred and seventy-regulations, that gold is esteemed less valuable one and one-fourth grains of pure gold, or four in the United States, as a coin, than in any hundred and five grains standard. By this other nation on the face of the globe. same act the dollar is made to weigh three hundred and seventy-one and a quarter grains of pure silver, or four hundred and sixteen grains standard, being fourteen hundred and eighty-five parts out of sixteen hundred and sixty-four fine, instead of eleven-twelfths, as in the gold coins. Hence we find the relative value of gold to silver, as established by our laws, to be one to fifteen; or, in other words, that the three hundred and seventy-one and a quarter grains of pure gold contained in an eagle and half eagle, are valued by law as worth fifteen times as much as the three hundred and seventy-one and a quarter grains of pure silver contained in a dollar. The reason which induced Mr. Alexander last thirteen years preceding his report, 1 to 15.82; in addition to this, gold has been frequently in value above this ratio, in England, ever since the year 1819. Owing to this circumstance, our gold, whether in the shape of coin or bullion, has, for the last fifteen years, even in England, where its standard value is considerably below that of most other nations, commanded a premium from four to six and three-fourths per cent. The inevitable consequences of such an ill-advised policy or careless neglect in legislation, have long since been experienced in the entire banishment of gold, not only from circulation, but also from our country; and in the complete counteraction of its tendency to return in the course of trade. these are serious evils, none can deny; and, if so, all must admit the necessity and importance of the immediate application of an appropriate remedy. That H. OF R.] Gold Coin Bill. Having shown satisfactorily, I trust, that the cause of the present evils in our metallic currency, (the only currency known to our constitution,) is the undervaluation of gold by our laws, it is evident that the nature of the remedy must be to remove the cause of the evils, by raising the value of gold relatively to silver in our coinage. I must confess, however, that although the cause of the evils and the nature of the remedy are obvious, yet, when we come to apply the remedy, we find it an extremely nice, difficult, and complicated question to determine what proportion of gold to silver in our coinage is necessary to place the two coins upon an equal footing in commerce, and insure their concurrent circulation, so that the one may be readily exchanged for the other by tale, to suit convenience or pleas ure. In attempting to fix the value of gold at our mint, with the sole view of introducing it into circulation with silver, so that the one may not be preferred to the other in the payment of debts, a due regard must be paid to the relative value of bullion in the great marts of the world, and more especially in those nations with which we have the greatest commercial intercourse. In addition to this, we must also take into consideration the fact, which the history of the two metals incontestably proves, to wit: the universal tendency of gold to rise in value relatively to silver; and also the fact, proved by the table to which I have referred, furnished by the director of our mint, that much more of the two metals are now coined upon the basis that gold is in value to silver as one to sixteen, than according to any other proportion. It is true, the average market value of gold and silver bullion, or of foreign coins, which are esteemed as bullion in the markets of England, France, and Holland, has been for many years past, and is now, between 15.8 and sixteen to one. But to adopt for our standard the minimum market value of the metals in either of these three nations would be, I am confident, to continue the evils of our present system. Independent of the considerations as to the tendency of gold to rise in value relatively to silver, and the fact that the average proportion of gold to silver in the coinage in much the largest portion of the world is now sixteen to one, the difference in the expense and convenience of exporting gold and silver, added to the advanced value of gold, arising from an increased demand for it, in case it were introduced into general circulation in the United States, would be fully if not more than equivalent to eighty-eight hundredths of one per cent., the difference between 15.86 and sixteen to one. Therefore, am I decidedly in favor of the amendment offered by the honorable chairman of the committee on coins, which makes the eagle weigh two hundred and thirty-two grains pure gold, and two hundred and fifty-eight standard, ninetenths fine, which is equivalent to one of gold for [JUNE, 1834. sixteen of silver. I am in favor of this proportion, not from any selfish or local considerations, but because I sincerely believe that it is for the public good that both metals should be coined at our mint, and that nothing short of the proportion proposed in the amendment offered by the chairman of the committee will place the two coins upon a level in the commercial world, and insure their concurrent circulation in the United States. Mr. GORHAM said it was important that the' true ratio of gold and silver should be accurately fixed. If there was too much gold in the eagle, everybody would pay their debts in dollars; if too little, all would pay in eagles. It was very difficult, and a matter of great nicety, to fix their relative value. At first, it had been determined that one ounce of gold was worth fifteen ounces of silver. This continued to be the relative value established by law, from the year 1792 till about fifteen years ago. This continued to be very near the truth for about thirty years, when the proportion had suddenly changed. Whence the change had proceeded it was not easy to tell, probably from an increased production of silver and a proportionable decrease in the production of gold; or because more gold had been employed in the coinage of Great Britain. Whatever the cause might be, the value had risen from fifteen ounces to fifteen and a half and fifteen and three-quarters. That was the very extent. This bill fixed it at sixteen. However the standard was fixed, it ought not to be changed every day. He did not know that it was very essential to change it at all. The present standard had long been found a very good one. But if any change were made, it must be done with the greatest care. It was now only fifteen years since gold and silver were in concurrent circulation in this country, and debts were demanded and paid in either indifferently. And ever since that period, the business of the country had got along very well until the late disturbance on the subject of the currency. The question in this bill, Mr. G. observed, was one purely and wholly separate from all politics. It was a question of business, which rested altogether on different grounds. It was impossible for that House, by any act of its legislation, either to take from or to add to the value of gold. That value was fixed by other things than acts of Congress. The Government might mark its own coin with what value it pleased, but it could not give it that value; and if by law they allowed money to be a lawful tender for more than its value, they immediately affected the obligation of contracts, which they were forbidden by the constitution to do. Their law could no more change the value of gold than it could make gold. The real use of a mint was only to assure the people that the piece stamped was of a certain weight and fineness. If that weight could be stamped in figures, it would be all that was wanted. As to the abrasion of the two metals, the same amount of it upon the gold piece which happened to one of silver would be fifteen times as great in value; besides that, silver would actually suffer less abrasion than gold. The gold pieces thus reduced in weight would be kept in circulation; for, whenever the goldsmiths wanted to use money as bullion for purposes of the art, they always choose the heaviest they could get. If the law should make gold too cheap, the country would have no silver circulation; for who would bring silver here on which he must lose two and a half per cent.? We should soon have the same cry about the want of silver coin which there was now about gold. Then the next step would be to tamper with the value of the dollar; and thus the nation would be vacillating in its currency like a boy upon a plank. But, if debts should be paid half in one metal and half in the other, all danger would be done away with. Mr. G. said he should vote for the amendment proposed by the gentleman from New York, (Mr. SELDEN,) and by that gentleman's consent would append his own motion to his, as an amendment. [The following is the amendment proposed by Mr. GORHAM.] Sec. 3. Be it further enacted, That from and after the first day of January, 1840, the legal tender for the payment and discharge of all debts contracted or obligations for the payment of money incurred after the passage of this act, shall be one-half in the silver coins and one-half in the gold coins which by law shall be made current in the United States: Provided, however, that any sum less than five dollars, and that fraction or remainder of a larger sum which shall be less than five dollars, may be paid in the silver coins current by law within the United States. Mr. JONES, of Georgia, said: Mr. Speaker, before I proceed to the examination of the substitute offered by the honorable chairman of the committee on coins, (Mr. WHITE,) and the amendment proposed by his colleague, (Mr. SELDEN,) I will call the attention of the House to the amendment offered by the gentleman from Massachusetts, (Mr. GORHAM,) and adopted as a part of his amendment by the gentleman from New York. Sir, that amendment proposes to make gold and silver coins a legal tender in payment of all debts, in equal amounts-that is to say, one-half of the debt is to be paid in gold, and the other half in silver coins. For one, I cannot give my vote in favor of this amendment. In my opinion, this Government has no authority by the constitution to make any thing a legal tender in payment of debts. To Congress is given the power "to coin money and regulate the value thereof." To the States is retained the power to make gold and silver, and them only, a tender in payment of debts. I know that some gentlemen believe that when the value of coin is fixed by Congress it becomes neces [H. OF P. sarily a legal tender, and that the courts will so decide. To this I offer no objection. If such be the legal effect, be it so. One thing, however, is certain: if such be not the legal effect, Congress has no power to make any coin a legal tender; and, if this be the legal and necessary effect, then there is no necessity for Congress to do it. This being the case, it is certainly unnecessary to insert it in this bill. Sir, the circumstances under which the substitute to the original bill presented by the committee has been offered to the House by the honorable chairman of that committee, require a few observations from me, more especially as that gentleman has been charged by his colleague (Mr. SELDEN) with yielding his own opinion to mine. These remarks are made more in justice to the honorable chairman than myself. It will be recollected that when this bill was in Committee of the Whole, I consented it might be reported to the House without amendment; and at the same time gave notice I should move to amend the same when it came before the House, by changing the relative value of gold and silver from 1 to 15.625, as reported by the committee, to 1 to 16; in other words, to make one ounce of gold worth 16 ounces of silver. Since that time I have conversed fully, freely, and candidly, with the honorable chairman, and he has consented to present the substitute which is now before the House, and which obviates all the objections which I had to the original bill, and meets with my entire approbation. For his courtesy, and this evidence of his regard to my opinion, he has my thanks, and I have no doubt by this course he has also met the wishes of many of his friends. In fixing upon this ratio, we shall avoid the extremes on either side. In Russia the ratio is 1 to 18; in Denmark 1 to 16; in Spain 1 to 16; in South America 1 to 16; in France 1 to 15; and in England, nominally and legally, 1 to 15.2; but really, as we have seen, 1 to 15.88. If, then, we adopt the ratio of 1 to 16, adopted by all America and proposed by the substitute, we shall have taken the middle course, the course of prudence as well as of safety. In medio tutissime ibis is the language of wisdom and experience. The great object to be attained in regulating the relative value of gold and silver is to obtain the circulation of both if practicable, as the currency of the country. It is well known and admitted that the value of gold, as now fixed by the law, is such that, so soon as our gold coins can be obtained from the mint, they are immediately exported; and it is earnestly desired to correct this evil. The gentleman from New York (Mr. SELDEN) has told you, if you adopt the substitute our coins will go out of the country when the balance of trade is against us, and when it is in our favor they will return again, and by this |