was stronger than the President-that it could beat him in the election-that it could beat him in Congress (as it then stood), and carry the charter,—driving him upon the veto power, and rendering him odious if he used it, and disgracing him if (after what he had said) he did not. This was the opinion of the leading politicians friendly to the bank, and inimical to the President. But the bank had a class of friends in Congress also friendly to Gen. Jackson; and between these two classes there was vehement opposition of opinion on the point of moving for the new charter. It was found impossible, in communications between Washington and Philadelphia, then slow and uncertain, in stage coach conveyances, over miry roads and frozen waters, to come to conclusions on the difficult point. Mr. Biddle and the directors were in doubt, for it would not do to move in the matter, unless all the friends of the bank in Congress acted together. In this state of uncertainty, General Cadwallader, of Philadelphia, friend and confidant of Mr. Biddle, and his usual envoy in all the delicate bank negotiations or troubles, was sent to Washington to obtain a result; and the union of both wings of the bank party in favor of the desired movement. He came, and the mode of operation was through *he machinery of caucus-that contrivance by which a few govern many. The two wings eing of different politics, sat separately, one headed by Mr. Clay, the other by Gen. Samuel Smith, of Maryland. The two caucuses disagreed, but the democratic being the smaller, and Mr. Clay's strong will dominating the other, the resolution was taken to proceed, and all bound to go together. W I had a friend in one of these councils who informed me regularly of the progress made, and eventually that the point was carried for the bank-that General Cadwallader had returned with the news, and with injunctions to have the memorial immediately at Washington, and by a given day. The day arrived, but not the memorial, and my friend came to inform me the reason why; which was, that the stage had got overturned in the bad roads and crippled Gen. Cadwallader in the shoulder, and detained him; but that the delay would only be of two days; and then the memorial would certainly arrive. It did so; and on Monday, the 9th of January, 1832, was presented in the Senate by Mr. Dallas, a senator from Pennsylvania, and resident of Philadelphia, where the bank was established. Mr. Dallas was democratic, and the friend of General Jackson, and on presenting the memorial, as good as told all that I have now written, bating only personal particulars. He said: ment to the Senate, praying for a renewal of the "That being requested to present this docuexisting charter of the bank, he begged to be indulged in making a few explanatory remarks. understood by the Senate, by the good commonWith unhesitating frankness he wished it to be wealth which it was alike his duty and his pride to represent with fidelity on that floor, and by the people generally, that this application, at this time, had been discouraged by him. Actuated mainly, if not exclusively, by a desire to preserve to the nation the practical benefits of the institution, the expediency of bringing it forward thus early in the term of its incorporation, during a popular representation in Congress which must cease to exist some years before that term expires, and on the eve of all the excitement incident to a great political movement, struck his mind as more than doubtful. He felt deep solicitude and apprehension lest, in the progress of inquiry, and in the development of views, under present circumstances, it might be drawn into real or imaginary conflict with some higher, some more favorite, some more immediate wish or purpose of the American people; and from such a conflict, what sincere friend of this useful establishment would not strive to save or rescue it, by at least a temporary forbearance or delay?" This was the language of Mr. Dallas, and it was equivalent to a protest from a well-wisher of the bank against the perils and improprieties of its open plunge into the presidential canvass, for the purpose of defeating General Jackson and electing a friend of its own. The prudential counsels of such men as Mr. Dallas did not prevail; political counsels governed; the bank charter was pushed-was carried through both Houses of Congress-dared the veto of Jackson received it-roused the people—and the bank and all its friends were crushed. Then it affected to have been attacked by Jackson; and Mons. de Tocqueville has carried that fiction into history, with all the imaginary reasons for a groundless accusation, which the bank had invented. The remainder of this quotation from Mons. de Tocqueville is profoundly erroneous, and deserves to be exposed, to prevent the mischiefs which his book might do in Europe, and even in claims. itself nothing to fear from a similar demand, as the extent of its resources enables it to meet all banks is thus threatened, and their operations But the existence of the provincial are restricted, since they are only able to issue a quantity of notes duly proportioned to their capital. They submit with impatience to this have bought over, and the President, whose insalutary control. The newspapers which they terest renders him their instrument, attack the bank with the greatest vehemence. They rouse the local passions and the blind democratic instinct of the country to aid in their cause; and they assert that the bank directors form a permanent aristocratic body, whose influence must ultimately be felt in the government, and must affect those principles of equality-upon which society rests in America.” America, among that class of our people who look to European writers for information upon their own country. He speaks of the wellinformed classes who rallied round the bank; and the common people who had formed no rational opinion upon the subject, and who joined General Jackson. Certainly the great business community, with few exceptions, comprising wealth, ability and education, went for the bank, and the masses for General Jackson; but which had formed the rational opinion is seen by the event. The "well-informed " classes have bowed not merely to the decision, but to the intelligence of the masses. They have adopted their opinion of the institution-condemned it-repudiated it as an "obsolete idea;" and of all its former advocates, not one exists now. All have yielding all this fine encomium upon the bank, and ed to that instinctive sagacity of the people, which is an overmatch for book-learning; and which being the result of common sense, is usually right; and being disinterested, is always honest. I adduce this instance-a grand national one-of the succumbing of the well-informed classes to the instinctive sagacity of the people, not merely to correct Mons. de Tocqueville, but for the higher purpose of showing the capacity of the people for self-government. The rest of the quotation, "the independent existence-the people accustomed to make and unmake-startled at this obstacle-irritated at a permanent institution-attack in order to shake and control;" all this is fancy, or as the old English wrote it, fantasy-enlivened by French vivacity into witty theory, as fallacious as witty. I could wish I were done with quotations from Mons. de Tocqueville on this subject; but he forces me to make another extract from his book, and it is found in his chapter 18, thus: "The slightest observation enables us to appreciate the advantages which the country derives from the bank. Its notes are taken on the borders of the desert for the same value as in Philadelphia. It is nevertheless the object of great animosity. Its directors have proclaimed their hostility to the President, and are accused, not without some show of probability, of having abused their influence to thwart his election. The President, therefore, attacks the establishment with all the warmth of personal enmity; and he is encouraged in the pursuit of his revenge by the conviction that he is supported by the secret propensities of the majority. It always holds a great number of the notes issued by the provincial banks, which it can at any time oblige them to convert into cash. It has Now, while Mons. de Tocqueville was arrang all this censure upon its adversaries, the whole of which is nothing but a French translation of the bank publications of the day, for itself and against President Jackson---during all this time there was a process going on in the Congress of the United States, by which it was proved that the bank was then insolvent, and living from day to day upon expedients; and getting hold of property and money by contrivances which the law would qualify as swindling-plundering its own stockholders-and bribing individuals, institutions, and members of legislative bodies, wherever it could be done. Those fine notes, of which he speaks, were then without solid value. The salutary restraint attributed to its control over local banks was soon exemplified in its forcing many of them into complicity in its crimes, and all into two general suspensions of specie payments, headed by itself. Its solidity and its honor were soon shown in open bankruptcy-in the dishonor of its notes-the violation of sacred deposits-the disappearance of its capital-the destruction of institutions. connected with it-the extinction of fifty-six millions of capital (its own, and that of others drawn into its vortex);-and the ruin or damage of families, both foreign and American, who had been induced by its name, and by its delusive exhibitions of credit, to invest their money in its stock. Placing the opposition of President Jackson to such an institution to the account of base and personal motives-to feelings of revenge because he had been unable to seduce it into his support-is an error of fact manifested by all the history of the case; to say nothing gold currency ever since, and that before we got California. There were general suspensions of specie payments during its time; and none since. Exchanges were deranged during its existence: they have been regular since its death. Labor and property lived the life of "up and down”—high of his own personal character. He was a senator in Congress during the existence of the first national bank, and was against it; and on the same grounds of unconstitutionality and of inexpediency. He delivered his opinion against this second one before it had manifested any hostility to him. His first opposition was abstract-price one day, no price another day-while against the institution-without reference to its conduct; he knew nothing against it then, and neither said, or insinuated any thing against it. Subsequently, when misconduct was discovered, he charged it; and openly and responsibly. Equally unfounded is the insinuation in another place, of subserviency to local banks. He, the instrument of local banks! he who could not be made the friend, even, of the great bank itself; who was all his life a hard money man-an opposer of all banks-the denouncer of delinquent banks in his own State; who, with one stroke of his pen, in the recess of Congress, and against its will, in the summer of 1836, struck all their notes from the list of land-office pay-rested. ments! and whose last message to Congress, and in his farewell address to the people, admonished them earnestly and affectionately against the whole system of paper money-the evils of which he feelingly described as falling heaviest upon the most meritorious part of the community, and the part least able to bear themthe productive classes. แ the bank ruled: both have been "up" all the time, since it has been gone. We have had a war since-a foreign war-which tries the strength of financial systems in all countries; and have gone through this war not only without a financial crisis, but with a financial triumph-the public securities remaining above par the whole time; and the government paying to its war debt creditors a reward of twenty dollars upon the hundred to get them to accept their pay before it is due; and in this shining side of the contrast, experience has invalidated the decision of the Supreme Court, by expunging the sole argument upon which the decision Necessity," "necessary to carry into effect the granted powers," was the decision of the court. Not so, the voice of experience. That has proved such an institution to be unnecessary. Every granted power, and some not granted, have been carried into effect since the extinction of the national bank, and since the substitution of the gold currency and the independent treasury; and all with triumphant success-the war The object of this chapter is to correct this power above all, and most successfully exercised error of Mons. de Tocqueville, and to vindicate of all. And this sole foundation for the court's history, and to do justice to General Jackson decision in favor of the constitutionality of the and the democracy: and my task is easy. Events bank being removed, the decision itself vanhave done it for me-have answered every ques-ishes-disappears-"like the baseless fabric of a tion on which the bank controversy depended, and have nullified every argument in favor of the bank-and that both with, and without reference to its misconduct. As an institution, it has been proved to be "unnecessary," and the country is found to do infinitely better without it than with it. During the twenty years of its existence there was pecuniary distress in the country-periodical returns of expansion and contraction, deranged currency, ruined exchanges, panics and convulsions in the money market. In the almost twenty years which have elapsed since, these calamitous words have never been heard and the contrast of the two periods will make the condemnation of one, and the eulogy of the other. There was no gold during the existence of the bank: there has been an ample vision, leaving not a wreck behind." But there will be a time hereafter for the celebration of this victory of the constitution over the Supreme Court-the only object of this chapter being to vindicate General Jackson and the people from the errors of Mons. de Tocqueville in relation to them and the bank: which is done. СНАРТER LXII. EXPENSES OF THE GOVERNMENT, ECONOMY in the government expenditures was a cardinal feature in the democratic policy, and every increase of expense was closely scrutinized the senator, the expenditures have greatly increased during that period. I told him I thought with the exception of four years, viz., 1821, 1822, they had not; and I now proceed to prove, that, 1823, and 1824, the expenditures of the govern ment have not increased. I shall endeavor to show the causes of the reduction of expenses during those years, and that they afford no criteria by which to judge of the necessary expenses of government, and that they are exceptions to the general rate of expenditures, arising from particular causes. But even they exhibit an expenditure far above the one half of the present annual ordinary expenses. A by them, and brought to the test of the clearest necessity. Some increase was incident to the growing condition of the country; but every item beyond the exigencies of that growth was subjected to severe investigation and determined opposition. In the execution of this policy the expenses proper of the government-those incident to working its machinery-were, immediately after my entrance into the Senate, and after the army and other reductions of 1820 and '21 had taken effect-just about eight millions of dollars. The same expenditure up to the be"In the year 1822, which was the period when ginning of the year 1832-a period of about ten the senator from Missouri [Mr. Benton] took his years-had risen to thirteen and a half millions: seat in the Senate, the ordinary expenses of the and, adverting to this increase in some current government amounted to the sum of $9,827,643. debate, and with a view to fix attention upon $9,784,154. I proceed, Mr. President, to show The expenses of the year 1823, amounted to the growing evil, I stated to the Senate that the cause which thus reduced the ordinary exthese expenses had nearly doubled since I had penses during these years. I speak in the been a member of the Senate. This statement presence of gentlemen, some of whom were then drew a reply from the veteran chairman of the in the House of Representatives, and will correct me if my recollection should lead me into error. Senate's committee on finance (General Smith, During the session of the year 1819-'20 the of Maryland), in opposition to my statement; President asked a loan, I think, of five millions, which, of course, drew further remarks from me. to defray the expenses of the government, which Both sets of remarks are valuable at this day-in-he had deemed necessary, and for which estimates had, as usual, been laid before Congress. structive in the picture they present between loan of three millions only was granted; and, in 1822-1832-and 1850. Gen. Smith's estimate the next session, another loan of, I think, seven of about ten millions instead of eight-though millions was asked, in order to enable the Executive to meet the amount of expenses estimated predicated on the wrong basis of beginning to count before the expenses of the army reduction five millions was granted, and in the succeeding for, as necessary for the year 1821. A loan of had taken effect, and counting in the purchase year another loan of five hundred thousand of Florida, and some other items of a nature dollars was asked. and refused. Congress were foreign to the support of government-even his dissatisfied that loans should be required in time of profound peace, to meet the common expenses estimate presents a startling point of comparison of the nation; and they refused to grant the with the same expenditure of the present day; amount asked for in the estimates, although this and calls for the revival of that spirit of economy amount would have been granted if there had which distinguished the democracy in the earlier been morey in the treasury to meet them, withperiods of the government. Some passages from and Means (and it was supported by the House) out resorting to loans. The Committee of Ways the speech of each senator (General Smith and lessened some of the items estimated for, and Mr. Benton) will present this brief, but impor- refused others. No item, except such as was tant inquiry, in its proper point of view. Gen. indispensably necessary, was granted. By the adoption of this course, the expenditures were Smith said: reduced, in 1821, to $10,723,479, and to the "I will now come, Mr. President, to my prin- sums already mentioned for the two years, 1822 cipal object. It is the assertion, that, since the and 1823, and the current expenses of 1824, year 1821, the expenses of the government had $10,330,144. The consequence was, that the nearly doubled;' and I trust I shall be able to treasury was restored to a sound state, so that show that the senator from Missouri [Mr. Ben- Congress was enabled, in the year 1825, to apton] had been under some misapprehension. The propriate the full amount of the estimate. The Senate are aware of the effect which such an asser-expenditures of 1824 amounted to $15,330,144. tion, coming from such high authority, must have upon the public mind. It certainly had its effect even upon this enlightened body. I mentioned to an honorable senator a few days since, that the average ordinary expenditure of the government for the last nine years did not exceed the sum of twelve and a half millions. But, said This large expenditure is to be attributed to the payment made to Spain in that year, of $5,000,000 for the purchase of Florida. I entertained doubts whether I ought to include this sum in the expenditures; but, on full consideration, I deemed it proper to include it. It may be said that it was an extraordinary payment, and such as could not again occur. So is the payment on account of awards under the Treaty of Ghent, in 1827 and 1828, amounting to $1,188,716. Of the same character, too, are the payments made for the purchase of lands from the Indians; for the removal of the Indians; for payments to the several States for moneys advanced during the late war; and a variety of other extraordinary charges on the treasury." The error of this statement was in the basis of the calculation, and in the inclusion of items which did not belong to the expenses proper of the government, and in beginning to count before the year of reduction—the whole of which, in a period of ten years made an excess of twentytwo millions above the ordinary expenses. I answered thus: "Mr. Benton rose in reply to the senator from Maryland. Mr. B. said that a remark of his, in a former debate, seemed to have been the occasion of the elaborate financial statements which the senator from Maryland had just gone through. Mr. B. said he had made the remark in debate; it was a general one, and not to be treated as an account stated by an accounting officer. His remark was, that the public expenditure had nearly doubled since he had been a member of the Senate. Neither the words used, nor the mode of the expression, implied the accuracy of an account; it was a remark to signify a great and inordinate increase in a comparatively short time. He had not come to the Senate this day with the least expectation of being called to justify that remark, or to hear a long arraignment of it argued; but he was ready at all times to justify, and he would quickly do it. Mr. B. said that when he made the remark, he had no statement of accounts in his eye, but he had two great and broad facts before him, which all the figures and calculations upon earth, and all the compound and comparative statements of arithmeticians, could not shake or alter, which were-first, that when he came into the Senate the machinery of this government was worked for between eight and nine millions of dollars; and, secondly, the actual payments for the last vear, in the President's message, were about fourteen millions and threequarters. The sum estimated for the future expenditures, by the Secretary of the Treasury, was thirteen and a half millions; but fifteen millions were recommended by him to be levied to meet increased expenditures. Mr. B. said these were two great facts which he had in his eye, and which he would justify. He would produce no proofs as to the second of his facts, because the President's message and the Secretary's report were so recently sent in, and so universally reprinted, that every person could recollect, or turn to their contents, and verify bis statement upon their own examination or recollection. He would verify his first statement only by proofs, and for that purpose would refer to the detailed statements of the public expenditures, compiled by Van Zandt and Watterston, and for which he had just sent to the room of the Secretary of the Senate. Mr. B. would take the years 1822-13; for he was not simple enough to take the years before the reduction of the army, when he was looking for the lowest expenditure. Four thousand men were disbanded, and had remained disbanded ever since; they were disbanded since he came into the Senate; he would therefore date from that reduction. This would bring him to the years 1822-23, when you, sir (the Vice-President), was Secretary of War. What was the of those years? It stood thus: whole expenditure of the government for each The "Now, deduct these pensions from the years to which they refer, and you will have just about $8,000,000 as the expense of working the machinery of government at the period which I had in my eye. But the pensions have not yet totally ceased; they are much diminished since 1822, 1823, and in a few years must cease. revolutionary pensioners must now average seventy years of age; their stipends will soon cease. I hold myself well justified, then, in saying, as I did, that the expenditures of the government have nearly doubled in my time. The remark had no reference to administrations. There was nothing comparative in it; nothing intended to put up, or put down, any body. The burdens of the people is the only thing I wish to put down. My service in the Senate has extended under three administrations, and my periods of calculation extend to all three. My opinion now is, that the machinery of this government, after the payment of the public debt, should be worked for ten millions or le, and two millions more for extraordinaries; twelve millions; but this is a point for future discussion. My present object is to show a great all |