Register of Debates in Congress, Comprising the Leading Debates and Incidents of the First Session of the Twenty-Fifth Congress Page: 1,301
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1301
OF DEBATES IN CONGRESS.
1302
Oct. 6, 1837.]
Treasury Notes.
[H. o* R.
in its original form as it came from the Committee of the
Whole ; for he considered the amendment would be de-
structive to the business of the Treasury, which was in im-
mediate want of the means for carrying on the Govern-
ment, and which it could not procure under the operation
tion of the amendment.
Mr. CUSIIING addressed the House at length in op-
position to the bill; and after a few words from Mr. BELL
and Mr. McKIM, the hour having arrived, the House took
its usual recess till 4 o'clock.
Evening Session.
The House resumed the consideration of the bill report-
ed from the Committee of the Whole on the state of the
Union, "to authorize the issuing of Treasury notes."
The question being on the following amendment, mov-
ed on Thursday by Mr. Ukberivooi, viz:
"That the Secretary of the Treasury be authorized to
sell and transfer to the purchaser or purchasers the bonds
or evidences of debt executed by the president, directors,
and company of the Bank of the United Slates of Penn-
sylvania, for and in consideration of the stock held by the
United States in the late Bank of the United States, and
to apply Ihe money arising from such sale and transfer in
payment of any demands upon the Treasury: Provided,
however, That no sale and transfer of said bonds or evi-
dences of debt shall be made for a less sum than the nomi-
nal amount of said bonds or evidences of debt, exclusive
of interest."
Mr. CAMBRELENG stated that upon this amendment
depended the fate of this bill; because, if it should be
adopted, the Treasury of the United States would be in
the power of the Bank of the United States. He should
therefore ask for a full attendance of the House, and should
move for a call, [the House was still thin,] unless some
gentleman wished to address the House.
Mr. HOPKINS, for one, was inclined to vote for the
amendment. He could not see how its adoption would place
the Government in the power of the United States Bank.
The object in selling them was to command an amount of
gold and silver to meet the wants of the Treasury ; and
admitting the bank would become the purchaser, so much
specie would bo drawn from its vaults, and he did not see
how Government could be injured by having a debt thus
paid in advance.
Mr. CAMBRELENG wished to stale that ho had not said
the United Stales Bank would lie the direct purchaser, but
that the bonds would be bought up by the agents of the bank.
Mr. HOPKINS then addressed the Chair as follows :
Mr. Speaker: I have not risen, sir, to take part in this
already protracted debate, but to reply very briefly to the
extraordinary declaration this moment uttered by the chair-
man of the Committee of Ways and Means, [Mr. Cam-
hiieleno.] He said, sir, "that upon this amendment
depended the fate of the bill; because, if it should he adopt-
ed, the Treasury of the United States would be in the
power of the Bank of the United States." For one, sir,
I was favorably inclined to the amendment offered by the
gentleman from Kentucky, [Mr. Underwood ;] but if the
chairman of the Committee of Ways and Means can con-
vince me of the truth of his remark, I will most cheerfully
relinquish my determination to support the amendment.
But, Mr. Speaker, I must beg leave to say that such can-
not in my judgment be (he operation of the amendment
under consideration. Nor do I believe that any unpreju-
diced mind in this Hall can come to such a conclusion.
What does the bill propose, sir 7 To authorize the Secre-
tary of the Treasury to issue Treasury notes to the amount
of ten millions of dollars, for the redemption of which the
faith of the United States is solemnly pledged. And why
is this measure proposed, but to supply the Treasury with
the means of meeting the various demands upon it 1 Well,
sir, what does the amendment which has thus been de-
nounced propose 1 Nothing more than to authorize.the
Secretary of the Treasury to negotiate a sale of the bonds
held by the Government upon the Pennsylvania Bank of
the United States, provided they can be sold for the nomi-
nal amount of them, and apply the funds thus obtained to
the uses of the Treasury. If, then, this object, the first
contemplated by the amendment, can thus be attained by
the use of means belonging to the Government, why, I
ask, sir, shall we not adopt it 1 Why hold up these bonds,
if we can convert them without loss into available funds 1
Sir, it will be difficult to furnish any one good reason
against the adoption of the amendment, if in other respects
it be free from the objections urged against it, and which
I will now briefly notice. It is contended, sir, that the
amounts of the bonds in question are so large as to exclude
from competition individual or private capitalists; and
hence they will be purchased in Chestnut or Wall street by
the agents of the bank. I am willing, for the sake of ar-
gument, to admit that such may be the case, but still I
deny the truth of the declaration that the Government will
thereby be placed under the control of the "defunct mon-
ster," which so constantly haunts the imagination of the
chairman of the Committee of Ways and Means. Nor
can the Government lose a dollar by thus throwing into
the market a fund unsuited to the investment of private
capital, and which it cannot divide to suit the means and
capacities of purchasers, because the same amendment con-
tains another provision which puts this argument to rest,
by expressly prohibiting the Secretary from selling the
bonds for any thing loss than the nominal amount of them.
Let us, then, suppose that the bonds are purchased by the
agents of the banks upon the terms proposed in the amend-
ment, and what is the necessary and inevitable result ?
Why, sir, according to my understanding, so far from
placing the Government under the control of the bank, we
should realize in advance ihe payment of a debt due in
one, two, and three years, and that, too, in the gold and
silver of the frightful monster itself.
Mr. Speaker, I have always entertained great respect
for the opinions of the chairman of the Committee of Ways
and Means, [Mr. Oambiielexc;,] but upon this subject I
must be permitted to think that he is under a strange and
most palpable delusion. Sir, can it be that I mistake the
true operation of this amendment? Can it be that the
withdrawal of six millions and a half of specie from the
vaults of the bank, and transferring it to the Treasury,
will increase the dependence of Ihe latter, or the power of
the former? No, sir, the proposition is absurd in the ex-
treme, and I cannot and will not assent to it.
But another objection has been made to the amendment,
to which, whilst I am up, I will reply. It is apprehended
that these bonds, with the endorsement of the Government,
might find their way to Europe, arid thus increase the for-
eign balance against us. I am willing, again, for the sake
of the argument, to admit the truth of this objection ; but
I beg those who give to it any consideration, to bear in
mind that, under the amendment., we must receive for the
bonds their nominal amount in available funds, and wheth-
er we receivc it from our own capitalists or those abroad,
we shall be upon safo ground, so long as we receive in re-
turn the same amount in gold and silver. But gentlemen
forget to remember that this objection applies with equal
force to the bill, without the amendment, because your
Treasury notes, issued by the authority and upon (he faith
of this Government, will be just as likely to cross the great
waters, and increase the foreign balance against us, as the
bonds which we propose to sell, with this difference in fa-
vor of the amendment, that the bill without it may in-
crease that balance against the Government, whilst the
amendment would only increase the balance against the
" the monster."
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Gales, Joseph, 1761-1841. Register of Debates in Congress, Comprising the Leading Debates and Incidents of the First Session of the Twenty-Fifth Congress, book, 1837; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc30751/m1/71/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.