institutions, enjoying, in different degrees, the confidence of the public, shaken as to them all, under no direct control of the General Government, and subject to no actual responsibility to the State authorities. These institutions were emitting the actual currency of the United States-a currency consisting of a paper, on which they neither paid interest nor principal, whilst it was exchanged for the paper of the community, on which both were paid. He saw these institutions, in fact, exercising, what had been considered at all times, and in all countries, one of the highest attributes of sovereignty-the regulation of the current medium of the country. They were no longer competent to assist the treasury, in either of the great operations of collection, deposite, or distribution of the public revenues. In fact, the paper which they emitted, and which the treasury, from the force of events, found itself constrained to receive, was constantly obstructing the operations of that department; for it would accumulate where it was not wanted, and could not be used where it was wanted for the purposes of Government, without a ruinous and arbitrary brokerage. Every man who paid or received from the Government, paid or received as much less than he ought to have done, as was the difference between the medium in which the payment was effected and specie. Taxes were no longer uniform. In New England, where specie payments have not been suspended, the people were called upon to pay larger contributions than where they were suspended. In Kentucky, as much more was paid by the people in their taxes, than was paid, for example, in the State of Ohio, as Kentucky paper was worth more than Ohio paper.

It appeared to Mr. C. that, in this condition of things, the General Government could depend no longer upon these local institutions, multiplied and multiplying daily; coming into existence by the breath of eighteen State sovereignties, some of which, by a single act of volition, had created twenty or thirty at a time. Even if the resumption of specie payments could have been anticipated, the General Government remaining passive, it did not seem to him that the General Government ought longer to depend upon these local institutions exclusively for aid in its operations; but he did not believe it could be justly so anticipated. It was not the interest of all of them, that the renewal should take place of specie payments; and yet, without concert between all, or most of them, it could not be effected. With regard to those disposed to return to a regular state of things, great difficulties might arise as to the time of its commencement.

Considering, then, that the state of the currency was such, that no thinking man could contemplate it without the most serious alarm; that it threatened general distress, if it did not ultimately lead to convulsion and subversion of the Government, it appeared to him to be the duty of Congress to apply a remedy, if a remedy could be devised. A National Bank, with other auxiliary measures, was proposed as that remedy. Mr. C. said he determined to examine the question, with as little prejudice as possible arising from his former opinion; he knew that the safest course to him, if he pursued a cold calculating prudence, was to adhere to that opinion, right or wrong. He was perfectly aware, that, if he changed, or seemed to change it, he should expose himself to some censure; but, looking at the subject, with the light shed upon it by events happening since the commencement of the war, he could no longer doubt. A bank appeared to him not only necessary, but indispensably necessary, in connexion with another measure, to remedy the evils of which all were but too sensible. He preferred to the suggestions of the pride of consistency, the evident interests of the community, and determined to throw himself upon their candor and justice. That which appeared to him, in 1811, under the state of things then existing, not to be necessary to the General Government, seemed now to be necessary, under the present state of things. Had he then foreseen what now exists, and no objection had laid against the renewal of the charter, other than that derived from the constitution, he should have voted for the renewal.

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all its powers to restore to a sound state the money of the country. That instrument confers upon Congress the power to coin money, and to regulate the value of foreign coins; and the States are prohibited to coin money, to emit bills of credit, or to make any thing but gold and silver coin a tender in payment of debts. The plain inference is, that the subject of the general currency was intended to be submitted exclusively to the General Government. In point of fact, however, the regulation of the general currency is in the hands of the State Governments, or, which is the same thing, of the banks created by them. Their paper has every quality of money, except that of being made a tender, and even this is imparted to it by some States, in the law, by which a creditor must receive it, or submit to a ruinous suspension of the payment of his debt. It was incumbent upon Congress to recover the control which it had lost, over the general currency; the remedy called for, was one of caution and moderation, but of firmness. Whether a remedy directly acting upon the banks, and their paper thrown into circulation, was in the power of the General Government, or not, neither Congress, nor the community, were prepared for the application of such a remedy; an indirect remedy, of a milder character, seemed to be furnished by a National Bank. Going into operation with the powerful aid of the treasury of the United States, he believed it would be highly instrumental in the renewal of specie payments. Coupled with the other measure adopted by Congress, for that object, he believed the remedy effectual. The local banks must follow the example which the National Bank would set them, of redeeming their notes by the payment of specie, or their notes will be discredited and put down.

If the constitution then warranted the establishment of a bank, other considerations besides those already mentioned strongly urged it. The want of a general medium is every where felt; exchange varies continually, not only between different parts of the Union, but between different parts of the same city. If the paper of a National Bank were not redeemed in specie, it would be much better than the current paper; since, although its value, in comparison with specie, might fluctuate, it would afford an uniform standard.

If political power be incidental to banking corporations, there ought, perhaps, to be in the General Government some counterpoise to that which is exerted by the States. Such a counterpoise might not indeed be so necessary, if the States exercised the power to incorporate banks equally, or in proportion to their respective populations. But that is not the case. A single State has a banking capital equivalent, or nearly so, to one-fifth of the whole banking capital of the United States. Four States combined have the major part of the banking capital of the United States. In the event of any convulsion, in which the distribution of banking institutions might be important, it may be urged that the mischief would not be alleviated by the creation of a National Bank, since its location must be within one of the States. But, in this respect, the location of the bank is extremely favorable, being in one of the middle States, not likely, from its position, as well as its loyalty, to concur in any scheme for subverting the Government; and a sufficient security against such contingency is to be found in the distribution of branches in different States, acting and reacting upon the parent institution, and upon each other.

A desultory debate followed, between Mr. JACKSON, Mr. CLAY, and Mr. RANDOLPH, on one or two points of Mr. CLAY's arguments.

After which, the committee rose, and reported the bill and amendments. MARCH 11, 1816.

The House resumed the consideration of the bill.

The House successively concurred in the amendments of the committee of the whole, without objection, until it reached that which substituted the sum of fifteen dollars, as the second cash instalment to the bank, instead of five.

Mr. CALHOUN repeated the objections that he made in the committee, to this amendment, and moved that the House disagree thereto, with the view hereafter of making the sum ten dollars.

After a few remarks from Mr. SMITH, of Maryland, in justification of the ainendment,

It was disagreed to by the House.

The House then proceeded to that amendment of the committee which restrained the Government from appointing more than three of its directors from any one State.

This amendment was objected to, in a few words, by Mr. TELFAIR, and opposed, also, by Mr. ROBERTSON, at some length, who wished the clause restored to its original state.

After a few remarks from Mr. SMITH, of Maryland, in favor of the amendment, it was concurred in.

The next amendment considered, was that which added the word "native" to a clause of the bill, and thereby excluded from the direction naturalized citizens.

Mr. CALHOUN opposed the adoption of this amendment, on the ground formerly stated; and Mr. RANDOLPH again advocated it, in a short speech; when The decision of the committee was reversed, and the word “nalive” reject ed; ayes 44, noes 67.

On motion of Mr. WEBSTER, the bill was then so amended, after a short discussion, in which Mr. SMITH, of Maryland, opposed the motion, as to make it equally compulsory and penal on the bank to pay its deposites in specie, as its notes or bills.

When the House arrived at the amendment providing sanctions for compelling the bank to perform its engagements,

Mr. WRIGHT made a motion substantially to strike out the clause which makes the charter forfeitable, in case of the non-payment of specie, and thereby leave only the penalty of paying ten per cent. on their notes, if not so paid.

MARCH 12, 1816.

The House proceeded to the order of the day, being the report of the committee of the whole House on the bill; the motion to strike out that part of an amendment reported by the committee which makes the charter forfeitable for non-payment of its notes in specie, being still under consideration.

Mr. CALHOUN Supported the motion to amend the amendment. It was with much reluctance, Mr. C. said, that he opposed any provision which the House had deemed necessary to perfect the bill, but, in the present instance, he was compelled to make an objection. The fundamental character of this bank was, that it should pay its notes in gold or silver coin; and a sufficient penalty was provided to effect that end. It is a good rule in law, said Mr. C., that, where you attach a separate penalty to a particular violation of a law, you weaken the general penalty; and, as he thought the general penalty would attach in the case, without this special provision, which would, therefore, weaken the general sanctions of the bill, he hoped it would be stricken out. [The amendment under consideration, proposed by the committee of the whole, was this: to add to the 18th section," And, in case of failure of the said corporation to pay and discharge the notes thereof, in gold or silver coin, on demand, then, and in that case, the charter hereby granted shall be void; and, moreover, the holder of every such note, the payment whereof, in gold or silver, shall have been refused, may recover of the said corporation the amount thereof, together with interest, at the rate of ten per centum per annum, from the time at which the same shall have been demanded until payment. Mr. WRIGHT'S motion was to strike out the words in italic; and it was agreed to, without a division.]

Mr. RANDOLPH then moved to amend the amendment of the committee, by making the interest demandable on the notes of the bank, in case of refusal to pay specie, twenty per cent. instead of ten.